Norwegian bank looks for “ownership solution” for two seismic vessels

Norway’s SpareBank 1 SR-Bank is looking for “long term ownership solutions” for two seismic vessels. Presumably that’s bank speak for “looking for a buyer.”

On Friday, May 6, Artemis Shipping AS, which is wholly owned by SpareBank 1 SR-Bank, entered into an agreement with Bergen Oilfield Services AS (BOS)  to take over the two seismic vessels “Artemis Atlantic” and “Artemis Arctic.” At the same time, a charter agreement for both vessels was entered into between Artemis Shipping AS and Dolpin Geophysical AS for fixed contracts of four and five years respectively, including an option for two further options of two years each.

The ships are described on the BOS website as BOS Atlantic and BOS Arctic.

BOS Atlantic is a “record breaking purpose-built 2D vessel, has been designed purely for 2D and small 3D marine seismic data acquisition, including long offset (12 km) streamer capability, while BOS Atlantic is a high capacity 6 streamer 3D vessel towing Sercel solid streamers. BOS Arctic is a DPI vessel highly maneuverable and prepared to provide a full menu of geophysical solutions, including EM and OBS operations.

The purchase of the two vessels was agreed after constructive negotiations between the board of BOS and SpareBank 1 SR-Bank, which is one of BOS’s largest creditors. This was as a result of the financial situation at BOS.

SpareBank 1 SR-Bank has secured Artemis Shipping AS long term market financing of the vessels. For SpareBank 1 SR-Bank, this only involves restructuring of ongoing loan agreements that have already been entered into.

During first quarter 2011, SpareBank 1 SR-Bank carried out write downs in connection with the group’s overall exposure to BOS. The agreement regarding purchase of the two vessels will not involve SpareBank 1 SR-Bank in any further write downs.

The purpose of the purchase is to secure temporary ownership of the vessels so as maintain ongoing seismic operations and to safeguard jobs, as well as to safeguard SpareBank 1 SR-Bank’s interests.

SpareBank 1 SR-Markets has been assigned the task of finding long term ownership solutions for the vessels.

May 9, 2011