• Includes fabrication engineering, procurement, construction and pre-commissioning scope for three modules
• Builds on past work for Yamal LNG in fabricating large process modules
• Work takes place at McDermott's QMW joint venture in China

McDermott International, Inc. today announced that its joint venture Qingdao McDermott Wuchuan Offshore Engineering Co. Ltd (QMW) in Qingdao, China, has been awarded a large* contract to provide three complex modules for the Arctic LNG 2 Project in the Yamal-Nenets Autonomous Region in Russia.

"This award recognizes QMW's experience and excellent performance in the Arctic on an earlier Yamal LNG project. It is further evidence that QMW is a tier one module fabricator in the LNG market. Fabrication will be completed in QMW's mega module workshop which provides increased certainty for safety, schedule and successful project delivery," said McDermott's Senior Vice President Asia Pacific, Ian Prescott.

The scope includes the fabrication of three Pre-Assembled Unit Complex Process Modules. QMW will undertake fabrication engineering, partial procurement, construction and pre-commissioning scope. Fabrication for the modules is scheduled to commence at the end of 2019 and be completed in mid-2022.

* McDermott defines a large contract as between USD $50 million and USD $250 million. The designation refers to McDermott's share of the award via its joint venture. Because QMW is accounted for as an equity method joint venture, its associated backlog is not included in McDermott's publicly reported RPO backlog (Remaining Performance Obligation backlog).

About Qingdao McDermott Wuchuan

QMW is a joint venture between a McDermott and state-owned CSIC and offers integrated Engineering, Procurement, construction and Commissioning solutions for the Floating Production Storage and Offloading ("FPSO"), onshore and offshore modules market and fabrication capabilities through an 111-acre fabrication yard located in the Huangdao District in Qingdao (Shandong Province), China. Adjacent to two large shipbuilding and repair yards operated by CSIC, QMW focuses on high quality, cost-competitive FPSO topsides construction and integration, onshore and offshore module fabrication and large integrated deck fabrication.

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