Siem Offshore Inc. announces that it will enter into the business for submarine cable installation, repair and maintenance projects.
Siem Offshore has identified the installation of submarine cables and associated services to be an emerging growing market, both with respect to field and landfall cables in the offshore oil and gas industry, and with respect to inter-array as well as export cables in the offshore renewable energy market.
Siem Offshore and the shareholders of Five Oceans Services ("FOS") have reached an agreement whereby Siem Offshore will acquire all shares in FOS. The transaction combines the marine operating capacities of Siem Offshore with the engineering capabilities and project execution expertise of FOS and forms a strong entity to meet the forecasted market growth and customer requirements. We look forward to intensify and develop relationships with current as well as future clients in order to execute projects in a professional and timely manner meeting the highest industry standards on both safety and quality.
Siem Offshore will invest approximately USD 8 million as consideration for shares and injection of working capital. The amount includes the issue of 200,000 shares by Siem Offshore to the past shareholders of FOS.
FOS was formed in 2003 and has served the worldwide offshore oil and gas industry as well as the conventional energy market, with a specific geographical focus on the Middle East, the Eastern Mediterranean Sea and India. FOS has successfully completed more than 20 installation and repair projects of submarine cables. FOS employs approximately 50 people, including a project engineering and installation team. The management team of FOS has more than 20 years experience in the submarine cable installation market.
The main initial asset for the installation of submarine cables will be the vessel Siem Carrier, which was converted into a state-of-the-art DP2 cable installation vessel in 2007.
The market outlook for submarine cable installations in the offshore oil and gas sector is expected to grow in the coming years. In addition, the turnkey installation, repair and maintenance market for submarine power cables in the offshore renewable energy sector is expected to grow.