Cianbro Awarded Contract for World's Largest Offshore Supply Vessels

Cianbro Corporation was recently awarded a contract by Hornbeck Offshore Services of Covington, Louisiana, to complete the retrofit and conversion of two, coastwise, sulfur tankers into U.S.-flagged, new generation, 370-foot, multi-purpose supply vessels (MPSVs). When completed, it is believed that these vessels will be the largest offshore supply vessels in the world.

With a significant contribution from its primary subcontractor, Bath Iron Works, a subsidiary of General Dynamics (NYSE: GD), Cianbro is excited to secure this offshore project, and the highly skilled jobs it requires, for Maine.

Peter Vigue, Cianbro president & CEO, said, "Maine's greatest asset is our people. Their work ethic, ingenuity, and determination are second to none. We are grateful to Hornbeck for this opportunity, which provides Maine workers the ability to export their knowledge and skill to make this project a success. The collaborative efforts of this project team will help energize and elevate Maine's visibility as a serious competitor in the global maritime construction market."

Cianbro is scheduled to receive the first vessel this month. This vessel will dock at Ricker's Wharf, Cianbro's marine facility on Cassidy Point (beside Merrill's Marine Terminal) on Portland's waterfront.

Throughout the conversion process, activities will take place at four locations: Cianbro's Ricker's Wharf marine facility, the city's Portland Ocean Terminal, Bath Iron Works' fabrication facility in Brunswick, Maine, and Bath Iron Works' main shipyard in Bath, Maine. With one vessel scheduled to be completed by mid-2007, the second vessel is scheduled to be completed by late 2007.

Dugan Shipway, president of Bath Iron Works, said, "We're very pleased Cianbro invited us to be a member of this project team. Our involvement is a direct result of the tremendous performance by the men and women of BIW on our existing Navy contracts. Their dedication, hard work, and innovative ideas are improving our processes, increasing our efficiency and making it possible for us to consider other types of work. Today, we are delighted to be a part of this new opportunity for Maine."

Cianbro will also employ other local subcontractors in addition to Bath Iron Works, including heating, ventilation, and air conditioning (HVAC); fire protection; pipefitting and electrical suppliers; and more. Over 300 skilled people are expected to work on this project performing structural fabrication and welding, pipefitting and pipe welding, and electrical work. A local naval architect has been hired to assist the project. Cianbro will also rent space at Portland Ocean Terminal.

Capt. Jeff Monroe, Portland's director of ports and transportation, said, "The city is thrilled to once again partner with Cianbro on another important maritime project for our waterfront. This underscores our continuing need to have flexible marine infrastructure to meet the needs of our maritime community."

Along with jobs for Maine workers, the local economy will also receive a boost from members of Hornbeck's project management team, their engineers, and other offshore professionals employed by the project. Local hotels, restaurants, airports, and other merchants will experience the positive impact these project members will have on the state of Maine.

Todd Hornbeck, chairman, president and CEO of Hornbeck Offshore Services, said, "We are very excited about moving into the conversion phase of this innovative project. This represents the culmination of a three-year effort by our in-house engineering team to design a multi-purpose supply vessel with 'Swiss Army Knife' capabilities that, we believe, will revolutionize the offshore support services industry. The HOS 370s will be unlike any vessels currently working in the U.S. Gulf of Mexico, in that they are designed to have multiple U.S.C.G. certifications and ABS class notations. In addition to traditional offshore supply vessel capabilities, the HOS 370s are designed to support offshore construction, subsea well intervention, ROV operations, pipeline commissioning, pipe-hauling and flotel services, to name a few. We look forward to working with Cianbro and its team of sub-contractors in Maine to make this MPSV conversion project a huge success."


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