Helix Inks Petrobas Contracts

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February 11, 2014

An illustration of the well intervention vessels

Houston-based Helix Energy Solutions (NYSE: HLX) announced Tuesday that it has inked agreements with Petrobras to provide well intervention services offshore Brazil.

Helix will be providing the services with two newbuild monohull well-intervention vessel, which will be built at the Flensburger shipyard in Germany for Siem Offshore.

Under the agreement, Helix will provide the topsides and manage the integration of the well intervention equipment onto the vessels, while Siem will be responsible for the newbuilds and overseeing their construction at the shipyard.

Siem says the vessels will be based on a design developed by Salt Ship Design and have an overall length of 158 meters, a beam of 31 meters, and be built in compliance with the MODU-class (Marine Offshore Drilling Units).

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 company said in a statement, and 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.

“Brazil represents a significant opportunity for Helix, as does a relationship with Petrobras,”, said Helix CEO, Owen Kratz. “This is a major step forward in the execution of our strategic goal to be the best-in-class global leader to rig alternative intervention. This award demonstrates the capacity for Helix to provide innovative solutions to fit the client need backed by our proven reliable track record.”

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