McDermott lands EPCI contract in Saudi Arabia

Saudi Aramco has awarded McDermott International Inc. subsidiary J. Ray McDermott S.A. a contract to provide engineering, procurement, construction, and installation for the Offshore Maintain Potential Program in Saudi Arabia.

Offshore staff

HOUSTON-- Saudi Aramco has awarded McDermott International Inc. subsidiary J. Ray McDermott S.A. a contract to provide engineering, procurement, construction, and installation for the Offshore Maintain Potential Program in Saudi Arabia. The project is known in the industry as the "Long Term Agreement" (LTA).

"We have worked in Saudi Arabia and the Middle East for more than 45 years, and this is the largest project we've ever undertaken for Saudi Aramco," says Bob Deason, CEO of J. Ray. "Saudi Arabia has significant plans to increase oil production to meet the world's rapidly growing energy demand, and our contribution in developing the facilities under the LTA will play a vital role in helping Saudi Aramco meet that commitment."

The LTA project consists of several packages that will be awarded over the coming years. The first package consists of 13 jackets, 11 decks, and one tie-in platform. In this package, J. Ray will procure and construct over 17,500 metric tons (19,290.5 tons) of structures at its Jebel Ali facility. The structures will be installed in water depths ranging from 14 m to 55 m (46-180.5 ft). In addition, the company will install 12 pipelines totaling 70 km (43.5 mi) in length and six subsea cables totaling 53 km (33 mi).

All of the work will be performed by J. Ray's marine vessels in the Zuluf, Safaniya, Marjan, and Karan fields, offshore Saudi Arabia. The work contracted for the first package is scheduled for completion by 2009.

Subsequent packages under the LTA will be confirmed over the coming years on an annual basis as Saudi Aramco finalizes its development plans and budget allocations.

8/7/2007

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