News | June 7, 2004

BJ Pipeline Inspection Services Awarded Contract By Kern River Gas Transmission

BJ Pipeline Inspection Services today announced it has been awarded a multi-million dollar four-year contract to provide baseline pipeline inspection services to Kern River Gas Transmission Company of Salt Lake City, Utah.

BJ Pipeline Inspection Services will inspect 1,374 miles of the Kern River pipeline system, which runs from southwest Wyoming to Bakersfield, California. The pipeline system is designed to transport 1.7 billion cubic feet of natural gas daily which, when converted to megawatts of electricity, is enough energy to power approximately 10 million homes.

BJ Pipeline Inspection Services will carry out baseline inspection for Kern River with its in-line inspection tools, including the GEOPIG™ mechanical caliper and VECTRA™ MFL tool. By using the Vectra MFL tool with its active speed control and gas by-pass system, BJ Pipeline Inspection will keep the tool velocity constant throughout the run, thereby assuring that all data captured is accurate and of the highest resolution. In addition, the gas by-pass feature makes it possible to perform inspections without disrupting gas flow, which is highly beneficial to Kern River and its customers in Utah, Nevada and California who rely upon a consistent supply of natural gas year-round.

BJ Pipeline Inspection is scheduled to commence inspection of the first section of 36" mainline pipe from Salt Lake to Elberta - a total of 192 miles - in June. The remainder of the 683-mile NPS 36 mainline and the 627-mile loopline will be completed over the remainder of the four-year contract. In addition, a number of 12-inch, 16-inch and 24-inch laterals will also be inspected using GEOPIG and VECTRA MFL technologies.

Using uniquely designed pipeline inspection equipment maintained at the division's headquarters in Calgary, Alberta, BJ Pipeline Inspection Services personnel will carry out all pipeline inspection services. The four-year contract will be completed by the end of 2007.

"We look forward to fulfilling this very exciting pipeline inspection opportunity for Kern River Gas Transmission Company, especially in view of the vast geographic region the pipeline system services," said John Adams, general manager of BJ Process and Pipeline Services. "Throughout the course of the contract, we will aim to deliver accurate and comprehensive pipeline inspection services, which will be critical to a project of this magnitude."

The contract represents the first time that BJ Pipeline Inspection Services will have worked on behalf of Kern River.

BJ Services Company (BJS-NYSE, CBOE) is a leading provider of pressure pumping and related oilfield services to the petroleum industry. The company operates in every major oil and gas-producing region.