EUNAVFOR destroys dhow from Pirate Action Group

On the afternoon of 9 April, the EU NAVFOR Finnish warship FNS POHJANMAA destroyed a dhow-typed vessel used by a suspected Pirate Action Group (PAG) to prevent it being used in any future attacks.  FNS POHJANMAA disrupted the suspected PAG on Wednesday 6 April (link) and took the dhow in-tow pending further investigation.  18 suspected pirates were detained during this action.

Before destroying the Dhow, some of the material considered relevant as evidence in a possible future prosecution was transferred to FNS POHJANMAA.  Any material considered to be possibly dangerous to the environment was also removed.  This material will be handed over for recycling at the earliest opportunity.

The 18 suspected pirates are currently detained onboard FNS POHJANMAA. Legal negotiations regarding a possible prosecution are currently on-going.

EUNAVFOR Somalia – Operation ATALANTA’s main tasks are to escort merchant vessels carrying humanitarian aid of the World Food Program (WFP) and vessels of African Union Mission in Somalia (AMISOM). EUNAVFOR also protects vulnerable vessels in the Gulf of Aden and Indian Ocean, deters and disrupts piracy. EUNAVFOR finally monitors fishing activity off the coast of Somalia.
Source: EUNAVFOR

Posted on 4/11/2011 / 0 comments / Read More

Samsung Heavy To Continue Hedging 100% Of FX Exposure

SEOUL (Dow Jones)–Samsung Heavy Industries Co. (010140.SE) plans to continue its policy of fully hedging its exposure to foreign exchange risks arising from the fact it receives most of its payments for shipbuilding contracts in U.S. dollars.
[Read More]
Source: Shippingrepoter

Posted on 4/11/2011 / 0 comments / Read More

Transocean Ltd. Announces World Water-Depth Drilling Record

Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today announced that the ultra-deepwater drillship Dhirubhai Deepwater KG2 has set what the company believes is a world record for the deepest water depth by an offshore drilling rig of 10,194 feet of water while working for Reliance Industries offshore India. The rig, which is owned by a joint venture with Quantum Pacific Group, surpassed Transocean's prior record of 10,011 feet of water, set in 2003 by the Discoverer Deep Seas working for Chevron in the U.S. Gulf of Mexico.

The new record comes approximately one year after the dynamically positioned Dhirubhai Deepwater KG2 was placed into service in India under a five-year drilling contract. The vessel is equipped to work in water depths of up to 12,000 feet and outfitted to construct wells up to 35,000 feet deep.

About Transocean

Transocean is the world's largest offshore drilling contractor and the leading provider of drilling management services worldwide. With a fleet of 136 mobile offshore drilling units as well as one ultra-deepwater newbuild drillship and three high-specification jackups under construction, Transocean's fleet is considered one of the most modern and versatile in the world due to its emphasis on technically demanding segments of the offshore drilling business. Transocean owns or operates a contract drilling fleet of 47 High-Specification Floaters (Ultra-Deepwater, Deepwater and Harsh-Environment semisubmersibles and drillships), 25 Midwater Floaters, nine High-Specification Jackups, 52 Standard Jackups and other assets utilized in the support of offshore drilling activities worldwide.
Source: Transocean

Posted on 4/11/2011 / 0 comments / Read More

Chinese shipbuilder adds to order back log

Singapore-listed Yangzijiang Shipbuilding (Holdings) Ltd reports that it entered into six  effective shipbuilding contracts  in the month of March 2011 with an aggregate contract value of US$214.2 million. 
[Read More]
Source: Marine Log

Posted on 4/11/2011 / 0 comments / Read More

International report puts Egypt on maritime transport black list

The International Maritime Organization ranked Egypt one of the most dangerous countries for maritime transport in a recent report.

The report evaluates more than 200 member countries and puts them on either a black list, gray list or white list based on their observation of shipping regulations and safety procedures. The organization’s 2010 report ranked Egypt 62nd out of 83 countries on the black list.
[Read More]
Source: Almasryalyoum

Posted on 4/11/2011 / 0 comments / Read More

Rejected by Xiamen, MOL Presence passes radiation test in Hong Kong

Rejected by the Port of Xiamen, the MOL-operated containership MOL Presence has received permission to call at Hong Kong after passing the radiation level test conducted by Hong Kong authorities, according to the Shipping Gazette.
[Read More]
Source: Shipping Gazette

Posted on 4/11/2011 / 0 comments / Read More

Dubai ports to better performance

Dubai’s ports have not been affected by the current situation in Mena and the emirate expects even better business in 2011 thanks to recovering global trade, a DP World official was quoted on Sunday as saying.

Plans by neighbouring Qatar to pump massive funds on its infrastructure will also benefit Dubai’s ports, which are ready for expanded activity following the completion of expansions and a new port in Jebel Ali, said Mohammed Al Muallem, first vice president and director general of DP World.
[Read More]
Source: Emirates 247

Posted on 4/11/2011 / 0 comments / Read More

France Launches Tender for Seine Nord Canal

France launched the final tender for a company to build and operate a canal that will link Paris to Europe's inland waterway system and its largest port, Rotterdam.
President Nicolas Sarkozy said work on the $6.4 billion Seine-Nord Europe canal, Europe's most ambitious engineering project, will begin before the end of the year.
[Read More]
Source: Journal of Commerce

Posted on 4/11/2011 / 0 comments / Read More

Capesize vessels are delivered at a pace of one new vessel every second day

In a clear sign that it will take a significant rise in global seaborne dry bulk trade in order to be able to absorb the flurry of new building tonnage thrown into the water, BIMCO has issued a new report, saying, among others, that at the moment Capesize vessels are delivered at a rate of one new vessel every second day. On top of that, 6 VLOC’s have been launched with another 35 potentially up for delivery in 2011 (adjusted for slippage). The report also said that the active fleet has grown by 2.7% so far in 2011, caused by deliveries of 222 newbuilt vessels with an average cargo capacity of 85,000 DWT offset by 67 vessels with a total capacity of 4.8 million DWT being demolished.
[Read More]
Source: Hellenic Shipping News

Posted on 4/11/2011 / 0 comments / Read More

Stotoil starts production at Peregrino offshore Brazil

Last week Statoil started oil production at the large Peregrino field offshore Brazil. Production will gradually ramp up to a plateau of 100,000 barrels of oil equivalent per day.

The first phase of the development includes two drilling and wellhead platforms and a large floating production, storage and offload unit (FPSO).

The move makes Statoil an important long-term operator and partner in Brazil’s attractive and growing oil and gas industry.  

“We are proud to announce the safe and efficient start-up of Statoil’s largest international operatorship to date. The project team and our partners have done an excellent job in delivering a complex project according to the plan and below costs . With the Peregrino field in full operation Statoil will be the second-largest operator in Brazil, and it offers us an excellent opportunity for future growth in the country. The Peregrino field is a legacy asset and will contribute significantly to both Statoil and Brazil’s oil production for many years to come,” says Helge Lund, president and CEO of Statoil.

Chief executive Helge Lund

The Peregrino field is located 85 kilometres offshore Brazil in the Campos basin at about 100 metres of water depth in licenses BMC-7 and BMC-47.

The first phase of the development includes two drilling and wellhead platforms and a large floating production, storage and offload unit (FPSO). A total of 37 wells are planned, all of them using advanced horizontal well technology to maximise recovery.

The field contains 300 to 600 recoverable million barrels of oil equivalents, with a significant yet-to-find potential. An exploration well is currently being drilled at Peregrino South to explore this potential. Following completion of this well, one additional well will be drilled in the area.

Statoil’s country manager in Brazil, Kjetil Hove, says that the start up of production at Peregrino is an important milestone for the company:

“The development and start up is the result of very competent colleagues’ tireless efforts and excellent cooperation with partners and authorities. We now look forward to continue working with our Brazilian partners to run safe and reliable operations and to unlock the resource potential of the larger Peregrino area.”

Kjetil Hove, Statoil’s country manager in Brazil

“The Peregrino field showcases our project management, execution and subsurface and reservoir management skills. We are using our experience gained at the Norwegian continental shelf to share competence and experience and to create value locally in Brazil,” adds Hove.

The field was discovered in 1994. Statoil acquired a 50% stake in the discovery in 2005, and the remaining 50% and its operatorship in 2008. The Peregrino development plan was approved by the Brazilian authorities in 2007.

In May 2010 Statoil sold a 40% stake of the Peregrino field to the Sinochem Group. Statoil holds 60% ownership and the operatorship of the field and Sinochem the remaining 40%. The closing of the transaction is pending governmental approvals.

Statoil is an international energy company, headquartered in Norway, with operations in 34 countries. Building on more than 35 years of experience from oil and gas production on the Norwegian continental shelf, Statoil is committed to accommodating the world's energy needs in a responsible manner, applying technology and creating innovative business solutions. Statoil has 20,000 employees worldwide, and is listed on the New York and Oslo stock exchanges.
Source: Statoil

Posted on 4/11/2011 / 0 comments / Read More

Seadrill orders new ultra-deepwater drillship to Samsung

Hamilton, Bermuda, April 11, 2011 - Seadrill has exercised an option to build a new ultra-deepwater dual derrick drillship at the Samsung yard in South Korea. Total project price is estimated at US$600 million (includes project management, drilling and handling tools, spares, capitalized interest and operations preparations). The delivery is scheduled for the third quarter 2013.

The new unit is similar to the two drillships Seadrill ordered from Samsung in November 2010 with enhanced water depth capacity, technical capabilities as well as increased accommodation capacity compared to previous generation drillships. The dynamic positioning drillship, will be capable of operations in water depths up to 12,000 feet, and will have a hook load capability of 1,250 tons. This rig is also outfitted with seven ram configuration of the BOP (Blow Out Preventer) stack, especially targeting operations in challenging areas such as the Gulf of Mexico, Brazil and West Africa. Furthermore, the drillship will be equipped with a 165 ton capacity heave compensated crane enhancing the unit's operational flexibility and facilitating lifts on the seabed in water depths up to 3,000 meters.

Seadrill has simultaneously secured an extension of the maturity date for a further option agreement to build its seventh drillship to be delivered from Samsung since 2008. Seadrill has currently no specific plan to exercise this option, but might consider it if the strong underlying trend currently seen in the deep water market continues.

Alf C Thorkildsen, Chief Executive Officer of Seadrill Management AS, says: "The decision to add another ultra-deepwater newbuild to our modern fleet is based on the recent improvement in market outlook for ultra-deepwater units, with significantly more tender activities. The new drillship has an attractive delivery window, a favorable construction price and payment schedule and an equipment specification list that will meet our customers' future needs. We have had excellent experience with the Samsung yard and this design and are confident that the unit will be delivered on time and budget once again."

"The strengthening of Seadrill's equity basis through the recently announced bond conversion creates financial flexibility for growing the company further without raising additional equity. The current long-term dayrates give a healthy return on the investment, with further upside if the market strengthens as a result of the strong trend in the oil price. The project will based on current dayrates and anticipated financing increase Seadrill's dividend capacity going forward. The ordering of the new drillship further confirms Seadrill's commitment to remain a growth company, with the target of reaching US$3 billion in EBITDA in the coming years."
Source: Seadrill

Posted on 4/11/2011 / 0 comments / Read More

TGS Acquires Stingray Geophysical

TGS-NOPEC Geophysical Company ASA (TGS) has entered into an agreement to acquire 100% of the shares of Stingray Geophysical Limited (Stingray). The transaction will provide TGS with a strong position in the rapidly growing market for Permanent Reservoir Monitoring (PRM) solutions. The acquisition will substantially increase TGS' addressable market through access to production seismic spending from large international oil companies as well as national oil companies (NOCs), while maintaining its successful asset light model.

Stingray was founded in March 2006 and is located in Guildford, United Kingdom. The company possesses unique and patented fiber-optic sensing technology for seismic PRM and other oil and gas applications.

The core technology for Stingray's fiber-optic sensing system was originally developed in the mid-nineteen eighties, for anti-submarine defense applications. Since Stingray's incorporation in 2006, Stingray has been backed by a consortium led by the venture-capitalist firms Energy Ventures, Chevron Technology Ventures, Energy Capital Management/Statoil Venture and Cody Gate Ventures. Including the defense investment, more than USD 80 million has been invested in the technology to date.

Robert Hobbs, CEO of TGS said, "The age of "easy to find" oil is over, forcing oil companies to increase investment in their existing fields to extend production and increase recovery factors. The acquisition of Stingray allows TGS to access a larger portion of the reservoir optimization market. The combination of TGS and Stingray will leverage both companies' strengths to create a powerful PRM offering to the industry."

Martin Bett, Managing Director of Stingray added, "TGS brings complementary capabilities, a global organization, established seismic project management skills and financial strength to Stingray. As a part of TGS, Stingray is now well positioned to deliver innovative PRM solutions that will assist our clients to increase production and reserves whilst decreasing risk and costs of their Enhanced Oil Recovery programs."

The 4D seismic market, of which PRM is an integral and increasing part, was estimated to be over USD 1 billion in 2010 with the majority of data being acquired by towed streamers (source: ODS PetroData). Expectations are for the 4D market to exceed USD 2.5 billion within the next four years (source: Stingray estimate). New PRM installations are expected to trend towards optical versus electrical solutions due to the expected increase in reliability and flexibility that this technology offers, especially in deep water.

The transferred assets include 11 employees and an extensive portfolio of intellectual property. All management team members and employees of Stingray will continue as employees of TGS.

The consideration for 100% of the shares is based on an initial payment of USD 45 million and incremental payments of up to USD 35 million based on the success in commercializing the technology.

The transaction is expected to complete in April 2011.

TGS has published additional information regarding Stingray on the Company's website. To access this presentation click here.

CEO Robert Hobbs will also host a conference call on 11 April 2011 at 15:00 CET (9:00 AM New York time). Norwegian attendees are invited to call +47 2415 9757 or 800 19641, United Kingdom attendees are invited to call +44 (0)20 7138 0845 or 0800 032 3808 and USA attendees are invited to call +1 866 602 0258. Attendees may want to call 5-10 minutes before 15:00 CET (9:00 AM NY) to ensure registration and access.
Source: TGS

Posted on 4/11/2011 / 0 comments / Read More

MIS MARKS FINAL DELIVERY MILESTONE PAYMENT ON MENADRILL II

UAE-based MIS Group (Maritime Industrial Services - OSE: MIS), a diversified engineering and contracting group focused on the energy sector, has received a final payment of US$ 17.1 million, following the delivery and acceptance of MENAdrill II (Hull 110) for its client MENAdrill Investment Company (MENAdrill), an oil and gas drilling services company launched in 2008 by Bahrain-based First Energy Bank.

MENAdrill II, which will depart from MIS’ Sharjah yard later this month, is the second rig to be delivered to MENAdrill following the delivery of Hull 109 (MENAdrill I) in November last year, and the fifth rig to be delivered by the MIS Group. Construction of the Friede& Goldman (F&G) designed Super M2 rig, was supervised by a team from GL Noble Denton on behalf of the owner.

“With five rigs now delivered and with four of those operational in different parts of the world, the MIS new build programme has gained an extensive level of expertise and firmly established its credentials in the construction of offshore jack-up drilling rigs,” commented MIS Managing Director, Kevin Hudson. “We are delighted to mark this milestone with the MENAdrill team.”

In related MIS new build news, MIS’ Hull 108 was loaded out last week to Dubai Dry Docks and will return to MIS’ Sharjah yard for finishing and commissioning. The rig is targeted for completion in 2011.
Source: MIS Group

Posted on 4/11/2011 / 0 comments / Read More

Chevron Welcomes Shell to the Wheatstone Project

SAN RAMON, Calif., April 10, 2011 - Chevron Corporation (NYSE: CVX) today announced the signing of agreements with Shell Development (Australia) Pty Ltd to bring Shell into the Chevron-operated Wheatstone Project as a natural gas supplier and equity participant.

George Kirkland, vice chairman, Chevron Corporation, said, "Chevron is pleased to welcome another participant into the Wheatstone Project. The Wheatstone hub will provide a reliable new source of energy to Australia and the region. It will also further enhance Chevron's position as a leading supplier of liquefied natural gas (LNG) in Asia-Pacific."

Under the unitization agreement with Chevron's Australian subsidiaries, Shell will assume an 8 percent participating interest in the Wheatstone and Iago natural gas fields in the Chevron-operated permits WA-253-P, WA-17-R and WA-16-R, located offshore northwest Australia.  

The Wheatstone and Iago gas fields will supply Trains 1 and 2 of the Wheatstone Project, located onshore at Ashburton North in Western Australia.

Shell will also assume a 6.4 percent participating interest in the project facilities, with Chevron remaining project operator.

Chevron Australia managing director, Roy Krzywosinski, said front-end engineering and design (FEED) activity on the Wheatstone Project is nearing completion.

"The Wheatstone Project is set to become one of Australia's largest resource projects and Australia's first LNG hub. A final investment decision is expected in the second half of this year once environmental approvals and other associated agreements are finalized with various levels of government."

The first phase of the Wheatstone Project consists of two LNG processing trains with a combined capacity of 8.9 million tonnes per annum (MTPA) and a domestic gas plant.
Source: Chevron

Posted on 4/11/2011 / 0 comments / Read More

Chevron awarded Framo for subsea pumping systems to the Jack & St.Malo

Major Subsea Pumping Contract awarded to Framo Engineering Chevron U.S.A. Inc. has awarded Framo Engineering the contract for engineering, procurement, manufacturing and delivery of complete subsea pumping systems for the Jack & St.Malo fields in the Gulf of Mexico.

Framo Engineering Managing Director, Ole Gams Steine, states; “We are very proud and grateful that Chevron has taken onboard the Life of Field philosophy that Framo Engineering has invented, developed and implemented through 28 years in the subsea hi-tech market niche. This philosophy forms the basis for how we operate, organize, innovate, design, manufacture, deliver the products and support our clients throughout the life of a subsea oil & gas field.”

The scope of supply consists of several Framo Single-pump Stations (FSS), Framo Cx Subsea single-phase pumps, subsea electrical power components including high voltage wet mateable connectors and subsea transformers, subsea pump control system, installation, intervention and testing tools, and all project management, engineering, Q-HSE and administration services in order to fulfill the project deliverables.

“We are confident, however humble, to the challenge ahead of us”, says Jon Arve Sværen, Sales Director – “as the Jack / St. Malo project takes us deeper, with longer step-outs and at higher pressures than any subsea boosting system has ever been before”.

Please contact Nils Arne Sølvik, Sales Manager, Pumps & Subsea Systems, WH – Framo’s Capture Team Lead for the JSM Project, for further information.
Source: Framo Engineering

Posted on 4/11/2011 / 0 comments / Read More

NOBLE ENERGY BEGINS DRILLING AT TAMAR 6 GAS WELL

Tamar well operator Noble Energy Inc. (NYSE: NBL) has notified its Israeli partners in the license that the Sedco Express rig began drilling the Tamar 6 well yesterday.
[Read More]
Source: Globes

Posted on 4/11/2011 / 0 comments / Read More

BOEMRE Approves Operations for Tenth Deepwater Well

NEW ORLEANS – The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) today approved a deepwater permit for the drilling of a tenth well that complies with rigorous new safety standards implemented in the wake of the Deepwater Horizon explosion and resulting oil spill. This includes satisfying the requirement to demonstrate the capacity to contain a subsea blowout. The approved permit is a revised permit to drill a new well for Statoil Gulf of Mexico LLC Well #1 in Walker Ridge Block 969 in 7,813 feet water depth, approximately 219 miles off the Louisiana shoreline, south of Houma, Louisiana.

“This permit allows the drilling of the tenth deepwater well since industry demonstrated in mid-February that it had the capacity to handle subsea blowouts and spills,” said BOEMRE Director Michael R. Bromwich. “Permit applications that satisfy our more rigorous safety and environmental standards and that demonstrate the necessary containment capabilities will be approved; those that do not will be rejected.  That has been our approach and will continue to be our approach.”

Statoil’s Well #1 is a new well. The operator had a rig under contract and an approved permit to drill a new well when activities were halted due to the temporary drilling suspensions imposed following the Deepwater Horizon oil spill.

As part of its approval process, the Bureau reviewed Statoil’s containment capability available for the specific well proposed in the permit application. Statoil has contracted with the Marine Well Containment Company (MWCC) to use MWCC's capping stack to stop the flow of oil should a blowout occur. The capabilities of the capping stack meet the requirements that are specific to the characteristics of the proposed well.  

BOEMRE has worked diligently to help industry adapt to and comply with new, rigorous safety practices. These standards ensure that oil and gas development continues, while also incorporating key lessons learned from the Deepwater Horizon oil spill. This new permit meets the new safety regulations and information requirements in Notices to Lessees N06 and N10, and the Interim Final Safety Rule.
Source: Boemre

Posted on 4/11/2011 / 0 comments / Read More

High oil prices to help double demand for FPSO vessels

Global demand for floating oil production and storage vessels is expected to more than double this decade as surging crude prices allow exploration to move deeper offshore, senior industry executives said on Monday.
[Read More]
Source: Reuters

Posted on 4/11/2011 / 0 comments / Read More

Austal has unveiled its study on the application of liquefied natural gas (LNG)

Austal has unveiled its study on the application of liquefied natural gas (LNG) as a fuel for several types of ferries, as an alternative to traditional fuel options in medium and high speed vessels. 

Austal’s success is centred on the design and construction of vessels which are customised to the operator’s particular route requirements, and believes that being in a position to build ferries with LNG capabilities will provide operators with greater choice and flexibility in times of increasing environmental regulations.

Austal Technical Manager, James Bennett, commented that Austal has been researching new ferry platforms that combine the advantages of light weight aluminium construction with LNG.

“Austal is currently studying the capabilities of LNG in three different vessel types, with the ultimate aim of providing ferry operators with the option to choose LNG as an alternative option to traditional fuels.”

“The pressures from environmental regulation and the increasing cost of diesel will make LNG an increasingly attractive proposition for ferry operators, particularly those operating routes within Emission Control Areas,” said Mr Bennett.

Mr Bennett has drafted a report on the application of LNG as a fuel for medium and high speed ferries, which can be downloaded below.
Source: Austal

Posted on 4/11/2011 / 0 comments / Read More

Converteam Selected to Dynamically Position Gazflot’s Platform Supply Vessels

Rugby, 11 April 2011 - Power conversion specialist Converteam has been selected to supply its sophisticated C-Series dynamic position (DP) control systems for two platform supply vessels (PSVs) destined for operation in the oil and gas fields of Russia’s northern seas.

The award for Converteam’s sophisticated automatic position and heading control systems comes from Transas Russian Fleet Limited, having offices in St Petersburg, which is acting as supplier of integrated solutions for all major navigation and communication systems to the shipyard, Amurskiy Shipbuilding Factory (member of United Shipbuilding Corporation, Russia) in Komsomolosk in Russia’s far east. The ships are under construction for Gazflot Ltd. the exploration and support subsidiary of Russian oil giant Gazprom.

Speaking for Transas Mr. Dmitry Lagutin, General Director commented: “Converteam is a very attractive partner/supplier for a construction of this type. They have an unbeatable track record in providing customized equipment and they have a very clear understanding of the processes involved in providing engineered solutions for the end user”.

Converteam’s Paul English, VP Business welcomed the award “This latest contract follows earlier prestigious projects with Gazflot including the supply of complete electrical systems and positioning equipment for their two newbuild semi-submersible drilling vessels which are now working on the Sakhalin project in Russia’s Far East.”

The two PSVs are expected to be operational during 2012.
Source: Converteam

Posted on 4/11/2011 / 0 comments / Read More

Silent Departure of the Second Ecoship

On March 29, 2011, 2,000unit type pure car carrier S495 was named and delivered. She is the second and the last of 2-ship series of Kyokuyo's self-developed eco-friendly ship with a semi-spherically shaped bow that reduces the wind resistance. Featured in TV and newspapers, the sisters are perhaps the most famous of the vessels we have ever built.

The invited 17 guests include people from the shipowner Biko Kisen Co., Ltd., the charterer Nissan Motor Carrier, Co., Ltd. and the contractor Mitsui and Co.. and from banks. The ceremonies took place very silently, without music, gun salute, or ship whistle, to reflect the owner's intention to make the event simpler and less festive as possible, considering the terrible disaster on March 11 which killed allegedly more than 30,000 in north Japan. The national and company flags were flying half-mast as well.

The ceremonies started by a moment of silence for the quake and tsunami victims. Mr. Yosuke Harada, president of Biko Kisen then named the vessel "City of Rotterdam" and his daughter Kyôka axed the rope. When the guests made a short tour inside of the new ship and ceremonial photos were taken, the solemn events were finished. City of Rotterdam quietly left her hometown in the next morning.

Source: Kyokuyo Shipyard

Posted on 4/11/2011 / 0 comments / Read More

SFL - Acquisition of four 4,800 TEU Newbuilding Container Vessels

Ship Finance International Limited (NYSE:SFL) ("Ship Finance" or the "Company"), today announced that the Company has agreed to build four 4,800 TEU newbuilding container vessels at a state-owned shipyard in China with scheduled delivery in 2013. The aggregate construction cost will be approximately $230 million, with a majority of the payment due on delivery of the vessels, and we expect to secure bank financing for up to 80% of the purchase price.

The vessels will be chartered on time-charter basis to a large, European-based container line for seven years from delivery, and the charter rate will be approximately $26,250 net per day per vessel. The vessels are high specification, so-called wide-beam container vessels, optimized for higher cargo intake and very efficient speed/consumption economics compared to existing vessels of similar size.

Ole B. Hjertaker, CEO of Ship Finance Management AS, said in a comment: "We are very pleased to further expand our presence in the container market with these state-of-the-art containerships with long term charters to a reputable international container line. It demonstrates our ambition to continue building and renewing our fleet, expanding our presence in the container market with modern assets and high-quality counterparts. This project will add approximately $270 million to our charter backlog, which currently stands at more than $7 billion."
Source: Ship Finance

Posted on 4/11/2011 / 0 comments / Read More