Davie to build two well intervention vessels

Davie Yards in Canada has entered into a Memorandum of Understanding (MoU) with an unspecified Norwegian customer for construction of two 130 metre well intervention vessels. The total contract price for the two ships is estimated to be approximately C$380 million ($393 million) subject to final contract negotiations.

The vessels are to be delivered in the second quarter of 2010 and second quarter of 2011.

Said the yard: ???The well intervention vessels represent a natural progress from Davie’s current order book of three offshore construction vessels and two offshore accommodation vessels, and strengthens Davie???s position as a shipbuilder of advanced offshore vessels.?? The MoU will become effective subject to the customer securing satisfactory financing for the two vessels.

Including this order, Davie will have an order book of approximately $1 billion for seven ships. In addition the current customers have options to order an additional six ships at a total estimated purchase price in the range of $800 million.