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October 11, 2012

Hornbeck Offshore awards OSV conversion contract to Bollinger Shipyards

Hornbeck Offshore Services (HOS) has awarded a contract to Bollinger Shipyards to convert six 200 class DP1 offshore supply vessels (OSVs) to 240 class DP2 vessels.

By admin-demo


Hornbeck Offshore Services (HOS) has awarded a contract to Bollinger Shipyards to convert six 200 class DP1 offshore supply vessels (OSVs) to 240 class DP2 vessels.

The six OSVs are part of Hornbeck’s ten Super 200 class DP1 units and four of the vessels recently completed two-year charters with Petrobras in Brazil.

Hornbeck acquired the OSVs in 2007 and the conversion is planned to be carried out at two separate Bollinger facilities; Bollinger Larose and Bollinger Morgan City in the US.

In recent years, the two facilities have serviced the super 200s for regulatory and routine maintenance.

Under the conversion programme, the six vessels will receive 40ft mid-body extensions and DP upgrades that will add about 600t to the ships’ capacity.

Each vessel’s capacity will be increased to 2,850dwt, and their liquid mud carrying capacity will be nearly doubled to approximately 8,000 barrels.

Hornbeck expects that the ships will be delivered in three phases, with two each in May 2013, August 2013 and December 2013, respectively.

The company said the conversion works will cost around $50m and it expects to incur about 762 vessel-days of total commercial downtime for the six vessels.

Following the conversion programme in 2013, Hornbeck said the new 240 class DP-2 vessels will command higher day rates, higher margins and higher return-on-invested-capital than they would have as 200 class DP-1 vessels.

In September 2012, the company exercised options to build four more offshore support vessels (OSVs) for $180m, including two 310 class and two 320 class OSVs.

The four vessels are part of 48 shipyard options and are scheduled to be delivered in the fourth quarter of 2014 and the first quarter of 2015.

The order is part of Hornbeck’s 64 vessel newbuilding programme launched in November 2011 and will expand the company’s fifth OSV newbuild programme from 16 vessels to 20 HOSMAX class DP-2 new generation OSVs for its upstream business segment.

The company said that the option period for the remaining 44 ships has been stretched by 60 days, each without changing the pricing and original delivery dates.

As a result, Hornbeck’s decision on the exercise of the next option at each of the two shipyards is not due until 1 February 2013 and 19 February 2013 respectively.

Delivery dates for the remaining 44 vessels, if they are exercised, will be around 24 to 26 months following the date of each respective option exercise, with the last newbuild vessel under this programme to be delivered in January 2018.

Image: Following the conversions in 2013, the capacity of each 240 class DP-2 vessel will be increased to 2,850dwt. Credit: Bollinger Shipyards.

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