McDermott to build FPSO in Gulf of Mexico

Murphy Exploration & Production Company has awarded a contract to J. Ray McDermott Inc., a subsidiary of McDermott International Inc., to construct a Floating Production System for the Front Runner Project. Murphy operates the project and owns 37.5% with partners Dominion Exploration & Production Inc., a subsidiary of Dominion and Spinnaker Exploration Company. SparTEC Inc., a wholly owned subsidiary of J. Ray McDermott Inc., will be the general contractor responsible for the engineering, procurement, construction and installation (EPCI) of the Spar. The Front Runner partners have approved a plan for the development of the area utilising a truss spar type floating production system. The spar will have the capability of handling 60,000 barrels of crude oil and 110 million cubic feet of natural gas per day. The project partners continue to evaluate export pipeline options. Targeted first production for the project is first half of 2004. The Front Runner Project is located in 3500 feet of water on Green Canyon Blocks 338 and 339 in the Central Gulf of Mexico, approximately 135 miles SSE of Houma, Louisiana. The initial discovery well reached a total depth of 22,925 feet in March 2001.

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