Harkand’s key shareholder Oaktree Capital Management has invested $25 million of funding in order for the company to expand its footprint in new and existing regions.
Harkand, a provider of Inspection Repair and Maintenance services to the offshore oil and gas industry, notes that, as maintaining its operations in current market conditions, it has recently been awarded three major frame agreements taking the company into West Africa and Mexico for the first time. The company has also expanded its services with its first decommissioning project in the North Sea supporting Maersk Oil.
Ben Gujral, Harkand’s chief financial officer, said the company has made several financially strategic moves to position itself for increased operational activity in the future.
He said: “We have successfully negotiated payment deferrals with bondholders, refinanced assets, and amended terms and conditions with existing suppliers. We are working closely with all of our stakeholders during this current market downturn to ensure that we have the funding in place required for uninterrupted operations and financial stability going forward.”
The company says it is on course to deliver the newbuild DP3 dive support vessel the Harkand Haldane, while it has also been upgrading several of its fleet assets.
Chief executive officer John Reed said: “The companies who emerge successfully from downturns are those who continue to pursue their strategic goals. We are poised to emerge from this downturn not only more efficient but having made strides in our strategic progress.”
“Oaktree’s support will provide us with the leverage necessary to maximise the new infrastructure relationships we’re building in Mexico and West Africa as well as looking for further opportunities across the globe.”
“Frame agreements are significant because they mean we have secured current and future work and the operators only award these types of contracts to companies who have the qualified organisational skills, equipment capability and the track record to successfully execute projects. They also demonstrate Harkand’s staying power and speak well of our strategic positioning and the service levels our people are delivering.”