McDermott Caspian Contractors, Inc. (McDermott), a subsidiary of J. Ray McDermott, S.A., was awarded a contract by OOO LUKOIL-Nizhnevolzhskneft (LUKOIL), a subsidiary of OAO LUKOIL Oil Company, to install offshore facilities in the Yuri Korchagin field. The field is located 180km outside Astrakhan city in the Russian sector of the Caspian Sea. The offshore installation work is scheduled to begin in May 2009.
"This is our second project award by LUKOIL for offshore construction and installation in the Russian sector of the Caspian Sea," said Dan Houser, Vice President and General Manager, Caspian operations. "We are very pleased to be chosen by LUKOIL for the Yuri Korchagin project and to have this opportunity to strengthen our position in Russia's promising offshore market."
McDermott's scope of work includes the transportation and installation of the piles for the ice-resistant fixed platform LSP-1, as well as transportation and installation of Single Point Mooring (SPM) substructure, piles and the topsides. McDermott's marine operations team will also transport a Floating Storage and Offloading vessel, connect it to SPM system and perform its testing.
Additional work includes engineering, procurement, fabrication, transportation and installation of the tie-in spools at the LSP-1 and the SPM ends of the sub-sea pipeline. This pipeline will be pre-laid by McDermott under a separate contract with LUKOIL commencing April 2008.
McDermott will perform the project through its Russian operations group with support from its regional offices in Baku, Azerbaijan, and Jebel Ali, United Arab Emirates and maximized use of Russian suppliers, vendors and subcontractors.
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