Saudi Aramco and McDermott Sign Upstream Pipeline Contracts

J. Ray McDermott has signed two contracts with Saudi Aramco to detail design, procure, fabricate, transport, and install offshore facilities for the company's Maintain Potential and Khursaniyah Upstream Pipeline programs. The lump sum turnkey contracts are the first such agreements that Saudi Aramco has executed for offshore work.

The first contract includes two drilling support structures in Zuluf Field to be installed in December 2006 and one new wellhead production platform in Central Safaniya Field to support onstream start-up in May 2007.

Three additional wellhead platforms will be installed in Central Safaniya and Zuluf Fields by December 2007. New associated flowlines will connect these platforms to existing offshore tie-in (manifold) platforms.

To support increasing production in Central Safaniya field, a new tie-in platform (Safaniya TP-18) also will be engineered, procured, fabricated, and installed by December 2007. In addition, a 24-inch trunkline between the platform and a subsea connection will be installed on the new 42-inch trunkline flowing to the onshore Safaniya GOSP-1. The trunkline will be installed under a separate contract.

The second contract is associated with the 22-kilometer-long subsea portion of the 30-inch gas pipeline from Abu Ali Island to an onshore site at Khursaniyah. it will be installed by May 2007.

The subsea portion is part of the new 66-kilometer-long BKTG-1 pipeline that will transport 220 million standard cubic feet per day of gas from the Abu Ali Plant to the Khursaniyah Gas Plant.