J Ray McDermott (J Ray) has been awarded a seven-year project by Saudi Aramco to provide engineering, procurement, construction, and installation for the Offshore Maintain Potential Programme in Saudi Arabia.

The project is known in the industry as the "Long Term Agreement" or "LTA".

"We have worked in Saudi Arabia and the Middle East for more than 45 years, and this is the largest project we've ever undertaken for Saudi Aramco," said J Ray chief executive officer Bob Deason.

"Saudi Arabia has significant plans to increase oil production to meet the world's rapidly growing energy demand and our contribution in developing the facilities under the LTA will play a vital role in helping Saudi Aramco meet that commitment."

The LTA project consists of several packages that will be awarded over the coming years.

The first package consists of 13 jackets, 11 decks and one tie-in platform.

In this first package, J Ray will procure and construct over 17,500 metric tonnes of structures at its Jebel Ali facility that will be installed in water depths of 14 metres through 55 metres.

In addition, the company will install 12 pipelines totalling 70 km in length and six subsea cables totaling 53 km.

All work will be performed by J Ray's marine vessels in the Zuluf, Safaniya, Marjan, and Karan fields, offshore Saudi Arabia.

J Ray's scope under the first package is scheduled for completion by 2009.

Subsequent packages under the LTA will be confirmed over the coming years on an annual basis as Saudi Aramco finalises their development plans and budget allocations.

McDermott is an engineering and construction company, with specialty manufacturing and service capabilities, focused on energy infrastructure.

McDermott's customers are predominantly utilities and other power generators, major and national oil companies, and the US Government.

With its global operations, McDermott operates in over 20 countries with more than 20,000 employees, and can be found on the internet at mcdermott.com. TradeArabia News Service