McDermott Arabia wins Saudi deal

20-05-02 McDermott Arabia has been awarded a turnkey contract by Al Khafji Joint Operations, to install a submarine cable and two substations at existing facilities in the Al Khafji oil field. McDermott Arabia is a subsidiary of J. Ray McDermott, while Al Khafji Joint Operations is a venture between Aramco Gulf Operations Co (AGOC) and Arabian Oil Co (AOC).

The project involves detailed Engineering, Procurement, Construction and Installation (EPCI) of a new 42 km, 40 kV power transmission system, from an existing gas-gathering station 40 km offshore, to an existing onshore power plant.
Two additional substations will be installed at the onshore site and at the offshore gathering station. A new utility platform will be constructed and installed to accommodate the offshore substation.
"J. Ray McDermott and AOC have been working together in the Al Khafji field since the early 1960s," said Kurt Nelson, vice-president and general manager of J. Ray McDermott's Eastern Hemisphere operations. "We have completed over 90 % of all offshore construction and installation projects for AOC in the Neutral Zone."

Design engineering has been kicked-off and actual fabrication will begin in December at J. Ray McDermott's Jebel Ali yard in Dubai, with offshore installation scheduled for late summer 2003. The company will also carry out the necessary hook-up and commissioning work at both substations to enable power to be transmitted from the onshore power station to the offshore oil production facilities.