J. Ray McDermott Awarded Two Contracts Offshore Saudi Arabia
13 February 2006 - 11:00PM
Business Wire
McDermott International, Inc. (NYSE:MDR) ("McDermott") announced
today that a subsidiary of J. Ray McDermott, S.A. ("J. Ray") has
been awarded two contracts by Al-Khafji Joint Operations ("KJO") 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. "This is a great opportunity to again offer KJO our
integrated capabilities in carrying out their latest field
development projects," said Bob Deason, President and Chief
Operating Officer of J. Ray McDermott, S.A. "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 metric 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 8km 36"
diameter pipeline and a 5.5km 13.8Kv submarine cable. The project
also involves the replacement of a 48" manifold to accommodate the
new 36" topside piping, including new 36" and 48" motorized
operated valves. The expansion project will also include design and
installation of an offshore loading control system. KJO is joint
venture between Aramco Gulf Operations Company Ltd. and Kuwait Gulf
Oil Company. McDermott International, Inc. is a leading worldwide
energy services company. McDermott subsidiaries provide
engineering, fabrication, installation, procurement, research,
manufacturing, environmental systems, project management and
facility management services to a variety of customers in the
energy and power industries, including the U.S. Department of
Energy. Additional information on McDermott can be obtained at
www.mcdermott.com. In accordance with the Safe Harbor provisions of
the Private Securities Litigation Reform Act of 1995, McDermott
International Inc. cautions that statements in this press release
which are forward-looking and provide other than historical
information involve risks and uncertainties that may impact
McDermott's actual results of operations. The forward-looking
statements in this press release include, among other things, the
work scope and the typical value of these projects. Although
McDermott's management believes that the expectations reflected in
those forward-looking statements are reasonable, McDermott can give
no assurance that those expectations will prove to have been
correct. Those statements are made based on various underlying
assumptions and are subject to numerous uncertainties and risks,
including without limitation change orders and other modifications
to contracts. If one or more of these risks materialize, or if
underlying assumptions prove incorrect, actual results may vary
materially from those expected. For a more complete discussion of
these risk factors, please see McDermott's annual report for the
year ended December 31, 2004 and its 2005 quarterly reports filed
with the Securities and Exchange Commission.
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