Stolt Offshore Sells NAMEX Operation to Focus on SURF Segment

Stolt Offshore has agreed to sell the Inspection, Maintenance and Repair (IMR) and Conventional assets that form part of its North America and Mexico (NAMEX) business to Cal Dive International, Inc. for $125 million in cash.

The disposals enable the Company to focus on its core expertise of deepwater Subsea Umbilicals, Risers and Flowlines (SURF) in this region. The sale is subject to regulatory approval.

The sale includes the seven ships(1) that work in the IMR segment; the Seaway Kestrel, a diving support and reel pipelay ship; the DLB 801 pipelay barge; and the shore support bases at the Port of Iberia and at Fourchon in Louisiana.

Stolt Offshore has made commercial arrangements to charter the Seaway Kestrel and the DLB 801 back from Cal Dive to complete the ongoing Trinidad pipelay projects in 2005.

Stolt Offshore will maintain and further develop a strong permanent presence in Houston with a team of project management and engineering staff focused both on regional SURF activities and on Group projects. The Company expects to grow this experienced team to undertake international SURF projects. Certain employees who have until now worked with the IMR and Conventional assets will have the opportunity to transfer to Cal Dive.

Tom Ehret, Chief Executive Officer, said "Over the last year, we have considered ways to refocus our NAMEX business on its most promising segment. The sale that we are announcing today provides the best option for us to concentrate on the developing Gulf of Mexico deepwater market for SURF, our core area of expertise. In addition, this move enables us to significantly increase the global human resource base which is dedicated to the increasing volume of SURF work in the market."

(1) IMR ships being sold are: Seaway Defender, American Constitution, American Star, American Triumph, American Victory, American Diver and American Liberty.

Find out more about  Stolt Offshore

Search for more Stolt Offshore News

Posted 12/04/05

Back