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 Arthit Processing Platform ("APP") contract by PTT Exploration and Production and Production Public Company Limited ("PTTEP"). APP is part of the Arthit Field Development Project in the Gulf of Thailand. The contract is valued at approximately $110 million. "APP has been a key prospect for our company since its inception, and we are extremely pleased to be awarded this comprehensive project by PTTEP," said Bob Deason, President and Chief Operating Officer of J. Ray. "This award provides a welcome addition to our backlog at our Batam Island fabrication facility, and confirms the suitability and competitiveness of our group assets." The project scope includes procurement, fabrication, transportation, installation, hook-up and pre-commissioning of the APP topsides, equipped with production and processing facilities, weighing approximately 17,600 short tons. Fabrication work commenced in the third quarter of 2005 at J. Ray's Batam Island fabrication facility. Offshore installation of the structure will be performed with J. Ray's marine vessels using float-over technology. Drawing on J. Ray's worldwide engineering resources, construction engineering of the deck will be undertaken by the company's Batam Island facility, installation engineering will be performed by J. Ray's Jebel Ali marine group, and the engineering for the float-over component design will be executed at J. Ray's Houston office. 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 dollar value of the APP contract and the expected work scope of the APP contract. 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.