FPSO'S

[10 bagger]

It's about that time again to start looking at FPSO's..

[10 bagger]

Industry delayed until fall of 2011

[10 bagger]

FSPO update..

Still a few contracts that can not get financed but the time and supply are soon to be in balance.. I expect the Spring of 2011 will be the watershed for this industry.. hank

[10 bagger]

FSPO's..

Still few if any cotracts have been awarded.. Norway still has the most operators.. hank

[10 bagger]

FSPO's..

Still few if any cotracts have been awarded.. Norway still has the most operators.. hank

[10 bagger]

Recon Technology Announces Strong Revenue and Profit Gains as China Oil Services Business Rapidly Expands

PR Newswire - Feb 11 at 10:17 NONE

Company Symbols: NASDAQ-SMALL:RCON

Six Months Revenue up 46% to $10.6M, Net Income up 47% to $1.9M
Conference Call Friday, February 12, 2010 at 10:00 AM ET


BEIJING, Feb. 11 /PRNewswire-Asia-FirstCall/ -- Recon Technology, Ltd. (Nasdaq: RCON), a leading Chinese non-state-owned oil and gas high-tech products and services provider, today reported financial results for its FY '10 second quarter ended December 31, 2009.

Q2 FY '10 Highlights
-- Revenue for Q2 FY '10 increased 27% to $7.3 million from $5.8 million
in Q2 FY '09 attributable to strong sales of oil field furnaces,
increasing demand of automation products and high value-added oil-field
services.
-- Gross profit increased 44% to $3.6 million for Q2 FY '10 from $2.5
million in Q2 FY '09.
-- Q2 FY '10 gross margin increased to 49% from 43% in Q2 FY '09,
primarily due to Recon's focus on higher margins services such as
software and service solutions.
-- Income from operations rose 34% to $2.5 million compared with $1.9
million in Q2 FY '09.
-- Net income was $1.8 million, an increase of 31% over $1.4 million in Q2
FY '09.
-- Earnings per diluted share were $0.45, compared to $0.62 per diluted
share in Q2 FY '09, reflecting an increase in shares issued associated
with the company's 2009 IPO.
-- Weighted average number of diluted shares outstanding was 4.05 million,
compared to 2.25 million in Q2 FY '09.


First Six Months FY '10 Highlights
-- Revenue was $10.6 million, an increase of 46% over $7.3 million for the
six months ended December 31, 2008.
-- Gross profit increased 67% to $4.6 million vs. $2.7 million for the
same period in 2008
-- Gross margin increased to 43% from 37% for the six months ended
December 31, 2008
-- Income from operations was $2.7 million, a gain of 55% from $1.8
million for the same period in 2008
-- Net income increased 47% to $1.9 million compared to $1.3million for
the first six months of FY '09.
-- Earnings per diluted share were $0.51 compared to $0.57 per diluted
share for the first six months of FY '09, reflecting an increase in
shares issued associated with the company's 2009 IPO.
-- Weighted average number of diluted shares outstanding was 3.70 million,
compared to 2.25 million for the six months ended December 31, 2008.


Liquidity and Capital Resources

The company's cash balance on December 31, 2009 was approximately $6.6 million. Recon had short-term debt of $829,000 and no long-term debt. Working capital was $15.9 million. Stockholders' equity totaled $14.9 million. The current ratio was 2.78, up from 1.90 at June 30, 2009. Net cash provided in financing activities totaled $8.7 million for the six months ended December 31, 2009, including payback of notes payable and proceeds from IPO on July 30, 2009.

Shenping Yin, Recon's Chief Executive Officer, said, "We are happy to report sustained growth in our second fiscal quarter. Our strong financial results reflect our ability to optimize our product lines in expanding our business. We are benefiting from robust demand from major oil companies for high-tech solutions and new software systems. We believe that operators of the Chinese oilfields have a growing need for new computerized systems and production enhancing measures in maturing oil and gas wells and thus have a strong ongoing need for our proprietary technology."

Conference Call

Recon CEO Mr. Shenping Yin and CFO Ms. Jia Liu will host a conference call at 10:00 AM Eastern Time tomorrow on Friday February 12 (11:00 PM Beijing/Hong Kong Time on February 12) to review the company's financial results and respond to questions and comments.

To participate, call U.S. Toll Free Number 1-877-941-4775 approximately 10 minutes before the call. International callers, please dial 1-480-629-9761. The conference ID number is 4221464. An MP3 file will be available after the call for 90 days via http://www.hawkassociates.com/profile/rcon.cfm .

About Recon Technology, Ltd.

Recon Technology, Ltd. has been providing leading Chinese oil and gas companies with automation services that increase efficiency and profitability in exploring, extracting, producing, processing, refining and transporting petroleum products for over 10 years. The company's proprietary computerized process control system manages oil production in real-time to increase extraction levels, reduce impurities in extracted petroleum and lower production costs. In addition, as one of only two acoustic system providers in the world, Recon's acoustic pipeline monitoring system is widely used to prevent gas leakage in the transport pipeline. Recon's technology is based on three software copyrights, eight product patents and four pending patents. Recon Technology is the first Chinese non-state-owned oil and gas service company to go public in the U.S. More information may be found at http://www.recon.cn or e-mail: [e-mail].

Recon's online investor kit, including an investment profile, press releases, current price quotes, stock charts and more is available at http://www.hawkassociates.com/profile/rcon.cfm . To receive notification of future releases via e-mail, subscribe at http://www.hawkassociates.com/about/alert/ .

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the company with the Securities and Exchange Commission.

All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

For more information, please contact:

Investor Contact:
Hawk Associates
Susan Zhou
Tel: [phone]
Email: [e-mail]

SOURCE Recon Technology, Ltd.

[Stay the Course]

Not sure what you guys are smoking on this page. Have you read this regarding the times ahead in the FPSO market:-

Another disquieting sign in our industry is the current status of the world’s FPSO fleet and the number of FPSOs without contracts. I count 183 FPSOs in the world, either existing or being built or converted in a shipyard, with 83 of these owned by oil companies and the rest of them, 99, being owned by contractors and leased to oil companies. I count 8 FPSOs building on speculation, still without work commitments and then there are 9 more FPSOs currently idle and off location. So there’s 8+9 out of 99 that are out of work: 17%, that’s huge. It’s never been that high a proportion before. And this is not allowing for any FPSOs known to be coming idle very soon but that has not been announced.

This large an idle fleet harkens back to the 1990s with drilling rigs and the years of adjusting and consolidating in the industry. But FPSOs are not the same as drilling rigs. Each oilfield is different and each FPSO may need more modification and more investment for the next assignment than typically happens with a drillship or a semi. At today’s shipyard prces it may be economic to build an FPSO conversion rather than adapt one of these idle FPSOs – that’s part of the economic predicament for owners of these idle FPSOs.

Simultaneous with all that equipment being without work, oil company inquiries for FPSOs have slowed way down - other than the amazing world of Petrobras. So tomorrow does not look too
good in today’s FPSO world. It conjures up what the Vince Lombardi the American football coach said about “when the going gets tough the tough get going”. Hey, with FPSOs, the going
is getting tough.

Link is: http://www.lovie.org/fpso_congress09.php

[10 bagger]

FSPO'S..

Looking thru the list again for ideas.. Will start posting when I can dot the I's and cross the T's on Brazilian offshore partners..

[10 bagger]

Luxor says controls 28 pct of Sevan through bonds
Mon Jun 8, 2009 2:43am EDT Email | Print | Share| Reprints | Single Page[-] Text [+]

Market News
Wall Street turns higher, led by financials
Oil slips, stocks and dollar weigh
Rate-hike fears weigh on short-term Treasuries
More Business & Investing News... Featured Broker sponsored link
OSLO, June 8 (Reuters) - U.S.-based Luxor Capital Group has exercised its right to buy 24 million convertible bonds in Norwegian oilfield services firm Seven Marine, raising its total interest in Sevan to 28 percent of stock, Luxor said on Monday.

The 24 million convertible bonds can be converted into 45.92 million shares in Sevan Marine, or 23.41 percent of the outstanding shares, Luxor said in a statement.

In addition, Luxor holds about 8.99 million shares, or 4.59 percent of the share capital, it said.

"Following this acquisition, Luxor holds on behalf of funds managed by Luxor through its ownership of the shares and the convertible bonds an interest in 54,908,678 shares of Sevan, or 28.00 percent of the outstanding shares of Sevan...at the time of the acquisition," Luxor Capital Group LP said.

Luxor was already listed by Sevan Marine as its largest shareholder before the convertible bond deal.

Sevan Marine shares closed at 10.67 crowns, giving the company a market capitalisation of 2.6 billion Norwegian crowns ($404.3 million). Trade on the Oslo bourse resumes at 0700 GMT. ($1=6.431 Norwegian Crown) (Reporting by John Acher; editing by Simon Jessop)

[10 bagger]

SEVAN.ol,, SVMRF.pk,, $6.03 Nor Kor,, $0.93 USD...

http://www.newsweb.no/newsweb/search.do?messageId=236846

"Outlook The main focus for Sevan is to consolidate its ongoing business in light of the challenging market conditions. As a part hereof, priority is given to optimize the current contract portfolio, secure the required financing for existing commitments, reduce operating cost and maintain a high uptime on operating units. A special focus is given to the executing of the Sevan Driller new-building contract. Several oil companies have announced a reduction in E&P budgets. However, the Board still sees opportunities for cost efficient solutions. For new projects, focus will be on securing contracts for the Sevan 300 no. 4 and 5 hulls. Arendal, May 5, 2009 The Board of Directors"

Sevan Marine ASA

Sevan Marine: Q1 Results 2009

Operating revenues for the first quarter amounted to USD 45.7 million (USD 24.3 million). Operating loss was USD 15.4 million (USD 25.6 million), and net loss was USD 36.9 million (USD 33.6 million).

Operating revenues for the quarter were USD 21.4 million higher than previous year mainly because FPSO Sevan Hummingbird commenced operations in September 2008. A reduction in revenue from the Topside and Process Technology segment of USD 4.3 million was compensated by revenue from the Goliat Post FEED in the Floating Production segment.

Operating expenses for the quarter were USD 7.2 million higher than previous year as a result of the increase in activities reflected in the revenues above. EBITA for the first quarter was USD -1.4 million (USD - 20.8 million), reflecting an improvement of USD 19.4 million compared to previous year.
Net foreign exchange losses relating to financing of USD 11.4 million (USD 19.7 million) were a result of unrealized foreign exchange losses relating to the NOK-nominated bonds following a weakening of the USD relative to NOK during the quarter.

Although average effective interest rates for the Group have decreased compared to previous year, interest expense through profit and loss has increased to USD 16.9 million (USD 6.1 million) as interest relating to FPSO Sevan Hummingbird and FPSO Sevan Voyageur are expensed following reclassification of these units from 'construction in progress' to 'FPSO'.

As of March 31, 2009, total assets amounted to USD 1,963.8 million (USD 1,565.6 million), of which USD 1,713.8 million (USD 1,221.1 million) was capitalized as Sevan capital assets. Cash and cash equivalents amounted to USD 51.9 million (USD 87.2 million).

Jan Erik Tveteraas, CEO and Birte Norheim, Vice President Finance will at 2:00 p.m. give a presentation of the results at Shippingklubben, Haakon VII`s gate 1, Oslo. The presentation will be in English.

Sound and picture from the presentation will also be broadcasted LIVE at http://www.sevanmarine.com. Please log onto the webcast 5 minutes in advance. If you wish to dial-in to the presentation, please find details attached.

Sevan Marine ASA is listed on Oslo Børs (ticker SEVAN) and is
specializing in building, owning and operating floating units for offshore applications. The Company has developed a cylinder shaped floater, suitable in all offshore environments. Presently, Sevan Marine has four FPSO contracts, including the Goliat Sevan 1000 FPSO, and three drilling contracts with clients. The Company is also developing other application types for its cylindrical Sevan hull, including floating LNG
production and power plants with CO2 capture. For more information, please refer to http://www.sevanmarine.com/.

For information, please contact:

Jan Erik Tveteraas, CEO, Sevan Marine ASA (Media)
[phone] office
[phone] mobile

Birte Norheim, VP Finance, Sevan Marine ASA (Analysts)
[phone] office
[phone] mobile

[10 bagger]

Prosafe Production Public Limited PROD.ol

Annual report is out.. A great read for those interested in FSPO.s.. hank

http://www.newsweb.no/newsweb/search.do?messageId=235092

[10 bagger]

With high bids way down, Central Gulf lease sale seen as eading industry indicator...

High bids way down because of economy.

Article By Kevin Parker- Senior Editor
Published Mar 23, 2009 Print E-mail


On Wednesday, March 18, Secretary of the Interior Ken Salazar announced high bids of more than US $700 million for the federal sale of offshore tracts in the Gulf of Mexico's Outer Continental Shelf. In contrast, last year’s sale in the Central Gulf attracted a record $3.7 billion in winning bids.

The auction results are being seen by commentators and analysts as indicative of the cumulative impact on petroleum exploration of depressed prices for oil and gas; the current credit crisis; and the Obama Administration’s projected energy policies.

Officials of the Minerals Management Service were not willing to concede the point, however, noting that much of this year's sale, in contrast to last year’s, was for somewhat less alluring shallow-water tracts.

Officials also noted there were high bids for tracts near deepwater discoveries and production, and there were 95 bids for tracts in shallow water, meaning that companies were intent on deep drilling in search of natural gas.

Clearly, however, the high bids came from the oil majors, with far fewer mid-sized companies submitting winning bids than the last several years. Royal Dutch Shell and BP PLC dominated the list of winners, followed by Marathon Oil Corp. and Nobel Energy Inc.

Initially, 56 companies submitted 476 bids on 348 tracts being offered for Central Gulf of Mexico Oil and Gas Lease Sale 208, including offshore Louisiana, Mississippi, and Alabama. This total number of bids was down more than half from last year’s sale in the Central Gulf, which attracted 78 companies putting 1,057 bids on 617 tracts.

Wednesday’s sale encompassed about 6,459 unleased blocks covering more than 34.6 million acres, including approximately 4.2 million acres located in the southeastern part of the central Gulf of Mexico known as the 181 South Area that has not been offered for lease since 1988. The 181 South Area, however, ended up not attracting much bidding.

Greater numbers of bids for tracts on the shallow shelf of the Gulf or in its deepest waters reflect current trends in exploration and production, which benefit from recent technology advances in enhanced recovery and deepwater drilling.

In reaction to rising gas prices, candidate Barack Obama’s stance before the presidential election was that he would support some expansion of offshore drilling, while still emphasizing conservation and renewable energy, according to The New York Times. However, the president’s current budget proposals would increase taxes on oil companies and would raise the cost of fossil fuels to pay for alternative energy sources. A range of tax credits would also be removed.

At the time of last year’s Gulf of Mexico sale, oil prices were about $110 a barrel. The current price is just under $50 a barrel. Natural gas prices are about a third of their 2008 peak. The production environment is further influenced by the high price or unavailability of credit that all but the oil super-majors are facing.

Salazar recently noted that the Bureau of Land Management has held seven onshore oil and gas lease sales in the last seven weeks, generating $32 million in revenues, and that more than 40 major lease sales for petroleum development on public lands will take place this year.

After opening the initial high bid, Salazar commented, “Today’s lease sale will help us make a wise addition to our nation’s energy supply. The responsible energy development resulting from today’s sale will be a part of our nation’s comprehensive energy plan, which will include a renewed emphasis on conservation and an aggressive effort to develop our renewable energy resources, so we can move our nation toward energy.....

[10 bagger]

PROD.ol

HIGHLIGHTS
* Cidade de São Mateus and Azurite en route to their
respective fields in Brazil and Congo. Ningaloo
Vision expected to arrive in Australia towards end
of Q1
* Azurite on dayrate since January 1
* Total project cost estimate unchanged since last
quarter
* Solid financial position - liquidity reserve of USD
461 million at 31 December 2008
* Write-down of USD 196.8 million due to previously
communicated cost overruns on the three new
FPSOs, as well as reduced market value of the VLCC
M/T Takama
* Operating result of USD 20.9 million excluding
write-down

Main figures
(Figures in brackets refer to the corresponding period of 2007)
As the book value of the three new FPSOs are higher than implied when
determining day rates during the bidding phase, and due to the
reduction in the market value of the VLCC M/T Takama, the company has
in the 4th quarter written down the value of the vessels by a total
of USD 196.8 million. The write-down has no impact on liquidity or
loan covenants.
Operating profit for the 4th quarter of 2008 amounted to USD -175.9
million (USD 23.3 million). The difference compared to the same
period last year is largely related to the impairment charge.
Excluding the impairment charge, the operating profit for the quarter
amounted to USD 20.9 million.
Interest expenses amounted to USD 11.2 million (USD 1.5 million) for
the quarter. The increase over the 4th quarter of 2007 is a result of
higher debt level due to the three current conversion projects. Other
financial items of USD - 4.3 million (USD 1.3 million) largely
relates to unrealised losses on financial derivatives used to hedge
future cash flow.
The tax income of USD 3.8 million (USD -4.0 million) in the 4th
quarter of 2008 is a result of positive changes in the Company's tax
position in New Zealand.
The net result for the quarter equalled USD -186.7 million (USD 19.5
million). The net result excluding impairment charge amounted to USD
10.1 million.
The operating result for the year ended 31 December 2008 amounted to
USD -111.8 million (USD 59.2 million), while the net result totalled
USD -203.6 million (USD 53.0 million). Excluding the impairment
charge and one off split costs, the operating result for 2008 was USD
88.2 million. Excluding the abovementioned items, as well as the book
loss from the sale of shares in Teekay Petrojarl, the net result for
the year was USD 49.0 million.
Total assets amounted to USD 1,981 million (USD 1,173 million) as of
31 December 2008. The increase is mainly a result of investments made
in relation to the three ongoing conversion projects. Equity amounted
to USD 806 million (USD 990 million), resulting in a book equity
ratio of 41%.
Financial situation
Prosafe Production is in a comfortable financial position as of 31
December 2008 and is well within all covenant requirements defined in
the loan agreements.
Total draw-down on the USD 1.2 billion debt facility was USD 950
million at the end of the year, while cash and deposits amounted to
USD 211 million. Thus, the company had a total liquidity reserve of
USD 461 million.
Net interest-bearing debt amounted to USD 822 million (USD 67
million) at the end of 2008. This is somewhat less than anticipated,
due to reallocation of certain project investments from 4th quarter
2008 to 1st quarter 2009.
Operations and projects
The combined uptime of the fleet was 94.3 percent (99.2 percent) in
the 4th quarter of 2008. Due to bad weather, FSO Endeavor, which
operates off the coast of India, had close to 30 days of downtime
during the quarter. However, this had limited financial impact. All
other units operated as normal.
The company has three ongoing conversion projects - FDPSO Azurite
(Murphy, Congo), FPSO Cidade de São Mateus (Petrobras, Brazil), and
FPSO Ningaloo Vision (Apache, Australia). The first two vessels have
left Singapore and are currently en route to Congo and Brazil,
respectively. Azurite has been on dayrate since January 1, while
Cidade de São Mateus is anticipated to go on dayrate in late March.
Ningaloo Vision is scheduled to leave the shipyard in March,
approximately one month later than previously planned.
Outlook
The long-term market outlook remains positive. The turmoil in the
world economy does not change the view that an increasing part of oil
production in the future has to come from difficult and less
accessible offshore fields, where the FPSO concept has advantages
over other development solutions.
However, in the short-term, the market outlook remains uncertain.
Falling oil prices have created uncertainty with regards to the
financial viability of some development prospects. Concurrently, it
has also become more difficult for oil companies to fund investments.
Consequently, it is likely that the activity level in 2009 will be
somewhat lower than experienced over the past few years.


Limassol, 11 February 2009
Prosafe Production Public Limited

For further information please contact:
Bjørn Henriksen, President and CEO
Phone: [phone]
E-mail: [e-mail]

Sven Børre Larsen, Executive VP and CFO
Phone: [phone]
E-mail: [e-mail]


This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.

[10 bagger]

Prosafe Production Public Limited
PROD.ol
================================================
World's First Drilling FPSO Leaves Singapore Shipyard
Text
The world's first Floating, Drilling, Production, Storage and
Offloading vessel (FDPSO), which is owned by Prosafe Production, has
left Keppel Shipyard in Singapore on January 24, 2009. After a short
stay at anchorage, it will head for the Republic of Congo where it
will be deployed at Murphy West Africa Ltd's (a subsidiary of Murphy
Oil Corporation) deepwater Azurite development in the Mer Profonde
Sud Block.

Named the Azurite, this first of its kind FPSO with drilling
capabilities incorporates a design that is cost efficient and
effective for drilling and producing deepwater fields. The vessel is
equipped with a modular drilling package that can be removed and
reused elsewhere when the production wells have been drilled. The
Azurite has a storage capacity of 1.4 million barrels of oil and a
process capacity of 60,000 bfpd/40,000 bopd and will be spread-moored
at a water depth of 1,400 meters.

Prosafe Production has been responsible for the FPSO conversion,
while Murphy West Africa Ltd (Murphy) has been responsible for the
drilling scope. After conversion, Prosafe Production is responsible
for the operation and maintenance of the vessel, while Murphy is
responsible for drilling operations.

About Prosafe Production
Prosafe Production is a leading owner and operator of Floating
Production, Storage and Offloading vessels (FPSOs). Prosafe
Production has 25 years of operational experience from several of the
world's largest oil and gas provinces. The company has a good
operational uptime track record and possesses a range of proprietary
FPSO-related technologies. Prosafe Production operates globally and
employs approximately 1,200 employees from more than 40 countries.
Headquartered in Limassol, Cyprus, Prosafe Production is listed on
the Oslo Stock Exchange with ticker code PROD.

For more information, please refer to www.prosafeproduction.com

Limassol, 29 January 2009
Prosafe Production Public Limited

For further information please contact:

Bjørn Henriksen, President and CEO
Phone: [phone] / E-mail:
[e-mail]

Sven Børre Larsen, Executive VP and CFO
Phone: [phone] / E-mail:
[e-mail]

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)

This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.

==================================================


HIGHLIGHTS
* Cidade de São Mateus and Azurite en route to their
respective fields in Brazil and Congo. Ningaloo
Vision expected to arrive in Australia towards end
of Q1
* Azurite on dayrate since January 1
* Total project cost estimate unchanged since last
quarter
* Solid financial position - liquidity reserve of USD
461 million at 31 December 2008
* Write-down of USD 196.8 million due to previously
communicated cost overruns on the three new
FPSOs, as well as reduced market value of the VLCC
M/T Takama
* Operating result of USD 20.9 million excluding
write-down

Main figures
(Figures in brackets refer to the corresponding period of 2007)
As the book value of the three new FPSOs are higher than implied when
determining day rates during the bidding phase, and due to the
reduction in the market value of the VLCC M/T Takama, the company has
in the 4th quarter written down the value of the vessels by a total
of USD 196.8 million. The write-down has no impact on liquidity or
loan covenants.
Operating profit for the 4th quarter of 2008 amounted to USD -175.9
million (USD 23.3 million). The difference compared to the same
period last year is largely related to the impairment charge.
Excluding the impairment charge, the operating profit for the quarter
amounted to USD 20.9 million.
Interest expenses amounted to USD 11.2 million (USD 1.5 million) for
the quarter. The increase over the 4th quarter of 2007 is a result of
higher debt level due to the three current conversion projects. Other
financial items of USD - 4.3 million (USD 1.3 million) largely
relates to unrealised losses on financial derivatives used to hedge
future cash flow.
The tax income of USD 3.8 million (USD -4.0 million) in the 4th
quarter of 2008 is a result of positive changes in the Company's tax
position in New Zealand.
The net result for the quarter equalled USD -186.7 million (USD 19.5
million). The net result excluding impairment charge amounted to USD
10.1 million.
The operating result for the year ended 31 December 2008 amounted to
USD -111.8 million (USD 59.2 million), while the net result totalled
USD -203.6 million (USD 53.0 million). Excluding the impairment
charge and one off split costs, the operating result for 2008 was USD
88.2 million. Excluding the abovementioned items, as well as the book
loss from the sale of shares in Teekay Petrojarl, the net result for
the year was USD 49.0 million.
Total assets amounted to USD 1,981 million (USD 1,173 million) as of
31 December 2008. The increase is mainly a result of investments made
in relation to the three ongoing conversion projects. Equity amounted
to USD 806 million (USD 990 million), resulting in a book equity
ratio of 41%.
Financial situation
Prosafe Production is in a comfortable financial position as of 31
December 2008 and is well within all covenant requirements defined in
the loan agreements.
Total draw-down on the USD 1.2 billion debt facility was USD 950
million at the end of the year, while cash and deposits amounted to
USD 211 million. Thus, the company had a total liquidity reserve of
USD 461 million.
Net interest-bearing debt amounted to USD 822 million (USD 67
million) at the end of 2008. This is somewhat less than anticipated,
due to reallocation of certain project investments from 4th quarter
2008 to 1st quarter 2009.
Operations and projects
The combined uptime of the fleet was 94.3 percent (99.2 percent) in
the 4th quarter of 2008. Due to bad weather, FSO Endeavor, which
operates off the coast of India, had close to 30 days of downtime
during the quarter. However, this had limited financial impact. All
other units operated as normal.
The company has three ongoing conversion projects - FDPSO Azurite
(Murphy, Congo), FPSO Cidade de São Mateus (Petrobras, Brazil), and
FPSO Ningaloo Vision (Apache, Australia). The first two vessels have
left Singapore and are currently en route to Congo and Brazil,
respectively. Azurite has been on dayrate since January 1, while
Cidade de São Mateus is anticipated to go on dayrate in late March.
Ningaloo Vision is scheduled to leave the shipyard in March,
approximately one month later than previously planned.
Outlook
The long-term market outlook remains positive. The turmoil in the
world economy does not change the view that an increasing part of oil
production in the future has to come from difficult and less
accessible offshore fields, where the FPSO concept has advantages
over other development solutions.
However, in the short-term, the market outlook remains uncertain.
Falling oil prices have created uncertainty with regards to the
financial viability of some development prospects. Concurrently, it
has also become more difficult for oil companies to fund investments.
Consequently, it is likely that the activity level in 2009 will be
somewhat lower than experienced over the past few years.


Limassol, 11 February 2009
Prosafe Production Public Limited

For further information please contact:
Bjørn Henriksen, President and CEO
Phone: [phone]
E-mail: [e-mail]

Sven Børre Larsen, Executive VP and CFO
Phone: [phone]
E-mail: [e-mail]


This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.

[10 bagger]

Prosafe Production Public Limited
PROD.ol


HIGHLIGHTS
* Cidade de São Mateus and Azurite en route to their
respective fields in Brazil and Congo. Ningaloo
Vision expected to arrive in Australia towards end
of Q1
* Azurite on dayrate since January 1
* Total project cost estimate unchanged since last
quarter
* Solid financial position - liquidity reserve of USD
461 million at 31 December 2008
* Write-down of USD 196.8 million due to previously
communicated cost overruns on the three new
FPSOs, as well as reduced market value of the VLCC
M/T Takama
* Operating result of USD 20.9 million excluding
write-down

Main figures
(Figures in brackets refer to the corresponding period of 2007)
As the book value of the three new FPSOs are higher than implied when
determining day rates during the bidding phase, and due to the
reduction in the market value of the VLCC M/T Takama, the company has
in the 4th quarter written down the value of the vessels by a total
of USD 196.8 million. The write-down has no impact on liquidity or
loan covenants.
Operating profit for the 4th quarter of 2008 amounted to USD -175.9
million (USD 23.3 million). The difference compared to the same
period last year is largely related to the impairment charge.
Excluding the impairment charge, the operating profit for the quarter
amounted to USD 20.9 million.
Interest expenses amounted to USD 11.2 million (USD 1.5 million) for
the quarter. The increase over the 4th quarter of 2007 is a result of
higher debt level due to the three current conversion projects. Other
financial items of USD - 4.3 million (USD 1.3 million) largely
relates to unrealised losses on financial derivatives used to hedge
future cash flow.
The tax income of USD 3.8 million (USD -4.0 million) in the 4th
quarter of 2008 is a result of positive changes in the Company's tax
position in New Zealand.
The net result for the quarter equalled USD -186.7 million (USD 19.5
million). The net result excluding impairment charge amounted to USD
10.1 million.
The operating result for the year ended 31 December 2008 amounted to
USD -111.8 million (USD 59.2 million), while the net result totalled
USD -203.6 million (USD 53.0 million). Excluding the impairment
charge and one off split costs, the operating result for 2008 was USD
88.2 million. Excluding the abovementioned items, as well as the book
loss from the sale of shares in Teekay Petrojarl, the net result for
the year was USD 49.0 million.
Total assets amounted to USD 1,981 million (USD 1,173 million) as of
31 December 2008. The increase is mainly a result of investments made
in relation to the three ongoing conversion projects. Equity amounted
to USD 806 million (USD 990 million), resulting in a book equity
ratio of 41%.
Financial situation
Prosafe Production is in a comfortable financial position as of 31
December 2008 and is well within all covenant requirements defined in
the loan agreements.
Total draw-down on the USD 1.2 billion debt facility was USD 950
million at the end of the year, while cash and deposits amounted to
USD 211 million. Thus, the company had a total liquidity reserve of
USD 461 million.
Net interest-bearing debt amounted to USD 822 million (USD 67
million) at the end of 2008. This is somewhat less than anticipated,
due to reallocation of certain project investments from 4th quarter
2008 to 1st quarter 2009.
Operations and projects
The combined uptime of the fleet was 94.3 percent (99.2 percent) in
the 4th quarter of 2008. Due to bad weather, FSO Endeavor, which
operates off the coast of India, had close to 30 days of downtime
during the quarter. However, this had limited financial impact. All
other units operated as normal.
The company has three ongoing conversion projects - FDPSO Azurite
(Murphy, Congo), FPSO Cidade de São Mateus (Petrobras, Brazil), and
FPSO Ningaloo Vision (Apache, Australia). The first two vessels have
left Singapore and are currently en route to Congo and Brazil,
respectively. Azurite has been on dayrate since January 1, while
Cidade de São Mateus is anticipated to go on dayrate in late March.
Ningaloo Vision is scheduled to leave the shipyard in March,
approximately one month later than previously planned.
Outlook
The long-term market outlook remains positive. The turmoil in the
world economy does not change the view that an increasing part of oil
production in the future has to come from difficult and less
accessible offshore fields, where the FPSO concept has advantages
over other development solutions.
However, in the short-term, the market outlook remains uncertain.
Falling oil prices have created uncertainty with regards to the
financial viability of some development prospects. Concurrently, it
has also become more difficult for oil companies to fund investments.
Consequently, it is likely that the activity level in 2009 will be
somewhat lower than experienced over the past few years.


Limassol, 11 February 2009
Prosafe Production Public Limited

For further information please contact:
Bjørn Henriksen, President and CEO
Phone: [phone]
E-mail: [e-mail]

Sven Børre Larsen, Executive VP and CFO
Phone: [phone]
E-mail: [e-mail]


This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.

[10 bagger]

BW Offshore Limited
BWO.ol..

http://www.newsweb.no/newsweb/search.do?messageId=230259

Title Presentation for FPSO International conference;;

This is a wortwhile link that explains FSPO's sloppy market's of the past year.. Click on the red triangle..hank



(Bermuda, 4 March 2009): BW Offshore Limited's CEO Carl K. Arnet will
present at the FPSO International conference in Oslo today. Please
see the presentation attached.

BW Offshore is one of the world`s leading FPSO contractors and a
market leader within advanced offshore loading and production systems
to the oil and gas industry. BW Offshore has more than 25
years`experience and has successfully delivered 13 FPSO projects and
50 turrets and offshore terminals. BW Offshore`s technology division
APL has delivered solutions for production vessels, storage vessels
and tankers in a wide range of field developments. Adapting through
competence, in-house technology, solid project execution and
operational excellence, BW Offshore ensures that customer needs are
met through versatile solutions for offshore oil and gas projects. BW
Offshore has as a global network with offices in Europe, Asia
Pacific, West Africa and the Americas. BW Offshore has 1,100
employees and is listed on the Oslo Stock Exchange. For more
information, please visit www.bwoffshore.com and www.apl.no


This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.

[10 bagger]

SEVAN.ol,, SVMRF.pk

http://www.newsweb.no/newsweb/search.do?messageId=229951

SEVAN: Presentation materials Q4 2008


Please find attached the presentation materials for the presentation of
the fourth quarterly results that will be given today, February 27.


Jan Erik Tveteraas, CEO, Birte Norheim, Vice President Finance and Arne
Smedal, Chairman of the Board will at 2:00 p.m. give a presentation of
the results at Shippingklubben, Haakon VII`s gate 1, Oslo. The
presentation will be in English.

The sound from the presentation will also be broadcasted LIVE on
http://www.sevanmarine.com/ and www.oslobors.no/webcast. Please log onto
the webcast 5 minutes in advance of the presentation start. Also please
download the presentation material from http://www.sevanmarine.com/ to
view it while listening to the conference. If you wish to dial- in to
the presentation, please see the details attached.


Sevan Marine ASA is listed on Oslo Børs (ticker SEVAN) and is
specializing in building, owning and operating floating units for
offshore applications. The Company has developed a cylinder shaped
floater, suitable in all offshore environments. Presently Sevan Marine
has four floating production, storage and offloading units (FPSOs) and
three drilling units contracted to clients. The Company is also
developing other application types for its cylindrical Sevan hull,
including floating LNG production and power plants with CO2 capture. For
more information, please refer to http://www.sevanmarine.com/.

For information, please contact:

Jan Erik Tveteraas, CEO, Sevan Marine ASA (Media)
[phone] office
[phone] mobile

Birte Norheim, VP Finance, Sevan Marine ASA (Analysts)
[phone] office
[phone] mobile

[10 bagger]

This is bullish for FSPO's as this is the perferred method PBR uses to store and process production.. SEVAN.ol,, SVMRF.pk

Petrobras Will Receive 33 New Drilling Rigs by 2012
By Jeb Blount and Carlos Caminada

Feb. 4 (Bloomberg) -- Petroleo Brasileiro SA, Brazil’s state-controlled oil company, will take delivery of 33 new oil rigs by 2012 as it seeks to boost output, an official said.

Petrobras, as the Rio de Janeiro-based company is known, will receive 11 rigs this year, head of Exploration Services Erardo Barbosa said today at a news conference in Rio de Janeiro. The company operates or leases 40 rigs now, he said.

The rigs are part of a $104.6 billion exploration and oil output plan through 2013. Under the program, Petrobras hopes to increase production by more than half to 3.66 million barrels a day in 2013 from 2.4 million barrels a day in 2008. Exploration and production will account for more than half the company’s $174.4 billion spending plan in the period.

“We can’t be conservative in our goals,” Exploration Director Guilherme Estrella said at the same conference. “We must be ambitious.”

Petrobras, whose 5 billion- to 8 billion-barrel Tupi field is the biggest oil discovery in the Americas since 1976, needs to drill dozens of wells to increase production from its offshore fields, responsible for more than 80 percent of the its output.

New Wells

Many of the new wells are in waters more than 2,000 meters (6,560 feet) deep and require ships that cost about $1 billion each. Of the ships on order now, most will be floating platforms for deep water, Barbosa said. The rest will be so-called “jack- up” rigs with legs that sit on the ocean floor and a platform that can be raised or lowered.

Much of the drilling will be concentrated in the “pre- salt” area near Tupi in Brazil’s Santos Basin, where the company plans to spend $18.6 billion through 2016.

The pre-salt region extends about 800 kilometers (500 miles) along Brazil’s coast near Rio de Janeiro and Sao Paulo. Oil in the area is below a layer of salt.

Pre-salt reservoirs may contain more than 100 billion barrels of oil, according to Marcio Mello, president of Brazil’s petroleum geologists association.

Petrobras also said it plans to move ahead with plans for its Papa Terra field in the Campos Basin even after cancelling tenders for offshore production platforms.

The company believes rig suppliers, shipbuilders and other equipment and service providers are charging too much.

“We can’t go back to prices like those we had when Brent crude was $140 a barrel,” Estrella said. “We want to accelerate the process of deflation.”

To contact the reporters on this story: Carlos Caminada in Sao Paulo at at [e-mail]; Jeb Blount in Rio de Janeiro at [e-mail]

Last Updated: February 4, 2009 16:46 EST

[10 bagger]

Sevan: Update on FPSO Sevan Voyageur
SVMRF.pk,, SEVAN.ol

Sevan: Update on FPSO Sevan Voyageur

Following Oilexco`s announcement yesterday regarding appointment of
Administrators of its subsidiary Oilexco North Sea Limited, Sevan has
had initial discussions with the Administrators. A process for payment
for the activities incurred during the period of administration has been
agreed.

Sevan continues the final commissioning activities on FPSO Sevan
Voyageur, preparing the unit for first oil on the Shelley field.


Sevan Marine ASA is listed on Oslo Børs (ticker SEVAN) and is
specializing in building, owning and operating floating units for
offshore applications. The Company has developed a cylinder shaped
floater, suitable in all offshore environments. Presently Sevan Marine
has four floating production, storage and offloading units (FPSOs) and
three drilling units contracted to clients. The Company is also
developing other application types for its cylindrical Sevan hull,
including floating LNG production and power plants with CO2 capture. For
more information, please refer to http://www.sevanmarine.com/.

For information, please contact:
Jan Erik Tveteraas, CEO, Sevan Marine ASA (Media)
[phone] office
[phone] mobile

Birte Norheim, VP Finance, Sevan Marine ASA (Analysts)
[phone] office
[phone] mobile
Read our disclaimer and copyright notice

[10 bagger]

Sevan Marine ASA SEVAN.ol,, SVMRF.pk

Kanfa Aragon Signs Contract With Samsung Heavy Industries On Floating
LNG Production

Kanfa Aragon AS, a subsidiary of Sevan Marine ASA, has today signed a
Contract with Samsung Heavy Industries Co., LTD in Korea for the
development of a liquefied natural gas production topside to the world`s
first Floating Liquefied Natural Gas (FLNG) Production Vessel. The
contract confirms a letter of intent previously entered into between the
parties.

The FLNG topside will be based on Kanfa Aragon`s liquefaction
technology. Kanfa Aragon`s scope of work includes the design and
engineering of the liquefaction plant as well as procurement of major
equipment items. The contract value is approximately USD 200 million.
The vessel will be owned and operated by FLEXLNG. The vessel will have a
gas processing and liquefaction topside with an LNG capacity of
approximately 1.7 mtpa (million metric tons per annum) LNG.
- This is a very important contract for us, and it is confirming our
position as a leading world wide technology provider for floating LNG
production. In spite of the unstable worldwide financial situation,
floating LNG production is a growing market, and this contract puts us
in an excellent position to take a major share of this market, says Jan
Erik Tveteraas, CEO Sevan Marine ASA.
Kanfa Aragon is focusing on gas technologies and applications with a
range of skills, competencies and experience. Together with the Kanfa
group, Kanfa Aragon, delivers advanced gas treatment solutions for FPSO
projects worldwide.



please refer to http://www.sevanmarine.com/.

For information, please contact:
Jan Erik Tveteraas, CEO, Sevan Marine ASA (Media)
[phone] office
[phone] mobile


Thor Kvinge, Managing Director Kanfa Aragon AS
Phone: + 47 906 23 065
Email: [e-mail]
Les om ansvar og rettigheter

Sevan Marine ASA is listed on Oslo Børs (ticker SEVAN) and is specializing in building, owning and operating floating units for offshore applications. The Company has developed a cylinder shaped floater, suitable in all offshore environments. Presently Sevan Marine has four floating production, storage and offloading units (FPSOs) and three drilling units contracted to clients. The Company is also developing other application types for its cylindrical Sevan hull, including floating LNG production and power plants with CO2 capture.

[10 bagger]

PROD.ol

World`s First Drilling FPSO Leaves Singapore Shipyard
Tekst
The world`s first Floating, Drilling, Production, Storage and
Offloading vessel (FDPSO), which is owned by Prosafe Production, has
left Keppel Shipyard in Singapore on January 24, 2009. After a short
stay at anchorage, it will head for the Republic of Congo where it
will be deployed at Murphy West Africa Ltd`s (a subsidiary of Murphy
Oil Corporation) deepwater Azurite development in the Mer Profonde
Sud Block.

Named the Azurite, this first of its kind FPSO with drilling
capabilities incorporates a design that is cost efficient and
effective for drilling and producing deepwater fields. The vessel is
equipped with a modular drilling package that can be removed and
reused elsewhere when the production wells have been drilled. The
Azurite has a storage capacity of 1.4 million barrels of oil and a
process capacity of 60,000 bfpd/40,000 bopd and will be spread-moored
at a water depth of 1,400 meters.

Prosafe Production has been responsible for the FPSO conversion,
while Murphy West Africa Ltd (Murphy) has been responsible for the
drilling scope. After conversion, Prosafe Production is responsible
for the operation and maintenance of the vessel, while Murphy is
responsible for drilling operations.

About Prosafe Production
Prosafe Production is a leading owner and operator of Floating
Production, Storage and Offloading vessels (FPSOs). Prosafe
Production has 25 years of operational experience from several of the
world`s largest oil and gas provinces. The company has a good
operational uptime track record and possesses a range of proprietary
FPSO-related technologies. Prosafe Production operates globally and
employs approximately 1,200 employees from more than 40 countries.
Headquartered in Limassol, Cyprus, Prosafe Production is listed on
the Oslo Stock Exchange with ticker code PROD.

For more information, please refer to www.prosafeproduction.com

Limassol, 29 January 2009
Prosafe Production Public Limited

For further information please contact:

Bjørn Henriksen, President and CEO
Phone: [phone] / E-mail:
[e-mail]

Sven Børre Larsen, Executive VP and CFO
Phone: [phone] / E-mail:
[e-mail]

[10 bagger]

MODEC MDIKF.pk

New name to research in the FPSO world.. hank

[10 bagger]

OT: Now on the trip back to Fla.. Soon as IKE passes will pull anchor... hank

[10 bagger]

Floating production boom continuesBy Karen Broyles
Filed from Houston
5/27/2008 5:04:25 PM GMT

Demand for floating production systems (FPSs) will continue growing as strong oil and natural gas prices drive efforts to explore for and develop more oil and gas reserves in deeper water around the globe. This year, 44 FPSs are expected to be deployed, up from 28 units deployed in 2007 and 24 deployed in 2006.

As of this month, 24 FPS projects are scheduled for deployment in 2009 and 12 projects are planned for deployment in 2010.

So far this year, 21 discoveries have been made worldwide in water depths greater than 1,500 feet (457 m). The most recent discoveries augment the 40 discoveries made in more than 1,500 feet (457 m) of water last year. Given that the year is not even halfway over, the 40 discovery mark could be surpassed.

Cascade-Chinook FPSO

The energy industry continues to achieve new milestones in the development and use of floating production, storage and offloading vessels (FPSOs). One example is Petrobras' Cascade-Chinook project in the U.S. Gulf of Mexico, which involves the first use of an FPSO facility in the region.


The U.S. Minerals Management Service (MMS) has approved development plans for the Cascade-Floating production demand continues upward


Chinook oil and natural gas project in the Walker Ridge area of the U.S. Gulf in 8,200 feet (2,499 m) of water, 165 miles (265 km) offshore Louisiana. The Cascade-Chinook project also will be the first production from deepwater discoveries in the Lower Tertiary trend of Walker Ridge and Keathley Canyon in the Gulf of Mexico.


MMS Regional Director for the Gulf of Mexico Lars Herbst said, "This is an important step for Petrobras and all oil and gas operators exploring in deepwater Gulf of Mexico. The FPSO and many associated first-use technologies lead the way in providing the infrastructure necessary to produce safely in the Gulf's ultra-deepwater."

New Technology

SBM Atlantia unveiled its latest FPSO mooring technology at the Offshore Technology Conference in Houston earlier this month. The MoorSpar system is aimed at improving the efficiency and cutting the cost of deepwater and ultra-deepwater developments.

The system is a disconnectable FPSO mooring system that makes possible the use of lower-cost, efficient steel catenary risers (SCRs) in deepwater and ultra-deepwater harsh environments such as the Gulf of Mexico.

The MoorSpar unit consists of a truss structure set atop a long, slender buoy and moored to the sea floor by a combination of lateral polyester lines and vertical tethers. The FPSO is connected to the facility through an articulated yoke system linked to a main roller bearing situated below a gimbal table at the top of the Moor Spar unit. The arrangement accommodates the vessel's roll and pitch motions, while still allowing the FPSO to weathervane as necessary.

SCRs are, in turn, connected to the MoorSpar unit at riser porches located along the keel of the buoy. The risers are then linked to internal piping, which is routed up through the central column and then across hard piping and swivels to the FPSO. The MoorSpar system can be used in the development of high pressure and high temperatures reservoirs as it avoids the use of flexible jumpers and risers.

FPSO market

Fred. Olsen Production reports that 2008 has started with some signs of a positive upswing in the number of tender opportunities in the FPSO sector. "This is in line with our comments in the last quarter that projects delayed in 2007 due to drilling capacity constraints and development cost increases would be reactivated in early 2008.

"However, as previously advised, a number of speculative FPSO conversions and FPSOs without contract employment continue to create a near terms pressure on returns mainly in the lower end of the FPSO market," Fred. Olsen officials said.

The conversion of the Suezmax tanker Knock Allan into an FPSO for Canadian Natural Resources' Olowi field offshore Gabon is progressing according to plan, with a scheduled start-up in October of this year. The project currently is in a critical phase of the conversion work, receiving sub-supplies in Dubai Drydocks for installation on board the FPSO.

Sevan Marine reports that its Sevan concept for FPSOs has been accepted by oil companies following offshore installation of FPSO Sevan Piranema at the Piranema off Brazil and FPSO Sevan Hummingbird at the Chestnut field in the North Sea.

Motion characteristics of FPSO Sevan Hummingbird have been recorded and concluded to be in accordance with or better than model tests and analysis. Motion data from FPSO Sevan Piranema also confirm better than anticipated motions compared to model tests.

Sevan officials anticipate the company will land more FPSO work in its existing markets in Brazil, the U.S. Gulf and the North Sea. In addition, Sevan is tracking several potential projects in the new FPSO markets of India, West Africa, Australia and the Far East.

Sevan's development of alternative technologies is progressing. Sevan is performing studies and negotiating with clients for Sevan's floating liquefied natural gas (FLNG) FPSO and for LNG topsides.

Construction work is on schedule for FPSO No. 4 at China's Hantong Shipyard. Hull and living quarters are set to be completed in this year's second quarter. FPSO Sevan Voyageur is undergoing hook-up and topside installation at Keppel Verolme in Europe. The FPSO will be installed at the Shelley field in the UK North Sea in this year's third quarter.

Ezra Holdings' construction and production arm, EOC Ltd., is bidding for FPSO and floating storage offloading contracts worth more than US$800 million. Ezra Holding Managing Director Lionel Lee described EOC's FPSO business as the next wave of growth for the company as evidenced by recent bidding round and contract awards.

EOC Ltd. is expected to take delivery of its first FPSO in July. The vessel is now undergoing final conversion at Keppel Shipyard's facilities in Singapore.

When complete, the vessel will leave Singapore to work on PTTEP's Arthit gas development in the Gulf of Thailand.

Completion of Norway-based Aker Solutions' first FPSO is on track for a scheduled sail-away in this year's second quarter, but previous cost estimates for the FPSO will be exceeded. Aker Floating Production will need to secure additional financing to complete the FPSO.

The cost increase is mainly due to underestimation and supply constraints. The previous cost estimate of US$714 million will now be 10 percent higher.

Eni Norge AS awarded Aker Solutions a competition contract for the front-end engineering and design of the FPSO for the Goliat field. The Goliat project is located in the Barents Sea northwest of Hammerfest in about 1,312 feet (400 m) of water. The Aker Solutions alternative is based on a Condeep MonoFloater design known as a Geo-stationary FPSO. Engineering work has already started and will continue through early autumn 2008.

Aker Solutions' Condeep Monofloater design is capable of producing 100,000 b/d of oil and nearly 42 MMcf/d of gas while storing up to 950,000 barrels of oil. In addition to the offloading function, the vessel is designed for minimum emissions to air and partial power from shore, as well as full injection of produced water.

Future Development

Addax Petroleum reports that a pair of appraisal wells at its Ofrima North discovery in OML137 offshore Nigeria, have shown enough for a new standalone oil production hub utilizing an FPSO and subsea tiebacks. The company intends to work closely with relevant Nigerian government agencies on plans for development with potential production as early as late 2009.

MEO Australia initiated a review of FLNG design concepts during the quarter ended March 31, citing FLNG as the quickest way to develop early production and cash flow for any new discovery. MEO Managing Director Christopher Hart said both international oil companies and "very competent contractors" are now advocating this approach as current indications of construction costs for onshore plants is becoming prohibitive.

[nature boy]

by Scana Industrier ASA
Friday, May 02, 2008


Scana Industrier ASA and FPSOcean AS have agreed to establish a new company that will focus on developing technology and equipment for floating production units. This is a continuation of the ongoing jointly owned development of the DRB (Disconnectable Riser Buoy) turret and fluid transfer system.
The new company has furthermore signed an acquisition agreement with Blyth-Newcastle UK-based Flexible Engineered Solutions Limited (FES). The purchase price will be paid partly in cash and partly in shares issued by the new company and with a portion of the purchase price being subject to an earn-out model over a period of time.

FES is a recognized supplier of proven fluid transfer systems, FPSO turrets and other specialized equipment serving the international oil & gas industy. The FES technology will complement Scana/FPSOcean's patent-pending solutions. Scana's share of ownership in the new company will initially be above 50% and Scana will have the right to nominate the Chairman of the board. Closing of the transactions is subject to due diligence and final board approvals, and is expected to take place in June.

The ambition of the new company is to create a leading independent provider of equipment to the FPSO market and similar markets including floating LNG production units. The company will continue to utilize Scana technology and manufacturing capacity and will adopt current and future agreements with FPSOcean and other FPSO contractors. The parties expect significant international growth fueled by the access to FES market-position, technology and very capable engineering and project organization.

Publicly available information about the market-segment for floating production indicates a need for at least 15-20 new units per year over the next few years. The base resources for the new company will comprise parts of the company Scana AMT in Vestby including personnel, technical personnel from FPSOcean and all resources within FES. The new company will continue to be located in Vestby, Blyth-Newcastle and Oslo. The new company will at the time of establishment employ about 45 engineers and project management personnel and is expected to have an annual turnover of approximately NOK 300 million in the first full year of operations.

"It is a stated ambition for Scana to maximize shareholder values," said Rolf Roverud, CEO of Scana. "This joint venture combines the expertise, know-how and market references from FPSOcean, FES and Scana, and allows the new combined company to take the position as the leading independent technology partner for turret based systems to the rapidly growing FPSO market. At the same time Scana will become a strategic supplier of engineered components and metallurgic services to the new company. This combination will give the new company a competitive edge and a good basis for creating significant shareholder values."

Robert Anderson and Ian Latimer of FES comment: "The only two independent suppliers of turret-based solutions have joined forces in order to be able to serve the global market place. As a privately owned company FES considered several possible growth restrictions which should now be entirely replaced by significant growth opportunities. We are very exited to join Scana in this effort to build a new leading technology provider.

"FPSOcean is the pioneer customer deploying the DRB developed in co-operation with Scana. Our vision for deployment of disconnect able turret systems goes far beyond the ongoing delivery to our first DP FPSO 'DeeP Producer 1.'"

"By this strategic move FPSOcean will secure two paramount accomplishments. Firstly the establishment of a technology company that shall be the leading independent supplier of turrets and fluid transfer systems to the international oil and gas industry. This company will possess enabling technology to support our own growth ambition in the deepwater floating production segment. Secondly, we are creating value for our shareholders by the holding of a significant minority position in a company with a sound growth potential in a high margin industry," said Georg Sverdrup Onsrud, CEO of FPSOcean.

Scana Industrier's subsidiaries and Scana Offshore Vestby, in particular, will continue to provide equipment and services to the new company as well as existing customers within the oil and gas segment. Scana targets further growth through a wide range of products and services within the Oil and Gas business unit in general

[J-RO]

Nice board here. Marked.

Regards, -Bud-

[10 bagger]

DPDW... Table Pounder..

I own a substantial position posted on my trading board...Further DD is also avil there and on the DPDW board..

The projection of per/share earnings by an analysts for 09 may seem a little high but I think that they are doable because the FSPO market will ramp up and if they secure more new build ships providing contracts for thier products.. The 08 numbers should start to ramp up with the next quarter giving guidance as to the magnitude of DPDW's inclusion in the new build market.. 08 could be a bit of a stretch if indications are not present in the upcoming qtr.. As of now I look for EBTIA to come in at $0.16 to $0.19 in 08 and $0.31 to $0.38 in 09...These numbers are wide for 09 because there is a possibility of shipbuilding contracts either being delayed or CXL. due to the O&G market outlook 2 years from now.. FPSO's will be immune from any downturn in oil prices as they are storage and processing facilities for oil already in the ground/sea bottom that has been discovered and that need processing..

It appears with the added interest in new build tecnology at Day-rate levels never seen before,, equiping older mid depth with up-to-date technology will increase orders at DPDW,, and the projection's above will fall.. I think 09 could see EBTIA to be $0.42 to $0.46.. I wait for the soon to be released numbers for the current reporting period to firm up this year's EBTIA numbers but since I made the $0.16 to $0.19 projections analyst's have raised EPS projections by 40%.. Hank

[SageWise]

Floating Production Storage and Offloading (FPSO) Market Summary
By Jeni Hyland, Market Analyst,
Quest Offshore Resources
http://www.offshoresource.com/pdf/Feb08OS.pdf
Introduction
The world’s first FPSO was introduced in 1977 on Shell’s Castellon field in the Mediterranean Sea. It would not be the first for long. In the very next year, Petrobras converted
a tanker and deployed this new FPSO concept in its Garoupa field. The FPSO market has come a long way since its inception in the late 1970s. Offshore technology was still in its infancy and the tanker market was struggling due to escalating oil costs caused
by conflict in the Middle East, which included the closing of the Suez Canal. Away from this volatile region however, offshore oil
exploration was already gaining momentum, and the industry saw a use for these idle tankers. In the early years, FPSO units were
mainly conversions. It wasn't until the 1980s that the first purpose-built units were delivered. In recent years, high oil prices and strong demand for oil have boosted marginal
oilfield economics making their development more attractive to operators. A large number of these oilfields will utilize FPSO
units - both newbuilds and conversions alike. Attested as a cost-effective means of developing marginal, deepwater and early production/phased offshore fields worldwide, the global fleet will continue to grow into the future. Just this year, 12 new FPSOs came online. In the past five years, 56 FPSOs have
come online and in the next five years, the market figures to see the start up of a minimum of 103 FPSOs, an increase of 184%.
Forecasted Demand
Recent years have seen a rapid increase of the global fleet, prompted in part by an increased demand for drilling units which
has reduced the number of semi-submersible rigs available for conversion. However, conversions and purpose built vessels are both being deployed in nearly equal numbers. Forecasted activity covering the period to 2012 alludes to Africa and Asia dominating
FPSO demand. Remote infrastructure in both Africa and Asia is likely the leading driver for the development of FPSOs, coupled
with large blocks and phased developments in Africa. Together these two regions comprise 56% of the current worldwide
Floating Production Systems (FPS). FPSOs will make up nearly 60% of the FPS market during the next five years. The FPSO market
is being led by Brazil and West Africa with China, Australia, India, Indonesia, Malaysia and even the Falkland Islands expected as possible future areas for development of FPSOs. Powerhouse deepwater regions include Angola, Nigeria, Brazil and the US
Gulf of Mexico, with the first three seeing plenty of FPSO activity, followed by Mexico and Australia. Deepwater is only one of the many drivers contributing to the growing FPSO market.
New Frontiers
The US Gulf of Mexico, currently saturated with hubs for subsea tiebacks, will soon test out its first FPSO. The level of success
experienced with Cascade and Chinook will likely determine the future of FPSOs in the Gulf of Mexico. Additionally, OPE introduced its Satellite Services Platform, a bowlshaped
FPSO, that is more stable for environments as harsh as the US Gulf of Mexico. This purpose-built vessel does not even
resemble a ship but will serve the same function. Sevan Marine and Petrobras also have roundship FPSO designs. The first roundship FPSO began production last year, designed by
Sevan Marine and operating for Petrobras. Other interesting design concepts have been mentioned, such as a multi-faced FPSO
designed for ice breaking, perfect for arctic conditions. This FPSO concept is a likely contender for the Sakhalin 5 development. Additionally, the first drilling FPSO (FDPSO)
will come online in the middle of 2009 offshore Congo for Murphy Oil. As with other areas of the offshore E&P Industry, the introduction of new technologies figures to significantly
contribute to the continuing growth of the global FPSO market.
Players
It’s interesting to note that 7% of all operators will control 37% of FPSOs covering the period to 2015. These operators include
Petrobras, Total, ExxonMobil, Chevron, and Shell. Shell and Petrobras were pioneers in this development concept, and neither has strayed very far from the tried and true concept. Petrobras alone expects to bring online 14 FPSO between 2008 and 2012. Petrobras leases the majority of their FPSO fleet (FPSO contractors include the likes of Modec, SBM, Bluewater, BW Offshore, Prosafe and Fred Olsen Energy, to name a
few). SBM and Modec make up over 25% of the current leased FPSO fleet. Keppel Shipyard and Jurong are the two shipyards most active in converting and building new FPSOs for contractors. Aker Floating Production, Sevan Marine and Prosafe plan to bring 12 new FPSOs (4 each) into the leased fleet before the end of 2009.
Conclusion
While the appearance and functionality of the FPSO may be changing, and its popularity soaring, it is unlikely this growth will come to a halt anytime soon. This popularity is attributed to large deck areas, relatively short lead times on conversions, and offloading to storage tankers that eliminates the need to install pipeline exports. These cost effective characteristics ensure the global fleet will continue to grow well into the
future.

[SageWise]

Pipeline and FPSO growth driving increased need for advanced offshore vessels
http://bergengroup.no/publish_files/PresentationBergenYards.pdf

[10 bagger]

http://www.oslobors.no/ob/aksje_kursutvikling?menu2show=1.1.2.1.&p_instrid=ticker.ose.TTS

http://www.newsweb.no/newsweb/atmnt/kva_04_07_Eng_FINAL.pdf?id=51011

This an interesting company well diversed but has gotten itsef into the movement of Yachts and equipment and is in direct competition with Dockwise a much larger company in the arena.. Dockwise also losses money.. Thier acc. of may or may not work because of the culture in the Norwegian offshore and drilling service industries but the links above will give you more than you will ever need to make a judgement call.. I will do some research on it this weekend and tell you what I think..hank

[10 bagger]

Thoughts from an old man...

All this talk of the market going down to 1929 levels and the market being in freefall tomorrow and next week seem a little self destructive to me.. The most bearish among us and that give the us the most negative opinion,, are in cash and have been so for as long as I can remember.. If I was to take a quick look a the performance of the stocks that we follow and how they have held up I need to go no further than BTHB which as of today's close is up 4.88% since the start of the contest in early Jan. 2008..

As I said "up" it should demonstrate that as a collective group we shine and our collective minds beat any of the pundants of doom and gloom that seem to appear on any down day on CNBC... Boone Pickens (who I respect) appears and forcasts that Oil will go down and it has gone up 12%.. Long term he might be right but at present he's not.. Interest rates that were to rise because inflation was around the corner are 40% lower and finanical community which has been parking bad paper in the hands of thier Bagholders are getting thier due in the price of thier stocks..

We,, here on VMC are Not Wall Street or infact any street that has any finanical ties.. We research,, buy value and once in awhile take a flyer on a story stock but,, never stray far from our goal to make money.. Some come aboard for advice,, some give thier knowledge and some seem to find something in this market to distrust at every turn.. The companies that most of us follow are small and thier management can't hide from transparency.. We seek out the good and punish the bad but always we do so to continue being on top and own companies that not only perform but that project growth and increased share price..

So the next time Doom and Gloom appear just ask how BTHB selections are doing because thats where most of us,, think,, invest and spend our days.. Not chasing SDS,, OID or what ever market negative equalizer of the day.. Because, we have the true market equalizer and stock portfolio protector here.. It's our collective abilities to search and invest in companies that not only perform,, but make money in the market..

Lighten up a little and find stocks to invest in,, let the sorrow remain on CNBC and the next time someone there talks about charts and up and down volume,, remember that the best days to buy obscure small companies is when thier sky and not ours is falling.... hank

[JoeSmith]

FPSO Espirito Santo

Hi 10 bagger, congrats on your DPDW buys. Here's some dd on a FPSO heading to Brazil.

The FPSO Espirito Santo is being converted in Singapore now.
link to pictures #msg-26404097

"The FPSO unit will be leased by a SBM/MISC joint venture to the BC-10 Consortium operated by Shell for the development of the BC-10 field in Brazilian waters of the Campos Basin"

SBM Offshore N.V. has the conversion contract.
SBM Offshore N.V. Receives Orders Worth USD 850 Million; Receives FPSO Contract From Shell
Monday, 6 Nov 2006


#msg-26450412 This link shows how the deepwater field is connected to the FPSO through a device called a BSL or Bend Stiffener Latcher.

#msg-26419567 Closeup of a BSL on a FPSO

here is the tie in with Deep Down (DPDW)
HOUSTON, Jan. 30 /PRNewswire-FirstCall/ -- Deep Down, Inc. (OTC Bulletin Board: DPDW - News) announced today that three Bend Stiffener ("BS") Latchers, for the BC-10 project, were shipped to Singapore. These BS Latchers will be installed on the Client's Floating Production, Storage and Offloading vessel ("FPSO") which will be bound for Brazil upon its completion. An FPSO is a type of floating tank system used by the offshore oil and gas industry. It is designed to receive oil or gas produced from a nearby platform(s) and store it until the oil or gas can be offloaded onto waiting tankers, or sent through a pipeline.

And some DPDW BSL dd #msg-26969186

Espirito Santo specs

http://www.singlebuoy.com/HTML/LeaseOperations/Images/systems/Espirito.jpg

[10 bagger]

Nexus` FPSO projects on track - firm market interest

Arendal, 23 January 2008: The project development related to the two
FPSO`s Nexus#1 and Nexus#2 is progressing according to plan. Several
interesting prospects for employment of the vessels are being
pursued. Nexus retains its positive market outlook and is confident
it will secure attractive contracts for the vessels.

The company had no revenues in the fourth quarter, compared to USD
145 thousand in the corresponding quarter of 2006. For the full year
2007, revenues were USD 193 thousand caompared to USD 145 thousand in
2006. The revenues are related to paid vessel placement studies.
NEXUS had negative EBITDA of USD 1.3 million, compared to USD 0.4
million in the fourth quarter 2006. For the full year EBITDA was
negative with USD 4.3 million compared with USD 0.7 million in 2006.
In the fourth quarter of 2007 the company had a net loss before taxes
of USD 0.4 compared with USD 0,1 in the corresponding period 2006,
while the full year result was a loss of USD 2,9 million against a
loss of USD 0,2 million in 2006.

`Our two projects developed according to plan in 2007. There are
several potential clients in the process of evaluating the technical
solutions for bringing their oil resources to the market place, where
the Nexus FPSO with its harsh environment capability and early
delivery position should represent an attractive opportunity` says
CEO Anders Holm.

During 2007 the two vessels under order have been marketed
world-wide. Market opportunities have actively been pursued in all
main geographical target areas through bids, paid studies and
dialogue with possible clients. Prospects have been targeted
globally. The vessels are designed for operation in the North Sea,
the Atlantic West of Shetland and East of Canada, the Norwegian Sea
and the Barents Sea. Also the Gulf of Mexico and offshore Australia
are regions where the Nexus FPSOs will be well suited due to its
specifications and the high hurricane and typhoon activity in these
areas.

The company has fully financed both the first vessel and the
operational cost needed to run the company during the construction
period until the mid of 2009. During 2007 another MUSD 100 was
raised as part of the financing for the second vessel. Another USD
585 million is needed to complete the financing. According to the
company`s financial strategy parts or all of this will be raised
during the first half or 2008. The company is preparing for this,
and thus the 2007 financial statements have been prepared on a going
concern basis.

Attached: Fourth quarter and full year report 2007

For further information:
Anders Holm, CEO, [phone]
Arild Bårdsen, CFO, [phone]

Or visit
www.nexusfp.no

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)

[10 bagger]

EOC Limited EOC.ol...

15 Hoe Chiang Road #15-01 Tower Fifteen Singapore 089316
Tel: [phone] (Main) Fax: [phone]
(Co. Reg. No. 200702224N)

Press Release...

1QFY08 Net Profit Swells Almost 10-Fold; Declares US$0.0204/share Maiden Dividend...

Revenue surges 12x as two new vessels boost charter income..

Decisive fleet expansion and move into new regional markets will propel future performance..



Singapore, 11 January 2008 – EOC Limited,,, the Group one of Asia's largest and most dynamic specialist operators of offshore construction & production vessels, has announced a spectacular leap in net profit.

For the three months ended 30 November 2007 (1QFY08), net profit surged 976.2% to US$8.2 million as revenue ballooned 12x to US$27.2 million. 1QFY08 EPS grew from US$0.013 to US$0.0742, the latter on an enlarged weighted average share capital of approximately 110.96 million shares.

Said EOC‟s CEO Lim Kwee Keong about the glowing results: “Our timely fleet expansion has enabled us to ride high on the buoyant offshore oil & gas sector. We are happy to reward our shareholders with a dividend of USD0.0204 per share – the first since EOC‟s successful Oslo BØrs-listing last October.”

What pitched revenues to new highs was the maiden 1Q contribution in charter income from two vessels: heavy lift accommodation crane barge Lewek Chancellor and heavy lift accommodation pipelay vessel Lewek Champion, which came onstream in March and August 2007, respectively. Another revenue booster came from new construction services contracts worth USD2.8 million. The overall gross margin remained impressive, at 52.4%, despite the slightly lower margins earned on these construction services contracts and new third-party chartering contracts

During the quarter, EOC successfully diversified its customer base beyond Southeast Asia, bringing Australia and the Middle East into its fold as well. Customers outside Southeast Asia accounted for 78% of the Group‟s revenue. On the company‟s future growth, Mr Lim added: “Insatiable demand for energy will continue to underpin high oil and gas prices and, therefore, demand for offshore construction and floating production services. Enquiries for charters and offshore construction services are high, our existing fleet is optimally employed and we have on schedule the delivery of a floating production storage and offloading vessel (FPSO) in 4Q FY08.”

EOC, whose maiden dividend will be paid on 11 January, became the first Singapore-managed and Singapore-incorporated company to successfully list on the Oslo BØrs. EOC and parent SGX-listed Ezra Holdings, which holds a 48.9% stake in the firm, provide value-added offshore support services throughout the life cycle of oil and gas production, from exploration support, through facility development, production, operations, maintenance and abandonment.

----------------------------------------------------

About EOC Limited EOC Limited offers offshore construction and floating production services, installation and commissioning work, as well as transportation services which support the entire life cycle of the offshore oil & gas production phase.

It manages heavy lift two accommodation crane barges, Lewek Conqueror and Lewek Chancellor; a heavy lift accommodation pipelay vessel, Lewek Champion; and Lewek FPSO 1 (delivery in FY08). These vessels are utilised in various support activities which last through facility development, production, operations, maintenance and abandonment.

The firm operates in the Middle East, Australia, Thailand and the Philippines, and is the Construction & Production arm of Singapore Exchange-listed Ezra Holdings Limited, the largest owner/operator of an integrated range of offshore support vessels for charter across a broad spectrum of the oil & gas offshore support services supply chain.

EOC, 48.9%-owned by Ezra, was listed on the OTC of Norway on 23 April 2007 and promoted to the Oslo BØrs on 3 October 2007.

[10 bagger]

CONTRACT FOR MSV REGALIA AT MCP-01

Prosafe has been awarded a contract by Aker
Kværner
Offshore Partner AS for the provision of the MSV
Regalia accommodation and construction support rig
at the TOTAL E&P UK operated platform MCP-01 in
the
British sector of the North Sea. This contract
confirms the Letter Of Intent (LOI) which was
signed between Prosafe and Aker Kværner Offshore
Partners in March this year originally for a firm
period of seven months with an additional one
month
option.

The agreed contract calls for a firm utilisation
period of nine months and three weeks with an
additional three weeks option. The MSV Regalia
will
commence on-site operations in January 2008.

Total value of the contract excluding the option
period is about USD 63 million.

Prosafe is the world`s leading owner and operator
of semi-submersible service rigs and a major owner
and operator of floating production and storage
vessels. Operating profit reached USD 150 million
in 2006. The company operates globally and employs
approx. 1,400 people, and is headquartered in
Larnaca, Cyprus. Prosafe is listed on the Oslo
Stock Exchange with ticker code PRS. For more
information, please refer to www.prosafe.com.

Larnaca, 27 December 2007
Prosafe SE


For further information please contact:

Arne Austreid, President and CEO
Phone no: [phone]

Karl Ronny Klungtvedt, Exec. Vice President and CFO
Phone no: [phone]

Robin Laird, President Offshore Support Services
Phone no: [phone] / [phone]

[10 bagger]

FIDELITY HAS 4,97%
Oslo Børs has received Report of Significant
Shareholdings from Fidelity Investments Ltd. where
it is stated that they on behalf of investors have
sold 150,200 shares in Prosafe ASA. The date
of which the 5% threshold was crossed is 18
December 2007.
The new holding is 11,421,450 equal to 4.97%.

[10 bagger]

LETTER OF AWARD FOR SAFE SCANDINAVIA AND MSV REGALIA

Prosafe has been awarded a Letter of Award (`LoA`)
by BP Norge AS for the provision of the Safe
Scandinavia and thereafter the MSV Regalia
accommodation support rigs at the Valhall offshore
facility in the Norwegian sector of the North Sea.
The firm duration of the contract linked to the
LoA commencing mid-November 2008 is two years with
a six-month option.

Total value of the contract linked to the LoA
excluding the option period is about USD 166
million. The option period, if exercised, has a
value of about USD 44 million.

Prosafe is the world`s leading owner and operator
of semi-submersible service rigs and a major owner
and operator of floating production and storage
vessels. Operating profit reached USD 150 million
in 2006. The company operates globally and employs
approx. 1,400 people, and is headquartered in
Larnaca, Cyprus. Prosafe is listed on the Oslo
Stock Exchange with ticker code PRS. For more
information, please refer to www.prosafe.com.

Larnaca, 14 December 2007
Prosafe SE


For further information please contact:

Arne Austreid, President and CEO
Phone no: [phone]/[phone]

Karl Ronny Klungtvedt, Exec. Vice President and CFO
Phone no: [phone] / [phone]

Robin Laird, President Offshore Support Services
Phone no: [phone] / [phone]

[10 bagger]

Aker Floating Production....

Although there is a market in Aker in Norway the Bid/Asked spread and lack of volume make it next to impossible to own Aker outside of Norway..

This is part of a recent PR Release put out by Aker and explains the need for FPSO's.. Currently, 109 offshore projects are in the pipeline and will potentially require floating production systems. This is an increase again of FPSO units necessary to fill the needs of O&G exploration to get oil to the market.. At present there is a backlog at the major shipyards that would build FPSO's,,, building Harsh Deep Water Drilling Rigs,, the same rigs that will produce added needs for FPSO's.. The market will continue to tighten and Day Rates for FPSO's will esculate to the level where prices paid for tankers used for conversion to FPSO's will compete with the actual commerical value of some tankers used in liquid transport... hank
-----------------------
Going for Benign Waters...

High oil prices have spurred oil companies to invest in the development of smaller offshore fields and fields previously considered too costly to develop. Many of these fields are situated in the benign waters of West Africa, Southeast Asia, South America, and Mexico.Key FPSO industry market segments are:

Benign waters, medium to small fields...

Large, engineering-driven projects...

EPIC (engineering, procurement, installation, and commissioning) contracts...

Harsh environments...

Aker Floating Production is an innovative and competitive participant in the field development segment for medium and small fields in benign waters.

According to International Maritime Associates (IMA), the FPSO industry has grown by 11.5 percent per year. Currently, 109 offshore projects are in the pipeline and will potentially require floating production systems.

IMA expects that CAPEX (capital expenditure) budgets for exploration and production spending will increase 10-15 percent over the next year, with many oil companies earmarking benign deepwater regions as their spending priority.

Many of these fields — situated in the so-called benign waters off West Africa, Southeast Asia, South America, and in the Gulf of Mexico — are candidates for FPSO production. Aker Floating Production targets these regions. The number of field development projects contracted over the next 10 years is expected to be high, based on previously documented oil and gas discoveries.

Smaller offshore fields are ideally suited for FPSOs, because FPSO-based field development offers the shortest time to market — from project start-up to producing “first oil.” Going on-stream rapidly enables operators to generate an early cash flow. Moreover, deepwater fields have few viable alternatives to using an FPSO solution. The speed with which Aker Floating Production can get Aker Smart FPSOs built to specification and field deployed represents a significant competitive advantage.

High drilling rig charter rates have made the building of new rigs attractive; and drilling contractors will have available a surge of new deepwater drilling vessels during the next few years. Greater drilling resources will eliminate some of the constraints on exploration and development that have slowed deepwater projects in recent years.

Many of the offshore projects that will move to the field development stage during the next five years stem from exploration activity in the late 1990s, as well as the early part of the current energy cycle. We offer oil companies proven, cost-effective solutions for producing oil and gas from such untapped reserves.

Benign-water regions of the world sometimes become stormy. FPSO sailaway during typhoons and hurricanes is safe, rapid, and without petroleum releases. Security is engendered by the FPSO mooring system selected for each field development project.

From project initiation through life-of-field operation, maintenance, and upgrades, Aker Floating Production has strategic alliances with leading subsea field production equipment manufacturers such as Aker Kvaerner, and providers of offshore field installations and subsea oilfield services.

Aker Floating Production simplifies and accelerates field-development projects in benign waters worldwide....

[MikeDDKing]

Thanks for all your responses on SEVAN.ol.

I'm glad that my questions are helping you better understand your SEVAN investment thesis. SEVAN is up again today so you investment is making you money. Congrats!

I'm still scratching my head on SEVAN. Your earnings estimates seem quite optimistic. For 2008 analysts are estimating a loss of $0.28/share whereas you are estimating a profit of $0.70/share. In 2010 you are estimating earnings of $3.60/share. If we use the current share count which I think will be too low, that translates to earnings of $581M. That is pretty close to where I think revenue will be ignoring Kanfa in 2010. While I think your guess of additional drillers and FPSO's makes sense, I don't think those will be generating revenue by 2010 based upon past history.

Your statements about larger FPSOs and water desalination are perhaps the most salient points. Maybe I need to be looking out further than 2010 to really appreciate what Sevan's revenue and earnings will look like.

I still need to spend some time looking at Kanfa to understand that part of the operation and the corresponding revenue and earnings capability.

I do agree that the rates on the first two leases were low as they needed get someone to be the guinea pig.

I hope to come back later and dig further on Sevan but I'm still not seeing the obvious buy.

Mike

[MikeDDKing]

According to Reuters, the earnings estimate for Sevan for 2008 is a loss of $0.28/share. Analysts are projecting revenue of $155.68M. There are 9 analysts making estimates.

http://uk.reuters.com/investing/quotes/estimates?symbol=SEVAN.OL

Mike

[10 bagger]

Sevan.. mike

Thanks for the head prodding.. I spent until 4AM reading each and every PR Release from Sevan and am as confident in my projections as ever.. The first 2 leases were the only way that Sevan would ever float and they took the opp to have units out there.. The lease day rate is probably the cost structure of those units and that is why they were financed.. Future units at normal Day Rates will far exceed these first two.. The building of new units will be much larger as that is where the industry is going.. On a cost basis Sevan builds for converted tanker prices and has equipment that has a much longer life span.. I would not find it that in the future we see 3 Mil barrel Sevan FPSO Drill ships that lease out for less than $500,000.00 and have orders in the 20's for thier build.. The first few were but large models of what will become a revolutionary new way to extract and process not only oil but natural gas and WATER..Floating Desalination plants could be built at costs farless than existing pump and process units avil today.. Also keep in mind the KANFA AS sub.. hank

[10 bagger]

SEVAN.ol

Mike you seem to be correct because ther was a dupe in the Venture filing of contract and I thought one was updated on the first contract.. As to the other low ball cotract it is a short duration contract and I don't think it will last as the company with the contract has already express interest in additional contracts.. One of the Venture contracts has a 20% ownership clause and a kill date for option renewal that is close at hand.. My projections are still good as far as I am concerned.. hank

[10 bagger]

Sevan.ol.. Mike

"They will have 7 FPSO's in use by 2010. I know that the Sevan 3 was contracted to Oilexco for $370M for 5 years. That translates to $202.7K/day. If we assume that all of their FPSO's contract at the same rate, they will have revenue of $518M/year in 2010. I'm sure assuming a constant day rate for all FPSO's is quite inaccurate but that is the best I have right now. I would bet that day rates will go up over time but I have no idea how much they will increase."

I what you said there is no dispute.. But let me add the what makes Sevan the company to beat..The Sevan Driller is under a 6 year fixed contract at $400,000.00 plus per day to PetroBras.SA..

Sevan FPSO's at present have been actually test tanks and have commanded day rates of $80,000.00 to as you posted $202,000.00 to Oil.l.. Venture actually went on cotract at $164,000.00 per day..
Sevan 650 which is under construction with a capacity of 650,000 barrels will have a dayrate of around $285,000 at my best guess..

As these units get out into the harsh water enviroments and as of now the only Drilling Rigs that will drill as deep as the Sevan Driller I expect that Sevan will pick up orders for an additional 2 Sevan Drillers and 4 650,000 to 1,200,000 Barrel FPSO's..

Construction time and expense of building Sevan units are about 50% of normal drilling units and 40% of new FPSO's.. In fact new build Sevan FPSO's compete in price with FPSO conversions from X-tankers and liquid carring vessels.. Also the avil of these vessels for conversion is limited as old fleets are still trying to catch up for double hull mandates..

Sevan.ol is not playing catch up but is creating a totaly new industry baised upon thier patented tecnology..

I see the 7 units at a little different day rates than you..

#1 at $80,000 per day (I believe this day rate actually end up being $149,000..)
#2 at $164,000 per day
#3 at $164,000 per day
#4 at $202,000 per day
#1 Sevan Driller at $400,000 per day
#5 at $260,000 per day
#1 Sevan 650 at $285,000 per day
#2 Sevan Driller at $475,000 per day
#3 Sevan Driller at $500,000 per day
#2,#3 Sevan 650 at $300,000 per day
#1,#2 Sevan 1,200 at $450,000 per day

This gives me a total of $1,197,200,000.00..

What is really interesting is that the loans that have been secured at present were baised upon speculation and Day Rates that were created have revenues that equal loan values in less than 3 years..

I think that Sevan will be able to maintain a margin after deduction of cap interest costs and dep of 40% and cash flow equal to 70% of revs..

My guess for earnings are:

2008,, $0.70 per share..
2009,, $1.20 per share..
2010,, $3.60 per share..
2011,, $6.00 per share..

How close I will come is anyone's guess but I do believe that progress will also be made on Ngas and offshore water desalination plants in the near future baised upon Sevan tech..
In addition Kanfa AS, a 100% sub has landed $62,000,000 in engineering contracts this year..

Baised upon my thoughts Sevan.ol is at least a 5 bagger from here and has the possibility of being a 10-bagger.. It has what the market likes,, earnings that are predictable each time a new unit goes on lease.. These units also have lives of at least 50 years and once any field runs dry they may be moved at rates far cheaper than ripping up pipe lines from the bottoms floor.. hank

[MikeDDKing]

I can add a bit more to the day rates for Sevan.

                  Contract 
 Vessel              Date          Customer            Day Rate 
 Sevan Piranema    02/07/05 Petrobras S.A.               $99.4K 
 Sevan Hummingbird 06/02/05 Venture Production Ltd.      $70.1K 
 Sevan Voyageur    04/30/07 Oilexco North Sea Ltd.      $202.7K 
 Sevan Driller     10/25/06 Petrobras America Inc.      $401.8K 
 Sevan 300 No. 4   12/22/06 Venture Production Ltd.     $200.0K 

Note that all of the vessels other than the driller are based upon the same platform.

If I add up the numbers above and add 2 X $205K for the remaining two vessels that aren't contracted, then multiply by 365, I get annual revenue of $505.2M in 2010 when all 7 vessels are deployed. It is possible that the Hummingbird and Voyageur could have different day rates by that time because they may be on exercised options or on different contracts by that time. Of course the day rates for the vessels that haven't been contracted is just a swag. Also note that the last vessel is based upon the 650 platform as opposed to the 300 platform so it will probably have a higher day rate but I'm not sure how much higher.

Mike

[MikeDDKing]

Hank, re: SEVAN.ol....

I've been digging more on SEVAN to try and understand the economics of their business. Here is what I found so far:

They will have 7 FPSO's in use by 2010. I know that the Sevan 3 was contracted to Oilexco for $370M for 5 years. That translates to $202.7K/day. If we assume that all of their FPSO's contract at the same rate, they will have revenue of $518M/year in 2010. I'm sure assuming a constant day rate for all FPSO's is quite inaccurate but that is the best I have right now. I would bet that day rates will go up over time but I have no idea how much they will increase.

I haven't been able to find anything to guide me on what kind of margins to expect. However, if I assume that their net income is 50% of their revenue and I assume a share count of 200M shares, they will have net income of $1.30/share in 2010. There are way to many guesses in that estimate for me to be comfortable in any fashion. However, even if my estimates are accurate I would think that this would maybe support a double in prices over the next few years. Given the huge uncertainty in my guesses, I'm not comfortable enough with that to say it is a worthy investment.

The one other thing that they have is options for building of 10 additional units. I think that is a very valuable asset.

I believe they have a good business but I can't seem to get a good feel for the economics of the business. Have you developed any financial expectations or are you just investing based upon gut feel? If you have some financial expectations, what are they?

Mike

[10 bagger]

EOC.ol..

http://www.emasoffshore-cnp.com/announcements/EOCAward_AIS%20Status.pdf

[10 bagger]

Glossary of the FPSO industry..
http://www.sbmoffshore.com/PDF/GlossaryEN.pdf

[MikeDDKing]

Hank, re: SEVAN.ol....

I've been doing some DD on SEVAN and think it is a very interesting company. As you have pointed out it seems as if there is strong demand for their business. Where my DD hit a roadblock is on the financial side. Have you seen any information that indicates the following:

1. Day rates that they can charge for their FPSO's.
2. Cost per day to operate the FPSO.
3. Analyst estimates for future earnings.

I think they have an excellent business but I have a hard time determining what the business should be worth now and in the future. As you can probably see from my questions I am trying to ascertain valuation info to assess a possible investment. Any answers you might have to the questions above or other insight would be greatly appreciated. Possibly a comparison to a more established FPSO company would do the trick.

Mike

[10 bagger]

Aker Kværner ASA AKER KVAERNER AWARDED FLOATER INSTALLATION CONTRACT WITH BP NORWAY avtaler

19 December 2007 - BP Norway has awarded Aker
Kvaerner a contract for tow and installation of a
floating production storage and offloading unit
(FPSO). The FPSO will be installed at the Skarv
field in the North Sea. The total contract value
is approximately NOK 300 million.
--------------------------------------------------------------------------------

The scope of work includes pre-installation of the
15 leg mooring system, tow from South Korea to
Norway and transportation and installation of the
FPSO. The work will be executed by the Aker
Kvaerner subsidiary, Aker Marine Contractors.

`Our company has extensive experience in
installing floating production units. More than
ten projects have been executed in a period of 12
years in different parts of the world. This award
confirms our position in this exciting FPSO
market,` says Torgeir Ramstad, President for Aker
Marine Contractors.

The new-built offshore construction vessel BOA SUB
C, on long term charter for Aker Marine
Contractors, will be used for the mooring pre-
installation. The vessel is equipped with diesel-
electric propulsion, dynamic positioning class, 3
400 tonnes active heave compensated crane and 600
tonnes anchor handling winch. The vessel is
tailored to perform mooring and subsea
installation work up to 3000 meters in depth. The
BOA SUB C vessel is currently engaged in several
projects in the Gulf of Mexico. Other vessels for
this operation will be sourced from Maersk Supply
Service.

Pre-installation of the 15 leg mooring system will
be executed in 2010, while transportation and
installation of the complete FPSO will be executed
in 2011. The planning and engineering will
commence in January 2008.

ENDS

For further information, please contact:

Media:
Siw Anett Enerud, Communications manager, Aker
Kvaerner Products & Technologies. Tel.: +47 22 94
71 92, Mob: [phone]

Investor relations:
Lasse Torkildsen, SVP Investor Relations, Aker
Kvaerner. Tel: [phone]

Suppliers:
For further information about sourcing and
potential subcontracts for this project, please
contact Richard Reynolds, vice president global
supply chain. Tel.: [phone]

Career opportunities:
Visit
http://www.akerkvaerner.com/Internet/CareerCentre

AKER KVÆRNER ASA, through its subsidiaries and
affiliates (`Aker Kvaerner`), is a leading global
provider of engineering and construction services,
technology products and integrated solutions. The
business within Aker Kvaerner comprises several
industries, including Oil & Gas, Refining &
Chemicals, Mining & Metals and Power Generation.
The Aker Kvaerner group is organised in a number
of separate legal entities. Aker Kvaerner is used
as the common brand/trademark for most of these
entities.

The parent company in the group is Aker Kværner
ASA. Aker Kvaerner has aggregated annual revenues
of approximately NOK 50 billion and employs
approximately 24 000 people in about 30 countries.

Aker Kvaerner is part of Aker (www.akerasa.com), a
group of premier companies with a focus on energy,
maritime and marine-resources industries. The Aker
companies share a common set of values and long
traditions of industrial innovation. As an
industrial owner with a 40.27 percent holding in
Aker Kvaerner, Aker ASA takes an active role in
the development of its holdings.

Aker Marine Contractors provide marine operational
and contracting services to the oil and gas
industry world-wide. These services include
concept development, detail engineering,
procurement, fabrication, and the performance of
marine operations such as sub-sea construction and
installation activities. Aker Marine Contractors
shoulder the responsibility for substantial
values, especially when towing and installing
floating facilities, gravity base structures, and
platform decks. Aker Marine Contractors together
with partners possess the competence and the
specialised equipment needed to successfully plan,
engineer, and install subsea structures, risers,
umbilicals, flowlines and mooring systems in ultra-
deep waters.

This press release may include forward-looking
information or statements and is subject to our
disclaimer, see our web-pages www.akerkvaerner.com

[JoeSmith]

I saw this Sevan FPSO ship on the "Ship of the Day" site
and just had to post this picture.

"The Sevan Voyageur left Yantai Raffles Shipyard,China on November 9, 2007. The platform was placed onboard of the semi-submersible heavy load vessel 'Tai An Kou', which will enter the port of Rotterdam this evening where she will unload the Sevan Voyageur. The Sevan Voyageur will then be towed to Keppel Verolme Shipyard where she will be built off for topside hook-up and commissioning."

http://shipoftheday.blogspot.com/2007/12/sevan-voyageur.html

http://shipoftheday.blogspot.com/