Offshore energy services provider
Helix Energy Solutions Group Inc.
) announced the receipt of a contract from Brazil's state-run
energy giant Petroleo Brasileiro S.A. or
) to supply well intervention solutions by using two newbuild
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The vessels will be constructed at the Flensburger shipyard in
Germany for Norway's Siem Offshore, on the basis of a model
developed by Salt Ship Design and will cost around $260 million.
Initially, Helix will charter the vessels from Siem Offshore for
a 7-year period, with options that can extend the duration to 22
years. The vessels - to be built in accordance with the
MODU-class (Marine Offshore Drilling Units) - are slated to be
158 meters long and 31 meters wide.
Helix will be responsible for providing topsides, while looking
after the integration of the well intervention gear for vessels.
On the other hand, Siem - the owner - will build the monohull,
supervise the construction at the shipyard and charter the marine
Though the preliminary agreement between Helix and Petrobras is
for 4 years, it can be extended. Helix expects the first vessel
delivery sometime in mid-2016, with the second one to follow
later during that year. The order is part of Helix's strong,
longstanding relationship with Petrobras and further strengthens
its already solid footing in Brazil.
Houston, TX-based Helix Energy offers marine contracting
services, apart from operating offshore oil/gas properties and
production units. The company looks to add value to the clients'
energy assets by deploying vessels from its diverse portfolio of
Helix currently holds a Rank #3 (Hold), implying that it is
expected to perform in line with the broader U.S. equity market
over the next one to three months.
Some better-ranked stocks in the oilfield services sector include
Exterran Partners L.P.
Emerge Energy Services L.P.
). Both of them carry a Zacks Rank #2 (Buy).