What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2021-02-25 compared with 2020-02-27 · 147 added, 119 removed, 220 unchanged (55% of the section changed)

2 unchanged sentences

We are an international offshore energy services company that provides specialty services to the offshore energy industry, with a focus on well intervention and robotics operations.

Our services cover the lifecycle of an offshore oil or gas field.

We provide services and methodologies that we believe are critical to maximizing production economics.

Traditionally, our services have covered the lifecycle of an offshore oil or gas field.

In recent years, we have seen an increasing demand for our services from the offshore renewable energy market.

We provide services primarily in deepwater in the Gulf of Mexico, Brazil, North Sea, Asia Pacific and West Africa regions.

Our life of field services are segregated into three reportable business segments:

Well Intervention, Robotics and Production Facilities.

For additional information regarding our strategy and business operations, see sections titled “Our Strategy” and “Our Operations” included within Item 1.

For additional information regarding business operations, see sections titled “Our Operations” included within Item 1.

Business of this Annual Report.

6 unchanged sentences

Financial Statements and Supplementary Data located elsewhere in this Annual Report.

We are an international offshore energy services company that provides specialty services to the offshore energy industry, with a focus on well intervention and robotics operations.

We believe that focusing on these services should deliver favorable long-term financial returns.

From time to time, we may make strategic investments that expand our service capabilities and/or the regions in which we operate or add capacity to existing services in our key operating regions.

Our well intervention fleet expanded with the delivery in November 2019 of the Q7000 , a newbuild semi-submersible vessel.

The Q7000 commenced operations in Nigeria in January 2020.

Chartering vessels with additional capabilities, such as the Grand Canyon vessels, should enable our robotics business to better serve the needs of our customers.

We expect to benefit from longer-term contracts that offer firm utilization for our vessels and equipment, and we seek to improve utilization of our well intervention fleet in the Gulf of Mexico as we acquire oil and gas properties and perform the plug and abandonment (“P&A”) of the acquired assets as our schedule permits, subject to regulatory timelines.

In January 2015, Helix, OneSubsea LLC, OneSubsea B.V., Schlumberger Technology Corporation, Schlumberger B.V.

and Schlumberger Oilfield Holdings Ltd.

entered into a Strategic Alliance Agreement and related agreements for the parties to design, develop, manufacture, promote, market and sell on a global basis integrated equipment and services for subsea well intervention.

The alliance leverages the parties’ capabilities to provide a unique, fully integrated offering to clients, combining marine support with well access and control technologies.

OUR OPERATIONS

1 unchanged sentence

Well Intervention, Robotics and Production Facilities.

We provide a full range of services primarily in deepwater in the Gulf of Mexico, Brazil, North Sea, Asia Pacific and West Africa regions.

Our Well Intervention segment includes our vessels and/or equipment used to perform well intervention services primarily in the Gulf of Mexico, Brazil, the North Sea and West Africa.

Our well intervention vessels include the Q4000 , the Q5000 , the Q7000 , the Seawell , the Well Enhancer , and the chartered Siem Helix 1 and Siem Helix 2 vessels.

Our well intervention equipment includes intervention riser systems (“IRSs”) and subsea intervention lubricators (“SILs”), some of which we provide on a stand-alone basis.

Our Robotics segment includes remotely operated vehicles (“ROVs”), trenchers and a ROVDrill, which are designed to complement offshore construction and well intervention services, two robotics support vessels under long-term charter:

the Grand Canyon II and the Grand Canyon III , and spot vessels, including the Ross Candies , which is under a flexible charter agreement.

Our Production Facilities segment includes the Helix Producer I (the “ HP I ”), a dynamically positioned floating production vessel that currently processes production from the Phoenix field for the field operator, the Helix Fast Response System (the “HFRS”), our ownership interest in Independence Hub, LLC (“Independence Hub”) and our ownership of oil and gas properties.

We provide a range of services to the oil and gas and renewable energy markets primarily in deepwater in the Gulf of Mexico, Brazil, North Sea, Asia Pacific and West Africa regions.

Our Well Intervention segment includes our vessels and/or equipment used to access offshore wells for the purpose of performing well enhancement or decommissioning operations.

Our well intervention vessels include the Q4000 , the Q5000 , the Q7000 , the Seawell , the Well Enhancer , and two chartered monohull vessels, the Siem Helix 1 and the Siem Helix 2 .

Our well intervention equipment includes intervention riser systems (“IRSs”), subsea intervention lubricators (“SILs”) and the Riserless Open-water Abandonment Module (“ROAM”), some of which we provide on a stand-alone basis.

Our Robotics segment includes remotely operated vehicles (“ROVs”), trenchers and a ROVDrill, which are designed to complement well intervention services and offshore construction to both the oil and gas and the renewable energy markets globally.

Our Robotics segment also includes two robotics support vessels under long-term charter, the Grand Canyon II and the Grand Canyon III , as well as spot vessels as needed.

Our Production Facilities segment includes the Helix Producer I (the “ HP I ”), a ship-shaped dynamically positioned floating production vessel, the Helix Fast Response System (the “HFRS”) and our ownership of oil and gas properties.

All of our current Production Facilities activities are located in the Gulf of Mexico.

See Note 15 for financial results related to our business segments.

Our current services include:

Services we currently offer to the offshore oil and gas market worldwide include:

• Development.

Installation of flowlines, control umbilicals, manifold assemblies and risers;

trenching and burial of pipelines;

installation and tie-in of riser and manifold assembly;

commissioning, testing and inspection;

and cable and umbilical lay and connection.

• Production.

Well intervention;

2 unchanged sentences

inspection, repair and maintenance of production structures, trees, jumpers, risers, pipelines and subsea equipment;

and support for life of field services.

and related support services.

• Decommissioning.

Reclamation and remediation services;

well P&A services;

well plug and abandonment (“P&A”) services;

pipeline abandonment services;

and site inspections.

Installation of flowlines, control umbilicals, manifold assemblies and risers;

trenching and burial of pipelines;

installation and tie-in of riser and manifold assembly;

commissioning, testing and inspection;

and cable and umbilical lay and connection.

We have experienced increased demand for our services from the renewable energy industry.

Some of the services that we provide to these renewable energy businesses include subsea power cable installation, trenching and burial, along with seabed coring and preparation for construction of wind turbine foundations.

• Production Facilities.

Provision of our HP I vessel as an oil and natural gas processing facility for services to oil and gas companies operating in the deepwater of the Gulf of Mexico.

Currently, the HP I is being utilized to process production from the Phoenix field.

Provision of the HP I as an oil and natural gas processing facility.

Currently, the HP I is being utilized to process production from the Phoenix field in the Gulf of Mexico.

• Fast Response System.

1 unchanged sentence

federal and state agencies and respond to a well control incident.

Services we currently offer to the offshore renewable energy market worldwide include:

• Site Clearance.

Site preparation for construction of offshore wind farms, underwater unexploded ordnance identification and disposal and boulder relocation.

Cable protection via jetting and/or cutting by self-propelled trenching ROVs.

• Subsea Support.

General subsea support of engineering, procurement, construction and installation contractors with ROV services standalone or with support vessels.

Well Intervention

5 unchanged sentences

Our services provide a cost advantage in the development and management of subsea reservoirs.

We expect demand for our services to increase due to efficiency gains from our specialized intervention assets.

Our well intervention business currently operates seven vessels and various equipment such as IRSs and SILs, providing services primarily in the Gulf of Mexico, Brazil, the North Sea and West Africa.

The Q7000 , our newly completed semi-submersible well intervention vessel built to U.K.

North Sea standards, was delivered to us in November 2019.

The vessel commenced integrated well intervention operations offshore Nigeria in January 2020.

In the Gulf of Mexico, our Q4000 , a riser-based semi-submersible well intervention vessel, commenced operations in 2002 and serves customers in the spot market.

We believe we offer efficiency gains from our specialized intervention assets.

Our well intervention business currently operates seven vessels and various equipment such as IRSs, SILs and the ROAM, providing services primarily in the Gulf of Mexico, Brazil, the North Sea and West Africa.

In the Gulf of Mexico, the Q4000 , a riser-based semi-submersible well intervention vessel, has been serving customers in the spot market since 2002.

In 2010, the Q4000 served as a key emergency response vessel in the Macondo well control and containment efforts.

Our Q5000 riser-based semi-submersible well intervention vessel commenced operations in the Gulf of Mexico in 2015 and is under a five-year contract with BP into 2021.

The Q5000 riser-based semi-submersible well intervention vessel commenced operations in the Gulf of Mexico in 2015 and is under a five-year contract with BP expiring in the first half of 2021.

In Brazil, we provide well intervention services to Petróleo Brasileiro S.A.

5 unchanged sentences

The Seawell has provided well intervention and abandonment services since 1987, and the vessel underwent major capital upgrades in 2015 to extend its estimated useful economic life by approximately 15 years.

The Q7000 , a semi-submersible well intervention vessel built to U.K.

North Sea standards and capable of working globally, commenced operations in January 2020 and is currently performing integrated well intervention operations offshore Nigeria.

Our alliance with Schlumberger leverages the parties’ capabilities to provide a unique, fully integrated offering to clients, combining marine support with well access and control technologies.

Through our alliance, we and Schlumberger jointly developed a 15K IRS and the ROAM, which are currently available to customers.

We have been actively engaged in robotics for over three decades.

We operate robotics assets designed to complement offshore construction, maintenance and well intervention services, and often integrate these services with chartered vessels.

Our robotics business unit primarily operates in the Gulf of Mexico, North Sea, West Africa and Asia Pacific regions.

As global marine construction support operates in deeper waters, the use and scope of robotics services has expanded.

We operate robotics assets to complement offshore construction, maintenance and well intervention services for the oil and gas market and to support offshore renewable energy projects for the renewable energy market.

We often integrate our services with chartered vessels.

Our robotics business primarily operates in the Gulf of Mexico, North Sea, West Africa and Asia Pacific regions.

As global marine construction activity levels increase and as the complexity and water depths of the facilities increase, the use and scope of robotics services has expanded.

Our robotics assets and experience, coupled with our chartered vessel fleet and schedule flexibility, allow us to meet the technological challenges of our customers’ subsea activities worldwide.

Our robotics assets currently include 44 ROVs, four trenchers and one ROVDrill.

We charter vessels to support deployment of our robotics assets, and engage spot vessels on short-term charter agreements as needed.

Vessels currently under long-term charter agreements include the Grand Canyon II and the Grand Canyon III .

The Grand Canyon charter terminated in November 2019.

Over the last decade there has been an increase in offshore activity associated with the growing renewable energy industry.

As of December 31, 2020, our robotics assets included 44 ROVs, four trenchers and one ROVDrill.

We charter vessels on a long-term or a spot basis to support deployment of our robotics assets.

Over the last decade and especially in recent years there has been an increase in offshore activity associated with the growing renewable energy market.

As the level of activity for offshore renewable energy projects, including wind farm projects, has increased, so has the need for reliable services and related equipment.

1 unchanged sentence

We provide burial services related to subsea power cable installations as well as seabed clearing services around the world using our chartered vessels, ROVs and trenchers.

In 2019, revenues derived from offshore renewables contracts accounted for 36% of our global robotics revenues.

We believe that over the long term our robotics business unit is positioned to continue providing services to a range of clients in the renewable energy industry.

In 2020, revenues derived from offshore renewable energy contracts accounted for 41% of our global Robotics segment revenues.

We believe that over the long term our robotics business is positioned to continue providing services to a range of clients in the renewable energy market.

Production Facilities

1 unchanged sentence

The HP I has been under contract to the Phoenix field operator since February 2013 and is currently under a fixed fee agreement through at least June 1, 2023.

We own a 20% interest in Independence Hub, which owns the Independence Hub platform.

The platform is currently in the process of being decommissioned.

We developed the HFRS in 2011 as a culmination of our experience as a responder in the 2010 Macondo well control and containment efforts.

The HFRS combines the HP I , the Q4000 and the Q5000 with certain well control equipment that can be deployed to respond to a well control incident.

In January 2019 we renewed the agreements that provide various operators with access to the HFRS for well control purposes on newly agreed-upon rates and terms.

These agreements are through March 31, 2021 and automatically renew on an annual basis absent proper notice of termination.

In January 2019 we acquired from Marathon Oil Corporation (“Marathon Oil”) several wells and related infrastructure associated with the Droshky Prospect located in offshore Gulf of Mexico Green Canyon Block 244.

As part of the transaction, Marathon Oil agreed to pay us certain amounts as we complete the P&A of the acquired assets, which we can perform as our schedule permits, subject to regulatory timelines.

We completed the P&A of two of the Droshky wells during 2019, and we expect limited production associated with the remaining Droshky wells.

We are under agreement through September 30, 2021 with various operators to provide access to the HFRS for well control purposes.

Our Production Facilities segment includes two remaining wells acquired from Marathon Oil Corporation (“Marathon Oil”) in January 2019.

These oil and gas properties are associated with the Droshky Prospect located in offshore Gulf of Mexico Green Canyon Block 244.

As part of the transaction, Marathon Oil agreed to pay us certain amounts as we complete the P&A work.

GEOGRAPHIC AREAS

We primarily operate in the Gulf of Mexico, Brazil, North Sea, Asia Pacific and West Africa regions.

Our North Sea operations are subject to seasonal changes in demand, which generally peaks in the summer months and declines in the winter months.

See Note 15 for revenues as well as property and equipment by geographic location.

3 unchanged sentences

The percentages of consolidated revenues from major customers (those representing 10% or more of our consolidated revenues) are as follows:

2019 — Petrobras ( 29% ), BP ( 15% ) and Shell ( 13% );

2020 — Petrobras (28%) and BP (17%);

and 2017 — BP ( 19% ), Petrobras ( 13% ) and Talos ( 10% ).

2019 — Petrobras (29%), BP (15%) and Shell (13%);

and 2018 — Petrobras (28%) and BP (15%).

We provided services to over 50 customers in 2020.

The oilfield services industry is highly competitive.

While price is a factor, the ability to access specialized vessels, attract and retain skilled personnel, and operate safely are also important to competing in the industry.

Our principal competitors in the well intervention business include Baker Hughes, Expro Group, Oceaneering International, Inc., TIOS and international drilling contractors.

Our principal competitors in the robotics business include C-Innovation, LLC, DeepOcean Group, DOF Subsea Group, Fugro N.V., Oceaneering International, Inc.

Our competitors may have more financial, personnel, technological and other resources available to them.

The oilfield services and renewable energy services markets are highly competitive.

Price and the ability to access specialized vessels, attract and retain skilled personnel, and operate safely are important factors to competing in these markets.

Our principal competitors in well intervention include Baker Hughes, C-Innovation, Expro, Oceaneering, TIOS and international drilling contractors.

Our principal competitors in the robotics business include C-Innovation, DeepOcean, DOF Subsea, Fugro, Oceaneering and ROVOP.

Our principal competitors in renewable energy services include UTROV, Briggs Marine, James Fisher and Atlantic Marine.

Our competitors may have more or differing financial, personnel, technological and other resources available to them.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE

We continue to implement and improve Environmental, Social and Governance (“ESG”) initiatives and disclosures throughout our business.

In conjunction with support from management and our Board of Directors (our “Board”), we incorporate ESG initiatives into our core business values and priorities of safety, sustainability and value creation.

We understand we have an important role to play as a steward of the people, communities and environments we serve, and we regularly look for ways to emphasize and improve our own ESG record.

We incorporate ESG initiatives into our core business values and priorities of safety, sustainability and value creation with a top-down approach led by management and our Board of Directors (our “Board”).

Specifically, the Corporate Governance and Nominating Committee of our Board oversees, assesses and reviews the disclosure and reporting of any matters, including with respect to climate change, regarding the Company’s business and industry, and that committee's charter formally incorporates oversight of ESG matters as a stated responsibility.

We emphasize constant improvement by continually striving to improve our safety record, reducing our environmental impact, and increasing transparency.

In 2019, we continued to decrease our Total Recordable Incident Rate from prior years, continued to expand our business with renewable energy customers, and published our first Corporate Sustainability Report.

A copy of our current Corporate Sustainability Report is available on our website at www.HelixESG.com/about-helix/corporate-sustainability .

TRAINING, SAFETY, HEALTH, ENVIRONMENT AND QUALITY ASSURANCE

In 2020, we maintained a low Total Recordable Incident Rate and expanded our business with renewable energy customers.

Our efforts are published in our Corporate Sustainability Report and Corporate Sustainability Summary Update, copies of which are available on our website at www.HelixESG.com/about-helix/corporate-sustainability .

HUMAN CAPITAL RESOURCES

Labor Practices

As of December 31, 2020, we had 1,536 employees.

Of our total employees, we had 336 non-U.S.

employees covered by collective bargaining agreements or similar arrangements.

We consider our overall relationships with our employees to be satisfactory.

Further, we expect all employees to maintain a work environment free from harassment, discrimination and abuse, and one where employees treat each other with respect, dignity and courtesy.

Anti-Slavery and Anti-Human Trafficking

We are committed to ensuring that there is no modern slavery or human trafficking in our supply chains or in any part of our business.

Our workplace policies and procedures demonstrate our commitment to acting ethically and with integrity in all our business relationships, and to implementing and enforcing effective systems and controls to prevent slavery and human trafficking from taking place anywhere in our supply chains.

In 2020, we implemented Anti-Human Trafficking training for employees to further arm our workforce with the tools to spot and prevent human trafficking.

Our Modern Slavery Statement is available on our website, located at https://www.helixesg.com/modern-slavery-statement .

Employee Health and Safety

Our corporate vision of a zero-incident workplace is based on the belief that all incidents are preventable and that we manage our working conditions to eliminate unsafe behavior.

1 unchanged sentence

Everyone at Helix has the authority and the duty to “STOP WORK” they believe is unsafe.

Helix management actively encourages critical safety behaviors and employees to work in compliance with our goals to avoid injuries to people, environmental disturbances and damage to assets.

Our QHSE management systems and training programs were developed based on common industry work practices, and by employees with on-site experience who understand the risk and physical challenges of the offshore work environment.

As a result, we believe that our QHSE programs are among the best in the industry, and we continuously seek to improve our control of QHSE risks and the safe behavior of our employees.

We assess risk by using selected risk analysis tools, controlling work through management system procedures, assessing job risk of all routine and non-routine tasks, documenting daily observations, and collecting data, all in an effort to provide a better understanding of our QHSE risks and at-risk behaviors.

We schedule hazard hunts on our vessels and regularly audit QHSE management systems, with assigned responsibilities and action due dates.

The management systems of our business units have been independently assessed and registered compliant with ISO 9001 (Quality Management Systems) and ISO 14001 (Environmental Management Systems).

Our safety management systems were created in accordance with OHSAS 18001.

Health and Safety during COVID-19

The nature of offshore operations requires our offshore crew members as well as our customers and vendors to periodically travel to and from vessels.

The ongoing COVID-19 pandemic has introduced challenges unlike any we have ever seen, and while we like everyone else have not been immune to the impact of the pandemic, our personnel have risen to the occasion.

We implemented numerous health and safety protocols in response to the pandemic, including personnel isolation and health screenings prior to travel and crew changes, a rigorous testing regime for all offshore personnel, limiting or altogether eliminating certain common areas aboard our vessels, mandatory face coverings, social distancing, extending the duration of certain offshore shifts to reduce travel and turnover, deep cleanings of our onshore facilities and offshore assets, and immediate quarantine and definitive response protocols in the event any personnel are showing or reporting any potential symptoms.

With these measures in place to protect our personnel, those partners with whom we work and their collective families, we have thus far managed to avoid major operational downtime related to the pandemic.

Employee Engagement, Diversity and Inclusion

Employee Tenure and Turnover

We track tenure and voluntary employee turnover.

We then use this data to develop our human capital strategy.

In 2020, 56% of our workforce had been with the Company for five years or longer, and our global voluntary turnover rate was 4.3%.

While these numbers provide valuable insight, the context surrounding these numbers provide an even clearer picture into our global workforce.

In April and December 2017, respectively, the Siem Helix 1 and the Siem Helix 2 commenced operations in Brazil.

The commencement of operations required the employment and new hire of sufficient quantities of individuals to man those vessels.

In November 2019, we took delivery of the Q7000 .

The mobilization of the Q7000 again required the hiring and employment of additional employees.

Over the past four years, we have commenced operations with three new vessels, which directly impacts the tenure percentages above and skews a greater number of employees into the zero-to-four years category.

Training, Engagement and Improvement

We recognize that we must train our staff in order to be as prepared as possible to perform our operations safely.

Our staff receives up to date and relevant training required for their jobs, and Helix leadership actively engages staff so that behaviors reflect the training and critical safety approach we all desire.

The initial vessel orientation for new hires is the first of many steps in shaping those behaviors.

Each vessel and shore-based employee is assigned a Qualifications and Training Matrix that specifies the qualifications and training that an employee is required to have for the applicable position.

All training is tracked annually and evaluated to confirm the quality of training.

Ongoing and thoughtful employee participation is a vital element in the success of our QHSE process.

While we believe in the strength and effectiveness of our QHSE programs, we continuously look at how we can improve our control of QHSE risks through the behavior and feedback of our employees.

Diversity and Inclusion

We are committed to diversity and inclusion throughout our workforce.

In 2020, our worldwide workforce represented 28 different nationalities.

Our hiring managers and human resources departments in all regions partner to find the best candidates without regard to factors such as race, religion, color, national origin, age, sex, gender, sexual orientation, gender identity, disability, marital status, veteran status, genetic information or any other basis that would be in violation of any applicable federal, state, local or international law.

Employing people with different backgrounds, experiences and perspectives makes Helix a stronger business.

We are committed to attracting and retaining high-performing employees through this diverse talent base and evaluating and promoting throughout our organization based on skills and performance.

GOVERNMENT REGULATION

We provide services primarily in deepwater in the Gulf of Mexico, Brazil, North Sea, Asia Pacific and West Africa regions, and as such we are subject to numerous laws and regulations, including international treaties, flag state requirements, environmental laws and regulations, requirements for obtaining operating and navigation licenses, local content requirements, and other national, state and local laws and regulations in force in the jurisdictions in which our vessels and other assets operate or are registered, all of which can significantly affect the ownership and operation of our vessels and other assets.

Beginning in 2019 we operate end of life offshore oil and gas wells, some of which may be producing and which we plan to ultimately decommission.

Beginning in 2019 we operate end of life offshore oil and gas wells, some of which are producing and which we plan to ultimately decommission.

Being an operator of wells subjects us to additional regulatory oversight from the Bureau of Ocean Energy Management (“BOEM”) and the Bureau of Safety and Environmental Enforcement (“BSEE”).

11 unchanged sentences

International Overview

While we provide services globally and generally can be subject to local laws and regulations wherever we operate, the regulatory regimes of the U.K.

We provide services globally and generally can be subject to local laws and regulations wherever we operate.

Those laws and regulations generally govern environmental, labor, health and safety and other matters.

The regulatory regimes of the U.K.

and Brazil are of particular importance given the locations of our current operations.

19 unchanged sentences

Outer Continental Shelf (“OCS”).

Cabotage Rules

Local Content Requirements and Cabotage Rules

We are subject to local content requirements with respect to equipment and crews utilized in certain of our operations.

Governments in some countries, notably in Brazil and in the West Africa region, have become increasingly active in establishing and enforcing such requirements along with other aspects of the energy industries in their respective countries.

A number of jurisdictions where we operate require that certain work may only be performed by vessels built and/or registered in that jurisdiction.

6 unchanged sentences

BOEM and BSEE

Our business is affected by laws and regulations as well as changing tax laws and policies relating to the oil and gas industry in general.

Our business is affected by laws and regulations as well as changing tax laws and policies relating to the offshore energy industry in general.

The operation of oil and gas properties located on the OCS is regulated primarily by BOEM and BSEE.

3 unchanged sentences

In April 2016 BSEE issued the final Oil and Gas and Sulfur Operations in the Outer Continental Shelf-Blowout Preventer Systems and Well Control Rule, which updated requirements for equipment and operations for well control activities associated with drilling, completion, workover and decommissioning operations, and provided further guidance for the design and operation of remotely operated tools.

In May 2019, BSEE released revised regulations for well control and blowout preventer systems in response to previous Executive and Secretarial Orders that directed BSEE to review regulations that potentially burdened the development or use of domestically produced energy resources.

While leaving the majority of the regulations unchanged, certain provisions were revised and others were added, all in an effort to improve operations on the OCS.

The final revised regulations address offshore oil and gas drilling, completions, workovers, and decommissioning activities, and to the extent that any changes are applicable to systems that we own or operate, we have incorporated those changes into our operations as appropriate.

Local Content Requirements

Governments in some countries, notably in Brazil and in the West Africa region, have become increasingly active in establishing and enforcing local content requirements with respect to equipment and crews utilized in operations such as ours, along with other aspects of the oil and gas industries in their respective countries.

In May 2019, BSEE released revised regulations for well control and blowout preventer systems designed to improve operations on the OCS.

The regulations address offshore oil and gas drilling, completions, workovers, and decommissioning activities, and we have incorporated them into our operations.

Other Regulatory Impact

Additional proposals and proceedings before various international, federal and state regulatory agencies and courts could affect the oil and gas industry, including curtailing production and demand for fossil fuels.

We cannot predict when or whether any such proposals may become effective.

Additional proposals and proceedings before various international, federal and state regulatory agencies and courts could affect the energy industry, including curtailing production and demand for fossil fuels.

We cannot predict when or whether any such proposals may become effective, or how they will be interpreted or enforced.

ENVIRONMENTAL REGULATION

3 unchanged sentences

Under these laws and regulations, we may be liable for remediation or removal costs, damages, civil, criminal and administrative penalties and other costs associated with releases of hazardous materials (including oil) into the environment, and that liability may be imposed on us even if the acts that resulted in the releases were in compliance with all applicable laws at the time those acts were performed.

Some of the environmental laws and regulations that are applicable to our business operations are discussed in the following paragraphs, but the discussion does not cover all environmental laws and regulations that govern or otherwise affect our operations.

Some of the environmental laws and regulations that are applicable to our business operations are discussed below, but this discussion does not cover all environmental laws and regulations that govern or otherwise affect our operations.

is one of approximately 170 member countries party to the International Maritime Organization (“IMO”), an agency of the United Nations responsible for developing measures to improve the safety and security of international shipping and to prevent marine pollution from ships.

The IMO has negotiated MARPOL, which imposes on the shipping industry environmental standards relating to oil spills, management of garbage, the handling and disposal of noxious liquids, harmful substances in packaged forms, sewage, and air emissions.

The Oil Pollution Act of 1990, as amended (“OPA”), imposes a variety of requirements on offshore facility owners or operators, and the lessee or permittee of the area in which an offshore facility is located, as well as owners and operators of vessels.

The Oil Pollution Act of 1990, as amended (“OPA”), imposes a variety of requirements on offshore facility owners or operators in the U.S., and the lessee or permittee of the U.S.

area in which an offshore facility is located, as well as owners and operators of vessels.

Any of these entities or persons can be “responsible parties” and are strictly liable for removal costs and damages arising from facility and vessel oil spills or threatened spills.

14 unchanged sentences

Annex VI of MARPOL addresses air emissions, including emissions of sulfur and nitrous oxide, and requires the use of low sulfur fuels worldwide in both auxiliary and main propulsion diesel engines on vessels.

Beginning in 2010, the IMO designated the waters off North America as an Emission Control Area, meaning that vessels operating in the U.S.

The IMO designates the waters off North America as an Emission Control Area, meaning that vessels operating in the U.S.

must use fuel with a sulfur content no greater than 0.1%.

1 unchanged sentence

These can impact both the fuel and the engines that may be used onboard vessels.

The Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) requires the remediation of releases of hazardous substances into the environment and imposes liability, without regard to fault or the legality of the original conduct, on certain classes of persons, including owners and operators of contaminated sites where the release occurred and those companies that transport, dispose of or arrange for the disposal of, hazardous substances released at the sites.

The Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) requires the remediation of releases of hazardous substances into the environment in the U.S.

and imposes liability, without regard to fault or the legality of the original conduct, on certain classes of persons, including owners and operators of contaminated sites where the release occurred and those companies that transport, dispose of or arrange for the disposal of, hazardous substances released at the sites.

The Outer Continental Shelf Lands Act, as amended (“OCSLA”), provides the U.S.

4 unchanged sentences

We believe that we are in compliance in all material respects with the applicable environmental laws and regulations to which we are subject.

We maintain a robust operational compliance program to ensure that we maintain and update our programs to meet or exceed applicable regulatory requirements.

We maintain a robust operational compliance program, and we maintain and update our programs to meet or exceed applicable regulatory requirements.

We do not anticipate that compliance with existing environmental laws and regulations will have a material effect upon our capital expenditures, earnings or competitive position.

However, changes in environmental laws and regulations, or claims for damages to persons, property, natural resources or the environment, could result in substantial costs and liabilities, and thus there can be no assurance that we will not incur significant environmental compliance costs in the future.

Liability related to environmental compliance could have a material adverse effect on our financial position, results of operations and cash flows, and could have a significant impact on our financial ability to carry out our operations.

However, changes in environmental laws and regulations, changes in the ways such laws and regulations are interpreted or enforced, or claims for damages to persons, property, natural resources or the environment, could result in substantial costs and liabilities, and thus there can be no assurance that we will not incur significant environmental compliance costs or liabilities in the future.

Costs or liabilities related to environmental compliance could have a material adverse effect on our financial position, results of operations and cash flows, and could have a significant impact on our financial ability to carry out our operations.

INSURANCE MATTERS

2 unchanged sentences

These hazards can cause marine and subsea operational equipment failures resulting in personal injury or loss of life, severe damage to and destruction of property and equipment, pollution or environmental damage and the suspension of operations.

Damages arising from such occurrences may result in lawsuits asserting large claims.

Damages arising from such occurrences may result in claims.

Insurance may not be sufficient or effective under all circumstances or against all hazards to which we may be subject.

2 unchanged sentences

We maintain the amount of insurance we believe is prudent based on our estimated loss potential.

However, not all of our business activities can be insured at the levels we desire because of either limited market availability or unfavorable economics (i.e., limited coverage considering the underlying cost).

Our current insurance program is valid until June 30, 2020.

However, not all of our business activities can be insured at the levels we desire because of either limited market availability or unfavorable economics.

Our current insurance program generally covers a 12-month period beginning July 1 each year.

We maintain Hull and Increased Value insurance, which provides coverage for physical damage up to an agreed amount for each vessel.

1 unchanged sentence

In addition to the primary deductibles, the vessels are subject to an annual aggregate deductible of $5 million.

We also carry Protection and Indemnity (“P&I”) insurance, which covers liabilities arising from the operation of the vessels, and General Liability insurance, which covers liabilities arising from construction operations.

The deductible on both the P&I and General Liability is $100,000 per occurrence.

We also carry Protection and Indemnity (“P&I”) insurance, which covers liabilities arising from the operation of vessels, and General Liability insurance, which covers liabilities arising from construction operations.

Our current deductible on the P&I Liability is $100,000 per occurrence and $250,000 per occurrence on the General Liability.

Onshore employees are covered by Workers’ Compensation.

Offshore employees and marine crews are covered by a Maritime Employers Liability (“MEL”) insurance policy, which covers Jones Act exposures and currently includes a deductible of $100,000 per occurrence plus a $750,000 annual aggregate deductible.

In addition to the liability policies described above, we currently carry various layers of Umbrella Liability for total limits of $500 million in excess of primary limits as well as OPA insurance for our newly-acquired offshore properties with $35 million of coverage as required by BOEM.

In addition to the liability policies described above, we currently carry various layers of Umbrella Liability for total limits of $500 million in excess of primary limits as well as OPA insurance for our offshore oil and gas properties with $35 million of coverage as required by BOEM.

Our self-insured retention on our medical and health benefits program for employees is $300,000 per participant.

We also maintain Operator Extra Expense coverage that provides up to $150 million of coverage per each loss occurrence for a well control issue.

Separately, we also maintain $500 million of liability insurance and $150 million of oil pollution insurance.

For any given oil spill event we have up to $650 million of insurance coverage.

We also maintain Operator Extra Expense coverage that provides up to $150 million of coverage per each loss occurrence for a well control issue on oil and gas properties where we are the operator.

Separately, we also maintain $500 million of liability insurance.

For any given oil spill event we maintain up to $650 million of insurance coverage.

We customarily have agreements with our customers and vendors in which each contracting party is responsible for its respective personnel.

Under these agreements we are indemnified against third-party claims related to the injury or death of our customers’ or vendors’ personnel, and vice versa.

With respect to well work contracted to us, the customer is generally contractually responsible for pollution emanating from the well.

With respect to well work contracted to us, the customer is typically contractually responsible for pollution emanating from the well.

We separately maintain additional coverage for an amount up to $100 million that would cover us under certain circumstances against any such third-party claims associated with well control events.

We incur workers’ compensation, MEL and other insurance claims in the normal course of business.

We analyze each claim for potential exposure and estimate the ultimate liability of each claim.

We have not incurred any significant losses as a result of claims denied by our insurance carriers.

Our services are provided in hazardous environments where accidents involving catastrophic damage or loss of life could occur, and litigation arising from such an event may result in our being named a defendant in lawsuits asserting large claims.

We receive workers’ compensation, MEL and other insurance claims in the normal course of business.

We analyze each claim for its validity, potential exposure and estimated ultimate liability.

Our services are provided in hazardous environments where events involving catastrophic damage or loss of life could occur, and claims arising from such an event may result in our being named as a responsible party.

Although there can be no assurance the amount of insurance we carry is sufficient to protect us fully in all events, or that such insurance will continue to be available at current levels of cost or coverage, we believe that our insurance protection is adequate for our business operations.

As of December 31, 2019 , we had 1,650 employees.

Of our total employees, we had 378 non-U.S.

employees covered by collective bargaining agreements or similar arrangements.

We consider our overall relationships with our employees to be satisfactory.

WEBSITE AND OTHER AVAILABLE INFORMATION

We maintain a website on the Internet with the address of www.HelixESG.com .

Copies of this Annual Report for the year ended December 31, 2019 , previous and subsequent copies of our Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K, and any amendments thereto, are or will be available free of charge at our website as soon as reasonably practicable after they are filed with, or furnished to, the SEC.

Copies of this Annual Report for the year ended December 31, 2020, previous and subsequent copies of our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and any amendments thereto, are or will be available free of charge at our website as soon as reasonably practicable after they are filed with, or furnished to, the SEC.

In addition, the “Investors” section of our website contains copies of our Code of Business Conduct and Ethics and our Code of Ethics for Chief Executive Officer and Senior Financial Officers.

18 unchanged sentences

Dynamic Positioning (DP):

Computer directed thruster systems that use satellite-based positioning and other positioning technologies to ensure the proper counteraction to wind, current and wave forces enabling a vessel to maintain its position without the use of anchors.

Computer directed thruster systems that use satellite-based positioning and other positioning technologies to provide the proper counteraction to wind, current and wave forces enabling a vessel to maintain its position without the use of anchors.

Two DP systems on a single vessel providing the redundancy that allows the vessel to maintain position even in the absence of one DP system.

5 unchanged sentences

An IRS can be utilized for wireline intervention, production logging, coiled-tubing operations, well stimulation, and full plug and abandonment operations, and provides well control in order to safely access the well bore for these activities.

Life of field services:

Services performed on offshore facilities, trees and pipelines from the beginning to the end of the economic life of an oil field, including installation, inspection, maintenance, repair, well intervention and abandonment.

Plug and Abandonment (P&A):

P&A operations usually consist of placing several cement plugs in the wellbore to isolate the reservoir and other fluid-bearing formations when a well reaches the end of its lifetime.

Pound per square inch (p.s.i.):

A unit of measurement for pressure or stress resulting from a force of one pound-force applied to an area of one square inch.

Quality, Health, Safety and Environmental programs designed to protect the environment, safeguard employee health and avoid injuries.

11 unchanged sentences

Subsea Intervention Lubricator (SIL):

A riserless system designed to facilitate access to subsea wells from a monohull vessel to provide safe, efficient and cost effective riserless well intervention and abandonment solutions.

A SIL can be utilized for wireline, logging, light perforating, zone isolation, plug setting and removal, and decommissioning, and provides access to the well bore while providing well control safety for activities that do not require a riser conduit.

A riserless subsea system designed to provide access to the well bore while providing well control safety for activities that do not require a riser conduit.

A SIL can be utilized for wireline, logging, light perforating, zone isolation, plug setting and removal, and decommissioning, and it facilitates access to subsea wells from a monohull vessel to provide safe, efficient and cost effective riserless well intervention and abandonment solutions.

Trencher or trencher system:

1 unchanged sentence

Well intervention services :

Activities related to well maintenance and production management/enhancement services.

Activities related to well maintenance and production management and enhancement services.

Our well intervention operations include the utilization of slickline and electric line services, pumping services, specialized tooling and coiled tubing services.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business