Hornbeck Offshore announces expansion of OSV newbuild program #5

COVINGTON, La. – Hornbeck Offshore Services announced today that it has expanded its OSV Newbuild Program #5.

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 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 under the Jones Act, the company reported; however, the company expects them to service the anticipated increase in deepwater and ultra-deepwater drilling activity in all three of its core geographic markets of the Gulf of Mexico, Brazil and Mexico.  The HOSMAX class DP-2 vessel designs contemplated by this newbuild program feature three different size vessels (300’, 310’ and 320 ‘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. Hornbeck considers the option vessel pricing to compare favorably with all other recently announced newbuild programs for vessels of similar size and specifications. 

Hornbeck expects the aggregate cost of the first 20 vessels committed under this potential 64-vessel construction program, including the four option vessels announced today, to be approximately $900 million, excluding construction period interest. 

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