J Ray Mcdermott Sa News

J. Ray McDermott, S.A. (J. Ray) announced that its subsidiary P.T. McDermott Indonesia (PTMI) has been awarded a contract by the Kellogg Joint Venture-Gorgon on behalf of Chevron Australia Pty. Ltd, operator of the Gorgon Project. The estimated value of the contract if the work is completed per contract terms is in excess of $150m. More than 60 pre-assembled racks and units with an estimated combined weight of approximately 25,000 tonnes will be constructed at J. Ray’s Batam Island fabrication facility in Indonesia. J. Ray will provide services for project management, fabrication engineering, procurement and material management, construction, commissioning assistance, quarantine compliance, loadout and seafastening.

J. Ray McDermott, S.A. (J. Ray) announced the appointment of Stephen M. Johnson as President and Chief Executive Officer of J. Ray, effective January 1, 2010. Johnson is the current President and Chief Operating Officer of McDermott International, Inc. (McDermott), J. Ray’s parent company. He succeeds Robert A. Deason, who, as previously announced, will retire at the end of the year. Separately, McDermott announced that it plans to separate its operating subsidiaries, The Babcock & Wilcox Company (B&W) and J. Ray, into two independent, publicly traded companies.

J. Ray McDermott, S.A. announced that its Malaysian affiliate Barmada McDermott Sdn. Bhd. has been awarded a transportation and installation contract by ExxonMobil Exploration and Production Malaysia Inc. for the replacement of a 12-inch full well stream pipeline between Guntong-B and Guntong-A platforms, off the east coast of Peninsular Malaysia. The scope of work also includes transportation and installation of a new flare boom to replace an existing flare boom at the Guntong-A platform. The pipeline installation is expected to be completed during the third quarter of 2009. (www.mcdermott.com)

J. Ray McDermott, S.A., a subsidiary of McDermott International, Inc., announced that it was recently awarded additional work under the Long-Term Agreement (LTA) with Saudi Aramco. This latest project, which is expected to continue through 2010, consists of the procurement, fabrication and installation of three decks, jackets, associated pipelines, and the installation of three new shallow water crude oil pipelines, totaling 15 kilometers in length, in the South Safaniya oil field, offshore Saudi Arabia. The pipelines will divert crude oil production flow from three existing platforms to other facilities before reaching the Safaniya onshore Gas Oil Separator Plant.

J. Ray McDermott, S.A. announced that its Malaysian affiliate Barmada McDermott Sdn. Bhd. (BMD) has won a fast track transportation and installation contract from ExxonMobil Exploration and Production Malaysia Inc. for the 2.4km, 12 inch full well stream (FWS) replacement pipeline between Guntong-C and Guntong-A, off the east coast of Peninsular Malaysia. The existing Guntong-C riser and a section of the existing pipeline will be replaced with a 2.4km pipeline riser with tie-in to the existing 12 inch pipeline. A mechanical connector will be used to connect the new pipeline to the remaining section of the existing pipeline. The project is expected to be completed by the end of 2008. J. Ray McDermott, S.A., a subsidiary of McDermott International, Inc.

Peter S. Atkinson, President of Global Industries, Ltd., will assume responsibilities for all administrative functions worldwide including accounting, human resources, information and communications, investor relations, legal, purchasing, risk, safety, and all other functions reporting to these groups. Atkinson joined the Company in September 1998 as Vice President and Chief Financial Officer. In June 2000, he was named President. Prior to joining Global, he served at the corporate level and in the North Sea, Middle East, West Africa, and Central and South America at J. Ray McDermott, S.A. and McDermott International, Inc. for over twenty-three years.

With the next "offshore boom" looming on the horizon, many of the vessel repair and conversion yards, particularly but not limited to the Gulf of Mexico region, are projecting good times in the coming year. Quite simply, the sustained high price of oil will eventually push oil majors - which have been sedate to date due to continued consolidation and a fear of extending too far, too soon - to start spending again on exploration and production, particularly in deepwaters. In conjunction with this is the expected decision of the U.S. MMS on the use of Floating Production Systems in the Gulf of Mexico, a development which will further drive down the cost of recovering product from record depths and have a resulting positive effect on the companies which build…

J. Ray McDermott, S.A., a subsidiary of Houston-based McDermott International Inc., has completed its acquisition of substantially all of the assets of Secunda International Ltd. Those assets include 14 harsh-weather, multi-functional vessels for sub-sea construction, pipe and cable laying and dive support. The $260 million acquisition also includes Secunda’s shore-based operations. “We are pleased to complete this purchase and to begin integrating certain assets into J. Ray’s strong backlog of offshore oil and gas construction projects,” said Bob Deason, J. Ray’s chief executive officer. “With Secunda, J.

According to reports, J. Ray McDermott Eastern Hemisphere Ltd. (J. Ray), a subsidiary of J. Ray McDermott, S.A., was awarded a contract by ExxonMobil Middle East Gas Marketing Ltd. to provide engineering, procurement, construction and installation (EPCI) services for two wellhead platforms and pipelines, as part of the Al Khaleej Gas (AKG) Development Phase 2 Offshore Expansion Project.

Orleans, LA. The return to NOLA comes nearly ten months after Hurricane Katrina forced the evacuation of J. temporary offices in Amelia, Louisiana and Houston, Texas. (formerly the Amoco Building). employees. of J. Ray. "The Engineering office in New Orleans is a key part of J. "J. Development Secretary Michael J. Olivier.

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.

J. Ray McDermott, S.A. ("J. Ray"), a subsidiary of McDermott International Inc. ("McDermott"), announced that its Morgan City, Louisiana fabrication facility has been awarded a contract for the construction of flues, ducts and reactor panels by The Babcock & Wilcox Company ("B&W"), also a McDermott subsidiary. The contract is in support of B&W's Kansas City Power & Light LaCygne #1 SCR project and is valued at approximately $4 million. Scheduled to begin in the first quarter of 2006, the contract requires J. Ray to procure structural steel materials and to fabricate, paint, load-out and ship to Kansas City: SCR system flues, ducts and reactor panels weighing approximately 2,500tons.

J. Ray McDermott, S.A. (J. Ray), a subsidiary of McDermott International Inc., won a contract with Seneca Resources Corporation for the design engineering, procurement, structural fabrication, process outfitting and loadout of a three-pile jacket and deck. The contract is expected to be completed by May 2006 Components of the turnkey proposal include the jacket, deck with process facilities, piles and heliport. Pinnacle Engineering will provide the detail design and equipment procurement as the principle subcontractor working with J. Ray on the turnkey contract. The completed facility will be installed in approximately 124 ft. of water in Viosca Knoll Block 432.

McDermott International, Inc. announced that subsidiaries of J. Ray McDermott, S.A. have been awarded work by Saudi Aramco to provide fabrication and installation services for the Marjan, Zuluf, Safaniya oil field developments. "This is a significant contract award for us and we are pleased to have the opportunity to further expand our strong working relationship with Aramco, which dates back to the 1960's," said Bob Deason, President and Chief Operating Officer of J. Ray. "J. J. Ray, utilizing its Jebel Ali fabrication facility, will commence construction engineering, partial procurement and fabrication of five wellhead jackets totaling over 6,710 short tons, five drill decks totaling over 2,200 short tons, and three scrappers averaging 630 short tons each.

The Finance Committee of the Board of Directors of McDermott International, Inc. has terminated discussions with the Independent Committee of the Board of Directors of its majority-owned subsidiary, J. Ray McDermott S.A., concerning the possible acquisition by McDermott International of the publicly held shares of J. Ray McDermott. The committee said the discussions were terminated because the parties were unable to reach an acceptable financial agreement. The companies will continue to operate under the current corporate and operational management structure.

J. Ray McDermott is investing $12 million to upgrade a dynamically positioned offshore derrick barge with a package of improvements that will provide the vessel with greater flexibility in deepwater operations, said Gary W. Drinkwater, senior vice-president and group executive, Western Hemisphere. “Derrick Barge 16 will be capable of a multitude of offshore installation options, especially in the deepwater market fields, where much of today’s exploration and drilling activity is occurring,” said Drinkwater. DB 16’s dynamically positioning system will be upgraded to a DPS-2 rating. The ABS classification of a DPS-2 rating indicates a more sophisticated system, which allows for redundancy. The four 2,000 hp, full azimuth thrusters will provide the 400 x 100 ft.

J. Ray McDermott, S.A. announced a proposal was made by the Board of Directors of McDermott International, Inc., to the Independent Committee of J. Ray McDermott's Board of Directors. Under the proposal, McDermott International would acquire all the publicly held shares of JRM. The proposal calls for a merger in which each publicly held share of J. Ray McDermott would be converted into 1.15 shares of McDermott International, Inc. common stock. McDermott International currently owns 63 percent of the common stock of JRM. The Independent Committee of J. Ray McDermott's Board will take the proposal of a merger with McDermott International, Inc. under consideration.

J. Ray McDermott, S.A. and Keppel FELS Limited. are in the process of forming a new joint venture company, to be named FloaTEC, LLC, to provide deepwater and ultra deepwater oil and gas development solutions. To add to the Joint Venture’s offerings, J Ray and Keppel FELS plan to draw upon the purchased patent rights previously owned by ABB for the Extended Tension Leg Platform (ETLP) and Single Column Floater (SCF) designs. Combined with J Ray’s existing SPAR technology and Keppel FELS’ semi-submersible expertise, FloaTEC, LLC will be in a unique position to provide a wide range of solutions for deepwater developments. “We believe that the timing could not be better for this cooperation with our colleagues at Keppel FELS and the establishment of this exciting joint venture…

McDermott International subsidiary J. Ray McDermott, S.A. won a $77 million contract by Woodside Energy Ltd., operator of the North West Shelf Venture's LNG Phase V Expansion project in Australia. Under the contract, J. Ray will undertake construction engineering, procurement, fabrication, assembly and erection of 75 pre-assembled module and pipe rack units totaling nearly 22,000 short tons. Completed modules and pipe racks will be shipped from J. Ray's Batam Island, Indonesian fabrication facility to Western Australia, and transported to the Venture's LNG facilities on the Barrup Peninsula where the new LNG "Train V" is being constructed.

McDermott International, Inc. announced that a subsidiary of J.Ray McDermott, S.A. has been awarded a contract by Ras Laffan Liquefied Natural Gas Company Limited (3) to provide engineering, procurement, construction and installation services for new facilities in Qatar’s North Field, as part of the Phase 2 Offshore Expansion Project. Contracts of this type are typically valued at approximately $0.5 billion. “RasGas is a valued client of J. Ray and its trust in our management, operations and quality of services explains the repeatability in our project work and the longevity of our relationship,” said Bob Deason, President and Chief Operating Officer of J. Ray.