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  J. Ray McDermott signs contract in Qatar

Posted: 28 April 2003

DUBAI, UAE — J. Ray McDermott, a subsidiary of McDermott International, Inc, announced it has signed a new contract with ExxonMobil Middle East Gas Marketing Ltd, to supply a wellhead platform and pipeline, for the Al Khaleej Gas Project formerly known as the Enhanced Gas Utilization (EGU) Project in Qatar’s North Field.

Work of this type is typically valued at over $150 million.

This contract is one of the options that have been exercised under the original RasGas (II) Expansion Project contract, awarded to J. Ray in April 2001, and entails the fabrication of a 2,100-ton wellhead deck, and 1,300-ton jacket.

J. Ray will also be responsible for the installation of a second 98km 38” pipeline from the platform to the onshore terminal. Options for additional wellhead platforms, intra-field pipelines and trunk lines still exist within the original contract.

“We are thrilled with this project award and are greatly honored that ExxonMobil and RasGas have chosen us, once again, for the development of their facilities,” said Kurt Nelson, vice president and general manager, J. Ray McDermott’s Eastern Hemisphere operations.

Under the original contract, J. Ray is responsible for the turnkey project management, design engineering, procurement, fabrication, installation, hook-up and mechanical completion of two wellhead platforms (WH7 & WH5), a 93-kilometer offshore to onshore trunk line, a 28” Intrafield Pipeline tied into the trunk line to shore via a subsea Wye Piece connection.

This project demonstrates J. Ray McDermott’s true EPCI global project management capabilities, utilizing its worldwide resources. Detailed engineering will be undertaken by the Jebel Ali engineering team. Mentor Subsea Technology Services, Inc., (also part of the McDermott group and based in Houston, Texas) will provide pipeline design engineering, with pipeline installation and construction support from Jebel Ali.

"By combining our engineering, procurement, fabrication and installation entities to provide an integrated solution, we are able to ensure complete control over individual project elements and eliminate the interface problems associated with a project of this complexity,” said Nelson.

Fast-track work on the wellhead jacket will commence at J. Ray’s Jebel Ali fabrication yard immediately. Work on the deck is set to commence in September 2003. The jacket is scheduled to be installed using one of J. Ray’s own derrick lay barges by the end of December 2003, with deck installation and pipelay set to complete by September 2005.

“We have been closely involved in the development of Qatar’s North Field since its inception back in 1994,” said Nelson. “We successfully performed EPCI work for RasGas Trains 1 and 2, comprising a process platform, a living quarters platform, three wellhead platforms, a riser platform, a flare platform and five interconnecting bridges. “

RasGas (II) is a joint venture between Qatar Petroleum and Exxon Mobil.

About J. Ray McDermott
J. Ray McDermott, Inc is a subsidiary of McDermott International, Inc (NYSE:MDR). A leading worldwide company specializing in offshore field developments, its turnkey and project management services include design, fabrication and installation of spar platforms; design and installation of subsea facilities; design, fabrication, transportation and installation of new and refurbished bottom-founded offshore platforms; and, installation of offshore pipelines for the oil and gas industry.

McDermott International, Inc is a leading worldwide energy services company. The company’s subsidiaries provide engineering, fabrication, installation, procurement, research, manufacturing, environmental systems, project management and facility management services to a variety of customers in the energy industries, including the U.S. Department of Energy.

J. Ray McDermott's Middle East operation has fabricated and installed more than 620 structures and 2,600 miles of pipelines in the Arabian Gulf and India since 1960. Today, the Middle East area headquarters, fabrication yard and marine base occupy 60 hectares (150 acres) in the Jebel Ali Free Zone in Dubai.

For more information please see www.jraymcdermott.com.

Posted by Richard Price, Editor Pipeline Magazine

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