We are in the beginning stages of a long lasting FPSO cycle.
Glossary of the FPSO industry..
A Floating Production, Storage and Offloading vessel (FPSO; also called a "unit" and a "system") is a type of floating tank system used by the offshore oil and gas industry and designed to take all of the oil or gas produced from a nearby platform (s), process it, and store it until the oil or gas can be offloaded onto waiting tankers, or sent through a pipeline.
A Floating storage and offloading unit is a similar system (FSO), but without the possibility to do any processing of the oil or gas.
History... Oil has been produced from offshore locations since the 1950s. Originally, all oil platforms sat on the seabed, but as exploration moved to deeper waters and more distant locations in the 1970s, floating production systems came to be used.
Oil produced from offshore production platforms can be transported to the mainland either by pipeline or by tanker. When a tanker solution is chosen, it is necessary to accumulate oil in some form of tank such that an oil tanker is not continuously occupied while sufficient oil is produced to fill the tanker.
Often the solution is a decommissioned oil tanker which has been stripped down and equipped with facilities to be connected to a mooring buoy. Oil is accumulated in the FPSO until there is sufficient amount to fill a transport tanker, at which point the transport tanker connects to the stern of the floating storage unit and offloads the oil.
An FPSO has the capability to carry out some form of oil separation process obviating the need for such facilities to be located on an oil platform. Partial separation may still be done on the oil platform to increase the oil capacity of the pipeline(s) to the FPSO.
Floating Production, Storage and Offloading vessels are particularly effective in remote or deepwater locations where seabed pipelines are not cost effective. FPSOs eliminate the need to lay expensive long-distance pipelines from the oil well to an onshore terminal. They can also be used economically in smaller oil fields which can be exhausted in a few years and do not justify the expense of installing a fixed oil platform. Once the field is depleted, the FPSO can be moved to a new location.
Indicators suggest that growth of floating production clearly has room to expand, and the underlying market fundamentals have never been stronger because FPSOs provide a development option being studied in more than 140 projects in the planning stages.
Many of the projects coming on line during the next 5 years stem from exploration activity in the late 1990’s as well as the early part of the current energy cycle. The number of active deepwater drilling rigs is projected to increase substantially during the next 4 years because of high day rates, and the FPSOs will continue to provide the best solution,, if not the only solution for most of the soon to be discovered fields.
We are in the beginning stages of a long lasting FPSO cycle.
Companies of interest:
Aker Floating Production:
Fred. Olsen Production:
FPS Ocean http:
MPF Corp http:
Nexus Floating Production:
Home Page; http://akerfloatingproduction.com
Recent Press Releases;http://akerfloatingproduction.com/index.cfm?path=251
Aker Floating Production... Stock if thinly traded and caution must be made when buying or selling.. The spread is usually 10% betwen the bid and asked.... hank
AKFP.ol is a startup company with sufficent financing to become fully operational.. Contracts in place amount to over $900,000,000.00 USD.. It's plan to profits are 12 to 18 months away and AKFP.ol should be cash flow positive within 12 months.. Aker Floating Production plans to build, own and operate a fleet of Aker Smart FPSOs targeted at midsized and smaller oil companies through the conversion of tankers based on a flexible modular design....
Reliance project execution are progressing according to plan...
• Aker Floating Production’s Subsidiary Aker Borgestad Operations has signed a USD100 million operations and maintenance contract with Reliance Industries. This adds to the USD 750 million FPSO bare boat contract signed with Aker Floating Production in May 2007.
• AKFP.ol is working on several business opportunities suitable for the generic FPSOs Aker Smart 2 & 3.
It is expected (IMA) that capital budgets for exploration and production spending will increase 10-15% in 2007, with many oil companies earmarking benign deepwater regions as their spending priority. High drilling rig rates have made building of new rigs attractive; and drilling contractors will have available a surge of new deepwater drilling vessels during the next few years, eliminating some constraints on exploration and development that have slowed deepwater projects in recent years.
Several new opportunities for Aker Smart 2 and Aker Smart 3 have emerged during the 3rd quarter of 2007.
As has been the case for the Reliance MA contract, where Aker Floating Production together with Aker Kvaerner Subsea are providing the complete field development, most of our prospective clients have stated that they welcome the opportunity to be offered a complete package, thus;
i. offsetting lack of resources,
ii. enhancing fast track development opportunities,
iii. offsetting risk to Operators’ by providing FPSO and Subsea alignment.
The Operation and Maintenance contract-length (O&M) entered into between Reliance and Aker Borgestad Operations coincides with the bare boat contract between Aker Floating Production and Reliance concluded 10 May 2007. The minimum contract value for the O&M over 5 years would be in excess of USD 100 million.
The combined contract value for a minimum of 5 years is in excess of USD 850 million compared to the significantly lower figures (USD 600 mill) communicated to the market in connection with the Letter of Intent in January 2007. The bulk of this increase is related to hardware scope increases and thus reflected in the bare boat rate.
RIL has the option to call an initial 5, 7 or 10 year contract with option periods maximizing contract length to 10 years.
RIL also has an option to purchase the FPSO from before completion until the end of the option periods.
Aker Smart 2 was leased to Koch as a storage tanker 17 July 2007, while terminated 27 October 2007. Hence repair and upgrade preparations have been initiated with a view to entering Jurong Shipyard during 2Q 2008 for the conversion job.
Aker Smart 3 has been on a storage contract with Koch Inc since 20 October 2006. The end of the last option period is 1st quarter 2009.
The conversion of Aker Smart 1 at Jurong shipyard in Singapore is progressing according to plan. The separation and topside manifold modules fabricated at Lamprell are being completed and the modules will arrive in Singapore mid November and mid December. Two large power generation modules, one power distribution module will arrive at Jurong Shipyard from Aibel in Thailand within November.
The fabrication progress at other fabrication sites is monitored closely. The schedule for delivery to Jurong in the period between late November 2008 and early January 2008 is according to plan.
The conversion of Aker Smart 1 is entering into a phase where detailed planning and supervision of yard work will be of even higher priority. Aker Floating Production has stepped up their presence in Singapore and now has a team of 35 professionals at the Jurong Shipyard.
The Organization has been strengthened further to ensure current and future performance expectations. Aker Floating production will by end of 2007 have 24 employees. The Aker Floating Production management has been strengthened by the recent employment of Mr. Brian Watkinson and Mr. Asle Bjørnstad .
From AKER's web site... http://www.akerasa.com/
Aker Is AKFP.ol's funding company... Ownership: 50.1%
Aker Floating Production is entering the “own-and-operate” FPSO market with a fleet of “Smart FPSOs”. Our first FPSO will be completed 3rd Quarter 2007.
We have utilized the strength of an experienced management and the competence that lies within Aker in the development of our “Smart FPSO” design. We standardize through modularization where each function is planned and prepared for on dedicated locations. Our design allows functions to be added also offshore – making the FPSOs able to grow together with the needs of our Clients.
We have made some functions so flexible that they are common for most applications. Our oil separation train is one example together with flexible utility systems. This allows us to start building our FPSOs before we have secured a lease contract – giving our Clients an opportunity to produce earlier.
We are providing innovative solutions based upon proven technology - making us competitive also on shorter contracts.
The largest Aker companies are Aker Kværner, Aker Floating Production, Aker Drilling, Aker Exploration, Aker Oilfield Services, Aker American Shipping, Aker Seafoods, Aker BioMarine and Aker Philadelphia Shipyard......
This company has a very confusing share structure along with interlocking ownership of several companies.. While a large sized player in the FPSO market it's results seem to be overshadowed by it's quest for ownership of other companies...
BW Offshore (Bergesen Worldwide Offshore Ltd..) indicates that is one of the world`s leading FPSO contractors. The company`s operational head office is in Norway, with assets operating in Mexico, Nigeria, Mauritania, Malaysia and Russia. BW Offshore has 25 years experience and a track record of 12 successfully delivered FPSO projects.
Through its subsidiary APL, BW Offshore is a market leader in the development, production and sale of advanced loading and production systems;
Submerged Turret Loading (STL), Submerged Turret Production (STP) and offshore LNG terminals. APL`s technology has been selected as a solution for production vessels, storage vessels and oil and gas tankers in a wide range of field developments.
BW Offshore has a global network with offices in Europe, Asia Pacific, West Africa and the Americas. 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 900 employees and is listed on the Oslo Stock Exchange with ticker code BWO.ol
Recent PR Reports:
BW Group has the following fleet:
Gas Carriers 94
Dry Bulk Vessels 17
FPSOs - FSOs 9
The market for floating production, storage and offloading (FPSO) vessels is heating up as more oil production moves offshore and companies seek to bring on new fields as
quickly as possible. The number of FPSOs in operation has doubled — from 50 to 104 — since 1998, according to Carnegie Securities Research, which predicts that the number of
FPSOs will again double by the end of 2010.
As more new oilfields are located in deep water, or in harsh environments with difficult seabed geology, FPSOs have become increasingly popular because fixed platform solutions
are expensive and technically challenging. High oil prices have also boosted the market for FPSOs. Graham Westgarth, president
of Teekay Marine Services, a unit of Bahamas- based Teekay Shipping, says. “Generally speaking the industry has been growing year on year. However, as the oil price has climbed the growth seems to have accelerated over the last couple of ears,” he said. Both new builds and conversions of old tankers appear to be picking up speed, but conversions are particularly popular because they allow the vessel to be deployed just 18-
24 months after the contract is awarded, said Svein Moxnes Harfjeld, CEO of Norway’s Bergesen Worldwide Offshore. Teekay’s
Westgarth points out that when oil prices are high, conversions are preferred because they “accelerate the time in getting oil to market.”
Tanker owners are making handsome profits selling old ships for conversion to FPSOs. In February, Norwegian FPSO owner and operator Prosafe paid Greek shipping company Dynacom some $45 million for a single-hull VLCC that Prosafe will convert to
an FPSO. Dynacom had paid just $17.1 million for the ship in 2003, according to the Norwegian shipping newspaper Tradewinds
FPSOs are also commanding higher dayrates. In July, Canada-based Talisman’s Norge subsidiary extended its contract for
the Petrojarl Varg FPSO operating in the North Sea. The FPSO’s owner, Norway’s Petrojarl, increased the terms to $220,000 per day, from $90,000 per day plus $6.30 per barrel produced. If the previous rate exceeds the new rate, the higher rate will be applied.
In another sign that the FPSO industry is experiencing significant growth, it is undergoing rapid consolidation. Bergesen, which has a fleet of eight FPSOs, recently acquired a 15.3% stake in Prosafe, which owns and/or operates six FPSOs. Meanwhile, Prosafe just two days earlier bought a 29.57% stake in Petrojarl, which owns a fleet of four harsh-environment FPSOs
Bergesen’s Harfjeld wrote in an email, “The FPSO industry is fragmented and is very resource demanding. Combining resources
through consolidation will create larger entities to support increased demand from customers.”
The FPSO business is also attracting new players. According to Carnegie Securities, there was one pure-play FPSO company listed
on the Oslo stock exchange at the beginning of 2006. Today there are four. Some companies with no FPSO experience are teaming up with seasoned players in order to enter the market. In February, shipper Teekay entered into a 50/50 joint venture with FPSO owner and operator Petrojarl. Bjorn Moller, Teekay’s President and CEO, said when the venture was launched that “offshore oil exploration and production is expected to grow significantly,” making FPSOs an “attractive growth
Once the rig is installed and production starts, the oil has to be transported to the shore. This job is being carried out by FPSO. A Floating Production, Storage and Offloading vessel (FPSO; also called a "unit" and a "system") is a type of floating tank system used by the offshore oil and gas industry and designed to take all of the oil or gas produced from a nearby platform (s), process it, and store it until the oil or gas can be offloaded onto waiting tankers, or sent through a pipeline.
Latest year and 4th Qtr:
Recent PR Releases:
For Year Ended 31st August 2007
•EBITDA increased by 120.1% from USD 8.3m to USD 18.2m
•Group Net Profit After Tax rose 83.4%to USD 11.4m on a higher turnover of US D32.0m
•Weighted Average Earnings Per Share (basic and diluted) Increased 29.1% from 10.48cts to 13.53cts
•Return On Equity remains healthy at 21.7% in FY2007, reduced from 36.2% (due mainly to equity raising exercise conducted in April 2007)
Emas Offshore Construction and Production is the leading owner and operator of FPSOs and offshore construction contractor based in Asia. It adds value through the life cycle of oil and gas production, from exploration, through facility development, production, operations, maintenance and abandonment. They operate throughout Australasia in 4 major business segments:
1. Floating Production Storage and Offloading
2. Pipelay, heavy lift, transport and installation
3. Accommodation barges and marine support services
4. Engineering of turret mooring systems, heavy lift, transport and installation.
The unique integration of engineering, offshore construction, operation of FPSOs/FSOs and marine support vessels differentiates EOCP from its competitors, offering synergies and cost savings through the life of the field development.
Headquartered in Singapore, EOCP has a healthy backlog of long term contracts with multinationals, national oil companies and independent operators. EOCP is able to provide vertically integrated offshore construction and production services with diverse support vessels deployable at every stages of a field development’s life cycle.
FOP.ol Fred. Olsen Production...
Home Page; http://www.fpso.no
Press Releases; http://www.fpso.no/?aid=9055927
Fred. Olsen Production is a leading floating production operator focusing on benign waters. Fred. Olsen Production owns and operates five FPSO/FSO units, of which one FPSO is owned in a 50/50 partnership. The fleet will be expanded with one additional FPSO in 2007 through a tanker conversion.
Knock Nevis – former Jahre Viking – was converted to an FPSO in 2004 at Dubai Drydocks (UAE) and installed on the Al Shaheen field for Mærsk Qatar that same year.
Owner: 100 % Fred.Olsen Production ASA
Current Location: Al Shaheen Field (Qatar)
Field Owner: Maersk Oil Qatar AS
Operator: Fred.Olsen Marine Services AS
Deadweight: 564,763 tonnes
Storage Capacity: 4,200,000 barrels
Mooring System: Bouy Mooring
Offloading: Tandem & Side by side Offloading
IMO No.: 7381154, Year of Build: 1979, Yard: Sumitomo Heavy Industries Ltd.
Flag: Singapore, Classification: DnV
The vessel was built by Sumitotomo Japan in 1979 and is the largest tanker vessel in the world. Knock Nevis – former Jahre Viking – was converted to an FSO in 2004 at Dubai Drydocks (UAE) and installed on the Al Shaheen field for Mærsk Qatar that same year.
The jack-up is operated by Fred.Olsen Production West Africa Ltd.
The jack-up rig above oil production is processed and stored upon FSPO Knock Adoon.. This FPSO is about 40% the size of the Knock Nevis shown above.. Oil Tankers are landed along side and unloaded from the FPSO oil that is refinery ready.. The processing units may be seen on deck..
FSPO Knock Adoon link...
FPS Ocean AS..
FPS Ocean web site:http://www.fpsocean.com/
An updated Company presentation is attached hereto.
FPSOcean owns the shuttle tanker "Laurita", currently being converted at Dubai Drydocks into a deepwater dynamically positioned Floating Production, Storage and Offloading (FPSO) vessel. The vessel, to be renamed the "DeeP Producer 1", is scheduled for completion by the 2nd quarter and availability for first oil during the 3rd quarter 2008. FPSOcean also purchased the Aframax tanker "Semakau Spirit" for delivery in 2008. The Company is planning to start conversion of the vessel, to be renamed "DeeP Producer 2", during 2008. FPSOcean is seeking to develop a fleet of 4 - 6 deepwater FPSOs over a period of 4 - 6 years.
All current information:
For further information, please contact CFO Christian Mowinckel +47 24117910 or visit the Company's website at www.fpsocean.com.
Stock Price: http://www.euroinvestor.co.uk/Stock/ShowStockInfo.aspx?StockId=606603
MPF Corp. Ltd. was established in order to build a new powerful, yet simple tool to change the way oil companies develop oilfields – the MPF (Multi Purpose Floater). The MPF targets all worldwide deep water areas with oil and gas activities. The Company, MPF Corp. Ltd is based in Bermuda with Norwegian and US subsidiaries, MPF Corp. (Norway) AS in Oslo and MPF Operating Company LLC in Houston, Texas.
All Press releases:http://otc.nfmf.no/public/company/300.html
The first Multi Purpose Floater (MPF01) designed as a deepwater DP drilling unit with capabilities for early production is under construction. It will be the world’s largest drilling ship. Contracts for major capital equipment and long lead items have been placed. The hull is currently under construction at the COSCO Dalian shipyardv in China with expected delivery late 1st half of 2008. Topsides integration and final completion will be carried out at Dragados Offshore SA in Spain. The MPF01 is expected to be ready for operations in Q3 2009. MPF Corp. project teams are located in Oslo and Houston with site teams at the Dalian shipyard in China and at Dragados Offshore in Cadiz, Spain.
MPF Corp. has employed highly qualified key personnel, with additional use of contracted services in order to deliver quality according to schedule. Through the CMS (Corporate Management System) the organization has achieved ISO 9001:2000 certification and listing in Achilles and Fpal databases.
Design & technology
The Multi Purpose Floater (MPF) developed by MPF Corp. Ltd. combines the capabilities of an FPSO and a Drillship.
The MPF can be configured as a Drillship, as a regular FPSO unit or as a combination of the two.
Simultaneous drilling and production capabilities, with self-contained storage and off-loading, minimises time to first oil and maximises reservoir recovery.
Basic hull with simplified box structure and identical end sections
Equipment and systems modularized topsides with minimal integration in hull allowing maximum flexibility
DP station keeping with alternatives for light mooring with DP assistance or turret mooring
Two separate moon-pools for simultaneous production and drilling
30 years design life
Ultra-deep water unit for world wide operations in harsh environments
MPF Corp. shares are currently traded on the OTC-list (Over The Counter) in Norway.
Nexus Floating Production Ltd. operates within the segment for ownership, construction and operation of FPSOs with focus on state-of-the-art vessels classified for harsh environments. Currently, the company has a construction programme for FPSOs at Samsung Heavy Industries and no units in operation.
Nexus Floating Production home page:
PR Releases and charts..
FPSO under construction: http://www.nexusfp.no/nexusweb/templates/Level2Page____118.aspx
PetroProd was incorporated December 2006 in the Cayman Islands to participate in the fast-growing floating production business. The company currently owns 3 Aframax Tanker Vessels for conversion into floating production and has one MSC/Gusto CJ70 Jackrig under construction at Jurong Shipyard, Singapore.
The first FPSO is scheduled for completion late 2008 and the CJ70 Jackup Rig will be delivered June 2010.
The company will be listed in the Oslo Stock Exchange under the ticker PPROD effective 30th November 2007.
The Company is managed through a management agreement entered into with effect from and including 8 December 2006, with Larsen Oil & Gas Pte. Ltd. (“LOG”).
The management agreement governs the services to be provided by LOG, including but not limited to pre-contract services, including negotiation of terms and condition, pre-delivery yard supervision and project management, engineering, procurement, construction, supervision, marketing, operation, general administrative and advisory services in connection with the management of the business, and post-delivery technical management (including crewing and insurance) of the Units.
Current News Releases:
Prosafe operates globally and has about 1 100 employees. The company is headquartered in Larnaca, Cyprus and is listed on the Oslo Stock Exchange with ticker code PRS. Operating profit reached USD 150 million in 2006.
Prosafe comprises a parent company and two business divisions: Floating Production and Offshore Support Services. Floating Production is a leading owner and operator of Floating Producition, Storage and Offloading vessels (FPSOs). Offshore Support Services is the world's leading owner and operator of semi-sumbersible accommodation/service rigs.
Prosafe has more than three decades of operational experience from the world’s largest oil and gas provinces. With an excellent uptime record, a solid financial performance and the ability to offer innovative in house technology and cost-efficient solutions, the company has positioned itself as a provider of high quality services.
SEVAN.ol,, SVMRF.ol.... My best IDEA IMO,, hank
Stock Price: http://www.euroinvestor.co.uk/Stock/ShowStockInfo.aspx?StockId=482400
Pictures of Sevan FPSO's: Long Load,, Worth the wait...
Recent PR Releases:
Sevan Marine ASA is listed on Oslo Børs and is specializing in building, owning and operating floating units for offshore applications. The Company has developed a cylinder shaped platform type, suitable for applications in all offshore environments. Presently Sevan Marine is focusing on two application types for its cylinder platform, floating production and drilling. Sevan Marine has offices in Tananger, Arendal, Asker and Trondheim, Norway; Singapore and Rio de Janeiro, Brasil. For more information, please refer to
The Sevan Technology
The Sevan platform is classified as an Offshore Installation and meets the industry's requirement for versatility and flexibility.
High capacity for both oil storage and deck load
Low cost and fast construction
High flexibility for various applications
Extensive model tests completed
Main Sevan platform features
Any number and type of riser
High deck load capacity
High safety standard
Offloading to tankers
Wide capacity range
The unit has a wide capacity range with an oil storage capacity of up to 2 million bbls.
The Versatility of the Sevan Technology
The Company has since its origin focused its business on the development of a new cylinder shaped platform type for storage and production of hydrocarbons in deep and shallow waters (FPSO). The platform is designed to operate in all types of offshore conditions.
The main competitive advantage of the Sevan platform is that it combines internal oil storage capacity and ability to carry high topside weights with a low construction cost compared to other FPSOs.
The Sevan platform is an alternative to ship based production and storage solutions as well as semisubmersibles, TLPs and Spar platforms. The platform is suitable for use in all offshore markets including harsh environment areas and on both marginal andlarge field developments, due to its flexible design and favourable motion characteristics. Currently, the Sevan platform has been used for production and drilling applications.
Due to its versatility, the Sevan design may also be used in connection with applications such as accommodation and various gas applications. Going forward, the Company will evaluate the potential for such complementary uses of the Sevan Technology.
SEVAN.ol Storage system:
The FPSO Sevan Piranema has today commenced oil production on the Piranema field, off the coast of Aracaju, in the state of Sergipe, Brasil.
The Sevan Piranema will be working under an 11+11 year charter contract with Petrobras S.A., in ultra deep water, ranging from 1,000 to 1,600 m.
The FPSO has an oil storage capacity of 300,000 barrels and is equipped with an oil process capacity of 30,000 barrels per day and a gas compression capacity of 3.6 million m3 per day.
The Sevan Piranema is the world`s first cylinder shaped FPSO and is based on Sevan`s unique and patented technology. The hull was constructed in China while the topside fabrication, assembly and commissioning took place in Europe. It is the
first floating production unit to be installed in this area of Brasil.
- This is a major milestone for Sevan and marks the start of a new phase in the development of our Company. We are proud that Petrobras, a world leader in deep water technology and the world`s largest user of floating production units, is the first oil company utilizing the Sevan FPSO, says Jan Erik Tveteraas, CEO of Sevan Marine ASA.
- The cylindrical Sevan FPSO is designed to provide improved motions, higher stability reserves and higher deck load apacity than conventional units. The experience so far from the Piranema field confirms these capabilities, says Tveteraas.
In addition to Sevan Piranema, Sevan has entered into contracts for the charter of four other Sevan units, of which three production units and one drilling unit. The three Sevan FPSOs will be installed in the North Sea while the Sevan Driller will go to US Gulf of Mexico under a six-year contract with Petrobras America Inc.
For further information, please contact:
Jan Erik Tveteraas, CEO Sevan Marine ASA (Media).
Phone: +47 51944960 w
+47 95214925 m
Egil Kvannli, CFO Sevan Marine ASA (Analysts)
Phone: +47 51944964 w
+47 91618888 m
Posted by: 10 bagger
In reply to: None Date:12/28/2007 2:29:09 AM
Post #of 18
"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 $32,000,000 in engineering contracts in the last two years.....
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
Stock Price: http://www.euroinvestor.co.uk/Stock/ShowStockInfo.aspx?StockId=495213
Half Year Results: http://www.sbmoffshore.com/Media_Information/press/E7B1EA13-8FF1-4298-8E36-037E0BA90741.pdfEuronet
About SBM Offshore
SBM Offshore N.V., formerly IHC Caland N.V., is the management holding company of a group of international companies, working as suppliers to the offshore oil and gas industry on a global basis. The company has been listed on the Amsterdam Stock Exchange since 1965 and is since March 2003 included in the AEX index. The Group started its offshore activities in the early 1950's and subsequently became a pioneer in Single Point Mooring (SPM) systems, dynamically positioned drilling vessels, jack-up drilling rigs and heavy offshore cranes.
SBM Offshore’s present activities include the engineering, supply and offshore installation of SPM systems for offshore loading and unloading of tankers or the permanent mooring of offshore oil production and/or storage vessels, as well as the turnkey supply of complete floating facilities for the production, storage and export of crude oil and gas. The latter comprise Floating Production Storage and Offloading systems (FPSOs), Floating Storage and Offloading systems (FSOs), Tension Leg Platforms (TLPs), Floating Production Units (FPUs) of all types including both monohull and semi-submersible, as well as self elevating, Mobile Offshore Production Units (MOPUs).
In addition to the supply of systems on a turnkey basis the Group is also in the business of owning and operating the above mentioned Floating Production and/or Storage and Offloading systems. These units are contracted on long-term charters, always including their operation, to oil companies in various parts of the world. At the end of 2004 the Group had fourteen units in operation, and a further four under construction to enter service in the following years. Besides being the initiator of this concept, the Group is also the largest player.
Design and engineering services to the offshore oil and gas industry in a wide range of products is provided through the Group's engineering offices.
In most of these activities, the Group companies are the market leaders, both in terms of market share and technical expertise. The Group has a good track record in developing new, cost-effective technical solutions for the ever changing needs of its customers, and holds a considerable number of patents related to its technology.
The above mentioned products are developed by the individual Group companies and are marketed under their own identity. Within an agreed financial and strategic framework, Group companies have considerable operational and entrepreneurial freedom. Cohesion is created in that they all have potential to support each other using one or more of their individual core competencies.
The Group can appropriately be characterised as a niche player in its chosen fields of business.
ABN Amro Ups SBM Offshore Rating from Hold to Buy
AFX News Limited Tuesday, November 27, 2007
Shares in SBM Offshore were higher in morning trading as ABN Amro raised the stock to 'buy' from 'hold' and upped its target price to 30 eur from 28 as it sees the Dutch oil services group benefiting from a "frantic search for new oil and gas deposits".
ABN Amro said very high oil and gas prices and the market's aim to limit its dependence upon only a few key supply regions have caused a frantic search for new oil and gas deposits.
ABN Amro analyst Dick van der Kloos pointed to the increase in seismic surveys, typically the first stage of development, and exploration drilling activity indicating that new field developments are under way.
ABN Amro added in a note to clients that due to the sheer number of tenders probably coming to the market in the first half of 2008, it assumes SBM will be able to report up to three major wins in 2008 and possibly even one in 2007.
But due to the delivery times, that would have little impact on SBM's results until 2010, the broker added.
Sea Production Thursday, November 01, 2007
Sea Production notes the announcement by Rubicon Offshore International Holdings Limited regarding the acquisition by Rubicon of a 52.95% interest in Sea Production from certain funds managed by Ashmore Investment Management Limited.
Oscar Spieler, Chief Executive Officer of Sea Production, said today:
"We welcome Rubicon as our new majority shareholder. We know Rubicon well and believe that our two companies and their organizations are a good fit, complementary, and enjoy a considerable degree of alignment. We believe the coming together of these two companies will create significant potential for synergies. We look forward to working together with Rubicon to achieve these synergies."
Sea Production Ltd...
Sea Production Ltd (the “Company”) is a Bermuda registered company. Date of inception was 6th of February 2007, and the Company was spun off from Frontline Ltd's FPSO activities on the 15th of February 2007... As part of the spin-off, the Company acquired the FPSO “Front Puffin” currently under
conversion, together with Frontline’s floating production management organization...The acquisition became effective on the 14th of February 2007... On the 15th of February 2007, Sea Production purchased further two Aframax vessels, Sea Cat
and Sea Jaguar as conversion candidates from Greenwich Holding Ltd and the FPSO vessel.. “Crystal Ocean” from Seadrill Limited...
Front Puffin: Great Pictures....
As part of the spin-off a private placement of shares of USD 180 millions was completed of which USD 120 million in cash and USD 60 million by contribution in kind. In addition, a bond of total USD 130 million was issued...
During Q1 an additional revolving bank facility of USD 105 million was negotiated and signed... The available funds were used to acquire the assets mentioned above, and will in addition put the Company in position to complete the conversion of the FPSO “Front Puffin” currently under
conversion at Keppel Shipyard in Singapore...
Sea Production Ltd was registered on the Oslo OTC Market 16th of February 2007 and is planning to be listed on the Oslo Stock Exchange in Autumn 2007....
The accounts for Q1 comprise the result from 6th of February 2007 (date of inception) to 31st of March 2007. However, since the purchase of Front Puffin, the Frontline’s floating production management , the two Afraxmax vessels and Crystal Ocean became effective on the 14th and 15th of February 20007 respectively, the results from these operations have only been included from the date the purchase became effective...
The Company’s revenue was USD 3.6 million in the period , with an EBITDA of USD 0.9 million. The FPSO Crystal Ocean and the Oil tankers Sea Cat and Sea Jaguar have been in operation the whole quarter.
The Crystal Ocean is operating on a bareboat charter to Anzon Australia Ltd in the Basker-Manta field, located offshore South-East Australia. The FPSO`s contribution to EBITDA is USD 0.9 million, which is equivalent to a BB-day rate of USD 20,700 /day. In addition to the fix bareboat hire, a bonus scheme is in place based on the actual oil production. In Q1 this bonus is estimated to be USD 0.1 million. The FPSO had an average oil production of 8,854 bbl / day in the period...
The lower production rate is mainly related to the start-up of the new gas injection plant which was installed during the upgrade of the vessel at the end of 2006. The production is, based on the information provided by the oil company, expected to increase to a stable production of about 14,500 bbl / day.
Awaiting suitable conversion projects, Sea Cat and Sea Jaguar have been trading in the spot market during the quarter and have generated a net operating profit (before depreciation) of USD 0.3 million in total for the period.
Administrative expenses in the period were USD 0.5 million. These costs relate to personnel, office cost and employee share option scheme. Cost directly related to the conversion of the Front Puffin is capitalized as part of the conversion cost.
Total depreciation for the quarter is USD 0.8 mill. The vessels are depreciated on a straight-line basis over their economically useful lives, taking into account their estimated residual value...
Assessment of the remaining economic life of the assets is done on a yearly basis...
Net financial loss is USD 0.5 million, where the main cost is related to the interest of the USD 130 million bond loan. A portion of the total interest charged to the company is allocated to the conversion of the Front Puffin based on actual expenditure, and is as such capitalized as part of the conversion cost... The net loss in the first quarter amounted to USD 0.4 million.
The current assets at 31st of March are USD 41.8 million and the non-current assets amounts to USD 240.3 million. Goodwill amounted to USD 25.0 million relates to the acquisition of Frontline’s floating production activities. The Front Puffin lease contract with AED Oil Limited is valuated to USD
35.0 million. As per 31st of March USD 115.0 million has been invested in the FPSO Front Puffin. The vessel is presently under conversion at Keppel Shipyard in Singapore and is expected to be generating income from 5th of June 2007.
The Company issued a 5 years callable bullet bond loan of USD 130.0 million in February 2007. In addition the Company has drawn a short term USD 24.0 million bank debt for the conversion
of the Front Puffin. This loan will be converted to long term debt in the second quarter 2007 under the new revolving USD 105.0 million bank facility...
The Company’s equity at 31 March 2007 is USD 176.5 million.
The growth in the world economy remains positive with an estimated GDP growth of 4,9% both for 2007 and 2008. This is reflected in a continuous growth in oil demand resulting in very a tight supply situation. This results in increased exploration activity and a very positive outlook for the
upstream sector and in particular in the FPSO market.
Current challenges in the FPSO market are tight supplier markets and limited availability of personnel.
There are a number of speculative FPSOs currently being offered to the market. Sea Production does not view this as a significant threat. Firstly, there are a large number of projects to be awarded over the coming years. Secondly, there is in today’s market generally very little advantage in providing early availability as the lead time for auxiliary field specific equipment will dictate the schedule in any case. Sea Production believes that over the next 9-24 months,
opportunities may arise in purchasing speculative FPSOs from other FPSO contractors at a considerable discount...
Sea Production’s strategy is to be a leading supplier of FSOs / FPSOs for small to medium oil companies and for small to medium oil fields. Sea Production is focusing on building up an experienced core staff with a track record from the
FPSO industry. The conversion of Front Puffin is Sea Production’s first FPSO and our main focus has been successful execution and completion of this project.
The Board is therefore very pleased to announce that the FPSO Front Puffin will be on hire from June 5th 2007. As agreed
between the charterer, AED Oil Limited “AED” and Sea Production, Sea Production will commence receiving the bareboat hire rate of approximately USD 160,000 per day from June 5th .
All operating costs incurred after June 5th will be passed through to the charterer.
Sea Production is currently developing a number of both FSO and FPSO projects at various stages in the bidding process. Sea Production expects to be awarded one or more contracts this
year in accordance with the private placement material provided in February 2007. Sea Production is well positioned to face the current challenges in the FPSO market of tight supplier markets and limited availability of personnel based on strong strategic relationships with key suppliers, including Keppel Shipyard. Furthermore, Sea Production has established itself as
an attractive employer and sourcing of personnel to date has been unproblematic.
In addition to actively seeking to consolidate by acquiring additional units, Sea Production is also actively developing consolidation strategies involving possible purchases of, or mergers with, other contractors.
Board of Directors, 31 May 2007
Sea Production Limited
Company Profile For Sembcorp Marine Ltd...
Finanical Statements: http://www.sembcorp.com.sg/investor_financial_statements.htm
SembCorp Marine Ltd. is a global marine engineering group specializing in a spectrum of integrated solutions, ranging from ship repair, shipbuilding, ship conversion, and rig building to offshore engineering and production facilities. The Company has a global network spanning Singapore, China, Brazil and the United States. Its specialized capabilities range from the engineering, procurement and construction of offshore production platforms and floating production systems, to the fabrication, integration, pre-commissioning, as well as offshore hook-up and commissioning of topside process modules and production modules for fixed platforms and mega floating production storage and off-loading units. In March 2007, the Company disposed its 55% equity stake in Jurong Clavon Pte Ltd Group. In May 2007, the Company's wholly owned subsidiary, SMOE Pte Ltd has acquired a 35% equity stake in Shenzhen Chiwan Offshore Petroleum Equipment Repair & Manufacture Co. Ltd.
Quick Financial Synopsis
BRIEF: For the nine months ended 30 September 2007, SembCorp Marine Ltd.'s revenue increased 43% to SP$3.18B. Net income increased 68% to SP$240.2M. Revenues reflect an increase in sales from rig building and ship building segments. Net income benefited from improved gross margin, higher other operating income, a decreased in other operating expenses, increased dividend & interest income, lower non operating expenses and higher share of results of associates.
Sembcorp Marine Ltd
29 Tanjong Kling Road
SembCorp Marine (Singapore), is a leading global marine engineering group specialising in a full spectrum of integrated solutions, ranging from ship repair, ship building, ship conversion, rig building to offshore production and engineering. As one of the largest marine engineering leaders in Asia, SembMarine’s global network spans 14 yards in the four strategic hubs of Singapore, China, Brazil and USA
Operating as distinct brand names, each yard focuses on its areas of expertise and market niches to provide customers with the most innovative marine engineering solutions and services worldwide.
SembMarine’s yards in Singapore include:
SMOE Pte Ltd
• Largest ship repair and marine-related facilities in Asia, with a total docking capacity of 3.2 million deadweight tonnes.
• Global leader in the conversion of Floating Production Storage Offloading (FPSO), Floating Storage Offloading (FSO) units and Floating Production Units (FPU) for the offshore oil and gas industries.
• A specialist in rig building with proven capabilities in the proprietary design and construction of high-performance jack-up rigs and the fast-track construction of highly advanced dynamic positioning ultra-deepwater semi-submersible drilling rigs.
• A world leader in ship repair and a key niche player in the newbuilding of vessels, from 2,600 TEU containerships, product and chemical tankers, to offshore supply vessels. It also has strong expertise in the repair and servicing of offshore production / drilling platforms.
• A recognised industry leader in the provision of total engineering and construction solutions for offshore production platforms and floating production facilities. It specialised offshore production and engineering expertise extends to the fabrication, installation, integration and commissioning of topside production and process modules for fixed platforms and mega FPSOs
Petrojarl ASA, owns and operates four FPSOs in UK and Norwegian waters
Petrojarl is one of the largest operators of floating production storage and offloading vessels in the North Sea, measured by production capacity and number of vessels. Petrojarl owns and operates four FPSO vessels in addition to operating two shuttle tankers and one storage tanker. The four FPSOs have a combined production capacity of 339,000 barrels of oil per day and a crude oil storage capacity of one million barrels. All four of Petrojarl’s FPSOs – the Ramform Banff, Petrojarl I, Petrojarl Foinaven and Petrojarl Varg – are double hulled, rated for harsh environments and capable of working in deepwater fields.
Links below show the demand for rig and FPSO remain robust in the next few years.
They are many FPSO builders. Keppel Corp is one of them which is capable of building a FPSO. Since the FPSO process and store the oil on the vessel before the tanker comes, it would need facilities to perform these activities. Technics Oil & Gas designs and develops process modules and equipment that are integrated to form the operating systems and storage facilities for oil and gas exploration and production. Their key expansion plan is to explore more opportunities in the FPSO space.
Technics is not the only one to be involved in this space. Hiap Seng start up as a engineering sub contractor, now they are moving into the compression and offshore fabrication business. It is involved in gas compressors and FPSO topside fabrication. At the same time, it still provide the mechanical construction work in Jurong Island. Both would serve as diverse revenue stream. Technics seems to be involved in the production system design and construction, while Hiap Seng only produce the gas compressor sub module.
With favourable industry environment, these 3 companies should do well in the coming years.