Save the dates!

IMO is looking at a global levy (tax) on marine fuels. Do you think this is

a really good idea
an unfortunate necessity
a bad idea
a really bad idea

Marine Log

July 7, 2008

China Oilfield to acquire Awilco Offshore

China Oilfield Services Limited said today that it has reached an agreement with Oslo-listed Awilco Offshore ASA to launch a recommended voluntary cash tender offer for 100% of the shares of AWO.

The combination of COSL and AWO would create the world's 8th largest rig fleet, consisting of 34 operated rigs (including rigs under construction) with operation and growth opportunities in most major international markets.

A cash consideration of NOK 85 will be offered per share, which implies a total consideration for all shares of approximately NOK 12.7 billion (approximately US$2.5 billion). The offer represents a premium of 18.7% over the closing price of AWO shares on July 4, 2008 and a premium of 42.4% over the closing price on May 29, 2008, the last day prior to AWO confirming a third party had expressed an interest in acquiring the company.

AWO's Board of Directors has unanimously decided to recommend the offer. In addition, Awilco AS and Aweco Holding AS, representing in aggregate 40.11% of the outstanding shares in AWO, have undertaken to accept the offer with respect to their shareholdings.

The offer will be made by COSL Norwegian AS (the "Offeror"), a Norwegian limited liability company 100% owned by COSL. The acquisition will be financed by way of internal resources of COSL and committed external financing from banks.

The complete details of the dffer, including all terms and conditions, will be contained in an offer document to be sent to AWO shareholders following review and approval by the Oslo Stock Exchange.

marine log logo

Save the dates!