McDermott, Bay Begin Alliance at Harbor Island Facility

Tuesday, February 20, 2001
J. Ray McDermott, Inc., a subsidiary of McDermott International, Inc., and Bay Ltd. have formed a strategic alliance to pursue fabrication projects in the offshore oil and gas industry, using McDermott's Harbor Island facility near Corpus Christi, Texas.

Under the alliance, J. Ray McDermott will provide overall project management, engineering and procurement services, as well as the assembly areas, lifting equipment dredged slip and bulkhead at Harbor Island.

Bay, which is the largest non-government employer of skilled craftspeople in the Coastal Bend area of Texas, will provide fabrication and construction services, labor, and equipment to support fabrication of large platform topsides at Harbor Island. Both companies are recognized as safety leaders in the construction industry. "This alliance combines certain assets and resources of J. Ray McDermott and Bay to provide a world-class menu of fabrication and construction services to the offshore oil and gas industry," said Cliff Bell, vice president and general manager of J. Ray McDermott's Western Hemisphere operations. "One of the main objectives of this alliance is to further strengthen our position in a highly competitive fabrication market by sharing facilities, utilities, equipment, and most importantly, skilled craftspeople."

Approximately 275 acres are available at Harbor Island for construction activities and material marshalling. Additionally, the yard offers four permanent skidways ranging in length from 400 ft. to 1,400 ft. and over 1,300 ft. of continuous sheetpile bulkhead.

The Corpus Christi ship channel, dredged to 45 ft., provides direct access to the Gulf of Mexico. There are no height, width or turning restrictions between the Harbor Island facility and the Gulf of Mexico.

"McDermott and Bay have enjoyed a close working relationship for many years in the Morgan City area, as evidenced by our joint construction and outfitting of topsides for three TLPs," said K.J. Luhan, president of Bay Ltd. "Our companies will build on these experiences as we move forward together in this strategic alliance."

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