With Increased Oil And Gas Activities In Brazil And The North Sea, Prosafe And Floatel Announce Merger And Will Create The World's Largest Offshore Accommodation Company

With Increased Oil And Gas Activities In Brazil And The North Sea, Prosafe And Floatel Announce Merger And Will Create The World’s Largest Offshore Accommodation Company

Written by Paulo Nogueira

Published on 04/06/2019 at 06:30

Seja o primeiro a reagir!

The Owners Of The Offshore Accommodation Platforms, Prosafe And Floatel, Have Agreed To Merge Companies In What They Call A “Merger Of Equals”.

“The goal is to create a more robust company, with improved services and geographical presence, capable of sustaining a prolonged cyclical downturn and challenging the offshore accommodation markets”, said Prosafe in a statement on Monday night.

Prosafe will acquire Floatel through share consideration in Prosafe, whereby Floatel’s major shareholders will become significant shareholders of Prosafe. The transaction is unanimously supported and recommended by the boards of directors of both companies.
“The need for consolidation in oil services is well known. We see this transaction as not only strategically sound but also necessary to adapt to the significant changes in our markets and competitive landscape in recent years,” says Glen Ole Rødland, Chairman of the Board of Prosafe SE.
Prosafe stated that the merged company would have the most modern and flexible fleet in the global market, with lower costs, greater geographical presence, and strengthened customer offerings.

ARTICLE CONTINUES BELOW

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

The Technical Agenda and the Fair in the City of Macaé Should Boost Discussions on Investments, Energy Transition, and Development of the Oil, Gas, and Energy Chain in the National...

Paulo Nogueira

Should all conditions be met, including approvals from competition authorities in Norway and the UK, necessary consents from their creditors, and shareholder approvals, the transaction is expected to be completed in the third quarter of 2019.

“The driving motivation for the merger is the fundamental and lasting changes in the offshore accommodation vessel market following the drop in oil prices in 2014. Lower activity in exploration, production, and maintenance, combined with broad efficiency improvements among oil companies has significantly intensified the competition for “beds at sea”, said Prosafe.

“2014 was a paradigm shift that triggered an unprecedented recession and lasting changes in the oil industry. We are also facing much tougher competition than before, due to a considerable oversupply of drilling rigs and supply vessels that are now being used as temporary accommodation. This situation is expected to persist,” says Rødland.

“A combination of Prosafe and Floatel could also provide a better product to customers, through a more flexible and geographically diversified fleet. To a greater extent, we will offer the right capacity at the right time across all key regions for offshore oil and gas,” states Rødland.

14 Offshore Accommodation Platforms

The merger will create the largest offshore accommodation company in the world, with Prosafe currently owning and operating a total of nine offshore accommodation units, each with a capacity of 300 to 500 beds, and options for the delivery of two new builds over the next five years. Floatel’s fleet includes five units, each with a capacity of 440-550 beds.

“A Merged Company Will Initially Have Most of Its Operations In The North Sea And Brazil. Prosafe’s current contracts in the Norwegian continental shelf expire during the first half of 2019, while Floatel’s contracts in the same region expire in the third quarter of 2020, including options,” said Prosafe.

Upon completion, the shareholders of Prosafe and Floatel, on a fully diluted basis (including convertible Prosafe bonds and Prosafe warrants), will own 55% and 45% of the combined company’s equity, respectively.

The name of the combined company will be Prosafe SE, and the shares of the combined company will continue to be listed on the Oslo Stock Exchange under the ticker PRS.

With Increased Oil And Gas Activities In Brazil And The North Sea, Prosafe And Floatel Announce Merger And Will Create The World’s Largest Offshore Accommodation Company

The Owners Of The Offshore Accommodation Platforms, Prosafe And Floatel, Have Agreed To Merge Companies In What They Call A “Merger Of Equals”.

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

14 Offshore Accommodation Platforms

Diagnostic test

Billions of barrels on the equatorial margin could lead Amapá to double its oil production in Brazil — the state wants to enter the route of companies in the Campos Basin, attract investments, and boost jobs and businesses in the oil and gas sector.

Without bricks, without cement, and without endless construction: the cardboard house that is assembled in modules and can be moved.

Billions of barrels on the equatorial margin could lead Amapá to double its oil production in Brazil — the state aims to enter the route of companies in the Campos Basin, attract investments, and boost jobs and businesses in the oil and gas sector.

Without bricks, without cement, and without endless construction: the cardboard house that is assembled in modules and can be moved.

Government unlocks R$ 554 million for a highway that has been requested for decades and accelerates the duplication of BR.

Tire road? Thousands of shredded tires were secretly placed under a ramp in California, preventing a one-year delay in a project on weak soil and supporting a 26-foot-high structure in a corridor connected to I-880.

In just three hours, a natural stone floor transforms the entrance of the house with an organic effect, immediate drainage, and a sophisticated non-slip finish that doesn’t puddle water, dries quickly, and impresses with the final result.

Future profession with immediate earnings: Specialist reveals how a solar energy technician earns R$ 8,000 per month by taking advantage of the explosion in demand across the entire country.

The Perseverance rover’s radar reveals a river buried 35 meters beneath Mars, pushing the presence of liquid water back to 4.2 billion years and increasing the chances of signs of life on the planet.

Explorers find Roman treasure trapped between rocks on the seabed for nearly 1,600 years and reveal a desperate attempt to hide 53 gold coins during the invasions of the Empire.

While Russia dominates the global wheat market, Brazil emerges as an unexpected competitor in the Cerrado, offering grain available in July and August when stocks in the Northern Hemisphere are at their lowest point of the year.