PT. McDermott Indonesia, a subsidiary of J. Ray McDermott, S.A. (J. Ray), has won a contract from ConocoPhillips to fabricate the North Belut Central Processing Platform (CPP) jacket.

 J. Ray will undertake procurement of tertiary steel, construction engineering and fabrication of the eight-leg steel jacket weighing approximately 4,900MT, as well as appurtenances and piling.

 “We are pleased to continue our involvement with the North Belut project with the fabrication of both the North Belut CPP jacket and topsides”, said Steve Roll, J. Ray's vice president and general manager, Asia Pacific operations.

 Fabrication is being done at J. Ray’s Batam Island facility in Indonesia. The jacket is expected to be ready for load out by the second quarter of 2008. At peak over 1,000 craftsmen will be involved in the construction of the CPP jacket and topsides.

 During the fourth quarter of 2006 J. Ray was awarded the fabrication, offshore hook-up and commissioning contract for the 13,000-metric ton CPP integrated topsides and connecting bridge from the CPP to the Wellhead Platform.

 The North Belut field is located in Block B of the Indonesian sector of the Natuna Sea, approximately 60 kilometers east-northeast of the Belanak FPSO installed in the Belanak Field. 

 

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”). 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 which 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 statements concerning the value, and project execution, of the North Belut CPP Jacket Construction project. 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 by using various underlying assumptions and are subject to numerous uncertainties and risks.  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, 2005 and its quarterly reports on Form 10-Q.