Skip to main content

Sale and leaseback of 3D seismic vessel PGS Apollo

Oilfield Technology,


Petroleum Geo-Services ASA has entered into a sale and leaseback agreement of PGS Apollo, the only non-Ramform designed 3D vessel in the PGS fleet, and the best suited vessel for such a transaction.

Sale and leaseback agreement

The sale and leaseback agreement is established between PGS and Offshore Merchant Partners (OMP) on a 10-year bareboat charter, with an option for a 5-year extension at a reduced rate. PGS has the option to acquire the vessel after end of year 5 and 8, but no obligation. The lease will be reported as an operating lease.

PGS has a solid financial position with a liquidity reserve of US$558.9 million as of end 1Q15. The proceeds from the transaction amount to US$80 million, before transaction costs, and will strengthen the financial position of PGS further, making the company even better positioned to navigate in the current challenging market.

PGS Apollo: 3D seismic vessel

PGS Apollo entered the PGS fleet in 2010 following the acquisition of Arrow Seismic ASA in the second half of 2007. The price paid for Arrow Seismic ASA reflected a strong seismic market and, as a result, the recorded value of the vessel in the PGS group accounts exceeded construction cost of the vessel. As a result of this transaction, PGS expects to record a loss on sale in 2Q15 of US$57 million.

OMP is a portfolio company of HitecVision L.P VI, which primarily targets investments in global oil & gas related offshore asset markets. Navis Finance acted as advisor to the transaction.


Adapted from press release by Cecilia Rehn

 

Read the article online at: https://www.oilfieldtechnology.com/exploration/03062015/sale-and-leaseback-of-3d-seismic-vessel-pgs-apollo/

 

Embed article link: (copy the HTML code below):