MDR McDermott International Inc

McDermott International, Inc. (NYSE:MDR) (�McDermott�) announced today that its subsidiary, J. Ray McDermott, S.A. (�J. Ray�), has been awarded a seven-year project by Saudi Aramco to provide engineering, procurement, construction, and installation for the Offshore Maintain Potential Program in Saudi Arabia. The project is known in the industry as the �Long Term Agreement� or �LTA�. �We have worked in Saudi Arabia and the Middle East for more than 45 years, and this is the largest project we�ve ever undertaken for Saudi Aramco,� said Bob Deason, Chief Executive Officer of J. Ray. �Saudi Arabia has significant plans to increase oil production to meet the world�s rapidly growing energy demand and our contribution in developing the facilities under the LTA will play a vital role in helping Saudi Aramco meet that commitment.� The LTA project consists of several packages that will be awarded over the coming years. The first package consists of 13 jackets, 11 decks and one tie-in platform. In this first package, J. Ray will procure and construct over 17,500 metric tons of structures at its Jebel Ali facility that will be installed in water depths of 14 meters through 55 meters. In addition, the company will install 12 pipelines totaling 70 kilometers in length and six subsea cables totaling 53 kilometers. All work will be performed by J. Ray�s marine vessels in the Zuluf, Safaniya, Marjan, and Karan fields, offshore Saudi Arabia. J. Ray�s scope under the first package is scheduled for completion by 2009. Subsequent packages under the LTA will be confirmed over the coming years on an annual basis as Saudi Aramco finalizes their development plans and budget allocations. 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 expected work scope and timing of the Saudi Aramco Long Term Agreement. 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 filed with the Securities and Exchange Commission.