PRESS RELEASE: June 28, 2006

J. Ray McDermott to Develop Qatargas Offshore Facilities

J. Ray McDermott Eastern Hemisphere Ltd. (J. Ray), a subsidiary of J. Ray McDermott, S.A., was awarded a contract by Qatargas Operating Company Limited (Qatargas) to provide engineering, procurement and installation services for the Common Condensate SPM Facilities Project, offshore Qatar. Contracts of this type are typically valued at approximately US$ 100 million.

"Our working history with Qatargas goes back to 1996 when we completed the first Qatargas Upstream Development," said Hafez Aghili, senior vice president and general manager, Middle East and India. "With the anticipated growth of Qatar's oil and gas future, we are proud to continue providing support to the country's development program."

The facilities once completed will allow the export of condensate from Ras Laffan through two SPM CALM loading buoys, approximately 54kms offshore, via a 42" diameter pipeline. J. Ray will support the project by providing detailed engineering services for the pipeline. Design work will be performed both in Jebel Ali and Houston by J. Ray McDermott's specialist engineering subsidiary, Mentor Subsea . In addition to the pipeline installation, J. Ray will perform the installation of two SPM CALM buoys and pipeline end manifolds and three fiber optic cables, supplied by Qatargas.

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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