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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter January 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Hempel Coatings for Lemissoler Newbuilds

Global shipmanagement company, Lemissoler Navigation, via its affiliated and managed company Frontmarine Co. Ltd, has coated four of its eight newbuild 58,500 dwt

‘Choice Alliance’ Formed to Serve BWT Market

A strategic alliance between Choice Ballast Solutions and Drew Marine has been formed to provide vertically integrated capabilities within the ballast water treatment (BWT) market.

JFD Wins Lifeboat Design Contract for Flash Tekk

JFD, part of James Fisher and Sons plc, announced that it has won a contract with Singaporean company Flash Tekk Engineering for the design and manufacture of up

Offshore

JFD Wins Lifeboat Design Contract for Flash Tekk

JFD, part of James Fisher and Sons plc, announced that it has won a contract with Singaporean company Flash Tekk Engineering for the design and manufacture of up

Wärtsilä's' BWMS for New Crane Ship Design

A new crane ship designed by Netherlands based Royal IHC, a global leader in offshore, dredging and mining vessels, will feature the Wärtsilä Aquarius UV Ballast Water Management System (BWMS).

Wood Group Extends North Sea Chevron Contract

Wood Group has secured an extension to continue to support Chevron Upstream Europe across four offshore assets in the North Sea. Wood Group PSN (WGPSN) will deliver

Finance

Grounded Giant Chinese Boxship Freed

One of the world's largest container ships has been freed from a mud bank after running aground almost a week ago near Germany's largest port of Hamburg, German authorities said on Tuesday.

Hempel’s Dynamic Brings Saving for Lemissoler

Global shipmanagement company, Lemissoler Navigation, via its affiliated and managed company Frontmarine Co. Ltd, has achieved significant fuel savings from coating its newbuild 58,

QP, Chevron Ink Offshore Moroccan Deal

Qatar Petroleum has reached an agreement with Chevron Morocco Exploration Ltd., a subsidiary of Chevron Corporation, to acquire a 30% participating interest from

Energy

Wood Group Extends North Sea Chevron Contract

Wood Group has secured an extension to continue to support Chevron Upstream Europe across four offshore assets in the North Sea. Wood Group PSN (WGPSN) will deliver

QP, Chevron Ink Offshore Moroccan Deal

Qatar Petroleum has reached an agreement with Chevron Morocco Exploration Ltd., a subsidiary of Chevron Corporation, to acquire a 30% participating interest from

IOCs Stress on OSV Fuel Management Performance

Growing insistence by international oil companies (IOCs) that oilfield contract vessels (OSVs) are fitted with fuel monitoring systems has prompted an upsurge in

Vessels

Saudi Arabia, Bahrain Ban Iranian Ships From Ports

Saudi Arabia and Bahrain have banned Iranian-flagged vessels from entering their waters and imposed other shipping restrictions, according to ship insurers citing local reports,

Cummins Connected Diagnostics Available with Geoteab

Geotab, a telematics engineering company, and Cummins Inc., an  independent manufacturer of diesel and natural gas engines, controls and emission solutions, has

Hempel Coatings for Lemissoler Newbuilds

Global shipmanagement company, Lemissoler Navigation, via its affiliated and managed company Frontmarine Co. Ltd, has coated four of its eight newbuild 58,500 dwt

Offshore Energy

Wood Group Extends North Sea Chevron Contract

Wood Group has secured an extension to continue to support Chevron Upstream Europe across four offshore assets in the North Sea. Wood Group PSN (WGPSN) will deliver

QP, Chevron Ink Offshore Moroccan Deal

Qatar Petroleum has reached an agreement with Chevron Morocco Exploration Ltd., a subsidiary of Chevron Corporation, to acquire a 30% participating interest from

China's LNG Demand Falls

China's import of  liquefied natural gas (LNG) fell 1.1% in 2015, marking the first year-on-year decline since imports began in 2006, according to a report by

 
 
Maritime Security Navigation Offshore Oil Pipelines Pod Propulsion Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | 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: 0.1069 sec (9 req/sec)