Exhibit 99.1

McDermott Announces District Court Action on Babcock & Wilcox's Chapter 11 Plan
of Reorganization

     NEW ORLEANS--(BUSINESS WIRE)--Jan. 17, 2006--McDermott International, Inc.
(NYSE:MDR) ("McDermott" or "Company") announced today that on January 17, 2006,
the Honorable Judge Sarah S. Vance of the United States District Court for the
Eastern District of Louisiana issued an order confirming The Babcock & Wilcox
Company ("B&W") Chapter 11 Joint Plan of Reorganization (the "Plan") and the
associated proposed settlement agreement. There were no appeals from or
objections to the Bankruptcy Court's order recommending confirmation of the Plan
and approval of the settlement agreement. After the required 30-day appeal
period from the District Court order, McDermott anticipates that the B&W Plan
and all ancillary agreements will become effective and fully consummated.
     "This is an important day for McDermott, our shareholders, B&W's customers
and the asbestos-related claimants," said Bruce W. Wilkinson, Chairman and Chief
Executive Officer of McDermott. "After close to 6 years in the courts, it
appears that the resolution of B&W's bankruptcy is imminent. There is still work
to be accomplished in this process, but I am looking forward to soon having the
B&W business back for shareholders as part of McDermott's reported financial
results. Once the settlement is complete, McDermott will again be a worldwide
energy services company with focus on coal, nuclear and oil & gas projects."
     B&W, a wholly owned subsidiary of McDermott, filed for Chapter 11
bankruptcy in New Orleans, Louisiana, on February 22, 2000 as a result of
asbestos-related claims. Since filing for Chapter 11 protection, B&W has been
deconsolidated from McDermott's reported financial statements. During the 2002
fiscal year, McDermott wrote-off its remaining investment in B&W. On August 29,
2005, B&W, McDermott, the Asbestos Claimants Committee and the Future
Asbestos-Related Claimants' Representative reached an agreement in principle on
the terms of the currently proposed Plan and associated settlement. Once the
Plan becomes effective, B&W will be reconsolidated in McDermott's financial
statements. Remaining items required for the Plan to become effective include
receiving McDermott's shareholder approval, obtaining exit financing for B&W and
the completion of certain other conditions by February 22, 2006, the effective
date deadline under the Plan.
     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 and uncertainties that may impact McDermott's actual results of
operations. The forward-looking statements in this press release include
statements regarding McDermott's expectation and timing of the effectiveness of
the Plan and reconsolidation of B&W and the Company's position and focus
thereafter. Although McDermott's management believes that the expectations
reflected in those forward-looking statements are reasonable, McDermott can give
no assurance that those expectations will prove to have been correct. Those
statements are made based on various underlying assumptions and are subject to
numerous uncertainties and risks including, without limitation, that remaining
conditions to the Plan my not be satisfied within the time required by the Plan.
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 risk factors, please see McDermott's annual report
for the year ended December 31, 2004 and its 2005 quarterly reports filed with
the Securities and Exchange Commission.
     McDermott International, Inc. is a leading worldwide energy services
company. The Company's subsidiaries provide engineering, fabrication,
installation, procurement, research, manufacturing, environmental systems,
project management and facility management services to a variety of customers in
the energy and power industries, including the U.S. Department of Energy.
Additional information on McDermott can be obtained at www.mcdermott.com.


     CONTACT: McDermott International, Inc.
              Jay Roueche, 281-870-5462
              jroueche@mcdermott.com
              www.mcdermott.com