February 2010 Vol. 237 No. 2

Projects

McDermott Acquires Interests In Construction Vessels

J. Ray McDermott, S.A., a subsidiary of McDermott International, Inc. has finalized a transaction with Oceanteam ASA for the construction vessel, North Ocean 102 (NO102) and a new build vessel, North Ocean 105 (NO105).

J. Ray will have a 50% percent ownership stake in the NO102 vessel-owning company and a 75% ownership stake in the NO105 vessel-owning company – and will partner with Oceanteam to construct the new-build NO105. J. Ray has agreed to charter the vessels for five years from these respective companies after which, J. Ray can buy Oceanteam’s shares in both vessel- owning companies.

J. Ray intends to use the vessels to install products and facilities for the oil and gas industry, including submarine power cables, control cables and umbilicals, flexible pipelines, rigid-reeled pipelines, subsea components and hardware, as well as deepwater moorings for floating facilities.

The 427-foot NO102 should enable J. Ray to be an immediate player in the flexible pipe installation market. Delivery of the NO102 is scheduled in the third quarter. J. Ray plans to further upgrade the vessel’s capability by installing a high-capacity flexible-lay system for ultra deepwater installation work.

The second vessel, the 427-foot NO105, will be constructed at the Metalships & Docks S.A.U. shipyard in Vigo, Spain. It will be outfitted with a high-capacity rigid-reeled pipe lay system with top-tier payload capacity. The system will also accommodate installation of flexible products including submarine cables and umbilicals and flexible pipelines. The anticipated delivery date is late 2011.