Siem Offshore to Provide Two Well-Intervention Vessels for Helix

Siem Offshore Inc. announced that it has entered into agreements with Helix Energy Solutions Group, Inc. to provide two well-intervention vessels.

The two vessels will be owned by Siem Offshore and chartered by Helix for an initial period of 7 years, with options that can extend the charter periods up to 22 years. The terms for the two contracts are confidential between the parties.

Siem Offshore shall provide marine management, including crewing, for the two vessels. The two vessels will be constructed at the Flensburger shipyard in Germany for Siem Offshore, and are based on a design developed by Salt Ship Design.

The vessels have an overall length of 158 meters, a beam of 31 meters, and will be built in compliance with the MODU-class (Marine Offshore Drilling Units).

Siem Offshore’s aggregate project cost for the two vessels is expected to be approximately USD 420 million. Siem Offshore will finance the aggregated project cost for the two vessels by a combination of mortgage debt and bond issue.

Helix shall provide the topsides and manage the integration of the well-intervention equipment onto the vessels. Helix has entered into agreements with Petróleo Brasileiro S.A. (“Petrobras”) to provide well-intervention services offshore Brazil for an initial period of 4 years with options to extend.

The first vessel is expected to be in service for Petrobras by mid-2016, with the second vessel to follow later the same year.

Terje Sorensen, Chief Executive Officer of Siem Offshore, comments: “The agreements with Helix represent a targeted entry for Siem Offshore as vessel provider into the segment for Well-Intervention Vessels. Helix and Siem Offshore will capitalise on Siem Offshore’s excellent experience and position in Brazil to support Helix in their operations for Petrobras. Siem Offshore looks forward to serving Helix in its future operations and we are inspired by the confidence shown by Helix to select Siem Offshore as its business partner for this major step within well-intervention services.”

Press Release, February 12, 2014; Image: Salt Ship Design