Trico Marine files for Chapter 11 protection

According to a document filed with the court, the companies have total debts estimated at $353.6 million and assets of $30.56 million. The largest single unsecured creditor is Joseph S. Compofelice with a claim in relation to an employment agreement of $2.4 million, which is categorized as “contingent, unliquidated, disputed and subject to set off.”

Mr. Compofelice was replaced as the company’s Chairman, President and Chief Executive Officer on May 29.

You can access court documents and other general information about the Chapter 11 cases HERE

Aside from the Cayman Islands holding company, Trico’s foreign subsidiaries were not included in the filing and will not be subject to the requirements of the U.S. Bankruptcy Code. Trico says that its U.S. and worldwide operations are expected to continue without interruption during the restructuring process.

Chairman of the Board of Directors, President and Chief Executive Officer, Richard A. Bachmann commented, “Over the last several months, we have worked diligently to improve our liquidity, including through the sale of $3 million of non-core assets, the sale of a North Sea class vessel for $16 million and additional cost-cutting initiatives. While we are beginning to see indications of improved operational performance, the combination of a sluggish economy, a highly leveraged balance sheet and imminent interest payments due, has led us to determine that a court-supervised restructuring is the best course of action for the company and its stakeholders. While we are continuing discussions with our lenders, the Board decided to begin this process now in order to get the company’s restructuring underway without delay. We intend to move through this process as quickly as possible. Throughout the restructuring process, we will remain focused on operating our business worldwide while continuing our efforts to manage costs, strengthen our balance sheet and gain financial flexibility in order to position Trico as a strong and profitable competitor in our industry.”

In conjunction with the filing, Trico has received a commitment for up to $35 million in debtor-in-possession (DIP) financing from Tennenbaum DIP Opportunity Fund and other funds managed by Tennenbaum Capital Partners, LLC, of which $10 million will represent incremental liquidity. The company says it “expects that, upon court approval and satisfaction of other customary conditions, the DIP financing, combined with cash from the company’s ongoing operations, will provide funding to support the business. In addition, the company anticipates that it will meet its obligations going forward to its employees, customers and suppliers.”

Separately, the company announced that Trico Shipping AS and its affiliates have reached an agreement in principle for $22 million in senior secured multi-draw term loan financing from certain holders of its 11 7/8% Senior Secured Notes (the “Trico Shipping Notes”) representing approximately 80% of the Trico Shipping Notes and from Tennenbaum. The closing of this financing arrangement is subject to obtaining required consents, as well as certain other closing conditions of Trico Shipping AS and its affiliates. This financing would be used to fund operating expenses and other working capital needs.

“We look forward to working together with all of our stakeholders to complete a successful financial restructuring,” said Mr. Bachmann. “Our global operations are expected to continue without interruption throughout the restructuring process, and we remain committed to providing our customers with high quality service. We appreciate the ongoing dedication of all our employees, whose hard work is critical to our success and the future of the company.”

Trico will file a series of motions with the court to ensure the continuation of normal operations, including requesting court approval to continue paying employee wages and salaries and providing employee benefits without interruption and to continue use of its bank accounts and insurance policies. The company expects the court to approve these requests. The company says that during the Chapter 11 process, suppliers will be paid in full for all goods and services provided after the filing date as required by the U.S. Bankruptcy Code, and Trico has taken steps to ensure continued supply of goods and services to its customers.

Trico Marine files for Chapter 11 protection

According to a document filed with the court, the companies have total debts estimated at $353.6 million and assets of $30.56 million. The largest single unsecured creditor is Joseph S. Compofelice with a claim in relation to an employment agreement of $2.4 million, which is categorized as “contingent, unliquidated, disputed and subject to set off.”

Mr. Compofelice was replaced as the company’s Chairman, President and Chief Executive Officer on May 29.

You can access court documents and other general information about the Chapter 11 cases HERE

Aside from the Cayman Islands holding company, Trico’s foreign subsidiaries were not included in the filing and will not be subject to the requirements of the U.S. Bankruptcy Code. Trico says that its U.S. and worldwide operations are expected to continue without interruption during the restructuring process.

Chairman of the Board of Directors, President and Chief Executive Officer, Richard A. Bachmann commented, “Over the last several months, we have worked diligently to improve our liquidity, including through the sale of $3 million of non-core assets, the sale of a North Sea class vessel for $16 million and additional cost-cutting initiatives. While we are beginning to see indications of improved operational performance, the combination of a sluggish economy, a highly leveraged balance sheet and imminent interest payments due, has led us to determine that a court-supervised restructuring is the best course of action for the company and its stakeholders. While we are continuing discussions with our lenders, the Board decided to begin this process now in order to get the company’s restructuring underway without delay. We intend to move through this process as quickly as possible. Throughout the restructuring process, we will remain focused on operating our business worldwide while continuing our efforts to manage costs, strengthen our balance sheet and gain financial flexibility in order to position Trico as a strong and profitable competitor in our industry.”

In conjunction with the filing, Trico has received a commitment for up to $35 million in debtor-in-possession (DIP) financing from Tennenbaum DIP Opportunity Fund and other funds managed by Tennenbaum Capital Partners, LLC, of which $10 million will represent incremental liquidity. The company says it “expects that, upon court approval and satisfaction of other customary conditions, the DIP financing, combined with cash from the company’s ongoing operations, will provide funding to support the business. In addition, the company anticipates that it will meet its obligations going forward to its employees, customers and suppliers.”

Separately, the company announced that Trico Shipping AS and its affiliates have reached an agreement in principle for $22 million in senior secured multi-draw term loan financing from certain holders of its 11 7/8% Senior Secured Notes (the “Trico Shipping Notes”) representing approximately 80% of the Trico Shipping Notes and from Tennenbaum. The closing of this financing arrangement is subject to obtaining required consents, as well as certain other closing conditions of Trico Shipping AS and its affiliates. This financing would be used to fund operating expenses and other working capital needs.

“We look forward to working together with all of our stakeholders to complete a successful financial restructuring,” said Mr. Bachmann. “Our global operations are expected to continue without interruption throughout the restructuring process, and we remain committed to providing our customers with high quality service. We appreciate the ongoing dedication of all our employees, whose hard work is critical to our success and the future of the company.”

Trico will file a series of motions with the court to ensure the continuation of normal operations, including requesting court approval to continue paying employee wages and salaries and providing employee benefits without interruption and to continue use of its bank accounts and insurance policies. The company expects the court to approve these requests. The company says that during the Chapter 11 process, suppliers will be paid in full for all goods and services provided after the filing date as required by the U.S. Bankruptcy Code, and Trico has taken steps to ensure continued supply of goods and services to its customers.

Trico Marine files for Chapter 11 protection

According to a document filed with the court, the companies have total debts estimated at $353.6 million and assets of $30.56 million. The largest single unsecured creditor is Joseph S. Compofelice with a claim in relation to an employment agreement of $2.4 million, which is categorized as “contingent, unliquidated, disputed and subject to set off.”

Mr. Compofelice was replaced as the company’s Chairman, President and Chief Executive Officer on May 29.

You can access court documents and other general information about the Chapter 11 cases HERE

Aside from the Cayman Islands holding company, Trico’s foreign subsidiaries were not included in the filing and will not be subject to the requirements of the U.S. Bankruptcy Code. Trico says that its U.S. and worldwide operations are expected to continue without interruption during the restructuring process.

Chairman of the Board of Directors, President and Chief Executive Officer, Richard A. Bachmann commented, “Over the last several months, we have worked diligently to improve our liquidity, including through the sale of $3 million of non-core assets, the sale of a North Sea class vessel for $16 million and additional cost-cutting initiatives. While we are beginning to see indications of improved operational performance, the combination of a sluggish economy, a highly leveraged balance sheet and imminent interest payments due, has led us to determine that a court-supervised restructuring is the best course of action for the company and its stakeholders. While we are continuing discussions with our lenders, the Board decided to begin this process now in order to get the company’s restructuring underway without delay. We intend to move through this process as quickly as possible. Throughout the restructuring process, we will remain focused on operating our business worldwide while continuing our efforts to manage costs, strengthen our balance sheet and gain financial flexibility in order to position Trico as a strong and profitable competitor in our industry.”

In conjunction with the filing, Trico has received a commitment for up to $35 million in debtor-in-possession (DIP) financing from Tennenbaum DIP Opportunity Fund and other funds managed by Tennenbaum Capital Partners, LLC, of which $10 million will represent incremental liquidity. The company says it “expects that, upon court approval and satisfaction of other customary conditions, the DIP financing, combined with cash from the company’s ongoing operations, will provide funding to support the business. In addition, the company anticipates that it will meet its obligations going forward to its employees, customers and suppliers.”

Separately, the company announced that Trico Shipping AS and its affiliates have reached an agreement in principle for $22 million in senior secured multi-draw term loan financing from certain holders of its 11 7/8% Senior Secured Notes (the “Trico Shipping Notes”) representing approximately 80% of the Trico Shipping Notes and from Tennenbaum. The closing of this financing arrangement is subject to obtaining required consents, as well as certain other closing conditions of Trico Shipping AS and its affiliates. This financing would be used to fund operating expenses and other working capital needs.

“We look forward to working together with all of our stakeholders to complete a successful financial restructuring,” said Mr. Bachmann. “Our global operations are expected to continue without interruption throughout the restructuring process, and we remain committed to providing our customers with high quality service. We appreciate the ongoing dedication of all our employees, whose hard work is critical to our success and the future of the company.”

Trico will file a series of motions with the court to ensure the continuation of normal operations, including requesting court approval to continue paying employee wages and salaries and providing employee benefits without interruption and to continue use of its bank accounts and insurance policies. The company expects the court to approve these requests. The company says that during the Chapter 11 process, suppliers will be paid in full for all goods and services provided after the filing date as required by the U.S. Bankruptcy Code, and Trico has taken steps to ensure continued supply of goods and services to its customers.

Trico Marine files for Chapter 11 protection

According to a document filed with the court, the companies have total debts estimated at $353.6 million and assets of $30.56 million. The largest single unsecured creditor is Joseph S. Compofelice with a claim in relation to an employment agreement of $2.4 million, which is categorized as “contingent, unliquidated, disputed and subject to set off.”

Mr. Compofelice was replaced as the company’s Chairman, President and Chief Executive Officer on May 29.

You can access court documents and other general information about the Chapter 11 cases HERE

Aside from the Cayman Islands holding company, Trico’s foreign subsidiaries were not included in the filing and will not be subject to the requirements of the U.S. Bankruptcy Code. Trico says that its U.S. and worldwide operations are expected to continue without interruption during the restructuring process.

Chairman of the Board of Directors, President and Chief Executive Officer, Richard A. Bachmann commented, “Over the last several months, we have worked diligently to improve our liquidity, including through the sale of $3 million of non-core assets, the sale of a North Sea class vessel for $16 million and additional cost-cutting initiatives. While we are beginning to see indications of improved operational performance, the combination of a sluggish economy, a highly leveraged balance sheet and imminent interest payments due, has led us to determine that a court-supervised restructuring is the best course of action for the company and its stakeholders. While we are continuing discussions with our lenders, the Board decided to begin this process now in order to get the company’s restructuring underway without delay. We intend to move through this process as quickly as possible. Throughout the restructuring process, we will remain focused on operating our business worldwide while continuing our efforts to manage costs, strengthen our balance sheet and gain financial flexibility in order to position Trico as a strong and profitable competitor in our industry.”

In conjunction with the filing, Trico has received a commitment for up to $35 million in debtor-in-possession (DIP) financing from Tennenbaum DIP Opportunity Fund and other funds managed by Tennenbaum Capital Partners, LLC, of which $10 million will represent incremental liquidity. The company says it “expects that, upon court approval and satisfaction of other customary conditions, the DIP financing, combined with cash from the company’s ongoing operations, will provide funding to support the business. In addition, the company anticipates that it will meet its obligations going forward to its employees, customers and suppliers.”

Separately, the company announced that Trico Shipping AS and its affiliates have reached an agreement in principle for $22 million in senior secured multi-draw term loan financing from certain holders of its 11 7/8% Senior Secured Notes (the “Trico Shipping Notes”) representing approximately 80% of the Trico Shipping Notes and from Tennenbaum. The closing of this financing arrangement is subject to obtaining required consents, as well as certain other closing conditions of Trico Shipping AS and its affiliates. This financing would be used to fund operating expenses and other working capital needs.

“We look forward to working together with all of our stakeholders to complete a successful financial restructuring,” said Mr. Bachmann. “Our global operations are expected to continue without interruption throughout the restructuring process, and we remain committed to providing our customers with high quality service. We appreciate the ongoing dedication of all our employees, whose hard work is critical to our success and the future of the company.”

Trico will file a series of motions with the court to ensure the continuation of normal operations, including requesting court approval to continue paying employee wages and salaries and providing employee benefits without interruption and to continue use of its bank accounts and insurance policies. The company expects the court to approve these requests. The company says that during the Chapter 11 process, suppliers will be paid in full for all goods and services provided after the filing date as required by the U.S. Bankruptcy Code, and Trico has taken steps to ensure continued supply of goods and services to its customers.

Island Offshore orders LNG-fueled PSV’s

The vessels are scheduled for delivery in the second and third quarters of 2012. The hulls will be built at the Braila shipyard in Romania, and outfitted in Brevik, Norway. The total value of the contracts amounts to approximately NOK 900 million (about $143 million).

The vessels are of Rolls-Royce UT776 CDG design. Island Offshore has four UT776’s in service and two more under construction. The vessels just ordered at STX Offshore Norway will be the first for Island Offshore to be LNG-fueled and, in fact, the first LNG fueled UT vessels designed and powered by Rolls-Royce.

“We are extremely happy with the performance of these UT vessels, as are our clients,” said Island Offshore Managing Director Håvard Ulstein. “A very important area for Island Offshore is reduction in fuel consumption. With the UT 776, the favourable hull lines contribute to a very low consumption rate over a wide range of operating drafts. We believe that the most significant contribution to reducing emissions is to reduce fuel consumption for a given amount of work done. Going for LNG fuel is a logical step in reducing emissions even further.”

Rolls-Royce has worked for several years developing designs and systems for offshore vessels using LNG as fuel.

Rolls-Royce has developed a gas-electric diesel-electric propulsion system for the new vessel. The effective capacity of the gas tanks is about 200 cu.m, corresponding to 10-20 day operation on gas alone depending on the exact operational profile. The gas engines are two of the new C26:33 series from Rolls-Royce.

“Now that more gas infrastructure is in place, it is realistic for customers to select this fuel and these designs and systems” commented Atle Gaasø,Rolls-Royce’s General Manager Sales for offshore service vessels. “We are very happy to be working with Island Offshore, as they are a very forward-thinking company with a strong focus on efficiency and the environment, as they have already shown with their pioneering Rolls-Royce designed well intervention vessels.”

“The UT 776 type has seen continued development from order to order, with our newest vessels building upon the experience and lessons learned from our earlier ones. By choosing this design we have managed to maintain high levels of standardization, and continue the good cooperation on design and equipment we have with Rolls-Royce. The current design sets a standard that we think will do very well for the future,” added Håvard Ulstein.

The new UT776 CDG is 96 m long with a beam of 20 m, and will transport all normal offshore supplies. The ship will also be equipped for oil recovery. Deadweight is approximately 4,750 t

Roy Reite, President of STX Norway Offshore, says: “We appreciate the good relations we have with Island Offshore, and that this cooperation once again has led to the building of new vessels. We have in total been awarded more than thirty new building contracts with Island Offshore, and we look forward to continuing the good cooperation.”

Joe Angelo to be next Intertanko Managing Director

Mr. Angelo, who is currently Deputy Managing Director, will succeed Peter Swift when he retires on December 31, 2010.

Katharina (“Kathi”) Stanzel has been appointed Deputy MD.

Intertanko says it had an “overwhelming level of interest” in the job and some highly qualified and capable individuals were shortlisted. “We are grateful and flattered by some of the names who threw their hat into the ring,” says Graham Westgarth, Intertanko’s Chairman. “Ultimately however, we felt that Joe and Kathi working together to lead Intertanko through its change of MD was an optimal solution.”

Joe Angelo has worked for Intertanko for six years, first as Director of Regulatory Affairs and the Americas.

He is a a1971 graduate of the U.S. Merchant Marine Academy at King’s Point, N.Y.

Prior to joining Intertanko, as a member of the U.S. Senior Executive Service, he held various senior roles with the U.S. Coast Guard — lastly as Director of Standards for Marine Safety, Security And Environmental Protection, — where he led U.S. delegations at IMO.

“Joe is a well respected figure not only within Intertanko but also in the corridors of the iIMO and the international shipping community. Having initially not been available for selection we are delighted this subsequently changed and are pleased that he agreed to take up the challenge,” said Mr. Westgarth.

Kathi Stanzel joins intertanko from the International Oil Pollution Compensation Funds (IOPC). A marine biologist by profession, she has worked in senior technical advisory and claims management roles within the marine pollution sector.

“In her twelve years with ITOPF and IOPC, Kathi has attended and been responsible for handling many major ship source pollution incidents including the Erika and Prestige,” said Mr. Westgarth. “Acting as a signatory on behalf of the 1971 and 1992 Oil Pollution Compensation Funds, she advises governments on oil pollution response measures and potential impacts. She has been extensively involved in the work of the OPRC-HNS technical group and the development of IMO guidance documents for the Marine Environment Protection Committee, focusing both on oil and other hazardous and noxious substances.”

K-Sea gets $100 million cash injection

Last week, K-Sea had postponed its fourth quarter fiscal 2010 earnings conference call, which had been scheduled for August 31. It staged the call today. It is being archived for seven days and can be accessed HERE

KA First Reserve will appoint three directors to the board of K-Sea’s general partner and will be granted the right to acquire a 35 percent interest in the entity that owns the company’s Incentive Distribution Rights, or IDRs.

The board will be expanded from six members to nine members; KA First Reserve’s designees to join the board are Gary Reaves of First Reserve and Kevin McCarthy and Jim Baker of Kayne Anderson.

President and CEO Timothy J. Casey said, “We are very pleased with our new association with First Reserve and Kayne Anderson. These organizations have a wealth of experience and expertise in the MLP and energy businesses. Their decision to invest in us is a testimony to K-Sea’s leading industry position and the strength of our company. With our balance sheet recapitalization behind us, we will be able to focus on operations, results and new opportunities. We remain convinced the domestic market for marine transportation of refined petroleum products will rebound significantly when demand recovers and single hull vessels leave the market permanently.”

Mr. Casey said the company continues to concentrate on cost control and eliminating low-return assets. “On the latter point,” he said, “we have a definitive agreement to sell two tugboats and our two oldest double-hulled barges to an international buyer, and we have a definitive agreement to sell our environment services property in Norfolk, Virginia. Both transactions should close in the September 2010 quarter.”

The proceeds from the sale of the preferred units will be used to reduce outstanding indebtedness and pay fees and expenses related to the transaction. The investment is expected to close in two steps — $85 million in early September and the remaining $15 million within the thirty days following clearance of Hart-Scott-Rodino review.

K-Sea has also executed amendments to its revolving credit facility and term loans that will become effective on closing of the initial $85 million investment. The amendment to the revolving credit facility reduces the lenders’ commitments from $175 million to $115 million; amends the financial covenants; maintains a July 1, 2012 maturity date; and allows the company to pay distributions subject to certain minimum financial ratios. After applying the expected net proceeds of the $100 million Preferred Unit investment, the company’s total funded debt as of September 1, 2010 was $279.2 million on a pro forma basis, which represents a ratio of Funded Debt to EBITDA (as defined in the revolving credit agreement) of 4.3 times fiscal year 2010 EBITDA.

The preferred units will have a coupon of 13.5%, with payment-in-kind distributions through the quarter ended June 30, 2012 or, if earlier, when the company resumes cash distributions on its common units. The preferred units convert on a unit-for-unit basis into common units at KA First Reserve’s option. The preferred units were priced at $5.43 per unit, which represents a 10% premium to the 5-day volume weighted average price of K-Sea’s common units as of August 26, 2010.

The company will have an option to force conversion after three years if the price of K-Sea’s common units is 150% of the conversion price on average for 20 consecutive days on a volume-weighted basis.

K-Sea describes First Reserve as “one of the world’s leading private equity firms in the energy industry, making both private equity and infrastructure investments throughout the energy value chain, with approximately $19 billion under management” and Kayne Anderson as “a leading investment firm focused on the energy industry with approximately $10 billion under management and […] the largest institutional investor in MLPs.”

The pricing grid for the amended credit facility changes only when the total funded debt to EBITDA ratio rises above 5.0 times. It is expected that the company’s interest cost under the revolving credit facility will rise by 50 basis points at the effective date.

OPERATING RESULTS

K-Sea also today reported operating results for its fourth fiscal quarter ended June 30, 2010. The company reported an operating loss of $0.5 million, excluding a $54.3 million write-off of goodwill and an impairment charge of $5.1 million on excess tugboats. This represents a decrease of $8.8 million, compared to $8.3 million of operating income for the fourth fiscal quarter ended June 30, 2009. Including the write-off of goodwill and the impairment loss, our operating loss for the quarter was $59.9 million. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the fourth quarter of fiscal 2010 was $12.4 million, a decrease of $9.1 million, or 42%, compared to $21.5 million in the same quarter last year; and an increase of $3.3 million, or 36%, compared to $9.1 million for the March 2010 quarter. There were two special items in the fiscal 2010 fourth quarter that impacted EBITDA: a $1.0 million charge for an additional insurance call previously mentioned in our financial statements; and a $0.8 million gain from the sale of assets. Excluding these items, EBITDA was $12.6 million. EBITDA is a non-GAAP financial measure that is reconciled to net income, the most directly comparable GAAP measure, in the table below.

Three Months Ended June 30, 2010

For the three months ended June 30, 2010, the Company reported an operating loss of $0.5 million, excluding the previously mentioned write-off of goodwill and impairment charge. This represents a decrease of $8.8 million, compared to $8.3 million of operating income for the three months ended June 30, 2009. EBITDA decreased by $9.1 million, or 42%, to $12.4 million for the three months ended June 30, 2010, compared to $21.5 million for the three months ended June 30, 2009. EBITDA was negatively impacted by a non-recurring $1.0 million insurance charge relating to an additional insurance call by the Company’s insurance carrier. The carrier had previously announced the possibility of the call in November 2008; however, the insurance carrier did not decide to make the call until May 2010. The decrease in EBITDA resulted mainly from a $7.3 million decline in revenue, net of voyage expenses, which is attributable to fewer working days owing to the retirement of a majority of our single-hull vessels and an overall reduction in net utilization mainly relating to expiring contracts and the need to employ vessels in the spot market. Additionally, vessel operating expenses increased by $2.0 million as a result of the $1.0 million insurance call and $1.3 million of increased operating lease expenses mainly relating to sale leaseback transactions entered into in June 2009.

Net loss for the three months ended June 30, 2010 was $7.1 million, or $0.37 per fully diluted limited partner unit, excluding the write-off of goodwill and impairment charge. This represents a decrease of $9.7 million compared to net income of $2.6 million, or $0.09 per fully diluted limited partner unit, for the three months ended June 30, 2009. The decrease was primarily a result of the $8.8 million decrease in operating income. Interest expense also increased by $1.6 million resulting from increased interest margins due to the December amendment of our revolving credit facility and a term loan. Including the write-off of goodwill and the impairment charge, net loss for the three months ended June 30, 2010 was $66.5 million, or $3.43 per fully diluted limited partner unit.

Fiscal Year Ended June 30, 2010

For the fiscal year ended June 30, 2010, the Company reported operating income of $1.8 million, excluding a $54.3 million write-off of goodwill and a $12.6 million asset impairment charge on single-hull vessels and excess tugboats. This compares with $36.5 million of operating income for the fiscal year ended June 30, 2009. Including the write-off of goodwill and the asset impairment charge, the Company reported an operating loss of $65.1 million for the fiscal year ended June 30, 2010. EBITDA decreased by $34.1 million, or 38%, to $55.5 million for the fiscal year ended June 30, 2010, compared to $89.6 million for the fiscal year ended June 30, 2009. The decrease in EBITDA resulted from a $43.9 million decrease in revenue, net of voyage expenses, which as mentioned above, is attributable to fewer working days due to the retirement of a majority of our single-hull vessels and an overall reduction in net utilization directly relating to expiring contracts and having to employ vessels in the spot market. This decrease was partially offset by a $6.2 million reduction in vessel operating expenses and a $2.6 million reduction in general and administrative expenses.

Net loss for the fiscal year ended June 30, 2010 was $20.5 million, or $1.08 per fully diluted limited partner unit, excluding the write-off of goodwill and impairment charges. This represents a decrease of $34.4 million compared to net income of $13.9 million, or $0.61 per fully diluted limited partner unit, for the fiscal year ended June 30, 2009. Including the write-off of goodwill and the impairment charges, net loss for fiscal year 2010 was $87.4 million, or $4.60 per fully diluted limited partner unit.

Fire on Gulf production platform extinguished

The crew was transported to medical facilities onshore. No injuries have been reported. Automated shutoff equipment on the platform safely turned off the flow of oil and gas from the platform’s seven producing wells before the fire occurred and the crew evacuated.

Mariner is working with regulatory authorities in response to this incident. The company mobilized fire response vessels immediately upon learning of the incident. The cause of the fire remains unknown, and an investigation is underway.

The Washington Post reports Patrick Cassidy, a spokesman for Mariner Energy, as saying that the 13 crew members were painting and water-blasting the production platform when a fire broke out near the top of the facility, where there is an oil storage tank. He said it was not clear what caused the fire, but the crew evacuated. He said there were no injuries and that all 13 crew members were accounted for. One member of the crew was a Mariner Energy employee, and the rest worked for oil service firms.

And at a press conference today U.S. Coast Guard Capt. Peter Troedsson said that,despite earlier reports, there is no evidence of an oil sheen and no visible leaks.

“We continue to investigate and to monitor that situation,” he said at a news conference.

Damen books order for first Twin Axe Catamaran

 

damen2ax540More than a year in development, the Twin Axe HSSV design is a further development of Damen’s successful Sea Axe concept and the HSSV 2610 is particularly suited for offshore wind industry support.

Martijn Smit, Damen Sales Manager for Europe, says: “Given the tremendous potential growth in the offshore wind industry there is a great need for vessels to access turbines and this can often be in constraining weather conditions. We were driven to find a concept that improves on conventional catamaran designs.”

Managing Director of Marineco UK, Mike Conafray, adds: “As a company we have been monitoring the current vessels available that service the offshore wind farms but we never felt comfortable joining in with the existing vessels. When Damen came along to us with their proposals we quickly realized that by introducing them we would be able to offer the market a much enhanced vessel that would suit most of its needs.”

The Damen HSSV 2610 has been undergoing thorough testing at Delft University in the Netherlands.

“There have been ‘stunning’ results in the vessel’s seakeeping behavior, resistance and at the same time, it has much lower fuel consumption,” Mr. Smit says, adding that the design is an extension of the Damen enlarged ship concept.

“The raised work deck and sea axe bows enable the vessel to keep up its speed in a higher sea state and that is crucial for the offshore industry. And as many of the wind turbines will be located in challenging seas, this greatly extends the operating window.”

The new vessel has dimensions of 26 m x 10 m. It has accommodations for four crew and can transport 12 passengers.

Features include a 20 tm deck crane, a spacious diving platform, HP cleaning unit and extra mooring winches.

The vessel is thus suited for a diverse range of activities for supporting and supplying the offshore wind industry, as well as the wider offshore sector. Ample working and storage space on deck make it suitable for a variety of cargoes, including containers.

With a fuel capacity of 12,000 liters, t can be used tio transfer fuel to wind turbines.

Classed by Bureau Veritas, the vessel operates under the Workboat Code, Category 1.

Depending on the sea state, the maximum speed will be 26 knots with a range of 640 nm.

Currently under construction at Damen Gorinchem in the Netherlands, the vessel is expected to be ready by June 2011.

Deepwater Horizon: Lessons learned

 

Other causes identified by Mr. Maitland in a speech prepared for delivery at today’s Global Maritime Environmental Congress 2010 in Hamburg, Germany. include “Bean-counteritis” — a failure to examine constraints on risk management budgets— and collectivism — a conviction that existing company policy is, by definition, the best that could possibly be.

Most significant, he says, is the failure to establish a risk control or safety awareness mindset at all levels of the corporate hierarchy, particularly at middle-management levels, and to effectively offset a “get it done, at the lowest possible cost” attitude at the “coalface.”

What needs to be done to prevent another disaster?

There are generally acknowledged to be three material stages in protection from oil spills: Prevention, Response and Remediation.

Mr. Maitland recommends particular attention to the following steps.

The need to match cost awareness and risk awareness. The one must not become the enemy of the other.

Prevention: implementing a successful risk assessment and management scheme for the oil industry, and indeed the shipping industry as a whole. Including in this process, an effective third-party audit system that goes “BP”, that is, “beyond paper”.

Ensuring that risk management programs, exemplified by the ISO System and the ISM Code, are not subject to unreasonable “starvation” by corporate budgetary controllers.

Funding an adequate engineering and scientific platform before, and not during or after, the disaster takes place.

Requiring that government agencies have the adequate fiscal and material resources to conduct remediation, after the spill has taken place.

Emphasizing the need for community involvement and understanding during “peacetime,” that is, before an incident occurs.

Cooperate with organized environmental advocacy groups, scientific and technical experts and other public and not-for-profit organisations to develop successful collaborative practices, drills, informational and problem-solving models.

NAMEPA, says Mr. Maitland, is concerned about these “lessons learned.”

The management of risk, in terms of oil spill prevention, means among other things that the right measures be taken to avoid disaster in the first place. Prevention and remediation go hand in hand. Planning therefore begins before the spill, to avoid it and to have a seamless response process in place.

What was done after April 20, why and how the process worked, and what needs rethinking, will be studied and debated for some years to come. It is clear that a more enforceable system of assessment and management of risk factors is needed.

There is no understandable reason—except cost cutting – for BP to have incurred $40 billion or more in liabilities; or for there to have been loss of life; or serious damage to several major industries, from petroleum to shellfish; or vast environmental harm; or the possible destruction of a company with hundreds of thousands of investors and eighty thousand employees; — except for its failure to embed an effective safety management system, when and where it mattered.

“But bean-counters seldom have remorse; quality, safety and risk management will often have no place in a corporate budget unless the law compels otherwise, and imposes severe penalties for noncompliance,” says Mr. Maitland.

You can read his complete paper HERE

And if you want to hear Mr. Maitland’s thoughts on what future regulations will look like after the Deepwater Horizon incident, he’ll be adressing that topic in a September 24 luncheon address at Marine Log’s Global Greenship conference in Washington, DC, when he will be speaking in his capacity of Managing Partner, International Registries, Inc

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