Koil Energy Solutions Inc. (KLNG)

[JoeSmith]

PROJECT ABSTRACT
Name of Project: Delba Vessel
Country: Brazil
Shareholders: Delba Perfuradora Internacional S.A.
Palmaille 75 Siebzehnte Beteiligungsgesellschaft mbH & Co. KG
Project Cost: Approximately US$614 million
IDB Participation: IDB A-Loan up to US$153 million
Department: Structured and Corporate Finance Department (SCF)
Status: Due diligence
Date: August 6, 2007
I.
Project Description
The project consists of the construction and operation of a semi-submersible offshore mobile oil-drilling vessel (Gusto MSC TDS 2500) to be located off the shore of Brazil (the “Vessel”). The sponsors of the project are Delba Perfuradora Internacional S.A., part of the Brazilian Delba Group, which has a long established track record of providing drilling services in Brazil, and Palmaille 75 Siebzehnte Beteiligungsgesellschaft mbH & Co. KG, a special purpose fund of MPC Capital AG, Germany’s leading non-bank issuing house that was created to provide equity to the project. Single Buoy Moorings Inc., a Swiss company, will construct the Vessel, which is estimated to take approximately 3 years.
After construction completion, the Vessel will be chartered to Petróleo Brasileiro S.A. (“Petrobras”) under a renewable, 7-year Contrato de Afretamento. The Vessel will be operated on behalf of Petrobras under a renewable, 7-year Contrato de Prestação de Serviços. Commercial operation of the Vessel is scheduled for August 2010.
II.
Project Benefits
In 2004, the Government of Brazil launched the Programa de Mobilização da Indústria de Petróleo e Gás Natural (“PROMINP”), which aims to foster domestic expertise (equipment and services) in the sector. The project was awarded under the PROMINP programme and as such will foster local skills and capabilities through training and job provision. In addition, the project serves a critical role in Petrobras’ oil exploration activities, which is a significant contributor to the Brazilian economy.
III.
IDB Participation
IDB participation in the project will contribute to the further development of Brazil’s offshore oil and gas exploration industry, which is consistent with the Government of Brazil’s PROMINP programme.
Due to the volume and large size of Brazilian platform transactions in the market, liquidity for such transactions is becoming more limited. IDB participation in the project will not only contribute necessary capital, it will also catalyze commercial banks and other financial institutions to participate in the financing under the B-loan.
http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=1108308

The Delba Group has been doing business in Brazil with Petrobras and other oil companies for the past 40 years, either through its companies or through representation of foreign companies. The main companies of the group include CPDB, a provider of drilling services, Delba Maritima Navegacão, an offshore support company and Aeroleo, a helicopter company which provides services to Petrobras and other oil companies in Brazil. Delba has partnered with Interoil, a Brazilian group active in the oil and gas sector as well as supporting industries for the operation and management of the rig.
http://www.marketwire.com/mw/release.do?id=813009&k=

The TDS-2500 column stabilized drilling unit for Brazil's drilling contractor, Delba Maritima, will be classed by ABS. The rig is the third in a series of semisubmersibles based on the Gusto MSC design with engineering and project management awarded to SBM-Atlantia.
http://www.rigzone.com/news/article.asp?a_id=49839

edit: the winkies and smileys are just how ihub reads the doc, they are simply semi-colons etc in the doc.
(see http://investorshub.advfn.com/boards/board.aspx?board_id=9557 for more info)