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McDermott Demonstrates Effective Project Execution with Milestone Delivery of Riser Support Structure for Ichthys Project

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McDermott International, Inc. (NYSE:MDR) (“McDermott”) announced today that it has successfully delivered the riser support structure (“RSS”) for the INPEX-operated Ichthys LNG Project’s subsea umbilical, riser, flowline development.

The 7,200-ton Ichthys Riser Support Structure accounts for more than 25 percent of the total 28,700-

The 7,200-ton Ichthys Riser Support Structure accounts for more than 25 percent of the total 28,700-ton of subsea structures that McDermott is fabricating for the Ichthys project. (Photo: Business Wire)

“The completion of the RSS fabrication, load-out and successful installation is a major milestone,” said Tony Duncan, Executive Vice President Subsea. “Few companies in the industry have the capability to deliver a full engineer, procure, construct and install of a subsea project of this scale and nature. The timely delivery of the RSS is testament to the effective project execution delivery model we have adopted for the Ichthys LNG Project highlighting the strong capabilities of McDermott’s team comprised of industry experts from key locations, including Singapore, Batam and Perth and significantly de-risks the project execution schedule.”

Through smart engineering, McDermott was able to optimize the design and constructability of the structure that translated into cost savings in both time and materials for the customer. The innovative design concept of the structure was brought to reality by the combined expertise of our in-house Singapore based engineering team and our fabrication facility located on Batam Island, Indonesia.

The 7,200-ton RSS connects the field’s subsea infrastructure to a semi-submersible central processing facility. The RSS structure is comprised of a tower, more than 328 feet tall, with an arch 410-foot long also designed and fabricated by McDermott to be installed at a later date, to support 25 large-diameter flexible risers and dynamic umbilicals.

“The RSS accounts for more than 25% of the total 28,700 ton of subsea structures we are fabricating for Ichthys,” explained Duncan. “It is an integral piece of the subsea field architecture as all other subsea structures will be installed and oriented relative to its location.”

In addition to the RSS, the facility is undertaking the fabrication of subsea structures including the Flow Line End Terminations, In Line Tees, manifolds and riser bases.

The Ichthys project awarded to McDermott in 2012 includes EPCI and pre-commissioning of product flowline systems, a Mono Ethylene Glycol injection system, start-up condensate transfer and fuel gas transfer flowline systems, control systems and other associated SURF elements in waters up to 900 feet. McDermott will also install mooring systems for the Floating Production, Storage and Offtake vessel and Central Processing Facility as well as engineering for future flowlines, risers and umbilicals.

About the Ichthys LNG Project

The Ichthys LNG Project is a Joint Venture between INPEX group companies (the Operator), major partner Total and the Australian subsidiaries of Tokyo Gas, Osaka Gas, Toho Gas and Chubu Electric Power. Gas from the Ichthys Field, in the Browse Basin approximately 124 miles offshore Western Australia, will undergo preliminary processing offshore to remove water and raw liquids, including condensate. The gas will then be exported to onshore processing facilities in Darwin via a 552 miles pipeline. The Ichthys LNG Project is expected to produce 9.3 million tons of LNG and 1.8 million tons of LPG per annum, along with approximately 100,000 barrels of condensate per day at peak.

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, among other things, the expected scope, execution and timing associated with this project. 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 based on various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: 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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