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

   DOW JONES NEWSWIRES 
 

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

 
   MAIN FACTS: 

-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.

-By Dominic Chopping; Dow Jones Newswires; [phone]; [e-mail]