PRESS RELEASE: July 18, 2006

J. Ray McDermott Awarded Contract Offshore Qatar

J. Ray to supply two unmanned wellhead platforms and two intra-field pipelines for Al Khaleej Gas Development Phase 2 Offshore Expansion Project.

J. Ray McDermott Eastern Hemisphere Ltd. (J. Ray), a subsidiary of J. Ray McDermott, S.A., was awarded a contract by ExxonMobil Middle East Gas Marketing Ltd. to provide engineering, procurement, construction and installation (EPCI) services for two wellhead platforms and pipelines, as part of the Al Khaleej Gas (AKG) Development Phase 2 Offshore Expansion Project. Contracts of this type are typically valued at over US$300 million.

"With the award of the AKG Phase 2 project, our Middle East backlog continues to grow," said Hafez Aghili, senior vice president and general manager, Middle East and India.
"With increasing opportunities in Qatar's oil and gas market, future prospects are bright. We expect expansion in our regional operations this year, and are improving our production capacity to help meet industry demand."

The overall project requires J. Ray to provide EPCI services for two remote unmanned wellhead platforms, WH10 and WH11. The jackets were awarded to J. Ray in 2006 as part of the Al Khaleej Gas Development Phase 1 Offshore Expansion Project. Under the new AKG Phase 2 project, J. Ray will also perform EPCI of two intra-field pipelines that will connect the platforms with two 38" wet-gas export trunk-lines.

WH10 and WH11 will be connected to the existing RasGas Alpha Complex, by two separate composite power and fiber optic subsea communications cables.

Engineering will be carried out at J. Ray's engineering offices in Jebel Ali. Construction will begin by May 2007 at J. Ray's Jebel Ali yard, with installation of WH10 and WH11 scheduled for completion during 2009.

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For more information, please contact:

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

www.mcdermott.com