Northern Offshore acquired by Shandong Offshore
Offshore oil and gas drilling firm Northern Offshore Ltd. has reached agreement on the terms of a recommended $165m cash acquisition by Shandong Offshore International Company Limited. The NOK7.59 per share offer by Shandong has been unanimously recommended by the board of directors of NOF and undertakings to accept the offer have been received by approximately 65% of NOF’s shareholders, including Fredriksen’s Geveran Trading. The acquisition price values Northern Offshore's issued share capital at approximately NOK 1.3 billion. The acquisition is expected to become effective during the first half of August 2015. The takeover will see NOF merged with Shandong International Offshore subsidiary Blue Ocean Drilling with, the acquisition expected to become effective the first half of August.
China Yard's Pricing Nets a Double Offshore Rig Order
Northern Offshore, Ltd. subsidiaries have executed contracts for the construction of two LeTourneau Super 116E Class jackup drilling rigs, with a priced option for the construction of two additional rigs of the same design. Northern Offshore say that the yard contract price is less than US$180 million, with favorable tail-end-heavy payment terms. Delivery of the rigs is expected during the first and third quarters of 2016, respectively. Construction will be carried out by an experienced and well qualified [un-named] Chinese shipyard. Gary W. Casswell, president and chief executive officer of Northern Offshore said, "This is a turning point for our company…
Rig Accommodation Below Par for New Danish Requirements
Northern Offshore receives Maersk Oil & Gas notification that rig 'Energy Endeavour' will be released from contract on May 1, 2013. The rig's accommodation unit does not meet new Danish Energy Authority requirements and its replacement is not commercially viable for either party. Gary W. Casswell, Northern Offshore's president and CEO, said, "We sincerely appreciate that Maersk have given us very early notice of release of the Energy Endeavour, as it will allow us approximately six months to re-contract the rig in a very tight market.
Northern Energy Update on Rig Employment
Norway's Northern Offshore, Ltd announce that the last two wells of a 4-well program will not be drilled at the present time. The Joint Operating Company Vietgazprom, a joint venture between Petrovietnam and Gazprom, ("VGP") has given notice that the last two wells will not be drilled at present. The second and final well under the current contract is expected to be completed by late September 2012. However, the Company and VGP are currently in discussion to formally suspend the contract to allow for the drilling of the two remaining wells during 2013…
