Golden Energy takes delivery of second offshore support vessel from Chinese shipbuilder

Oslo-listed vessel owner Golden Energy Offshore Services (GEOS) has taken delivery of the second offshore support vessel of PX121H design from China’s Nantong Rainbow Offshore & Engineering Equipment (ROC), concluding its two-vessel arrangement with the Chinese shipbuilder.

GEOS’ new offshore support vessel design. Source: Ulstein

The vessel owner announced the delivery of the Energy Empress on May 13, 2019, and the delivery of Energy Duchess took place on Monday, May 27.

CEO, Per Ivar Fagervoll, commented: “We are very excited that we have now taken delivery of both vessels. We are seeing a tight summer market ahead and these two energy efficient new vessels will meet the high market requirements very well.”

He added: “I thank our team for all their efforts and we look forward to present the vessels in the market upon their arrival in Europe.”

GEOS entered into an agreement with ROC acquiring a right to purchase two newbuild offshore support vessels, Energy Empress and Energy Duchess, of PX121H design in June 2018. The company has agreed a purchase price for each vessel of $17.9 million and the company got an option to acquire the MPSVs with a seller’s credit of 40% of the purchase price with no amortization before bullet payment two years after delivery.

The vessels were completed and ready for delivery by April 2019. According to the purchase agreement, GEOS was meant to pay the balance purchase price for the vessels at delivery (less the seller credit of 40%). By then, the company made down payments in the amount of $1.1 million for each vessel and invested in building supervision to ensure the quality of the vessels.

However, it did not have adequate funds available to pay the purchase price payable at delivery. As a result, GEOS and ROC in April renegotiated the terms of the sale agreement.

GEOS also announced its intention to carry out a private placement of new shares with the objective of raising gross proceeds of minimum NOK 30,600,000 with an upper limit of the capital increase will of NOK 46,750,000 at subscription price per new share of NOK 3.50 directed towards eligible existing shareholders and certain other qualified investors.

By the end of April, GEOS signed an addendum with ROC regarding the purchase of the two vessels and confirmed it would take delivery of the vessels with support from its existing shareholders.

The application period for the private placement ended on April 30 and a total of 10,489,356 new shares were ordered, resulting in gross proceeds to the company of NOK 36,712,746.

Following the private placement, both vessels were delivered in May.

Offshore Energy Today Staff


Spotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email.

Offshore Energy Today, established in 2010, is read by over 10,000 industry professionals daily. We had nearly 9 million page views in 2018, with 2.4 million new users. This makes us one of the world’s most attractive online platforms in the space of offshore oil and gas and allows our partners to get maximum exposure for their online campaigns. 

If you’re interested in showcasing your company, product or technology on Offshore Energy Today contact our marketing manager Mirza Duran for advertising options.

Share this article

Follow Offshore Energy Today

Events>

<< Jan 2020 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

Africa Oil Week 2020

For over 25 years Africa Oil Week has been the meeting place for Africa’s most senior E&P stakeholders.

read more >

CERAWeek 2020

 Each year, CERA clients gathered for a few days in Houston…

read more >

Offshore Technology Conference (OTC) 2020

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply