Akastor concludes Mitsui partnership deal

A joint venture between the oil service investment company Akastor and Japanese investment company Mitsui has been approved and concluded.

Akastor reported on Thursday November 24 that the agreement with Mitsui & Co., Ltd (Mitsui), and Mitsui O.S.K. Lines, Ltd. (MOL), to create a joint venture with 50/50 ownership between AKOFS Offshore AS (AKOF) and Mitsui/MOL has been concluded according to the terms and conditions previously disclosed on September 20, 2016.

To remind, Akastor and Mitsui signed a heads of agreement in September according to which the joint venture would acquire both the Skandi Santos hull from DOF Subsea Rederi AS and the Skandi Santos topside from AKOFS.

The joint venture would subsequently enter into a lease agreement with AKOFS corresponding to the remaining contract duration between AKOFS and Petrobras. DOF Subsea would continue to provide the ROV and marine services onboard the vessel as part of the subsea equipment support vessel contract with Petrobras.

The agreement was subject to Petrobras consent, bank approvals and certain other conditions.

As a consequence of the agreement, AKOFS will realize a cash gain of $66 million, and Akastor will realize an accounting gain of approximately $20 million. The accounting gain will be booked in 4Q 2016.