AWO Prospectus - COSL Drilling Europe AS

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Awilco Offshore ASA short-term repair work. Since this is linked directly to the production of oil and gas and thereby to the oil company’s cash flows, the contracts are often time critical. Some contracts are entered into long in advance to ensure a well-timed process. In addition abandonment and decommissioning of old installations is expected to create demand for accommodation services in the future. As an example Port Reval is fixed on the Frigg removal project in 2006 and 2007. The North Sea market is characterized by a harsh environment and there is traditionally little maintenance activity in the winter season. Current supply – demand balance The chart below illustrates the employment status for the relevant units in the world fleet of accommodation units. North Sea semis Borgholm Dolphin (UK) MSV Regalia (NOR) Port Reval (NOR) Safe Caledonia (UK) W Afr Safe Scandinavia (NOR) Med North Sea jack-ups (ex. smaller) Port Rigmar (NOR) Pride Rotterdam (DK) Gulf of Mexico units MSV Chemul MSV Iolair Jasminia Jupiter 1 Safe Britannia Safe Hibernia Safe Lancia Safe Regency 2005 2006 2007 Other markets Safe Astoria Yard Safe Bristolia (del. Jan-06) Yard Sakhalin MSV Safe Concordia Source: Fearnley Fonds Yard Timor Sea 6.3 The market for jack-up drilling rigs Background Drilling on offshore oil and gas fields is primarily done with units of the three categories below. The selection of a unit will depend on several factors, such as water depth, drilling depth, weather conditions, location, and availability of units. 30
Jack-ups Jack-ups have legs that are lowered to the seabed, whereafter the hull is jacked up clear of the sea surface. Depth capability is limited to leg length, so jack-ups are generally shallow water units. Some of the largest units can operate in 450ft water depth but the majority of the fleet is equipped for 250-300ft water depth. Awilco Offshore ASA Semi-submersibles Drillships Semis are floating units implying that their depth capacity is not limited to leg length. They have hulls or pontoons that are filled with ballast water to provide stability. When drilling, they are kept in position by anchors or dynamic positioning. Semis are often referred to in “generations”, with the last generations being the last built and largest units with water depth capacity up to 10,000ft. 31 Drillships have ordinary ship hulls and a derrick on top for drilling through a hole in the hull. Being ships, they have an advantage in more efficient movement between drilling operations. Like semis, the drillships may be anchored or equipped with dynamic positioning. Drillships represent a smaller element of the market. All of the Company’s current exposure to the drilling market is through jack-up drilling rigs, through its newbuilding contracts and options. Offshore rig activity is closely correlated to oil companies’ investments related to the exploration and production of oil and gas (often referred to as E&P spending). E&P activity is driven by the dual requirement to grow production at a sustainable rate while replacing production lost through depletion. E&P spending and the offshore rig activity has historically been highly cyclical. Such levels of spending may be influenced significantly by oil and natural gas prices and expected changes or instability of such prices, as well as other factors, including demand for oil and gas and regional and global economic conditions. The figure below demonstrates the link between jack-up rig demand and oil prices with a 1 year time lag. Oil price (London brent 1m futures) 50 45 40 35 30 25 20 15 10 5 0 200 01.Feb.93 01.Feb.95 01.Feb.97 01.Feb.99 01.Feb.01 01.Feb.03 02.Feb.05 Demand Jackup rigs Petrodata forecast Oil price 1 year ago Source: Petrodata / Fearnley Fonds 400 380 360 340 320 300 280 260 240 220 # active jackup rigs worls wide
Page 1 and 2: Prospectus Listing of the shares of
Page 3 and 4: Table of Contents Awilco Offshore A
Page 5 and 6: Awilco Offshore ASA Statements of r
Page 7 and 8: Definitions Awilco Offshore ASA And
Page 9 and 10: Awilco Offshore ASA The project pri
Page 11 and 12: Awilco Offshore ASA 2. Summary in N
Page 13 and 14: 2.2 Finansielle forhold Awilco Offs
Page 15 and 16: Awilco Offshore ASA d. The pre-empt
Page 17 and 18: Awilco Offshore ASA In the event of
Page 19 and 20: 4. Company description 4.1 Company
Page 21 and 22: Awilco Offshore ASA 4.3 Relation to
Page 23 and 24: Awilco Offshore ASA Capacities: Var
Page 25 and 26: Contracts No contracts have been se
Page 27 and 28: Awilco Offshore ASA (1983) and hold
Page 29 and 30: 6. Market overview 6.1 Market posit
Page 31: Awilco Offshore ASA accommodation u
Page 35 and 36: Awilco Offshore ASA The fleet of
Page 37 and 38: Awilco Offshore ASA the regime. An
Page 39 and 40: Awilco Offshore ASA The useful live
Page 41 and 42: Awilco Offshore ASA Balance sheet A
Page 43 and 44: 7.5 Auditor’s statement Awilco Of
Page 45 and 46: Awilco Offshore ASA 8. Share capita
Page 47 and 48: Awilco Offshore ASA Shareholder pol
Page 49 and 50: Awilco Offshore ASA In addition to
Page 51 and 52: Awilco Offshore ASA 1. The Contract
Page 53 and 54: Awilco Offshore ASA Keppel Option A
Page 55 and 56: Awilco Offshore ASA 2. A pre- and p
Page 57 and 58: 10. Taxation 10.1 Introduction Awil
Page 59 and 60: 10.4 Inheritance tax Awilco Offshor
Page 61 and 62: Awilco Offshore ASA Political risks
Page 63 and 64: Awilco Offshore ASA Appendix 1 Rig
Page 65 and 66: Awilco Offshore ASA 63
Page 77 and 78: Awilco Offshore ASA Appendix 6 Firs
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Awilco Offshore ASA 81
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Filipstad Brygge 1 PO Box 1363 Vika
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