McDermott wins Habanero & Llano Work from Shell

J. Ray McDermott revealed that Shell has awarded two contracts for the installation of pipe-in-pipe subsea flowlines for the Habanero and the Llano projects, both of which will tie back to Shell's Auger tension leg platform located in 2,860 feet of water in the Gulf of Mexico. J. Ray's Derrick Barge 50 will perform the installations utilizing the J-Lay method. This type of work is typically valued at over $35 million.

"We are pleased with the opportunity to once again work with Shell on these challenging projects. Our experience with Shell in the installation of deepwater pipelines dates back to 1993 when we successfully installed the Auger export pipelines," said Kurt S. Nelson, Sr. Vice President, Sales, Marketing and Strategic Planning for J. Ray.

The scope of work on the Habanero project will include the installation of two 10" x 6" pipe-in-pipe flowlines connecting two subsea wells in 2,000 feet of water to Auger. The scope of work on the Llano project will include the installation of two 12" x 8" pipe-in-pipe flowlines connecting two subsea wells in 2,700 feet of water to Auger, and one intra-field 12" x 8" pipe-in-pipe flowline between the two subsea wells. The approximately 44 miles of flowlines and associated steel catenary risers ("SCR's") for Habanero and Llano are scheduled for installation in the summer and the fall of 2003, respectively.

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