J Ray McDermott has announced it will upgrade crude gathering and power supply facilities in Saudi Arabia’s Safaniya field following a multi-faceted project granted it by Saudi Aramco.

The facility and infrastructure upgrade and electrification project will help sustain the crude programme production to meet Saudi Aramco’s Maximum Sustainable Capacity (MSC) targets for the field by 2013.

The work includes a new STP-20 tie-in platform with 6,000 tonne topsides, a new electrical deck module for the existing STP-18 platform, a 53-km, 42-inch trunk line, four new in-field lateral flowlines and valve skids, a total of 156 km of subsea electrical cable, the modification and electrification of nine exisiting wellhead platforms, including new electrical control and communications system to integrate the new facilites with existing equipment.

Stewart Mitchell, J Ray McDermott’s vice president and general manager for the Middle East and India, said, “Innovative engineering, use of the latest marine installation assets and our long history and understanding of the requirements of Saudi Aramco meant that we developed an execution strategy to deliver the quality product that the company demands.

Saudi Aramco has continuously employed ground-breaking methods and technology for the electrification of the Safaniya field, (including the laying of the largest power cables ever in the region), and normal engineering and installation practices were not sufficient to meet the need.”

Mitchell added, “The multi-faceted nature of this project will allow J Ray McDermott to demonstrate its full skill set, from design development, detailed engineering, worldwide procurement, fabrication of new facilities, installation of platforms, pipelines and cables, as well as brownfield modifications to existing facilities all from its regional headquarters in Jebel Ali and in conjunction with its partners in McDermott Arabia Construction Limited.”

J Ray has been successfully executing Maintain Potential Projects for Saudi Aramco in the Berri, Marjan, Zuluf, Abu-Safah and Safaniya fields since the early 1980s. Steve Johnson, the new president and CEO of J Ray, said, “We take great pride in being selected by Saudi Aramco to execute this most complex and demanding of projects. We look forward to the challenges that it brings, further enhancing the bond between Saudi Aramco and J Ray McDermott.”

Mobilisation for engineering and design began in April with contract completion expected in 2013.

Platform structures
In another development, a platform structure from J Ray McDermott’s fabrication yard in Dubai is now in Qatar where it will produce natural gas for the Pearl Gas to Liquids project.

Another platform structure will later leave for Qatari waters to serve in the same project.   

The Pearl 1 topside structure has a lift weight of 1,840 tonnes, as much as 800 Toyota Landcruisers, and is the size of a 10-storey office building. It was transported to Qatari waters by barge. Once there, the structure was lifted on top of a platform jacket, or legs, which is already fixed to the sea-bed over the North Field in a water depth of about 36 m.

The Pearl 1 topside was skidded on to the barge using mechanical winches which pulled the topside onto the barge deck in a half-day operation. The topside was then securely fastened to the barge to ensure stability during sea towing operations.

The fabrication industry is expecting a new wave of rig-building activity

The topside has five decks of production, control and testing equipment, including 90 km of control and power cables within the structure. This facility will be connected to 11 wells drilled into the natural gas reservoir deep below the sea bed. In normal operation Pearl 1 will be unmanned, with crew visiting by boat for maintenance. All processing of the natural gas will be conducted onshore.

Vietnam contract
J Ray McDermott announced today that its subsidiary J Ray McDermott Far East, Inc has been awarded a transportation and installation contract by PTSC Mechanical & Construction Company Limited (PTSC) for the Te Giac Trang (TGT) field development project, offshore Vietnam.

“This is the second contract that J Ray has won in Vietnam this year,” said Johnson.  “We are pleased that J Ray’s strong marine capabilities and extensive offshore construction experience in Vietnam have positioned us to win this project. This award further solidifies and acknowledges the long relationship we have with PTSC.”

The scope of work includes transportation and installation of two wellhead platform jackets, topsides (including two drill decks, a main deck and helideck/electrical house), infield pipelines (including tie-spools and one pin-piled pipeline end manifold), and a subsea isolation valve.

Work is expected to start in the third quarter of 2010.

The TGT oilfield is located in the northern part of Block 16-1 offshore Vietnam, around 100 km southeast of Vung Tau City in a water depth of approximately 45 m, and is operated by Hoang Long Joint Operating Co.
 
India venture
In another development linked to the McDermott Group, construction and engineering company McDermott International Inc. said it had formed a joint venture to supply equipment for the Indian electricity generation market.

McDermott said its power generation subsidiary, Babcock & Wilcox Co, formed the venture with India’s Thermax Ltd. The venture will be based in the Indian city of Pune, which is in the state of Maharashtra. Babcock will also license its technology to the venture.

Babcock & Wilcox will own a 49 per cent share of the joint venture while Thermax will own 51 per cent.

The joint venture will be able to engineer, manufacture and manage large power projects for the Indian power sector. As part of the agreement, the partners will also build a new pressure parts fabrication facility in India.