February 6, 2006
Horizon Offshore to buy DP2 vessel
Horizon Offshore, Inc. (OTCBB:HOFF) announced today that its subsidiary, Horizon Vessels, Inc., has agreed to acquire the Sea Wrangler, a dynamically positioned diving support and deepwater reel pipelay vessel. The company expects to complete the purchase later this month and to finance a portion of the purchase price. Horizon intends to rename the vessel the Texas Horizon and place it into service as soon as possible following routine maintenance due to the vessel's current laid up status. The company intends to utilize the vessel to support its Gulf of Mexico operations in both the U.S. and Mexican market areas.
David Sharp, President and CEO of Horizon Offshore, Inc. stated, "With the purchase of the Texas Horizon, we hope to capitalize on the improved marine construction market by expanding the scope of our services. This dynamically positioned vessel should add profitability to our pipelay operations by allowing us to provide services we've historically subcontracted, and also gives us additional flexibility to install small diameter deepwater flowlines and umbilicals. Given our recent Pemex award, we believe this vessel will provide immediate utilization."
Horizon Offshore, Inc. said February 1 that Pemex Exploracion y Produccion (Pemex) had issued a letter of award to two Horizon subsidiaries, for the Package 'J' pipelines of the KU-MALOOB-ZAAP project offshore Mexico. The contract calls for the installation, tie-in and associated commissioning of five pipelines under the KU-MALOOB-ZAAP project in the Bay of Campeche.
In addition to the newly acquired DP2 vessel, Horizon will utilize its lay barge Lone Star Horizon to perform the project.