McDermott awarded next phase of Azikel Refinery project

McDermott International Ltd. announced it has been awarded a *large engineering and procurement contract from Azikel Petroleum Ltd. for the modular 12,000 bpd Hydro-Skimming Refinery project. The facility will be located in Yenagoa, Bayelsa State within the Federal Republic of Nigeria.

The scope of the award includes the detailed engineering and design of the inside battery limits (ISBL) modular refinery. It also includes supply of equipment and all tagged items within the ISBL.

McDermott has been working with Azikel Petroleum Ltd. since 2018, most recently on an extended Front-End Engineering Design (FEED). This next phase of the award will utilize McDermott's extensive modularization experience and expertise. The design capitalizes on McDermott's world-class refining process engineering abilities.

"McDermott has been an integral part of what is one of the few refineries to be built in Nigeria and we look forward to expanding our presence further by delivering the next phase of this important project," said Tareq Kawash, Senior Vice President, Europe, Middle East, Africa. "Our decades of modularization experience makes us uniquely positioned to deliver this scope and the team has done a great job of developing a simple process design that meets all of Azikel's product specification requirements."

The engineering and design are scheduled to be executed from McDermott's office in Tyler, Texas with support from its Mexico City office. Equipment will be sourced from both US domestic and international suppliers. Azikel is building this grassroots facility and has already done extensive work to prepare the site for construction. The early work includes site reclamation and backfilling, completion of roads, perimeter wall, drainage and security gates. Early work also includes construction of the administrative, maintenance and terminal operator buildings as well as the erection of the feedstock tanks. Construction is also underway for a 656-foot (200 meter) pier with shoreline protection. The pier will be used for the delivery of the refinery modules and other equipment.

The President of Azikel Group, Dr. Eruani Azibapu Godbless, stated that the award was based on the high level of confidence and professionalism exhibited by McDermott and he expects the project will be delivered on schedule and within budget. He further stated that the Azikel Refinery is a flagship for Nigeria as it is the first hydroskimming refinery to advance to this level of achievement in the modular refinery regime.

Azikel Petroleum Limited is a subsidiary of the Azikel Group and the progenitor of the Azikel Refinery Project.

The contract award will be reflected in McDermott's second quarter 2020 backlog.

* - McDermott defines a large contract as between USD $50 million and $250 million.

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