Profile: Global Industries, Ltd. (GLBL.O)

Global Industries, Ltd. provides worldwide construction and subsea services, including pipeline construction, platform installation and removal, project management, construction support, diving services, diverless intervention and marine support services to the offshore oil and gas industry primarily in selected international areas and the United States Gulf of Mexico. The Company provides services from shallow water to water depths of up to 10,000 feet. The Company’s business consists of two principal activities: Offshore Construction Services, which includes pipeline construction and platform installation, and removal services, and Subsea Services, which includes diving and diverless intervention, and marine support services.

On December 31, 2008, the Company’s fleet included 11 derrick lay barges (DLBs), one derrick barge (DB) , five multi service vessels (MSVs), four dive support vessels (DSVs), two offshore supply vessels (OSVs) and two cargo barges. Its major construction vessels, which include 10 barges and two ships, have various combinations of pipelay, pipe bury, derrick, dive support and deepwater lowering capabilities. During the year ended December 31, 2008, the Company expanded its fleet with the addition of two MSVs, one chartered and one purchased. The Company also are building two pipelay/derrick vessels designated Global 1200 and Global 1201.

Offshore Construction Services

The Company’s offshore construction services include pipelay, derrick, project management and related services. The Company is capable of installing steel pipe by either the conventional or the reel method of pipelaying using either manual or automatic welding processes. With the conventional method, 40-foot to 60-foot segments of up to 60-inch diameter pipe are welded together, x-ray tested and corrosion coated on the deck of the pipelay vessel. Each segment of pipe is connected to the prior segment of pipe and then submerged in the water as the vessel is moved forward by its anchor winches, or in some instances onboard thrusters. This process is repeated until the desired length of pipe has been laid. In good weather conditions and shallow water, the Company’s vessels can install approximately 400 feet per hour of small diameter pipe using the conventional pipelay method. It has the ability to install pipelines using the conventional method in the United States Gulf of Mexico, Latin America, West Africa, the Middle East and Asia Pacific regions. Several of its vessels employ dynamic positioning technology, which uses onboard thrusters in conjunction with global positioning system technology to enable a vessel to remain on station or move with precision without the use of anchors.

Global Industries, Ltd. is capable of installing pipelines using the reel method of pipeline construction. Under the reel method, welding and testing are performed onshore, and then the pipe is spooled in one continuous length onto a large reel on a specially designed major construction vessel. Once the vessel is in the proper position offshore, the pipe is unspooled onto the ocean floor as the vessel moves forward. This method of pipeline construction is generally used for pipelines with diameters of 12 inches or less, and is especially suited for deep water where pipeline burying is not required and for seasons with inclement weather. The pipeline construction services, which the Company performs by the reel method, are primarily performed in the United States Gulf of Mexico.

In the Gulf of Mexico, The United States Department of Interior Minerals Management Service (MMS) requires the burial of all offshore oil and gas pipelines that are greater than 8.75 inches in diameter and located in water depths of 200 feet or less. All of the Company’s major construction vessels are equipped with cranes designed to lift and place equipment into position for installation. Nine of these vessels are capable of lifts of 500 tons or more, making them suitable for very heavy lifts, such as offshore platform installations. In addition, the vessels can be used to disassemble, and remove platforms and prepare them for salvage or refurbishment.

Subsea Services

To support its subsea operations, Global Industries, Ltd. operates a fleet of four DSVs domestically and five MSVs. Four of these vessels have deepwater lowering capability to 2,000 meters. In 2008, the Company took delivery of two work class remotely operated vehicles (ROVs). For the Gulf of Mexico, the MMS requires that all offshore structures have extensive and detailed inspections for corrosion, metal thickness, and structural damage every five years.

For subsea projects involving long-duration and deepwater dives, the Company uses saturation diving systems that maintain an environment for the divers at the subsea water pressure, at which they are working until the job is completed. At December 31, 2008, the Company had 11 saturation diving systems available for use. Two of its largest saturation diving systems are capable of maintaining an environment simulating subsea water pressures to 1,500 feet. The Company's pipelay and derrick operations create captive demand for its saturation diving services.

Global Industries, Ltd. is involved in the development of underwater welding techniques. Underwater welds are made by two methods: dry hyperbaric welding and wet welding. In dry hyperbaric welding, a customized, watertight enclosure is engineered and fabricated to fit the specific requirements of the structural joint or pipeline requiring repairs. The enclosure is lowered into the water, attached to the structure, and then the water is evacuated, allowing divers to enter the chamber and perform dry welding repairs. Wet welding is accomplished while divers are in the water, using specialized welding rods. It also operates other offshore support vessels (OSVs) internationally to support its offshore construction services and also offer time charters to the offshore service industry.

Global Industries, Ltd. competes with Acergy S.A., Allseas Marine Contractors, S.A., Clough Limited, Dynamic Industries, Inc., J. Ray McDermott, S.A., Leighton International, Saipem S.p.a., Subsea 7, Technip, S.A., Helix Energy Solutions Group, Inc., J. Ray McDermott S.A., Cal Dive International, Bisso Marine Company, Chet Morrison Contractors, Inc., and Offshore Specialties Fabricators, Inc.