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J. Ray McDermott Invests $12 Million in Upgrade

Maritime Activity Reports, Inc.

August 20, 1999

J. Ray McDermott is investing $12 million to upgrade a dynamically positioned offshore derrick barge with a package of improvements that will provide the vessel with greater flexibility in deepwater operations, said Gary W. Drinkwater, senior vice-president and group executive, Western Hemisphere. “Derrick Barge 16 will be capable of a multitude of offshore installation options, especially in the deepwater market fields, where much of today’s exploration and drilling activity is occurring,” said Drinkwater. “This investment will result in unique physical improvements to the barge itself, which will increase the overall capabilities of our fleet of work vessels.” DB 16’s dynamically positioning system will be upgraded to a DPS-2 rating. The ABS classification of a DPS-2 rating indicates a more sophisticated system, which allows for redundancy. The four 2,000 hp, full azimuth thrusters will provide the 400 x 100 ft. work platform with exceptional station-keeping abilities. With this upgrade, DB 16 and the company’s DB 50 will possess DPS-2 systems. For pipeline and subsea projects, newly refurbished DB 16 will be able to perform umbilical installation and change modes to install flexibile flowlines in a short-time period. The 860/600 short ton revolving crane allows for the change-out of equipment at sea, and will be equipped with underwater block capabilities for manifold and template installation. The transformation required to install mooring systems can also be done quickly with the highly portable equipment systems on board. The newly upgraded DPS enhances DB 16’s ability to install coiled tubing and reeled pipe. In addition, the dynamically positioning capability will minimize set-up time, when performing traditional derrick barge work. The work will be performed at the Talleres Navales del Golfo, S.A. del C.V. (TNG) Shipyard, a subsidiary of J. Ray McDermott, S.A. The TNG yard is located on the Gulf of Mexico at Veracruz, Mexico’s largest and busiest port. Sea Trials are scheduled to be completed by November, 1999.

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