McDermott awarded FEED contract Grassroots Refinery

Source: press release, 6 December 2018

The new Davis Refinery will leverage the prolific crude oil feedstocks generated from the recent Bakken shale revolution
The new Davis Refinery will leverage the prolific crude oil feedstocks generated from the recent Bakken shale revolution (illustration: Davis Refinery)

McDermott International, Inc. has announced a sizeable contract award for front-end engineering design (FEED) services of the Davis Refinery Project in Billings County, North Dakota, a grassroots refinery that is being developed by Meridian Energy Group Inc. McDermott defines a sizeable contract between USD 1 million and 50 million.

The new Davis Refinery will leverage the prolific crude oil feedstocks generated from the recent Bakken shale revolution – specifically from the Williston Basin in North Dakota. Touted as one of the most environmentally-friendly refineries in the U.S., the new refinery will utilize modern technology and improve operational efficiency while maintaining strict environmental stewardship.

“This partnership with Meridian is a key and strategic opportunity to design one of the most advanced and environmentally-compliant refineries in the world,” says Richard Heo, Senior Vice President for North, Central and South America. “Early engagement during the FEED phase is a strategy that is proving beneficial to McDermott customers. McDermott intends to develop the FEED within the context of an expected modular execution and construction approach for this project. We are excited to be part of this ground-floor opportunity on the Davis Refinery Project and look forward to the opportunity to partner with Meridian from FEED to EPC.”

Capacity of the new refinery is expected to be 49,500 barrels per day and will include the production of ultra-low sulfur diesel and premium gasoline. After conclusion of the FEED study, both parties will endeavor to enter into an EPC agreement to build the refinery.

The contract award will be reflected in McDermott’s fourth quarter 2018 backlog.