J. Ray McDermott Awarded Two Contracts Offshore Saudi Arabia

Al-Khafji Oil Field
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McDermott International says that a subsidiary of J. Ray McDermott, S.A. 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.


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