McDermott Awarded Contract For Devils Tower

McDermott International, Inc. announced that SparTEC, Inc., a subsidiary of J. Ray McDermott, received a turnkey engineer-procure-construct-install contract, valued at approximately $200 million dollars, to provide a spar platform for the development of the Devils Tower field in the Gulf of Mexico. The field is owned by Dominion Exploration and Production, Inc. and Pioneer Natural Resources Company, and operated by Dominion. The Devils Tower spar will be located in 5,610 feet of water in Mississippi Canyon Block 773, making it the world's deepest dry tree platform.

SparTEC will act as the general contractor and overall project manager for the design engineering, procurement, fabrication, installation and commissioning of the facility. Work on the project, which is scheduled to enable first production by mid-2003, will begin immediately.

SparTEC will utilize J. Ray McDermott assets, worldwide, to complete the Devils Tower platform. Detailed engineering of the hull mooring and topsides will be completed in Houston. The hull will be fabricated at the company's Batam Island facility in Indonesia. Topsides will be prefabricated in Mexico at the company's TNG shipyard and assembled and outfitted at its Harbor Island fabrication yard near Corpus Christi, Texas. Work at Harbor Island will be completed under a strategic alliance with Bay Ltd. The company's Mentor Subsea Technology Services, Inc. subsidiary will design and procure production risers, and the company's marine division will be responsible for offshore installation, hookup and commissioning.