J. Ray McDermott Awarded East India Oilfield Contract

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Jan 26, 2007

McDermott International, Inc. (NYSE:MDR) ("McDermott") announced today subsidiaries of J. Ray McDermott, S.A. ("J. Ray") were awarded the KG-D6 field development project by Reliance Industries Limited to supply and install a 12,000 metric ton ("MT") control riser platform.

"It's an honor for us to have been selected for this major initiative contributing to the development of India's offshore oilfields," said Bob Deason, President & Chief Operating Officer of J. Ray. "J. Ray's business with Reliance dates back to the early 1990s, and we are pleased to continue the relationship by working together on the ambitious KG-D6 project."

J. Ray will utilize its resources from around the world. Facilities in Jebel Ali, UAE, Houston, Texas and Morgan City, Louisiana will collaborate to perform the schedule-driven project. From first steel cut to project completion is expected to take approximately 18 months, with hook-up and pre-commissioning to complete by the end of the first quarter of 2008.

Detailed design and engineering will be conducted by J. Ray's engineering division in Houston, with procurement handled through J. Ray's Houston and Jebel Ali offices for the supply of the platform.

"Due to the completion timeline, we have split the construction work scope between two fabrication yards," continued Deason. "Our Morgan City facility will handle the fabrication of the jacket weighing approximately 7,500 MT, while the 4,700 MT topside plus 4,500 MT of piles and appurtenances will be built at Jebel Ali."

By the third quarter of 2007, the jacket from Morgan City will be loaded on to a fast transport vessel destined for India. All installation work will be carried out by J. Ray's in-house marine fleet.

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