FGH Announces Two New Contracts

Wednesday, October 10, 2001
Halter Marine, Inc. the vessel segment of Friede Goldman Halter, Inc. announced that it has signed a contract with an undisclosed customer to build a 332' x 74' x 25', double-skin, clean oil tank barge with an estimated 80,000 BBL capacity. This vessel meets the requirements of the Oil Pollution Act of 1990 (OPA 90). Double skin barges and tankers are gradually replacing the single skin fleet, and are more "environmentally friendly"

This barge is similar in design to one currently under construction at the Halter Gulfport, Miss. facility. Construction will begin at Halter's Gulfport, Miss. facility and take approximately 12 months. Although no new jobs will be created, the project is expected to sustain the facility's current workforce. In recent years, Halter has built 88 similar barges, and currently holds contracts and options for an additional 8 vessels.

Anil Raj, Chief Operating Officer said, "With multiple shipyards, our Halter Marine Company has the nation's largest experienced workforce and capacity for building double-skin barges. We are able to offer deliveries to meet the deadline and constraints of the Oil Pollution Act of 1990."

The Shipbuilders Council of America (SBC), in its October 3, 2001, statement, echoed earlier warnings from the Maritime Cabotage Task Force and the National Defense Transportation Association's Sealift Committee that construction of double-hulled tankers must increase dramatically to avoid a shortage of US-flagged ships. It is anticipated that demand could exceed supply by as much as 24% in the next three years.

Friede and Goldman, Ltd. the design engineering segment of Friede Goldman Halter, has also been awarded a new contract with a major drilling contractor to perform the design engineering for the upgrade of a drilling unit. The upgrade includes a new cantilever beam design as well as reinforcement of the hull. The two new contracts will have a value of approximately $7.5 million. Source: Business Wire

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