Subsea 7 has signed a letter of intent with Royal IHC in the Netherlands for the construction of a new US$300 million reel-lay vessel and associated pipe lay equipment for delivery in early 2020.
A firm contract is expected to be awarded before the end of 2017. When delivered, Subsea 7 says the vessel will its highest specification reel-lay vessel, capable of installing complex rigid flowlines including pipe-in-pipe systems and electrical trace heating.
Subsea 7 says its capability will address a market trend towards longer tie-back developments. The vessel will replace the Seven Navica, which is expected to be retired from reel-lay operations in due course. Subsea 7 bought the Seven Navica in 2008 for $62 million.
Jean Cahuzac, CEO, said: "We are committed to having the right fleet size and specification to meet the needs of our clients. We achieve this through a combination of owned high-specification vessels and leased vessels having strict regard to capital discipline. 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."