Petrobras Floats 2 Vessel Contracts to Siem Offshore

Siem Consub SA, a 100% owned subsidiary of Siem Offshore Inc, has entered into an agreement with Petrobras, the major Brazilian Oil & Gas company, to build two Fast Passenger Vessels for 8 + 8 years time charter contracts. The accumulated contract value for the two vessels is approximately US $35 million for the firm period, and both vessels shall commence operation in second quarter of 2010. The vessels are to be built in Brazil and the accumulated cost price is approximately US $9 million.

The vessels are of GPA132 FPV design and are able to transport 60 passengers at a cruise speed of 20 knots to attend the expansion of offshore Brazilian North-eastern coast.

The two new vessels will come in addition to Siem Consub's current fleet composed by 10 vessels in operation and two vessels under construction.

The additional new long-term contracts with Petrobras results from client's satisfaction and confirms the renewal of the Siem Consub fleet in this segment.

We consider that Siem Offshore is well positioned to support the expected increase in demand for offshore support vessels in Brazilian waters with its local presence and Siem Offshore's total fleet of 43 vessels, of which 19 are under construction.