The company’s project teams have adapted work practices to help safeguard the health of the workforce on its vessels, at its onshore worksites and in its offices, while working on the logistical challenges of keeping clients’ projects moving forward.
Measures taken to prevent the spread of the virus to date have included crew quarantines, extended crew rotations, reduced operating capacity at onshore sites to allow for social distancing, and remote working for our engineers and office staff.
However, work had to cease recently for a period on one vessel in Brazil to manage various confirmed COVID-19 cases on board.
Subsea 7’s SURF and conventional clients have cut their budgets for this year by 20-25% and have for the most part paused tendering activity. Although the contractor managed to win $1.5 billion of new orders during 1Q order flow looks set to be low.
The Renewables and Heavy Lifting business continues to tender for offshore wind farm projects.
Subsea 7 is working on its own cost reduction program to address current market conditions. This will likely mean a reduction in our global workforce, the release of some chartered vessels and stacking of various owned vessels.
Nevertheless, the company expects to take delivery this summer of the newbuild rigid reel-lay vessel Seven Vega, which is scheduled to work on several projects.