McDermott Wins Subsea Contract in Malaysia

(Press Release)
Tuesday, July 12, 2011

McDermott International, Inc. (NYSE: MDR) (“McDermott”) announced theaward of a subsea contract to its Malaysian subsidiary for deepwater offshore engineering and construction, including transportation and installation of subsea infrastructure.
The award is for the Kikeh Subsea Expansion Project by Murphy Sabah Oil Co., Ltd. for the engineering, procurement, construction, installation andcommissioning of pipelines and an umbilical and subsea hardware package.Engineering work on the Kikeh Subsea Expansion Project has started and is expected to be completed in the third quarter of 2012.  The Kikeh area is located 120 kilometers northwest of Labuan, Malaysia, in 1,350 meters of water and is Malaysia’s first deepwater oil discovery.

Murphy, as Operator, has an 80% working interest in the Kikeh Field with Petronas Carigali Sdn. Bhd. holding the remaining 20% interest.

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