7 - News - June 3, 2005
Subsea 7 Orders New Build
Pipelay and Construction Vessel
The Board of Directors of Siem Offshore Inc (“SIEM”)
has performed an assessment of the medium to long
term market for rigid pipelay and subsea construction.
The Board expects the overall demand to grow and
that the development in the deeper waters will
constitute a significant portion of such growth,
particularly in West Africa and Brazil.
SIEM, through its subsidiary Subsea 7, has announced
that they have signed contracts for a new-build
rigid pipelay and construction vessel. The overall
project cost is in the USD 180-200 million range
and is based on fixed prices from the shipyard
and equipment supplier.
The vessel, which is 157m long and 28.4m wide,
will have a top tension capability initially of
300t, is upgradeable to around 400t and will have
a storage capacity of 3500t of steel pipe on the
main reel. The vessel will also have a 400t deepwater
crane, a built-in deepwater ROV spread and a comprehensive
survey system and will have the ability to install
flexible flowlines and umbilicals. The completed
ship is expected to be delivered in the second
quarter of 2007.
The vessel greatly enhances Subsea 7’s
pipelay capabilities, particularly in deepwater.
She is a much larger vessel than Subsea 7’s
existing pipelay vessel, the Skandi Navica, and
will have almost 50% more carrying capacity and
double the top tension capability. The current
charter on the Skandi Navica expires in December
2007, but can be extended through 2014 by seven
one year extensions in Subsea 7´s option.
Mel Fitzgerald, Subsea 7’s Chief Executive
Officer, stated, “We have seen considerable
growth in our business since Subsea 7 was formed
in 2002 and this is a fantastic opportunity for
us to consolidate our position in the premier
tier of contractors. The investment in a new vessel
also demonstrates our considerable commitment
to the global marketplace for underwater engineering
and pipeline construction operations”.
SIEM intends to finance the new vessel through
a combination of debt, existing liquidity and
cashflow from operations.
For further information please contact:
Mel Fitzgerald Tel: +44 1224 344300
CEO E-mail: email@example.com
Kristian Siem Tel: +44 20 774 70545
Chairman E-mail: firstname.lastname@example.org
Notes to editors:
1. With a workforce in excess of 3000 people
worldwide, Subsea 7 is one of the world’s
leading subsea engineering contractors. The company’s
global offshore operations are supported out of
Asia Pacific, Brazil, Gulf of Mexico, Norway,
UK and West Africa. Subsea 7 has more than 100
remotely operated vehicles (ROVs), four pipeline
construction yards and a fleet of modern, high
specification dynamically positioned ships capable
of deepwater reeled and flexible pipelay, deepwater
subsea construction and saturation diving. Website: