McDermott Completes Installation and Startup for the Vashishta and S1 Field

• McDermott successfully completed the installation scope of work for the subsea infrastructure for India’s Oil and Natural Gas Corporation Ltd (ONGC) Vashishta and S1 Field
• ONGC has successfully achieved first gas
• Close working relationships between McDermott, L&T Hydrocarbon Engineering (LTHE) and ONGC led to the successful completion of the project

CHENNAI, India, April 25, 2018 -- McDermott International, Inc. (NYSE:MDR) announced today it has successfully concluded the installation and startup on the Vashishta and S1 field, an engineering, procurement, construction and installation (EPCI) contract that it received from ONGC in December 2015.

On ONGC's Vashishta project, the first end pipeline end termination is lifted from the supply boat by NO 105. This is the largest PLET that the vessel has ever installed, weighing 88 tons, including a 23-meter-long stress joint.

McDermott together with consortium partner LTHE, a wholly owned subsidiary of Larsen & Toubro Limited (L&T), was responsible for the engineering, supply and installation of a series of pipeline end terminations (PLETs) and in-line tee structures (ILTs), a pipeline end manifold structure (PLEM), rigid jumpers and approximately 50 kilometers (30 miles) of umbilicals. The pipeline scope includes 93 kilometers (58 miles) of 14-inch dual rigid pipelines extending from the shallow water shore line to a maximum water depth of 700 meters (2,300 feet).

“I’d like to take this opportunity to congratulate ONGC in achieving this important first gas milestone! The success of this project confirmed that our consortium with LTHE has performed well in delivering the best in-market solution for our client," said Ian Prescott, McDermott’s Vice President for Asia. "We look forward to building on this strategic collaboration for future projects in India.”

“Engineering design for the Vashishta project was no easy feat due to the iterative nature of the design process which had to reconcile many factors such as soil conditions, jumper/spool loads, connector capacities, in-place environmental loads, pipeline expansion loads, installation weather limitations, vessel envelope constraints and mission equipment constraints,” said Ben Delves, McDermott’s Vashishta Project Director.

Typical weights for Vashishta PLETs and ILTs ranged from 35 to 85 metric tons (27 to 93 tons) and the PLEM weight was 200 metric tons (220 tons).  "A combination of soft soils and the significant weight of permanent equipment has contributed to some large structures which made the interfaces with the installation vessel challenging," said Delves.

The installation of the subsea infrastructure was particularly challenging as McDermott only had four months out of the year to work at the Krishna-Godavari basin before the monsoon season hit the field with bad weather and strong sea undercurrents.

McDermott deployed three of its specialty vessels to complete the installation phase, namely Derrick Barge 30, Lay Vessel North Ocean 105 and North Ocean 102.  McDermott also deployed its trademarked portable spoolbase at the LTHE base in Kattupalli, India, to fast-track the production of pipeline stalk for loading onto the installation vessels.

Project Details
The Vashishta field lies in water depths varying between 500 and 700 meters (1,600 and 2,300 feet) and approximately between 31 to 35 kilometers (19 to 22 miles) from the Amalapuram coast. The S1 field is located in water depths of between 250 to 600 meters (800 to 2000 feet), and approximately between 26 to 29 kilometers (16 to 18 miles) from the Amalapuram coast. The ONGC development encompasses drilling, re-entry and completion of three wells, subsea tie-back of the wells to an onshore terminal at Odalarevu and expansion of the existing onshore terminal.

The Vashishta field is estimated to produce 9.56 billion cubic metres (bcm) over a period of nine years with peak production reaching 3.55 million metric standard cubic metres a day (mmscmd) during the first five years. The S1 field is expected to deliver 6.22bcm over a period of eight years with a peak production of 2.2mmscmd for the first five years.

About McDermott

McDermott is a leading provider of integrated engineering, procurement, construction and installation (“EPCI”), front-end engineering and design (“FEED”) and module fabrication services for upstream field developments worldwide. McDermott delivers fixed and floating production facilities, pipelines, installations 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 customers include national and major energy companies.  Operating in approximately 20 countries across the world, our locally focused and globally integrated resources include approximately 11,600 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 shares of its common stock are 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, 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, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues, and the expected value, scope, execution and timing associated with the project discussed in this press release. 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: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. 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, 2016 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.

McDermott International, Inc.

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