Floatel to Use Private Placement Cash for Newbuild Program and Capex Increase

Swedish owner of offshore accommodation facilities, Floatel International, is contemplating a private placement of approximately USD 150 million through the issuance of new shares in Oslo directed towards Norwegian and international investors.

“The Private Placement will further strengthen Floatel International as a leading provider of high- specification, modern accommodation vessels to the offshore oil and gas industry,” said the company in a press release.

Floatel said it would use the cash raised from the Private Placement to fund its new build program for accommodation vessels at Keppel FELS Shipyard, growth capex and for general corporate purposes.

The company last year ordered a harsh environment accommodation semisubmersible unit from Singapore’s Keppel. The unit, worth US$315 million, is slated for delivery in early 2015. It will be the fourth accommodation rig in Floatel’s fleet, with capacity to accommodate 440 persons in single bed cabins.

Floating accommodation platforms are needed to provide additional living quarters for support personnel in exploration and production activities. Such support personnel are required during hook-up and commissioning in the development phase, for maintenance and upgrading during the production phase, as well as for decommissioning.