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McDermott to Install Umbilicals & Subsea Equipment in Deepwater Gulf of Mexico Walker Ridge Field Development

  McDermott to Install Umbilicals & Subsea Equipment in Deepwater Gulf of
  Mexico Walker Ridge Field Development

Business Wire

HOUSTON -- July 1, 2013

McDermott International, Inc. (NYSE: MDR) (“McDermott”) announced today that
one of its subsidiaries has been awarded an engineering, procurement and
construction (EPC) contract by Exxon Mobil Corporation for its Julia
development. The value of the contract is included in McDermott's second
quarter 2013 backlog.

The Julia field is located approximately 265 miles southwest of New Orleans in
the Gulf of Mexico Walker Ridge area in water depths of approximately 7,000
feet. The Julia Phase I project is a subsea tie-back to a semi-submersible
floating production unit and the scope includes six subsea wells, one six-slot
manifold, two umbilicals, six jumpers, two flowlines with two steel catenary
risers, two subsea pump modules and topsides support equipment. Production
will flow through two 10-inch production flowlines with subsea single-phase
boost pumps. Exxon Mobil Corporation, the operator, and Statoil each hold a 50
percent interest in the Julia field development.

“McDermott offered a very competitive solution for the Julia project with the
right people, assets and technology, based on our experience with a similar
deepwater Gulf of Mexico subsea tie-back project that we were awarded in
2011,” said Stephen M. Johnson, Chairman, President and Chief Executive
Officer of McDermott. “The Julia subsea infrastructure requires a high level
of engineering design and construction work, a key component of which is
high-specification welding to help ensure long-term integrity and reliability
of the subsea facilities. The installation solution we offer provides a high
degree of reliability and precision using key vessels in our fleet for
deepwater lowering and flexible lay, and further demonstrates our commitment
to the subsea market.”

McDermott will undertake engineering, procurement and construction of the
jumpers, four suction piles associated with the manifold, subsea pump, pump
transformer and Subsea Distribution Unit /Umbilical Termination Assembly, as
well as the transportation and installation of the manifold, suction piles,
flying leads, subsea pump system, the power and control umbilicals and
SDU/UTAs. McDermott will also carry out testing of the tie-back system and
mechanical completion before hand over to the customer.

McDermott expects to successfully execute this high‐profile project employing
its in‐house expertise and capabilities for subsea engineering, high‐spec
fabrication and subsea installation. Work will commence with immediate effect
in our Houston office.

McDermott deepwater installation vessel Derrick Barge 50 is expected to
undertake the installation of suction piles and subsea equipment, including
the manifold, pump station and transformer. The vessel’s new deepwater
lowering system has the capability to lower loads of up to 480 tons to depths
of up to 11,500 feet.

In addition, North Ocean 102 (NO102) is scheduled to transport and install
umbilicals, flying leads and jumpers. NO102 is a fast-transit vessel with
horizontal carousel. Recent improvements include installation of a
high-capacity flexible-lay system to enable ultra deepwater installation work
– comprising a 330-ton top-tension flex-lay tower, with 275-ton active heave
compensation crane and 330-ton hang-off clamp capable of lowering loads to a
depth of 10,000 feet.

The offshore installation campaign is expected to begin second quarter of 2015
and extend through 2015.

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 14,000 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 online 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, value,
execution and timing associated with this 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, 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, 2012 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.

Contact:

McDermott International, Inc.
Investors, Analysts and Financial Media
Steve Oldham, (1) 281-870-5147
soldham@mcdermott.com
or
Trade & General Media
Louise Denly, (1) 281-870-5025
ldenly@mcdermott.com
or
Andrea Burnley, (44) 1372.846431
aburnley@mcdermott.com