J.

RayNEWS
2009
2nd
Quarter6
MAY
2009
VOLUME

AN OFFIC IAL PU B LICATION OF J. RAY McDER MOTT, S.A.

Special Focus

Bright Ideas

Innovation
Innovation sparks
sparks change
change and
and improvement
improvement

Great
Great

Depths

Diving
Divingdivision
divisionblends
blendsman,
man,
nature
natureand
andtechnology
technology

Brazil:

Carnival of life
Exotic
Exoticbeauty,
beauty, extensive
extensiveresources,
resources,
exuberant
exuberantculture
cultureand
andengaging
engagingpeople
people

Scheduling Certainty

from concept to commissioning

2009 J. Ray McDermott, S.A.

jraymcdermott.com

Welcome word

Letter from Bob Deason

Legendary marketing scholar and former Harvard Business Review editor, the late
Theodore Levitt, once said, Just as energy is the basis of life itself, and ideas the source
of innovation, so is innovation the vital spark of all human change, improvement and
progress.
In this J. Ray News we highlight some of the innovations that have sparked J. Rays pursuit for continuous improvement in meeting customer and stakeholder obligations and
commitments, in both shallow- and deepwater markets.
Also in the spirit of continuous improvement, we share our experience and expertise in
realizing field development infrastructure. Getting it right explores how construction
strategies can be improved through early planning and a disciplined, rigorous approach.
In the Middle East we are pleased to report the significant award of additional work
offshore Saudi Arabia, and that at 2008s fourth quarter close, the companys backlog
remained at near record levels.
President and Chief Executive Officer
of J. Ray McDermott

For the year ending December 31, 2008, our parent company reported consolidated revenues of $6.6 billion, with an operating income of $569.9 million and net income of $429.3
million, the second-best year for net income in the companys history.
As we strive to fulfill our customer, corporate and investor commitments, we also strive to
fulfill our social responsibilities. Our annual golf tournaments in both Dubai and Batam
Island were supported by record numbers of golfers and sponsors, allowing us to raise
more than US$130,000 for local Middle East charities, and a record-setting US$307,000, for
the humanitarian activities we coordinate throughout Batam Island despite a depressed
global economy.
Fulfilling commitments through living our values sometimes means we are rewarded for
them too. I am proud that our Asia Pacific Arthit Process Platform project team was recognized by PTT Exploration and Production Public Company Limiteds 2008 Best Safety
Performance Award for its proactive and professional commitment to HSES excellence,
with more than six million man hours LTI-free.
This dedication and perseverance is what helps position J. Ray for continued success,
and I have been proud to serve at its helm for nearly six years. In March I announced my
intent to retire effective the end of 2009. Until then I will continue to work aggressively to
further position this company to the next level of global business leadership, and work to
ensure a smooth and seamless transition to new management.
2009 brings many uncertainties in our industry, but J. Ray is well-placed to weather this
period. We have a strong backlog and balance sheet, and a solid reputation of delivering excellence for our customers. We regard these challenging times as an opportunity to
further build J. Ray.

jraymcdermott.com

J. Ray NEWS 1

J.RayNEWS

34

an official publication of J. Ray McDermott

May 2009 Volume 6

Editor-in-Chief
Managing Editor
Production Manager
Production Designer

Louise Denly
Cathy Schmermund
Patrick Bradford
Chris Reyes

Contributing Editors

Quay Evano
Angela Herbert
Eddie Keels
Gulia Taghiyeva
Annie Tan
Germaine Yong

Contributing Writer

Cynthia Kincaid
Mike Robinson

Contributing Photographers

Robert Garvey
Paul Howell

Distribution

Jennifer Huse

Production
On the cover

Southwest Precision Printers, L.P.

Feathers are used in making costumes,
masks and headdresses for Brazils many
celebratory festivals and carnivals as a
symbol of the ability of humans to rise
above problems, pains, heartbreaks and
illness to be reborn and grow spiritually.

Photo Credit: Ostill

Comments or Questions

TABLE OF CONTENTS
1

LETTER: Bob Deason, President and CEO of J. Ray McDermott

ENERGY EVENTS: Events heating up the oil and gas

industry this season

PIPELINE: J. Ray makes the headlines

FINANCIAL OVERVIEW: Latest quarterly results

jraynews@mcdermott.com

10

BUSINESS:
Getting it right: Construction strategies for offshore field
development infrastructure

14
2 J. Ray NEWS

jraymcdermott.com

CONTACTS
Headquarters |

20

Features
14

Department: Diving to great depths

20

SPECIAL FOCUS
bright ideas, inspired execution:
Innovation, optimization and renovation continuously
improve

34

(1) 281 870-5000

bob deason, President & Chief Executive Officer
rdeason@mcdermott.com
john nesser, Executive VP & Chief Operating Officer
jtnesser@mcdermott.com
bill robinson, Senior VP, Sales, Marketing & Strategic Planning
wrrobinson@mcdermott.com
jack mccormack, Senior VP, Operations - Asia Pacific, Caspian,
Middle East & India, Marine, Global Equipment & Machinery
jmccormack@mcdermott.com
Dave Roquemore, Senior VP, Operations - Americas, Subsea,
Global Project Services, Engineering, Secunda
dproquemore@mcdermott.com
steve roll, Vice President Global Sales
sroll@mcdermott.com
bill pender, Vice President, Global Project Services
wjpender@mcdermott.com
bill soester, Vice President, Engineering
bsoester@mcdermott.com
steve bertone, Vice President & GM, Worldwide Marine Operations
sbertone@mcdermott.com
Bruce Crager, Vice President, Subsea
bcrager@mcdermott.com
lisa seeker, Vice President, HR & Organizational Development
lmseeker@mcdermott.com
Tim Chetwynd, Global Director, HSES
tchetwynd@mcdermott.com

atlantic basin |

(1) 281 870-5000

bruce legros, Vice President & GM Americas
rblegros@mcdermott.com
Paul Cannatella, General Manager-Atlantic Basin Sales &
Business Development
pacannatella@mcdermott.com

middle east & india |

(971) 4 883-5200
Stewart Mitchell, Vice President & GM Middle East and India
smitchell@mcdermott.com
peter marler, Vice President & GM, Business Development
pmarler@mcdermott.com

Area Focus: Exotic beauty, extensive resources,

exuberant culture and engaging people reflect the
essence of Brazil

caspian |

(994) 12 444-9944
dan houser, Vice President & GM, Caspian
dmhouser@mcdermott.com
thomas orr, General Manager, Sales & Marketing
torr@mcdermott.com

asia pacific |

6
jraymcdermott.com

(65) 6561-2288
scott cummins, Vice President & GM, Asia Pacific
scummins@mcdermott.com
Tony Hodgkins, General Manager, Business Development
thodgkins@mcdermott.com

J. Ray NEWS 3

Calendar

Energy Events 2009

Upcoming energy events around the world

AFRICA

ASIA PACIFIC

EUROPE

Africa Energy Week

July 6-9
Cape Town International Convention Centre
Cape Town, Africa
This event provides four days of business, networking and negotiations with everyone who
matters in Africas oil and gas industry.

Australian Production & Exploration

Association Conference & Exhibition
May 31-June 1
Darwin Convention Centre,
Darwin, the Northern Territory, Australia
Recognized as Australias leading oil and
gas industry event, APPEA provides knowledge-sharing, networking and business
opportunities.

9th Annual CIS Oil & Gas Summit

May 27-29
Le Meridien Etoile Hotel
Paris, France
This strategic and market-driven event focuses
on vital topics, first-hand updates and opportunities in the oil and gas industries of Russia
and the Caspian region.

AMERICAS
Oil & Gas Outlook Brazil 2009
May 11-13
Sheraton Rio Hotel & Resort
Rio de Janeiro, Brazil
This conference unites industry executives to
discuss current activities and opportunities in
the countrys oil and gas market.
International Conference on Offshore
Mechanics and Arctic Engineering (OMAE)
May 31 - June 5
Sheraton Waikiki Hotel
Honolulu, Hawaii, USA
The 28th annual event provides a forum for
exchanging ideas and experience, while
promoting technological progress and international cooperation.
Global Petroleum Show
June 9-11
Stampede Park
Calgary, Alberta, Canada
In its 20th year, this event is renowned for its
presentation of the latest technology in offshore and onshore exploration, production
and transportation.
International Oil Congress & Exhibition
(EXPETRO 2009)
June 10-14
World Trade Centre
Boca del Rio, Veracruz, Mexico
This event showcases technological innovations, and a wide range of disciplines and
topics to help delegates establish or increase
presence in the Mexican oil and gas market.

4 J. Ray NEWS

Asian Oil, Gas & Petroleum Engineering

Exhibition
June 10-12
Kuala Lampur Convention Centre,
Kuala Lampur, Malaysia
This conference provides a platform for showcasing the latest technologies, products and
services, as well as networking.
International Society of Offshore and Polar
Engineers Conference
June 21-26
Osaka International Convention Center
Osaka, Japan
The 19th ISOPE will feature papers from 50
countries at more than 125 sessions that promote and improve technological progress.

CENTRAL ASIA
Uzbekistan International Oil & Gas
Exhibition and Conference
May 12-14
UzExpocentre
Tashkent, Uzbekistan
This event highlights new opportunities in the
countrys oil and gas sector and all-important
networking with key industry figures.
Caspian Oil & Gas Exhibition & Conference
June 2-5
Heydar Aliyev Sport and Exhibition Complex
Baku, Azerbaijan
The magnetic pull of the countrys energy
infrastructure is evident at this largest exhibition in the Caspian region.

Subsea Forum
May 28-29
Prospero House
London, England
Bringing together key representatives from
the oil and gas, engineering and offshore vessel sectors, this conference focuses on both
strategic and technical issues.
Floating Production in Challenging
Environments
June 17-19
Holmen Fjordhotel
Oslo, Norway
This conference covers markets and trends,
field developments, regulation and requirements, operational challenges, technology
developments and operational experiences.

MIDDLE EAST & INDIA

Mideast Oil Week 2009
May18-20
Jumeirah Mina ASalam Hotel
Dubai, UAE
Speakers and delegates from leading
governments, national oil companies and corporations of the region and around the world
meet for a strategy briefing and conference.

RUSSIA
Moscow International Oil & Gas Exhibition
June 23-26
Expocentre on Krasnaya Presnya
Moscow, Russia
MIOGE, which includes the Russian Petroleum
& Gas Congress, is a high-profile strategic business conference.

jraymcdermott.com

Securing Productivity
from seafloor to shore

jraymcdermott.com

2009 J. Ray J.McDermott,

Ray NEWS S.A.
5

pipeline

J . R AY McDERMOTT

makes headlines across the globe

Karan Prize
J. Ray was awarded the Karan Offshore
Platforms and Subsea Pipelines project by Saudi Aramco. The project involves
work in Saudi Arabia itself and outside the
Kingdom.Once completed, the facility will
have a production capacity of 1,800 mmscfd
of raw sour Khuff gas.
This significant project comprises four wellhead complexes each of which has a platform
topside with gas, chemical injection and controls facilities, as well as a bridge connected
auxiliary platform, associated flare bridges
and stacks. The four wellhead complexes are
clustered around a tie-in platform with similar facilities. The project also includes intrafield
pipelines and 68-mile trunkline to the shore
and all subsea power distribution cables.
The fabrication scope amounts to topsides
and jackets weighing a total of 29,760 tons
and will utilize J. Rays new cladding facility in
Jebel Ali. With its state-of-the-art computerized vertical and horizontal cladding systems,
it is capable of welding high integrity corrosion resistant alloys. J. Ray will also perform all
of the offshore installation work.

retirement Plans
Robert (Bob) A. Deason, Chief Executive
Officer for J. Ray McDermott, has announced
his plans to retire from the Company effective December 31, 2009. He will continue his
leadership of the organization through his
departure date, or until a successor is named.
John Fees, Chief Executive Officer for
McDermott International, Inc., in acknowledging Bobs decision commented that Bobs
planned year-end retirement is bittersweet
for us since we are extremely pleased for Bob
and his family, but the Company will most
certainly miss the leadership and many milestones achieved by the organization during
Bobs tenure with the Company. Under Bobs
leadership, J. Ray McDermott has grown into
one of the premier engineering and construction companies serving offshore oil and gas
globally.
6 J. Ray NEWS

Construction of the Maloob-C drilling platform nears completion at J. Rays Altamira, Mexico facility.

MEXICO CELEBRATION
J. Rays Altamira , Mexico fabrication facility hosted a ceremony commemorating the
upcoming completion of the Maloob-C project for PEMEX Exploracin y Produccin.
Representatives from the local government,
area businesses, J. Ray and PEMEX attended.
Honored guests included: Eugenio
Hernandez, Governor of Tamaulipas;
Hector Villarreal, Mayor of Altamira; Alfredo
Gonzalez, Economy Minister of Tamaulipas;
Alejandro Gochicoa, General Director of the
Altamira Port; Jose Orozco, Projects Manager,
for PEMEX, North Region; and Juan Manuel
Pineda, General Manager of J. Rays Mexico
operations.
Maloob-C is the first project for the
Altamira facility. Work on the drilling platform, to be located in 216 feet of water in the
Bay of Campeche, began in February 2008.
Fabrication of the two-level, 2,535-ton deck;
the 3,527-ton jacket; helideck and all required
appurtenances; factory testing, onshore precommissioning and operational tests; load
out and sea fastening are all being performed
at Altamira.
The platform is designed to sustain 18

wells. Oil production will require gas lift at

first stage and electro centrifugal or multiphase pumping systems will be utilized on
future stages. Production will be sent to the
drilling platform for separation. The objective is to increase oil and gas production
of Ku-Maloob-Zaap field in Mexicos Bay of
Campeche.
Sail away of both the deck and jacket is
expected to take place this summer.

Saudi Success
J. Ray was awarded additional work under
the Long-Term Agreement (LTA) with Saudi
Aramco.
This latest project, which is expected to
continue through 2010, consists of the procurement, fabrication and installation of three
decks, jackets, associated pipelines, and the
installation of three new shallow water crude
oil pipelines, totaling 9.3 miles in length, in
the South Safaniya oil field, offshore Saudi
Arabia. The pipelines will divert crude oil production flow from three existing platforms to
other facilities before reaching the Safaniya
onshore Gas Oil Separator Plant.
Other recently awarded Saudi Aramco work
jraymcdermott.com

North Belut CPP topsides is more than 95 percent complete.

under the LTA includes the procurement, fabrication and installation of a jacket and deck
for the Berri field and a four-pile jacket in the
Karan field, offshore Saudi Arabia.

Sail-away Focused
In its third year under construction at Batam
Island fabrication facility, North Belut CPP topsides is now more than 95 percent complete
and continues to make significant progress.
Nearly all of the critical systems are mechanically complete, and focus has shifted to
pre-commissioning and commissioning of the
topsides through a joint customer and J. Ray
team. The integrated commissioning team
meets the need for effective coordination
between all vendors, subcontractors, customer and J. Ray personnel to safely execute
the work under a strict Permit to Work system.
With the essential utility systems fully commissioned, testing has commenced on other
complex process systems, as well as preparing
for final weighing of the topsides to determine
its actual centre of gravity.
The total float over weight of CPP deck and
deck support frame is expected to be approximately 16,865 tons.
jraymcdermott.com

Once the platform is offshore and safely

installed, hook-up and commissioning will
take place using an integrated team process.
The one team one goal philosophy continues to guide the teams as they overcome the
last of the challenges of this large project.

Record fund raising in batam

The eighth-annual Batam International
Charity Bash (BICB) held March 5-6 on Batam
Island, Indonesia, raised a record US$307,000.
Sponsorships and donations exceeded all
other years in spite of current challenging economic times.
Since its humble beginnings in 2002, the
Batam Charity Bash has raised a cumulative
total of more than US$1.26 million. All proceeds are conscientiously administered by the
Batam International Charity Committee. This
is comprised of staff volunteers from J. Rays
Batam office, who seek input from the orphanages Headmasters and other local community
leaders. Funds are utilized to carry out humanitarian and philanthropic activities in and
around Batam Island.
BICB, organized by J. Ray staff, is a two-day
event starting with a cocktail evening one day

More than 375 children from eight orphanages on

Batam Island enjoyed a day of fun organized and
hosted by J. Rays BICC.

and a golf tournament the next day. Funds are

raised from sponsorships, auctions and generous donations.

dubai tees off for charity

A record 144 players took part in the annual
Dubai Charity Golf Classic hosted by J. Ray in
the Middle East. More than US$130,000 was
raised through the event for three charities:
Mowgli Foundation, a pioneering mentoring
foundation that supports and grows entrepreneurs worldwide; Breast Cancer Research; and
Dubai Centre for Special Needs.

Safety Excellence
J. Ray management, supervisory staff and
personnel in Asia Pacific were rewarded for
their proactive and professional commitment
to Health, Safety, Environment and Security
excellence.
The PTT Exploration and Production Public
Company Limited (PTTEP) 2008 Best Safety
Performance Award was presented to the
group for work undertaken during the 18,739ton Arthit Process Platform project, with more
than six million man hours free of Lost Time
Incidents.
(Continued, next page)
J. Ray NEWS 7

Pipeline (Contd)
The award is a testament to the dedication of all involved from J. Ray and PTTEP, and
proof that flawless execution is possible with
crystal clarity, leadership, refined processes
and relentless pursuit of a common goal to
deliver safety excellence. Notable achievements on this project have become global
best practices within the J. Ray organization.

Project Progress
The EPCI Qatargas 3 (QG3) and Qatargas 4
(QG4) Offshore Facilities project in the North
Field, Qatar was won by J. Ray McDermott
Middle East Limited. The projects three normally un-manned wellhead natural gas
platforms were constructed at the Jebel Ali
fabrication facility in Dubai. Each platform
was designed for a maximum flow rate of
1650mmscfd. The gas is exported to the QG3
and QG4 onshore LNG facilities via two multiphase 38-inch pipelines.

General view of decks: The three QG3 & QG4 decks in advance stages of completion. WHP7 (deck
nearest the quay) is nearly complete and ready for load-out.

Financial Overview
J. Ray McDermotts parent company
McDermott International, Inc. posted fourthquarter 2008 results, which generally came
in at the upper end of the pre-announced
range from early February 2009. Although
not satisfied with the consolidated results
for the second half of 2008, the company is
pleased that McDermotts backlog remained
near record levels. The industries McDermott
serves continue to have demand for company offerings, with its liquidity position at
year end providing continued financial flexibility and consolidated bookings and bids
remaining robust. While recognizing the
overall business environment remains in
flux, McDermott remains well-positioned to
weather the challenges.
McDermotts revenues in the fourth quarter of 2008 were $1,664.5 million, an increase
of 9.1 percent compared to $1,526 million in
the corresponding 2007 period. The $138.5
million growth in revenues was the result
of 15.7 percent and 13.1 percent increases
in the Offshore Oil & Gas Construction
and Government Operations segments,
respectively.
Operating income for McDermott was $89.7
million in the 2008 fourth quarter, compared
to $186.8 million in the 2007 fourth quarter.
As previously announced, the 2008 fourth
8 J. Ray NEWS

quarter included approximately $50 million

of certain net expenses from the Offshore Oil
& Gas Construction and Power Generation
Systems segments.
At December 31, 2008, McDermotts consolidated backlog was $9.8 billion, compared
to $9.8 billion at December 31, 2007, and $9.4
billion at September 30, 2008. J. Rays backlog was $4.5 billion, compared to $4.8 billion
and $5 billion at December 31, 2007 and
September 30, 2008, respectively.
J. Ray McDermott revenues in the Offshore
Oil and Gas Construction segment were
$848.3 million in the 2008 fourth quarter,
compared to $733.3 million for the same
period a year ago. The year-over-year growth
in revenues resulted from increased activities
in the Middle East, Asia Pacific and Americas
regions, partially offset by reduced activities
in the Caspian region.
J. Rays operating income for the 2008
fourth quarter was $14.9 million, compared
to $100.0 million in the 2007 fourth quarter. As previously disclosed, the 2008 fourth
quarter includes approximately $70 million
of incurred and expected cost increases recognized during the period on certain Middle
East pipeline projects and other procured
items, partially offset by a $36 million benefit
from the resolution of an outstanding claim.

For the year-ended December 31, 2008,

McDermott International reported consolidated revenues of $6.6 billion, producing
operating income of $569.9 million and net
income of $429.3 million, or $1.86 per diluted
share, the second-best year for net income in
McDermotts history.

= 2007

= 2008
jraymcdermott.com

Integrating Complexity

from upstream to downstream

jraymcdermott.com

2009 J. Ray McDermott, S.A.

Business

Gettingit
it Right
Getting
right
Construction strategies for offshore field development
infrastructure require early planning, and a disciplined
and rigorous approach to working the plan.

ver the last six decades J. Ray McDermott has developed a standard set of solutions for constructing
conventional facilities, that is to say fixed, bottomfounded structures. As the industry continues to push
into deeper waters and more remote locations, this classic steel
jacket and deck option is often no longer viable. For deepwater
facilities, there is no standard set of solutions and construction
strategies require more investigation, analysis, planning, compromise and risk management because of their complexity and higher
development costs that can run in the billions of dollars.
Despite todays economic climate, industry reports indicate the
deepwater market will be the fastest-growing segment of the offshore business.

Project optimization and careful planning

Whether setting out to develop a conventional, shallow-water field
or a remote deepwater reservoir. It is imperative that the project
team familiarizes itself with all aspects of the prospective projects
environment and dials the issues and constraints into the construction strategy, budget and schedule as early as possible.
The greatest opportunity to influence project success through
cost-, schedule-, or technical-assurance is to start execution planning early to address key issues and constraints. Once a project is
in the Design and Construction phase, the opportunity to get it
right is severely diminished.
Operators and contractors alike must bring as much expertise as
possible into early decision making and planning. Without experience and expertise, the project risk profile significantly rises.

Issues & constraints

Several key issues must be addressed in building a robust, reliable
construction strategy for any field development, but especially
deepwater developments.

10 J. Ray NEWS

Technology selection
To achieve optimum reservoir production, the technology required to
develop a field must be carefully considered. In deeper water, issues
ranging from water depth to reservoir characteristics influence the
optimum solution for a given field.
For shallow water the solution is typically a steel-jacket and topsides with a dry tree or occasionally subsea tie-back. Deepwater
solutions include towers, various hull shapes and subsea tiebacks,
including Compliant Towers, Spars, Tension Leg Platforms (TLPs), SemiSubmersibles, Floating Production Storage Offloading facilities (FPSOs)
with dry-tree and wet-tree wellheads.
Once the technology is selected, the construction strategy must deal
with the resulting constraints, such as fabrication yard location and
installation vessel selection. Schedule, construct-ability and installability challenges must also be considered to ensure a manageable
construction campaign.
Whether influenced by field characteristics or construction constraints, the selected technology is probably the single largest driver in
setting the basis of the construction strategy.
Limited contractors
There are more qualified contractors with the ability to design and
build conventional platforms for developing energy reserves from
shallow water fields, than there are for the younger and less mature
deepwater market. As water depths increase, the number of qualified
design teams proportionately decreases, with few having spent practical time in fabrication yards or on offshore installation vessels.
Although scarce, the expertise necessary for deepwater development projects is a key requirement for planning project execution.
Engineering, fabrication and installation resources are limited, far
flung and expensive. Coupled with a projects contracting constraints,
such issues must be identified as soon as possible and molded into an
optimum solution.

jraymcdermott.com

There are few engineering teams that possess the necessary deepwater expertise and technical excellence to design deepwater
structures and fewer fabrication yards that are truly capable of constructing them. Both are often not conveniently located in proximity
to the customers primary resource base.
Transportation distances between yards and offshore fields bring
more issues related to design, logistics, carryover work and commissioning. Suitable vessel availability has to be accounted for early in
the project concept selection phase. More vessels are available for
shallow water installation work than for deep water installation and
straight away, this raises a projects schedule and cost risks. Less than
a handful of derrick barges exist with sufficient lifting capacities for
large integrated decks, the ability to install large diameter pipelines
and risers in deep water; or capability to lower large manifolds or
other packages to great depth.
All said, the thousands of miles between engineering centers, fabrication yards and installation sites significantly influences interface
management, procurement and construction logistics. Failure to recognize and deal with these constraints early in a project life cycle
results in redesign, inefficient fabrication, and overly long and expensive installation campaigns.

Firsts-of-a-kind
The much younger deepwater industry is experiencing a growing number of firsts-of-a-kind, all of which influence construction strategy.
Increasing weights, whether lifting or lowering, require larger crane
or winch systems, or possibly float-over systems, and the use of synthetic rope for extremely deep lowering. The heavier the payload or the
deeper the installation, the greater the requirement for leading-edge
methodology and equipment.
New hull shapes, riser designs, mooring and pile systems all represent
a change from the norm, requiring a design that is cognizant of good
fabrication and installation practices.
Accommodating firsts-of-a-kind within any successful construction
strategy is imperative, and needs to be considered during a projects
pre-Front End Engineering Design (FEED) and FEED phases. These
approaches must be either manageable from a construction perspective, or modified to reflect the realities of construct-ability and
install-ability.
High probability, high impact risks
Satisfied with the viability of building and installing a particular technical solution, the risks stemming from working offshore, especially in
harsh deepwater environments, must be addressed.
Deepwater projects are complex, often geographically remote, with
hundreds of interface points, and are fraught with risks. Too often
design teams dont take these issues into consideration and they are
left for construction managers to cope with, and teams will be
spread thin and unable to promptly communicate and mitigate
issues.
During the early planning stages, when dealing with preliminary and questionable site data, the assessment of
installation risks requires experienced people who are familiar with what might be encountered and the related limits of the
installation spreads.
J. Ray NEWS 11

When mitigation cant be achieved through design, it can be

achieved through effective early planning and procedure development. Equally important is that project budget and schedule
accurately reflect the high probability/high impact risks treated by
the construction strategy. On deepwater projects, any installation
risk event that occurs will typically have a disproportionate cost and
schedule impact. The best way to prevent that is to ensure project
contingency plans and budgets are realistic.
Contracting constraints
Local content requirements, historically related to fabrication, are now
being imposed on the engineering and installation phases of a project.
Partners in a development project may have conflicting practices for
bidding and awarding work, different opinions regarding contractor
capabilities, and different priorities on schedule, quality and cost.
Production Sharing Agreements also bear on contracting strategies when they contain requirements and financial penalties for failing
to meet oil-to-market timeliness. And if a project is funded by external financing, there is another set of constraints regarding contracting,
pricing, and payments.
The key to building construction strategies that work well within
these contracting boundaries is identifying the specifics related to each
of these constraints early in a project no later than during the FEED
phase. When planning occurs early in the project life cycle, these issues
are manageable.
Risk tolerance
Typically, there are four key commitments that are made when executing a project: Health, Safety and the Environment and Quality,
which are usually corporate-level requirements; and Schedule and
Cost project-specific commitments that are made when project sanction is requested. Any problems that arise during execution will create
huge challenges to fulfilling these promises.
To devise a construction strategy that supports meeting these commitments, specific execution-related risks must be fully understood,
plenty of lead time prior to project sanction must be provided, and
access to the right resources is required. Avoidance of cost escalations
and schedule delays regardless of water depth are also imperative.
In all cases, a good construction strategy reflects a sound risk assessment. The best approach is to start performing formal assessments
early, engaging with the right people, in order to create viable and
realistic risk mitigation and management plans.

The right construction strategy

One of the most important aspects of building a construction strategy
is to start the planning process very early in the project life cycle.

Assess
Feasibility
Study
12 J. Ray NEWS

Assess: Is it Feasible?
During a projects early phase, one of the first steps is to establish
whether or not it is economically feasible to develop the field in question. A variety of inputs are valuable in making this decision, including
information on the fields environmental challenges and geological
conditions. Other factors to research and consider are the availability of technology to enable optimum field development; if the facility
can be practically built and installed; and identification of the product
export options, contracting constraints, risk issues and their manageability. Ultimately, reviewing these inputs will enable an assessment
of how much it will all cost.
It is also prudent to take time to examine the available contractor
resource base and engage with contractors early in the planning process. Projects are more apt to become economical successes when the
Engineering, Procurement, Construction, Installation activities are well
understood and priced using real market data. Through the process of
drafting the execution plan, many of these important questions will
be identified, putting the prospect on sound footing when seeking
approval from the gate keeper to proceed to the next phase.
Select: Choose the right concept
Once the gate keeper has approved a project to enter the Concept
Selection Phase, there is stronger emphasis on getting it right.
With a tentative thumbs up from the feasibility study, the project team will be charged with identifying the most appropriate field
development solution, and ensuring that the economics work.
This phase benefits from putting all the issues and constraints on
the table for discussion:
Firsts-of-a-kind involved and their expected development and
execution costs
Local content requirements and their impact on cost and schedule
for competing solutions
Resources available to execute each solution and how that influences the selection of the concept
Risk amounts assigned to each competing solution and how the
cost estimates and execution plans compare
Whether or not it can actually be built and installed
After reviewing all of these areas, discussion should focus on the
plans readiness to go to the gate keeper with a recommendation to
move forward with an optimum solution.
Define: Developing FEED and project specifications
The FEED phase is the point where the construction strategy is
matured. Here, project teams are truly faced with getting it right
and recommending the project for sanction with full commitment to

Select
Concept
Selection

Define
Project
Specifications
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projects goals and objectives.

Teams can develop fabrication-friendly designs by ensuring engineering and fabrication teams work together to avoid the mistakes,
such as putting a structures center of gravity in an awkward location, or layouts so compact they make pipe erection a challenge.
Installation-friendly designs that ensure realistic weight growth
allowances will avoid negating the planned transportation and
installation solution by the time detail design is complete. Also
exercise caution when considering first-of-a-kind solutions to avoid
those that seem achievable during FEED, but in reality will add millions of dollars in installation aids and upgrades.
During the FEED phase is also the time to mature the risk assessment process and determine the safety, cost and schedule impacts
from risk events.
Another important step is to understand the construction plan
and account for the necessary contingency activities and costs.
Developing accurate cost estimates and schedules requires more
than just a good technical design for the purpose of estimating
take-off quantities. For deepwater projects, take offs dont drive
estimate or schedule accuracy logistics, transportation and installation spreads, installation aids, currents, weather, hook-up and
commissioning do.
The best results come from engaging people in the FEED process
who understand and have experience in the issues to be faced during
the Execution Phase. In other words, plan the work, work the plan.
Execute: Design and construction
Finally, when all the gate keepers are satisfied, and the project is
sanctioned, it is time to deliver what has been promised, making
good on project commitments to bring production on line.
By the time a new project is sanctioned, up to three percent of
the total project value has typically been spent on surveys, borings,
studies, FEED, model testing, etc. Despite this investment, numerous
management reviews and board approvals, major projects often
need to be rescued during the Execution phase.
Unfortunately, no one is immune to being seriously impacted by
failures during this phase, such as environmental disasters, safety
incidents, contracting debacles, schedule delays, or cost overruns.
Time and again, the origins of these failures can be traced back to
inadequate planning prior to the Execute phase.
Meeting these commitments will always be easier if the project
has started with a viable and realistic execution plan. Delaying or
short-cutting the planning process is a high-risk strategy. Successful
construction strategies are born early in the life of a project.

Execute
Design &
Construction
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J. Ray NEWS 13

Department

to g r e at dep t h s
During the 1970s and 80s, with vast reserves of oil and gas being discovered
offshore, the era ushered in a whole new profession. The dawning of this
new offshore petroleum age inspired a plethora of production platforms,
pipelines and other systems to extract hydrocarbons from under the sea.
A special breed of commercial diver was needed to help install and maintain the structures moving into the waters around the world.

1814 J.
NEWS
Ray
J. Ray
NEWS

Its a unique interweave of man, nature and technology,

explained Steve MacMillan, Diving Division General Manager, about
the people and capabilities that make up J. Rays Diving group.
Under MacMillans leadership, a team of 265 divers provide a variety
of underwater support applications, such as laying pipe and cable;
cutting and welding; installing spool pieces, risers, platforms and
other structures.
Enabling these ongoing diving operations are five barges and dive
support vessels (DSVs), two boats, and two dynamically positioned
(DP) DSVs. Equipment consists of two fully operational saturation
diving systems a 12-man GM-4 SAT system currently operating on
the DSV Emerald Sea in the Middle East, and the six-man SAT-09 system also currently in the Middle East onboard DB101. Three more Det
Norske Veritas (DNV)-classed 12-man SAT systems will be added over
the next two years. Both regions also maintain nine mixed gas air
spreads, along with a large inventory of portable equipment.

Diving ways
These resources equip J. Ray with expertise and experience in the
two most recognized types of commercial diving.
Surface supplied divers are lowered into the water on a stage and
supplied with breathing air through a flexible umbilical attached to a
diving helmet or full-face diving mask. The helmet is equipped with
two-way communication capability, video camera and lights for topside support staff to monitor the divers activity.
Because of the limitless supply of breathing gas, we use surface
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supplied diving when a project calls for extended diving operations

or work in small or restricted environments, said MacMillan.
Saturation (SAT) diving allows divers to work at depths down to
1,000 feet for weeks at a time. Typically they work from a submersible
decompression chamber, better known as a diving bell, with breathing gas, communications, environment monitoring, video cameras
and electricity supplied from a diving support vessel on the surface.
After working in the water, the divers rest and live in a dry pressurized
habitat onboard a DSV or barge, which is kept at the same pressure as
the work depth.
A diving bell is a cable-suspended airtight chamber with internal
and external doors. It transports SAT divers from the support vessel
to the seabed, lowered into the water by a 32 mm non-rotating wire
from a dedicated winch. The pressure inside the bell is the same as
the pressure at the seabed, which keeps the breathing gas trapped
inside the bell. The main bell umbilical is made up of various hoses,
electrical cables, communication and video lines. The umbilical supplies breathing gas to the bell and divers, who lock out of the diving
bell and work on the seabed. It is also fitted with exterior mounted
breathing gas cylinders for emergency use. Unlike a submarine, the
diving bell is not designed to move under the control of its occupants
or to operate independently of its tether.
Saturation refers to the fact that the divers tissues have absorbed
the maximum partial pressure of gas possible for that depth because
the diver was exposed to breathing gas at that pressure for prolonged
periods, said MacMillan. Once the tissues become saturated, the
time to ascend from depth, to decompress safely, will not increase
with further exposure.
The SAT system is operated through a control room on the support
vessel, where diving depth, chamber atmosphere and other equipment controls are closely monitored. Once the divers reach their
28-day maximum stay under pressure, they are gradually decompressed by venting the system pressure at a controlled rate and
adding higher oxygen content as they ascend. Depending on the
depth at which the divers were living, this process can take upwards
of seven or eight days.
SAT diving is appropriate for long-term deep-sea projects that
might otherwise be difficult to finish using conventional air diving or
surface supplied diving techniques, added MacMillan.

Breathe right
Divers of all types risk decompression sickness (DCS) that can be
severely disabling or even fatal.
When a diver is under pressure, the body tissues absorb additional nitrogen (if air diving) or helium (if SAT diving) from the air or
gas breathed during the dive and released during ascent, explained
MacMillan. After surfacing, body tissues continue to release excess
nitrogen or helium until the level of gas dissolved in the tissues
returns to normal.
By keeping the amount of gas being absorbed and released within
acceptable limits, the risk of a serious decompression incident or DCS
is reduced. Divers have many tools at their disposal to help plan and
make dives with acceptable DCS risk levels, such as dive decompression tables and dive computers.
Continued, page 18

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J. Ray NEWS 15

Business

DIVERS Perspective
Mike Robinson, Diving Manager, Marine Division, J. Ray Asia Pacific operations, shares his wealth
of experience (28 years) in this mysterious world of commercial diving for the offshore oil and gas industry.

The lure of early commercial diving and its

rewards attracted a core of individuals who
embraced stepping into the unknown, were
not afraid to develop new skills and wished
to carve a career in an industry that was, and
still is, open to relatively few individuals. There
are probably less than 3,000 active commercial divers in the world today.
Having touched the recreational SCUBA side
of diving with an engineering background
made me a potential candidate for UK government commercial diver training during the
late 1970s. The fact that I have had a fascination with the sea my whole life and in my early
20s went off to sea with P&O as an Engineer
officer also influenced my decision to make a
career change. That training revealed a previously unknown world of skills that needed to
be acquired just to stay alive, but in no way prepared me for the real job of an offshore diver.
That would only happen once I began working
in the offshore environment and developed a
camaraderie that would shape my life.

16 J. Ray NEWS

Most people consider diving as the job. In

reality it is just a means of getting to the job,
such as welding; cutting; inspection; pipe/cable
lay; and installation of risers, spools and platforms. In fact, most of the tasks undertaken by
an offshore barge crew on the surface are done
by a single diver, who also must master the
ever more complex tools, equipment and skills,
while working underwater up to 1,000 feet
deep. Understandably, every diver is required
to pass an intensive annual physical similar to
that of an airline pilot, be fully certified for the
type of diving and qualified in such specialist
areas as inspection, medic or welding.
The personal qualities that attracted the
industry pioneers are still relevant and necessary, because no matter how physically fit
and how much training an individual receives,
he will not have a lengthy, worthwhile diving
career, without the right personality and character. Living in a 20-foot long, six-foot diameter
chamber, under pressure for 28 days with

eight other divers, takes incredible amounts of

fortitude and inner composure no matter what
the rewards are. Quite a number use the time
for self-improvement through Open University
degree courses, studying for Supervisor exams,
leisure or professional reading.
The divers lot was traditionally that of itinerant worker who paid for his own training and
moved from one company to the next every
few months based on what employment was
available, owing no loyalty to anyone. Having to
pay hefty sums out of your own pocket about
$10,000 just to get sufficient training to apply
for a job as an air diver and three times that
amount for saturation diver training tends to
ensure that the individual has thought through
his career choice and is committed.
A lot of divers attracted to the industry solely
by the financial rewards fall by the wayside
quite early in their careers as they soon discover

they are unable to function in remote areas,

interact with their peers in very close living
conditions, and perform in a job that requires
a large amount of personal initiative. While not
easily identified under normal conditions, all
these qualities are easily observed if present
when exposed to a barge or dive support vessel
environment. Also, contrary to popular belief,
a commercial diver does not normally have the
luxury of enjoying the usual underwater sights,
unless waiting for a barge crane to lower something; he is under water to work.
Another real-life aspect of pursuing a diving
career are the years of absence from home, missing important family events and watching my
children grow up. Independence is something
they have learned from my absence, as well as a
love of travel gained during my
regular efforts to concentrate
three months of missed
family life into one.

Such lengthy periods away have mostly

become a thing of the past as J. Ray tries to
ensure and encourage a balance between
family and the need to earn a living. Life offshore is a lot different in other ways at J. Ray,
where working conditions, equipment, terms
of employment and opportunities to improve
oneself have grown to such an extent that we
have a very high retention rate among our diving personnel.
Inevitably, a wish to have more input in the
planning and operations involving diving led
to my qualifying as a Bell Diving supervisor and
ultimately leaving the water to a shore-based
job more than 14 years ago. In addition to living a somewhat more normal life, it has been
very satisfying to see those divers and J. Ray
engineers whom I helped train at the beginning of their careers years ago have long and
successful careers in their own right.
Diving has taught me that the most important

quality required offshore is teamwork,

as team members quite literally hold
each others lives in their hands.
That quality spills over into learning
patience, personal discipline and living with
people from all walks of life and nationality. As
part of a barge team, the diver has a high level
of responsibility. The operating structure offshore is essentially an inverted pyramid, with
the majority of the barge crew (over 300 people) solely there to support the divers work
while he is under water.
A career in diving is a unique experience,
certainly not for the majority, and industry
developments will only make the career more
diversified and interesting.

J. Ray NEWS 17

t o g r e at d e p t h s
The risk of developing decompression sickness increases with the depth of the dive,
as pressure increases, and with the length
of time spent in a pressurized environment. Other risk factors include rapid ascent,
fatigue, exertion, dehydration and cold water.
Compressed air is not the best breathing
support for divers, especially those working in a commercial environment. Since
compressed air is composed of 79 percent nitrogen, divers can develop nitrogen
narcosis, a condition that mimics alcohol
intoxication. At even greater water depths,
the 21 percent of oxygen in air creates
Oxygen Toxicity that results in an epileptic-

Technological advances enable humans

to swim, see and breathe under water, but
there are many physical and physiological alterations to deal with in this foreign
environment.
As depth increases, the color of objects is
distorted by the absorption of ambient light
by seawater; 2,260 pounds of clear sea water
(with no suspended sediments) reduces the

18 J. Ray NEWS

like seizure.
For some diving operations, J. Ray uses
nitrox, a gaseous mixture of nitrogen and
oxygen that contains more oxygen than air.
The two most common mixtures have 32
and 36 percent oxygen by volume, versus
21 percent oxygen in compressed air. While
not drastic, this increase allows divers to
extend their bottom time at shallow depths
and decreases the risk of developing DCS.
At greater depths, a mixed gas spread
with a mixture of helium and oxygen,
known as heliox, is used. With a lower
density than nitrogen, helium is easier to breathe, does not expose divers to
the side effects of nitrogen narcosis, and
improves decompression when used during
extended submersion.
And, yes, it does make divers talk with

intensity of light by nearly 60 percent.

The spectrum of colors diminishes with
greater depth. At about 33 feet, the red end
of the spectrum completely disappears,
producing an eerie blue/green hue below
this level. Further under the ocean, orange is
filtered out next, followed by yellow, green
and then blue, until everything takes on a
grey tinge.
The refractive change of light from the
water to the eyes requires making mental adjustments for size and distance. In
general, an object under water appears to
be larger by about 33 percent than it actually is. And it seems to be positioned at a
point that is three-fourths of the actual distance between the object and the divers
faceplate. This distortion interferes with
eye-hand coordination.
Transmitted about 4.5 times faster under

a Donald Duck voice from breathing the

helium, MacMillan quipped. But were all
used to it and no one notices when we converse with divers breathing this mixture.
However, heliox has a thermal conductivity six times greater than nitrogen, which
can lead to hypothermia. So J. Ray saturation divers typically wear hot-water suits
that are continuously supplied with hot
water that flushes through the inside of the
suit. This hot water is pumped from the surface to the diver via the bell and umbilicals.
With all its idiosyncrasies, commercial diving
definitely requires a blend of special talent,
detailed knowledge and rare affinity for the
physical, mental and emotional demands of
working underwater. At J. Ray, its an opportunity and responsibility that is assumed as
safely and efficiently as possible.

water, sound is also distorted. The human

brain determines the direction of sound in
air by detecting small differences in the time
it takes sound waves to reach each ear. The
increased speed in water makes it virtually
impossible to judge the direction or position from which a sound emanates.
The brain relies on a number of sensory
organs, the vestibular apparatus, positionsensing nerves and skin pressure receptors
to help interpret the direction of gravity,
and in conjunction with the eyes, to give
a virtual horizon. If water suddenly rushes
into the ear, where the vestibular apparatus
resides, the diver can become dizzy and disoriented, ending up diving deeper instead
of heading toward the surface. Experienced
divers know to watch the air bubbles that
emerge from the aqualung, as they will
always float toward the surface.

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Steering Ingenuity

from any place on earth

jraymcdermott.com

2009 J. Ray McDermott, S.A.

special focus

Bright ideas,

Inspired

Execution

20 J. Ray NEWS

Innovation, optimization, and renovation

line the blueprints of continuous improvement

Just as energy is the basis of life itself, and ideas the

source of innovation, so is innovation the vital spark
of all human change, improvement and progress.
- Theodore Levitt, Harvard Business School Professor

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Engineering innovation
As the engine of EPCI, engineerings inventive minds
and innovative designs drive continuous improvement.

f necessity is the mother of invention and its sister, innovation engineering is its father. Within J. Ray
McDermott, this family relationship enjoys a strong and deep
legacy.
For more than 60 years, our inventive minds and innovative
designs have enabled the industry to produce and transport
hydrocarbons from offshore reservoirs.
Starting with the first steel offshore platform in the shallow
waters of the Gulf of Mexico in 1947, J. Ray has pioneered many
other firsts by constantly working to improve the performance
and efficiency of customers projects through innovative thinking and a focus on solving relevant issues.
This ongoing pursuit of a better, more economical and efficient way to design, build or install has built a portfolio today

that includes every type and size of structure and production system
in waters thousands of feet deep around the world. It has also earned
hundreds of U.S. and international patents over the past 30+ years.
As it gets tougher and more expensive to get hydrocarbons out from
under the sea, J. Ray Engineers continuously seek new or different ways
to design projects that meet customers unique needs.
Our specialty is providing innovative solutions to help our customers, said Bill Soester, Vice President of Global Engineering. We excel
at pulling together creativity and determination from across our company to bring an original idea to life. Using this strength, we are able
to provide cost-effective designs.
As an EPCI company, J. Rays early planning ensures innovative, costeffective engineering designs can be constructed and installed cost
effectively and successfully.

Contentment: The smother of invention.

-Ethel Mumford, playwright, poet, novelist
22 J. Ray NEWS

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Float-over innovation
Consider J. Rays solution for transporting and installing integrated
topsides as the structures have changed in recent years.
The weight of decks has increased significantly, from about 3,000
tons to 20,000 tons, said Alp Kocaman, Senior Consultant and Naval
Architect. Theyre too big to safely lift in one piece , and building them
in several pieces is not efficient or cost effective.
For these reasons, float-over installation is increasingly the method of
choice. Its not entirely new, as J. Ray had done them in the past, dating back to the early 1990s. But the game has changed.
Not only are we dealing with these huge platforms, but they have
moved from shallow, protected waters, to open waters 100+ miles from
shore, with five to six foot waves to contend with, Kocaman added.
Innovation, renovation and resourcefulness are required, as illustrated in the challenge a worldwide team of J. Ray engineers tackled
to make the Intermac 650 (I-650) transport and launch barge able to
transport and install the 19,000-ton topsides of PTT Exploration and
Production Companys Arthit Central Facilities Platform in the Gulf of
Thailand.
Built in 1982 to transport and launch jackets in the Gulf of Mexico
weighing up to 40,000 tons in increasing water depths, I-650 was the
largest launch barge in the world until 1987, when it became the secondlargest, explained Kocaman. It launched numerous deepwater jackets
and compliant towers weighing up to 28,000 tons over the years.
As J. Rays scope of work on the Arthit project included construction,
load out, transportation and installation, the jacket and deck were
already designed in a manner that made I-650 too wide for the job.
J. Ray Engineers proposed modifying the width of the barge, deciding on a unique configuration that reduced the bow section beam

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for approximately half of I-650s length.

An innovative rapid ballast system was built into I-650 as a permanent
feature, rather than using a traditional set up of external pumps. The
team designed a free-flooding system with large remote-controlled
valves to obtain the required barge ballasting rate of about 10 feet per
hour for deck-to-jacket float over. This made it one of a few vessels
that uses a gravity feed ballast system and one of the fastest ballast
systems around.
We conceived the deck support frame as a load out/transportation grillage that would align with I-650s longitudinal bulkheads and
be adaptable for future topsides float overs of differing leg spacing,
Kocaman added.
In late 2007 and early 2008, I-650 successfully completed the task it
was modified for, with the additional challenge of it occurring during the
peak of Thailands northeast monsoon, the worst season of the year.
It was a great learning experience, Kocaman confirmed.
From these lessons learned, I-650 was further modified for float-over
operations on the Su Tu Vang Central Processing Platform jacket and
topsides offshore Vietnam in late 2008. The layout was improved to
optimize the use of space on the barges deck, coiled polyrope mats
were added to prevent paint damage to the jacket legs, and a new tankgauging system and display were installed at control rooms. Another
innovation was an improved 10-point mooring system.
As a result, I-650s second float-over operation was picture perfect.
And it will continuously improve with its third float over for the Platong
II Central Processing Platform EPCI project in the Gulf of Thailand. This
float-over installation, about 18 months away, will benefit from both
Arthit and Su Tu Vang lessons learned in meeting its own unique needs

J. Ray NEWS 23

and weather conditions.

The float-over concept is also evolving into applications beyond
conventional facilities. Decks for TLPs and Semi-submersibles are
becoming so large, they are impractical to lift and have to be built in
modules. This also means spending a lot of time integrating between
modules, which delays production start-up.
Float-over capabilities being developed for J. Rays Altamira, Mexico,
deepwater facility are one way to solve this problem.
The beauty is that topsides of any size and configuration can be fabricated in a single piece in the yard and then integrated with the hull
at the quayside, explained Mark Manfre, Strategic Planning Manager.
Theres a safe harbor for the hull, no golden welds, continuous cable and
piping runs, and commissioning on the ground. And by performing the
project in these steps, construction and schedule risks are reduced.

Subsea innovation
Float-over capabilities are being developed for the Altamira, Mexico,
deepwater facility.

24 J. Ray NEWS

Subsea engineering, performed by J. Rays Mentor Subsea Technology

Services group, also has a rich tradition of meeting challenges head
on with innovation, optimization and renovation. Since the industry
started, Mentor has continuously pushed the boundaries of subsea
technology to help customers meet their needs.
Very few fields are simple any more, said Tom Haley, Mentors
General Manager. The easy oil in mature regions has already been
developed. Today, the focus is on less-accessible reservoirs in frontier regions and in increasingly deeper water, which equates to
designing field development solutions in more remote and complex environments.
Much of the emphasis today, and especially under current conditions,
is on reliable and cost-effective subsea solutions that allow recovery
from both new areas that were not technically viable in the past and
those that were previously not economical to develop.
The heart of these solutions is Flow Assurance, according to Haley.
At Mentor, Flow Assurance design considers how to manage challenging issues such as hydrate formation, wax and asphaltene deposition,
liquid slugging, scaling, emulsions, corrosion, erosion and foaming.
To eliminate and/or mitigate these flow assurance problems, we
apply analyses of the total system from the wellbore perforations,
manifolds, trees, flowlines, risers, topsides and through the export
lines to the market, said Haley. We look at every little issue in the
system to eliminate any adverse effects on getting the product to its
intended destination.
Installation engineering is also being approached with a critical
and creative eye. Were developing innovative ways to install things
because thats such a huge part of the overall project cost, Haley
added. Being part of an EPCI company brings a lot of value to this
type of engineering.
Innovative tools and processes involve optimizing pipeline stability on the sea floor. Emerging technologies such as subsea separation
and boosting can overcome some of the challenges in the deeper reservoirs, especially in deepwater developments.
This subsea processing is a revolution, he added. It can increase production and recovery, improve and prolong existing infrastructure or
even eliminate the need to upgrade existing facilities. Both new and
existing developments can be optimized safely and more profitably.
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Building Opportunity

from prospect to production

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2009 J. RayJ.McDermott,
Ray NEWS S.A.
25

Floating innovation
FloaTEC designs are paving the way into new frontiers
for floating production facilities.

s world energy demand is expected to increase

for the foreseeable future, the need to find and
develop more resources in unconventional locations is becoming more acute. FloaTEC, LLC, a joint venture between J. Ray
McDermott and Keppel Offshore & Marine, designs and develops the floating production systems (FPS) needed in todays
increasingly deep water and extreme conditions.
FloaTECs portfolio covers a wide range of proprietary Spar,
TLP and Semi-submersible (Semi) FPS technology, as well as
research and development capabilities. Recent innovations
include an ice-class disconnectable Spar system and a dry tree
system using its Semi-FPS design for fields in ultra-deep waters.

Arctic breakthrough
Recent studies suggest that Arctic regions hold more than 25
percent of all known remaining hydrocarbon reserves, with as
much as 400 billion barrels of oil to be recovered. Wind, waves,
currents, frigid temperatures, ice and long distances from established infrastructure pose extreme conditions that challenge
normally accepted platform designs.

The biggest challenge by far is ice, said John Murray, FloaTECs Director
of Technology Development. Whether its sea ice frozen seawater
in ice sheets or broken into pieces called floes or icebergs formed
from glaciers and ice shelves, it has complex properties and poses a
real threat.
Different types of ice management are employed to protect floating
production systems from contact with ice that could cause hull damage.
Icebergs may be towed to alter their trajectory, icebreakers can open the
ice cover and move ice floes to reduce pressure around the hull, or hulls
can be moved to a limited degree by means of their moorings.
Another option is to strengthen floating production systems to withstand ice impact, but they have to be able to move out of harms way
in the presence of very large icebergs, Murray added. This means the
structure needs to disconnect from its mooring and riser systems.
FloaTECs patent-pending invention is a Spar-type platform with just
such a mooring and riser disconnect system.
It consists of an upper hull structure that supports the topsides facilities and equipment, and provides the buoyancy and ballasting functions,
and an optional storage function. The lower hull is constructed as a subsea mooring buoy (SSMB). The upper hull structure and SSMB module
are connected by a mechanism that allows the upper hull structure to
be disconnected from the SSMB module and moved by towing or an
onboard propulsion system to avoid a threat, and then re-connected
when the threat has passed. The SSMB module is sized to provide the
buoyancy to support the mooring lines and riser system that are left
behind when the upper hull section is disconnected and removed.
With 36 mooring lines in four groups of nine each, the mooring system is designed for initial installation by the utility winch in groups. This
provides a significant weight and cost reduction compared to nine individual mooring winches for each group.
It can be an easy and quick disconnect system and relatively easy to
re-connect, depending on the ice conditions, Murray added. The system allows for a dry disconnect in the sense that the flexible/umbilical
is disconnected at the production deck allowing safe operation and
maintenance.

Semi development
The Arctic Spar design allows the structure to disconnect from
its mooring and riser systems to avoid or evade large ice bergs.
26 J. Ray NEWS

Another FloaTEC development addresses the industry challenge of

providing cost-effective dry tree completions for fields in ultra-deep
waters.
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Dry trees allow workover, drilling and completion from the drillfloor,
so there is no need for a mobile offshore drilling unit. Hull forms that
currently support deepwater dry trees are the Spar and TLP. FloaTEC
now offers a viable alternative a dry tree Semi-FPS design that has the
motions of a Spar and the functionality of a Semi, said Murray. It captures all the advantages of dry tree drilling and production, and direct
vertical access to the wellbore.
FloaTEC actually offers two ultra-deepwaer dry tree Semi solutions
the Truss Semi (T-Semi) and Extendable Draft Semi (E-Semi) designs.
Both solutions use versions of FloaTECs proprietary DeepDraft SemiFPS hull design with deeper draft and rely on hydrodynamic interaction
between the heave plate and the hull to reduce motions.
It is significant to note that the motions are limited to enable the use of
commercially available tensioners, currently restricted to under 30-foot
stroke, Murray said.
The difference between the two designs is how the method to suppress heave is installed. E-Semi employs a single extendable heave plate
that is installed under the hull as part of the hull construction and then
lowered into position at location. T-Semi uses a truss section with multiple heave plates. The truss is launched like a conventional jacket and
mated with the hull either near shore or offshore.
We are simply marrying existing technology to add value and create a hybrid to enable dry tree production and direct vertical access
into the wellbore, said Chris Barton, FloaTECs Director of Business
Acquisition.
Efforts were directed toward a Semi dry tree solution because of the
advantages of its design. The Semi offers a large horizontal open deck
area, for example, while the Spars single-column form requires a number of vertical stacked decks. Operational advantages include greater
flexibility in the Semis wellbay layout, resulting in more cost-effective
drilling operations.
The Spar hull structure is typically conducive to a square-shaped wellbay, while the E-Semi and T-Semi can easily accommodate rectangular
layouts. This reduces the span of the skid beams for a rig, thereby reducing the spanning structural weight and lowering the center of gravity,
explained Murray.
The most significant difference is the greater amount of commissioning
performed dockside with the Semi, which translates to costs that can be
up to one-half the costs of carrying out similar work offshore.

Phase 2 testing confirmed both units ability to support dry

tree risers in waters up to 10,000 feet.
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J. Ray NEWS 27

Constructing innovation
Ongoing process of change and adaptation
sparks continuous innovation and improvement.

fforts to innovate, optimize and renovate in J. Rays

construction operations are gaining strength and visibility through advanced industrial engineering techniques. The
focus is on streamlining processes, standardizing practices and
eliminating waste, all in the spirit of continuous improvement.
Consistent with general engineering, which is about making
things, industrial engineering is about making things better
easier, simpler, safer.
The goal is to improve the efficiency and utilization of tools,
materials, equipment, processes and people; and remove things
that do not add value, said Mike Smith, J. Rays Global Manager
of Industrial Engineering. We strive to start or change things
that will make a real positive difference on the outcome, and
stop doing those that dont.
Examples of non-value-added work include moving equipment or walking from one place to another to get materials, the
hours it takes to prepare a report, or the time to sift through a
25-page report to find one piece of information. These tasks
are usually necessary, but do not contribute directly to the finished product.

Looking at both individual processes and how they work together,

we try to define our perfect world and work toward achieving that,
added Smith.

Making a real difference

A main way to add value is to shrink the lead time between steps and
processes through the elimination of material handling and unrequired
work, thus reducing cycle time.
The hidden opportunities for improvement are quite significant, said
Smith. For example, after filming a work process for about 20 minutes
and showing it to a group of supervisors, they concluded that same
process could be done in three-and-a-half minutes. It would just take
organizing things differently so materials were where theyre needed,
when theyre needed.
Data is key to identifying improvement opportunities. If we dont
know what we are truly capable of or how we are truly performing,,
how can we realistically expect to improve? We need automated ways
to measure what were doing so we can turn it into something meaningful, Smith added. Its the driver in our processes, with a significant

The only way to make sense out of change is to plunge into it, move
with it, and join the dance.
-Alan Watts, author and lecturer
28 J. Ray NEWS

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positive impact on productivity, greater predictability and system stability in supporting continuous improvement.
Technology plays an important role as an enabler, supporting and
accelerating data collection, analysis and reporting.
Simulation modeling software is able to analyze processes from a micro
perspective, in terms of process design, identifying bottlenecks and
reducing cycle time. On a macro level, observation and activity collection/measurement program produces a statistical yard-wide snapshot
of work-level activities and craft utilization.
Radio Frequency Identification (RFID) technology is another data-collection option. Similar to bar codes, RFID technology transmits information
about an object via scanning, but with major differences. RFID tags are
typically capable of carrying up to 2,000 bytes of data, have a read time
typically less than 100 milliseconds, and have read and write capabilities. Another advantage is that RFID eliminates the need for line-of-sight
reading on which bar coding depends. Also, RFID tags dont need to be
on the surface of an object, they can be scanned at greater distances
and many can be read simultaneously.
The RFID tag provides a unique identification for an item and serves
as an anchor that ties back to other information, explained Smith.

Improvement initiatives
A number of initiatives for improving efficiencies in processes, procedures and delivery of finished goods are underway onshore and offshore
company wide. These endeavors include the purchasing of new equipment, physical movement of processes and personnel training. Macro
and micro approaches for monitoring, industry benchmarking and
identifying areas for improvement are also being pursued, with a primary emphasis on material handling and global standardization, as
well as application and implementation of continuous improvement
methodologies.
At J. Rays Batam Island facility, an RFID project in the Carbon A shop

jraymcdermott.com

will pilot a real-time interactive solution for material movement status,

tracking and location; job status, tracking and reporting; equipment
availability and usage; data collection and metrics information. Wireless
mesh networks will be utilized to close the information gap inside and
outside the shop, facilitating collection of real-time data and providing
instantaneous updates to interrelated systems.
By tracking Work in Process, which accounts for 90 percent of all our
materials, well have a clearer picture of whats happening when, and
then be able to identify areas for improvement, said Smith. It will demonstrate the replacement of various manual processes currently used
throughout our fabrication facilities and interface with multiple existing
processes and systems through a customized integration solution.
At the Jebel Ali facility in Dubai, industrial engineering is being applied
to the pipe rolling process, rationalizing the crane fleet, and a new way of
setting subsea pipe sleepers and detaching from them that will increase
safety and productivity.
Offshore, industrial engineering approaches and tools are being used
to analyze and improve pipeline work onboard vessels.
Were mapping the work processes of each individual station and collecting cycle time data. This will give us a baseline for performance under
different weather and other working conditions, and the ability to determine and adopt best practices that will increase consistency, said Smith.
In addition to operational initiatives, organizational changes are focusing attention on innovation and improvement. A Worldwide Manager
was recently appointed, with responsibility for oversight and control of
all pipeline Automatic Welding Systems procedures, resources, training
and research and development.
Matching this level of activity and support in process improvement is
an understanding and acceptance of change as the catalyst.
The only way to improve is to embrace change and constantly look
for better ways to do things, said Smith. Its also more fun. Even the
most routine of tasks becomes more interesting when you learn a new
or different way to accomplish it.

J. Ray NEWS 29

installing innovation
Inquisitive minds, resourceful approaches and special expertise steer Marine
to challenge current processes and discover alternative solutions.

s the application of ideas that result in new or

better products, services and processes, innovation can take many forms: big or small, complex or simple,
breakthrough or incremental. It can also be visible or hidden
behind the scenes, such as infrastructure changes of J. Rays
Marine division.

Supporting infrastructure
Organizational changes within the worldwide Marine group
are enhancing consistency of operations and efficient allocation of resources. These include realigning the regional groups

30 J. Ray NEWS

to report directly to the local organizations, and aligning the worldwide group to focus on supporting the regions.
Sometimes organizational changes that involve establishing a
dedicated group can be the most powerful approach in affecting
short- and long-term improvements. This was the case in early 2008
with the initiative that established J. Rays Marine Asset Planning
group.
We oversee two main types of resources. One type is principle
marine assets, in the form of vessels. The second type is support
resources, such as pile-driving hammers, pipeline welding systems
and other such equipment, explained Daryl Nelson, International
Marine Asset Planning Manager. Our goal is to discard inefficient

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systems and establish planning processes that improve the productivity of the marine business. We are active in replacing and updating old
planning practices, and designing and developing new reports and
systems.
A continuing challenge is providing valued-added information
data that can be distilled and used to provide the right information to
the right people at the right time.
As our markets and organization expand, important information that
was once stored in the heads of our key people needs to move into
systems that store and make the information widely accessible. This
approach improves response time and increases our ability to effectively manage a higher degree of complexity.
Another behind-the-scenes improvement is the Readiness Review
Process that is being rolled out on specified projects this year.
This is a three-gate, stop-light system that makes sure everything is
in place prior to execution, said Steve Bertone, J. Rays Vice President
and General Manager, Worldwide Marine Operations.
At each phase beginning of the project, three-to-four months
before mobilization and just before execution a red, green or yellow
flag indicates readiness for the next gate.
Two new positions are dedicated to overseeing execution methods and efficient production: General Superintendent of Methods and
Execution, and Director of Pipeline Construction.
We do a lot of blocking and tackling to ensure everything goes well,
added Bertone.

Innovation in action
When it comes to project work all these Marine initiatives support,
thinking differently requires focused expertise, respect for lessons
learned, and the special ability to look at something familiar from a
new perspective. A number of examples illustrate this inquiring, cando approach.

Subsea clothesline
During planning of a fast-track subsea tieback project, a J. Ray customer recognized that delays in the drilling schedule meant laying
the dual flowlines while the moored drilling rig was still on site. J. Ray
offered a solution for initiating the PLETs directly under the drilling rig
via a clothesline method that required only one construction vessel
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J. Ray NEWS 31

and kept the pipeline installation on schedule.

In this clothesline approach developed by J. Ray and customer representatives, a suction pile was installed on the
far side of the drilling rig from the lay vessel. Then a line was
strung from a winch on J. Rays DB16 through a sheave on the
suction pile and back up through the stinger to the PLET. The
PLET was maneuvered into place by in-hauling the winch while
paying out pipe.
Although this solution required extra duration of good
weather and purchase of additional buoyancy, the customer
deemed the benefits outweighed costs, explained Don
Hervey, Project Manager. With early cooperation between
vessel superintendent and engineering, we developed a
straightforward procedure. Combining creative and practical
thinking with strong teamwork enabled us to successfully execute this innovative approach.

Careful subsea maneuver

Another straightforward, yet innovative, concept applied
to J. Rays recovery and hang-off of two abandoned export
SCRs during work on a deepwater field development project.
It was J. Rays first experience with a cross-haul installation
method of recovering SCRs from under five mooring lines
and connecting them to a Spar.
First, J. Rays installation vessel recovered the prelaid export SCRs from the seafloor, using the onboard

Abandonment and Recovery (A&R) system, until directly under the

five mooring lines that anchor the Spar to the seafloor. The SCR was
then transferred subsea to the gantry crane through the use of specialized rigging and real-time monitoring of critical clearances.
Once the SCR and load was transferred, the gantry crane continued recovery by bringing the SCR to the surface and placing it to the
PLET rack, anchored to the vessels port side deck. Finally, the gantry
crane lowered the SCR pipeline subsea and installed the export SCR
into the Spar receptacle.
While the overall concept was relatively straightforward, the offshore execution of the process was extremely complex due to all
the variables we had to deal with, including weather, clearance tolerances and close proximity between the vessel and Spar, said
Hassan Dehaini, Project Manager.
With a carefully coordinated, collaborative approach among crews,
project management, engineering offices and customer, the result
was a quality procedure and the safety of people and equipment.

A tall order
When a jacket installation strategy was challenged by the fact
that the pile lengths were longer than the height of the installation vessels crane boom and greater than the water depth, J. Ray
responded with the solution of using two upending frames.
The hydraulic-operated frame was opened and loaded by lifting
the foundation pile horizontally into the frame. The 84-inch diameter, 484-ton piles straddled the vessel with overhang on both

Change does not change tradition, it strengthens it. Change is a

challenge and an opportunity, not a threat.
-Prince Philip of England
32 J. Ray NEWS

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the port and starboard side. The bottom side of the pile protruded
overboard, as far as necessary, in order for the crane-boom tip to
have sufficient clearance during the upending operation. Once the
pile was in the correct position, the clamp could be closed and the
locking/clamping cylinders could be activated, explained Bernie
Heading, Operations Engineer.
The upending procedure started by using a standard IHC Internal
Lifting Tool inserted at the pile top. During upending, the clamp
allowed for a sideway inclination of plus or minus 10 degrees to compensate for sudden movements caused by sea swell and/or crane.
Upon reaching the vertical position, the clamp was opened and
the pile load transferred from the clamp to the ILT/crane, added
Heading. The crane was then free to move the pile to its specified
position. Two clamps were available so we could stage multiple sections during good weather and to provide redundancy.
J. Ray also handled the 295-foot long pile driving follower sections
with the upending frames.

Pile launching
Another jacket installation posed a familiar challenge, but to a
much greater degree. Pile launching operations involved skirt piles
of diameters, lengths and weights that exceeded prior experience.
The jacket structure was secured to the sea bed by 12 84-inch
diameter skirt piles, with three single piece skirt piles on each of the
jackets four legs. The skirt piles were of two different lengths; eight
were 421 feet long, and four were 426 feet long; the weight of each
was approximately 390 short tons.
J. Ray project and engineering teams in Houston, Morgan City and
New Orleans refined and enhanced existing in-house pile launching

jraymcdermott.com

techniques to optimize installation for the project requirements. The

solution was launching each skirt pile into the pile sleeves at the offshore site using a removable pile launch system.
This system comprises two main components, swing-arm and
rocker-arm assemblies, placed on the starboard side of J. Rays installation vessel prior to the pile launching operation, explained Vikrant
Joshi, Project Manager. One assembly swings out of the way prior to
the launching of the pile, while the other transfers one end of the pile
in the water.

Work decks
An upcoming installation project will stretch J. Ray abilities to build
and install two work decks and drilling caissons twofold.
To allow drilling and grouting operations for installation of a jacket
to be carried out partially independent of the J. Ray installation vessels crane, a self-contained drilling support unit will be set up on
top of the jacket. This will serve as a working platform for the drilling
personnel and equipment. The drilling support unit consists of two
small temporary work decks, each with two support sleeves (caissons) that will be stabbed over and supported on two of the jacket
legs.
The drill bit and drill string will be pre-installed inside the full
length of the caisson, to save time running the drill string offshore.
The drill rig will then be lifted and positioned on top of the caisson
for drilling to be carried out at two locations simultaneously.
We built and installed two similar work decks and drilling caissons last year for another project offshore Australia, but this time the
work decks are twice the size, said Stuart Joyce, J. Ray Operations
Engineer.

J. Ray NEWS 33

Area Focus

Brazil:
34 J. Ray NEWS

Exotic beauty, extensive resources, exuberant culture

and engaging people reflect the essence of Brazil.

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Brazil is the discovered Earthly Paradise, where the biggest rivers

originate and run, where the healthiest climate predominates, where
friendly stars exercise their influence and the most tender breezes blow,
rendering it fertile and peopled by countless inhabitants.

- Rocha Pitta, early historian

ven the countrys physical parameters

exude life. As the fifth-largest country
in South America, Brazil shares common boundaries with every country
on the continent, except Chile and
Ecuador. Its coastline of more than 4,600
miles, and total area of more than 5.3 million
miles spans four time zones, including one for
the Fernando de Noronha Islands alone.
Natural wealth
Brazils landscape is equally expansive and
vibrant with a diverse topography
including mountains, plains,
highland, scrubland,
savanna and, of course,
the glorious Amazon
Rainforest (see page
38).
Renowned for its magnificent beaches, the
most famous of which
are Rio de Janeiros
Ipanema and Copacabana.
Among its scenic mountain areas, the most distinct
is Rio de Janeiros Sugar Loaf
Mountain. The highest is Pico
da Neblina (Misty Peak), at

36 J. Ray NEWS

9,823 feet, in the Guiana Highlands. Also more

than 9,000 feet high are southern Brazils Pico
da Bandeira and Pico do Cristal.
Brazil has a dense and complex system of
rivers, dominated by the mighty Amazon,
ranked the largest and second-longest river
in the world. A major tributary of another rivier (Parana) is home to the Iguau Falls which
flow south between Argentina and Uruguay.
This breathtaking landmark consists of 275
falls, most about 210 feet in height, with individual falls reaching up almost 300 feet.
Wilderness areas include the wildlife-rich
wetlands of Pantanal, canyons and caves of
Chapada Diamentina and Mata Atlantica running much of the length of Brazils coastline,
as well as the worlds biggest rainforest.
Historical diversity
Brazil has a long and rich history, with evidence suggesting possible human habitation
more than 30,000 years ago. Discovered artifacts, including cave paintings, date back at
least 11,000 years.
Portuguese explorers arrived in 1500 and
claimed it as a colony. The name Brazil is
thought to derive from the Portuguese word
for the red-colored brazilwood the early visitors gathered; brasa means glowing coal.

The indigenous people taught the explorers

about the cultivation of corn, the construction of hammocks and the use of dugout
canoes. The first permanent settlement was
made in 1532.
As a Portuguese colony regaining its independence in 1822 Brazil was established
as a plantation-based economy, initially sugarcane. The discovery of gold in the 1690s
prompted the first significant settlement of
the interior. When sources of the precious
metal were exhausted, coffee plantations
dominated the countrys industry.
From the mid-1880s, coffee exporters
ruled the political landscape, until populist
leader, Getulio Vargas, rose to presidential
power in 1930. Vargas held that office several
times until 1954. For the next 30 years, Brazil
followed a pattern of military rule amid worsening economic crises, followed by a return
to civilian rule in 1985.
In 2003, the Brazilian people voted in Luiz
Inacio Lula da Silva, a former trade union
leader and factory worker, as the countrys
first elected working-class head of state.
Lula, as he is known, has managed to interweave a potent approach of conservative
fiscal policies with far-ranging antipoverty
programs, which have lifted 36 million people

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Photo credit: Manoel Pereira

Celebrate!

The symbols and experiences that

best characterize Brazil are its festivals.

out of chronic poverty.

Today, the country is officially defined as
a Federal Republic, formed by the union
of the Federal District, 26 states and 5,564
municipalities.
The people of Brazil are as diverse as its
landscape and habitat. Many can trace
their roots back to Portuguese colonists,
but ancestry also includes Italian, German,
other European descent, Amerindian, Asian
and African. And there are more Japanese
Brazilians in Rio de Janeiro than anywhere
else outside Japan.
Economic strength
As the worlds 10th largest economy and
ninth-largest in purchasing power, Brazils
economic might is underscored by large
and well-developed sectors in agriculture, mining, manufacturing and services.
The industrial sectors make for a formidable economic system, surpassing all of its
neighboring countries.
Best known for its agricultural base, which
produces coffee, soybeans, wheat, rice, corn,
sugarcane, cocoa, citrus and beef, Brazil is
expanding to make its economic presence
Continued, page 39

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Carnival. The benchmark for all other festivals around the world, Rios Carnival has a
spirit and energy that takes over the city for
four days (February 2010). Parading samba
schools form continuous streams of color,
motion and rhythm.
National Cachaca Day. June 12 celebrates
the occasion when people protested the
Portuguese ruling that prohibited the production of cachaca, the national alcoholic
spirit of Brazil.

National Samba Day. In true Brazilian style, National

Samba Day is one huge, musical party. Started in
1962, the December event is a tribute to all the artists and people involved in making Carnival such
an integral part of Brazilian culture.
Iemanj Festival. Every December 31 throngs
of revelers congregate on the golden beaches of
Copacabana, Ipanema and Leblon to worship the
Goddess of the Sea, Iemanj.

June Bonfire Festival. Against a backdrop of fireworks and bonfires, children and
adults give thanks for the rainy season and
celebrate rural life in country-style clothing
(June 13, 2009 and various dates).
Bumba Meu Boi. Often called simply
Festival, the three-day June event (various dates from June 13-29, 2009) celebrates
and re-enacts a popular folk tale and other
mythology through costume and dance.
Independence Day. On September 7 Brazil
celebrates its independence, with parades,
decorations, flags, fireworks and much
excitement and joy.

J. Ray NEWS 37

The mighty

AMAZON

38 J. Ray NEWS

The beauty, majesty and timelessness of the Amazon Rainforest are

unmatched in this world.

found in the rainforest only 200 are in use

worldwide; indigenous tribes use more
than 2,000.

Paradise found

Orchestrated chaos

Sprawling across nine nations, with the

majority situated within Brazil, the Amazon
Rainforest is 1.4 billion acres of spectacular and awe-inspiring natural resources.
Named for its life force, the rainforest is
the drainage basin for the 4,080-mile long
Amazon River and its more than 1,000 tributaries that empty one-third of the worlds
fresh water into the sea.
Some 60 million years ago, the Amazon
Rainforest was formed when tropical temperatures lowered and the Atlantic Ocean
grew wide enough to provide a warm,
moist climate within the Amazon basin. Life
gathered in isolated patches and evolved
over millions of years, creating the greatest
orchestration of life ever heard.
Harmonizing by at least 30 percent of all
known species today, the rainforest is the
largest and most diverse natural phenomenon on Earth: 40,000 plant varieties, 2.5
million insect species; 3,000 fish and more
than 2,000 birds, reptiles, amphibians and
mammals, many of which are unique to
the area.
One of the most interesting and endearing mammals is the pink dolphin, or
botos. This most intelligent, friendly and
sensitive member of the dolphin family is
also extremely versatile, as it is able to live
in a mix of fresh and salt water. It gets its
unique coloring from increased blood flow
to the capillaries near the skins surface.
Not only a masterpiece to see and hear,
rainforest flora and fauna contribute a
wealth of renewable, natural resources:
basic food supplies, clothing, shelter,
fuel, spices, industrial raw materials and
medicine. About 25 percent of the active
ingredients in todays cancer-fighting drugs, for example, come from
organisms found only in the
rainforest. Of the 3,000 fruits

While its density and diversity may make

it seem chaotic, the rainforest is actually
a finely crafted and perfectly balanced
ecosystem, synchronized among four
interdependent layers.
In the tallest, emergent, layer trees grow
up to 200 feet high and have trunks up to
16 feet in diameter. Exposed to all the fluctuating elements, plant leaves are small
and covered with a thick waxy surface to
hold water.
The main layer, the canopy, filters out
about 80 percent of the sunlight. Densely
leaved trees, flowers and fruits grow in
this layer; epiphytes (organisms that grow
on or attach to a living plant) cover every
available surface.
Receiving five percent or less of available sunlight, the understory is inhabited
by the largest concentration of insects.
Because there is little air movement, plants
rely on insects and animals to pollinate
their flowers.
Almost no plants grow on the forest floor.
Instead, it is covered with a biomass of
decomposing vegetation and organisms
that are broken down into usable
nutrients.
Despite its strength and beauty,
the Amazon Rainforest faces a formidable challenge. Deforestation is
occurring at a rate that could diminish the rainforest by 40 percent over
the next 20 years. To counteract the
loss, public and private conservation
efforts have greatly increased, with
more than 620,000 square miles of
the rainforest now protected.
The goal of these ongoing efforts
is to preserve the rainforests majesty
and riches for generations to come.
More than half (60 percent) of the
Amazon rainforest covers Brazil;
smaller pieces are in eight other
South American countries.

(Continued from page 37)

felt around the world. Rich in another natural
resource, the country has the greatest variety
of gemstones on the planet.
With emerging industries in petrochemicals,
forestry, textiles, footwear, computers, lumber, iron ore and steel, Brazil is regarded as a
serious player on the international industrial
stage. The country also manufactures aircraft,
motor vehicles and parts, plus a variety of
other heavy equipment and machinery.
Public universities and research institutes
are responsible for Brazils boom in technological advances. The government supports
more than 73 percent of the funding needed
for current research endeavors. Driving the
countrys advances are Oswaldo Cruz Institute,
Butantan Institute, the Air Forces Aerospace
Technical Center, the Brazilian Agricultural
Research Corporation and the National
Institute for Space Research. As a result, Brazil
now has the most progressive space program
in all of Latin America, with the capability to
launch vehicles and satellites in space and
support a satellite-manufacturing sector.
Education is a cornerstone of the countrys
prosperity and to this end, 25 percent of state
and municipal taxes and 18 percent of federal taxes are set aside to pay for educating
Brazils population. Such measures have paid
off, as the populations literacy rate soared
an impressive 88 percent in 2003, and youth
between 15 and 19 years old had more than a
93 percent literacy rate.
The greatest concentration of Brazils industry and economic vitality can be found in its

major cities. So Paulo, best known as the economic epicenter of Brazil, sustains some of the
countrys most diversified industrial and service sectors.
In addition to its industry, the vast telecommunications network that Brazil has
developed underpins some 1,600 radio and
138 television stations across the country.
Fifty million of its residents now claim to be
Internet users.
Transportation also marks this modern
emerging superpower, with more than 4,000
airports and 18,000 miles of railway. Brazils
infrastructure is so important to its continued
economic growth that in 2007, the country
developed a four-year plan to spend $300 billion to modernize its roads, power plants and
ports.
A relative latecomer to the oil and gas industry, with major oil fields discovered offshore
Rio de Janeiro in 1974 and 1976, Brazil has
made up for the delay. In 2001, the country
was one of the top 20 producers of crude in
the world and today has become a major area
for deepwater development.
Assisting in Brazils offshore development,
J. Ray was awarded the engineering, procurement and construction of 7,165 tons of
topsides for a floating production, storage and
offloading (FPSO) vessel for A.P. Moller-Maersk
A/S. The FPSO will ultimately be operated
in the Peregrino field located in the prolific
Campos Basin about 53 miles offshore Brazil in
328 feet of water.
Engineering and procurement are being
handled by J. Rays Houston offices, and

J. Ray NEWS 39

construction is taking place at the Batam

Island, Indonesia facility. Production of estimated recoverable crude of 300-600 million
barrels is planned to start in 2010.
Cultural vitality
The diversity of its people is also reflected in
the cultures rich blend and spirit.
Celebration is an integral part of Brazilian
life, from everyday occasions to elaborate
year-round festivals (sidebar, page 37). A
major part of the celebrations, music is more
than entertainment; it is often referred to
as the soundtrack of national life and frequently is accompanied by dance.
Shaped by musical influences from
Portuguese, native Indians and African heritage, distinct styles are the samba, bossa
nova and lambada.
Matching this celebratory zeal is the love
of football (futebol). Seleo, the countrys
national football team, is currently ranked
fifth in the world, according to the FIFA World
Rankings, and has won the World Cup tournament five times.
Another sport with a huge fan following is auto racing, with
Brazilian drivers winning
the Formula 1 world championship eight times.
Brazil also boasts a
long tradition of cinema,
which has reached a new
international zenith in
the past few years. Several
celebrations of this art

form include the Sao Paulo International Film

Festival and Its All True event; Rio de Janeiros
Anima Mundi, honoring animation, and
Festival do Rio BR; and Gramado Film Festival
in the city of Gramado.
Rich and varied experiences are possible
among Brazilian cities, from the Sao Paulo
megatropolis to the labyrinthed, cobblestoned, baroque-styled Ouro Preto.
Known as the marvelous city, Rio de
Janeiro is a spectacular harbor dominated
by the famous Sugar Loaf Mountain and
Corcovado peak, which rises 2,326 feet high
and provides the focal point for the classic
Rio skyline.
In the center of Brazil is one of the
most original cities in the world and the

countrys capital. Brasilia was built in 2,000

days to be the nations focus of power.
Inaugurated in 1960, it is a landmark in city
planning and renowned for its futuristic
architecture.
Culturally rich Brazil hails many interesting museums and theaters, including the
Museum of Modern Art, designed by the
world famous architect Oscar Niemeyer.
The Municipal Theatre of Rio de Janeiro,
built between 1904 and 1909, is a miniature
of the Paris Opera.
For those seeking a celebration of life and
true adventure, Brazil offers a rich tapestry of uncommon cultures and tantalizing
sights and sounds unlike anywhere else in
the world.
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Expanding Possibility
from idea to reality

jraymcdermott.com

2009
2009 J.J. Ray
Ray McDermott,
McDermott, S.A.
S.A.

jraymcdermott.com
J.jraymcdermott.com
Ray NEWS 41

The premier location for deepwater floating hull and

assembly projects for the Gulf of Mexico and Atlantic.

Solving deepwater issues with onsite, low-risk,

float-over capabilities for quayside integration.
2009 J. Ray McDermott, S.A.