J. Ray McDermott, S.A. (’J. Ray’), a subsidiary of McDermott International, Inc. (NYSE:MDR) (’McDermott’), announced today that it was awarded a project for the P-61 Tension Leg Wellhead Platform (“TLWP”) for the Papa Terra Joint Venture, consisting of Petrobras and Chevron. J. Ray’s scope is part a larger project, comprising design, engineering, construction, transportation, installation, and a three-year limited operations contract, that was awarded to FloaTEC Singapore Pte, Ltd. (“FloaTEC Singapore”), a joint venture between Keppel FELS Ltd.

(“Keppel FELS”) and J. Ray. Almost all the work will be carried out through the combined resources of Keppel FELS, J. Ray and FloaTEC LLC (“FloaTEC”), the US-based joint venture company that will perform global engineering and basic design work. The value of J. Ray’s project will be included in McDermott’s Offshore Oil and Gas Construction segment backlog during the first quarter of 2010.

“This project combines the proprietary technology, global engineering excellence, project management, construction resources and broad industry experience of three leading offshore specialists to provide the right deepwater solution for this challenging deepwater environment”

“This project combines the proprietary technology, global engineering excellence, project management, construction resources and broad industry experience of three leading offshore specialists to provide the right deepwater solution for this challenging deepwater environment,” said Stephen Johnson, President and Chief Executive Officer of J. Ray McDermott.

The TLWP will be constructed by Keppel FEL’s BrasFELS yard in Angra dos Reis, Brazil. J. Ray will fabricate the tendons, temporary buoyancy modules and piles at J. Ray’s Morgan City facility in Louisiana. The FloaTEC Singapore joint venture will supply risers, well systems and tendon components, and J. Ray will install the facility in the Papa Terra field using its Derrick Barge 50, a specialized deepwater construction vessel. J. Ray will also provide topsides engineering, and procurement services. The project is targeted for completion by mid-2013.

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.

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 scope, execution, and timing associated with the Papa Terra 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, changes in project design or schedules, contract cancellations, change orders and other modifications, and difficulties executing on the project. 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 December 31, 2008, and subsequent quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission.

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Source: Business Wire

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