MDR Unit Wins Saudi Deal – Analyst Blog

J. Ray McDermott S.A. – a subsidiary of energy-focused engineering and construction firm McDermott International Inc. (MDR) – announced the receipt of an infrastructure upgrade and electrification contract from Saudi Aramco, the state-owned national oil company of Saudi Arabia. The financial terms of the transaction were not disclosed.

 

The project, encompassing the upgrade of crude gathering and power supply facilities in Saudi Aramco’s Safaniya field, will help sustain crude oil production to meet Saudi Aramco’s maximum sustainable capacity targets for the field by 2013.

 

As per the agreement terms, J. Ray will be responsible for engineering, procurement, construction, and installation (or EPCI) of a new tie-in platform (STP-20) with a 6,000-ton topside, a new electrical deck module for an existing platform (STP-18), a 53-kilometer, 42-inch trunk line, 4 new in-field lateral flowlines and valve skids, 156 kilometers of subsea electrical cable, in addition to the modification and electrification of 9 existing wellhead platforms. J. Ray is due to commence engineering work in the second quarter of 2010, with contract completion expected during 2013.

 

The order is part of J. Ray’s strong and longstanding relationship with Saudi Aramco, which includes work on other projects in the Berri, Marjan, Zuluf, Abu-Safah and Safaniya fields. Situated in the Persian Gulf, Safaniya is the world’s largest offshore oil field.

 

Because of the multi-faceted nature of the Saudi Aramco award, J. Ray sees this as a chance to showcase its full range of services, from design development, detailed engineering, procurement, construction of new facilities, and installation of platforms, pipelines and cables, as well as brownfield modifications to existing facilities from its regional headquarters in Jebel Ali, Dubai, United Arab Emirates. 

 

Incorporated in 1959, Houston, Texas-based McDermott International Inc. provides a diverse range of products and services to customers in the energy and power industries, including utilities and other power generators, major and national oil companies, and the U.S. government.