PRESS RELEASE: July 18, 2006

J. Ray to Install Australia's North West Shelf Angel Jacket

McDermott Industries (Aust) Pty Ltd., a subsidiary of J. Ray McDermott, S.A. (J. Ray), was recently awarded a contract by Woodside Energy Limited, operator of the North West Shelf (NWS) Venture, valued at approximately $200 million, for substructure and pipelay installation for the Venture's US$1.2 billion Angel platform development.

The Angel development will include the installation of the Venture's third major platform off Western Australia's North West Shelf. The remotely operated Angel platform will be in 80m of water and will be fully operational by the fourth quarter of 2008.

"We are delighted to have this opportunity to work with the NWS Venture and in particular its operator Woodside again," said Steve Roll, J. Ray's vice president and general manger, Asia Pacific operations. "This is the second contract we have undertaken for Woodside within the past 12 months.

The substructure and pipelay installation contract will involve transportation of the 7,500MT jacket and piles by J. Ray's launch barge Intermac 650 from a fabrication yard in China to the offshore installation site as well as the launch, upend and set down of the jacket. One of J. Ray's marine vessels will install the jacket and pipelines.

The offshore campaign will also involve the installation of a new subsea pipeline tied to the first trunkline about 49km west of the proposed Angel platform, and the installation of in-field flowlines.

"Our proven capability installing jackets with drilled and grouted foundations as well as pipelines, our extensive Australian experience, and ability to allocate world-class marine equipment provide the basis to make this project a success," said Hugh Cuthbertson, J. Ray's Australian general manager.

The scope of work set out by Woodside is ideally suited to the proven capabilities of J. Ray's marine equipment and project management group.

The drilled and grouted jacket foundation requires installation of eight primary and eight secondary piles in holes up to 3m in diameter. J. Ray's seasoned marine crew will install the 49km 30" export pipeline and the three in-field 14" CRA pipelines using in-house automated welding systems.

The project will be managed by J. Ray's office in Perth, Australia, supported by its regional headquarters in Singapore. Installation engineering will be supported by J. Ray's marine construction engineering group based in Dubai. The construction of drilling work decks, caissons and other items will be performed at the company's Batam Island fabrication facility in Indonesia.

The installation program is timed to ensure the jacket is installed before the cyclone season by the fourth quarter of 2007. The CRA pipelines and 30" pipeline installation will be completed during the first quarter of 2008.

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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