HOUSTON, Oct. 31 /PRNewswire-FirstCall/ -- Helix Energy Solutions Group, Inc. (NYSE: HLX) announced today that it has executed a letter of intent with Allseas Marine Contractors S.A. for the installation of the subsea infrastructure in connection with Allseas' engineering, procurement, installation and construction of Reliance Industries Ltd.'s Dhirubhai gas field development project in the Krishna Godavari Basin in the Bay of Bengal. Helix plans to use its deepwater construction vessel "Express" and its dive support vessel "Eclipse" on this project. The work consists of the installation suction piles, manifolds, rigid jumpers and spool pieces, flying leads and trees. The work is scheduled to commence in the fourth quarter of 2007. The estimated contract value is in the $140-150 MM range and the vessel utilization exceeds 400 days.
"We are extremely pleased with this important award," commented Martin Ferron, President and CEO of Helix. "This project is one of the largest planned deepwater field developments in the world and we are proud that Allseas and Reliance have full confidence in our employees, vessels and technologies. We are looking forward to contributing to a successful project in this emerging deepwater basin".
The MSV Express was acquired by Helix in the third quarter of 2005 and is currently working in the North Sea before leaving for work in Trinidad later this quarter. The vessel was recently upgraded with the addition of a second reel making the total reel capacity 3000 T and a new 150 T deepwater crane was installed to compliment the existing 400 T crane.
The DSV Eclipse is owned by Helix's wholly owned subsidiary, Cal Dive, and is currently working in the Mediterranean. It will perform a project in South African waters early next year before returning to its base in the Middle East.
Helix Energy Solutions, headquartered in Houston, Texas, is an energy services company that provides innovative solutions to the oil and gas industry worldwide for marginal field development, alternative development plans, field life extension and abandonment, with service lines including diving services, shelf and deepwater construction, robotics, well operations, well engineering and subsurface consulting services, platform ownership and oil and gas production.
This press release contains forward-looking statements that involve risks, uncertainties and assumptions that could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, any projections of revenue, gross margin, expenses, earnings or losses from operations, or other financial items; future production volumes, results of exploration, exploitation, development, acquisition and operations expenditures, and prospective reserve levels of property or wells; any statements of the plans, strategies and objectives of management for future operations; any statement concerning developments, performance or industry rankings relating to services; any statements regarding future economic conditions or performance; any statements of expectation or belief; any statements regarding the anticipated results (financial or otherwise) of the merger of Remington Oil and Gas Corporation into a wholly-owned subsidiary of Helix; and any statements of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include the performance of contracts by suppliers, customers and partners; employee management issues; complexities of global political and economic developments, geologic risks and other risks described from time to time in our reports filed with the Securities and Exchange Commission ("SEC"), including the Company's Annual Report on Form 10-K for the year ending December 31, 2005; and, with respect to the Remington merger, actual results could differ materially from Helix's expectations depending on factors such as the combined company's cost of capital, the ability of the combined company to identify and implement cost savings, synergies and efficiencies in the time frame needed to achieve these expectations, prior contractual commitments of the combined companies and their ability to terminate these commitments or amend, renegotiate or settle the same, the combined company's actual capital needs, the absence of any material incident of property damage or other hazard that could affect the need to effect capital expenditures, any unforeseen merger or acquisition opportunities that could affect capital needs, the costs incurred in implementing synergies and the factors that generally affect both Helix's and Remington's respective businesses. Actual actions that the combined company may take may differ from time to time as the combined company may deem necessary or advisable in the best interest of the combined company and its shareholders to attempt to achieve the successful integration of the companies, the synergies needed to make the transaction a financial success and to react to the economy and the combined company's market for its exploration and production. We assume no obligation and do not intend to update these forward-looking statements.
SOURCE Helix Energy Solutions Group, Inc.
CONTACT: Wade Pursell, Chief Financial Officer of Helix Energy Solutions Group, Inc., +1-281-618-0400, or fax, +1-281-618-0505