J. Ray McDermott & Keppel FELS Sign Letter Of Intent for ABB Lummus Gl

    Business Editors/Energy Editors

    HOUSTON--(BUSINESS WIRE)--Jan. 26, 2005--J. Ray McDermott, S.A. ("J. Ray"), a subsidiary of McDermott International, Inc. (NYSE:MDR) ("McDermott"), and Keppel FELS Ltd ("Keppel"), a wholly-owned subsidiary of Keppel Offshore & Marine, announced today that ABB Lummus Global Inc. ("ABB") has accepted in principal the offer made jointly by Keppel and J. Ray for the purchase of ABB's Floating Production Systems US and foreign patents. This purchase includes, among other patents, the Extended Tension-Leg Platform (ETLP(TM)) and the Single Column Floater (SCF(TM)) designs. Keppel and J. Ray are preparing to form a new entity to jointly pursue development of this technology and certain deepwater floating structures.
    "J. Ray and Keppel are excited to add these technologies to our respective inventories of offshore solutions," said Bob Deason, president and chief operating officer of J. Ray. "Our relationship with Keppel provides a unique opportunity to grow our respective markets through the application of these technologies."
    Tong Chong Heong, Keppel's managing director, shared, "Keppel FELS has been constructing floating production systems for many years, starting with Conoco's TLWP in 1987. The acquisition of these technologies, together with J Ray, will enhance our capabilities and enable us to provide even better service to our customers."
    Keppel FELS is the world leader in the design and construction of jack up rigs, having built over 60% of the world's fleet in the last decade. Its parent company, Keppel O&M is a global leader in offshore rigs and ship conversion and repair as well as a specialized shipbuilder. Its near market, near customer strategy is bolstered by a global network of 16 yards in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be a provider of choice and a partner in solutions for the offshore and marine industry.
    McDermott is a leading worldwide energy services company. McDermott's subsidiaries provide engineering, fabrication, installation, procurement, research, manufacturing, environmental systems, project management and facilities management services to a variety of customers in the energy and power industry, including the U.S. Department of Energy. Its subsidiary, J. Ray McDermott, S.A. is a leading provider of solutions for offshore field development worldwide.

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CONTACT: McDermott International, Inc. Jay Roueche, 281-870-5462 jroueche@mcdermott.com www.mcdermott.com or Keppel Corporation Sarah Seah, (65) 64136 420 sarah.seah@kepcorp.com www.kepcorp.com

KEYWORD: TEXAS INDUSTRY KEYWORD: OIL/GAS MANUFACTURING ENERGY MARKETING AGREEMENTS SOURCE: McDermott International, Inc.

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