MDR McDermott International Inc

McDermott International, Inc. (NYSE:MDR) ("McDermott"), announced today that subsidiaries of J. Ray McDermott, S.A. ("J. Ray") have been awarded work by Saudi Aramco to provide fabrication and installation for the Marjan, Zuluf, Safaniya oil field facilities. "This is a significant contract award for us and we are pleased to have the opportunity to further expand our strong working relationship with Saudi Aramco, which dates back to the 1960's," said Bob Deason, President and Chief Operating Officer of J. Ray. "J. Ray has already begun work on the project to ensure we meet our customer's requirements on this phase of the Maintain Potential program." J. Ray, utilizing its Jebel Ali fabrication facility, will commence construction engineering, partial procurement and fabrication of five wellhead jackets totaling over 6,710 short tons, five drill decks totaling over 2,200 short tons, and three scrapper decks averaging 630 short tons each. Additionally, the work scope includes offshore installation of 13 miles of subsea pipelines including one 24" and four 16" flow lines in waters 49-170 feet deep, tie-in-pools, anode sled assemblies and associated cables; risers and two subsea power cables totaling more than 4 miles in length. Installation work is expected to be executed using J. Ray's DB27 marine vessel. J. Ray also today provided an update associated with the drydock status of its derrick barge DB50. After considering various timing alternatives, J. Ray is implementing its original service schedule which calls for the DB50 to drydock for a period of approximately 100 days, which began last week. J. Ray McDermott is a leading provider of solutions for offshore field development worldwide. McDermott is a leading worldwide energy services company. McDermott's subsidiaries provide engineering, fabrication, installation, procurement, research, manufacturing, environmental systems, project management and facilities management services to a variety of customers in the energy industry, including the U.S. Department of Energy. In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott International, Inc. cautions that statements in this press release which are forward-looking and which provide other than historical information, involve risks and uncertainties that may impact McDermott's actual results of operations. The forward-looking statements in this press release include statements related to the Saudi Aramco contract work scope, and the timing associated with the DB50 drydock. Although McDermott's management believes that the expectations reflected in those forward-looking statements are reasonable, McDermott can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous uncertainties and risks, including without limitation, risks that the drydock schedule will not be implemented as planned. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these risk factors, please see McDermott's annual report on Form 10-K for the year ended December 31, 2004 and its reports on Form 10-Q which are filed quarterly.