Subsea 7 has signed a letter of intent with Royal IHC in the Netherlands for the construction of a new reel-lay vessel and associated pipe lay equipment.
The cost, excluding capitalised interest, is expected to be below US$300 million with an early 2020 delivery. According to Subsea 7, the firm contract with Royal IHC is expected to be awarded before the end of 2017, subject to certain conditions and final board approval.
When delivered, the vessel will be Subsea 7's highest specification reel-lay vessel, capable of installing complex rigid flowlines including pipe-in-pipe systems and electrical trace heating. This capability will address the market trend towards longer tie-back developments. The new vessel will replace Seven Navica, which is expected to be retired from reel-lay operations in due course.