McDermott signs shipyard contract for construction of deepwater S-Lay vessel Friday, Dec 28, 2012

McDermott International, Inc. (NYSE: MDR) (''McDermott'') announced today that one of its subsidiaries has signed a contract for the design and construction of a new high-spec, highly capable dynamically-positioned combination S-Lay vessel with a 2,000-ton crane.

''A combination heavy lift and deepwater S-Lay pipelay vessel is an important asset for our expanding fleet, focusing on the subsea construction market.''

The vessel, tentatively named Derrick Lay Vessel 2000 (''DLV2000''), will be constructed at Keppel Singmarine in Singapore and is expected to take approx 2.5 years to build.

''DLV2000 is expected to address a market demand we consider to be extremely robust for deepwater pipelines as well as our traditional markets,'' said Stephen M. Johnson, Chairman, President and Chief Executive Officer. ''A combination heavy lift and deepwater S-Lay pipelay vessel is an important asset for our expanding fleet, focusing on the subsea construction market.''

Developed by Keppel's ship design arm, Marine Technology Development (MTD), DLV2000 is equipped to support advanced deepwater pipelay operations that will allow pipelines to be installed at depths of up to 10,000 feet. An economical vessel transit speed is expected to be 12 knots with a top speed of 14 knots. On completion, the vessel will be able to accommodate up to 400 personnel.