Norway’s Akastor ASA oil service investment company signed an agreement with Japan’s Mitsui & Co. Ltd. to acquire the Skandi Santos hull from DOF Subsea Rederi AS and the Skandi Santos topside from AKOFS Offshore AS through a joint venture with 50:50 ownership.
Mitsui & Co. will be working with its Japanese partner.
The JV will subsequently enter into a lease agreement with AKOFS corresponding to the remaining contract duration between AKOFS and Petrobras. DOF Subsea will continue providing ROV and marine services onboard the vessel as part of the subsea equipment support vessel contract with Petrobras.
The agreement is subject to Petrobras’ consent, bank approvals and certain other conditions, which are expected to occur during the fourth quarter of 2016.
Arctic Securities is the financial adviser and BA-HR law firm is the legal adviser.
When the transaction closes, AKOFS will gain US$66 million net of investments in the JV.
The annual bareboat charter and related costs will increase by US$8.5 million per year over the remaining contract period. The contract with Petrobras for the operations in Brazil will remain in a fully owned subsidiary of AKOFS.
The transaction will result in an accounting gain of about US$19 million for Akastor, corresponding to half of the total sales gain of US$38 million. The accounting gain is expected to be booked at closing in fourth-quarter 2016.
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