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McDermott Wins Pipeline Installation Project in Gulf of Mexico

31 May 2011

McDermott International Inc, announced today that one of its subsidiaries was awarded a contract by PEMEX Exploración y Producción for procurement, construction and installation of three oil and gas pipelines ranging from 8 to 20 inches in diameter, in Mexico's Bay of Campeche. The contract is valued at more than US$50 million and will be included in McDermott's second quarter backlog for 2011.

"We are pleased to be working again for PEMEX in the Gulf of Mexico. Our installation solution for this project will be supported by our subsea engineering design group in Houston and fabrication work from our construction yard in Altamira, Mexico,” said Stephen M. Johnson, McDermott's Chairman, President and Chief Executive Officer.

Pipeline installation engineering is expected to begin in the second quarter of 2011, with subsequent fabrication of the risers, clamps and guards, subsea tie-in assembly and additional platform piping and structural items from Altamira. McDermott's DB16 will perform the installation work, with completion expected by the end of the year.

DB16 is outfitted with a customized Automatic Welding System that offers high weld production rates and production flexibility. The vessel and its crew are recognized for producing repeatable high-quality welds with exceptional mechanical properties. Also impressive is the vessel's underwater block, capable of lifting large amounts of tonnage into deepwater.

The field development in the Gulf of Mexico sits in approximately 170 feet of water. The pipelines will run from the Kambesah Wells Recoverer Structure to the Kutz TA platform and the Ixtoc-A platform.