8-K

                UNITED STATES SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT


                        Pursuant to Section 13 or 15 (d)
                     of the Securities Exchange Act of 1934

       Date of Report (Date of earliest event reported): November 7, 2006



                          McDERMOTT INTERNATIONAL, INC.
- --------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)



   REPUBLIC OF PANAMA                    001-08430              72-0593134
- --------------------------------------------------------------------------------
(State or other jurisdiction            (Commission           (IRS Employer
    of incorporation)                    File Number)        Identification No.)



  777 N. Eldridge Parkway, Houston, Texas                              77079
- --------------------------------------------------------------------------------
 (Address of principal executive offices)                             (Zip Code)


Registrant's Telephone Number, including Area Code:  (504) 587-5901
                                                     --------------

                    -----------------------------------------

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

|_|     Written communications pursuant to Rule 425 under the Securities Act
        (17 CFR 230.425)
|_|     Soliciting material pursuant to Rule 14a-12 under the Exchange Act
        (17 CFR 240.14a-12)
|_|     Pre-commencement communications pursuant to Rule 14d-2(b) under the
        Exchange Act (17 CFR 240.14d-2(b))
|_|     Pre-commencement communications pursuant to Rule 13e-4(c) under the
        Exchange Act (17 CFR 240.13e-4(c))

                    -----------------------------------------



Item 8.01       Other Events.

     On November 7, 2006, McDermott  International,  Inc. issued a press release
reporting on the jury verdict in the matter entitled Citgo Petroleum Corporation
and PDV Midwest Refinery L.L.C. v McDermott  International,  Inc., et al. A copy
of the press release is attached as Exhibit 99.1, and the information  contained
in Exhibit 99.1 is incorporated by reference.

Item 9.01       Financial Statements and Exhibits.

        (d)     Exhibits

                99.1    Press Release dated November 7, 2006



                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                McDERMOTT INTERNATIONAL, INC.


                                By:/s/Michael S. Taff
                                   ---------------------------------------------
                                   Michael S. Taff
                                   Chief Accounting Officer



November 7, 2006


                                       2

EX-99.1

                                                                    Exhibit 99.1

                 McDermott Comments on Citgo Verdict

     Appeal planned of jury verdict despite B&W's capped potential
                      liability of $42.5 million


    HOUSTON--(BUSINESS WIRE)--Nov. 7, 2006--McDermott International,
Inc. (NYSE:MDR) ("McDermott") announced today that a jury verdict has
been rendered against one of its subsidiaries, The Babcock & Wilcox
Company ("B&W"), in the matter entitled Citgo Petroleum Corporation
and PDV Midwest Refinery L.L.C. v McDermott International, Inc., et
al. (the "Citgo Action"). The case, filed in Cook County, Illinois,
involves claims for damages in connection with the manufacture and
sale in 1981 by a former B&W division of a pipe fitting that allegedly
caused an August 14, 2001 fire at a refinery in the Chicago area. The
total amount awarded the plaintiffs is approximately $387 million.

    As previously reported, pursuant to a settlement agreement reached
in December 2005, B&W paid $7.5 million to the plaintiffs, and limited
its additional exposure to the plaintiffs to a maximum of $42.5
million, which would only be payable after all appeals of the Citgo
Action and claims against B&W's insurance broker and applicable
insurers have been exhausted. The jury apportioned liability of 45% to
B&W, 15% to Citgo and 40% to Unocal, the prior owner of the refinery.
Citgo had sought approximately $550 million in damages and a finding
of full liability on the part of B&W.

    While B&W's liability is capped at $42.5 million, B&W believes
that the verdict, including the findings of fault and liability, raise
complex issues that should be reviewed on appeal. Additionally, the
determination of any additional insurance premium charge is subject to
the exhaustion of all appeals. Further information regarding the Citgo
Action can be found in McDermott's annual and quarterly filings with
the Securities and Exchange Commission, including its report on Form
10-Q for the quarter ended September 30, 2006.

    McDermott International, Inc. is a leading worldwide energy
services company. The Company's subsidiaries provide engineering,
construction, 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.

    In accordance with the Safe Harbor provisions of the private
Securities Litigation Reform Act of 1995, McDermott cautions that this
press release contains forward-looking statements regarding the timing
and amount of the Company's liability associated with the Citgo
Action. Although we believe that the expectations reflected in those
forward-looking statements are reasonable, they are subject to the
risk that litigation, including any appeals, is an inherently complex
and uncertain process which cannot be predicted with accuracy.


    CONTACT: McDermott International, Inc.
             Investor Relations & Corporate Communications
             Jay Roueche or Robby Bellamy, 281-870-5011
             www.mcdermott.com