Helix Energy Solutions Group has signed a US $346 million contract with Sembcorp Marine’s subsidiary Jurong Shipyard in Singapore for the construction of a newbuild semisubmersible well intervention vessel, as recently revealed by the company (see DI, 1 August 2013, page 2).

The newbuild vessel, named the Q7000, will be Houston-based Helix’s second semisub well intervention vessel built by Jurong. The company said that, based on strong market demand and its record of operating specialised deepwater well intervention assets, it believed the vessel would be a valuable addition to its growing fleet.

Sembcorp added that the semisub is scheduled for delivery mid-2016, with the rig to be built based on a design jointly developed by Sembcorp Marine Technology Pte Ltd (SMTP), a fully-owned Research & Development subsidiary of Sembcorp Marine, and Helix.

The Q7000 is an efficient purpose-designed platform with capabilities to perform a wide variety of tasks, including conventional and extended top hole drilling, subsea construction, decommissioning well intervention, coiled tubing operations and twin ROV deployment, added Sembcorp. The Dynamic
Positioning (DP) class 3 unit will be able to carry out deepwater operations worldwide, including the North Sea and West Africa.

Helix already has the Helix 534 well intervention vessel due to come into service in the fourth quarter of this year, and the Q5000 well intervention semisub rig due in service during the first half of 2015.

In a recent Barclays CEO Energy conference presentation, Helix flagged up its primary target for operations as being the US Gulf, the North Sea and West Africa, but also highlighted future growth potential in emerging markets such as Asia Pacific, the Mediterranean, Canada and Brazil.

Specifically for its well intervention fleet, Helix said the utilisation rate is expected to remain strong, with its Q4000 unit having contract backlog through 2015, with ongoing negotiations to extend its contracted work into 2018. The Q5000 semisub rig has an initial backlog of 270 days annually over the first five years of operations, it added, while the Helix 534 – once its conversion into a well intervention vessel in Singapore is completed in the fourth quarter – has a full backlog for the remainder of this year through 2014, with backlog building into 2017.

The Seawell, Well Enhancer, and Skandi Constructor vessels are also fully booked through 2014, with commitments into 2015. The company’s North Sea well intervention vessels have more than 950 days of committed work in 2014 in the UK, Africa, and Canada, it continued.

Helix further pointed out that it has invested approximately US $135 million this year on the Q5000 newbuild project, while for the Helix 534 conversion the updated cost estimate is now $206 million for vessel, conversion and the intervention riser system (approximately $39 million remaining be incurred in 2013).

The company has also invested approximately $43 million for the intervention riser system and deck modifications for the Skandi Constructor (approximately $13 million remaining to be incurred in 2013).