DECEMBER 17, 2012 — Norway's Scana Industrier ASA says that subsidiary Scana Volda AS, has entered into an agreement with VT Halter Marine, Inc, Pascagoula, Miss., for delivery of the main propulsion systems and controls for two (offshore supply vessels ("OSV"). The deliveries will take place second half 2013. These are the first two executed options of a total of up to 24 vessels. Also, Scana Propulsion Services has signed an agreement for deliveries of spare parts and services. The total value of the contracts is MNOK 25.

The shipowner is Hornbeck Offshore Services, Inc (NYSE: HOS), and the vessels are a part of one of the largest newbuild programs in the market of offshore vessels. The ship design is VT Halter's own Super 320 design developed for Hornbeck Offshore, with special attention to the most stringent regulations for environmental concerns, including double-hull, and propulsion machinery in line with the EPA Tier 3 requirements. The new vessels will operate in the Gulf of Mexico and Latin America.

The propulsion systems are diesel-mechanical configuration, consisting of two Scana controllable pitch propellers driven by Caterpillar main engines connected to Scana reduction gears. The deliveries include Scana control systems.

"Scana has delivered propulsion systems for 33 Hornbeck Offshore vessels and appreciates continuing this long-term cooperation," says Kristian Sætre, Group Director, Scana Propulsion.

Scana Propulsion says it has got a very strong foothold in the U.S. offshore market. This has been confirmed by new contracts and by the good response Scana Propulsion received at the International Workboat Show in New Orleans recently. Scana's strategy and focus on new and tailored propulsion systems for offshore and specialized vessels, as well as ensuring customer fast and good local service from an operational sales and service office in Mandeville, Louisiana, are the main reasons for our success in this market, says Mr. Sætre.

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