Contracts

Published: July 24, 2018

Reach Subsea’s Houston office has been awarded several contracts by oil majors in the region, comprising some 100 days of work going forward.

 

The Houston office was opened earlier this year, in order to target an expansion of our services into an important subsea hub. So far, Reach Subsea has executed a couple of projects in the region utilising subsea spreads hired-in on a project by project basis. However, we are gaining traction with our marketing efforts at a higher pace than expected with two frame agreements now signed with oil majors, and subsequent contract awards that have followed. Thus, the need to control one or more subsea spreads permanently dedicated to markets served by our Houston office has emerged more quickly than expected.

 

With this backdrop, Reach Subsea has entered into a charter agreement with Havila Shipping for use of the subsea vessel Havila Harmony for 3 years, with an option to extend for 1+1 years. The commercial terms of the charter agreement are confidential between the parties. The vessel will be mobilised with one ROV onboard, which Reach Subsea will lease initially. Thus, investments associated with this expansionary move are limited at the outset. Reach Subsea will mobilise the vessel immediately and use the vessel on own projects originated from our Houston office.

 

With this latest addition to our fleet, Reach currently markets 8 subsea spreads alone and together with our partner MMT, contributing to our strategy of carefully expanding our platform into a market recovery.

 

Jostein Alendal, CEO of Reach says: “We are pleased with how quickly we have been able to gain traction with our new Houston office, and to already be able to offer another quality subsea spread to our clients. Havila Harmony is a vessel that is very well suited for the kind of projects we currently have, as well as the nature of the project opportunities we see in the market. As we have repeatedly said, an important part of our operational strategy is to co-operate with shipowners renowned for high quality performance, which we have experienced first hand in our first year of operation with the Havila Subsea spread. We look forward to continue the good cooperation with Havila Shipping in the years to come.”

 

For further information, please contact:

Jostein Alendal, CEO

Birgitte Wendelbo Johansen, CFO