KBR Wins North Sea Contract from Conoco

Kellogg Brown & Root has been awarded a contract by Conoco (U.K.) Limited for the provision of brownfield modifications to the Murdoch Complex in the United Kingdom Continental Shelf. Valued at around US$45 million, the work is expected to take two years and secure continuity of around 30 design related jobs in Aberdeen while creating around 50 new offshore construction jobs in summer 2002. The contract was awarded to Production Services, a part of Kellogg Brown & Root's Operations & Maintenance group.

The contract scope covers engineering, procurement, fabrication, construction and commissioning works related to the installation of two new risers and associated equipment. This will enable gas processing to be undertaken from the five new Caister-Murdoch System (CMS) fields - Hawksley, McAdam, Murdoch K, Boulton H and Watt. These new CMS fields, which are subsea developments, are situated in the Southern North Sea, approximately 150 km off the east coast of England. The contract also covers the procurement of a new compressor and the hook-up and commissioning of a 1000 ton compression module and a 34 man accommodation platform, as well as minor modifications to the Theddlethorpe Gas Terminal in Lincolnshire. This award follows the success of the Conoco Integrated Services Contract for the Southern North Seas Assets and the completion of upgrade works to the Viking 'B' compression facilities.

The work will be managed from Production Services' offices in Dyce, Aberdeen and around US$16 million of subcontracts will be placed across the UK as a result of this award.

Commenting on the win, Tadg Slattery, vice president, Production Services, said: "We are naturally delighted to be awarded this work. Following our success on the Viking 'B' compression work, we see this further award as an expression of Conoco's confidence in our ability to perform." He added: "In addition to the main workscope associated with CMS III we will also be providing engineering support for all topsides aspects of the development. This is an area where we hope to make a significant contribution, sharing best practice drawn from our wide-ranging expertise in this type of brownfield project."