Qatargas 3, 4 Offshore LNG Projects Go to J. Ray

McDermott International, Inc.

McDermott International, Inc. said that a subsidiary of J. Ray McDermott, S.A. was recently awarded an engineering, procurement, construction, and installation contract for three wellhead topsides bound for Qatar's North field, for the Qatargas 3 and Qatargas 4 offshore projects.

"It's an honor for us to be selected by the Qatargas 3 and 4 ventures for this project, which follows the award of the jacket fabrication work earlier this year," said Bob Deason, President and Chief Operating Officer of J. Ray. "There is significant potential for oil and gas field development in Qatar and every project award strengthens our experience and market position in the region."

J. Ray will design, purchase materials, construct, transport, install, hook-up, and mechanically complete three wellhead decks, WHP7, WHP8 and WHP9, each weighing approximately 2,100MT. Engineering and procurement has recently commenced and construction is expected to begin by April 2007 at J. Ray's Jebel Ali fabrication facility. All three well head decks are anticipated to be complete by the last quarter of 2008.

Qatargas 3 is an integrated project, jointly owned by Qatar Petroleum (68.5%), ConocoPhillips (30%), and Mitsui (1.5%). Qatargas 4 will be implemented through a joint venture between Qatar Petroleum (70%) and Shell (30%). Each project comprises upstream gas production facilities to produce approximately 1.4 billion cubic feet per day of natural gas, including an average of approximately 70,000 bbl/d of Liquefied Petroleum Gas and condensate combined from Qatar's North Field over the 25-year life of the project. The projects will each include a 7.8 million tonnes-per-annum LNG train. The first LNG cargos from Qatargas 3 are expected to be delivered in 2009. First LNG cargos from Qatargas 4 are scheduled for around the end of the decade.

McDermott International, Inc. is a leading worldwide energy services company. McDermott subsidiaries provide engineering, construction, installation, procurement, research, manufacturing, environmental systems, project management and facility management services to a variety of customers in the power and energy industries