J. Ray Snags Peregrino FPSO Project Offshore Brazil

McDermott International, Inc. announced that a subsidiary of J. Ray McDermott, S.A. has received a letter of award for the engineering, procurement and construction of 6,500 metric tons of topside modules for the Peregrino floating, production, storage and offloading (FPSO) vessel from A.P. Moller - Maersk A/S. Projects of this nature are typically valued in excess of $250 million.

"This project underscores J. Ray's ability to draw from its global resources to offer a fast track and cost effective solution when our customers need one most," said Bob Deason, Chief Executive Officer of J. Ray. "Our engineering and procurement resources in Houston combined with our operations in Indonesia are able to leverage the global footprint of J. Ray to optimize project execution and delivery."

Engineering and procurement activities have commenced while the fabrication scope is expected to begin in the third quarter 2008. Construction of the topside modules will commence in the third quarter 2008 at J. Ray's Batam Island facility in Indonesia, where up to 1,200 Indonesian craftsmen are expected to be employed on this project. The Peregrino FPSO project is expected to be complete by the fourth quarter 2009.

The FPSO will ultimately be operated in the Peregrino field, located in the Campos Basin approximately 85 kilometers offshore Brazil. Under the development plan, the field is to be designed with the FPSO and two drilling platforms.