McDermott Unit Buys Vessel Stakes

Dec.24.09 | About: McDermott International, (MDR)

J. Ray McDermott S.A. – a subsidiary of energy-focused engineering and construction firm McDermott International Inc. (NYSE:MDR) – announced the purchase of interest in two underwater oil and gas construction vessels from Norwegian offshore services company Oceanteam ASA. The acquisitions include a 50% stake in the subsea construction vessel North Ocean 102 and a 75% stake in a new build vessel North Ocean 105. The financial terms of the transaction were not disclosed.

J. Ray has agreed to charter the vessels for five years, following which it will have the option to buyout Oceanteam’s share in both the ships. The company expects to take delivery of North Ocean 102 in the third quarter of 2010. The second vessel, North Ocean 105, is still unbuilt. J. Ray will collaborate with Oceanteam to construct the ship, which is likely to be delivered during the last quarter of 2011.

The addition of these vessels to the J. Ray fleet will provide the company with multipurpose subsea and deepwater installation equipment to support its growing subsea capabilities across different water depths worldwide.

Through the J. Ray McDermott subsidiary, McDermott International primarily serves the worldwide offshore oil and gas field developments, including the front-end design and detailed engineering, fabrication and installation of offshore drilling and production facilities, as well as installation of marine pipelines and subsea production systems. Additionally, the segment provides project management and procurement services. It operates in most major offshore oil and gas producing regions.

Incorporated in 1959, Houston, Texas-based McDermott International Inc. is an energy-focused leading global engineering and construction company with specialty manufacturing and service capabilities. The firm provides a diverse range of products and services to customers in the energy and power industries, including utilities and other power generators, major and national oil companies, and the U.S. Government.