McDermott International

McDermott International
Name	McDermott International
Type	Public
Industry	Energy, Engineering
Founded	1923
Founder	Ralph Thomas McDermott
Headquarters	Houston, Texas
Area served	Global
Key people	David Dickson, Gil Carvalho
Products	Offshore platforms, Onshore plants

McDermott International is a multinational engineering, procurement, construction and installation company focused on the oil and gas, petrochemical, and energy transition sectors. Founded in the early 20th century, it grew into a global contractor with heavy fabrication yards, offshore installation capability and integrated project delivery, competing with major contractors across the Americas, Europe, Africa and Asia. McDermott has been involved in a number of landmark projects and controversial restructurings that drew attention from financial markets, regulatory bodies and industry peers.

History

McDermott traces its roots to the founding by Ralph Thomas McDermott and the growth through projects connecting to the development of the Texas oil boom, the expansion of Gulf of Mexico production, and the rise of multinational contractors such as Bechtel, Fluor Corporation, TechnipFMC, Saipem, and Hyundai Heavy Industries. Key milestones include diversification into offshore fabrication linked to projects like the North Sea oil developments and engagement with national oil companies including Petrobras, Saudi Aramco, QatarEnergy, and PetroChina. The company’s trajectory intersected with corporate actions involving competitors and partners such as Halliburton, KBR (company), Jacobs Engineering Group, and Worley. In the 21st century, McDermott pursued acquisitions and joint ventures that mirrored consolidation trends seen in transactions involving Baker Hughes, CHC Helicopter, and ExxonMobil. Periods of expansion were followed by financial strain that led to restructurings reminiscent of cases involving General Motors and Toys "R" Us creditors, while governance episodes prompted scrutiny comparable to inquiries into Royal Dutch Shell and BP board oversight.

Operations and Services

McDermott provides integrated services spanning engineering, procurement, construction and installation (EPCI), fabrication, subsea systems, and offshore hook-up and commissioning. Its operations have leveraged fabrication facilities comparable to those operated by Samsung Heavy Industries, Daewoo Shipbuilding & Marine Engineering, and COSCO Shipping Heavy Industry, supporting offshore platforms, floating production storage and offloading units similar to projects for Shell plc, TotalEnergies, and ENI. The company’s subsea and umbilicals work parallels equipment supplied to fields developed by Equinor, ConocoPhillips, and BP. Logistics and marine construction capabilities placed it alongside operators such as Technip Energies, Allseas Group, and Subsea 7. McDermott also worked on onshore petrochemical and LNG plants with clients including Cheniere Energy, Sasol, Petronas, and Chevron Corporation.

Major Projects and Contracts

Notable contracts and projects span continents and include offshore platform fabrication and installation, subsea tiebacks, FPSO hook-ups, onshore refinery and petrochemical complexes, and LNG facilities. Major engagements involved consortiums and partners like Saipem, TechnipFMC, McDermott’s joint ventures with Chicago Bridge & Iron (note: historical), Aker Solutions, and JGC Corporation. High-profile projects included participation in developments comparable to Ichthys LNG, Golden Pass LNG, Prelude FLNG, Gorgon Gas Project, and large-scale refinery projects reminiscent of Ras Tanura Refinery expansions. Contracts with national oil companies such as PTT Public Company Limited, Statoil ASA (now Equinor), and National Iranian Oil Company-related ventures shaped backlog and regional strategy.

Corporate Structure and Governance

The company’s corporate structure has featured a public listing, a board of directors, executive leadership and global business units aligned by region and service line, with governance practices interacting with regulators and exchanges similar to New York Stock Exchange and Nasdaq reporting regimes. Leadership transitions and CEO appointments paralleled moves seen at Chevron Corporation and ExxonMobil in response to market conditions. Institutional investors, creditor committees and private equity firms played roles in oversight comparable to cases involving Apollo Global Management, KKR, and Carlyle Group in other industrial restructurings. The company engaged auditors, law firms and advisors akin to the involvement of Deloitte, Ernst & Young, Skadden, Arps, Slate, Meagher & Flom, and Latham & Watkins in complex corporate matters.

Financial Performance and Restructuring

McDermott experienced cyclical revenue aligned with oil price swings that track indices such as Brent crude and West Texas Intermediate, and its balance sheet moves have been studied alongside restructurings of firms like Pacific Drilling and Seadrill. The company underwent bankruptcy restructuring processes involving court-supervised reorganization similar to high-profile insolvencies such as Hertz Global Holdings and PG&E Corporation (contextual similarities), which entailed creditor negotiations, debtor-in-possession financing and asset divestitures. Capital markets interactions included bondholders, secured lenders and trade creditors similar to those in restructurings of Tullow Oil and Noble Corporation. Post-restructuring the firm sought to rebuild backlog and liquidity while addressing legacy contract liabilities and pension considerations akin to those confronted by United States Steel Corporation and Alcoa.

Safety, Environmental, and Legal Issues

Safety performance, environmental compliance and legal disputes have been material to McDermott’s operations, drawing comparisons to incidents and litigations involving BP Deepwater Horizon oil spill-era compliance scrutiny, Chevron Texaco environmental cases, and contractor disputes seen with KBR in relation to contract performance. Regulatory interactions included oversight from agencies and bodies similar to U.S. Department of Labor, Occupational Safety and Health Administration, U.S. Securities and Exchange Commission, and international regulators in jurisdictions where projects occurred. The company faced litigation, arbitration and claims with insurers, clients and subcontractors similar to precedent matters handled by firms in cases before International Chamber of Commerce tribunals and London Court of International Arbitration. Environmental management and sustainability reporting paralleled initiatives undertaken by major energy contractors and integrated oil majors such as TOTALEnergies, BP plc, and Shell plc as stakeholders scrutinized greenhouse gas emissions and decommissioning liabilities.

Category:Engineering companies of the United States Category:Oilfield services companies