Ocean Installer, McDermott Form North Sea Pipelay Alliance

Norwegian subsea entrepreneur Ocean Installer and leading offshore engineering and construction company McDermott have established an exclusive alliance to jointly meet customers’ increasing rigid pipelay needs in the North Sea subsea market.

The alliance marks McDermott’s re-entry into the North Sea and establishes Ocean Installer as a tier one North Sea contractor by adding rigid pipelay to the company’s capabilities.

“We are very pleased that McDermott has chosen Ocean Installer as its partner for the development of rigid pipelay solutions in the North Sea and we look forward to advancing our capabilities further together. Not only is this arrangement beneficial to our two companies, it brings about increased supply and dynamic competition, showing how companies can work together to address growing needs in the market,” says Steinar Riise, Chief Executive Officer of Ocean Installer.

“With our expanding portfolio of deepwater subsea projects primarily in Asia Pacific and the Gulf of Mexico, we look forward to working together with the experts at Ocean Installer to pursue subsea installation projects that support the continued development of the North Sea and further expansion of Norway’s offshore energy reserves,” says Stephen M. Johnson, Chairman, President and Chief Executive Officer of McDermott.

“This is another step towards McDermott becoming a tier one turnkey subsea engineering, procurement, construction and installation provider,” Johnson continues.

McDermott continues to expand its subsea resources including a growing fleet of rigid-pipelay vessels such as the highly advanced Lay Vessel North Ocean 105, its sister ship Lay Vessel 108 (expected to be available mid-2014), and recently announced new-build deepwater combination S-Lay vessel with a 2000-ton crane DLV 2000, (expected to be available in 2015).

The North Sea SURF (subsea, umbilical, riser, flowline) market is expanding rapidly and there is a clear need for additional capacity. McDermott and Ocean Installer are expected to address this by combining the highly specialised expertise of Ocean Installer’s North Sea organisation with the worldwide resources and experience of McDermott. The alliance implies a significant capacity increase in the region and is expected to make a notable impact on the regional subsea market.

The agreement commits the parties to exclusively pursue and jointly execute rigid pipelay projects in the North Sea and also serves as a framework for a more permanent relationship between the two companies.

[mappress]

Press Release, January 7, 2013