Odfjell Offshore: Financing growth in ultra deepwater and harsh environment offshore drilling

Odfjell Offshore, the rig owning subsidiary of international drilling contractor Odfjell Drilling, has initiated an equity private placement to raise USD 400 to 500 million to further develop its current fleet of six state-of-the-art ultra deepwater and harsh environment offshore drilling units. In addition Odfjell Offshore may over-allot up to 10% of additional new Shares.

Odfjell Drilling will remain a majority shareholder of Odfjell Offshore after the private placement and will continue to provide its 40 years of operational experience, as well as its 3,000 highly skilled employees in the Odfjell Drilling organization.

Chairman of the board of Odfjell Offshore Mr. Simen Lieungh states:

“Odfjell Offshore’s strategy is to expand our drilling operations in the ultra deep water and harsh environment market. Our fleet is uniquely positioned and we have a strong backlog.  Currently, we have one newbuild ultra deep water semi under construction. In addition we have secured an option to build two similar units at Daewoo Shipbuilding & Marine Engineering in South Korea.”

Odfjell Offshore has retained DNB Markets, Pareto Securities AS, RS Platou Markets AS and Swedbank First Securities as Joint Lead Managers and Bookrunners and Danske Markets and Nordea Markets as Co-Lead Managers to advise on and effect the private placement of new shares directed towards investors in Norway and other jurisdictions subject to applicable exemptions from registration and other requirements under applicable securities laws.

The offer price per share will be determined through a book-building process within an indicative price range of USD 7.00   USD 8.00 per share. 

The bookbuilding period commences 12 March 2012 at 10:00 CET and will close 23 March 2012 at 17:30 CET. Odfjell Offshore may, however, at any time resolve to shorten or extend the application period at its own discretion.

Odfjell Offshore owns a fleet of highly capable and modern semisubmersible drilling units and UDW drillships currently under contracts in Norway, UK, Brazil, Angola and Tanzania:

- Deepsea Atlantic and Deepsea Stavanger (both 100% owned)
    o Two state-of-the-art ultra deepwater and harsh environment semisubmersible drilling units delivered in 2009 and 2010

- Deepsea Aberdeen (100% owned)
    o Ultra deepwater and harsh environment semisubmersible drilling rig 
    o Ultra deepwater and harsh environment semisubmersible drilling rig currently under construction at Daweoo Shipyard in South Korea with expected delivery in May 2014
    o Options for two similar units with scheduled delivery in December 2014 and March 2015

- Deepsea Metro I and Deepsea Metro II (both 40% owned)
    o Two ultra deepwater drillships delivered in 2011

- Deepsea Bergen (71.5% owned)
    o Enhanced 3rd generation North Sea semisubmersible drilling rig designed and built by Odfjell in 1983 (with subsequent substantial upgrades)


Odfjell Offshore has decided to apply for listing on Oslo Stock Exchange following completion of the private placement and targets listing in end May 2012.

Source: Odfjell Offshore

Posted on 3/13/2012 / 0 comments / Read More

Ocean Installer receives first Letter of Intent

Ocean Installer announces receipt of a Letter of Intent (LOI) from Xcite Energy Resources Ltd ("XER") for the installation of two oil export pipelines from the Rowan Norway jack-up to a shuttle tanker.

The LOI received for XER for the Bentley fields is for the installation of two oil export pipelines of 2.1 km each from the Rowan Norway production jack-up to a shuttle tanker. The work is expected to be performed in April 2012, using the subcontracted vessel from Reef Subsea Power and Umbilical.

"We are very pleased with this LOI from XER. This is an important milestone for Ocean Installer as the contract marks our entry into the UK subsea market", says Steinar Riise, CEO of Ocean Installer.

The Bentley field is located in UKCS Block 9/3B approx. 160 km East of Shetlands at a water depth of 113 m. XER is embarking on tep 1A of its planned development program for Bentley (FPD-1A). The FPD-1A program comprises one production well with two laterals, drilled from the Rowan Norway jack-up, producing across the jack-up through process kit to degas and stabilize the crude, prior to pipeline transfer to a dynamically positioned shuttle tanker.

Source: Ocean Installer

Posted on 3/13/2012 / 0 comments / Read More

Chevron on Track to Achieve 20 Percent Production-Growth Target by 2017

Chevron Corporation (NYSE: CVX) is delivering strong financial results and progressing the projects that will drive the next significant growth phase, executives said today at the company's annual security analyst meeting in New York.

"Financially, 2011 was a record year for Chevron.  We generated the strongest earnings and cash flow in our company's history," said John Watson, Chevron's chairman and CEO.  Watson added, "Looking ahead, we are well positioned and committed to delivering consistently strong financial and operating performance.  For 2012, we have a sharp focus on executing our major capital projects, which underpin 20 percent volume growth over the next six years."

George Kirkland, vice chairman and executive vice president, Upstream and Gas, recapped the 2011 results of the upstream business, which included the No. 1 ranking relative to industry peers in earnings and cash flow per barrel and return on capital employed.

Kirkland also reviewed Chevron's portfolio and production growth prospects, rounding out the presentation with a focus on the legacy liquefied natural gas (LNG) projects under construction in Australia.  "As we start up Gorgon, we will begin seeing the financial power of our LNG investments.  These are long-lived assets that will generate significant cash flow for decades."  

Joining Kirkland for the upstream discussion, Gary Luquette, president, Chevron North America Exploration and Production, focused on Chevron's deepwater, heavy oil and unconventional portfolio.  "For years, we have had strong positions in deepwater and heavy oil. Our capabilities and technology make us a leader in these asset classes where we see significant growth opportunities. In our global unconventional portfolio we have grown our acreage position, now holding more than 8 million acres of diverse shales."     

Mike Wirth, executive vice president, Downstream and Chemicals, provided an update on downstream restructuring progress.  "Improvements in all aspects of our downstream business are ahead of schedule.  We are two years into our three-year plan to improve returns, and we already have surpassed our original goal."  Wirth also outlined Chevron's targeted growth opportunities, notably in the petrochemicals and lubricants sectors.

Pat Yarrington, vice president and chief financial officer, highlighted Chevron's continued financial strength and value-generation focus.  "We have delivered record performance, and we continue to distance ourselves from our competitors on key financial metrics." Yarrington highlighted Chevron's quarterly dividend increase of 12.5 percent in 2011.  "Looking forward, I'm confident in the quality of our investment queue, in the cash generation expected from those projects, and in our ability to sustain meaningful dividend growth and fund future growth investments."

Source: Chevron

Posted on 3/13/2012 / 0 comments / Read More