McDermott Altamira Facility Is the First Fabrication Free Trade Zone in Mexico

HOUSTON--(BUSINESS WIRE)--

McDermott International, Inc. MDR (“McDermott”) has received authorization from the Central Administration of Customs in Mexico to operate its Altamira fabrication facility near Tampico, Mexico, as a free trade zone.

The first fabrication facility licensed to operate as a free trade zone in Mexico, Altamira is a focal point for fabrication on the Gulf of Mexico coast, serving both PEMEX domestic requirements and export work for international clients.

“The benefits of operating as a free trade zone to McDermott's international clients is through the ability to import components, construction materials and equipment cost-effectively, to provide a competitive alternative to U.S. and other fabrication facilities,” said Dominic Savarino, Vice President and General Manager, Americas.

This improved construction environment supports the execution of larger and more complex projects from within Mexico. It enables McDermott to better serve its clients through a top-tier fabrication facility, with a highly skilled in-country workforce, and proximity to good transportation infrastructure that supports the further development of the local economy.

With the Mexican energy reform potentially opening up the Mexican market, PEMEX will require expertise from international energy majors for field development, as well as engineering and construction contractors such as McDermott. Equipped with the necessary technology, solutions and expertise to supply the market with the right people, assets and technology for economical and safe deep-water solutions, McDermott's Altamira free trade zone fabrication facility is firmly positioned to support international clients and the domestic Mexican market as it expands into deep water and complex projects. As Mexico becomes an established energy center, the benefits from hydrocarbon production will have a multiplier effect, providing opportunities for jobs in the country and growth for the local economy to accelerate domestic wealth.

ABOUT ALTAMIRA FABRICATION FACILITY

The McDermott Altamira fabrication facility in Mexico opened in 2007 and is designed, built and operated as part of a unique global fabrication solution to ensure an efficient, first-class operation to serve both local Mexican and international clients. It is located within the sheltered Port of Altamira with deep-water access and no restrictions to the Gulf of Mexico, and benefits from its proximity to good transport infrastructure. It has been developed through staged upgrades and within the 119-acre site is a large 3.1-acre enclosed assembly area with protective covered bays equipped to allow work to be performed during inclement weather for improved conditions and productivity. The deep-water quayside has a water depth of 39 feet. At 1,640-feet long the quayside can support FPSO module fabrication and integration, as well as topsides integration for TLP and Semisubmersible hulls. Since it opened, the yard has steadily built backlog, infrastructure, a highly-skilled local workforce, and the proven project experience necessary to demonstrate it can offer economical and safe construction solutions. These key factors combine to create a highly competitive offering for offshore construction projects.

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 International, Inc. 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. The forward-looking statements in this press release include, among other things, the expected benefits resulting from McDermott's authorization to operate the Altamira fabrication facility as a free trade zone. 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 risks, contingencies and uncertainties, including without limitation, changes in project design or schedules, 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. You should not place undue reliance on forward-looking statements. 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 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.

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