J. Ray McDermott Awarded Long Term Agreement by Saudi Aramco
07 August 2007 - 9:30PM
Business Wire
McDermott International, Inc. (NYSE:MDR) (�McDermott�) announced
today that its subsidiary, J. Ray McDermott, S.A. (�J. Ray�), has
been awarded a seven-year project by Saudi Aramco 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� or �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,� said Bob Deason, Chief Executive Officer 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 first package, J. Ray will procure and
construct over 17,500 metric tons of structures at its Jebel Ali
facility that will be installed in water depths of 14 meters
through 55 meters. In addition, the company will install 12
pipelines totaling 70 kilometers in length and six subsea cables
totaling 53 kilometers. All work will be performed by J. Ray�s
marine vessels in the Zuluf, Safaniya, Marjan, and Karan fields,
offshore Saudi Arabia. J. Ray�s scope under 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 their development plans and budget allocations.
McDermott is an engineering and construction company, with
specialty manufacturing and service capabilities, focused on energy
infrastructure. McDermott�s customers are predominantly utilities
and other power generators, major and national oil companies, and
the United States Government. With its global operations, McDermott
operates in over 20 countries with more than 20,000 employees, and
can be found on the internet 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 expected work scope and
timing of the Saudi Aramco Long Term Agreement. 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 by using various underlying
assumptions and are subject to numerous uncertainties and risks. 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 on Form 10-K for the
year ended December 31, 2006 filed with the Securities and Exchange
Commission.
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