J. Ray McDermott Far East Inc., a subsidiary of J. Ray McDermott, S.A. (“J. Ray”), was recently awarded a subcontract by PTSC Mechanical & Construction Company Limited (PTSC M&C), a wholly-owned subsidiary of Petroleum Technical Services Corporation (PTSC) to engineer, procure and install certain offshore facilities for the Su Tu Development - Su Tu Den North East project, located in Block 15-1 offshore Vietnam and operated by Cuu Long Joint Operating Company.  Subcontracts of this nature are typically valued in excess of US$90 million.

The new development lies approximately seven kilometers northeast of the existing Su Tu Den facilities, and includes the installation of a wellhead platform (WHP-B), several infield pipelines and a composite power/fiber optic submarine cable. The new facilities will tie back to an existing infrastructure in the Su Tu Den and Su Tu Vang fields.

“We are pleased to receive this significant award, and look forward to working once again with PTSC, who clearly recognizes our cost effective installation capabilities and our vessels’ flexibility to switch from pipeline installation to subsea and above surface facility installation,” said Scott Cummins, Vice President and General Manager, Asia Pacific.

“Since we began our relationship with PTSC in Vietnam in 2001, we have undertaken a number of engineering, procurement and installation projects together. In early 2007, J. Ray’s Jakarta operations performed the front end engineering design of the Su Tu Den North East development for Cuu Long Joint Operating Company, the same facilities we will be installing under this contract.”

Project management, detailed engineering including follow on engineering, procurement of all pipeline materials, pipe coating, and procurement support to PTSC will be carried out through the J. Ray operations group in Jakarta, Indonesia.

Amongst facilities to be installed will be a four-pile, 12-slot wellhead platform (WHP-B), 24-inch three-phase production pipeline from WHP-B to an existing PLEM near existing Wellhead Platform A (WHP-A), an extension to a 16-inch water injection pipeline from the Su Tu Vang Central Processing Platform (SV CPP) to WHP-B, an extension to the 10-inch gas lift pipeline from the SV CPP to WHP-B, including subsea tie-in spools for all pipelines at both ends. In addition a composite power/fiber optic submarine cable from WHP-A to WHP-B will also be installed.

Transportation and installation of all structures, pipelines and subsea cable, will be performed during two offshore campaigns; the first during the second quarter of 2009 and the second during the second quarter of 2010. Vessels from J. Ray’s fleet will install the work offshore.

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 25,000 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, value, work scope, and timing associated with the Su Tu Den 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, cancellation, 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, 2007 filed with the Securities and Exchange Commission.