HOUSTON, July 31, 2018 /PRNewswire/ -- McDermott
International, Inc. (NYSE: MDR) announced today its modification
plans to convert the Amazon to an ultra-deepwater J-Lay vessel.
The Amazon will be capable of installing hex-joints up to 24
inches (60 centimeters) in diameter on a worldwide basis. The
Amazon is operated by McDermott under a long-term bareboat charter
that started in 2017. The vessel is equipped with twin 400 metric
ton (440 ton) cranes and accommodations for 200
personnel.
The modifications will consist of removing the existing tower
and replacing it with a J-Lay system with 1,500 metric tons (1,653
tons) of dynamic top tension on the tower, which will enable large
subsea structures and hex sections of pipelines from 4.5 to 24
inches (11 to 60 centimeters) to be installed. The Amazon
modifications will include an integrated multi-joint facility,
where single joints will be welded to form hex joints. The 10,000
metric tons (11,023 tons) of existing cargo space onboard will
remove the requirement for onshore facilities to produce the
multi-joints, enhancing mobility of the vessel and reducing
reliance on shore bases for support.
"Today's announcement represents our strategic vision for the
Amazon to competitively position it as one of the world's best
ultra-deepwater vessels," said David
Dickson, President and Chief Executive Officer of McDermott.
"Expected to have one of the most efficient J-Lay systems in the
world, the Amazon will enable McDermott to pursue major field
development projects with rigid pipelay requirements at depths of
nearly 3,500 meters (11,500 feet). This is an exceptional
opportunity for the Company to expand the technical capabilities of
our global fleet and address the anticipated growth in deepwater
and ultra-deepwater spending."
Royal IHC from the Netherlands
(IHC) has been selected to design and build the J-Lay system, based
on IHC's innovative and proprietary design, and will perform
overall management of the modification project. The original
equipment manufacturers will be used for all modifications to the
ship's systems, including an additional five megawatts of power and
pipe handling cranes, under the management of IHC.
"The extensive use of existing proven technology and process
automation, combined with early collaboration with the system
designers, means we expect to have a very efficient and cost
effective asset," said Alan
Marriott, Global Vice President, Marine Assets & Operations. "The Amazon will
provide a key enabling asset within the McDermott fleet. The vessel
is designed to be self-sufficient, allowing easy transition from
project to project. The vessel is expected to provide pull through
opportunities for the rest of the McDermott subsea fleet."
Initial engineering began on the project in October 2017 and transitioned into full
engineering design in January 2018.
McDermott will pay for the modification project primarily through
an increased bareboat charter rate over an extended 12 year term
once the modifications are complete. The Amazon owners have secured
an export credit-backed senior loan facility from a group of
lenders.
The Amazon will be delivered to IHC in the Netherlands in August 2019 for a conversion period that is
expected to last 10 months. Redelivery to McDermott is expected in
the summer of 2020.
About McDermott
McDermott is a premier, fully integrated provider of technology,
engineering and construction solutions to the energy industry. For
more than a century, customers have trusted McDermott to design and
build end-to-end infrastructure and technology solutions—from the
wellhead to the storage tank—to transport and transform oil and gas
into the products the world needs today. Our proprietary
technologies, integrated expertise and comprehensive solutions
deliver certainty, innovation and added value to energy projects
around the world. Customers rely on McDermott to deliver certainty
to the most complex projects, from concept to commissioning. It is
called the "One McDermott Way." Operating in over 54 countries,
McDermott's locally focused and globally-integrated resources
include approximately 40,000 employees and engineers, a diversified
fleet of specialty marine construction vessels and fabrication
facilities around the world. To learn more, visit
www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995, McDermott cautions that
statements in this press release that are forward-looking, and
provide other than historical information, involve risks,
contingencies and uncertainties that may impact McDermott's actual
results of operations. These forward-looking statements include,
among other things, statements about: the Amazon's future
capabilities, the benefits to us from the vessel
modifications; and the timing for delivery of the vessel to the
shipyard and completion of the modifications. Although we believe
that the expectations reflected in those forward-looking statements
are reasonable, we can give no assurance that those expectations
will prove to have been correct. Those statements are made by using
various underlying assumptions and are subject to numerous risks,
contingencies and uncertainties, including, among others, changes
in the modification project design or schedule. If one or more of
these risks materialize, or if underlying assumptions prove
incorrect, actual results may vary materially from those expected.
You should not place undue reliance on forward-looking statements.
For a more complete discussion of these and other risk factors,
please see McDermott's annual and quarterly filings with the
Securities and Exchange Commission, including its annual report on
Form 10-K for the year ended December 31,
2017 and subsequent quarterly reports on Form 10-Q. This
press release reflects management's views 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.
Contacts:
Investor Relations
Scott
Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281-870-5269
Gentry.Brann@McDermott.com
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SOURCE McDermott International, Inc.