Norway’s Akastor ASA oil service investment company signed an agreement with Japan’s Mitsui & Co. Ltd. to acquire the Skandi Santos hull from DOF Subsea Rederi AS and the Skandi Santos topside from AKOFS Offshore AS through a joint venture with 50:50 ownership.
Mitsui & Co. will be working with its Japanese partner.
The JV will subsequently enter into a lease agreement with AKOFS corresponding to the remaining contract duration between AKOFS and Petrobras. DOF Subsea will continue providing ROV and marine services onboard the vessel as part of the subsea equipment support vessel contract with Petrobras.
The agreement is subject to Petrobras’ consent, bank approvals and certain other conditions, which are expected to occur during the fourth quarter of 2016.
Arctic Securities is the financial adviser and BA-HR law firm is the legal adviser.
When the transaction closes, AKOFS will gain US$66 million net of investments in the JV.
The annual bareboat charter and related costs will increase by US$8.5 million per year over the remaining contract period. The contract with Petrobras for the operations in Brazil will remain in a fully owned subsidiary of AKOFS.
The transaction will result in an accounting gain of about US$19 million for Akastor, corresponding to half of the total sales gain of US$38 million. The accounting gain is expected to be booked at closing in fourth-quarter 2016.
Recommended Reading
CNX, Appalachia Peers Defer Completions as NatGas Prices Languish
2024-04-25 - Henry Hub blues: CNX Resources and other Appalachia producers are slashing production and deferring well completions as natural gas spot prices hover near record lows.
Chevron’s Tengiz Oil Field Operations Start Up in Kazakhstan
2024-04-25 - The final phase of Chevron’s project will produce about 260,000 bbl/d.
Rhino Taps Halliburton for Namibia Well Work
2024-04-24 - Halliburton’s deepwater integrated multi-well construction contract for a block in the Orange Basin starts later this year.
Halliburton’s Low-key M&A Strategy Remains Unchanged
2024-04-23 - Halliburton CEO Jeff Miller says expected organic growth generates more shareholder value than following consolidation trends, such as chief rival SLB’s plans to buy ChampionX.
Deepwater Roundup 2024: Americas
2024-04-23 - The final part of Hart Energy E&P’s Deepwater Roundup focuses on projects coming online in the Americas from 2023 until the end of the decade.