AWO Prospectus PETROJACK offer - COSL Drilling Europe AS

More documents

Recommendations

Info

8.2 The market for accommodation rigs Market overview and status The market for accommodation rigs is a highly specialized part of the offshore market. First of all, it is a small market; secondly, it is dominated by a few operators globally; and thirdly, it is separated from the drilling markets by being more directly linked to oil companies’ production than to their exploration. Accommodation units provide a flexible means of providing accommodation and service capacity to an offshore field. They are used for short- or long-term purposes whenever manning and/or deck capacity is required beyond the capacity of the fixed installation. The market is geographically divided into a few segments. Historically, accommodation units have mainly been used in the North Sea and Mexico. With the long-term chartering of five Prosafe units by Pemex in 2003, Mexico took over as a leading market for such units. The supply of accommodation units The current world fleet of dedicated accommodation units is limited and the most relevant units are summarized in the table below. Market / unit Owner Type Design Capacity (beds) North Sea Borgholm Dolphin Fred. Olsen Semi Aker H-3 600 MSV Regalia Prosafe Semi GVA 3000 243 Port Rigmar Awilco Offshore Jack-up Robin 300 326 Port Reval Awilco Offshore Semi Aker H-3 362 Pride Rotterdam Pride Jack-up Gusto 200 Gulf of Mexico MSV Chemul Pemex Semi GVA 2000 433 Jasminia Prosafe Semi GVA 2000 600 Jupiter I Cotemar Semi Small semi 720 Safe Britannia Prosafe Semi Pacesetter 812 Safe Hibernia Prosafe Semi Aker H-3 500 Safe Lancia Prosafe Semi GVA 2000 600 Safe Regency Prosafe Semi Pacesetter 780 Other markets Safe Astoria Consafe Offshore Semi Sedco 600 256 Safe Concordia Consafe Offshore Semi 376 Safe Caledonia Prosafe Semi Pacesetter 550 Safe Scandinavia Prosafe Semi Aker H-3 527 Source: Fearnley Fonds In addition to the units set forth above, there are several units that are used for accommodation purposes in special markets, but these can not be deemed relevant for competitive purposes. This includes some small shallow-water units being employed in the Southern North Sea, barges being employed in West Africa, construction platforms, diving ships, and a limited number of emergency stand-by units. Also, conventional drilling rigs do, from time to time, operate as accommodation units, but this is mainly on short term contracts with limited bed capacity requirements (100-150 beds, i.e. below the capacity of conventional accommodation units). The world fleet of accommodation units has declined significantly over the last 15 years, as several units have been converted into drilling rigs. With a fleet of about 20 units, there was a large overcapacity of accommodation units in the North Sea in the early to mid-1990s as many of the large construction projects came to an end. Over the last years, three units have been converted into accommodation mode. This includes the Offeror’s unit Port Reval, formerly a service rig, the Fred. Olsen unit Borgholm Dolphin which was 33
formerly a cold-stacked drilling rig, and the Consafe Offshore unit “Safe Astoria” which was also formerly a cold-stacked drilling rig. There is currently two additional rigs undergoing conversion into accommodation units. Consafe Offshore are converting the “Safe Bristolia” which will be delivered in Q1 2006. This unit is being converted from a formerly cold-stacked drilling rig to a 550 bed accommodation unit at Yantai Raffles Shipyard in China. The unit is contracted to commence operation in the Far East region, and will not be suited for North Sea operation. The Houston based EER (Energy Equipment Resources) has also bought and old rig that will be converted into a accommodation unit with 400 beds – “Odin Millennium”. The unit is currently undergoing conversion and upgrades at a US yard, but will not be North sea ready. EER has already secured a 3 year contract with Petrobras for the unit. While additional conversion into accommodation mode may take place, the number of rig structures available for such conversion is little. In the present strengthening market for drilling rigs, the owners generally seek to have their marginal units employed in drilling mode rather than investing in conversions. Consafe Offshore has recently taken delivery of the accommodation and service unit “Safe Concordia”, the first new building in more than 15 years. The unit was built at Keppel FELS in Singapore. It will not be suited for North Sea operation. Demand for accommodation rigs There are several sources of demand for accommodation units, linked to the various phases of the oil fields. These include; Installation and commissioning Support services during installation and testing of new fixed installations. In the North Sea such activity was formerly a large market, but has now become a minor part of demand. The market in Mexico has been stable to growing over the last 5 years. Additional growth is expected in deepwater provinces as West Africa, Brazil and South East Asia. Support services during hook-ups of satellite fields to existing installations (growth niche in the North sea with a number of subsea tie back prospects). Production and maintenance Support services during upgrading and maintenance on fixed installations (the major part of the North Sea market). Stand-by and hospital services (small part of the market); Long-term addition of accommodation capacity on producing fields (small part of market). Abandonment Abandonment and de-commissioning of fixed installations (small but growing part of the market). The key demand drivers are oil companies’ spending on new offshore production facilities and upgrades to enhance production from fields in operation. As further discussed in section 8.3, the level of such spending is strongly correlated to expectations for future oil and natural gas prices, the requirement to grow production at a sustainable rate and the need to replace production lost through depletion. The North Sea and Mexico have, historically, been the prime markets for such units. In addition emerging markets as West Africa and Australia have absorbed 1-2 units over the last few years. 34
Page 1 and 2: Offer Document and Prospectus Volun
Page 3 and 4: Table of Contents 1. Summary ......
Page 5 and 6: Statements of responsibility The Bo
Page 7 and 8: 1. Summary The following summary is
Page 9 and 10: 2. Summary in Norwegian (Sammendrag
Page 11 and 12: 3. Terms and Conditions of the Offe
Page 13 and 14: All Petrojack shares to be tendered
Page 15 and 16: Under the co-operation agreement be
Page 17 and 18: 4. Background to and reasons for th
Page 19 and 20: 5. The Offer consideration The volu
Page 21 and 22: according to the strategy set forth
Page 23 and 24: 7. Description of Awilco Offshore A
Page 25 and 26: Royal Caribbean Cruises Ltd. Cruise
Page 27 and 28: Key specifications Additional speci
Page 29 and 30: 7.6 The jack-up drilling rig newbui
Page 31 and 32: Awilco Offshore is the owner of 50%
Page 33: 8. Market overview 8.1 Market posit
Page 37 and 38: 8.3 The market for jack-up drilling
Page 39 and 40: Jack ups, new buildings Source: Ens
Page 41 and 42: The transfer of assets from Awilco
Page 43 and 44: Monetary assets and liabilities den
Page 45 and 46: Balance sheet Actual Pro forma All
Page 47 and 48: 9.5 Auditor’s statement The finan
Page 49 and 50: 10. Share capital and shareholder m
Page 51 and 52: CITIBANK, N.A. GENERAL IRISH RES.-T
Page 53 and 54: 11. Legal matters This section 11 m
Page 55 and 56: PPL Option Agreement The PPL Option
Page 57 and 58: Contract are not achieved, subject
Page 59 and 60: To finance its obligations under th
Page 61 and 62: Each rig owing company will enter i
Page 63 and 64: As a part of the Norwegian tax refo
Page 65 and 66: 13. Risk factors A number of risk f
Page 67 and 68: Offeror. This means that Awilco has
Page 72: Appendix 2 Rig specifications - Por
Page 80 and 81: Appendix 4 Rig specifications - Kep
Page 82: Appendix 6 Second quarter report 20
Page 90:
Filipstad Brygge 1 PO Box 1363 Vika
show all

AWO Prospectus PETROJACK offer - COSL Drilling Europe AS

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?