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.
 


People & Company News

STX to Slash Jobs, Sell Yard

To stat above water by restructuring, South Korean Shipbuilder STX Offshore & Shipbuilding Co. plans to lay off about a third of its workforce and sell a yard in France, says a report in WSJ.

Kongsberg Performs Well in Q2

Norwegian defence and marine technology company Kongsberg Gruppen's second quarter 2016 (Q2) financial results shows sales performance broadly in line with recent trends,

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies

Contracts

BP, ExxonMobil, ConocoPhillips 'Quit' Alaska LNG Project

BP, Conoco Phillips, and Exxon Mobil said that the 65-billion dollar megaproject would be too unprofitable for them to move into the next phase of development.

C-Job Designs Flettner Freighter for Switijnk

The Dutch shipping company family Switijnk has contracted C-Job Naval Architects to develop a Rotor Sail-equipped design to meet their specific loading and sailing profile.

Yangzijiang Shipbuilding to Slash 2,000 More Jobs

Chinese shipbuilder Yangzijiang Shipbuilding Holdings Ltd said it plans to cut 2,000 additional jobs, just under 10 percent of its current workforce, stepping up

Offshore

STX to Slash Jobs, Sell Yard

To stat above water by restructuring, South Korean Shipbuilder STX Offshore & Shipbuilding Co. plans to lay off about a third of its workforce and sell a yard in France, says a report in WSJ.

Onshore Spending on the Cusp of Recovery?

DW’s recently released quarterly World Oilfield Services Market Forecast (OFS) and World Oilfield Equipment Market Forecast (OFE) continue to suggest 2016 will

US Offshore Lease Sale Yields $18 Mln in High Bids

Today’s U.S. oil and gas Lease Sale 248 garnered $18,067,020 in high bids for 24 tracts covering 138,240 acres in the Western Gulf of Mexico Planning Area, announced

Ports

Indian Warships Visit Port Victoria

In a demonstration of India’s commitment to its ties with Seychelles and maritime security in the Indian Ocean Region, Indian Naval Ships Kolkata, Trikand and

Vitol's Malaysia Terminal Suspends Ops after Spill

VTTI, the storage unit of world's largest oil trader Vitol, has suspended operations at its terminal in southern Malaysia following an oil spill, two industry sources said on Friday.

Shenzhen Port to Adopt China ECA Regulation

China's Shenzhen port is set to to adopt requirements for ships at berth requiring to burn marine fuel with sulfur content not exceeding 0.5 percent starting October this year,

Finance

SOS from Hanjin Shipping

The creditors' extended help is crucial for survival of Hanjin Shipping Co as its negotiations with owners of chartered ships over a cut in leasing rates and to

NParks, Keppel in S$2.08 mln Partnership for Restoring Singapore Forest Wetlands

The National Parks Board (NParks) and Keppel Corporation today unveiled plans for a partnership to restore the freshwater forest wetland ecosystem historically

Skaugen Goes to Red Again

Norwegian Marine Transportation Service Company I.M. Skaugen SE reported interim losses but cautiously positive and expecting a gradual recovery of trading opportunities

Energy

Keppel to Deliver First North Sea FPSO

Keppel Offshore & Marine (Keppel O&M)'s wholly-owned subsidiary Keppel Shipyard Ltd (Keppel Shipyard) is on track to deliver a Floating Production Storage and Offloading

BP, ExxonMobil, ConocoPhillips 'Quit' Alaska LNG Project

BP, Conoco Phillips, and Exxon Mobil said that the 65-billion dollar megaproject would be too unprofitable for them to move into the next phase of development.

ABS Makes it Safer to ‘Walk to Work’

ABS announced the publication of The ABS Guide for Certification of Offshore Access Gangways. The new Guide addresses certification for safety systems used for “walk to work” (W2W) crew transfers.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Ship Repair 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: 0.1471 sec (7 req/sec)