Pemex awards pipeline LOI to Global Industries

Pemex Exploration & Production has issued a letter of intent to Global Offshore Mexico S. de R.L. de C.V., a subsidiary of Global Industries, Ltd., to install approximately 53-km (32 mi) of 36-in. diameter pipeline in the Bay of Campeche's Cantarell field from Pol-A to Ixtal and then to PR-1.

Pemex Exploration & Production has issued a letter of intent to Global Offshore Mexico S. de R.L. de C.V., a subsidiary of Global Industries, Ltd., to install approximately 53-km (32 mi) of 36-in. diameter pipeline in the Bay of Campeche's Cantarell field from Pol-A to Ixtal and then to PR-1. The approximate value of this contract is $100 million and the oil pipeline will be installed using the Hercules' automatic welding system.

"Global has been committed to establishing its credibility with Pemex since entering the Mexico market in 1997," said William J. Doré, Global chairman and CEO. "It is gratifying to our operation and its regional staff to once again receive a vote of confidence from the PEMEX organization. The award of the 36-inch pipeline assures us continued work in the area, as it follows the project previously awarded and currently underway."

Pemex has contracted Global Industries to install 29 km of 24-in. pipeline from Enlace to Uech A in the Gulf of Mexico's Bay of Campeche. Specifically, the project calls for the installation of the 29-km, 24-in. pipeline, three risers, three expansion loops, and the subsea tie-in. Global will also perform trenching, five crossings, as well as hydro-testing of the pipeline and topside work. TheTitan 2, Shawnee, Ingeniero I, and Ingeniero II will execute the project. Global will then install a 12.5-km, 8-in. pipeline later this spring. These two projects represent just 7% of the 600 km of pipelines Pemex has scheduled for bid or construction in 2004 and 2005.

(02/23/04)

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