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BABCOCK & WILCOX AWARDED $400 MILLION CONTRACT IN INDONESIA

 NEW ORLEANS, May 13 /PRNewswire/ -- The Babcock & Wilcox Company, a major operating unit of McDermott International, Inc. (NYSE: MDR), announced today that its international division has been awarded a contract from Perusahaan Umum Listrik Negara (PLN), the state utility of Indonesia, for work on the expansion of the Suralaya power station in West Java.
 Babcock & Wilcox (B&W) will be part of an international consortium with PT Babcock & Wilcox Indonesia (PTBWI), a B&W joint venture, and Marubeni Corp. of Tokyo.
 The project includes the design, supply, manufacture, construction, and commissioning of three 600 mw coal-fired boilers for phase three of PLN's Suralaya development program. Phase three is the largest project ever ordered by PLN to expand Indonesia's electrical system, which is anticipated to more than double by the early 2000s.
 The entire phase is valued at approximately $2.2 billion. Value of the work awarded to the consortium is approximately $700 million, with support coming from the export credit agencies of Japan, Canada and the United States. The Babcock & Wilcox portion is valued at approximately $400 million.
 B&W's international division, located in Cambridge, Ontario, and Barberton, Ohio, and PTBWI will be responsible for engineering and manufacturing of the boilers and all major auxiliaries, and commissioning. Marubeni will handle the construction and supply of balance of plant equipment. Sourcing for the B&W scope will be from Indonesia, Canada and the United States.
 The first unit is scheduled for commercial operation by early 1997, and the second and third units will follow at six month intervals.
 B&W's relationship with PLN began in 1980, when Babcock & Wilcox and Marubeni were contracted to complete phase one of the Suralaya project. The two 400 mw units for phase one were the first major coal-fired boilers built in Indonesia. In 1984, Babcock & Wilcox and Marubeni joined to supply two more 400 mw units for phase two, this time joining with PTBWI.
 McDermott International, Inc. is a leading worldwide energy services company. The company and its subsidiaries manufacture steam-generating equipment, environmental equipment, and government and aerospace products. They also provide engineering and construction services for industrial and utility facilities onshore, and to the oil and gas industry offshore.
 -0- 5/13/93
 /CONTACT: Don Washington of McDermott, 504-587-4080/
 (MDR)


CO: McDermott International, Inc.; Babcock & Wilcox Company; Perusahaan
 Umum Listrik Negara (PLN); Marubeni Corp. ST: Louisiana IN: OIL SU: CON


RA-BN -- AT003 -- 7967 05/13/93 09:36 EDT
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Publication:PR Newswire
Date:May 13, 1993
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