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Home > Press Room

PRESS RELEASE: April 24, 2006

J. RAY MCDERMOTT COMPLETES PIPELINE INSTALLATION FOR BP SHAH DENIZ PROJECT IN THE CASPIAN

 

McDermott Caspian Contractors, Inc. (MCCI), a subsidiary of J. Ray McDermott, S.A. (J. Ray), successfully completed the installation of subsea pipelines for Stage 1 of the Shah Deniz gas and condensate development project operated by BP on behalf of the Shah Deniz partnership. The Shah Deniz field lies in water depths between 50m and 600m, approximately 70km south east of Baku, in the Azerbaijani sector of the Caspian Sea.

Crews aboard the pipelay barge Israfil Huseynov installed 90km of 26" gas export pipeline and 12" condensate export line with a 4" mono ethylene glycol (MEG) pipeline installed "piggy-back" on the 12" line.

"This is the first time in the Caspian that two pipelines, in this case a 12" diameter condensate pipeline and a 4" export line, have been installed together using a piggy back technique," said Dan Houser, Vice President and General Manager, Caspian operations. "Our project team prepared the pipelay equipment upgrade for the barge well in advance, including the upgrade conversion and training of pipelay personnel to operate the equipment that laid the 4" MEG line which was installed flawlessly.".

The pipelay was completed within the schedule and was followed by a successful hydrostatic pressure test.

"The successful accomplishment of work for this major contract from the Shah Deniz partnership is a significant achievement for J. Ray, and we are proud to continue to be associated with BP-operated projects worldwide and with this opportunity for development in the Caspian region," said Houser.

Background Information:

McDermott Caspian Contractors, Inc. (MCCI) is the Caspian operating entity, and wholly owned subsidiary, of J. Ray McDermott, S.A. The company provides products, services and creative solutions to the offshore oil and gas industry. These services include, but are not limited to, engineering, procurement, fabrication, construction and project management, offshore pipelay and marine construction.

In Azerbaijan, MCCI performs topsides fabrication and subsea pipelines installation projects for Azerbaijan International Operating Company (AIOC), a consortium formed in 1994 and currently operated by BP. Under contracts to AIOC, the company is fabricating integrated decks and installing subsea pipelines for Phase 1, Phase 2 and Phase 3 development of AIOC's Azeri, Chirag and deepwater portion of the Gunashli fields (ACG) in the Azerbaijan sector of the Caspian Sea. Under pipeline installation contracts to AIOC for the ACG development, MCCI also significantly upgraded and modernized the pipelay barge Israfil Huseynov (PLBG) and the diving support vessel Tofik Ismaylov (DSV) free-issued to MCCI by AIOC through their Charter Party Agreement with State Oil Company of the Azerbaijan Republic (SOCAR).

MCCI has established constructive working relationships with SOCAR and its subsidiaries Baku Deep Water Jacket Factory named after Heydar Aliyev (BDJF) and the Caspian Sea Oil Fleet (CSOF). As part of its topsides fabrication contracts with AIOC, the company executed a comprehensive upgrade program of the BDJF facilities and established a full project infrastructure at the BDJF yard.

J. Ray McDermott, S.A. provides turnkey project management, including design, fabrication, transportation and installation of marine structures and pipelines, for development drilling and production, and subsea production systems, using in-house resources for every market.

 

For more information, please contact:

 

Louise Denly
Director, Public Relations
J. Ray McDermott, Inc.
Houston, TX
(281) 870-5000
E-Mail:ldenly@mcdermott.com
www.mcdermott.com

Gulia Taghiyeva
McDermott Caspian Contractors, Inc. - Public Relations
Baku, Azerbaijan, Tel: +994 12 4449944, Fax: +994 12 4449955
E-mail: gtaghiyeva@mcdermott.com

Louise Denly, PR Manager
J. Ray McDermott Middle East, Inc.
Dubai, UAE, Tel: +971 4 804 3293 Fax: +971 4 8834 330
E-mail: ldenly@mcdermott.com