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    GulfMark Offshore invests in newbuilds - vessels will be built at Polish yard

    Vessel & ROV News // September 1, 2011

    GulfMark Offshore has announced the initiation of a vessel construction programme that will see three vessels built by Remontowa Shipbuilding SA in Gdansk, Poland.

    The vessels are PSVs with deck areas of 1,000m2 of MMC887CD design and one of MMC879CD design with a deck area of over 800m2. "These large and technologically advanced vessels have been designed to meet the demanding requirements for supporting deepwater and harsh environment activities, and are expected to operate in the North Sea market," the company said in a statement.

    The first MMC887CD vessel is due to be delivered in the second quarter of 2013. The second MMC887CD vessel and the MMC879CD vessel are due to be delivered in the third quarter of 2013. The total cost of these three vessels is anticipated to be US$120 million dollars.

    Bruce Streeter, President and CEO at the comapny, said: "We are excited about the initiation of our new construction programme. Global market and economic conditions over the past three years gave us enough concerns to hold back on building new vessels.

    "However, recent oil and gas finds in the North Sea, a drilling focus on frontier areas and the announcement of more than 60 new offshore drilling rigs in 2011 gives us the confidence to initiate the building of vessels designed for this developing market.

    "Forward contract visibility and increasing opportunities in areas demanding large sophisticated vessels indicate a strong potential for these additions to our fleet."

    Funding for the vessels will be through cash in hand and cashflow generated from operations during the construction period.

    Anticipated cash commitments for this program over the next three calendar years are US$20 million during 2011, US$55 million during 2012 and US$45 million during 2013.

    As of June 30, 2011, the company had US$114 million of cash on hand and US$10 million drawn on its US$175 million of revolving credit facility.

    The company said it anticipates ordering additional vessels over the next few quarters.

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