J. Ray McDermott wins Vietnamese engineering, procurement, and installation contract
Source: 07-OCT-2008 Intellasia | Business Wire
Oct 7, 2008 - 7:00:00 AM McDermott International, Inc. ("McDermott") announced today that a subsidiary of J. Ray McDermott, S.A. ("J. Ray") was recently awarded a subcontract by PTSC Mechanical & Construction Co Limited, a wholly-owned subsidiary of Petroleum Technical Services Corp ("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. Contracts of this nature are typically valued in excess of US$90 million.

The new development lies approximately four miles northeast of the existing Su Tu Den facilities, and includes the installation of a wellhead platform, 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 recognises our cost effective installation capabilities and our vessels' flexibility to switch from pipeline installation to subsea and above surface facility installation," said Bob Deason, Chief Executive Officer of J. Ray.

Deason added, "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 performed the front end engineering design of the development for Cu 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 J. Ray's operations group in Jakarta, Indonesia.

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.

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 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 value, scope and execution of 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 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 materialise, 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 December 31, 2007.

Contact:

McDermott International, Inc.

Investor Relations & Corporate Communications

Jay Roueche or Robby Bellamy, 281-870-5011

www.mcdermott.com