McDermott Signs Shipyard Contract for Construction of Deepwater S-Lay Vessel
HOUSTON--(BUSINESS WIRE)-- McDermott International, Inc. (NYS: MDR) ("McDermott") announced today that one of its subsidiaries has signed a contract for the design and construction of a new high-spec, highly capable dynamically-positioned combination S-Lay vessel with a 2,000-ton crane.
The vessel, tentatively named Derrick Lay Vessel 2000 ("DLV2000"), will be constructed at Keppel Singmarine in Singapore and is expected to take approx 2.5 years to build.
"DLV2000 is expected to address a market demand we consider to be extremely robust for deepwater pipelines as well as our traditional markets," said Stephen M. Johnson, Chairman, President and Chief Executive Officer. "A combination heavy lift and deepwater S-Lay pipelay vessel is an important asset for our expanding fleet, focusing on the subsea construction market."
Developed by Keppel's ship design arm, Marine Technology Development (MTD), DLV2000 is equipped to support advanced deepwater pipelay operations that will allow pipelines to be installed at depths of up to 10,000 feet. An economical vessel transit speed is expected to be 12 knots with a top speed of 14 knots. On completion, the vessel will be able to accommodate up to 400 personnel.
DLV2000 is the second new-build vessel currently under construction for the McDermott fleet. In August this year, McDermott signed a contract to build Lay Vessel 108, sister ship to the recently completed subsea construction vessel the Lay Vessel North Ocean 105, a vessel with a high-capacity tower for rigid and flexible pipelay and state-of-the-art marine construction equipment to support the growing rigid reel lay and flexible lay markets.
McDermott is a leading engineering, procurement, construction and installation group of companies focused on executing complex offshore oil and gas projects worldwide. Providing fully integrated EPCI services for upstream field developments, the Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning. McDermott's customers include national and major energy companies. Operating in more than 20 countries across the Atlantic, Middle East and Asia Pacific, our integrated resources include approximately 13,500 employees and a diversified fleet of marine vessels, fabrication facilities and engineering offices. McDermott has served the energy industry since 1923.
To learn more, please visit McDermott's website on the internet at www.mcdermott.com
FORWARD LOOKING STATEMENTS
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott International, Inc. cautions that statements in this press release which are forward-looking and provide other than historical information involve risks and uncertainties that may impact actual outcomes. The forward-looking statements in this press release include, among other things, the expected time to build and expected timing for beginning of construction of the Derrick Lay Vessel 2000, as well as the specifications and capabilities of the vessel, and our expectation that the vessel will address market demand. 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, changes in vessel design or construction schedule, contract cancellation, change orders and other modifications, and difficulties executing on the vessel construction project. 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 and other risk factors, please see McDermott's annual report on Form 10-K for the year ended December 31, 2011 and subsequent quarterly reports on Form 10-Q. This news release reflects management's view as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
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