New HMC Crane Vessel To Capitalize on Favorable Market Outlook

With a record backlog and a growing global presence, the outlook of Heerema Marine Contractors (HMC) is promising. To further support the company's growth HMC is continuing with the development of its fourth crane vessel, which will be capable of heavy lifting and deepwater pipelaying.

New Crane Vessel

Late 2007 HMC awarded a contract for the Basic Engineering for the new deepwater construction vessel. HMC is also preparing to let contracts for the supply of diesel engines and thrusters for the new vessel, and has signed a contract with Lloyd's Register for the provisions of certification activities.

Depending on market conditions HMC is looking for an opportunity to place an order with an East Asian shipyard and is continuing the concept design of the J-lay tower.

The state-of-the-art vessel will be capable of heavy lifting and deepwater pipelaying. The new vessel will also enable HMC's clients to move towards exploitation of the reserves under the polar ice sheet.

John Reed, HMC's CEO, says: "Our prospects are promising. Oil prices are well above US$100 a barrel and we have sold out our existing fleet availability to almost 50% through 2012! As HMC is a privately owned company, it is intended the vessel will be financed from various sources, including internally generated funds, bank financing and private equity. Nevertheless, the new vessel remains a large investment and we are always open to discussion with our clients or other equity investors who have an interest in this exciting project."

Recent Awards Confirm Reputation

2008 started with some important awards for HMC. John Reed: "We were awarded a major project for Woodside to be executed offshore Australia in 2011 and 2012. This supports our strategy to reenter the Asia-Pacific market. In addition we have been awarded a major project for ConocoPhillips for the engineering, offshore preparation, removal and onshore recycling of nine platforms in the North Sea."

HMC has built a solid reputation for solving seemingly impossible challenges and delivering on its promises. The company is known for its excellence in engineering, project management and offshore execution. John Reed adds: "We build on a passionate workforce and a fleet that supports full field development by oil and gas companies worldwide in the toughest of environments. That's what makes us unique in the market."