In April 2011, Norway’s PGS ordered two new generation Ramform Titan-class vessels, with options for another two vessels, from Mitsubishi Heavy Industries Ltd. Deliveries of the two first vessels are in Q1 and Q4 2013. Export credit financing in Japan for the new builds has now been concluded.
The estimated total cost for each of the two vessels to be delivered in 2013 is approximately $250 million, including commissioning and a comprehensive seismic equipment package, but excluding capitalized interest.
Petroleum Geo-Services ASA (PGS) has through a wholly owned subsidiary signed two loan agreements for together $250 million to finance the two new builds. The lenders are Japan Bank for International Cooperation (“JBIC”) and Sumitomo Mitsui Banking Corporation (“SMBC”) with Nippon Export and Investment Insurance (“NEXI”) insuring the SMBC portions of the loans. The loans will have a tenor of 12 year from delivery of the vessels with semi-annual equal installments. Lenders will have first priority mortgage in the two vessels. Half the loan will bear fixed interest rate while the other half will have a revolving 6 months floating interest plus a margin. Expected interest rate p.a. including insurance premium to NEXI is estimated to be approximately 2.30%.
These fifth generation Ramform vessels will further enhance PGS’ position as a leader in 3D seismic acquisition when it comes to productivity and efficiency. The Titan Class is designed to utilize and bring forth the full potential from the flagship, ghost free GeoStreamer GS® technology, providing a step-change in seismic productivity, data quality and resolution. The vessel design is based on the demonstrated strengths of the current Ramform fleet, while improving capabilities along a number of key parameters. The new vessels will include a significantly upgraded GeoStreamer® based seismic package and are designed to take the full benefits of the GeoStreamer® towing efficiency. The vessels will further strengthen PGS’ leading position in the fast growing High Density segment of the market, where large spreads, long streamers and towing efficiency are key success factors. The High Density segments are driven by deep water exploration and production in geologically complex areas such as Brazil, West Africa and the Gulf of Mexico.
[mappress] Press Release, October 10, 2012