J. Ray McDermott: Press Release

J. Ray McDermott (“J. Ray”) announced today that it has been awarded a contract by Qatargas 3 and Qatargas 4 for the construction engineering, transportation and installation of two 38” diameter pipelines, totaling 130 kilometers in length, and two 22" diameter interconnecting pipelines, in Qatar’s North Field. The pipelines will connect three wellhead platforms, WHP7, WHP8 and WHP9, with the onshore facilities at Ras Laffan Industrial City.

“Winning this project signifies our customer’s confidence in our capabilities to handle major projects with successful results,” said Bob Deason, Chief Executive Officer of J. Ray. “Construction work is already underway on the three associated wellhead topsides that were awarded to J. Ray in 2006. As such, J. Ray will offer the customer greater synergies for the pipeline project, based on our project team’s experience with the topsides contract.”

The project will be executed by J. Ray’s Jebel Ali (United Arab Emirates) based project team and marine equipment. The scope of work also involves laying a total of 138km of combined power and fibre-optic cables interconnecting the wellhead platforms with the onshore facilities, as well as two 0.5km long 22” diameter intra-field pipelines. These intra-field pipelines are fabricated with Corrosion Resistant Alloy material.

J. Ray McDermott, S.A. is a leading provider of solutions for the offshore field development industry worldwide and is a subsidiary of McDermott International, Inc. McDermott is an engineering and construction company, with specialty manufacturing and service capabilities, focused on energy infrastructure. McDermott’s customers are predominantly utilities and other power generators, major and national oil companies, and the United States Government. With its global operations, McDermott operates in over 20 countries with more than 20,000 employees, and can be found on the internet at www.mcdermott.com.

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott International, Inc. cautions that statements in this press release which are forward-looking and provide other than historical information involve risks and uncertainties that may impact McDermott’s actual results of operations. The forward-looking statements in this press release include, among other things, the work scope and timing of Qatargas 3 & 4 projects, as well as the synergies provided to the customer. Although McDermott’s management believes that the expectations reflected in those forward-looking statements are reasonable, McDermott can give no assurance that those expectations will prove to have been correct. Those statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including without limitation change orders and other modifications to contracts. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these risk factors, please see McDermott’s annual report on Form 10-K for the year ended December 31, 2006 filed with the Securities and Exchange Commission.

Louise Denly
Director, Corporate Communications
J. Ray McDermott,
Houston, Texas 77079
281 870 5025
E-mail: ldenly@mcdermott.com