Heerema Marine Bags $1B Contract for BP Angolan Project

Heerema Marine Contractors (HMC) has been awarded the URF-1 Risers and Production Flowlines contract for the first Project ,‘PSVM’ (Plutao, Saturno, Venus and Marte fields) in the BP Angolan Program.

This USD$1 billion contract, the largest contract in HMC's history, covers engineering, procurement, construction, installation (EPCI) and the testing of Pipe-in-Pipe production flow lines, service flow lines as well as vertical riser systems. The award is the first out of a framework of up to four (4) potentially similar projects off the coast of Angola.

The award confirms HMC's solid reputation in the deepwater construction market. Steve Preston, Executive Vice President Commercial, said, "We are very proud to have won this contract. The contract proves the trust of our clients in our ability to perform in this challenging market. Over the last five years, we built up tremendous expertise in the deep waters of the Gulf of Mexico. With our clients, new technologies were developed. Now that the deepwater development off the West African coast is booming we will be able to export this unsurpassed deepwater development expertise to this region and its local stakeholders."

The award is the first out of a framework of up to four (4) projects. HMC sees this award as part of its strategic repositioning of the deepwater construction vessel 'Balder' to West Africa and serving deep water projects in the long term in this region. The BP Program framework Agreement provides a business level to support HMC’s strategic repositioning and also allows HMC to increase local presence and to contribute to sustainable Angolan development. As part of the holistic approach, HMC plans to invest in the set up of local offices, an Angolan Marine Transport Company as well as an integrated Marine Construction Support Base / Multi-Joint Yard.

Steve Preston added, "The holistic approach will also stimulate the existing Angolan industry. The majority of the onshore fabrication work will be performed by Angolan yards. This will deliver many man years of work for the existing Angolan industry. Also, during the project, many Angolan nationals will be employed by the new HMC local marine base and Multi-Joint Yard."

The pre-sanction engineering has started. The offshore installation work is expected from mid-2010 onwards and will be performed by the deepwater construction vessel 'Balder.'

The welding technology will be supported by Pipeline Technique Ltd (PTL), HMC’s recently acquired welding specialist in Scotland.