Marine seismic data provider SeaBird Exploration has entered into a loan agreement, the proceeds of which will be used to outfit a vessel for seismic operations. In addition, SeaBird has decided to decommission one of its own vessels and recycle its seismic equipment to a chartered vessel.
As part of its strategy to provide services to its clients through a more asset-light and flexible business model, SeaBird is in the process of making several changes to its vessel fleet, which will result in it having a total of six vessels.
The company said on Tuesday it had entered into a $16 million, three-year secured credit facility with Sparebanken 1 SMN. The proceeds from the loan will be used to repay the SBX04 bond loan expiring in June, and to outfit the Fulmar Explorer vessel for seismic operations.
To remind, SeaBird bought the BOA Galatea vessel – now named Fulmar Explorer – in July 2019 with an intention to outfit it as a seismic source vessel.
SeaBird said that the outfitting project would start in the first quarter with an expected duration of three months and marketing of the Fulmar Explorer would begin immediately.
In addition, the company said it had signed a two-year, plus two one-year options, “pay as you work” flexible charter agreement with Uksnøy & Co AS for the 2007-built Geo Barents. The vessel will be equipped for source, 2D and niche 3D work with expected availability ultimo March. The company will begin marketing the vessel immediately for work starting in April or later.
Furthermore, the company has decided to decommission the 1985-built Osprey Explorer and recycle the in-sea seismic equipment to the Geo Barents.
A final decision on the Harrier Explorer vessel will be taken well before the next special survey.
SeaBird said that, through these initiatives, the company would have an upgraded fleet of six owned and chartered vessels. Furthermore, the initiatives will allow the company to operate with a more flexible cost base, where the modern owned vessels offer a competitiveness that allows for a significant base utilization while the chartered vessels provide flexibility as activity levels fluctuate.
“Together with the previously announced restructuring and cost reduction program, this will ensure a stronger, leaner and more competitive SeaBird for the benefit of our clients and shareholders in the years to come,” SeaBird concluded.
Offshore Energy Today Staff
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