Annual Report

Managing Director’s statement
Marine Subsea was established in late 2006, with the goal of becoming a leading provider of equipment
and services to the offshore West Africa market. Since then, we have acquired 8 offshore vessels, where
6 are in operation and 2 to be delivered in 2010 and 2012. We have a suitable organisation with offices
in Norway, Scotland, Angola and Cyprus. The company managed at the end of the year to raise vessel
financing resulting in the company now being fully financed with a debt maturity profile that matches
the long-term nature of its contracts.
Most of Marine Subsea’s activities are in West Africa with prime focus
on Angola: Angola is now the largest African oil producer with average
production of 2 million barrels crude oil per day. The oil reserves are
approximately 9 billion barrels and the oil sector accounts for 54% of
GDP, and 80% of Governments tax revenues. Through the owners,
Marine Subsea draws on 25 years of experience in the region and has
thus a strong local market network.
Marine Subsea currently operates in three business segments; Subsea
Construction & Well Intervention, Offshore Support and Charter/Logistics.
In the first business segment we have both Sarah, now in operation, and
her sister vessel, Karianne, which is scheduled for delivery in October
2010. In the Offshore Support segment, we have 5 Work/Accommodation
barges, all delivered and on contract, as well as a semisubmersible Crane
Vessel, scheduled for delivery in first quarter 2012. Through Marine
Subsea’s Angola subsidiary, we have 7 tugs, anchor handlers and Platform
Support Vessels on charter in Angola, which makes up the third business
segment. In addtion, the company has secured a service contract for a
deepwater drillship and is working to realise the project
Due to the finance crisis, 2009 was a
very challenging year for Marine Subsea
and enormous pressure was put on the
organisation. Still, we successfully managed
to achieve our goals and we are in
a healthy position going forward. Marine
Subsea is confident that the vessel
mix and the organisation that we
now have in place, is a good fit
for the business segments we are
in. We view the current market
as still being challenging, but
that there are already signs of
improvements, both in terms of
charter rates as well as number
of offshore projects being
executed.
December was a hectic month when the company managed to secure the
financing as well as taking delivery of 3 vessels in addition to securing a
new charter contract for 1 of the barges. After Sarah was delivered on
December 16th, she successfully undertook several offshore tests in the
North Sea. She is managed by Wilhelmsen Ship Management and On &
Offshore makes up most of the offshore project crew. Sarah is now in
Angola preparing for the first projects.
To facilitate our operation, particularly within the Subsea Construction &
Well Intervention segment, Marine Subsea acquired in August 2009 former
TS Marine UK, located in Aberdeen, Scotland. Marine Subsea UK Ltd.
enables us to better access these markets in that we offer experienced engineering,
management and project execution personnel for the operations
relevant for Sarah and Karianne, but also for the existing subsea services
offered in the North Sea by chartering third party vessels.
After having integrated the Marine Subsea UK management and organisation,
Marine Subsea no longer has a strategic need to maintain its
ownership in the subsidiary Lewis Ltd., which specialised in subsea well
intervention services. As a consequence, and due to Lewis’s uncertain
market and financial outlook, the board of Lewis Ltd decided to seek
voluntary liquidation in December 2009. Some of the key individuals of
the company have however been employed by Marine Subsea UK Ltd and
thus the skill set within the subsea well intervention is maintained and
even strengthened.
Christian Nygaard
Managing Director
Marine Subsea AS
Annual Report 2009 Marine Subsea 7