Are IMO regulations tough enough to keep national governments from imposing stricter measures?

Only partly
No--expect a slew of regional regs!

Marine Log

July 24, 2007

Hornbeck swoops on Sea Mar

Plans for SEACOR Holdings Inc.(NYSE:CKH) and Nabors Industries Ltd. to form a joint company to own and operate the Nabors Sea Mar fleet of 20 OSV's were announced June 28.

Now that plan has evidently fallen apart.

Today, Hornbeck Offshore Services, Inc. (NYSE: HOS) reported that it has entered into a definitive asset purchase agreement with certain affiliates of Nabors Industries Ltd to acquire the 20 offshore supply vessels and their related business for a cash consideration of $186.0 million, plus the cost of any fuel inventory on such vessels.

The Sea Mar Fleet consists of ten 200 class DP-1 new generation OSVs and ten conventional OSVs.

Hornbeck Offshore has also agreed to purchase one 285-foot DP-2 new generation OSV currently under construction at a domestic shipyard with an anticipated fourth quarter 2008 delivery. The expected cost of this newbuild vessel, prior to allocation of construction period interest, is approximately $34.0 million, of which about $7.3 million will be paid to Nabors at closing.

All of the vessels to be acquired by Hornbeck Offshore are U.S. flagged and qualify for U.S. coastwise trade under the "Jones Act" except for one of the conventional vessels, which is foreign-flagged.

In addition, under a separate agreement and effective upon closing, Hornbeck Offshore will manage five Nabors-owned Mexican flagged vessels currently operating offshore Mexico.

The Sea Mar acquisition will be funded with cash on-hand and is expected to be immediately accretive to earnings, says HOS.

Cash utilized for thes transaction will not alter Hornbeck's plans to fund its previously announced newbuild and conversion programs from remaining cash on-hand and projected cash flows from operations.

Closing is subject to customary conditions, including third party consents and regulatory approvals, and is expected to occur in early August 2007.

HOS Chairman, President and CEO Todd Hornbeck commented, "We are very excited about not only acquiring a well regarded fleet of new generation OSVs, but also the opportunity to attract Sea Mar's highly respected mariners and its shoreside management and support staff to become part of the Hornbeck Offshore team. Sea Mar has an outstanding reputation for quality and safety, and we believe that its operational culture is very similar to our own."