McDermott Caspian Contractors, Inc. (McDermott), a subsidiary of J. Ray McDermott, S.A., was recently awarded a pipelay contract by the State Oil Company of the Azerbaijan Republic (SOCAR). The contract is for offshore gas pipeline installation in the SOCAR’s Bahar field in the Azerbaijan sector of the Caspian Sea.

“This is a fast-track project for SOCAR and a significant award for us,” commented Dan Houser, Vice President and General Manager, Caspian operations. “In the first quarter of this year, McDermott successfully completed our first gas pipeline installation for SOCAR in their Gunashli field. Cooperation with the Azerbaijani government and the State Oil Company was a key aspect of this success, and we are proud to continue to support the development of the oil and gas industry in Azerbaijan.”

Under the contract, McDermott is responsible for the construction of 66.5 km of 20” low pressure gas transport pipeline in up to 30 meters of water depth from the Gas Separation Station at the Oily Rocks to the Gas Measuring Unit in the Bahar field.

Pipelay work is scheduled to begin in the last quarter 2007. The pipelay barge Israfil Huseynov (PLBG) will be used for the pipeline installation.

McDermott Caspian Contractors, Inc. is the Caspian operating entity, and wholly owned subsidiary, of J. Ray McDermott, S.A., a subsidiary of McDermott International, Inc. (NYSE:MDR). J. Ray McDermott, S.A. and its subsidiaries provide engineering, construction, procurement, installation and project management services to offshore oil and gas developments worldwide.

McDermott International, Inc. (MII) is an engineering and construction company, with specialty manufacturing and service capabilities, focused on energy infrastructure. MII's customers are predominantly utilities and other power generators, major and national oil companies, and the United States Government. With its global operations, MII 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 the SOCAR’s gas pipeline installation 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 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.