HOS Expands OSV Newbuild Program... Again

Hornbeck Offshore Services (HOS) has announced that it has once again expanded its already massive U.S.-built, owned and operated newbuild program by a total of four vessels, as well as laid out its intentions to ultimately build up to eight Jones Act-qualified MPSVs.

The newbuilds announced today are a subset of HOS’ growing OSV newbuild program, rightfully called OSV Newbuild Program #5, which now stands at a total of 24 vessels that are to service the growing subsea construction and IRM market in the U.S. Gulf of Mexico beginning in 2015.

HOS says the first two new Jones Act MPSVs will be based on the HOSMAX 310 design, with expected delivery in the second and third quarters of 2015. These new U.S.-flagged, Jones Act-qualified MPSVs will include an IMO Special Purpose Ship (“SPS”) code-ready class notation, a 250-ton heave-compensated knuckle-boom crane, helideck, moonpool and accommodations for 73 persons, and will be suitable for two work-class ROVs.

With respect to the other two vessels, HOS says that they are still currently evaluating whether to exercise the next two options for additional HOSMAX 320 OSVs, or construct additional new Jones Act-qualified MPSVs. Assuming the Company opts to build all four vessels, HOS says that the aggregate incremental cost will be approximately $260.0 million, or roughly $85.0 million per MPSV and $45.0 million per OSV.

The announcement expands Hornbeck’s on-going Newbuild Program #5 to a total of 24 vessels, including four 300 class OSVs, six 310 class OSVs, twelve 320 class OSVs and two 310 class MPSVs.

HOS’ Newbuild Program #5 In a Nutshell