Helix, SembMarine in second delay for ‘Q7000’ delivery

Helix Energy and Sembcorp Marine’s subsidiary Jurong Shipyard have agreed to postpone the delivery of Helix’s newbuild semi-submersible vessel, originally scheduled for delivery in mid-2016. 

The two companies entered into a second amendment of a construction contract, dated September 2013, for the construction of Helix’s Q7000, which is a newbuild semi-submersible well intervention vessel.

The second amendment delays scheduled delivery of the Q7000 from July 30, 2017 to December 31, 2017. In addition, Helix Q7000 has options to extend the scheduled delivery until as late as December 30, 2018.

According to Helix’s SEC filing, the company paid 20% of the contract price upon the execution of the contract in September 2013.

Prior to the second amendment, the remaining 80% of the contract price was to be paid in two installments, with 20% on June 25, 2016, and 60% upon delivery of the vessel, which was scheduled for July 2017. According to the second amendment, the remaining 80% will now be paid in three installments, with 20% on June 25, 2016, 20% upon issuance of the completion certificate, which is to be issued on or before December 31, 2017, and 40% upon delivery of the vessel.

In addition, Helix will pay $28,438 per day for incremental reimbursements to Jurong Shipyard for the period beginning the day after the earlier of the issuance of the completion certificate and December 31, 2017, and ending upon delivery of the vessel and Jurong Shipyard’s reasonable costs arising out of or in relation to the deferment of the delivery that are directly attributable to Jurong Shipyard’s maintenance or construction of the vessel.

The vessel was jointly developed by Sembcorp Marine Technology Pte Ltd, a Research & Development subsidiary of Sembcorp Marine, and Helix. It is a purpose-designed platform with capabilities to perform tasks, including conventional and extended top hole drilling, subsea construction, decommissioning well intervention, coiled tubing operations and twin ROV deployment.

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