Offshore Saudi Arabia awards J. Ray McDermott contracts

Al-Khafji Joint Operations has awarded two contracts to McDermott International to provide engineering, procurement, construction, and installation services for KJO developments in the Arabian Gulf.

Offshore staff

(Middle East) - Al-Khafji Joint Operations (KJO) has awarded two contracts to McDermott International Inc. to provide engineering, procurement, construction, and installation services for KJO developments in the Arabian Gulf.

The first contract is for an integrated wellhead jacket (IWJ) in the Al-Khafji oil field offshore Saudi Arabia.

For the second contract, J. Ray will support the expansion of KJO's loading facilities in the offshore Neutral Zone between Saudi Arabia and Kuwait.

Combined, projects of this type are typically valued at over $50 million.

Bob Deason, J. Ray McDermott SA's president and COO, says, "This will be the fourth wellhead jacket that J. Ray has recently undertaken for KJO."

"In October 2004, J. Ray successfully completed the fabrication and installation facilities of two integrated wellhead jackets ahead of schedule."

The new IWJ wellhead platform, weighing approximately 1,100 tons, will be fabricated at J. Ray's Jebel Ali yard under a fully integrated project management team.

Under the terms of the loading facilities expansion contract, J. Ray will undertake detailed design, procurement, and construction of an 8 km 36-in. dia pipeline and a 5.5 km 13.8 kV submarine cable.

The project also involves the replacement of a 48-in. manifold to accommodate the new 36-in. topside piping, including new 36-in.and 48-in. motorized operated valves.

The expansion project will also include design and installation of an offshore loading control system.

KJO is a joint venture between Aramco Gulf Operations Co. Ltd. and Kuwait Gulf Oil Co.

2/13/06

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