J. Ray McDermott Wins Two Contracts

Monday, February 13, 2006
McDermott Arabia Company Ltd. a subsidiary of J. Ray McDermott, S.A., has been awarded two turnkey contracts by Al-Khafji Joint Operations (KJO), to provide engineering, procurement, construction and installation services for KJO developments in the Arabian Gulf. The first contract is for an integrated wellhead jacket (IWJ) in the Al-Khafji oil field offshore Saudi Arabia. The second contract will see J. Ray support the expansion of KJO's loading facilities in the offshore Neutral Zone between Saudi Arabia and Kuwait. Projects of this type are typically valued over $50 million. The new IWJ wellhead platform, weighing approximately 1,100MT, is similar to other IWJs. The structure, including jacket, piles, and deck will be fabricated at J. Ray's Jebel Ali yard under a fully integrated project management team. In addition, J. Ray will also undertake a site survey, pre-commissioning, and limited commissioning of the unmanned integrated wellhead jacket. Installation work is scheduled to start in December 2006, targeting completion by the start of 2007.

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