J. Ray McDermott Provides Operational Update

Front Runner Spar:
J. Ray has successfully installed the 6,220 short ton topsides on the Front Runner Spar hull and has commenced hook-up and commissioning activities. The Front Runner Spar is moored in 3,330 feet of water in the Gulf of Mexico Green Canyon block 338, approximately 100 miles south of Fourchon, Louisiana. The lift was completed using J. Ray's Derrick Barge 50 and Oceanic 93 ("Shear Leg Crane"). The Front Runner Project is operated by Murphy Exploration & Production with partners Dominion Exploration & Production and Spinnaker Exploration.

Argentina project:
Following completion of setting the final topside deck in Southern Argentina, J. Ray's Derrick Barge 60 ("DB60") has now completed its major pipelay and installation work associated with the project. The DB60, which has been in Argentina since May 2003, is now expected to be demobilized.

Recent awards:
J. Ray has been awarded a contract valued at approximately $47 million, by Apache Energy Ltd, a subsidiary of Apache Corporation, on behalf of the WA-214P joint venture participants, to procure, fabricate, transport and install the John Brookes platform and pipeline system offshore the North West Shelf in Western Australia. J. Ray will fabricate the jacket and piles at its Batam Island, Indonesia facility beginning in August 2004. Loadout of the substructure is expected to take place in January 2005. The pipeline and platform will be installed using J. Ray's combination Derrick Barge DB26 commencing mid January 2005.

Additionally, J. Ray has been awarded a contract by its Mexican joint venture company Construcciones Maritimas Mexicanas, S.A. ("CMM") valued at approximately $60 million. CMM received an award letter on May 18, 2004 for a transportation and installation contract valued at approximately $165 million. The contract between J. Ray and CMM calls for the charter of J. Ray's Derrick Barge 101, Shear Leg Crane and Intermac 404, as well as related engineering work.