MDR McDermott International Inc

McDermott International, Inc. (NYSE:MDR) ("McDermott") announced today that a subsidiary of J. Ray McDermott, S.A. ("J. Ray"), was recently awarded a contract by ExxonMobil Middle East Gas Marketing Ltd. to provide engineering, procurement, construction and installation ("EPCI") services for two wellhead platforms and pipelines, as part of the Al Khaleej Gas ("AKG") Development Phase 2 Offshore Expansion Project. Contracts of this type are typically valued at over US$300 million. The overall project requires J. Ray to provide EPCI services for two remote unmanned wellhead platforms, WH10 and WH11. The jackets were previously awarded to J. Ray as part of the Al Khaleej Gas Development Phase 1 Offshore Expansion Project. Under the new AKG Phase 2 project, J. Ray will also perform EPCI of two intra-field pipelines that will connect the platforms with two 38" wet-gas export trunk-lines. WH10 and WH11 will be connected to the existing RasGas Alpha Complex, by two separate composite power and fiber optic subsea communications cables. Engineering will be carried out at J. Ray's engineering offices in Jebel Ali. Construction will begin by May 2007 at J. Ray's Jebel Ali yard, with installation of WH10 and WH11 scheduled for completion during 2009. McDermott International, Inc. is a leading worldwide energy services company. McDermott subsidiaries provide engineering, construction, installation, procurement, research, manufacturing, environmental systems, project management and facility management services to a variety of customers in the power and energy industries, including the U.S. Department of Energy. Additional information on McDermott can be obtained at www.mcdermott.com. 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 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, among other things, the work scope, timing and the typical award value associated with the Al Khaleej Gas Development Phase 2 Offshore Expansion 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 based on various underlying assumptions and are subject to numerous uncertainties and risks, including without limitation change orders and other modifications to contracts. 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, 2005 filed with the Securities and Exchange Commission.