Oil & Gas News

Cal Dive Awarded Two Additional Pemex Contracts Totaling $188 Million

caldiveCal Dive International, Inc. (NYSE:DVR) announced today that it has been awarded two additional contracts from Pemex Exploración y Producción that are expected to generate combined total revenues of approximately $188 million.

The first contract is for the procurement, installation and commissioning of 47 kilometers of 20 inch subsea pipeline and associated tie-ins to an existing platform. This contract is expected to generate revenues of approximately $129 million and will utilize two of the Company’s vessels as well as a third party vessel. The offshore construction is expected to commence in the third quarter 2013 with a portion of the work expected to be performed during the first quarter 2014.

The second contract is for the procurement, installation and commissioning of nine kilometers of two medium diameter subsea pipelines and associated tie-ins to existing platforms. This contract is expected to generate revenues of approximately $59 million and will utilize a third party vessel and a Company dive support vessel. The offshore construction for this contract is expected to commence in the fourth quarter 2013 and is expected to be completed by the end of the second quarter 2014. On a combined basis, approximately 50% - 60% of the contracts are expected to be performed during 2013.

Quinn Hébert, Chairman, President and Chief Executive Officer of Cal Dive, stated, “With the $63 million Pemex contract we announced in March, total contract awards with Pemex this year currently stand at $250 million. These awards increase our total Company backlog to over $400 million, our highest level in five years. We believe these awards demonstrate Pemex’s confidence in Cal Dive as a reliable contractor. These recent contract awards not only secure work for the second half of 2013, but also provide significant visibility for the first half of 2014 when our domestic business is historically slow due to the winter work season. Also, we continue to bid for additional work in Mexico that would mostly benefit our 2014 results.”

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