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 an engineering, procurement, construction, and installation contract for three wellhead topsides bound for Qatar's North field, for the Qatargas 3 and Qatargas 4 offshore projects. "It's an honor for us to be selected by the Qatargas 3 and 4 ventures for this project, which follows the award of the jacket fabrication work earlier this year," said Bob Deason, President and Chief Operating Officer of J. Ray. "There is significant potential for oil and gas field development in Qatar and every project award strengthens our experience and market position in the region." J. Ray will design, purchase materials, construct, transport, install, hook-up, and mechanically complete three wellhead decks, WHP7, WHP8 and WHP9, each weighing approximately 2,100MT. Engineering and procurement has recently commenced and construction is expected to begin by April 2007 at J. Ray's Jebel Ali fabrication facility. All three well head decks are anticipated to be complete by the last quarter of 2008. About Qatargas 3 and Qatargas 4 Qatargas 3 is an integrated project, jointly owned by Qatar Petroleum (68.5%), ConocoPhillips (30%) and Mitsui (1.5%). Qatargas 4 will be implemented through a joint venture between Qatar Petroleum (70%) and Shell (30%). Each project comprises upstream gas production facilities to produce approximately 1.4 billion cubic feet per day of natural gas, including an average of approximately 70,000 bbl/d of Liquefied Petroleum Gas and condensate combined from Qatar's North Field over the 25-year life of the project. The projects will each include a 7.8 million tonnes-per-annum LNG train. The first LNG cargos from Qatargas 3 are expected to be delivered in 2009. First LNG cargos from Qatargas 4 are scheduled for around the end of the decade. 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 and timing associated with the Qatargas 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 its quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.