Standard Drilling buys two more platform suppliers
- Business & Finance
S.D Standard Drilling continues its investment into the PSV market with a fresh investment of $5.215 million for two platform supply vessels. The company now co-owns seven PSVs.
To remind, the company, that 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.
Later, in October 2016, the company invested $2.7 million, corresponding to 20% ownership, in PSV Opportunity II DIS, which owns two mid-size PSV vessels, of UT 755 LN design, built at Aker Aukra in Norway in 2009 and 2008.
Standard Drilling informed on Monday that Wanax, a wholly owned subsidiary of S.D Standard Drilling, will invest in PSV Opportunity III DIS. The investment will be done through subscription of ownership interests in PSV Opportunity III and gives Wanax a 35% ownership stake in PSV Opportunity III.
PSV Opportunity III will take delivery of two mid-size PSVs of the Rolls-Royce’s UT 755 LN design. The vessels were built in Brevik, Norway in 2007 and 2008. The total purchase price for the two vessels is $11.7 million, financed solely through equity.
According to Sunnmørsposten, a Norway-based newspaper, the two PSVs, Island Earl and Island Express, are owned by the Norwegian offshore vessel owner Island Offshore. The newspaper also added the company plans to operate the vessels in the UK sector.
Standard Drilling stated that Fletcher Shipping will act as Technical and Commercial Manager for PSV Opportunity III, while Clarksons Platou Project Finance will act as a Corporate Manager. PSV Opportunity III is a newly established entity with no historical financial information as of now.
PSV Opportunity III AS, as general manager in PSV Opportunity III DIS, has signed a memorandum of agreement with the seller of the vessels. The transaction of PSV Opportunity III purchasing the two vessels will be completed on or about 19 of January 2017.
“The company believes that the investment in PSV Opportunity III is an attractive investment opportunity due to the favorable purchase price for the two vessels to be owned by PSV Opportunity III,” Standard Drilling said.
Offshore Energy Today Staff