Songa Offshore expects to secure financing for remaining rigs

Joseph Keefe
Tuesday, April 08, 2014

Norwegian oil driller Songa Offshore is confident it can raise the debt it needs in order to pay for the last two rig newbuilds it has ordered, Chief Executive Bjoernar Iversen told Reuters on Tuesday.

The two units have a combined price of just over $1.3 billion and will be used by oil major Statoil. In total, Songa has four new rigs under construction, of which the first two have secured financing.

"As we have said earlier we have financing in place on the first two rigs for Statoil and there is good appetite for the next two," Iversen said. "We have been at the yard in Korea, we have gone through the rigs, and the delivery plans looks good."

The Cat D rigs, tailor made to fit Statoil's needs, each have eight-year contracts plus additional options of up to 12 years. The first two units are due to be delivered in late 2014, while the last ones are due in the second quarter of 2015.

Songa Offshore raised $425 million in fresh equity and debt at the end of last year and has renegotiated terms with Statoil to secure higher daily rig rates than originally planned.

"We expect financing to go smoothly for the next two rigs because of the rate lift we were given," Iversen said.

As part of the plan, Songa will sell two rigs currently operating in Asia, leaving it with three rigs on long term contracts in the North Sea, plus the four that are under construction.

"I've indicated we should be able to announce a sale by the end of the second quarter," Iversen said.

 

Reporting by Ole Petter Skonnord

Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Star Bulk Takes Delivery of First Capesize from JMU

Athens, Greece-headquartered Star Bulk Carriers says it has taken delivery of 'M/V Peloreus' a 182,000 dwt Capesize built by Japan Marine United (“JMU”) and the

Ardmore Shipping Secures Newbuilding Finance

Ardmore Shipping Corporation says it has signed agreements to upsize its existing senior loan facility with ABN AMRO Bank N.V., Nordea Bank Finland Plc, and Skandinaviska Enskilda Banken AB ("SEB").

Crowley Christens New DP2 Tugboat

Crowley Maritime Corp. said that the third of four tugboats in the Ocean-class series, Ocean Sky, has been christened in Houston. The ceremony served to formally

Offshore

Gulf Island Fab Sign Bechtel Offshore Cooperation Agreement

Gulf Island Fabrication, Inc. says it has signed a cooperative agreement with Bechtel Oil, Gas, and Chemicals, Inc. to work together to pursue opportunities for offshore projects for the U.

Farstad Offshore Vessel Squadron Chartered Out

Farstad Shipping ASA reports the following charter contracts, with a total value (including options) of approximately NOK 1.75-billion, as follows: Inpex has awarded

6 MW Offshore Wind Turbine of Siemens Certified

Siemens Energy has obtained type certification of DNV GL for the company's innovative D6 offshore wind turbine. The model Siemens SWT-6.0-154 is equipped with a modern direct drive generator,

Finance

Asia VLCC Rates Could Nudge Higher on Activity

Rates for very large crude carriers (VLCCs) on key Asian freight routes could hold steady or gain next week as charterers seek to complete their vessel chartering

Star Bulk Takes Delivery of First Capesize from JMU

Athens, Greece-headquartered Star Bulk Carriers says it has taken delivery of 'M/V Peloreus' a 182,000 dwt Capesize built by Japan Marine United (“JMU”) and the

Ardmore Shipping Secures Newbuilding Finance

Ardmore Shipping Corporation says it has signed agreements to upsize its existing senior loan facility with ABN AMRO Bank N.V., Nordea Bank Finland Plc, and Skandinaviska Enskilda Banken AB ("SEB").

Energy

Asia VLCC Rates Could Nudge Higher on Activity

Rates for very large crude carriers (VLCCs) on key Asian freight routes could hold steady or gain next week as charterers seek to complete their vessel chartering

Turkey Approves EIA Report for South Stream’s Offshore Section

The Ministry of Environment and Urban Planning of Turkey approved the Environmental Impact Assessment (EIA) Report and issued a positive opinion of the EIA results

Iain Conn to Leave BP

BP today announced that Iain Conn, Group Managing Director and Chief Executive, Downstream, is leaving the company and is to step down from BP’s board by the end of the year.

Vessels

Farstad Offshore Vessel Squadron Chartered Out

Farstad Shipping ASA reports the following charter contracts, with a total value (including options) of approximately NOK 1.75-billion, as follows: Inpex has awarded

Better Operational News from Fugro

Fugro says that (an as yet unidentified vessel) recently affected by a fire is back in operation. The total time out of operation amounted to seven weeks. Secondly,

QinetiQ Signs Contract with ASV

QinetiQ, as part of a new Marine Surface Target Service, has signed a contract with Autonomous Surface Vehicles (ASV) for the supply and operational support of autonomous surface target vessels.

Offshore Energy

Gulf Island Fab Sign Bechtel Offshore Cooperation Agreement

Gulf Island Fabrication, Inc. says it has signed a cooperative agreement with Bechtel Oil, Gas, and Chemicals, Inc. to work together to pursue opportunities for offshore projects for the U.

UK Chancellor Mentions Hi-Tech Tax Breaks on Bibby Offshore Visit

Bibby Offshore, subsea services provider to the oil & gas industry, says it has hosted a visit by George Osborne, Chancellor of the Exchequer, to the Company’s workshop,

Farstad Offshore Vessel Squadron Chartered Out

Farstad Shipping ASA reports the following charter contracts, with a total value (including options) of approximately NOK 1.75-billion, as follows: Inpex has awarded

 
 
Maritime Security Maritime Standards Navigation Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1268 sec (8 req/sec)