Hornbeck Offshore Services Inc. (HOS), Mandeville, La., announced recently that it has entered into a final settlement agreement on two multipurpose support vessels (MPSVs) that had been under construction at Gulf Island Shipyards LLC, Houma, La.
In accordance with the settlement, Gulf Island was required to dismiss with prejudice all claims it had against Hornbeck on account of Hornbeck’s termination of the vessel construction agreements with Gulf Island.
Hornbeck also dismissed its claims against Gulf Island. The surety has agreed to take over and complete the construction of the two MPSVs at a completion shipyard to be mutually agreed to by the surety and Hornbeck. Possession of the vessels will be delivered by Gulf Island to the surety for that purpose.
Hornbeck’s remaining contractual commitments under the construction agreements that have been taken over by the surety are approximately $53 million in the aggregate for the two vessels. The surety will be responsible for all cost of construction in excess of that amount. It is expected that the vessels will be completed in 2025.
"We are very pleased to be able to complete the construction of these two ultra high-spec, Jones Act-qualified MPSVs,” Todd Hornbeck, Hornbeck Offshore's president and CEO, said in an statement announcing the agreement. “When delivered, these vessels will be the two largest and, we believe, the most capable MPSVs in the U.S.-flagged Jones Act registry and will enhance our ability to support our oilfield, offshore wind and military customers across a broad spectrum of services."
HOS is a provider of offshore service vessels to the energy industry primarily in the Gulf of Mexico and Latin America.
