McDermott International Inc. (NYSE: MDR) has acquired the newly built pipelay and construction vessel Amazon to better position the company for ultra-deepwater and SURF projects, the company said in a news release.

The Amazon, completed in 2014, is equipped with 4,600 sq m (49,514 sq feet) of deck space with two 440-ton (400-tonne) cranes, a service speed of 12 knots and accommodation for up to 200 crew and service staff, the release said.

McDermott said it plans to upgrade the vessel to address the ultra-deepwater market with a J-lay system outfitted with the latest vessel technology. In the near term, McDermott plans to make minor capex investments to bring the vessel up to company standards. While upgrade plans are being finalized, McDermott said it plans to use the vessel on existing construction and pipelay 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 ultra-deepwater project coverage,” McDermott CEO David Dickson said in the release “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.”

Funding for the vessel acquisition was secured through a sale and leaseback arrangement under which McDermott has control of the vessel in exchange for a daily charter-hire rate, the release said. The planned upgrade to the J-lay system and related financing are expected to be considered in line with market conditions.

McDermott, Amazon, pipelay, construction, vessel