J. Ray McDermott Wins Al Khaleej Contract from ExxonMobil

J. Ray McDermott has signed a contract with ExxonMobil Middle East Gas Marketing, Ltd. to fabricate and install a 2,100-ton wellhead deck and a 1,300-ton jacket. The contract also includes installation of a second 60 mile 38" pipeline from the platform to the onshore terminal for the Al Khaleej Gas Project in Qatar. The contract resulted from the customer's exercise of an option under the original RasGas (II) Expansion Project contract, which was awarded to J. Ray in April 2001. Options for additional wellhead platforms and intra-field pipelines are still available under the original contract. RasGas (II) is a joint venture between Qatar Petroleum and an affiliate of ExxonMobil. While financial terms are confidential, the scope of work under this recently signed contract is typically valued at over $150 million.

"We are pleased with the continued confidence that ExxonMobil and RasGas have shown in us and in once again choosing us for the development of their facilities," said Kurt Nelson, Senior Vice President and General Manager, Sales, Marketing and Strategic Planning for J. Ray McDermott.

Fabrication of the wellhead jacket will commence immediately and fabrication of the deck will commence in September 2003 at J. Ray's Jebel Ali yard in Dubai, UAE. Installation of the jacket is scheduled for the end of the year, with deck installation and pipelay scheduled for completion in the fall of 2005.