Page 13: of Marine News Magazine (December 2012)

to foreign yards ? how did you achieve this and what else went into your decision process? We believe the pricing we have received from the U.S. shipyards for our new construction program is competitive on a global basis. At approximately $7,500 per deadweight ton, we are at an attractive cost basis for new 280 and 300 class vessels. The scale and timing of our program provided us with valuable opportunity. However, price is not the only variable. We have added ?optionality? by constructing vessels that qualify for coastwise trade under the U.S. Jones Act. Quality and schedule also are important variables in determining value and we believe the scale of our program, and the proven designs and shipyards we have selected, offer the greatest value to our investors. It was important to us that the vessel deliveries occur in 2013-2015, when nearly 60 newly constructed  oating rigs are expected to enter the market. You tout a diversi ed  eet mix of Multi-class OSV and MPSV tonnage that is capable of serving clients ?from cradle to grave.? But, what does that mean exactly?It means we have a  eet of diverse marine equipment that is capable of meeting many of our clients? requirements across their enterprise. Our smaller, DP-1 vessels provide support to production activities while our larger DP-2 vessels support drilling operations. We have multiple vessels performing well stimulation services. Our DP-3 MPSVs support construction, inspection, maintenance and repair in addition to well intervention and decommissioning activities. Our 370 class vessels are the only vessels in the world multi-certi cated by the U.S. Coast Guard as supply vessels, industrial / freight vessels, chemical tank ships, and oil spill response vessels. We expect our 300 class vessels will also ful ll multiple roles in the exploration and production cycle. ?We currently view LNG/Dual-Fuel powered supply vessels as a niche market, as only a few customers in our core markets have expressed interest in this solution. Their interest appears to be more driven by developing an alternative market for LNG than operational requirements.? MN 13www.marinelink.com