The floating production sector has been especially active over the past several months. Ten production floaters have been ordered since March. They include a $3 billion FPSO for Nigeria (a record price for an FPSO), two $1.8 billion FPSOs for Brazil, a $1.8 billion FPSO for the UK, a $1.3 billion production barge for the Congo and a $1.0 billion FPSO for the Gulf of Mexico.

MODEC's FPSO Cidade de Niteroi MV18 

269 floating production units now in service or available —

This figure is 22% greater than five years ago, almost 80% higher than ten years back. FPSOs account for 61% of the existing systems. The balance is comprised of production semis, tension leg platforms, production spars, production barges and floating regasification/storage units. Thirteen units (12 FPSOs, 1 Semi) are off field and available for reuse – resulting in an overall utilization rate of 95.2%. Another 93 floating storage/offloading units (without production capability) are in service.

72 production floaters are on order —

Current order backlog consists of 40 FPSOs, 6 production semis, 5 TLPs, 4 spars, 1 barge, 4 FLNGs and 12 FSRUs. Delivery of the equipment will grow the production floater inventory by 27%. In the backlog are 46 units utilizing purpose-built hulls, 26 units based on converted tanker hulls and 1 unit being modified from an existing production semi Of the production floaters being built, 41 are owned by field operators, 31 are being supplied by leasing contractors. Brazil continues to dominate orders for production floaters – 23 units are being built for use offshore Brazil, 32% of the order backlog.                               

241 new floater projects are in the bidding or planning stage —

The number of future projects in the pipeline keeps growing. A year ago 233 projects were in the planning or bidding stage. Five years ago, the figure was 141 projects. Ten years back, 94 projects. According to Jim McCaul, head of IMA, "potential deepwater projects should grow significantly over the rest of the decade. Oil demand keeps growing, the futures market points to $90+ oil through the decade, deepwater drill contractors are running at full load and 90+ additional drillships/semis are scheduled for delivery over the next few years. These new drill units will increase deepwater drill capability by 30% and remove a bottleneck that has constrained E&D in deepwater."

But deepwater spending could be hitting headwinds —

Deepwater projects compete for a place in capital expenditure plans – and investment opportunities in tight oil and shale gas could cause some deepwater projects to slip from oil company capex budgets. This could be occurring now. According to McCaul, "maybe it is more than a coincidence that five major deepwater projects have been deferred over the past several months. Each project had its own reason for deferral. But five in such a short period sends warning signals to everyone in this sector."

International Maritime Associates (IMA) is a firm of business consultants specializing in market analysis and strategic planning for companies in the marine and offshore sectors.

We provide the front-end research needed to size the available market, analyze customer requirements, benchmark market position, identify new business opportunities, evaluate market positioning options and assess potential acquisitions or strategic alliances.

Since formation in 1973, IMA has performed over 350 consulting assignments for clients in more than 40 countries.

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Hamburg: “Making technology-based decisions is complex for each individual company, as is finding the right way into the future. We fully support the overall political will and dedication to reduce harmful emissions from ship operations.”

Said Jörg Langkabel, DNV Country Manager, on the occasion of the visit of the German Minister of Transport, Peter Ramsauer, to Caterpillar’s factory in Rostock.

DNV is helping the industry in Germany to introduce LNG as an economic and safe alternative fuel for ships. The new environmentally friendly dual-fuel Caterpillar M 46 engine is fully capable of running on LNG and meets all the Tier III requirements in gas mode.

At the event, the presented possibility of converting a large number of ships with Caterpillar engines to LNG showed that this technology is now leaving the market niche and spreading out into the industry. As the most experienced class and service provider, DNV is playing an important role in supporting this development.

Mr Ramsauer made reference to Germany’s fuel strategy for the transportation industry, including shipping. He explained that the German government is ready to support pilot projects like retrofitting new engine solutions on ships.

Caterpillar pointed out that 450 ships are now using the M43C-type engine, which can be converted to an LNG-fuelled M 46 DF engine. The majority of these engines are installed on ships with German owners. About 190 of these ships are less than six years old and therefore in principle suitable for conversion to LNG. Most of the ships are container feeders of similar design. There is thus the potential for a standardised, cost-effective retrofit of a large number of ships.

“The transport industry can play a leading role by changing fuel. With our mobility and fuel strategy, we have introduced a way forward for a change with a long-term horizon, making this suitable for continuous planning and implementation,” said Mr Ramsauer. He demonstrated the government’s willingness to implement changes, stating that the MS Atair ship – which belongs to the German Authority for Shipping and Hydrographics - will be replaced by a new LNG-fuelled ship in 2015.

“DNV is convinced that LNG is an environmentally friendly fuel and the best available option to reduce emissions. We can offer many services relating to ship-specific solutions as well as advice on infrastructure needs and investments by ports and authorities. DNV’s tool for assessment and guidance on using LNG as fuel is the LNG Ready service, where the technical solutions are examined and alternatives compared on an OPEX and CAPEX basis, enabling customers to make a strategic decision,” said Mr Langkabel.

He added that DNV has a long and proven track record on LNG since the 1960s, when DNV was instrumental in the development of the Moss-design round transport tanks for LNG, a design still in use. DNV classed Norway’s first LNG-fuelled ferry, which has been operational since 2000, and classes more than 90 per cent of all LNG-fuelled ships. The newest is the Stavangerfjord cruise ferry belonging to the Norwegian owner Fjordline. This ship is 170 metres long and can carry 1,500 passengers and 600 cars. It will serve the busy ferry connections between Norway and Denmark.

The Ferguson Group, global specialists in the provision of offshore DNV 2.7-1/EN12079 containers and accommodation solutions, has posted its 2012 results, which show continuing growth, with worldwide sales increasing by over 10% to £57.6m and pre tax profits up to £16.2m from £15.6m in 2011.



Commenting on the results, Richard Smith, Group Finance Director, said: “2012 was another successful year for the Ferguson Group, which saw the company increase profits during a year of continuing investment in our global infrastructure and asset base. The last two years have seen a substantial investment in infrastructure, strengthening our management team and continuing to build the rental fleet. We expect to see the benefits of this investment reflected in the result for 2013 and are ahead of plan at the half year.



The majority of our sales come from outside the UK and increasing our global presence is a key part of our business plan. The Middle East has been a region of accelerated growth for us, particularly following the launch of two new bases in Dubai and Abu Dhabi.  We also moved to larger facilities in Singapore at the beginning of 2013 to enable us to develop our business further in the Asia Pacific region and we are very optimistic about future prospects for the Group in all regions.


Our focused growth strategy continues to incorporate customer feedback, where operational safety and asset availability are key themes. We aim to put resources into those regions where our customers are at their busiest. Global expansion will continue to be a top priority for the Group over the next 12 months, as we move into other regions where clients require access to our extensive fleet of DNV 2.7-1/EN 12079 certified containers, tanks, baskets, accommodation and workspace modules.



During 2012 we began rebranding the group’s companies under a single “Ferguson Group”, starting with our businesses in Australia and Singapore, which were renamed Ferguson Group Australia Pty Ltd and Ferguson Group Singapore Pte. Ltd respectively. The rebranding exercise continues throughout 2013.”

Rowan Companies plc ("Rowan" or the "Company") (NYSE: RDC) announces that one of its subsidiaries has entered into a three-year contract with Cobalt International Energy, L.P. ("Cobalt") (NYSE: CIE) for the Rowan Reliance, one of Rowan's new ultra-deepwater drillships currently under construction at the Hyundai Heavy Industries Co. Ltd. ("HHI") shipyard in Ulsan, South Korea.  The drillship is expected to operate in the U.S. Gulf of Mexico. 

The Rowan Reliance is expected to be delivered from HHI at the end of October 2014.  The contract is expected to commence late January 2015 following mobilization.  The effective day rate for the work will be $602,000, including mobilization revenues, and adds $660 million in revenue backlog.

Matt Ralls, Rowan's Chief Executive Officer, stated, "We are very pleased to enter into this relationship with Cobalt.  They have a very exciting growth story with a strong track record in ultra-deepwater exploration.  We will complement their growth potential through our expansion into the ultra-deepwater drilling segment with the most advanced drillships in the industry.  We are proud to have this opportunity to be part of the future success of this exciting company."

The Rowan Reliance is one of four ultra-deepwater drillships being constructed for Rowan by HHI.  All four drillships are based on a GustoMSC P10,000 hull design, capable of drilling wells to depths of 40,000 feet in water depths up to 12,000 feet. The DP-3 compliant, dynamically positioned drillship will be equipped with retractable thrusters, two readily deployable seven-ram BOP systems,five mud pumps, dual mud systems and a maximum hookload capacity of 1,250 tons.

With the award of this contract for the Rowan Reliance, three of the Company's four ultra-deepwater drillships under construction at HHI are now under contract.  The fourth remaining uncontracted drillship, the Rowan Relentless, is scheduled to be delivered from the shipyard at the end of March 2015.

The Bureau of Safety and Environmental Enforcement (BSEE), U.S. Coast Guard, and Walter Oil & Gas Corporation (Walter), through the Unified Command, continue to oversee and coordinate response efforts to secure the South Timbalier 220 natural gas Well A-3. Safety of personnel and protection of the environment remain the top priorities.

All debris is now removed from the wellhead giving crews vertical access to the well, removal was done from the derrick barge “Performance”.

BSEE approved plans to send a camera and logging tools down the wellbore and is conducting visual observation along with Unified Command. Observations will be used to advance well intervention plans. No gas releases are reported from fixed wireless detectors placed some 30 feet from the top of the well or detection devices carried by all onsite personnel.

Drilling on the relief well is underway using the Rowan EXL-3 jack-up rig, contracted by Walter. Drilling is expected to continue through early September. Many factors can affect the expected schedule including weather and the intricate work of locating the target well bore at the end of the drilling process. A relief well is drilled to intercept the target well. Once intercepted, drilling mud, followed by cement will be pumped into the well to secure it.

All available options to safely secure the natural gas well remain under consideration. Work is moving forward on all approaches.

From visual observation, a sheen is no longer present in the area of the well. The Coast Guard continues to maintain a 500-meter safety zone around the site. Firefighting and other marine vessels remain onsite with personnel from Walter, Hercules, and other professional engineering contractors, and relevant federal agencies. BSEE's investigation into the cause of the loss of well control continues in coordination with the Coast Guard.

Additional updates will be issued as information becomes available. Media inquiries and requests for additional information should be directed to. 504-736-2595.

BACKGROUND:  Walter experienced a loss of control of Well A-3 at approximately 8:45a.m. July 23 on an unmanned platform at South Timbalier Block 220 while doing completion work on the sidetrack well to prepare the well for production. The operator reported the safe evacuation of 44 personnel from the Hercules 265 jack-up rig. Coast Guard confirmed that the leaking natural gas ignited at 10:45 p.m. CDT July 23. BSEE confirmed July 25 that the well flow subsided after a natural bridging process and the fire was suppressed.

As SEA CON® continue their growth they are also continuing to find new ways to better serve their expanding market.  A prime example of this is SEA CON’s new Encapsulating & Molding facility in the West Houston area, opening to develop even greater levels of support both to the Gulf Coast region and internationally.

“There is clear evidence that the market is growing” says SEA CON’s Marketing Manager Melanie Harrison. “The demand on suppliers to increase manufacturing, design, support and customer service also grows in line with this upturn. This new facility is just one of a number of steps we will be taking to achieve our mission”.

Concurrent to this growth in demand is the need for suppliers to exhibit great flexibility and the ability to react quickly to customers needs both planned and unforeseen, while still maintaining high levels of quality and innovation.  Part of this solution is seen by SEA CON to include holding increased stock of most popular connectors to help fill an increasing need for short order custom assemblies.

SEA CON is passionate about the important issue of ensuring the needs of their clients are dealt with quickly and efficiently and the new installation will certainly enable them to meet growing needs and higher expectations. 

SEA CON currently has five main production facilities geared to the delivery of a mass production of subsea connectors. At times this can make it difficult to provide customers with short order custom assemblies. The new work shop will specialize in these short order needs of SEA CON clients, current and future.

The workshop will allow SEA CON to carry more stock of their most popular connectors to mainly benefit their existing customers who don’t necessarily need a molded assembly. Some of the product lines will include the Rubber Molded, WET-CON, ALL-WET and 55/66 series assemblies. Stocks of these are already held, but this new facility will see these stock levels increase.

Craig Newell, Vice President of Sales & Corporate Business Development said “Consistency throughout the business is paramount to our success and the launch of a new Encapsulation and Molding Workshop is just another example of our commitment to over deliver on the promise and work with an overt focus on the changing needs of our clients.” 

Executive Chairman of Marathon Oil Corp. and former Executive Vice President of Development & Production of Statoil ASA join the FMC Technologies Board of Directors

FMC Technologies, Inc. (NYSE: FTI) announced the appointment of two new members to its Board of Directors.

The new board members are Clarence P. Cazalot, Jr., Executive Chairman of Marathon Oil Corp., and Peter Mellbye, former Executive Vice President of Development & Production of Statoil ASA.

Mr. Mellbye will join the Board on October 1, 2013, and Mr. Cazalot will join the Board on December 1, 2013.

Clarence P. Cazalot, Jr., Executive Chairman of Marathon Oil Corp.

Mr. Cazalot has been in leadership positions at Marathon Oil Corp. for the past 13 years, recently serving as Chairman, President and CEO. He currently serves as Executive Chairman. Prior to joining Marathon Oil Corp. in 2000, Mr. Cazalot served in various roles at Texaco, Inc. for 28 years. He currently serves as a member of the Board of Directors for Marathon Oil Corp. and is a member of the Board of Directors of Baker Hughes, Inc. Mr. Cazalot has a bachelor's degree in geology from Louisiana State University.

Peter Mellbye, former Executive Vice President of Development & Production of Statoil ASA

Mr. Mellbye served in leadership positions at Statoil ASA for 30 years. He most recently served as its Executive Vice President of Development & Production, International. Prior to joining Statoil, Mr. Mellbye worked for the Norwegian Trade Council and the Norwegian Ministry of Trade and Industry. He currently serves as Chairman of the Board of Directors for Ocean Installer, A/S, and is on the Board of Directors of Axis Offshore Pte. Ltd. Mr. Mellbye has a master's degree from the University of Oslo and a bachelor's degree from the University of Bergen.

Petrobras has confirmed the presence of oil in well 3-SPS-101 (3-BRSA-1179-SPS), in the Carioca Discovery Evaluation Plan area, block BM-S-9, Santos Basin pre-salt. The well, informally known as Iguaçu Mirim, is located 303 km off the coast of the state of São Paulo, 34 km south of the discovery well (1-SPS-50 - Carioca) and 9 km south of the Iguaçu well (4-BRSA-709-SPS), at a water depth of 2,158m.

This new discovery was confirmed through oil samples of approximately 20° API, taken via cable test from pre-salt carbonate reservoirs starting at a depth of 4,850 meters.

The consortium of BM-S-9 is operated by Petrobras (45%) in partnership with BG E&P Brasil (30%) and Repsol Sinopec Brasil (25%). The deadline for the Declaration of Commerciality is December 31, 2013.

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Science Applications International Corporation (SAIC) [NYSE: SAI] announced it was awarded a prime contract by the Defense Advanced Research Projects Agency (DARPA) to provide deep ocean acoustic detection for Transformational Reliable Acoustic Path Systems (TRAPS). The single-award cost-plus fixed-fee contract has a fourteen-month base period of performance, one six-month option, and a total contract value of approximately $10 million if the option is exercised. 

 TRAPS is a fixed passive sonar node designed to achieve large-area coverage by exploiting advantages of operating from the deep seafloor.  Under a previous contract, SAIC completed the initial TRAPS prototype design under the Deep Sea Operations Program Phase 1B, part of the Distributed Agile Submarine Hunting program, and continued validation of the underlying scientific approach through the further analysis of available Navy datasets. In Phase 2, SAIC completed a highly successful deep ocean acoustic data collection using the primary sensor intended for the TRAPS prototype that validated key foundational hypothesis for this breakthrough approach.

 Under Phase 3 of the contract, SAIC will expand the number of prototype nodes to demonstrate a scalable distributed system prototype system to detect quiet submarines.  SAIC intends to supply DARPA with a capability to use systems of configurable technology to achieve Antisubmarine Warfare surveillance needs over large, operationally relevant deep ocean areas.

 "We're excited to continue to work with DARPA on this program, maintaining our commitment and focus on offering innovative solutions that will lead to a final sea test demonstration employing multiple long endurance nodes modified and tested for improved power efficiency, information assurance, enhanced signal processing and manufacturability," said John Fratamico, SAIC senior vice president and group general manager. 

The joint venture formed by Technip (50%) and DOF (50%) was awarded by Petróleo Brasileiro S.A. (Petrobras) eight contracts. These contracts cover the construction of four new pipelay support vessels (PLSVs) and operation in Brazilian waters to install flexible pipes. The combined value for Technip is approximately €1.35 billion.

Two of the PLSVs will have a 300-ton laying tension capacity and will be fabricated in Brazil with a high national content. The other two vessels will be designed to achieve a 650-ton laying tension capacity, thus enabling the installation of large diameter flexible pipes in ultra-deepwater environments, such as the Brazilian pre-salt. Vard Holdings Limited (“VARD”), one of the major global designers and shipbuilders of offshore and specialized vessels, will be in charge of the design and construction of the four PLSVs.

Under the Technip/DOF joint venture agreement, Technip will manage flexible pipelay and DOF will be responsible for marine operations. Delivery of the PLSVs is scheduled for 2016-2017. Contracts will last eight years from start of operations, and could be renewed for another eight-year period.

Frédéric Delormel, Technip’s Executive Vice President and Chief Operating Officer Subsea, declared: “This strategic contract reinforces our subsea leadership in Brazil and our long-term relationship with Petrobras. We are confident that these new state-of-the-art PLSVs, including two with the most important flexible pipelay tension capacity in the world - 650 tons - will be key assets for our client to successfully achieve its projects offshore Brazil.”

Mons S. Aase, DOF’s Chief Executive Officer, added: “The contracts confirm that our co-operation with Technip on the Skandi Vitória and Skandi Niterói has been successful, and reinforces our position as a leading provider of offshore vessels to the Brazilian O&G industry. It comes as a result of our long-term focus on the Brazilian market and is an acknowledgment of the expertise of our people.”

Roy Reite, VARD’s Chief Executive Officer and Executive Director commented: “I look forward to working with Technip and DOF on these milestone projects. VARD yards both in Europe and Brazil being chosen to build these vessels illustrates the value of having a global presence when working with international clients, and bringing leading edge technology to new markets.”

Apache Corporation (NYSE, Nasdaq: APA) says that the third well in the Bacchus Field in the United Kingdom sector of the North Sea has pushed field production past 17,600 barrels of oil per day. Apache has a 50 percent interest in the field.

The Bacchus B-1 development well, which commenced production in July, currently is producing 9,400 barrels of oil per day. Apache logged 2,057 feet net oil pay along a horizontal completion segment in high quality Jurassic-aged Fulmar sandstone in the field's western fault block. Oil from the Bacchus Field is produced through a subsea tie-back to Apache's Forties Alpha platform.

Following the recent success at Bacchus, Apache has extended its current Forties 3-D seismic survey area to cover other Jurassic development and exploration targets in Apache licenses in the Bacchus area. The seismic survey is expected to be completed in September.

Apache has brought three new fields — Bacchus, Maule and Tonto — on production in the Forties area since 2009. All three developments qualified under the United Kingdom government's small field allowance system, which provides economic incentives for operators to bring these discoveries into production.

"Utilizing existing infrastructure within the Forties Field area enables Apache to bring these smaller discoveries on production in a cost-effective manner for the benefit of all stakeholders," said James L. House, region vice president and managing director of Apache North Sea. "A little more than a year after first production, Bacchus has produced 3 million barrels of oil and has already paid out."  

Ascent Resources plc, the AIM listed European oil and gas exploration and production company, today announces that it has agreed to dispose of its full interests in the Netherlands Exploration Licenses Terschelling-Noord and M10a & M11 to Tulip Oil Netherlands B.V. for a total cash consideration of up to €450,000, before selling expenses, once the consents for the transfer of the Licenses become irrevocable. These licenses did not form part of the core asset base on which the board has decided to focus.

 The agreement grants Ascent the right to re-purchase from Tulip Oil a 10% interest in each of the Licenses once Tulip Oil has made a final investment decision with respect to the commercial development of the Terschelling-Noord Field.

 The disposal enables Ascent to recover a proportion of its technical appraisal costs incurred during the period it held the Licenses.

 Len Reece, Ascent's Chief Executive Officer, commented: "This transaction is in accordance with our corporate strategy of disposing of non-core assets. It provides additional cash for the Company in the short term and allows Ascent to focus our efforts and resources on our core Petišovci project in Slovenia."

DOF Subsea USA has taken delivery of the new build DPII Multipurpose Construction Vessel - Harvey Deep-Sea under a 4-year long term charter agreement with Harvey Gulf International Marine.

DOF Subsea will immediately commence the planned mobilization, comprising of structural reinforcement of the back deck to allow rapid mobilization of project specific equipment, repositioning of the crane boom rest, expansion of deck utilities, integration of two (2) new XLX ROV system and installation of on-line /off-line survey systems. 

Upon completion of the mobilization and prior to commencing committed work with undisclosed client in the Gulf of Mexico, the vessel will undertake a short trials program to test the newly integrated ROV's and calibrate on-board USBL and Crane AHC Systems.

The Harvey Deep-Sea is a 92 meters in length and 19.5 meters in beam vessel featuring a 165t AHC Knuckle-boom crane (approx. 90t to 3,000 meters), accommodation for 71 people, S92 helideck, FiFi 2 and it is certified to carry methanol proving a suitable asset to the Subsea Team to deliver integrated projects safely and in compliance with the Jones Act.

DOF Subsea owns and operates a high specification fleet of vessels and ROVs, which in combination with our team of highly qualified and experienced personnel provides our Clients with safe, efficient and cost effective project delivery. 

- Net Income Improves 60% to $1.0 million

 - Modified EBITDA Increases 22% to $1.7 million

 - Revenues Increase 16% to $9.2 million

Deep Down, Inc. (OTCQX: DPDW) ("Deep Down")(the "Company"), an oilfield services company specializing in complex deepwater and ultra-deepwater oil production distribution system support services, has reported net income of$1.0 million, or $0.10 per diluted share, for the second quarter of 2013, an improvement of $0.4 million from the second quarter of 2012.   

OPERATING RESULTS

Revenues increased by $1.3 million in the second quarter of 2013 compared to the prior-year quarter. The increase of 16 percent in revenues occurred primarily due to increased demand by our customers for our technologically innovative solutions as a result of our consistently successful project execution.

Gross profit increased by $0.6 million to $3.5 million, or 38 percent of revenues, in the second quarter of 2013 compared to the prior-year quarter. Gross profit of 38 percent of revenues is consistent with our expectations for the second quarter of 2013.

Operating expenses increased by $0.2 million in the second quarter of 2013 compared to the prior-year quarter. The slight increase was due primarily to increased lease costs associated with our new facility.

The Company's management evaluates its financial performance based on a non-GAAP measure, Modified EBITDA, which consists of earnings (net income or loss) available to common shareholders before net interest expense, income taxes, depreciation and amortization, and other non-cash and non-recurring charges. 

Modified EBITDA increased by $0.3 million to $1.7 million in the second quarter of 2013 compared to the prior-year quarter. The increase in Modified EBITDA is due primarily to increased gross profit before depreciation expense of $0.7 million, partially offset by increased selling, general and administrative expenses before amortization of share-based compensation of $0.4 million.

WORKING CAPITAL

At June 30, 2013, we had working capital of $7.5 million. Additionally, in the first quarter of 2013, we entered into the fifth amendment of our bank credit agreement, which among other things, increased the committed amount under our revolving credit facility to $5 million from $2 million. Because of these factors, and because of cash we expect to generate from operations, we believe that we will have adequate liquidity to meet our future operating requirements.

EXECUTIVE MANAGEMENT

Ronald E. Smith, Chief Executive Officer, stated, "We are pleased with our results for the second quarter of 2013. Our backlog has reached $26 million and our business is increasing.  To accommodate this increase, we entered into a long-term facility lease in June 2013, which enables us to expand our capacity and take on much larger jobs."    

Cal Dive International, Inc. (NYSE: DVR) reported a second quarter 2013 loss of $1.7 million, or $0.02 per diluted share, on revenues of $121.0 million. Included in the loss is a $4.0 million after-tax gain related to the final marked-to-market adjustment of the derivative liability on the Company’s convertible debt. This compares to a loss of $5.7 million, or $0.06 per diluted share, on revenues of $120.3 million for the second quarter 2012. For the second quarter 2013, the Company reported EBITDA of $10.2 million compared to $10.7 million for the second quarter 2012.

Cal Dive also announced that it was awarded a contract on August 6, 2013, from Pemex Exploración y Producción that is expected to generate revenue of approximately $40 million. This award is in addition to the three Pemex awards already announced in 2013 for approximately $250 million. This most recent award brings the total expected revenue from contracts awarded by Pemex to Cal Dive this year to approximately $290 million. This latest contract is for the procurement, installation and commissioning of 3.5 kilometers of 20 inch subsea pipeline and associated tie-ins to an existing platform. The offshore construction is expected to commence toward the end of the fourth quarter 2013 with the remainder of the work expected to be performed during the first quarter 2014.

Commenting on the results and the contract award, Cal Dive’s Chairman, President and Chief Executive Officer, Quinn Hébert, stated, “The second quarter saw increased revenue and profitability from all of our international regions. For the quarter our international revenues increased by over 60% when compared to the second quarter 2012 and accounted for 65% of our total consolidated revenues. We continue to focus on our strategy of expanding our international operations, and expect that approximately 70% of our total 2013 annual consolidated revenues will come from international locations, led by work in Mexico.

“The U.S. Gulf of Mexico shallow water market overall continued to be sluggish during the second quarter and the work season had a late start due to weather during April and into May. Furthermore, we experienced a decline in the profitability of our two derrick barges year-over-year. The Pacific was in drydock much of the quarter but was fully utilized during second quarter last year on a large decommissioning project, and the Atlantic had low utilization in the quarter due to permitting delays for salvage and decommissioning projects and inclement weather at the very end of June. However, the outlook for the salvage and decommissioning market remains steady and these two assets are expected to have good utilization during the third quarter.”

Mr. Hébert continued, “We are very pleased to have just been awarded our fourth contract from Pemex this year. Looking ahead to the second half of the year, we will commence offshore operations in Mexico later in the third quarter. Our offshore schedule is always subject to change, but currently we expect to complete more work in Mexico during the fourth quarter than the third quarter. Therefore we expect the fourth quarter financial results to be comparable with the third quarter as the Mexico activity will offset the start of the typical winter season in the Gulf of Mexico. The remainder of the Mexico work will be completed during the first half of 2014 giving us better than usual utilization during the typically slow winter season. We will continue to actively bid more projects in Mexico over the remainder of 2013 for work in 2014.”

•    Inmarsat and RigNet sign long-term distribution agreement for Global Xpress and L-band services

•    RigNet signs significant 4-year Global Xpress capacity pre-purchase

•    RigNet acquires Inmarsat's retail energy operations

Inmarsat plc (LSE: ISAT), a leading provider of global mobile satellite communications services, and RigNet, Inc. (NASDAQ: RNET), a leading global provider of managed remote communications solutions to the oil and gas industry, has announced a wide-ranging strategic transaction involving the appointment of RigNet to distribute Inmarsat's Global Xpress and L-band services to the energy sector and the sale of Inmarsat's retail energy business to RigNet.

Under the terms of the agreement, RigNet will become a key Global Xpress distribution partner for the global energy sector and will offer Global Xpress and L-band services to RigNet's growing customer base.  In connection with the appointment, RigNet has entered into to a significant 4-year Global Xpress capacity pre-purchase.  

To further enhance the strategic value of the partnership, Inmarsat has agreed to sell to RigNet its retail energy operations, currently managed within the Inmarsat Solutions Enterprise business unit, for a total consideration of US$25 million.  The sale will include Inmarsat's microwave and WiMAX networks in the US Gulf of Mexico serving drillers, producers and energy vessel owners; its VSAT interests in Russia, the UK, the US and Canada, its telecommunications systems integration business operating worldwide, and its retail L-band energy satcoms business.  In 2012, the operations subject to the sale had total revenues of $81 million.  The overall transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close during or before the first quarter 2014.

RigNet, based in Houston, Texas, provides managed remote communication services in over thirty countries on six continents, covering over 1,100 oil and gas related sites ranging from drilling rigs to production facilities and energy vessels.  

Rupert Pearce, Inmarsat's Chief Executive Officer, said "We are excited about this partnership as it enhances the strategic positioning of both companies as we seek to address the communications needs of the global energy sector together. RigNet is the perfect partner for Inmarsat, supporting a large customer base of oil and gas VSAT customers, whom we expect to be at the forefront of the transition to Global Xpress services.  We also welcome the opportunity to work with RigNet's management team with its extensive knowledge of VSAT operations and customers.  This partnership prepares the way for a fast and successful take up of Global Xpress services in the global energy sector.'’

Mark Slaughter, RigNet's chief executive officer and president, said, "We are delighted to enter into this strategic partnership with Inmarsat.  As the two companies came together for discussions over a number of months - with RigNet evaluating high-throughput satellite providers and Inmarsat seeking a strong distribution channel into the energy market for its Global Xpress offering - it quickly became clear that this deal represented the best path forward for both companies."

"With the purchase of Inmarsat's energy broadband business and the addition of Global Xpress to our transport options, we will broaden and deepen our capabilities to serve the oil and gas industry across the life of the field from drilling through production," Slaughter added.  "This deal will enhance our services portfolio with world-class additions.  The highly-skilled staff that comes with the business will expand our team at an opportune time in the energy cycle.  Altogether, RigNet's extensive product and services portfolio tailored for the oil and gas industry, coupled with the unprecedented connectivity capabilities of Inmarsat's Global Xpress network, sets the stage for a step change in managed remote communications services to the oil and gas industry."

Trinity Advisers S.A. acted as Inmarsat's advisor and Steptoe & Johnson LLP acted as legal counsel on the transaction.

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