J. Ray Reels in First SURF Project Offshore Vietnam

A subsidiary of J. Ray McDermott has been awarded its first SURF ("Subsea Infrastructure, Umbilicals, Risers & Flowlines") project in the Asia Pacific market since its strategic push into this high growth area. This milestone contract was awarded by PetroVietnam Technical Services Corporation ("PTSC") on behalf of its customer, PetroVietnam Exploration & Production ("PVEP").

J. Ray's scope of work includes the engineering, procurement, construction and installation of new production and export lines, umbilical and subsea cable. This includes tie-in, testing and pre-commissioning of two 2.2 kilometers flexible flowlines, replacement of two 2.3 kilometers export flowlines and umbilical, installation of a subsea cable and 4.8 kilometers of insulated flexible flowlines. Initial engineering and procurement work starts immediately with the offshore installation expected to commence in the third quarter of 2011.

J. Ray's Executive Vice President & Chief Operating Officer, John Nesser, who attended the award signing ceremony in Ho Chi Minh City said, "We are very pleased with this first award as it is a step forward in our long term strategy to grow our SURF business in the Asia Pacific market. This award solidifies and acknowledges the long relationship we have with PTSC."

The Dai Hung oil field is located in Block 05-1A, approximately 250 kilometers offshore Vietnam, in a water depth of about 110 meters and is operated by PVEP.

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