J. Ray McDermott, S. A. (“J. Ray”) announces that its subsidiary PT. McDermott Indonesia (PTMI) was awarded a contract to construct the North Rankin B (“NRB”) Platform Substructure and Piles by Woodside Energy Limited for the North Rankin Redevelopment project.

The scope of work for this contract includes the fabrication and loadout of the 22,000MT jacket (including buoyancy tanks), 18,900MT of piles and the bridge link (approximately 100m long) to the North Rankin A Platform. Contracts of this nature are typically valued in excess of US$100 million.

“Completing the NRB substructure will be a major milestone for our Batam Island, Indonesia facility as this will be the largest jacket ever built in the Southeast Asia region,” said Scott V. Cummins, Vice President and General Manager, Asia Pacific

“This award confirms our strong working relationship with Woodside. Their decision to award us this project underscores Woodside’s confidence in our ability to deliver large structural projects on time.” 

The North Rankin Redevelopment Project will provide additional compression to unlock low pressure reserves from the North Rankin and Perseus gas and condensate fields off Karratha, Western Australia.

The NRB project, once completed will ensure continued gas supplies to the North West Shelf Venture’s liquefied natural gas facilities.

Construction work will be performed at J. Ray’s facility on Batam Island, and is expected to begin in the fourth quarter of 2008. At the peak of construction, 1,300 people are expected to work on the project.

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 typical contract value, the project execution and timing of the Woodside North Rankin B Jacket. 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, 2006 and its quarterly reports on Form 10-Q.