Subsea 7 Gets $500 Million 5 Year Vessel Pact From Petrobras

18 November 2011

Norwegian engineering and construction contractor Subsea 7 SA said Monday it has been awarded a $500 million, five year contract by Petroleo Brasileiro SA, for the provision of a dedicated deepwater flexible pipelay vessel.

-Vessel will be used for operations offshore Brazil commencing H2 2014.

-As a result of this award, Subsea 7 will construct a newbuild flexible pipelay vessel.

-Total costs, upon delivery, are expected to be approximately $350 million and will be funded entirely from the company's existing cash resources.

-The new vessel will have an overall length of 146 meters, a beam of 30 meters and a Class-2 dynamic positioning system.

-She will be equipped for transporting and installing flexible flowlines and umbilicals in water depths of up to 3,000 meters including: a Tiltable Lay System with a top-tension capability of 550 tonnes, two under-deck storage carousels, a large deck crane and two work-class remotely operated vehicles.

-Delivery is planned for 2H 2014.

-Shares closed Friday at NOK113.50.