J. Ray McDermott: Press Release

J. Ray McDermott, S.A. (“J. Ray”), a subsidiary of McDermott International, Inc. is pleased to announce that, after a protracted bid, evaluation and award process, it has been awarded the Karan Offshore Platforms and Subsea Pipelines project by Saudi Aramco. The project involves work in Saudi Arabia itself and outside the Kingdom. Once completed, the facility will have a production capacity of 1,800 MMSCFD of raw sour Khuff gas.

“J. Ray McDermott has been a consistent contractor for Saudi Aramco over the last 40 years,” said Stewart Mitchell, Vice President and General Manager for J. Ray’s Middle East and India operation. “Our first successful collaboration was in 1972, in the Safaniya Field, and most recently with the Long Term Agreement and Maintain Potential projects. We believe that our familiarity with Saudi Aramco’s standards has enabled us to maintain our high ranking in their technical evaluations and our ability to win repeat business is the reward for consistently delivering excellence on Saudi Aramco projects.”

“This most recent award is a significant project, comprising four wellhead complexes each of which has a wellhead platform topside with gas, chemical injection, and controls facilities as well as a bridge connected auxiliary platform, associated flare bridges and stacks. The four wellhead complexes are clustered around a tie-in platform with similar facilities. The project also includes intrafield pipelines as well as 110 Km trunkline to the shore and all subsea power distribution cables,” said Ed Gedeon, J. Ray McDermott’s Vice President for Middle East Projects.

J. Ray’s Middle East will undertake the turnkey aspects of the project from its headquarters in Jebel Ali.

The fabrication scope amounts to topsides and jackets weighing a total of 27,000 metric tons and will utilize J. Ray’s new cladding facility in Jebel Ali, which, with its state-of-the-art computerized vertical and horizontal cladding systems, is capable of welding high integrity corrosion resistant alloys. J. Ray will also perform all of the offshore installation work.

J. Ray McDermott, S.A., a subsidiary of McDermott International, Inc. (NYSE:MDR), and its subsidiaries provide engineering, construction, procurement, installation and project management services for offshore oil and gas developments worldwide.

McDermott International, Inc. 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 which provide other than historical information, involve risks and uncertainties that may impact actual results. The forward-looking statements in this press release include statements regarding the scope and execution of the listed Aramco projects. 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, including, but not limited to, the risk that McDermott may experience delays, changes, cancellations or other difficulties executing such 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 and other risk factors, please see McDermott's annual report on Form 10-K for the year ended 31 December 2008.