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Contract Awards: Helix provides deepwater contracting update

Posted on 06.04.2007 - 07:00 EDT in CONTRACT AWARDS by Rons_ROV_Links

Helix provides deepwater contracting updateHelix Energy Solutions (NYSE: HLX) announced today that it has signed a letter of intent with Murphy Exploration & Production Company for the installation of the Thunder Hawk export pipelines and flowlines. Helix's latest deepwater asset, the Caesar, will perform this work supported by Helix's subsidiary, Canyon Offshore. The work will take place in the Mississippi Canyon area in the Gulf of Mexico in a water depth of 6,100 ft. and consists of the installation of two 12" export pipelines and two 8" insulated flowlines, all with accompanying steel catenary risers and pipeline end terminations. The installation is scheduled to take place in the summer of 2008.

The Caesar also is scheduled to install the flowline for Helix's Noonan discovery in the first half of 2008. This flowline will be installed in a water depth of almost 3,000 ft in the Garden Bank area of the Gulf of Mexico.

Helix has appointed Roy Sijthoff as the head of its Deepwater Contracting business unit. This business unit owns two deepwater reel pipe lay vessels, the Express and the Intrepid. The S-Lay vessel Caesar will join the Helix fleet later this year. Prior to joining Helix in September 2005, Roy worked for Allseas USA as managing director for 10 years and before that for Smit International and Rockwater.

CaesarThe Helix deepwater reel lay vessel, the Intrepid, recently successfully completed the installation of Shell Offshore, Inc.'s Crosby Pastel Pink Pipe- In-Pipe (PIP) flowline system. The project was the first PIP system that Helix has constructed and installed. The project involved some innovative welding applications as well as a simplified bulkhead installation methodology. Shell contracted with Helix for the construction and installation of the 4" x 8" PIP which included the installation of a pipeline-end-termination (PLET) on each end. The flowline and PLETS were installed from an existing manifold in Mississippi Canyon block 899 to a satellite well in approximately 4,000 feet of water in Mississippi Canyon block 898. The pipe was spooled onto the Helix reel lay vessel Intrepid in late December 2006 and the offshore installation was completed successfully by mid January 2007.

Bart Heijermans, Executive Vice President and Chief Operating Officer of Helix commented, "The execution of the LOI for the Thunder Hawk contract constitutes a major milestone for the Caesar and our company. We are very pleased with the level of interest in the Caesar and are confident that this asset will become a major contributor to our company and the industry. The appointment of Roy Sijthoff as head of our Deepwater Contracting business provides this fast growing global business with the seasoned leadership to achieve its potential. The successful installation of Pastel Pink PIP demonstrates the technical and execution skills of our employees and assets, and we appreciate the opportunity we received from Shell to demonstrate our capabilities on this project. We are continuing the transformation into one of the most trusted service providers in the deepwater trend for services such as deepwater construction and trenching, rig-less intervention, floating production units and later this year drilling."

Helix Energy Solutions, headquartered in Houston, Texas, is an international offshore energy company that provides development solutions and other key life of field services to the open energy market as well as to our own oil and gas business unit. That business unit is a prospect generation, exploration, development and production entity. Employing our own key services and methodologies, we seek to lower finding and development costs, relative to industry norms.

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