J. Ray Wins North Belut Contract

A subsidiary of J. Ray McDermott, S.A. was awarded a $125-million contract during the fourth quarter of 2006 for the fabrication, offshore hook-up, and commissioning of the North Belut Central Processing Platform (CPP) topsides and a connecting bridge from the CPP to the Wellhead Platform.

The North Belut CPP Platform is a complex integrated deck and weighs approximately 13,000 metric tons. It will be built at J. Ray's construction facility on Batam Island, Indonesia.

"North Belut is the third significant integrated deck being fabricated in Batam in recent months - the first two being Arthit and Su Tu Vang," said Bob Deason, President and Chief Operating Officer of J. Ray. "The Batam facility has undergone recent upgrades which permits working on three major integrated decks simultaneously well within our capability."

Construction work has already begun with the initial focus on plate girders fabrication and cellar deck panel assembly. Within four months, an extension skidway will be built to support the structure with the first stack of the cellar deck sub assembly scheduled for June 2007. In all, there will be nine deck sub assembly stackings. At the peak of the construction, over 1,200 people are expected to work on the North Belut CPP. The project is expected to be completed in the fourth quarter of 2008.

McDermott International, Inc. is a leading worldwide energy services company. McDermott subsidiaries provide engineering, construction, installation, procurement, research, manufacturing, environmental systems, project management and facility management services to a variety of customers in the power and energy industries.

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