Subsea 7 Orders new Flexlay Vessel
Subsea 7 has entered into contracts for the building of a new Flexible Pipelay and Construction vessel. The vessel will be 154m long and 28.4m wide. Its pipelay equipment will include a vertical lay system with top tension capability in excess of 400t, combined with a storage capacity for flexible pipe based on two 1250t carousels below deck and a 3000t carousel or multiple reels on deck. The vessel will have a 400t deepwater crane, a built-in deepwater ROV spread and a comprehensive survey system. The completed ship is expected to be delivered in the second quarter of 2008.
The vertical lay tower is also designed to enable operation in J-lay mode for rigid pipe and the ability to install large structures associated with deepwater riser systems. Subsea 7 has options to have the vessel delivered with both of these capabilities fully operational.
The overall project cost is estimated to be in the range of US $170-200 million, depending on options exercised, and is based on fixed prices from the Merwede shipyard and equipment supplier Huisman, both located in the Netherlands.
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 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 the second quarter of 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."
Subsea7 intends to finance the new vessel through a combination of debt, existing liquidity and cashflow from operations.
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