McDermott Awarded Spar Hull Installation Contract For Williams Partners In The Gulf Of Mexico

McDermott International, Inc. (NYSE: MDR) (“McDermott”) announced today that one of its subsidiaries has been awarded a contract by Williams Partners L.P. (NYSE:WPZ) for transportation and installation services for a Spar hull in the Gulf of Mexico. The value of the contract is included in McDermott's second quarter 2012 backlog.

McDermott will transport and install the Gulfstar FPS GS-1 Spar hull and moorings. Located approximately 150 miles offshore, the Spar platform is destined for the Gulf of Mexico’s Mississippi Canyon and will sit in approximately 4,200 feet of water.

“McDermott’s involvement on Spar projects extends decades and ranges from full engineering, procurement, construction and installation experience, to installation of hulls, moorings or topsides only, including some of the first Spar platforms in the Gulf of Mexico,” said Steven W. Roll, Vice President and General Manager, Atlantic of McDermott. “Our experience with classic Spar installation and synthetic mooring deployment, as well as our overall competitiveness on the project, gave us the leading edge,” explained Roll.

McDermott’s recently improved DB50 vessel will install the moorings before transporting the classic-design Spar hull to the installation site where it will be upended and ballasted before installing a temporary work deck. The offshore campaign is expected to begin in the third quarter of 2013.

“We have invested more than $150 million to improve our well established deepwater combination heavy lift and pipelay vessel DB50, by enhancing the power and propulsion systems, and adding a new deepwater lowering system,” explained Roll.

DB50 is expected to deliver a greater level of reliability and versatility for subsea and platform completion projects since the installation of four new generators, six new thrusters, new DP controls, as well as a new active heave compensated deep water lowering system mounted in the crane and designed for loads to a water depth of 11,000 feet.

ABOUT McDERMOTT

McDermott is a leading engineering, procurement, construction and installation group of companies focused on executing complex offshore oil and gas projects worldwide. Providing fully integrated EPCI services for upstream field developments, the Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning. McDermott’s customers include national and major energy companies. Operating in more than 20 countries across the Atlantic, Middle East and Asia Pacific, our integrated resources include approximately 13,500 employees and a diversified fleet of marine vessels, fabrication facilities and engineering offices. McDermott has served the energy industry since 1923.

To learn more, please visit McDermott’s website on the internet at www.mcdermott.com.

FORWARD-LOOKING STATEMENTS

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 expected scope, execution and timing associated with this project, and the expectations regarding the DB50. 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, changes in project design or schedule, contract cancellation, change orders and other modifications, and difficulties executing on the project. 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 and other risk factors, please see McDermott's annual report on Form 10-K for the year ended December 31, 2011 and subsequent quarterly reports on Form 10-Q. This news release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.

Copyright Business Wire 2010

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