Helix teams with Siem for Brazil well intervention gig

FEBRUARY 12, 2014 — Siem Offshore Inc. (OSE: SIOFF) has entered into agreements with Helix Energy Solutions Group, Inc. (NYSE: HLX) to provide two newbuild well-intervention vessels. Helix will charter the vessels to provide well intervention services offshore Brazil under a new contract with Petrobras to provide well intervention services offshore Brazil.

The vessels will be built by German shipbuilder Flensburger Schiffbau Gesellschaft (FSG).

Helix will provide the topsides and manage the integration of the well intervention equipment onto the vessels, while Siem will be responsible for the monohull build and oversee the construction at FSG.

Siem will be the owner of the vessels, and charter both the vessels and marine crew to Helix for an initial period of seven years, with options that can extend the charter periods up to 22 years..

Helix's aggregate investment in the topside equipment for both vessels is expected to be approximately $260 million. The initial term of the contract with Petrobras is for four years with options to extend. The first vessel is expected to be in-service for Petrobras mid-2016, with the second vessel to follow later that same year.

The two 158 m x 31 m vessels will be based on Salt Ship Design's SALT 307 design. They will be built in compliance with the MODU-class (Marine Offshore Drilling Unit) and Well Intervention Unit 2 notation.

Siem Offshore's aggregate project cost for the two vessels is expected to be approximately $420 million.

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