McDermott Awarded Woodside Greater Western Flank Phase 2 Subsea Pipeline and Installation Contract Offshore Australia

• Woodside award builds on McDermott’s leading position in Australian subsea umbilical riser and flowline (SURF) market
• Large contract award provides newest addition to McDermott’s global fleet, DLV 2000, with initial pipe-lay project
• McDermott’s vertically integrated capabilities integral to overall solution

HOUSTON, Feb. 22, 2016 -- McDermott International, Inc. (NYSE:MDR) will put its new flagship derrick lay vessel, the DLV 2000, to work offshore Western Australia, supporting a transportation and installation contract awarded by Woodside for the Greater Western Flank Phase 2 Project. The installation will occur approximately 20 miles from the Goodwyn A platform located in the North West Shelf region off Western Australia.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/b8b51207-d91b-4152-98c5-188157469929

The DLV 2000 is a class 3 dynamically positioned vessel combining a 2,200-ton revolving crane with a deepwater S-lay pipelay system configured to install pipelines with diameters ranging from 4.5 to 60 inches in water depths up to 10,000 ft.

Work is expected to be performed in conjunction with McDermott’s other new subsea installation vessel, the Construction Support Vessel 108 (CSV 108). The CSV 108 is expected to undergo an upgrade later this year to install a Vertical Lay System and Reel Deployment System, also for use in the project, and will then be referred to as Lay Vessel 108 (LV 108). Engineering for the project is expected to be done by McDermott’s in-house staff in Perth and Kuala Lumpur. Fabrication and pre-installation of pre-lay support structures and 21 buckle initiators is scheduled for McDermott’s Batam Island, Indonesia, fabrication facility.

“We are excited to win this opportunity and build on the leading position we have in Australia, where McDermott has a long and established track record of successfully performing projects for Woodside and other clients,” said Hugh Cuthbertson, Vice President, Asia. “The award reflects our ability to manage all fabrication, installation, regulatory and environmental requirements and expectations without the need to outsource any assets and resources, thereby maximizing the assurance of quality and cost efficiency.”

The full scope of the brownfield project covers transportation and installation of 22 miles of 16-inch corrosion resistant alloy (CRA) clad pipeline which includes three In-Line Tees (ILTs) and pipeline end terminations (PLETs) at each end in water depths up to 420 feet.

The lump sum contract award will be reflected in McDermott’s first quarter 2016 backlog.

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 10,600 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 statement
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, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues, the expected value, scope, execution and timing associated with this project and the expected specifications and timing of upgrades to the CSV 108. 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 by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: our inability to successfully execute on contracts in backlog, 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 actions by our customers and business partners, difficulties executing on the project and changes in contracting terms and industry norms. 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, 2015. 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.

McDermott International, Inc.
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