McDermott International: A Century of Energy Engineering and Construction
From its humble beginnings in the Texas oil fields to its current status as a global powerhouse, McDermott International has spent over a century shaping the energy landscape. Specializing in integrated engineering, procurement, fabrication, construction, and installation (EPCI), the company provides critical infrastructure for the energy industry across more than 30 countries.
Headquartered in the Energy Corridor of Houston, Texas, and incorporated in Bermuda, McDermott operates as a private entity focused on complex onshore, offshore, and subsea projects. With a workforce of approximately 30,000 to 40,000 employees, the company bridges the gap between traditional fossil fuel extraction and the emerging low-carbon economy.
Key Facts
- Founded: 1923 by Ralph Thomas McDermott.
- Headquarters: Houston, Texas, USA.
- Global Reach: Operations in over 30 countries.
- Workforce: Approximately 30,000+ employees.
- Core Focus: Low Carbon Solutions, Offshore Middle East, and Subsea and Floating Facilities.
- Marine Assets: A specialized fleet of eight marine construction vessels.
A Legacy of Innovation: From Wooden Rigs to Steel Platforms
The company's journey began in 1923 when 24-year-old Ralph Thomas McDermott secured a contract to build 50 wooden drilling rigs in Luling, Texas. He partnered with his father, John Raymond McDermott, whose experience in lumber and oilfield construction gave the company its namesake: J. Ray McDermott & Company Incorporated.
Throughout the 1930s, the company expanded rapidly, moving its headquarters from Eastland to Luling and eventually to Houston to follow the oil boom. By 1938, the firm pioneered the use of floating drilling equipment in the marshlands of Texas and Louisiana, marking a significant shift toward offshore capabilities.
Post-War Expansion and Specialization
Following a reorganization in 1946, the company achieved a major milestone in 1947 by designing and installing the first fixed steel platform out-of-sight-of-land in the Gulf of Mexico for Superior Oil. This era also saw the birth of specialized offshore equipment, including the 1949 launch of the Derrick Barge 4, the first vessel designed specifically for offshore work.
Evolution into McDermott International
The modern era of the company began with a strategic shift in 2010. Shareholders agreed to spin off Babcock & Wilcox, a U.S. government contracting services firm, allowing the oil and gas division to rebrand as McDermott International.
In 2018, McDermott combined with CB&I to create a vertically integrated onshore-offshore entity. While this merger expanded their capabilities, it also brought challenges. The company faced difficulties with LNG (Liquefied Natural Gas) projects in Louisiana and Texas, leading to a period of financial instability.
Restructuring and Recovery
On January 21, 2020, McDermott filed for Chapter 11 bankruptcy in the Southern District of Texas. This prepackaged restructuring involved the parent company and 247 affiliates. By June 2020, the company emerged from bankruptcy with a streamlined strategy and a new organizational structure.
Fueling the Energy Transition
Today, McDermott is pivoting its technical expertise toward the Energy Transition—the global shift from fossil fuels to renewable energy sources. The company has reorganized into three primary business lines: Low Carbon Solutions, Offshore Middle East, and Subsea and Floating Facilities.
Recent achievements in sustainable infrastructure include:
- Hydrogen Hubs: Collaborating on a hydrogen-led energy hub in Bacton, Norfolk, UK, aiming for sustainable hydrogen supply and carbon capture, utilization, and storage (CCUS) by 2030.
- Renewable Grid Connection: Providing EPC services for Tennet’s BorWin6 980MW high-voltage direct current (HVDC) offshore grid project.
- Green Technology: Developing a power-to-gas facility in New Jersey and modularized production units for ultra-low sulfur gasoline in Australia via Viva Energy Australia.
- Advanced Marine Tech: The 2022 christening of the upgraded Amazon vessel, which features high automation and a 10,000 metric ton pipe hold capacity for deepwater developments.
Company Overview and Assets
McDermott continues to maintain long-term relationships with international energy majors and national oil companies, leveraging a sophisticated fleet of marine vessels to execute complex subsea installations.
| Category | Details |
|---|---|
| Industry | Energy Engineering and Construction |
| Key Leadership | Michael McKelvy (President & CEO) |
| Primary Services | EPCI (Engineering, Procurement, Fabrication, Construction, Installation) |
| Key Markets | Americas, Middle East, Asia-Pacific, Europe, Africa |
| Specializations | LNG, HVDC, Hydrogen, Carbon Capture, Subsea Infrastructure |
The Marine Fleet
As of 2025, McDermott's operational capabilities are supported by eight primary marine vessels:
- Amazon
- Derrick Barge 30
- Derrick Barge 32
- Derrick Barge 50
- Derrick Lay Vessel 2000
- Intermac 650
- Lay Vessel 108
- North Ocean 102
Frequently Asked Questions
Who founded McDermott International?
The company was founded in 1923 by Ralph Thomas McDermott, who partnered with his father, John Raymond McDermott, to build wooden drilling rigs in Texas.
What is the company's current focus regarding the energy transition?
McDermott is focusing on low-carbon solutions, including hydrogen production, carbon capture and underground storage (CCUS), and high-voltage direct current (HVDC) offshore grid connections.
Did McDermott undergo any financial restructuring?
Yes, the company filed for Chapter 11 bankruptcy on January 21, 2020, and successfully emerged from the process in June 2020 with a new strategy and structure.
What are the three main business lines of the company?
The company's expertise is currently divided into Low Carbon Solutions, Offshore Middle East, and Subsea and Floating Facilities.
What is the significance of the Amazon vessel?
The Amazon is an ultra-deepwater vessel upgraded in 2022 with high automation and a 10,000 metric ton pipe hold capacity, allowing for safer and more efficient subsea pipelay operations.