J. Ray to Acquire Secunda Assets

McDermott International, Inc. said that an affiliate of its subsidiary, J. Ray McDermott, S.A. ("J. Ray"), has signed a definitive agreement to purchase substantially all of the assets of Secunda International Limited, including 14 harsh-weather, multi-functional vessels, with capabilities which include subsea construction, pipelay, cable lay and dive support, as well as its shore base operations. Of the 14 vessels to be acquired, eight are equipped with dynamic positioning capabilities. The purchase price is approximately $260 million.

In serving the worldwide oil and gas industry, Secunda has owned and operated construction, installation and support vessels for 24 years. Currently, Secunda's vessels are operating in the U.S. and Mexican Gulf of Mexico, the North Sea and offshore Canadian markets. As the purchased vessels conclude their existing charter contracts, J. Ray intends to integrate certain of these assets in its current and potential markets to expand overall project capabilities, improve resource flexibility and provide additional services for customers. Earlier this quarter, J. Ray chartered one of the purchased vessels to deploy to its currently active Asia Pacific market.

"Secunda's assets, and importantly its people, will be a complementary and strategic addition to J. Ray's offshore capabilities," said Bob Deason, President and Chief Operating Officer of J. Ray. "With Secunda, J. Ray strengthens its traditional offshore construction business, increases the number of activities which can be self-performed, enhances our ability to utilize existing marine assets for higher value activities and additionally, supports its growing subsea development activities."

J. Ray's acquisition is contingent upon obtaining regulatory approval in Canada and the United States, and final due diligence. The transaction is expected to close early in the 2007 third quarter.

"We welcome Secunda's employees to the J. Ray family," continued Deason. "Working together and successfully integrating these businesses will result in a broader and stronger offshore construction portfolio and will permit better application of resources to fulfill our customers' requirements."

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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