TML project delayed

Delivery of the Twin Marine Lifter (TML) heavy lift vessels under construction for SeaMetric International at China Petroleum Liaohe Equipment Company (CPLEC) Offshore Engineering Company shipyard in Panjin, China, will be delayed by three to six months.

The shipyard itself has been under construction, and delays in the yard development schedule have resulted in the delivery delay. Originally, an August 2009 delivery date was anticipated. During high level meetings in China in early November 2008, SeaMetric received confirmation from both the shipyard?s top management and the President of PetroChina Liaohe Oilfield Company, the yard?s owner, that construction of the TML vessels is a high priority project. A promise was given to deliver the vessels according to a newly developed recovery plan.

The CPLEC shipyard has recently strengthened its organization by recruiting a number of experienced inspectors and managers. At present, there are around 1,000 workers at the yard. The cutting of steel, the welding of panels and the fabrication of blocks are all ongoing processes.

The shipyard has indicated that the vessels will be delivered without any cost increases for the vessel construction. In addition, SeaMetric has not identified any cost overruns for deliveries of the various types of equipment to the vessels. However, some increases in management and financing costs could be expected as a direct consequence of a delayed delivery.

SeaMetric?s TML System consists of the two semisubmersible heavy transport vessels, with DP3 class dynamic positioning systems, living quarters and helidecks in addition to a number of lifting arms which are placed across the vessels. With eight lifting arms in place, four on each vessel, the TML System will be able to install and remove platform topsides and jackets weighing up to 20,000 tonnes. Such marine heavy lifting capacity is not currently available in the world markets.

SeaMetric has received bids from a number of contractors for the construction of the TML lifting arm systems. Construction of the lifting arm systems will not start until the necessary financing is in place. Financing would most likely be triggered by SeaMetric winning a contract from an end user of the TML System.