Global Industries to Install Pipelines for Ocean Energy's Zia Project

Global Industries, Ltd. has been awarded a contract by Ocean Energy, Inc. to install two 16-mile flowlines from a fixed platform in the Gulf of Mexico's South Pass Block 89 in 420 feet of water to a subsea well in Mississippi Canyon Block 496 in 1,850 feet of water.

The first flowline will be 5 inches in diameter; the second flowline will use a pipe-in-pipe system with an insulated 5-inch pipeline inside a 10-inch pipeline. A common Pipe Line End Termination (PLET) will be installed at the subsea well end of both flowlines.

The installation is part of the Zia Project in Mississippi Canyon Block 496 in 1,850 feet of water. First production is expected during the second half of 2003.

William J. Doré, Chairman and CEO, stated: "This project comes at a good time. The schedule fits well with the recent lessons learned with Shell Manatee and utilization of our vessel Hercules."

"With an improving environment for pipeline projects worldwide, this project assures us a great start toward meeting our financial expectations for 2003," stated Mr. Doré


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