McDermott International, Inc. (NYSE: MDR) (“McDermott”) announced today that one of its subsidiaries has been awarded a fabrication contract for components of a deepwater platform in the Gulf of Mexico, by Heerema Marine Contractors Nederland BV.

McDermott will construct 16 tendon buoyancy modules (“TBMs”) for the deepwater project, which will be used during offshore installation of the platform, approximately 225 miles south of New Orleans in waters up to 5,185 feet deep.

“McDermott’s high quality fabrication procedures for deepwater projects meet the demanding customer specifications for delivery of structures,” said Stephen M. Johnson, Chairman, President and Chief Executive Officer of McDermott. “Additionally, our HSES practices are closely aligned with the stakeholders on the project team,” said Johnson.

McDermott will carry out procurement, fabrication and loadout of the TBM structures from its Morgan City facility in Louisiana. Consisting of an upper and lower module, each TBM is designed to be interchangeable as either an upper or a lower module. Fabrication work is expected to commence during the second quarter of 2012.

A McDermott subsidiary has also been awarded a design engineering and procurement management contract, by VAALCO Gabon Inc., for the Etame platform and a design engineering contract for a potential Southeast Etame / North Tchibala (SEENT) platform, both located offshore Gabon, West Africa.

“McDermott’s Houston-based engineering teams have a track record of designing structures for the West Africa market,” said Johnson. “Our early planning activities and knowledge of the technical issues that may arise during the design scope, coupled with our unique understanding of fabrication and installation constructability requirements, allowed us to develop a robust design proposal for VAALCO,” said Johnson.

The new oil and gas wellhead production platform(s) will be located in the Etame Marin block off the coast of Gabon and will be engineered to produce oil and gas.

VAALCO has requested McDermott’s engineering team to design a safe, reliable and predictable production facility that will minimize operational and maintenance issues. It is anticipated that engineering activities will be supported by a combination of technical and commercial personnel focused on identifying and specifying the materials and services necessary to help ensure project execution excellence.

Detailed engineering is already underway at the McDermott Houston engineering office.

The values of both these contract awards will be included in McDermott's second quarter 2012 backlog.

ABOUT McDERMOTT

McDermott is a leading engineering, procurement, construction and installation group of companies 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, our integrated resources include approximately 13,500 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 scope, execution and timing associated with these 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, changes in project design or schedules, contract cancellations, change orders and other modifications, and difficulties executing on the projects. 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, 2011 and subsequent quarterly reports on Form 10-Q. This news release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.

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