McDermott Acquires Deepwater Pipelay And Construction Vessel - Quick Facts

(RTTNews) - While reporting its fourth-quarter financial results today, McDermott International Inc. (MDR) said it has acquired the newly built pipelay and construction vessel Amazon to better position the company for ultradeepwater and SURF projects.

McDermott plans to upgrade the vessel to address the ultradeepwater market with a state-of-the-art J-lay system outfitted with the latest vessel technology.

In the near term, McDermott plans to make minor capital expenditure investments to bring the vessel up to company standards. As McDermott finalizes its upgrade plans, the company plans to use the vessel on existing construction and pipelay projects.

McDermott noted that funding for the vessel acquisition has been secured through a sale and leaseback arrangement under which the company has control of the vessel in exchange for a daily charter-hire rate.