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.

Investors in SeaMetric’s bond issue visited the shipyard also in early November 2008. These investors will be able to confirm the status of the shipyard, the construction process and the commitments given by the yard and the yard’s owners.

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 TML vessels 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 (19,684 tons). 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.

SeaMetric has secured production slots for engines, generators and thrusters for four additional vessels, two further 140 meter (459 ft) long heavy transport vessels for a second TML System as well as two 180 meter (590 ft)  transport vessels. The potential orders for these further vessels would have to be executed through separate contracts.

The two TML vessels have a total remaining financing requirement of approximately US$85 million. One potential financing source would be loans from Eksportfinans, the Norwegian export credit agency. SeaMetric has received an offer of loans from Eksportfinans of up to NOK 352 million (US$50 million), covering Norwegian deliveries to the two vessels. The Eksportfinans financing is dependent on SeaMetric meeting certain financial obligations.

SeaMetric is evaluating a restructuring of the company whereby SeaMetric’s shipping assets (the shipbuilding contracts), would be transferred to 100 percent owned single purpose companies, making possible direct investment into the companies. SeaMetric officials note that the current financial market climate is extremely demanding, but they remain confident that the remaining financing for completion of the two TML vessels will be secured. SeaMetric is also confident that financing for the construction of the TML lifting arm system can be achieved on the back of a contract for the use of the TML System.

SeaMetric has generated considerable industry interest with the TML concept.

The TML concept involves two semisubmersible heavy transport vessels, with DP3 class dynamic positioning systems, living quarters and helidecks. Each vessel will be capable of carrying up to 25,000 dwt of cargo. When not used as part of SeaMetric’s TML System, the vessels may be used in the traditional heavy transport market and also in the markets for construction support, subsea construction and subsea intervention.

In September, SeaMetric entered into a global cooperation agreement with AMEC plc under which the companies will use their combined skills to provide offshore decommissioning services. In October, SeaMetric and AMEC issued a joint submission to the oil company BP for the Miller platform decommissioning. Contract award is scheduled for September 2009. In addition, preparation is ongoing for a joint submission with AMEC to Shell for the Brent D topsides removal.

SeaMetric is actively pursuing contracts for the TML System to be used in marine heavy lift projects worldwide. These activities are primarily directed towards the industrial and operational partners of the company’s two Memorandums of Intent (MoIs) and one Memorandum of Understanding (MoU), Mexican marine contractor Blue Marine Technology Group, CNOOC Offshore Oil Engineering Company (COOEC) in China and the British oil company Fairfield Energy Ltd. All three MoI/MoU partners have strategies in which the TML System will play a central role.

The MoI with Blue Marine concerns operations in Latin America. The shareholder’s agreement for a jointly-owned operating company for TML System operations in this region was signed in October 2008. Mexico’s state owned oil company Pemex has confirmed its acceptance of TML as a possible installation tool. Pemex has instigated a rebid for a tender for a living quarter platform installation in 2010 and SeaMetric is responding in cooperation with ICA Fluor or Swecomex. Other opportunities with Pemex for platform installations are being pursued.

China National Offshore Oil Corporation (CNOOC) has nominated SeaMetric’s TML System as its preferred heavy lift tool in its new 5-year strategic plan, and has demonstrated this by canceling the planned construction of a 16,000 tonnes (15,747 tons) crane vessel. CNOOC’s affiliate COOEC is currently conducting due diligence as preparation for signature of the shareholder’s agreement for a jointly-owned operating company for TML System operations in the North East Asia region. The establishment of this operating company in by the end of the year is on schedule. The joint SeaMetric/COOEC planning work for a major marine heavy lift project offshore China is still ongoing.

The MoU with Fairfield Energy concerns the use of the TML System in the decommissioning of Fairfield’s current and future platforms. The MoU also includes any future installation work for Fairfield. SeaMetric expects to sign Heads of Agreement for a contract with Fairfield before the end of the year. The final agreement is expected to be signed during 2009. The eventual contract date would be subject to Shell and DBERR’s approval of Fairfield’s abandonment plan (source: energycurrent.com).

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