J Ray to finalizes Secunda acquisition

As most of you may know, Secunda as a company has been feeling a bit restless lately. I had originally heard they were intending to take the company public, to fund a badly needed fleet revitalization. The days dragged on and a years passed since then, all of a sudden J Ray McDermott, oil industry heavy weight, swoops in and gobbles up Secunda. Good for the crews at Secunda, hopefully it will provide some capital to the organization and further Canadian reach into the offshore market, which is great for all of us.

Below is the press release from J Ray McDermott.

Company Expands Worldwide Offshore Oil & Gas Construction Capabilities and Capacity

J. Ray McDermott, S.A. (J. Ray), a subsidiary of McDermott International, Inc. (NYSE: MDR) has signed a definitive agreement to purchase substantially all of the assets of Secunda International Limited (“Secunda”), including 14 harsh-weather, multi-functional vessels, with capabilities which include subsea construction, pipelay, cable lay and dive support, as well as its shore base operations. Of the 14 vessels to be acquired, eight are equipped with dynamic positioning capabilities. The purchase price is approximately $260 million.

In serving the worldwide oil and gas industry, Secunda has owned and operated construction, installation and support vessels for 24 years. Currently, Secunda’s vessels are operating in the U.S. and Mexican Gulf of Mexico, the North Sea and offshore Canadian markets. As the purchased vessels conclude their existing charter contracts, J. Ray intends to integrate certain of these assets in its current and potential markets to expand overall project capabilities, improve resource flexibility and provide additional services for customers. Earlier this month, J. Ray chartered one of the purchased vessels to deploy to its currently active Asia Pacific market.

“Secunda’s assets, and more importantly its people, will be a complementary and strategic addition to J. Ray’s offshore capabilities,” said Bob Deason, President and Chief Operating Officer of J. Ray. “With Secunda, J. Ray strengthens its traditional offshore construction business, increases the number of activities which can be self-performed, enhances our ability to utilize existing marine assets for higher value activities and additionally, supports its growing subsea development activities.”

J. Ray’s acquisition is contingent upon obtaining regulatory approval in Canada and the United States, and final due diligence. The transaction is expected to close early in the 2007 third quarter.

“We welcome Secunda’s employees to the J. Ray family,” continued Deason. “Working together and successfully integrating these businesses will result in a broader and stronger offshore construction portfolio and will permit better application of resources to fulfill our customers’ requirements.”

Secunda International Limited: http://www.secunda.com

J. Ray McDermott, S.A., a subsidiary of McDermott International, Inc. (NYSE:MDR), J. Ray McDermott, S.A. and its subsidiaries provide engineering, construction, procurement, installation and project management services to offshore oil and gas developments worldwide.

McDermott is an engineering and construction company, with specialty manufacturing and service capabilities, focused on energy infrastructure. McDermott’s customers are predominantly utilities and other power generators, major and national oil companies, and the United States Government. With its global operations, McDermott operates in over 20 countries with more than 20,000 employees, and can be found on the internet at www.mcdermott.com.

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this presentation that are forward-looking and provide other than historical information involve risks and uncertainties that may impact McDermott's actual results realized from the proposed acquisition. The forward-looking statements in this presentation include statements regarding the timing for closing the transaction, purchase price and expected benefits of this acquisition. Those statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including, without limitation, difficulties in integrating Secunda assets and employees with J. Ray’s operations and delays or other difficulties in satisfying closing conditions, including the receipt of regulatory approval and the results of final due diligence.

Pictured right. The Emerald Sea, ex Maersk Defender (previous life as cable ship for Alcatel - see Neptune doesn't like Canadians post on this blog) prior to receiving her new Secunda (aka - J Ray McDermott Canada) livery .