PRESS RELEASE: November 6, 2006

J. Ray McDermott Wins Pipeline Installation for Pearl GTL Project in Qatar

J. Ray McDermott Wins Pipeline Installation for Pearl GTL Project in Qatar

A subsidiary of J. Ray McDermott, S.A. (J. Ray) was awarded a contract by Qatar Shell GTL Limited to install over 126km of pipelines for the offshore segment of the Pearl GTL project.

Under the contract J. Ray will engineer, procure, construct and install two 30" diameter pipelines in Qatar's North field.

"This is the second contract J. Ray has won for the Pearl GTL project this year, said Hafez Aghili, J. Ray's senior vice president Middle East and India.
"Pearl GTL is one of the prime energy development initiatives within the region and we are pleased to play a part in the expansion of Qatar's position in the global energy market."

The offshore sections of the two pipelines from Pearl 1 and Pearl 2 wellhead platforms measure 64km and 52km respectively and will connect to two 6km onshore pipelines and receiver stations, linking to processing facilities onshore. Fiber optic cables will also be installed.

Mentor Subsea, J. Ray's pipeline engineering division, will commence work on the project in the fourth quarter of 2006. J. Ray will complete the Pearl 1 and Pearl 2 pipeline installation once the corresponding well head jackets have been installed. J. Ray was awarded the contract to engineer, construct, transport, install hook-up and pre-commission the Pearl 1 and Pearl 2 wellhead platforms in August this year.

The Pearl GTL project comprises the development of upstream gas production facilities and an onshore GTL plant that will produce 140,000 barrels per day of GTL products and approximately 120,000 barrels per day of condensate, liquefied petroleum gas and ethane. When completed, it will be the world's largest integrated GTL complex.

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For more information, please contact:

Louise Denly
Director, Public Relations
J. Ray McDermott, Inc.
Houston, TX
(281) 870-5025
E-Mail:ldenly@mcdermott.com
www.mcdermott.com