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Home > Press Room

PRESS RELEASE: May 30, 2006

MCDERMOTT PIPELINES OPERATIONS IN THE CASPIAN MEET HIGHEST ENVIRONMENTAL STANDARDS

 

McDermott Caspian Contractors, Inc. (McDermott), a subsidiary of J. Ray McDermott, S. A., announced results of the recent compliance audit of the company marine construction activities for the Shah Deniz gas and condensate development project. The quarterly audit was conducted by independent environmental consultancy URS Corporation Ltd. and was commissioned by BP, the operator of the project on behalf of the Shah Deniz partnership.

According to the audit's results, McDermott as a project contractor is now fully compliant with the highest environmental standards reflected in Contractor's Control and Implementation Plans that outline a comprehensive scope of World Bank environmental management requirements. The company has achieved a remarkable 100% compliance score in all areas including Pipeline Installation; Waste Management; Spill Preparedness and Response; Transport Management; Recruitment, Employment and Training; Procurement and Supply Chain Management; and Communicable Disease Prevention.

The company's environmental achievements were also acknowledged during a Cross-Project Audit conducted by Briggs Marine for the Azerbaijan International Operating Company (AIOC) operated by BP. In December 2005, McDermott's marine base was recognized as the 'best practice site' amongst all AIOC's contractors for the Azeri-Chirag-Gunashli (ACG) project in terms of chemical management and spill preparedness.

"These commendable achievements are a joint effort of our HSE and Marine teams, who have been working diligently toward improvement in environmental practices throughout 2005," commented Dan Houser, Vice President and General Manager, Caspian operations. "A number of systems and practices implemented at our marine base at BDJF have set an example that was adopted by AIOC as overall key performance indicators for other related contractors. These HSE achievements reflect the dedication of all our employees to the best industry practices for which McDermott is known."

Background Information:

McDermott Caspian Contractors, Inc. (McDermott) 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, McDermott 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, McDermott also significantly upgraded and modernized the pipelay barge Israfil Huseynov (PLBG) and the diving support vessel Tofik Ismaylov (DSV) free-issued to McDermott by AIOC through their Charter Party Agreement with State Oil Company of the Azerbaijan Republic (SOCAR).

McDermott Caspian Contractors, Inc. 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