McDermott Buys DeepSea (UK)

McDermott International, Inc. has acquired all of the outstanding shares of the DeepSea operating companies. Terms of the purchase are not being disclosed.

Headquartered in London, England, with engineering offices in Houston, Europe and Asia Pacific, DeepSea’s specialty services encompass subsea engineering and project management and extend from the wellhead to fixed, floating or shore-based production facilities for oil and gas operators worldwide.

“The acquisition of DeepSea by McDermott enables us to offer a greater number of subsea engineers with broader specialist services to reinforce our own engineering, procurement, construction and installation capabilities in executing subsea projects worldwide,” said Stephen M. Johnson, Chairman, President and Chief Executive Officer, McDermott. “It also allows us to accelerate the development of the Company to reach global tier one status in subsea project execution while also enabling us to be competitive in the European subsea market as well as in the international arena.”

Currently, DeepSea is undertaking work on some of the world’s leading SURF projects (subsea, umbilical, riser, flowline), including ongoing McDermott contracts. As these existing jobs close out, McDermott intends to integrate part of DeepSea’s 100-strong engineering talent pool into its current and potential projects to provide greater resources and improve flexibility for customer requirements and the growing offshore market.

McDermott also intends to retain and expand the respected DeepSea brand which will continue to focus on 3rd party engineering services from concept to commissioning. The DeepSea brand will now have access to engineering services and capacity through McDermott’s 800-strong engineers worldwide, and will be well placed to expand its range of services offered to customers.

Well known for raising the technical standard of engineering to improve cost-effective developments through enhanced quality, in tandem with safe and reliable performance, DeepSea and McDermott’s core values are aligned. Focused on people, integrity and performance, both companies are committed to deliver certainty on every customer’s project.

“The subsea projects we are currently executing and pursuing around the world, are typically becoming more complex and diverse, and are much more technical in nature and execution,” said Johnson.

“DeepSea is an integral part of our subsea growth plan. It allows us to ensure we have the foundation from which to grow and to execute our customers’ projects,” said Johnson. “We welcome DeepSea employees to the McDermott family and look forward to working together and successfully integrating both businesses to offer a broader and stronger offshore construction portfolio to fulfill our customers’ requirements.”

[mappress]

Press Release, March 14, 2013