Subsea 7 orders pipelay vessel

Subsea 7 says it is adding a new pipelay/construction vessel to its fleet.

Offshore staff

(Netherlands) - Subsea 7 says it is adding a new pipelay/construction vessel to its fleet. The vessel will measure 154 m long and 28.4 m wide. It will come equipped with a vertical lay system with top tension capability in excess of 400 tons, combined with a storage capacity for flexible pipe based on two 1,250-ton carousels below deck and a 3,000-ton carousel or multiple reels on deck.

The vessel will have a 400-ton deepwater crane, built-in deepwater ROV spread and a comprehensive survey system. The completed ship is expected to be delivered in 2Q 2008.

The vessel's vertical lay tower is designed to enable operation in J-lay mode for rigid pipe, as well as installation of large structures associated with deepwater riser systems.

The overall project cost is estimated to be in the range of $170-200 million, depending on options exercised. The estimate is also based on fixed prices from the Merwede shipyard and equipment supplier Huisman, both located in the Netherlands.

Mel Fitzgerald, Subsea 7's CEO, commented, "We have seen considerable growth in our business since Subsea 7 was formed in 2002 and this vessel represents a further opportunity for us to expand our services to meet our clients' increasing demands for deepwater developments."

"The enhancement of our fleet with the addition of this new flexlay/J-lay vessel together with our new reeled rigid pipelay vessel, which is due to be delivered in 2Q 2007 enables us to fulfill one of our key strategic objectives of having the ability to install flexible and rigid pipelines in ultra deepwater.

"The investment in a second new vessel demonstrates our confidence in our market sector and considerable commitment to the global marketplace for subsea engineering and pipeline construction operations."

Subsea 7 intends to finance the new vessel through a combination of debt, existing liquidity and cashflow from operations.

02/15/06

More in Rigs/Vessels