MDR McDermott International Inc

McDermott International, Inc. (NYSE:MDR) ("McDermott") announced today that a subsidiary of J. Ray McDermott, S.A. ("J. Ray") was awarded a contract by Qatargas Operating Company Limited ("Qatargas") to provide engineering, procurement and installation services for the Common Condensate SPM Facilities Project, offshore Qatar. Contracts of this type are typically valued at approximately $100 million. "Our working history with Qatargas goes back to 1996 when we completed the first Qatargas Upstream Development," said Bob Deason, President and Chief Operating Officer of J. Ray. "With the anticipated growth of Qatar's oil and gas future, we are proud to continue providing support to its development program." The facilities, once completed, will allow the export of condensate from Ras Laffan through two SPM CALM loading buoys, approximately 54 kilometers offshore, via a 42" diameter pipeline. J. Ray will support the project by providing detailed engineering services for the pipeline. Design work will be performed both in Jebel Ali and Houston by J. Ray's specialist engineering subsidiary, Mentor Subsea. In addition to the pipeline, J. Ray will install two SPM CALM buoys and pipeline end manifolds and three fiber optic cables, supplied by Qatargas. McDermott International, Inc. is a leading worldwide energy services company. McDermott subsidiaries provide engineering, construction, installation, procurement, research, manufacturing, environmental systems, project management and facility management services to a variety of customers in the power and energy industries, including the U.S. Department of Energy. Additional information on McDermott can be obtained 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 the typical award value associated with the Qatargas 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, 2005 filed with the Securities and Exchange Commission.