PGS Establishes Export Credit Financing for Two Seismic Vessels

Petroleum Geo-Services ASA (PGS) established Export Credit Financing for the two (third and fourth of a series of four) Ramform Titan-class vessels scheduled for 2015 delivery.

PGS has through a wholly owned subsidiary signed two loan agreements for together $305 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 years 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.

Press Release, March 11, 2014; Image: PGS