Standard Drilling buys platform supplier pair

S.D Standard Drilling has invested into two more platform supply vessels (PSVs).

The company, which used to be an offshore drilling contractor, entered the PSV market in August last year with the acquisition of 20 percent stake in PSV Opportunity I DIS for $2.4 million, which owns three mid-sized PSV vessels built in 2005 and 2006.

Standard Drilling said on Thursday that it completed the acquisition of the two PSVs through its wholly owned subsidiary Wanax AS.

The company bought two UT 776 CD PSV vessels, E.R. Athina and E.R. Georgina. The acquisition of the E.R. Georgina is subject to charters consent.

Both vessels are large PSVs, built at STX Brevik Norway in 2009 and 2010 with 1,000m2 of deck space. The two PSVs will be bought for a total consideration of $22.2 million. According to Standard Drilling, the acquisitions are expected to be completed in November 2017.

The vessels are currently working in the UK sector of the North Sea. The E.R. Georgina is on a term contract with Maersk Oil until July 2018 while the E.R. Athina is working in the spot market. Following the acquisition, the company will increase its fleet of 18 PSVs.

Martin Nes, chairman of the company, said: “The vessels grow our asset base and fleet and are favorably priced at around $11.1m per unit, representing a discount of 81 percent to $57m actual newbuild price and a discount of 60 percent to the 25-year current newbuild parity of an eight-year-old vessel with an implied value of $28 million.”

Standard Drilling said that Fletcher Shipping would be acting as a technical and commercial manager for the vessels.