McDermott International, Inc. (NYSE: MDR) (“McDermott”) announced one of its subsidiaries was awarded a contract to upgrade and enhance a water injection system for Abu Dhabi Marine Operating Company (ADMA-OPCO) in the Zakum field. The contract value is expected to be approximately $350 million and is included in McDermott’s second-quarter 2010 bookings.

Located approximately 48 nautical miles north-west of Abu Dhabi in the United Arab Emirates, the field includes five water injection platform modules at Zakum West Super Complex and two modules at Zakum Central Super Complex which are used to maintain pressure in the surrounding wells.

“This is a significant award for McDermott and we are delighted to have this opportunity to work with ADMA-OPCO again, who is a key player in the Abu Dhabi market,” said Steve Johnson, President and Chief Executive Officer of McDermott. “Our ability to provide a sound technical solution, backed by our regional capabilities in providing fabrication, marine and manpower resources has helped us secure this prestigious award. We look forward to building a long lasting working relationship with ADMA-OPCO.”

The project falls into two parts: pressure upgrade and capacity upgrade.

The pressure upgrade involves installation of new pumps, piping and transformers, the modification of existing instrumentation and equipment and structural reinforcement work of the existing water injection modules at both the Zakum Central Complex and the Zakum West Super Complex.

The capacity upgrade will take place on Zakum Central Super Complex and involves the engineering, procurement and construction of a new 3,250-tonne deck that will house the new water treatment and injection system, power generation equipment and six-legged jacket.

Engineering will commence immediately with the pressure and capacity upgrades planned for completion within the second quarter 2012. Installation will be carried out using vessels from McDermott’s regional fleet.

ABOUT McDERMOTT

McDermott is a leading engineering, procurement, construction and installation (“EPCI”) company focused on executing complex offshore oil and gas projects worldwide. Providing fully integrated EPCI services for upstream field developments, the Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning. McDermott’s customers include national and major energy companies. Operating in more than 20 countries across the Atlantic, Middle East and Asia Pacific, the Company’s integrated resources include more than 16,000 employees and a diversified fleet of marine vessels, fabrication facilities and engineering offices. McDermott has served the energy industry since 1923.

To learn more, please visit McDermott’s website on the internet at www.mcdermott.com

FORWARD LOOKING STATEMENTS

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 expected value, scope, execution, and timing associated with this 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, changes in project design or schedules, contract cancellations, change orders and other modifications, and difficulties executing on the project. 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 and other risk factors, please see McDermott's annual report on Form 10-K for the year ended December 31, 2009.

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