Subsea 7 S.A. has signed a letter of intent with Royal IHC in the Netherlands for the construction of a new reel-lay vessel and associated pipe lay equipment.
The cost, excluding capitalised interest, is expected to be below USD 300 million with an early 2020 delivery. The firm contract with Royal IHC is expected to be awarded before the end of 2017, subject to certain conditions and final Board approval.
Complex Rigid Flowlines
When delivered, the vessel will be Subsea 7's highest specification reel-lay vessel, capable of installing complex rigid flowlines including pipe-in-pipe systems and electrical trace heating. This capability will address the market trend towards longer tie-back developments. The new vessel will replace Seven Navica, which is expected to be retired from reel-lay operations in due course.
Expected Recovery of Market Activity
Jean Cahuzac, CEO, said: 'We have removed three owned vessels from our fleet during the last two years and will continue to actively manage our fleet composition. The expected gradual recovery of market activity and application of new cost-effective technology supports this investment decision, which will enable Subsea 7 to participate in new prospects that are already visible in the market.'
Picture: The new vessel is to replace the Seven Navica, which was built in 1999. The Seven Navica measures 109 x 22 m, features a 60 t offshore crane, a 2200 t main deck mounted storage and deployment reel, and can lay 2-inch to 16-inch diameter rigid pipeline (picture by Subsea7).
