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J. Ray McDermott Awarded Pipeline Project in Vietnam

Posted on: Tuesday, 26 June 2007, 18:06 CDT

McDermott International, Inc. (NYSE:MDR) ("McDermott") announced today that a subsidiary of J. Ray McDermott, S.A. ("J. Ray") has been awarded a contract by PV Gas for the new 16" Su Tu Vang to Rang Dong Gas Pipeline in the Cuu Long Basin.

The offshore installation work will be performed in 2008 using one of J. Ray's Asia Pacific-based combination derrick/pipelay barges. The first gas production into the new pipeline is targeted on or before October 15, 2008.

"This is the first opportunity for J. Ray to work directly with PV Gas in Vietnam. J. Ray is delighted at being selected for this fast track contract and we look forward to extending our record of completing projects in Vietnam to our customer's full satisfaction," said Bob Deason, Chief Executive Officer of J. Ray.

J. Ray's scope of work includes engineering, procurement and installation of approximately 45 kilometers of 16" subsea pipeline originating at the outlet flange of the subsea isolation valve at Cuu Long Joint Operating Company's Su Tu Vang Central Processing Platform and ending at Japan Vietnam Production Company's Rang Dong platform. A new subsea pipeline end manifold will be installed to connect the new pipeline to the existing Rang Dong to Bach Ho pipeline system.

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 the Rang Dong Gas Pipeline 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.

Source: Business Wire

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