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 two new contracts to provide installation services. Both awards are part of field development activities by India's Oil and Natural Gas Corporation Ltd. ("ONGC"). The first contract, awarded by Samsung Heavy Industries Co. Ltd., is for the installation of an eight-leg 3,516MT jacket, with 16 skirt piles, four 72" diameter main piles, pipeline spools, two bridges, six decks and modules weighing around 1,100MT each. This project is part of ONGC's Vasai East Development expansion of the Bassein East oil field situated east of the existing South Bassein gas field, 50 miles north-west of Mumbai. Projects of this type are typically valued at over $35 million. Installation will be carried out in the last quarter of 2007, by one of J. Ray's derrick barges. The second contract, awarded by Larsen & Toubro Limited involves installation of four wellhead platforms, three connecting bridges, and two subsea pipelines in the Mumbai High and Bassein fields for ONGC's MH-B and S-4 Wellhead Platform project. Contracts of this type are typically valued at over $45 million. The four wellhead platforms will be installed in an average water depth of 200 feet. Three of these platforms, NEA, NHA and N2A, will be installed in the Mumbai High field, and the fourth platform, BF, will be located in the Bassein field. All jackets consist of 64" and 66" diameter main piles. J. Ray will also install three bridges to connect the existing platforms to the new well heads. Structural installation will begin before the end of the year, and J. Ray's in-house engineering department will handle the construction engineering. The entire project is due for completion by the end of the first quarter of 2007. 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 value associated with two ONGC projects. 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 and the Company's quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.