J. Ray McDermott, Keppel FELS sign letter of intent

McDermott International Inc. subsidiary, J. Ray McDermott SA, and Keppel FELS Ltd., a wholly-owned subsidiary of Keppel Offshore & Marine, announced that ABB Lummus Global Inc. accepted in principal a joint offer for the purchase of ABB's Floating Production Systems US and foreign patents. This purchase includes, among other patents, the extended TLP and the single column floater 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," says Bob Deason, J. Ray's president and COO.

Tong Chong Heong, Keppel's managing director, says, "Keppel FELS has been constructing floating production systems for many years�. The acquisition of these technologies, together with J Ray, will enhance our capabilities and enable us to provide even better service to our customers."

1/26/05