Helix Wins $250 Million Well Intervention Contract from Shell

Well Ops UK Ltd., a wholly owned subsidiary of Helix Energy Solutions (NYSE: HLX), has entered into an approximately $250 million contract extension with Shell UK Ltd for the provision of Light Well Intervention (LWI) services for their North Sea subsea wells. Shell initially entered into a contract with Well Ops UK for the DP MSV Seawell in May 2000, but has extended their commitment to include annual campaigns of work with a minimum utilization of 185 days per year from 2007 through to 2010 with further options for an additional 60 days per year.

Owen Kratz, Chairman and Chief Executive Officer of Helix, stated: "This is a milestone award for Well Ops UK and the light well intervention market, and maintains our position as the leading provider of subsea well intervention services in the North Sea. We are delighted to secure this contract extension and look forward to continuing our longstanding and successful working relationship with Shell.

"Our board of directors recently approved the construction of a $160 million multi-service dynamically positioned dive support / well intervention vessel that will be capable of working in the North Sea and West of Shetlands. We expect this vessel equipped with a coil tubing intervention unit to join our fleet in 2008. We believe that with two multi-service vessels capable of performing LWI services and our Q4000 semi-submersible that uses our purpose built 7 3/8" 10,000 psig intervention riser system (IRS) we are well positioned to perform well intervention services for the rapidly growing global subsea well market."

The MSV Seawell has been operating in the North Sea exclusively since 1987, during which time it has performed well intervention services on over 600 subsea wells and decommissioned over 150 wells. The application of LWI and IRS technology, coupled with the speed, flexibility, stability and reliability of a purpose-built DP vessel significantly reduces the unit cost of well intervention and broadens the opportunity to enhance oil recovery rates in subsea wells.