Norway's SiemOffshore Inc. says it is getting into the business for submarine cable installation, repair and maintenance projects. It has reached an agreement with the shareholders of Leer, Germany, based Five Ocean Services GmbH (FOS) that will see it acquire all shares in FOS.
Siem Offshore will invest approximately $8 million as consideration for shares and injection of working capital. The amount includes the issue of 200,000 shares by Siem Offshore to the shareholders of FOS.
Siem says the transaction combines its marine operating capacities with the engineering capabilities and project execution expertise of FOS and forms a strong entity to meet the forecasted market growth and customer requirements.
FOS was formed in 2003 and has served the worldwide offshore oil and gas industry as well as the conventional energy market, with a specific geographical focus on the Middle East, the Eastern Mediterranean Sea and India. FOS has successfully completed more than 20 installation and repair projects of submarine cables. FOS employs approximately 50 people, including a project engineering and installation team. The management team of FOS has more than 20 years experience in the submarine cable installation market.
Siem Offshore says the main initial asset for the installation of submarine cables will be the vessel Siem Carrier, which was converted into a state-of-the-art DP2 cable installation vessel in 2007 at the Orskov Shipyard in Denmark in line with a 3-year fixed plus 2 x 1-year optional extension charter party between Siem Offshore Inc. and Five Oceans Services GmbH.
March 30, 2011