J. Ray Wins Major Offshore Contract from Saudi Aramco

McDermott International, Inc.

McDermott International, Inc. confirmed Tuesday that its subsidiary, J. Ray McDermott, S.A., was awarded a four-year project by Saudi Aramco to engineer, procure, construct, install, hook-up and commission the Manifa Field Facilities in the Arabian Gulf.

"It's a matter of great pride for us to be associated with this significant project," said Bob Deason, President and Chief Operating Officer of J. Ray. "Saudi Aramco is a long-term and valued customer. Our safe delivery of past structures won us recognition from them last year; and we expect to achieve high safety and quality performance on the Manifa project as well."

The Manifa project is scheduled to commence engineering in May 2007. J. Ray will engineer from its regional headquarters in Jebel Ali, U.A.E. as well as from its engineering office in Chennai, India, established last year. The fabrication of platforms, with a combined weight of over 16,700 metric tons, will begin at the Jebel Ali facility in September 2007.

The project also includes modification work that entails design, procurement, installation, hook-up and commissioning of communication packages on 26 existing platforms.

"We recently embarked on an ambitious development plan for our fabrication facility at Jebel Ali. The plan involves capacity expansion and deployment of additional equipment, resulting in an increase in both efficiency and workable man-hours. Together with our experienced project team, we are well-prepared to successfully execute the Manifa project," continued Deason.

The project is expected to be competed by 2011. During this four year period, J. Ray's marine vessels will carry out the offshore construction and hook-up of the facilities in several campaigns.

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 20,000 employees.


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