Tidewater Provides Update on Sonatide Joint Venture

press release
Monday, March 12, 2012

Tidewater Inc. announced today the following update with respect to its negotiations with Sonangol, the national oil company of Angola, regarding Sonatide, the joint venture between Sonangol and Tidewater through which Tidewater markets its boat services to energy companies for operation in the waters offshore Angola. Tidewater has a 49% ownership interest in Sonatide.

 
The Company has previously announced that its Sonatide joint venture agreement with Sonangol expires on March 31, 2012. The Company has from time to time provided updates regarding the status of its continuing negotiations with Sonangol to put its Sonatide joint venture on a more permanent footing after a number of temporary extensions of the original joint venture agreement. In February 2012, members of Tidewater’s senior management group met in Angola with their counterparts from Sonangol to make further progress in the negotiations. In the course of negotiations, Sonangol introduced additional or modified contract expectations. Tidewater responded to these expectations by presenting a revised proposal that is under consideration by Sonangol. Recently, however, Sonangol advised that it may not be in a position to provide its response to Tidewater’s revised proposal until late March. At the same time,

Sonangol advised Tidewater that it would not consider further vessel contracting activity by Sonatide until the joint venture negotiations have been resolved to the parties’ mutual satisfaction. The effect of this development is that, at least for the time being, Sonatide will not be able to pursue new charters or charter extensions with customers in the Angolan market.
 

The Company has no information as to whether Sonangol will provide a response that will allow for the continuation of fruitful negotiations between the parties. Given these unexpected developments, the Company has begun the process of evaluating the potential movement of its vessels currently dedicated to work in Angola to other markets, where there is strong demand for Tidewater’s vessels and services. While there would be costs associated with any such redeployment, Tidewater believes that such a course is preferable to entering into a new joint venture agreement that would contain terms that would not be in the best interests of Tidewater and its stockholders. Further, the Company expects that, if necessary, Tidewater vessels operating in Angola could be transitioned to other markets over some reasonable period, particularly given that a number of Sonatide’s charterparty agreements with customers extend beyond March 31, 2012. In the meantime, the Company will continue to await further word from Sonangol in the hopes that it can still reach a mutually advantageous joint venture agreement that will continue the historical commercial relationship that has served Tidewater, Sonangol, and numerous other energy companies that operate offshore Angola extremely well for years.
 

Sonatide, utilizing both vessels owned by the joint venture and vessels chartered from Tidewater, is currently the largest operator of offshore support vessels in Angola. As previously disclosed, more Tidewater vessels are deployed in Angola and more revenue is derived from its operations in Angola than in or from any of Tidewater’s other countries of operation. For the three month period ended December 31, 2011, Tidewater’s Angolan operations generated approximately 23% of its consolidated vessel revenue. Tidewater Inc. owns 356 vessels, the world’s largest fleet of vessels serving the global offshore energy industry.
 

Maritime Reporter September 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

NYK Opens New Planning Center in Kumamoto

On September 1, 2014, NYK and Kozo Keikaku Engineering Inc. established a stowage planning center for container shipping at the Kumamoto office of Kozo Keikaku Engineering Inc.

TNO Receives 'International Media Award for Prevention'

The Engagementgame developed by TNO in collaboration with partners is the winner of the 'International Media Award for Prevention' in the category Multi Media.

More German Shipowners Look to Gibdock for Repairs

Gibdock remarks it has continued to see its stock rise amongst the German shipowner community over the past year. Indeed the Gibraltar ship repair yard’s recent

Contracts

New Superyacht ROCKIT.IT Launched by Feadship

Feadship says it has launched the outstanding 60.35-metre motoryacht ROCK.IT. Created for an experienced owner who has chartered Feadships and appreciated the essence of the brand,

FTA Approves WSF Ferry Terminal Plans

In the latest Washington State Ferries Weekly Update, Capt. George A. Capacci, Interim Assistant Secretary WSDOT/Ferries Division briefs as follows: "FTA approves

NZ Interislander Ferry to Dry-dock in Devonport

NewZealand's KiwiRail says that the Interislander ferry Arahura has left Wellington for her scheduled bi-annual dry-docking in Devonport, having last visited Auckland in July 2012.

Offshore

Drydocks World to Participate in SMM 2014

Drydocks World, the leading provider of maritime and offshore services to the shipping, oil, gas, and energy sectors, will participate in the prestigious 26th edition of Shipbuilding,

SBM Offshore Completes Real Estate Divestment

SBM Offshore is pleased to announce that is has completed the sale and lease back of its Monaco real estate portfolio.  The last of the three buildings was sold

Keppel T & T Appoints Lim Chin Leong to its Board

Keppel Telecommunications & Transportation Ltd (Keppel T&T) has strengthened its Board with the appointment of Mr Lim Chin Leong as an independent, non-executive

Ports

More German Shipowners Look to Gibdock for Repairs

Gibdock remarks it has continued to see its stock rise amongst the German shipowner community over the past year. Indeed the Gibraltar ship repair yard’s recent

No Sign of Ultra-Large Containership Mega Hubs: Analysis

Contrary to the views of some in the industry, Ultra Large Container Vessels are continuing to call at multiple North European ports per loop and are not concentrating on a mega-hub,

FTA Approves WSF Ferry Terminal Plans

In the latest Washington State Ferries Weekly Update, Capt. George A. Capacci, Interim Assistant Secretary WSDOT/Ferries Division briefs as follows: "FTA approves

Finance

A Boost for UK Offshore Drilling? DW Monday Muses

Drilling activity offshore UK is now expected to increase over the next few years as government and industry reacts to the recommendations in Sir Ian Wood’s report

MHI, IHI & DBJ Join Forces On Investments

Mitsubishi Heavy Industries, Ltd. (MHI), IHI Corporation and the Development Bank of Japan Inc. (DBJ) concluded a three-way formal agreement today on their respective

Clarksons PLC Perform Strongly in 1H 2014

Leading shipping services group, Clarksons PLC reports strong strong financial performance in the first half of 2014. Financial Results Clarksons increased revenues by 25% to £111.

Energy

ABB Celebrates 125th Anniversary in Finland

ABB is celebrating today its 125th anniversary in Finland. Founded in 1889 in Helsinki by entrepreneur and inventor Gottfrid Strömberg, ABB Finland is today

China's National Carbon Market to Start in 2016

China plans to roll out its national market for carbon permit trading in 2016, an official said Sunday, adding that the government is close to finalising rules

Fukushima Fallout: Resentment Grows

Like many of her neighbours, Satomi Inokoshi worries that her gritty hometown is being spoiled by the newcomers and the money that have rolled into Iwaki since

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Offshore Oil Pipelines Ship Repair Shipbuilding / Vessel Construction Sonar Winch
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: 0.1766 sec (6 req/sec)