November 21, 2000

Marinette wins $84.5 million buoy tender contract
The Manitowoc Company, Inc. said yesterday that it had finalized its agreement to purchase Marinette Marine Corporation.

At the same time, Manitowoc announced that Marinette had secured a contract worth $84.5 million from the U.S. Coast Guard for the construction of three 225-foot Juniper Class (WLB) sea-going buoy tenders. These three cutters are part of a $309-million contract awarded in September 1998, which contains options for an additional two vessels, yet to be awarded.

Marinette Marine's 800-person workforce is currently constructing 225-foot Juniper Class (WLB) seagoing buoy tenders and recently delivered the fourteenth and final 175-foot Keeper Class (WLM) coastal buoy tender for the U.S. Coast Guard, under a contract awarded in 1993. Marinette is also currently in the final stages of delivering two hotel barges to the U.S. Navy. The barges are equipped with sleeping quarters for 350 personnel, cooking and dining facilities for serving 1,150 meals in 90 minutes, and a full complement of administrative offices, recreation and fitness areas, a post office, and a barber/hair stylist shop.

The U. S. Coast Guards WLB and WLM vessels are designed to maintain the national system of more than 50,000 floating aids to navigation. They have advanced electronic navigation and positioning systems, computerized propulsion controls, and automated equipment, which reduces manning requirements. Both classes are also capable of undertaking missions involving search and rescue and marine environmental protection.

Outside the maritime sector, the Manitowoc Company, Inc. is best known as a leading manufacturer of ice-cube machines, ice/beverage dispensers, and commercial refrigeration equipment for the foodservice industry. However, it is also a leading producer of lattice-boom cranes, boom trucks, and related products for the construction industry, and specializes in ship repair, conversion, and new-construction services for the Great Lakes maritime industry.

J. Ray McDermott picked for BP topsides fabrication
J. Ray McDermott, S.A., a subsidiary of McDermott International, Inc. , has signed a letter of intent to fabricate the topsides for four major BP deepwater projects in the Gulf of Mexico. The agreement gives BP exclusive use of J. Ray McDermott's facility near Morgan City, Louisiana, during the fabrication.

Over the next several years, the work is expected to bring as much as $600 million in revenues to J. Ray McDermott and create an additional 400-500 new jobs for fabrication workers at the facility. J. Ray McDermott will dedicate its fabrication yard in Amelia, Louisiana, solely for work on the topsides for BP's Holstein, Mad Dog, Atlantis and Crazy Horse projects in the deepwater Gulf of Mexico. Fabrication will commence in the second half of 2001. Three of the four projects will be spar developments. Development options for Crazy Horse, the largest of the projects, are still being evaluated.

Crazy Horse is located in 6,000 feet of water in the Boarshead Basin, 125 miles southeast of New Orleans. With estimated recoverable oil of at least one billion barrels of oil equivalent, it is the biggest discovery ever in the deepwater Gulf. The other three projects are located in depths varying from 4,000 to 6,500 feet in the South Green Canyon area of the Gulf, 150 miles south of New Orleans.

The fabrication facility near Morgan City was established in 1956 and currently employs approximately 1,000 workers.

Conversion of CSO Constructor starts
Britain's Cammell Laird Tyneside has started conversion of Coflexip Stena Offshore's vessel the CSO Constructor. The operation was previously scheduled for April 2000, but was postponed due to the vessel's heavy workload in 2000.

The conversion will enable CSO to offer a subsea construction vessel with larger capabilities, able to lay rigid and flexible pipe down to 1,500m water depth (4,900ft).

This investment exceeding EUR30 million (about $25 million) will significantly expand the capabilities of the CSO Constructor. The hull and the deck will be lengthened by 15 m and widened by 5 m to bring its pipeline payload to 3,000 metric tons. It will also be equipped with two new lift cranes of 300 and 25 metric tons respectively. After conversion, the vessel will be able to install rigid lines with the M-J Lay system, or flexible lines and umbilicals, stored in a carousel under deck, using the Vertical Laying System (VLS), down to 1,500 m (4,900 feet) water depth.

Conversion starts immediately in Newcastle-Upon-Tyne, and will be completed in April 2001. Once converted, the CSO Constructor is scheduled to operate in the U.K. and Norwegian areas of the North Sea

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