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Saturday, January 20, 2018

Northern Offshore News

Northern Offshore Receives Major Industry Health and Safety Accolade

Northern Offshore, Ltd (“Northern Offshore”), operator of production and drilling vessels for the global offshore oil and gas industry, will be presented with a major safety accolade at the RoSPA Occupational Health and Safety Awards, later this year. The company’s Energy Enhancer – a jack up rig designed specifically for harsh environments like those found in the North Sea – has been recognised with a Gold award as a result of Northern Offshore’s commitment to striving for continuous improvement in HSE standards.

Northern Offshore acquired by Shandong Offshore

Pic: Northern Offshore Ltd

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.

Rig Accommodation Below Par for New Danish Requirements

'Energy Endeavour': Photo courtesy of Northern Offshore

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 Offshore Delays Deliveries for Two Jack-up Rigs

Energy Engager / Encounter: Northern Offshore Ltd

The Houston-based Rig player Northern Offshore has negotiated a nine month delay for the delivery of two high specification jack up rigs Energy Engager and Energy Encounter. It will push back the delivery of the Energy Engager and Energy Encounter from a shipyard in China. The Energy Engager will now be delivered in December 2016 and the Energy Encounter will be delivered in June 2017. Northern Offshore placed orders for the two LeTourneau Super 116E class jackups in October 2013, with the rigs are reportedly being built at COSCO Dalian shipyard in China.

Northern Offshore Contract in Azerbaijan

Northern Offshore, Ltd. (Oslo Bors: NOF.OL) announced that its subsidiary, Northern Offshore U.K. Ltd, was awarded a contract with Caspian Drilling Company Limited (CDC) for the provision of support services for drilling operations in the Caspian Sea. The contract runs to July 2011 and has an estimated value of approximately $21m, comprised of fees for technical and operational support in management of the Dada Gorgud semisubmersible drilling rig. Any direct costs incurred in providing the services will be reimbursed. CDC is a subsidiary of The State Oil Company of Azerbaijan Republic (SOCAR). The drilling operations will take place on acreage operated by BP, on behalf of a consortium consisting of BP, Chevron, SOCAR, INPEX, StatoilHydro, ExxonMobil, TPAO, Devon, ITOCHU and Hess.

Rosneft Cancels Rig Contract

Russian oil firm Rosneft has cancelled a contract for a two-and-a-half year rig contract with Northern Offshore and Seadrill's North Atlantic Drilling Ltd, the Norwegian offshore driller said. Western sanctions against Russia, and Rosneft in particular, have led the Russian oil group to cancel a North Atlantic Drilling vessel earlier this month and raised concerns whether a larger agreement would go through.. The contract, worth about $150 million, was for Northern Offshore's jack-up rig…

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…

Northern Offshore Jackup Energy Exerter Ops

Northern Offshore, Ltd. (Oslo Bors: NOF.OL) announced that its subsidiary, Northern Offshore U.K. Ltd., has completed its 120 day drilling contract offshore Greece utilizing the jackup rig Energy Exerter. The company said that the rig was under tow to a location offshore Malta where it would be cold stacked until drilling opportunities in the Mediterranean Sea improve. The drilling contract for the work offshore Greece included a requirement that the operator provide a letter of credit in Northern's favor in the amount of $4.6m, representing approximately five weeks of dayrate. The company said that it had drawn the full amount of the…

Offshore Drill Ships Start Work off Vietnam

Drill Ship 'Energy Searcher': Photo credit Northern Offshore

Northern Offshore, Ltd. semi-submersibles Energy Driller and drillship Energy Searcher have commenced operations off Vietnam coast. The Energy Searcher went on dayrate under the contract with the Joint Operating Company Vietgazprom, a joint venture between Petrovietnam and Gazprom, ("VGP") for their drilling program offshore Vietnam on April 6, 2012. The duration is for a four-well program expected to last approximately 100 days per well. The estimated contract value is approximately US$72 million.

Northern Offshore Discusses Financial Situation

The Board of Northern Offshore met on May 13th to discuss the company's financial situation. As stated in the company's fourth quarter report the company will need additional financing in order to meet its required short term principal and interest obligations. Total scheduled payments during the next three months include $ 7 million in U.S. Bond interest, $ 11 million in scheduled repayment of the Avalon debt financing, and $ 17 million in repayment of two different loans related to the Energy Searcher. A portion of the payment obligation under the Avalon loan and one of the Energy Searcher loans are already past due, but the Board has negotiated a short-term extension of these repayment obligations. The company currently has a cash position of approximately $ 4 million.

Northern Offshore Reports Third Quarter Results

this year, mainly due to EBITDA generated from the Energy Searcher of about $950,000 and higher production volume on Northern Producer. with year 2000. For the third quarter of 2001 the net loss was $2.5 million. Net loss for nine months this year was $2.3 million compared with a profit of $19.9 last year. In addition to the difference in EBITDA as described above, the main reason for the reduced profit refers to higher profit on repurchased Bonds in 2000, partly offset by adjustment of deferred taxes in connection with the change of domicile for the company.

Northern Offshore Wins Contract for Jackup Rig

John monks, Northern Offshore MD

Northern Offshore, Ltd., operator of production and drilling vessels for the global offshore oil and gas industry, won a contract from Maersk for the jackup Energy Enhancer. The contract, worth in excess of £20million will see the Energy Enhancer work in the Danish sector of the North Sea for one year, commencing early 2012. Maersk has options to extend the contract for up to three further years. John Monks, managing director of Northern Offshore Ltd, said: “We are very pleased…

Cosco Delays Delivery of Jack-up Rigs for Northern

Photo: COSCO Shipyard Group

Cosco (Dalian) Shipyard, subsidiary of Cosco Shipyard Group, has reached an agreement with Bermuda-based rig owner Northern Offshore to further delay the delivery dates of two jack-up drilling rigs amid challenging offshore drilling market. Dalian shipyard received an order for two LeTourneau Super 116E jack-up drilling rigs in November 2013 and the plan was to deliver the rigs in 1H2016 and 2H2016, respectively. According to the new agreement between the Chinese yard and Northern Offshore deliveries of the two rigs will also be deferred until further notice.

Energy Searcher Gets Offshore Nigeria Contract

Drillship Energy Searcher: Image courtesy of the owners

Northern Offshore subsidiary, Northern Offshore International Drilling Company says it has executed a long-term drilling contract with an affiliate of CAMAC Energy Inc. for its drillship 'Energy Searcher'. The contract commits to an initial period of one year, with an option to extend the contact for an additional one-year term. Commencement of drilling activities on the Oyo Field offshore Nigeria is expected during the first half of 2014. The contract value for the first one-year term is just under US$100 million, plus mobilization fees.

Northern Energy Update on Rig Employment

'Energy Searcher' Photo courtesy of Northern Energy

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…

Energy Searcher Drillship Resumes Ops

Northern Offshore Ltd., a Bermuda holding company which operates offshore oil and gas production and drilling vessels, said that the company's drillship Energy Searcher has resumed operations in under its drilling contract with Vietgazprom, according to a report on Trading Markets.com This follows repair work on the drillship, carried out in at an estimated cost of some $4.6m.  (Source: Trading Markets.com)  

Damen Delivers Twin Axe to Northern Offshore Services

Photo: Damen

Northern Offshore Services has taken delivery of its first Damen Twin Axe, just weeks after the order was placed in August. The 26-meter Fast Crew Supplier is already being deployed at an offshore wind farm in the North Sea. Crewboat operator Northern Offshore Services has offices in Sweden and Denmark and a fleet of nearly 20 vessels. The company specializes in the safe and reliable transport of personnel and equipment to the offshore (wind) industry and is a new customer for Damen. The new vessel is sailing under the Danish flag.

Energy Searcher to Undergo Repairs

Northern Offshore, Ltd. (Oslo Bors: NOF.OL) reported on May 5 that upon completion of the third well of a five-well drilling program for VietGazprom offshore Vietnam, the drillship Energy Searcher underwent an inspection that identified repairs needed to the ship's hull prior to the rig returning to drilling operations. The company intends to move the rig to Singapore to make the necessary repairs. Although preliminary and subject to further inspection in the shipyard, the company estimates downtime for the rig of at least six to eight weeks, including transit to and from the yard. Cost estimates will be prepared once the final scope of work has been defined.

Norway: We Must Prepare for Arctic Oil Race with Russia

© ggw / Adobe Stock

Norway must identify potential offshore oil and gas reserves near its northern maritime border with Russia to better protect its economic interest in the remote Arctic region, energy minister Terje Soeviknes said on Wednesday. The two countries agreed in 2010 to split previously disputed areas of the Barents Sea between them, allowing each to exploit resources hidden beneath the seabed. An increase in drilling activity on the Russian side of the border should lead Norway to push its own agenda, the minister said. "We need to start the discussion about what to do in the far north.

Blount Boats to Manufacture US-flagged Catamarans

Blount Boats, Inc. has been appointed by South Boats Special Projects, Ltd., based at Cowes on the Isle of Wight, England, to be the exclusive shipyard to manufacture U.S. flagged aluminum catamarans of South Boats designs for the U.S. wind farm industry. Blount Boats operates a shipyard in Warren, Rhode Island. South Boats is recognized as a pioneer in designing and manufacturing wind farm service vessels. Their shipyard has built 45 vessels in five classes, from 15M – 30 meters, representing a 50% market share in European wind farms that are serviced by 13 operators, including Turbine Transfers Ltd. (Holyhead Towing Company), Iceni Marine Services Ltd., Northern Offshore Services AB, MPI Workboats, Ltd. (Vroon Group BV), Maritime Craft Services and MTS Group.

IADC Presents Sea Safety Awards

IADC Safety Award winner 2014

The International Association of Drilling Contractors (IADC), North Sea Chapter once again recognized the very best in safety performance at its annual Safety Awards Ceremony held in Aberdeen. Julian Hall of Ensco, North Sea Chapter Chairman, said that it was important to recognize the contributions of individuals, teams and companies to the continuing safety of the industry. “It has not been an easy year, with safety dominated by understandable concerns regarding helicpter reliability.

Oslo Sees Comeback For Maritime Stocks

The All Share Index in Oslo was up 3.8 percent in May, and shipping and offshore stocks were leading the way as the Shipping Index surged 13.9 percent during the month. All but three of the offshore stocks listed on the OSE experienced positive share price movements in the period. Northern Offshore (NOF), announcing strong results for first quarter, was up all of 50 percent. Nortrans Offshore (NOL), Navis (NIS), Stolt Comex Seaway (SCS) and Smedvig (SME/SMEB) were all up between 33 and 20 percent. Polar Holding (POL) fell 26 percent in May as District Offshore (DOF) failed in it's attempt to acquire the company. Brøvig Offshore was down 17 percent, while DOF fell 3 percent. The two cruise operators both experienced a positive share price development in May.

Oslo Sees Comeback For Maritime Stocks

The All Share Index in Oslo was up 3.8 percent in May, and shipping and offshore stocks were leading the way as the Shipping Index surged 13.9 percent during the month. All but three of the offshore stocks listed on the OSE experienced positive share price movements in the period. Northern Offshore (NOF), announcing strong results for first quarter, was up all of 50 percent. Nortrans Offshore (NOL), Navis (NIS), Stolt Comex Seaway (SCS) and Smedvig (SME/SMEB) were all up between 33 and 20 percent. Polar Holding (POL) fell 26 percent in May as District Offshore (DOF) failed in it's attempt to acquire the company. Brøvig Offshore was down 17 percent, while DOF fell 3 percent. The two cruise operators both experienced a positive share price development in May.

Maritime Reporter Magazine Cover Dec 2017 - The Great Ships of 2017

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