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27-01-2020

McDermott to proceed with FEED phase of residue oil conversion project at Preem refinery

McDermott International, Inc. today announced it has been granted approval from Beowulf Energy LLC and Preem AB to commence the front-end engineering design (FEED) phase for its Residue Oil Conversion Complex (ROCC) project. The project will be implemented at the Preem refinery in Lysekil, Sweden.

The FEED phase follows the sizeable technology license agreement between Chevron Lummus Global (CLG), McDermott's joint venture with Chevron, and Beowulf Energy in 2017 related to CLG's LC-SLURRY Unit and the subsequent pre-FEED work executed by McDermott. The award marked the first LC-SLURRY technology license since adding the maximum residue conversion technology to the CLG portfolio.

McDermott previously worked at the Preem refinery as the FEED and Engineering, Procurement, Construction management (EPCm) contractor for the hydrocracker project, which was also based on CLG technology, between 2003 and 2006.

"Building on the CLG license for its state of the art LC-SLURRY technology, McDermott is proud to continue supporting Beowulf Energy and working at the Preem refinery with the development of the FEED phase for the ROCC project,'' said Tareq Kawash, McDermott's Senior Vice President for Europe, Africa, Russia and Caspian. ''The award of this next phase is a testament to McDermott's unique ability to leverage its pull through capabilities to deliver execution certainty to our customers."

The FEED will be executed from McDermott's downstream Centers of Excellence in The Hague, The Netherlands and Brno, Czech Republic.

Work on the project will begin immediately and is expected to be completed in the fourth quarter of 2020.

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