PRESS RELEASE: June 19, 2006

J. Ray McDermott Awarded Kerisi Development Project Work

P.T. McDermott Indonesia, a subsidiary of J. Ray McDermott, S.A. (J. Ray), has won a project to construct the Kerisi Central Processing Platform (CPP) substructure weighing over 7,600MT. The project is part of the ongoing development of the Kerisi and Hiu fields located in the Indonesian sector of the Natuna sea. Projects of this type are typically valued at over US$20 million.

"J. Ray's involvement in this project strengthens its extensive record of supporting oil and gas development projects in Indonesia," commented Steve Roll, vice president and general manager, J. Ray's Asia Pacific operations.

The Kerisi contract will see J. Ray fabricate the 3,600MT CPP jacket along with piles weighing 2,600MT, a module support frame of 1,400MT, and a bridge connecting to the wellhead platform.

Work on the project has already started including construction engineering and procurement from J. Ray's Asia Pacific fabrication yard and marine base on Batam Island, Indonesia. Overall project completion is scheduled for the second quarter of 2007.

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For more information, please contact:

Louise Denly
Director, Public Relations
J. Ray McDermott, Inc.
Houston, TX
(281) 870-5000
E-Mail:ldenly@mcdermott.com
www.mcdermott.com