J. Ray McDermott receives US$5 million bonus from Belanak FPSO project

Houston-based engineering company McDermott International Inc said Wednesday its subsidiary J. Ray McDermott had receipt a bonus payment of approximately US$5 million related to the Belanak FPSO project as a result of its customer obtaining "first oil" as defined in the contract.

Earlier, J. Ray?s Asia Pacific operations PT McDermott (PTMI), PT Brown and Root Indonesia (PTBRI) and ConocoPhillips Indonesia (COPI) agreed that PTMI will receive compensation for historic entitlements that requires the goal of 1st oil from Belanak field offshore Natuna islands in December 2004.

COPI started the crude oil and condensate production (crude production) from the field on December 2, 2004. Currently the field is producing at rates between 17,000 barrels per day (bpd) and 50,000 bpd.

PTMI?s yard on Batam island began work on the Belanak Natuna FPSO Project in March 2002. The company completed the fabrication and integration of the Asia Pacific?s first liquefied petroleum gas (LPG) FPSO in October 2004. On completion over 9.2 million manhours were spent without a Lost Time Incident.

PTMI also participated in the development of the Belanak field as an EPCI contractor for two wellhead platforms and associated pipelines and subsea pipeline end manifolds. (Robert)