McDermott Awarded Second Contract for PETRONAS Bukit Tua Development in East Java, Indonesia

HOUSTON--(BUSINESS WIRE)--

McDermott International, Inc. MDR (“McDermott”) announced today that one of its subsidiaries was awarded a transportation, installation and pre-commissioning contract by PC Ketapang II Ltd, a subsidiary of PETRONAS, for the Bukit Tua Development Project in the Ketapang block of East Java, Indonesia. The contract will be included in McDermott's fourth quarter backlog.

“McDermott is uniquely positioned to support the fast track nature of the Bukit Tua development that is critical to provide energy to power a key industrial area in Gresik, Indonesia,” said Hugh Cuthbertson, Vice President and General Manager, Asia Pacific. “This is the second award we have received related to the Bukit Tua Development this year. We are currently fabricating the 1,212-ton BTJT-A wellhead jacket at our Batam Island fabrication facility in Indonesia, where construction work is on track and expected to complete in November 2014.”

This new contract is for the transportation and installation of the BTJT-A jacket, its related topsides and subsea pipeline tie-in spools. Additionally, McDermott will undertake the pre-commissioning of the related export and infield pipelines. All offshore installation work will be carried out by the McDermott Derrick Barge 30 (“DB30”).

“McDermott's innovative engineering solutions played a key role in us winning the project. The unique configuration of our DB30 enables work to be carried out in a shorter amount of time, which translates to time and cost savings and helps to improve the overall efficiency and safety of offshore operations for our client,” said Cuthbertson

The offshore campaign is expected to be completed by end of the first quarter of 2015.

The Bukit Tua field is located approximately 21 miles from Madura Island and 62 miles from Surabaya, East Java, in approximately 190 feet of water.

McDermott has operated in Indonesia since the early 1970s and has an outstanding track record of delivering project excellence for the Indonesian energy industry from its regional engineering offices, Batam Island fabrication facility and fleet of installation vessels.

ABOUT McDERMOTT

McDermott is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide. The Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning for complex Offshore and Subsea oil and gas projects to help oil companies safely produce and transport hydrocarbons. Our clients include national and major energy companies. Operating in more than 20 countries across the world, our locally focused and globally integrated resources include approximately 14,000 employees, a diversified fleet of specialty marine construction vessels, fabrication facilities and engineering offices. We are renowned for our extensive knowledge and experience, technological advancements, performance records, superior safety and commitment to deliver. McDermott has served the energy industry since 1923 and is listed on the New York Stock Exchange. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates.

To learn more, please visit our website at www.mcdermott.com.

FORWARD LOOKING STATEMENTS

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include statements about backlog, to the extent backlog may be viewed as an indicator of future revenues, and the expected scope, execution and timing associated with McDermott's projects in the Bukit Tua Development. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the scope or timing of contracts, contract cancellations, 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 and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2013 and subsequent quarterly reports on Form 10-Q. This press 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.

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