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LEEVAC Adds Two HOSMAX 310 MPSVs

LEEVAC Shipyards Jennings LLC, of Jennings, LA, a subsidiary of LEEVAC Shipyards, LLC has signed contracts with Hornbeck Offshore Services, LLC, an affiliate of Hornbeck Offshore Services, Inc. of Covington, LA for the construction of two STX Marine SV 310 Multi-Purpose Supply Vessels; 302’ x 76’ x 26’, 12,070 BHP diesel electric powered MPSV’s.

These will be the twenty-third and twenty-fourth vessels to be built by LEEVAC for Hornbeck” says Christian Vaccari, President and CEO of LEEVAC.

The SV 310 is a very complex vessel design with unique characteristics integrated into the design by Hornbeck Offshore to meet a number of subsea inspection, repair and maintenance (IMR) support and heavy lift requirements. The vessels will be outfitted with a 250 ton crane provided by Cargotech, and will be powered by four (4) Caterpillar Model 3516C Tier 3 IMO II Marine variable speed diesel propulsion generator sets rated at 2250 kw each. The propulsion drives and thrusters are being provided by Schottel.

Hornbeck Offshore is pleased to once again be building at LEEVAC” stated Todd Hornbeck, President and CEO of Hornbeck Offshore. ”The team at LEEVAC has delivered the majority of the new vessels that we have constructed since 1997, and we are confident that when delivered, our HOSMAX 310 MPSV’s will continue the string of additions to the HOS fleet from the LEEVAC yard that have historically enhanced our ability to deliver reliable service to our customers, and solid returns to our shareholders.”

Christian Vaccari, President and CEO of LEEVAC went on to say “Exceeding our customer’s expectations by building quality vessels on time and on budget while maintaining an safe work environment is how we preserve long-term relationships with our customers. I am very pleased to see Hornbeck expand their building program with us. This contract will bring our employment count to over 600 jobs in Southwest Louisiana and extend our backlog into early 2016. LEEVAC is currently building two Z-Tech 2400 Class Escort Tugs for G & H Towing Company, one MMC 879 PSV, two LDS 300 DE PSV’s for Tidewater Marine, and two LDS 270 DE PSV’s for Aries Marine.”

GE Power Conversion is the vendor for the integrated electrical system, power management, vessel control, DP-2 systems, machinery alarms, power and propulsion systems. Marine Interior Systems has been selected for the joiner work and Marine Aluminum will be providing the helideck system rated for a Sikorsky S-92 helicopter. The vessel will be built to ABS, USGC and SOLAS classifications. Additionally, will be ABS Classed with the XA1 Offshore Support Vessel (FFV-1) notation for off ship fire-fighting capabilities and SPS (Special Purpose Ship).

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Hornbeck Orders MacGregor AHC Subsea Cranes for Its MPS Vessel

Cargotec’s MacGregor has received EUR 37 million order from Hornbeck Offshore Services Inc. to deliver four 250-tonne active heave-compensated (AHC) subsea cranes for four multi-purpose supply vessels (MPSV). The cranes will be delivered between fourth quarter 2014 and third quarter 2015. The order is booked in the second quarter 2013 order intake.

“MPSVs are specialized vessels that are principally used to support complex deepwater subsea construction, installation, maintenance, repair and other sophisticated operations,” says Frode Grøvan, Sales and Marketing Director for MacGregor Advanced Load Handling. “We are pleased that Hornbeck Offshore opted MacGregor’s advanced 250-tonne AHC subsea cranes with operational capability at depths of 3700m suitable for ultra-deepwater operations.”

Cargotec, May 14, 2013

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USA: Hornbeck Orders Additional Two OSVs from Eastern Shipbuilding

Two Offshore Support Vessels (OSVs) of 310 Class, have been ordered by Hornbeck Offshore Services (HOS) from Eastern Shipbuilding Group, Inc. seated in Panama City, FL, Marinelog writes.

The vessels will be DP-2 classed and incorporate the STX Marine SV 310 design.

With this order Eastern Shipbuilding Group now has 10 vessels under contract with HOS.

Hornbeck Offshore Services, one of the leading providers of Support Vessels for offshore oil and gas industry, primarily in the U.S. Gulf of Mexico, recently signed as shipbuilding contract ordering six OSVs from Bollinger Shipyard.

HOS announced construction of two additional OSVs from 320 Class, thus exercising an option for extended order from a previously signed contract, assigned to VT Halter Marine Inc.

World Maritime News – USA: Hornbeck Orders Additional Two OSVs from Eastern Shipbuilding.

 

Hornbeck Expands OSV Newbuild Program (USA)

Hornbeck Offshore Services, Inc. announced today that it has expanded its OSV Newbuild Program #5 and has commenced a new 200 Class OSV Retrofit Program, among other recent developments.

Expansion of OSV Newbuild Program #5:

The Company has exercised the first four of its 48 options to build additional HOSMAX vessels at an aggregate incremental cost of approximately $180 million, excluding construction period interest, for vessel deliveries in the fourth quarter of 2014 and first quarter of 2015. These four new vessels will expand the Company’s fifth OSV newbuild program, which was announced in November 2011, from 16 vessels to a total of 20 U.S.-flagged HOSMAX class DP-2 new generation offshore supply vessels (“OSVs”) for its Upstream business segment.

These 20 vessels are being built at two shipyards in the United States, which qualifies them for coastwise trade in the U.S. Gulf of Mexico (“GoM”) under the Jones Act; however, the Company expects them to service the anticipated increase in deepwater and ultra-deepwater drilling activity in all three of the Company’s core geographic markets of the GoM, Brazil and Mexico. The HOSMAX class DP-2 vessel designs contemplated by this newbuild program feature three different size vessels (300, 310 and 320 feet in length) each with cargo-carrying capacities ranging from 5,650 to 6,200 deadweight tons and more than 20,000 barrels of liquid mud. The Company considers the option vessel pricing to compare favorably with all other recently announced newbuild programs for vessels of similar size and specifications.

In connection with exercising the first four shipyard options under this high-spec OSV newbuild program, the Company was able to extend the exercise dates for its 44 remaining options by approximately 60 days each without changing the favorable pricing and original delivery dates. Accordingly, the Company’s decision with respect to the exercise of the next option at each of the two shipyards is now not due until February 1, 2013 and February 19, 2013, respectively. These exercise date extensions afford the Company more time to assess market conditions before determining whether and to what extent to exercise additional options. In addition to the 20 newbuild vessels already committed that are scheduled to be placed in service on various dates between the second quarter of 2013 and the first quarter of 2015, the delivery dates for the remaining 44 vessels, if such options are exercised, will be approximately 24 to 26 months following the date of each respective option exercise, with the last potential newbuild vessel under this program (the 48th optional and 64th overall) to be delivered in January 2018. The Company currently intends to exercise all of its remaining 44 options to build additional HOSMAX class vessels should future market conditions, the pace of permitting in the GoM and its company-wide fleet complement continue to warrant their construction, providing the Company a very attractive, strategic five-year organic growth opportunity.

The Company expects the aggregate cost of the first 20 vessels committed under this potential 64-vessel construction program, including the four option vessels announced today, to be approximately $900 million, excluding construction period interest. At June 30, 2012, the Company had a cash balance of approximately $392 million and added net cash proceeds of approximately $266 million to the balance sheet from its 1.500% convertible notes offering, which closed on August 13, 2012. Together with cash on-hand and available capacity under its currently undrawn $300 million revolving credit facility, and based on the key assumptions outlined in the Company’s August 3, 2012 earnings release, the Company expects to generate sufficient cash flow from operations to cover all of its growth capital expenditures for the first 20 HOSMAX vessels under construction, all of the capital costs related to its new six-vessel 200 class OSV retrofit program discussed below, the planned retirement of its 1.625% convertible notes in November 2013, and all of its annually recurring cash debt service, maintenance capital expenditures and cash income taxes for the remainder of fiscal 2012 and for the full duration of the currently committed 20-vessel HOSMAX newbuild program.

In summary, the Company’s fifth OSV newbuild program now consists of vessel construction contracts with two domestic shipyards to build four HOSMAX 300 class OSVs, six HOSMAX 310 class OSVs (up two from the previously announced four), and ten HOSMAX 320 class OSVs (up two from the previously announced eight).

Based on the above schedule of projected vessel in-service dates, the Company expects to own and operate 51, 56, 69 and 71 new generation OSVs as of December 31, 2012, 2013, 2014 and 2015, respectively. These vessel additions result in a projected average new generation OSV fleet complement of 51.0, 52.2, 63.0 and 70.9 vessels for the fiscal years 2012, 2013, 2014 and 2015, respectively. The aggregate cost of the Company’s fifth OSV newbuild program, excluding construction period interest, is expected as noted above to be approximately $900.0 million, of which $242.2 million, $429.8 million, $178.5 million and $6.9 million is expected to be incurred in 2012, 2013, 2014 and 2015, respectively. From the inception of this program through June 30, 2012, the Company had incurred $120.4 million, or 13.4%, of total expected project costs, including $41.0 million that was spent during the second quarter of 2012.

Commencement of 200 Class OSV Retrofit Program:

In addition to the expansion of its HOSMAX newbuild program, the Company has decided to move forward on a new retrofit program that will upgrade and stretch six of its 200 class DP-1 new generation OSVs converting them into 240 class DP-2 OSVs. The vessels the Company has committed to this program are six of its ten Super 200 class DP-1 vessels, four of which are the vessels that recently completed two-year charters with Petrobras in Brazil. These new generation OSVs were built in 1999 and 2000 and were acquired by the Company in 2007. Due to their 56-foot wide beams, the planned 40-foot mid-body extensions and DP-upgrades are expected to add approximately 600 tons to the vessels’ 2,250 tons of current deadweight capacity and roughly double the vessels’ current liquid-mud capacity to approximately 8,000 barrels. The Company is now in the process of finalizing negotiations with a domestic shipyard it has selected and expects to enter into a definitive contract in the very near future. Based on preliminary estimates, the Company expects the yard to complete two of the six vessels in each of the following redelivery months: May 2013, August 2013 and December 2013, respectively.

The project costs for these discretionary vessel modifications are expected to be approximately $50.0 million, in the aggregate, and the Company expects to incur approximately 762 vessel-days of aggregate commercial downtime for the six vessels (127 vessel-days each), as follows:

Other than a modest amount of cash outlays and commercial downtime in the third and fourth quarters of 2012, this retrofit program is not expected to materially impact the Company’s financial results for fiscal 2012. However, upon completion of this program in 2013, the Company expects the newly retrofitted 240 class DP-2 vessels to command higher dayrates, higher margins and higher returns-on-invested-capital than they would have as 200 class DP-1 vessels, such that the Company anticipates a cash-on-cash pay-back of its additional capital investment within approximately 2.5 years. Given the market’s preference for high-spec DP-2 vessels and the Company’s relatively low pro forma net book value for its retrofitted vessels compared to the construction costs of comparable newbuilds in the market today, the Company should be even more competitive in meeting customers’ demand for high-spec vessels at very attractive relative economics.

Prospectively, the Company will report the projected cash outlays for its 200 Class OSV Retrofit Program under the caption “Maintenance and Other Capital Expenditures,” rather than “Growth Capital Expenditures.” Accordingly, the following figures will update and supersede the forward-looking guidance the Company provided in its earnings release on August 3, 2012. The Company now expects maintenance capital expenditures and other capital expenditures to be approximately $58.2 million and $17.4 million, respectively, for the full-year 2012. The Company now expects maintenance capital expenditures and other capital expenditures to be approximately $39.2 million and $50.0 million, respectively, for fiscal 2013, with the cash outlays relating to the 200 Class OSV Retrofit Program included in the latter category. For fiscal 2014, the Company expects that its annually recurring maintenance capital expenditure and other capital expenditure budget, in the aggregate, for its company-wide fleet of vessels will range between $45.0 million and $55.0 million.

GAAP Treatment of Recently Issued 1.500% Convertible Notes:

In accordance with ASC 470-20, convertible debt that may be wholly or partially settled in cash is required to be separated into a liability and an equity component, such that interest expense reflects the issuer’s nonconvertible debt interest rate. Upon issuance, a non-cash original issue discount (“OID”) is recognized as a decrease in debt and an increase in equity. The debt component accretes up to the principal amount over the expected term of the debt. ASC 470-20 does not affect the actual aggregate principal amount of the convertible notes that the Company is required to repay, nor does it impact the actual amount of cash coupon that the Company is required to pay with respect to the convertible notes.

On August 13, 2012, the Company closed on the issuance of $300 million in aggregate principal amount of 1.500% convertible senior notes due 2019 (the “1.500% convertible notes”). The Company’s estimated nonconvertible debt interest rate on such date was 5.75%, based on indicative market quotes for the Company’s publicly traded 5.875% senior notes due 2020. Therefore, as of the date of issuance of the 1.500% convertible notes and in accordance with the GAAP treatment described above, the Company recognized $73.3 million of non-cash OID, which decreased the book carrying value of the 1.500% convertible notes and increased the Company’s additional paid-in-capital equity account by a like amount. Such non-cash OID will be amortized through interest expense over the seven-year life of the 1.500% convertible notes. Accordingly, while the incremental annual run-rate of cash interest expense for the 1.500% convertible notes will be a constant $4.5 million, the gross book interest expense for such notes for financial reporting purposes will vary from year-to-year. The initial annual run-rate of GAAP interest expense for such notes is expected to be approximately $13.3 million. However, GAAP interest expense is expected to fluctuate based on the levels of capitalized construction period interest.

Due to changes in the timing of certain cash interest payment dates associated with the Company’s recent retirement of its 6.125% senior notes in March and April 2012, the issuance of its 5.875% senior notes in March 2012, and the issuance of its 1.500% convertible notes in August 2012, aggregate annual cash debt service for the full fiscal-year 2012 is expected to be $42.2 million. However, inclusive of the planned redemption of its 1.625% convertible notes in November 2013, the Company expects to incur aggregate annual cash debt service for the full fiscal-year 2013 in the amount of $52.3 million, excluding any cash interest expense related to potential revolver draws. Commencing with fiscal 2014 and beyond, the Company’s aggregate annual run-rate of cash debt service should revert to $48.0 million, excluding any cash interest expense related to potential revolver draws.

Hurricane Isaac Update:

The Company experienced no damage to any of its vessels as a result of Hurricane Isaac, including those currently under construction or in drydock at various GoM shipyards, although such yards may claim force majeure delays that may have occurred as a result of the storm. In addition, Hurricane Isaac did not result in customer cancellations of any pre-storm spot or term vessel charters. The Company’s new generation Upstream fleet continues to operate in-line with its pre-storm utilization guidance reported on August 3, 2012, which remains subject to, and primarily driven by, the pace of permitting in the GoM. No physical damage related to Hurricane Isaac occurred to the Company’s corporate headquarters in Covington, LA, which remains fully operational with all electrical power, Internet connectivity and telecommunications service. In addition, HOS Port, the Company’s logistics shore-base in Port Fourchon, LA, is fully operational.

ATP Reorganization Proceeding:

ATP Oil and Gas, Inc., a customer of the Company, initiated a reorganization proceeding under Chapter 11 of the United States Bankruptcy Code on August 17, 2012. As of the date of the bankruptcy filing, ATP was indebted to the Company in the amount of approximately $4.8 million. While the Company believes that its claims are secured by liens arising under law, it is too early in the proceeding to assess ATP’s plans and ability to repay the Company. ATP has indicated its plan is to reorganize and to that end has received post-petition financing. The Company will pursue all rights in the bankruptcy case in order to maximize its recovery.

Hornbeck Offshore Services, Inc. is a leading provider of technologically advanced, new generation offshore supply vessels primarily in the U.S. Gulf of Mexico and Latin America, and is a leading short-haul transporter of petroleum products through its coastwise fleet of ocean-going tugs and tank barges primarily in the northeastern U.S. and the U.S. Gulf of Mexico. Hornbeck Offshore currently owns a fleet of 80 vessels primarily serving the energy industry.

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GL to Provide DP Services to Hornbeck Offshore (USA)

GL to Provide DP Services to Hornbeck Offshore (USA)| Offshore Energy Today

USA’s Hornbeck Offshore Services (HOS) has selected GL Noble Denton to undertake dynamic positioning (DP) assurance services across the company’s technologically advanced fleet of vessels.

GL Noble Denton’s team of DP engineers will support HOS to further develop internal dynamic positioning operating standards across 55 DP-capable offshore service vessels and a fleet of new-build platform services vessels that HOS has announced will be delivered in the second quarter of 2013.

Dynamic Positioning (DP) is a computer-controlled system that automatically maintains a vessel’s position and heading. GL Noble Denton offers DP testing and assurance services to operators across the global offshore industry ensuring the safety, upkeep and proper function of this state-of-the-art technology and the application of the procedures necessary to support safe DP operations.

In addition to developing a robust set of DP operating standards in conjunction with HOS, GL Noble Denton’s Houston-based marine warranty engineers and assurance team will deliver a major package of failure mode and effects analyses (FMEA), proving trials, annual DP trials, and capability analyses to the Hornbeck fleet.

Carl Annessa, Hornbeck Offshore Services’ Chief Operating Officer, said: “Hornbeck Offshore Services has a clear vision to remain at the forefront of the dynamic positioning quality assurance sector. GL Noble Denton is widely regarded as a thought leader in this sector, and we are pleased to partner with them to maintain our position as the premier operator of DP-equipped offshore petroleum support and service vessels.”

Craig Reid, GL Noble Denton’s Dynamic Positioning Services Manager for the Americas, added: “Hornbeck Offshore Services has taken a proactive approach to ensuring its fleet sets the benchmark for operational best practice in dynamic positioning. We are delighted that GL Noble Denton has been selected to help them achieve this.

“By sharing our expertise in this rapidly-developing sector, we will help to ensure that the DP systems onboard the company’s fleet of vessels adhere to industry-leading standards in safety, integrity and performance.”

GL to Provide DP Services to Hornbeck Offshore (USA)| Offshore Energy Today.

USA: Hornbeck Plans to Build Sixteen New Generation Offshore Supply Vessels

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Hornbeck Offshore ServicesBoard of Directors has approved a new vessel construction program for its wholly-owned subsidiary, Hornbeck Offshore Services, LLC. The Company plans to build sixteen U.S.-flagged 300 class DP-2 new generation offshore supply vessels (OSV) for its Upstream business segment with options to build an additional 16 substantially similar vessels should future market conditions warrant their construction.

This will be the Company’s eighth vessel newbuild program since its inception in 1997, and its fifth newbuild program involving state-of-the-art, technologically advanced new generation OSVs.

The Company expects the aggregate cost of the first 16 vessels under this program to be approximately $720 million, excluding construction period interest. Construction costs will be funded with cash on-hand, projected free cash flow from operations, other external financing and, if necessary, available capacity under the Company’s currently undrawn and recently expanded $300 million revolving credit facility.

Delivery of the first 16 vessels to be constructed under this program is expected to occur on various dates during 2013 and 2014, which should coincide with the delivery of approximately 145 incremental floaters and high-specification jack-up drilling rigs, currently under construction worldwide, during the same timeframe. Upon completion of the first phase of this OSV newbuild program at the end of 2014, the Company projects that the weighted-average age, based on deadweight tons, of its pro forma 67-vessel fleet of new generation OSVs will be seven years. The Company is now in the process of finalizing negotiations with selected domestic shipyards and expects to enter into definitive contracts in the near future.

These new 300 class OSVs are particularly well-suited for the increased demands of deepwater and ultra-deepwater customers for high-specification vessels, while maintaining an overall size that maximizes efficiency from an operating cost perspective. These vessels will be built in the United States, which qualifies them for coastwise trade in the U.S. Gulf of Mexico, or the GoM, under the Jones Act; however, the Company expects them to service the anticipated increase in deepwater and ultra-deepwater drilling activity in all three of the Company’s core geographic markets of the GoM, Brazil and Mexico. The 300 class DP-2 vessel design contemplated by this newbuild program features 6,000 deadweight tons and 20,000 barrels of liquid mud carrying capacity. The length and high load capacity of these OSVs also make them ideal candidates for conversion into deepwater construction service and for subsea inspection, repair and maintenance work. The Company expects these new 300 class vessels to offer double the deadweight tons and more than double the liquid mud capacity of its 240 class OSVs, which should allow the 300 class OSVs to command higher dayrates commensurate with their increased size and capabilities.

Hornbeck Offshore Services, Inc. is a leading provider of technologically advanced, new generation offshore supply vessels primarily in the U.S. Gulf of Mexico and Latin America, and is a leading short-haul transporter of petroleum products through its coastwise fleet of ocean-going tugs and tank barges primarily in the northeastern U.S. and the U.S. Gulf of Mexico. Hornbeck Offshore currently owns a fleet of 80 vessels primarily serving the energy industry.

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The Run Continues In Hornbeck Offshore

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by Scott Rubin
Benzinga Staff Writer

Money managers who are looking for leveraged exposure to a recovery in the Gulf of Mexico deepwater drilling space have been reaching for shares of small-cap name Hornbeck Offshore Services (NYSE: HOS) in recent months. The stock hit a new 52-week high on Friday of $35.00 and continues to run after releasing a very bullish earnings report on Thursday morning. Over the last month, HOS shares have surged around 45% and are up better than 66% in 2011 compared to a loss for the S&P 500 of 1%.

The company is a play on the rebound in deepwater drilling services in the U.S. Gulf of Mexico. Hornbeck Offshore, through its subsidiaries, operates offshore supply vessels (OSVs), multi-purpose support vessels (MPSVs) and a shore-base facility to provide logistics support and specialty services to the offshore oil and gas exploration and production industry.

Hornbeck also operates ocean-going tugs and tank barges which provide transportation of petroleum products. In addition to the U.S. Gulf of Mexico, Hornbeck has operations in the northeastern United States, Puerto Rico, Latin American and the Middle East. The company currently has a market cap of $937 million and employs around 1,000 people. Hornbeck Offshore is located in Covington, Louisiana. In the fiscal third quarter, HOS reported a surprise profit of $0.10 per share versus Street consensus estimates of a $0.23 per share loss.

Revenues also beat Wall Street expectations. The company posted revenue of $105.8 million compared to analysts’ consensus estimates of $96.1 million. Hornbeck is currently capitalizing on improved fleet utilization and higher dayrates for its vessels in the wake of a rebound in deepwater drilling activity in the Gulf of Mexico, which had been severely scaled back after the Macondo oil spill in April 2010.

According to analysts at Jefferies (NYSE: JEF [FREE Stock Trend Analysis]), “the recovery appears underway with deepwater vessel supply/demand tightening and leading-edge rates for deepwater vessels heading back to 2008 peak/pre-Macondo levels.” The firm, however, currently has a Hold rating on the stock, believing that “the recovery is largely priced in following the approx. 70% increase” in HOS shares over the last couple of months. While an increase in vessel rates is expected to continue in 2012, higher costs could potentially offset some of the upside for HOS as management raised its cost guidance for Q4 during this week’s earnings call.

While maintaining their Hold rating on HOS, Jefferies did substantially boost their price target on the name from $27.00 to $38.00. The mean Wall Street price target for HOS is $33.00 with a high target of $39.00. Hornbeck trades at a forward P/E of 24.55 and at 7.9x Jefferies’ 2012 EV/EBITDA estimates. Book value per share is $30.81. Hornbeck trades at roughly a 14% EV/EBITDA premium to competitors GulfMark (NYSE: GLF) and Tidewater (NYSE: TDW).

Potential forward looking risks to HOS’ share price include Gulf of Mexico permitting delays, oil and gas prices and regulatory uncertainty in the GoM which still persists in the wake of the Macondo spill. Shares have traded in a range between $19.80 and $35.00 in 2011. The stock is trading above both its 50 and 200 day moving averages of $28.81, and $26.62, respectively. Given the sharp run up in the share price, a pullback to the 50-day would be an ideal entrance point for bullish investors.

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HOS Centerline gives new meaning to multi-purpose vessel

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Blue Dolphin and HOS Centerline

The Blue Dolphin and HOS Centerline are used to pump mud to the Q4000 for the “Static Kill”, on-site MC 252 in the Gulf of Mexico, 3 August 2010.

Published: Mar 1, 2010

When Hornbeck Offshore Services Inc. introduced its 370-ft (113-m) HOS Centerline last year, it not only gave the Gulf of Mexico the world’s largest support vessel, but also one designed to transport everything from drilling fluid to crude oil. With a more than 8,000-dwt (7,258-metric ton) capacity, the Centerline brings multi-purpose support vessels to an entirely new dimension. Not only is the triple-certified newbuild designed to transport supplies for drilling and production, it can be “flipped over” in two to three days and work as a crude oil tanker, says Todd M. Hornbeck, chairman, president and CEO of the Covington, Louisiana-based company that also operates the HOS Port in Port Fourchon. What’s more, Hornbeck says the newest entry to the company’s global fleet also is fully certified to haul hazardous wastes.

“It’s the only time in the world this has been done,” he says of his new support vessel/tanker combination. A sister-vessel, the HOS Strongline, was expected to join the Hornbeck fleet in February and is destined to receive the same regulatory pedigree.

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The HOS Centerline is not only the world’s largest multi-purpose supply vessel, it also is the most versatile, says Hornbeck.

Hornbeck says the uniquely engineered vessels can transport more than 30,000 bbl of liquid drilling mud and fuel. The vessels’ 400 kW of available propulsion, power, and DP-2 capability allows it to work safely in sea and weather conditions that keep smaller vessels in port. The design of the vessel reduces fuel consumption in half, he adds.

“These vessels really provide a wider weather window, and they are equipped and designed to safely transfer cargo in high seas,” he says. “They really give us a cradle-to-grave approach to serving our customers, from spud to production.”

The HOS 370-class cargo deck is 240 ft x 58 ft (1,287 sq m) and is complemented by an additional 30 ft x 58 ft (9 x 18 m) of covered deck space, which is unprecedented. The large deck and living quarters for 78 crew members also makes the Centerline functional for subsea construction.

While the commissioning of the Centerline, gives Hornbeck 85 vessels working worldwide, he says the company will continue to focus on the Gulf of Mexico.

“Any place we look at first has to pass the smell test and convince us it is a better place to be than in the Gulf of Mexico.”

Original Article

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