MDR McDermott International Inc

McDermott International, Inc. (NYSE:MDR) ("McDermott"), announced today that a subsidiary of J. Ray McDermott, S.A. ("J. Ray") has been awarded the transportation and installation of the In-Field Flowlines, including the associated pipeline end terminations (PLETs) and steel catenary risers (SCRs), for Chevron's Tahiti Project in the Gulf of Mexico. The scope of work includes the installation of two 6" and four 9" in-field flowlines. All six flowlines will be installed with a PLET assembly near the associated drill center manifold including static flowline segments and in-line buoyancy, which will transition into an SCR that terminates at the Tahiti Spar. The work is expected to be performed by the Derrick Barge 50 in 2007. The Tahiti development consists of a truss Spar located in Green Canyon Block 641 in 4,000' water depth, the Production Drill Center North (PN) located in Green Canyon Block 596, the Production Drill Center South (PS) in Green Canyon Block 640 and a Discovery Well located in Green Canyon Block 640. At Chevron's option, the transportation and installation of the PN and PS manifolds together with an additional gravity-based tie-in sled located adjacent to the Discovery Well may be included as part of the scope of work. Chevron is expected to determine whether J. Ray will perform these additional activities in early 2006. J. Ray 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 project scope and expected timing of work on the Tahiti project. 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 timing schedule will not occur as expected. 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.