DynMcDermott to Manage Strategic Petroleum Reserve

DynMcDermott Petroleum Operations was awarded a new five-year contract by the United States Department of Energy (DOE) to manage and operate the Strategic Petroleum Reserve (SPR). The SPR is the government's emergency crude oil stockpile that is stored in underground salt domes along the Louisiana and Texas Gulf Coast. DynMcDermott will receive an estimated $120 million annually to maintain the readiness of the Reserve's four crude oil storage facilities. The contract includes an option for an additional five-year extension.

"I am very proud of the DynMcDermott employees whose performance each day made this contract renewal possible," said Robert McGough, president and CEO of DynMcDermott. "Their efforts, particularly in the area of environment, safety and health was one reason we were awarded the Strategic Petroleum Reserve contract for the next five years."

Under DynMcDermott's leadership, the SPR became only the second DOE facility to receive ISO 9001 certification for its exceptional quality management program. The company has also reduced the number of annual work- related accidents from 56 to only seven and reduced the number of lost hours to only 14 workdays. The new contract will take effect on April 1, 2003. DynMcDermott is a company formed solely to operate the SPR. It is jointly owned by DynCorp of Reston, Va.; McDermott International Inc., New Orleans, La.; Jacobs Engineering, Pasadena, Calif.; and International Matex Tank Terminals, New Orleans, La. SOURCE DynMcDermott Petroleum Operations Inc.