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 a contract by Ras Laffan Liquefied Natural Gas Company Limited (3) to provide engineering, procurement, construction and installation ("EPCI") services for new facilities in Qatar's North Field, as part of the Phase 2 Offshore Expansion Project. Contracts of this type are typically valued at approximately $0.5 billion. "RasGas is a valued client of J. Ray and its trust in our management, operations and quality of services explains the repeatability in our project work and the longevity of our relationship," said Bob Deason, President and Chief Operating Officer of J. Ray. "We are extremely familiar with the existing facilities and field location, having constructed all of RasGas' offshore platform facilities to date. This project truly highlights J. Ray's global capabilities as a dependable, world-class offshore solutions provider in managing such a large scale project." The Phase 2 Expansion Project includes two LNG processing trains, and the development of offshore facilities to supply feed gas produced from the North Field to the onshore LNG Train 6, and subsequently Train 7. J. Ray will perform the engineering, procurement, construction and installation of two sets of topsides for the Train 6 remote unmanned wellhead platforms WH6 and WH8, weighing approximately 2,200 short tons each; the jackets of which J. Ray recently engineered and installed under the Phase I expansion project. The project also requires EPCI of two 38" wet-gas export trunk-lines and risers, approximately 62 miles long, from WH6 and WH8 to onshore receiving facilities. Two separate combined power and fiber optic subsea communications cables will be installed to connect the existing RasGas Alpha Complex to the two new platforms, WH6 and WH8. The cable length to WH6 will be approximately 16 miles and approximately 21 miles to WH8. J. Ray's work on Train 7 facilities initially will be limited to hook-up and mechanical completion of additional wells on existing live gas production platforms. J. Ray will execute the project with an integrated team from the Middle East and the USA. 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 value of the RasGas contract award and expected work scope. 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. 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.