Subsea 7 Gets Contract For Three New-Build Vessels Worth $1.6 Billion

   By Dominic Chopping 
 

Norwegian seabed-to-surface engineering contractor Subsea 7 S.A. (SUBC.OS) Monday announced the award of three contracts from Petrobras (PBR) worth a total $1.6 billion for the construction and operation of three new-build pipe-lay support vessels (PLSVs).

 
   MAIN FACTS: 

-The work scope of each of these 5 year contracts is similar to that of the PLSVs which Subsea 7 currently operates offshore Brazil, comprising project management, engineering and installation of flowlines, umbilicals and equipment supplied by Petrobras.

-The three new PLSVs are of similar design to the Seven Waves, and will be constructed in Holland at the IHC Merwede shipyard.

-The vessels are scheduled to be delivered in 3Q 2016, 4Q 2016 and 2Q 2017 respectively.

-The total cost of the three vessels, including inventories, commissioning and mobilization to Brazil, is approximately $950 million.

-Shares closed Friday at NOK107.50, valuing the company at NOK37.82 billion.

-Write to Dominic Chopping at [e-mail]; Twitter: @WSJNordics

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