Archive for the ‘Subsea’ Category

Ezra Acquires Aker Marine Contractors

22nd October 2010 by Crew

Ezra Holdings Ltd and Aker Solutions have announced today that they have reached an agreement for Ezra, a Singapore listed company, to acquire Aker Solutions subsidiary Aker Marine Contractors (AMC).  

 

Under the agreement, Aker Solutions will sell 100 percent of the shares in its wholly-owned subsidiary AMC to Singapore-based Ezra,"The Boa Sub C" in which Aker Solutions becomes a substantial shareholder.  Aker Solutions and Ezra also enter a 50/50 joint venture for ownership and chartering of the new-build Aker Connector (to be renamed AMC Connector), which will be completed in early 2012.

 

In the transaction, AMC is valued at USD 250 million. Ezra will settle the transaction by paying Aker Solutions USD 50 million in cash, USD 100 million in shares in Ezra Holdings Ltd, and USD 50 million in a convertible bond with maturity after 36 months. The final USD 50 million plus interest will be settled in cash on and subsequent to delivery of Aker Connector. The USD 100 million payment in shares will give Aker Solutions a substantial shareholding in Ezra.

 

With AMC‘s experienced personnel, assets and project execution capabilities on board, the new partnership is a significant step towards realising the ambition of developing a world class SURF (subsea umbilicals risers and flowlines) and floater installation company with differentiated assets covering all water depths and regions of the world. In addition, Ezra will access Aker Solutions‘ wide range of subsea and other products to create a leading combined EPCI capability.

 

Aker Solutions will be represented with one director on the board of Ezra.

 

Upon delivery of the Aker Connector vessel, Ezra will take 50 percent ownership in the vessel owning company including assumption of 50 percent of Aker Connector’s capital expenditure commitments.

 

“AMC is a strong engineering and project execution organisation. By becoming part of Ezra, AMC will have access to a larger and rapidly growing fleet of installation vessels covering all IMR and SURF installation segments – including flexible and rigid pipelay with capacity up to 3,500 metres water depth – which will enable Ezra/AMC to compete with the world’s leading SURF contractors,” says Øyvind Eriksen, executive chairman, Aker Solutions. Currently AMC operates two vessels, the Boa Deep C and Boa Sub C.

 

Ezra operates in the offshore market under the EMAS brand name. EMAS is an integrated offshore support solutions provider for the oil and gas industry. The business was founded in 1992 and is headquartered in Singapore.

 

“This will be a transformational move that will propel Ezra and AMC to jointly become one of the world’s top-five SURF contractors,” says Eriksen.

 

While AMC’s foothold is primarily in Gulf of Mexico and Europe, Ezra has a strong position in Asia Pacific including Australia, as well as West Africa.

 

When teaming up for product deliveries combined with installation and subsea construction services, the partnership will also benefit from Aker Solutions’ strong positions in Brazil and arctic regions.

 

 ”We already operate a large fleet of offshore support vessels and are engaged in engineering, fabrication and offshore construction. This partnership will be the foundation for creating a world class deepwater SURF and floater installation player, and forms a key part of our next lap growth strategy. We see great potential in partnering with Aker Solutions to offer true EPCI capabilities combining products and installation services. We welcome Aker Solutions as a valued partner in the company,” says Lionel Lee, managing director of Ezra.

 

Ezra and AMC will initially operate a fleet of five construction and SURF installation vessels, growing rapidly to ten differentiated vessels from 2013.

 

Ezra also operates approximately 30 anchor handling tugs (AHT), anchor handling tug supply (AHTS) and diving support vessels (DSV), and two accommodation barges through its offshore support division.

 

Aker Marine Contractors has a proud and unique heritage, having successfully executed the most complex projects around the world over the last 35 years. Aker Marine Contractors handled the largest structure ever moved on the surface of the earth, undertook the longest tow of a fixed platform, pioneered offshore float-over of large topsides and installed subsea equipment at the world’s northernmost field.

 

Specialising in offshore support, installation and marine services, EMAS offers integrated solutions across a wide spectrum of the support supply chain, over the entire life cycle of an oilfield. With operations across the globe, the group currently has offices in the UK, the US, Norway, India, Thailand, Malaysia, Vietnam, Australia and Brunei.

 

The transaction is expected to be completed during Q1 2011.

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At what point should you swallow your pride?

16th June 2010 by Crew

Skimming vessels, 70 miles off the coast of Alabama, US GoM © BP plc

The Obama Administration has come under heavy criticism for potentially delaying clean up operations of the Deepwater Horizon oil spill by not issuing a blanket waiver to the protectionist Jones Act which would have allowed foreign companies, possessing some of the world’s most advanced oil skimming ships, to assist.

Other presidents have waived the act under similar circumstances (e.g. Bush following Hurricane Katrina) so there is some confusion as to why Obama has not followed suit.

The Coast Guard and the Administration are quick to point out that some foreign technology is being used in the current cleanup effort; however, the reality is that this is largely technology transferred to US vessels.

A US-based company is now cleaning oil off surface water in the Gulf of Mexico using rigid sweeping arms provided by Dutch company, Royal Boskalis and the Dutch Ministry of Transport, Public Works and Water Management. Instead of using the Dutch ships and crews immediately, when help was offered back in April, the operation was delayed until U.S. crews could be trained.

Similarly, according to Belgian dredging giant Jan de Nul, an offer to send its fallpipe vessel Simon Stevin to the Gulf of Mexico was turned down because of the protectionist US law. The 36,000 dwt Simon Stevin is equipped with a 2,000 m fallpipe, which is much broader that the funnel BP is currently using and could have been used to suck up oil from the broken riser.

The Dutch also offered assistance with building sand berms (barriers) along the coast of Louisiana back in April, but that offer was also rejected. Finally, it appears the President may be softening with the announcement of the contract award to Royal Boskalis Westminster N.V. to deliver sand for berms to protect the Louisiana coast from the Deepwater Horizon oil spill. However, Boskalis will be using the trailing suction hopper dredger Stuyvesant, which already sails under the American flag.

After opening new offshore areas for exploratory drilling earlier this year and then retracting this in the wake of the Deepwater Horizon incident, perhaps the President doesn’t wish to appear to be backtracking again after firmly voicing his support over the reauthorisation of the Jones Act.

President Obama has made it clear that he intends to hold BP accountable for the incident (Note: for those people translating this into anti-British sentiment, BP shares are actually 40% British owned and 39% US owned, so it’s nearly as American as it is British). However, he will need to remember that he will also be held accountable for what he did and didn’t do in the wake of this tragedy. Pride comes before a fall as they say.

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BP bring out the Top Hat

4th June 2010 by Crew
Mac on... the BP oil spill (source www.dailymail.co.uk/MAC)
‘Marjorie, dear. How would you like to play a big part in stopping an environmental disaster?’

After the Top Kill procedure failed it appears BP may have finally managed to place a cap over the damaged wellhead.

BP had originally intended to install a lower marine riser package (LMRP) cap containment system; however abandoned the procedure after two days of unsuccessfully trying to create a clean precision cut to separate the damaged riser at the top of the Deepwater Horizon’s blow-out preventer so the LMRP cap could be fitted.

BP have now installed a “top hat” (a smaller version of the containment dome they initially tried) but it has yet to be determined how successful this latest attempt has been. Meanwhile, preparations are ongoing for the deployment of the lower marine riser package (LMRP) cap containment system.

Even if either or both methods are successful, they are only a temporary and partial fix. BP does not expect to completely halt the escape of oil until August, when it hopes to have completed two relief wells. Work on the first relief well, which started on May 2, continues and has currently reached a depth of 12,090 feet. Work on the second relief well, which started on May 16, had reached a depth of 8,576 feet before drilling was temporarily suspended on May 26. Drilling operations on the second relief well resumed on May 30.

Meanwhile, vessel owners are concerned over the impact the drilling memorandum imposed in the US Gulf will have not only on future charters but existing commitments. Hornbeck Offshore currently has nine vessels on term deals in the Gulf of Mexico. In a statement to investors, Hornbeck declared: “To the extent that any customer should assert force majeure for either the oil spill or the moratorium, the company intends to defend the enforcement of its contracts against such claims.” Certainly a firm stance from Hornbeck, and one no doubt they wouldn’t have taken without seeking legal counsel first. Five of the company’s ships are currently employed by BP to fight the Deepwater Horizon oil spill.

No doubt, those owners with vessels capable of working outside of the US Gulf will be looking to find work in other regions in a bid to mitigate their exposure to the increasing near-term uncertainty in their home market.

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