McDermott wins Safaniya contract

02 September 2005
US-based J Ray McDermott announced on 20 August that two of its subsidiaries - Jebel Ali-based J Ray McDermott (Middle East) and the local McDermott Arabia Company - had been awarded the engineering, procurement and construction (EPC) contract to fabricate and install new pipelines, platforms and associated infrastructure at the three offshore oil fields of Safaniya, Zuluf and Marjan. The contract was placed by Saudi Aramco, which in mid-August awarded the first contract on the North Safaniya artificial lift project to Abu Dhabi-based National Petroleum Construction Company (NPCC).

The McDermottt contract includes the fabrication of five wellhead jackets, including piles and conductors with a total weight of 6,100 tonnes, five drill decks and three scrapper decks. It will also involve the installation of 21 kilometres of subsea pipelines, including flowlines, at water depths of 15-52 metres, tie-ins and two 5-kV power cables with a total length of six kilometres. The first jacket is planned for installation at Zuluf by March 2006, with total project work due to be completed by the third quarter.

The McDermott and NPCC EPC contracts are worth a total of $350 million-400 million. Australia's WorleyParsons is the front-end engineering and design (FEED) contractor. The projects are aimed at increasing production capacity to 450,000 barrels a day (b/d) from 300,000 b/d (MEED 19:8:05).

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