J. Ray McDermott Awarded Qatargas Contract

McDermott International, Inc. (NYSE:MDR) ("McDermott")
announced today that a subsidiary of J. Ray McDermott, S.A. ("J. Ray")
was awarded a contract by Qatargas Operating Company Limited
("Qatargas") to provide engineering, procurement and installation
services for the Common Condensate SPM Facilities Project, offshore
Qatar. Contracts of this type are typically valued at approximately
$100 million.
   "Our working history with Qatargas goes back to 1996 when we
completed the first Qatargas Upstream Development," said Bob Deason,
President and Chief Operating Officer of J. Ray. "With the anticipated
growth of Qatar's oil and gas future, we are proud to continue
providing support to its development program."
   The facilities, once completed, will allow the export of
condensate from Ras Laffan through two SPM CALM loading buoys,
approximately 54 kilometers offshore, via a 42" diameter pipeline. J.
Ray will support the project by providing detailed engineering
services for the pipeline. Design work will be performed both in Jebel
Ali and Houston by J. Ray's specialist engineering subsidiary, Mentor
Subsea. In addition to the pipeline, J. Ray will install two SPM CALM
buoys and pipeline end manifolds and three fiber optic cables,
supplied by Qatargas.
   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,
including the U.S. Department of Energy. Additional information on
McDermott can be obtained at www.mcdermott.com.
   In accordance with the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995, McDermott International,
Inc. cautions that statements in this press release which are
forward-looking and provide other than historical information involve
risks and uncertainties that may impact McDermott's actual results of
operations. The forward-looking statements in this press release
include, among other things, the work scope and the typical award
value associated with the Qatargas project. Although McDermott's
management believes that the expectations reflected in those
forward-looking statements are reasonable, McDermott can give no
assurance that those expectations will prove to have been correct.
Those statements are made based on various underlying assumptions and
are subject to numerous uncertainties and risks, including without
limitation change orders and other modifications to contracts. If one
or more of these risks materialize, or if underlying assumptions prove
incorrect, actual results may vary materially from those expected. For
a more complete discussion of these risk factors, please see
McDermott's annual report on Form 10-K for the year ended December 31,
2005 filed with the Securities and Exchange Commission.