Songa Offshore News

Switzerland-based offshore driller Transocean Ltd. announced Wednesday that it has completed the acquisition of Greek peer Ocean Rig UDW Inc.The $2.7 billion cash-and-stock deal adds nine high-specification ultra-deepwater drillships, two harsh environment semisubmersibles, and two high-specification ultra-deepwater drillships currently under construction to Transocean's existing fleet."We are excited to begin actively marketing these assets into the growing list of opportunities we continue to see emerging across our global customer base…

Offshore oil driller Transocean Ltd said on Tuesday it would buy peer Ocean Rig UDW Inc in a $2.7 billion cash-and-stock deal, its second major acquisition this year as the company bets on a recovery in the offshore sector.The acquisition signals new optimism for offshore drillers, which were hit hard by the steep plunge in oil prices from 2014. Offshore projects, which are more costly than onshore work and take years to develop, became less attractive after oil prices fell to below $30 a barrel in 2016.Global crude prices have since recovered to above $70, renewing producer interest in offshore basins around the world, including Brazil and the U.S.

Teekay Offshore GP LLC, the general partner of Teekay Offshore Partners L.P., announced today that Jan Rune Steinsland has been appointed the new Chief Financial Officer (CFO) of Teekay Offshore Group Ltd., a management services company that provides services to the Partnership’s subsidiaries (together with the Partnership, the Teekay Offshore Group) effective September 3, 2018. The Partnership’s interim CFO, Tim Cowan, will step down effective September 3, 2018, but will remain with the Partnership for a period of time to ensure a smooth transition.Steinsland brings approximately 30 years of energy and offshore industry experience, including most recently serving as CFO of drilling contractor Songa Offshore SE…

Hundreds of workers on Norwegian offshore oil and gas rigs went on strike on Tuesday after rejecting a proposed wage deal, leading to the shutdown of one Shell-operated field and helping send Brent crude prices higher.One union said hundreds more workers would join the strike on Sunday if an agreement over union demands for a wage increase and pension rights was not reached.Royal Dutch Shell said that due to the strike it was temporarily closing production at its Knarr field, which has a daily output of 23…

Michael Mannering has been nominated to succeed Polarcus’ outgoing chairman of the board, Peter Rigg, with effect from the 2018 AGM on May 10.Rigg will retire after a decade as chairman of the marine geophysical company, having served in the role since the company’s inception in 2008.Mannering has previously held many senior corporate positions in Schlumberger as well as chairman and, subsequently, non-executive director of Songa Offshore until its acquisition by Transocean. He has a BSc (First Class) in Mechanical Engineering from the University of Southampton.

Transocean Ltd. announced today that it completed the previously announced compulsory acquisition of the remaining outstanding shares of Songa Offshore SE.   All remaining shares in Songa Offshore were transferred to Transocean in accordance with the terms and conditions of the compulsory acquisition.    Transocean then settled the compulsory acquisition by delivering Consideration Shares, Exchangeable Bonds and cash consideration, as applicable, to Songa Offshore shareholders. Songa Offshore’s shares remained listed on the Oslo Stock Exchange through March 28, 2018.

Bjørnar Iversen, CEO of Songa Offshore SE, has resigned effective 6 March 2018 said a single sentence press statement from the company. This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act, said the statement. Before joining the company in June 2013, Iversen was a member of the executive leadership team at Odfjell Drilling AS. During his 17 year's tenure at Odfjell Drilling, he has been executive vice president for Corporate Business Development, Odfjell Drilling Technology and Odfjell Well Services. His latest position was President and CEO of Odfjell Galvao Ltda in Brazil.

Demand for offshore rig rental globally is starting to recover from its worst ever downturn, led by oil firms' growing demand for harsh-environment exploration and triggering multi-billion dollar tie-ups among drillers hoping to profit, executives said. While the 2014-2016 oil price crash caused firms to cut exploration budgets, ending a boom in rig demand and bankrupting many owners, energy companies are now seeking to replenish their hydrocarbon reserves. The nascent demand for harsh-environment rigs…

About 77 pct of Songa shareholders have so far accepted deal. Transocean, one of the world's biggest drilling rig operators, has agreed a deal to buy Norwegian competitor Songa Offshore for 9.1 billion Norwegian crowns ($1.1 bln), the two companies said on Tuesday. The deal, which would be mostly paid for in shares and convertible bonds, would strengthen Transocean's position in offshore drilling as Songa is Norwegian oil major Statoil's largest drilling service provider. The offer values Songa shares at 47.50 Norwegian crowns each, a 39.7 percent premium over Monday's closing price. Shares in Songa surged 31 percent on news of the deal, which needs the backing of at least 90 percent of Songa shareholders. So far about 77 percent of shareholders have agreed to the offer, the company said.

Songa Offshore had submitted its defence to the claims asserted by Daewoo Shipbuilding & Marine Engineering (DSME) in arbitrations related to the Songa Equinox, the first Cat D rig, and the Songa Endurance, the second Cat D rig, in which DSME asserted aggregate claims of USD 329 million, along with a request for repayment of liquidated damages in a total amount of USD 43.8 million, totalling to USD 372.8 million. The claims asserted related to alleged cost overruns and additional work in relation to the Rigs due to what DSME alleges were inherent errors and omissions in the design documents (as often referred to as the FEED package).

Environmental activists protested on Friday near an offshore rig contracted by Statoil in the remote Norwegian Arctic, where the firm is looking for oil and gas deposits. The Nordic country wants to open up northern areas for exploration to offset declining production in the south. Oil and gas production is Norway's leading industry, accounting for 20 percent of its economy. From the Greenpeace Arctic Sunrise ship, 11 campaigners launched inflatable boats carrying banners opposing Statoil's Songa Enabler oil rig, 275 km (170 miles) north of the Norwegian coast, in the Arctic Barents sea. One of the banners read "“The People Vs. Arctic Oil”.

Norway's Statoil on Monday played down concerns that drilling in the Arctic is risky, days before it kickstarts its drilling campaign in the Barents Sea, where the country believes around half of its remaining resources could be located. "We will start drilling the first well, Blaamann, during May ... followed by Kayak, Gemini (Nord), Korpfjell and Koigen (Central)," said a Statoil spokesman, adding each might take about a month to drill. All the wells are in areas free of sea ice thanks to the warm Gulf Stream…

The technology group Wärtsilä has signed a five-year technical management and services agreement with Songa Offshore for four Cat-D type semi-submersible drilling rigs operating in the North Sea. Through the partnership with Wärtsilä, Songa Offshore ensures optimal performance and maximum availability of the Wärtsilä engines and thrusters on board the drilling rigs, which operate in extremely harsh conditions. This is possible with real-time knowledge of the actual condition of the equipment, provided by Wärtsilä's digital offering.

Rig firm Songa Offshore's CEO Bjoernar Iversen expects the company's arbitration case with DSME (Daewoo Shipbuilding & Marine Engineering) to last throughout 2017 and into 2018.   ** Songa received notices of arbitration from DSME in July 2015   ** Claims of $373 million received from DSME in November 2015 for the two rigs Songa Equinox and Songa Endurance   ** Songa submitted its response to DSME's claim and a $66 million counterclaim against DSME in March 2016   ** CEO says DSME is responsible for delays and cost overruns on the rigs   ** CEO: We believe we have a very, very strong case.   Reporting By Ole Petter Skonnord

Norwegian firm Statoil ASA is ending its rig contract for the Maersk Gallant six months early. The jack up rig has been on contract with Statoil for two years, since 21 August 2014, and since 9 October it has been sub-chartered to ConocoPhillips. "Between 14 February and 21 August 2016 the Maersk Gallant is on a new contract with Total E&P Norge AS, who will pay cancellation fee according to the former contract," says a press statement from Statoil. In January, Total received consent from the Petroleum Safety Authority (PSA) of Norway, to drill the North Sea exploration well 1/5-5 in PL 618 using Maersk Gallant. The jack-up Gallant was last listed as operating in the North Sea. No information was given on the day rate or other terms for the lease.

Norway's Songa Offshore SE referred Tuesday to its announcement July 15 regarding the receipt of notices of arbitration from South Korea's Daewoo Shipbuilding & Marine Engineering (DSME) in respect of the construction contracts for the Cat D rigs. On November 16, 2015, Songa Offshore received claim submissions from DSME related to Songa Equinox, the first Cat D rig, in which DSME asserts a claim of USD 179 million, along with a request for repayment of liquidated damages in a total amount of USD 22 million. The claim that is asserted relates to alleged cost overruns and additional work in relation to Songa Equinox rig due to what DSME alleges were inherent errors and omissions in the design documents (as often referred to as the FEED package).

Statoil has decided to cancel the contract with Songa Trym, four months before the expiration of contract on 4 March 2016. Statoil has previously notified Songa Offshore that the rig would be suspended for a period, and Statoil has tried to find other assignments for the rig after the suspension period and up to the expiration of contract. “We informed the supplier earlier in October about suspending the contract after the rig has completed the drilling operation on the Tavros well on the Visund field. Statoil has hoped for further activity in the remaining contract period, but we now realize that we must cancel the contract, as we have not succeeded in finding more assignments.

Songa Offshore SE  announced  that the maturity of the fleet financing of Songa Dee, Songa Delta and Songa Trym has been extended from fourth quarter 2016 to first quarter 2018 when it will mature with a balloon of USD 25 million. The amendment also includes alignment of certain financial covenant with the rest of the Company`s financing arrangements and an extraordinary upfront repayment of USD 35 million. In parallel, the Company has entered into a term sheet for a new credit facility from the main shareholder, Perestroika AS, of USD 50 million. The new credit facility has maturity in April 2021, but can be called by Perestroika AS in June 2018. It is unsecured and bears an interest rate of LIBOR plus 8.00%.

Q4 operating loss $6.8 mln, against expected $7.3 mln loss. Norwegian rig company Songa Offshore expects a challenging 2015 amid fierce competition for fewer contracts despite reporting a slightly better than expected fourth-quarter operating loss on Friday. Rig operators are suffering in an already oversupplied market, with oil firms delaying or cancelling projects to save cash after a 10-year spending spree and a significant fall in crude prices since June. "We expect more rigs to leave the Norwegian Continental Shelf and be stacked going forward," the company said in a statement. Songa, which operates three rigs under long-term contract with oil and gas company Statoil…

Norwegian rig company Songa Offshore reported a forecast-beating core profit for the third quarter although it said weak demand for drilling rigs would remain subdued into 2015 before picking up from late 2016. The company's shares rose 5.8 percent on the better-than-expected earnings by 1200 GMT, outperforming a 1 percent rise on the Oslo benchmark. Songa, which operates three rigs under long-term contract with oil and gas firm Statoil and expects delivery of four new vessels next year, reported earnings before taxes, depreciation and amortisation (EBITDA) of $40.6 million, ahead of expectations for $27.3 million in a Reuters poll of analysts. . EBITDA fell from $50.6 million a year earlier.

International midwater drilling contractor, Songa Offshore, operates a fleet of 4 rigs with an additional 4 rigs due to be delivered later this year and in 2015. Songa Delta achieved an operational efficiency of 100% and an earnings efficiency of 100% working for Statoil in Norway. Songa Trym achieved an operational efficiency of 100% and an earnings efficiency of 97% during the month working for Statoil in Norway. Songa Dee achieved an operational efficiency of 100% and an earnings efficiency of 98% for the operational part of the month. The rig arrived Invergordon in Scotland August 24 for a scheduled SPS (Special Perodic Survey). The rig will continue its contract with Statoil when the SPS is completed. Songa Venus is stacked in Labuan, Malaysia, where it pursues future work.

Songa Dee achieved an operational efficiency of 100% and an earnings efficiency of 99% during the month working for Statoil in Norway. Songa Delta achieved an operational efficiency of 100% and an earnings efficiency of 100% working for Statoil in Norway. Songa Trym achieved an operational efficiency of 95% and an earnings efficiency of 94% during the month working for Statoil in Norway. The rig has been on rig move between two locations and the down time is related to in-between well maintenance prior to deployment of the BOP. Songa Venus achieved an operational efficiency of 100% and an earnings efficiency of 96% in the period 1 to 6 May 2014, working for Mubadala Petroleum in Malaysia.

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. 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.