McDermott confirms ‘Ceona Amazon’ buy

McDermott International confirmed on Tuesday it has acquired the newly built pipelay and construction vessel Ceona Amazon. 

Offshore Energy Today reported in late January that McDermott was set to acquire the offshore construction vessel Ceona Amazon at a hefty discount.

The vessel was reportedly bought for an estimated $80 million, which is an 80 percent discount compared to the $350 million newbuild price. The vessel’s original owner, Ceona, went into administration in September 2015.

The offshore installation player confirmed the vessel buy on Tuesday saying it will better position the company for ultradeepwater and SURF projects.

“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 ultradeepwater 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.”

McDermott plans to upgrade the vessel to address the ultradeepwater market with a 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.

The company noted that 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 J-lay system and related financing are expected to be considered in line with market conditions, the company added.

Completed in 2014, the Amazon is equipped with 49,514 square feet (4,600 square meters) of deck space complete with two 440-ton (400-tonne) cranes, a service speed of 12 knots and accommodation for up to 200 crew and service staff.

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