Norway: Cecon Announces Market Update

Following the completion of the restructuring activities of Cecon this winter, focus has been marketing the company’s services using modular spreads on third party vessels.

With the 1600t Sampson DPIII pipelay / heavy lift vessel being part of the company’s marketed portfolio, focus has shifted to also include rigid pipe of up to 36” and trunklines.

The new Dutch office will have prime focus on the heavy lift and larger diameter pipeline market.

The three 130m DPIII subsea construction / pipelay vessels under construction in Canada, are also tendered and planned with varying equipment installed on each of the vessels. Updated information on delivery will be given as soon as a solution is in place for the completion of these vessels at the Davie Yard in Quebec.

Over the last months, Cecon has identified an increased activity and potential client demand world-wide.

New projects together with numerous prospects which have been delayed over the last years are now announced to be developed.

A number of construction projects are current being tendered including: West Africa, North Sea, Asia and South America.

Of a prospect base including several hundred prospects, currently some 20 potential contracts are actively being worked on, with a magnitude of over 600km pipelines of varying dimensions.

For the first contracts that where expected to materialize during 1 half 2011, Cecon sees a trend that schedules show some slippage from the clients. None of the expected contracts has been concluded yet.

Tendering activities for the Sampson include heavy lifting in the 2011 season and pipelaying from the 2012 season and onwards. Alternative energy projects are also being pursued.

Tenders also include use of modular spreads on third party vessels in the short term, and on own newbuild vessels on longer term from 2012 and onwards.