Akastor completes Odfjell Drilling rig-related investment

Norway’s Akastor has completed its previously announced investment in Odfjell Drilling.

The investment is related to Odfjell Drilling’s acquisition of the Stena Midmax semi-submersible drilling rig from Samsung, as announced in April for $505 million.

Odfjell at the time said it planned to finance the acquisition of the rig through a contemplated $325 million senior secured term loan facility, proceeds from the private placement, proceeds from a contemplated issue of preference shares to an affiliate of Akastor, and a seller’s credit from Samsung Heavy of $48.25 million.

Odfjell Drilling in April signed a preference share investment agreement and a warrant investment agreement with an affiliate of Akastor to carry out a $75 million preference share issue and an issuance of warrants for 5,925,000 common shares in Odfjell Drilling to such affiliate.

The issuance of the preference shares and the warrants was subject to the approval at a special general meeting of Odfjell Drilling.

Akastor on Wednesday said that following the approval of issuance of the preference shares and warrants at the Special General Meeting of Odfjell Drilling Ltd, the closing of the transaction took place on Thursday, according to the previously announced terms.

Odfjell has already secured a contract for the rig. It will work for Aker BP in Norway on a two-year firm drilling contract with 1+1 year optional periods. The start of drilling operations is expected in 2Q/3Q 2019.

It is worth reminding that the UK driller Stena Drilling ordered the Stena Midmax rig from the South Korea’s Samsung Heavy in 2013. However, the driller cancelled the order in 2017 claiming Samsung was unable to complete and deliver the unit within the contractually agreed timeframe.

Offshore Energy Today Staff