McDermott International, an engineering and construction company, has said that a subsidiary of J Ray McDermott (J Ray) has been awarded a contract by the Kellogg Joint Venture-Gorgon on behalf of Chevron Australia, operator of the Gorgon Project.

More than 60 pre-assembled racks and units with an estimated combined weight of approximately 25,000 tonnes will be constructed at J Ray’s Batam Island fabrication facility in Indonesia.

J Ray will provide services for project management, fabrication engineering, procurement and material management, construction, commissioning assistance, quarantine compliance, loadout and seafastening.

The pre-assembled structures, when completed, will be installed as part of the Liquefied Natural Gas plant currently under construction on Barrow Island, on Australia’s North West Shelf.

Contracts of this nature are typically valued in excess of $150m and this contract will be included in McDermott’s second quarter 2010 backlog.

Steve Johnson, president and chief executive officer of J Ray, said: “This significant project underscores J Ray’s comprehensive fabrication capabilities at Batam Island, Indonesia and further strengthens our position in the Liquefied Natural Gas module fabrication market.”

Work is expected to start in the fourth quarter of 2010, with project completion after two years.