McDermott Awarded Subsea Contract for Macedon Proj.

McDermott announced the award of a significant subsea contract to its Australian subsidiary for a deepwater offshore engineering and construction project, including structural transportation and installation of subsea infrastructure. The new contract for work offshore Western Australia is included in the company's second quarter 2011 backlog.

"We are extremely pleased to win this significant subsea award in the Asia Pacific segment as it reinforces McDermott's strengthening position in subsea construction projects," said Stephen M. Johnson, McDermott's Chairman, President and Chief Executive Officer. "We are also gratified by our customer's confidence in providing McDermott with the opportunity to demonstrate our growing expertise in reliably delivering complex deepwater projects within a challenging time frame."

The award is for the Macedon Gas Project, situated in the Pilbara region of Western Australia, which will be McDermott's first SURF (Subsea, Umbilicals, Risers and Flowlines) project in Australia. McDermott will carry out detailed engineering, procurement, fabrication, transportation and installation of a 77 kilometer, 20-inch diameter pipeline and will install subsea umbilicals and flexible flowlines using vessels from the company's globally diverse fleet in water depths up to 180 meters.

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