Oceanteam in construction vessel JV deal

Oceanteam ASA has signed a Letter of Intent (LOI) with a leading company in the offshore oil and gas industry, for long term charter and 50/50 joint (beneficial) ownership in the CSV North Ocean 102 as well as a long term charter and 50/50 joint (beneficial) ownership in Oceanteam's option vessel CSV North Ocean 105, which is to be built at shipbuilder Metalships, Vigo Spain.

Bergen, Norway, headquartered Oceanteam is an offshore services company that operates internationally and specializes in the provision of construction support vessels, construction barges, and burial and flexible lay equipment. Its Norwich, U.K., branch specializes in geosciences services, risk mitigation services and marine surveys.

The five year charter of CSV North Ocean 102 would commence upon redelivery of the vessel following completion of its current charter with ABB, which is estimated to be in June 2010.

The five year charter of CSV North Ocean 105 would start upon delivery of the vessel which is expected end 2011. The newbuild project for this ship is subject to finance.

On closing the deal Oceanteam would jointly with its JV partner own, control and manage the special purpose companies owning the ships. The partner would have the option to purchase the remaining shares in the ship owning companies on the fifth anniversaries of the closing of each transaction.

The announced LOI is the result of Oceanteam's changed business focus on long term charter agreements after going through a restructuring process.

The DP2 Construction Support / Flexible Product Installation vessel North Ocean 102was delivered by Metalships in Q4 2008.

The North Ocean 102 is equipped with two 100 ton heave compensated cranes. The second of the standardized Oceanteam 100 series, the vessel features - -in addition to its large cranes --a large moon pool (7 m x 7 m), considerable free deck area, extensive accommodation and excellent seagoing capabilities. The ship is 137 meter in length and has a 27 meter beam.It is able to accommodate up to 199 crew members and is utilized extensively for field support, construction, installation and IRM support.

Shipbuilder's Ship Data Sheet