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Sevan in financial woes

Oilfield Technology,

The Norwegian ultra-deepwater drilling company Sevan made a net loss of US$ 49.8 million in 2011. This has led the company to report that it may face difficulties when it comes to financing the construction of two newbuilds.

In an earnings statement released by the company, it was claimed that additional funding would be needed if payments on two newbuild hulls were to be met. The newbuild units have a price of US$ 526 million each and Sevan is due to pay 80% of this figure.

The unwelcome news continued as the company pointed out that “Obtaining such financing may be subject to market risks an other risks that may influence the availability, structure and terms of … financing.” Sevan also stated that this may not be the end of financial difficulties because of the risk of potential “unforeseen operational issues, unforeseen liabilities or potential acquisitions.”

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