Jones Act OSV New-build Program Expanded by Hornbeck Offshore

Press Release
Wednesday, September 05, 2012
A Hornbeck OSV: Photo courtesy of Hornbeck Offshore

Hornbeck Offshore expands OSV new-build program, anounces retrofits & other related developments.

The Company has exercised the first four of its 48 options to build additional HOSMAX vessels at an aggregate incremental cost of approximately $180 million, excluding construction period interest, for vessel deliveries in the fourth quarter of 2014 and first quarter of 2015.  These four new vessels will expand the Company's fifth OSV newbuild program, which was announced in November 2011, from 16 vessels to a total of 20 U.S.-flagged HOSMAX class DP-2 new generation offshore supply vessels ("OSVs") for its Upstream business segment.

These 20 vessels are being built at two shipyards in the United States, which qualifies them for coastwise trade in the U.S. Gulf of Mexico ("GoM") under the Jones Act; however, the Company expects them to service the anticipated increase in deepwater and ultra-deepwater drilling activity in all three of the Company's core geographic markets of the GoM, Brazil and Mexico.

The HOSMAX class DP-2 vessel designs contemplated by this newbuild program feature three different size vessels (300, 310 and 320 feet in length) each with cargo-carrying capacities ranging from 5,650 to 6,200 deadweight tons and more than 20,000 barrels of liquid mud. 

In addition to the expansion of its HOSMAX newbuild program, the Company has decided to move forward on a new retrofit program that will upgrade and stretch six of its 200 class DP-1 new generation OSVs converting them into 240 class DP-2 OSVs.

Hornbeck summarizes recent developments as follows:

    •    Exercises first four of 48 shipyard options for two additional 310 class OSVs and two additional 320 class OSVs
    •    Extends exercise dates for 44 remaining options by ~60 days each, while maintaining original pricing and delivery dates
    •    Next option exercises are not required until February 2013, providing additional time and greater flexibility
    •    Commences retrofit program to stretch and upgrade six 200 class DP-1 OSVs into 240 class DP-2 OSVs
    •    Updates net interest expense guidance to reflect GAAP accounting treatment for recent convertible bond financing
    •    Reports no vessel damage from Hurricane Isaac and no pre-storm cancellation of vessel charters by customers


 

Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Maersk Line CEO: 11 New Ships Likely in Q2 2015

Maersk is considering ordering 11 container megaships in the second quarter of 2015, the Wall Street Journal reported today. "We need to grow with the market and increase our capacity by 425,

Drying Cabinets Handy On Board Nexus

In 2014, Pronomar equipped Van Oord’s offshore cable laying vessel Nexus with three drying cabinets, each responsible for the drying of eight sets of workwear.

Keels Laid for Two Aluminum OSVs

Triangle Marine Services and Marine Core & Charter host keel laying ceremony for two Aluminum Fast Offshore Support Vessels   UAE-based shipbuilder Triangle Marine

Ship Repair & Conversion

Electronics Retrofit for Taiwanese Research Vessel

L-3 SAM Electronics has been awarded a contract to retrofit propulsion control and automation systems aboard the Taiwanese Navy’s Ta Kuan hydrographic and oceanographic research vessel.

Tall Ship in Wet Dock for Repairs

The largest brig to be built in the U.K. in a century sailed into in a Greenock dry dock yesterday for general maintenance and essential winter repairs.   The

Europe Should Resume Shipbuilding

In the EU journal Parliament, Portuguese Member of European Parliament João Ferreira has proposed a five-point plan to stimulate growth in the EU shipbuilding industry.

Offshore

Ulstein Verft Delivers 'Blue Queen’

On 24 February 2015, ‘Blue Queen’ a platform supply vessel of the PX121 design, was delivered to Blue Ship Invest from Ulstein Verft. This vessel is the first

Indonesia Upbeat Ahead of IORA Chair

Indonesia is gearing up to turn its foreign policy focus westward when its role as Indian Ocean Rim Association (IORA) chair begins later this year, reports Jakarta Post.

Petrobras Scandal About to Hit Brazil's Political Class

Brazil's top prosecutor is expected to file charges in coming days against politicians implicated in the Petrobras corruption scandal, a political bombshell that

 
 
Maritime Contracts Maritime Standards Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2080 sec (5 req/sec)