McDermott Wins Shah Deniz Pipelay Contract

J. Ray McDermott

J. Ray McDermott has been awarded a pipelay contract by BP Shah Deniz Exploration Ltd. The contract is for the Stage 1 development of the Shah Deniz field in the Azerbaijan sector of the Caspian Sea and is valued at over $80 million. The scope of work includes the installation of two 90 kilometer offshore gas transportation pipelines from the Shah Deniz Alpha platform to the Sangachal onshore terminal, pipeline tie-ins to the platform, diving work and all pre-commissioning activities. The pipelines comprise one 26" trunkline and one 12" line, with an additional 4" piggyback pipeline on top. The pipeline installation will be performed in 2005 with tie-in and completion scheduled during 2006.

"We are extremely pleased J. Ray has been selected for this third award from BP operated projects in the Caspian within the last 12 months. Awarding of this project reflects BP's confidence in our ability to perform and deliver quality services on significant pipeline installation projects in the Caspian Sea," said Kurt Nelson, senior vice president of J. Ray.

"The level of openness and commonality of project goals between BP and our company on these projects will help to ensure our future success in this area of the world. We believe that J. Ray will be in Azerbaijan for the long term, and we intend to dedicate our energy to the success of these important projects," continued Nelson.

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