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McDermott acquires Amazon newbuild

Written by  OE Staff Tuesday, 21 February 2017 08:38

McDermott International acquired the newly built pipelay and construction vessel Amazon designed for its ultra deepwater and SURF projects.

Image of the Amazon, from McDermott.

McDermott plans to upgrade the vessel to address the ultra deepwater market with a state-of-the-art J-lay system outfitted with the latest vessel technology. In the near term, the company 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.

Funding for the vessel acquisition has been secured through a sale and leaseback arrangement under which McDermott has control of the vessel in exchange for a daily charter-hire rate. The planned upgrade to the state-of-the-art J-lay system and related financing are expected to be considered in line with market conditions. 

Completed in 2014, the Amazon is equipped with 49,514sq ft (4600sq m) of deck space complete with two 400-tonne cranes, a service speed of 12 knots and accommodation for up to 200 crew and service staff.

“This is a great opportunity for the company to expand the technical capabilities of our global fleet and grow in the deepwater and SURF markets and greatly increase our ultra deepwater project coverage,” said David Dickson, president and chief executive officer of McDermott. “Due to current market conditions and the opportunistic nature of the transaction, we were able to acquire what is essentially a new, enabling asset at a fraction of the original build cost.”

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