McDermott Signs Shipyard Contract for Construction of Deepwater S-Lay Vessel
HOUSTON -- December 27, 2012
McDermott International, Inc. (NYSE: 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
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.
McDermott International, Inc.
Investors, Analysts and Financial Media
Steve Oldham, (1) 281.870.5147
Trade & General Media
Louise Denly, (1) 281.870.5025
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