Helix Well Ops’ new well intervention semi-submersible, the 35,000-ton Q5000, is en-route to the US Gulf of Mexico following its handover by the Jurong Shipyard in Singapore.
The company’s latest asset is due to stop off at Mauritius, Namibia and Curacao before eventually arriving during the summer.
Based upon the successful Q4000 design, the Q5000 is a much larger second generation intervention semi with enhanced capability for subsea intervention, construction and life of field services.
The company had been planning the new-build for a number of years prior to placing orders for not just one but two intervention semis . . . Q5000 in 2012 and Q7000 the following year, though there is talk of the latter being pushed back to 2017 because of deteriorating market conditions.
First steel for the Q5000 was cut in late 2012 at the Jurong Shipyard in Singapore and it emerged from the facility on time.
The unit will be capable of carrying out a wide variety of tasks, including subsea well intervention, field and well decommissioning, installation and recovery of subsea equipment, well testing and emergency well containment.
Though Q5000 is making an excellent start to its career with a five-year contract from BP, that work is not due to start until next year.
Meantime, Helix is hoping to pick up sufficient work to enable its latest intervention vessel and its crew to shake down before getting going on the BP work.
That contract is for a minimum 270 days each year and was due to start in Q3 this year. However, the parties recently agreed to push back start-up to April 1 next year.
The BP arrangement, which was signed in 2013, also includes a first right of refusal for additional days each year and an option to extend for two successive one-year terms.
Meanwhile, Helix is in discussions with various parties for in-fill work.
Q5000 is outfitted with a multipurpose tower capable of fulfilling all traditional derrick roles, plus a deepwater crane with lifting capacity to 360 tonnes and a work crane rated to 160 tonnes.
The vessel’s design includes a 68ft x 26ft moonpool and 23ft x 22ft mechanised fully opening rig floor door, a 7- 3/8 inch intervention riser system, two 10,000ft heavy-weather ROV systems and an overall deck load of 3,000 tonnes.
Open deck space is around 50% greater in area than for the Q4000, and its well intervention tower has a load capacity of 680 tonnes versus the 600-tonne tower on the Q4000.
The moonpool is also larger. Helix says this will allow the semi to keep its intervention riser system (IRS) in the water at well depth while moving aside to let drill pipe or other equipment be lowered to the same well for another task.
This ability to keep the IRS in the water while performing separate operations on the same location will save hours and enhance the vessel’s overall efficiency, the company says.
Turning briefly to the Q7000, this is also being built by Jurong with, as already indicated above, delivery scheduled for next year. Price tag is approaching $350million.
Q7000 will be able to perform tasks including conventional and extended top-hole drilling, subsea construction, decommissioning well intervention, coiled tubing operations and twin ROV deployment.
But will Helix’s strategy of using compact semi-submersibles for light intervention work pay off? Well, yes and no according to an April 22 commentary by analysts at Seeking Alpha.
They argue: “One of the prime long-term bull arguments for Helix is that its purpose-built offshore well intervention vessels offer meaningful benefits to E&P companies.
“These vessels are generally used for so-called ‘light’ intervention work, but they can do about one-third of the jobs that are otherwise done by repurposed drilling rigs.
“The key for Helix is that their vessels are more efficient (about 30% to 40% more so), which reduces the number of days that a vessel/rig is on hire for a job. Helix’s vessels are also able to mobilise faster and they’re cheaper.
“While it’s true that Helix’s vessels are cheaper on a straight-up comparison, the contracts that Helix has with companies like BP and Shell aren’t as stringent on the cancellation terms as the contracts between E&P companies and drillers.
“So with E&P companies committed to drilling rig contracts with steeper penalty clauses, but no particular desire to drill and complete new wells in today’s price environment, clients are cancelling on Helix and reallocating those contracted drilling rigs to do their intervention work.
“One of the larger risks for Helix is that this phenomenon stretches into the coming years. Helix management has been talking about more older drilling rigs going to salvage or long-term stacking, but BP pushed back the expected start date of its contract for the Q5000 by ‘at least’ 180 days and likely got a lower initial day-rate as well.
“Elsewhere, the company is discussing delaying the delivery of the Q7000 into 2017 and will likely take advantage of the lull in 2015 demand to do more dry-dock work (with Q4000, H534, and Seawell all scheduled for work already).”
Finally, it is only recently that the US group also took delivery of the Grand Canyon II from Norwegian ship owner Volstad Maritime and shipbuilder Kleven.
This offshore construction/ ROV/IRM vessel measures 126m overall, was designed by Skipsteknisk and can accommodate 104 persons. Apart from being equipped with a 250-tonne crane for subsea installation work, the vessel also has a swimming pool, libraries, saunas, gym and a cinema with 50 seats.
Grand Canyon II, the second of three planned sisters, is designed for operation under severe weather conditions with high manoeuvrability and station keeping capabilities. The vessel has gone to Helix Energy Solutions on a five-year charter.