Governor McDonnell Oceaneering International to Invest and Expand in City of Chesapeake

RICHMOND - Governor Bob McDonnell today announced that Oceaneering International, Inc. (NYSE:OII), a global oilfield provider of engineered services and products primarily to the offshore oil and gas industry, with a focus on deepwater applications, will expand its presence into the City of Chesapeake. The company will consolidate its engineering, manufacturing, and administrative functions at a new, 150,000-square-foot facility to be developed by Armada Hoffler Properties, which will invest approximately $25 million to accommodate this expansion. Serten Advisors, LLC served as real estate consultant for Oceaneering International in the transaction. The current primary customers served by Oceaneering’s Marine Services Division (MSD) are the U.S. Navy and the maritime industry. Virginia successfully competed against North Carolina for the project, which will create approximately 70 new jobs and retain more than 460 jobs.

Speaking about today’s announcement, Governor McDonnell said, “Oceaneering International has maintained an engineering/ship repair location in the City of Chesapeake for 13 years. With this tremendous investment the company expands to a new site that will serve its existing and future operations, as well as consolidated engineering, manufacturing, and administrative functions, including a multi-trade apprenticeship program. Oceaneering is a major employer in Chesapeake, and with this project will create new jobs that exceed the annual prevailing wage in the region, and create new capabilities that support projected customer needs and its current highly skilled workforce. This expansion is a great win for Virginia and Hampton Roads.”

“The City of Chesapeake is a prime location for a company like Oceaneering International that performs vital functions for the U.S. Navy and maritime industry,” said Jim Cheng, Virginia Secretary of Commerce and Trade. “Oceaneering will continue to benefit from a trained, available workforce in the region and a strategic location with critical access to the ocean and the Port of Virginia. This significant project represents future growth, longevity, and continued success in Virginia.”

Founded in 1964, Oceaneering has grown from a diving business in the Gulf of Mexico to a diversified, advanced applied technology organization operating around the world. This has been accomplished by executing a plan of organic investments augmented by strategic acquisitions. Through its Advanced Technologies business, Oceaneering serves the defense and aerospace industries, serving the U.S. Navy as a primary customer for over 30 years. The Marine Services Division in Chesapeake focuses on submarines, deep submergence systems, and air cushion landing craft and is certified by the U.S. Navy as a Submarine Safety (SUBSAFE) activity. They support Navy operations around the world out of the Chesapeake office.

“Selecting Hampton Roads in Virginia for our new MSD location perfectly aligns our five year goals to become both the Employer and Contractor of Choice in our market segment,” said Wayne Jakubowski, Oceaneering Vice President and General Manager. “This location provides ideal convenience to our current, very capable employee base, in which we have already invested significant training, as well as proximity to key customers and shipyards. Oceaneering MSD continues to foster the strategic partnership with local and state government developed over 13 years at our current location in Chesapeake. This location is truly an enabler for continuing our support for the growing demands of our customers.”

The Virginia Economic Development Partnership worked with the City of Chesapeake Department of Economic Development to secure the project for Virginia. Governor McDonnell approved a $750,000 grant from the Governor’s Opportunity Fund to assist the City of Chesapeake with the project. The Governor also approved a $750,000 performance-based grant from the Virginia Investment Partnership program, an incentive available to existing Virginia companies. The company qualifies for industrial road access funding from the Virginia Department of Transportation. Through its Virginia Jobs Investment Program, the Virginia Department of Business Assistance will provide funding and services to support the company’s recruitment and training activities.

“Hampton Roads is a place where companies can grow and prosper, and Chesapeake is at the center of it,” said Mayor Alan P. Krasnoff. “Keeping Oceaneering International and its 400-member workforce in Chesapeake is a competitive win for us, and we are grateful for the opportunity to contribute to their success.”