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Ocyan S.A. announced the creation of a new company (DrillCo), which will concentrate its drilling activities with its current five rigs, ODN I, ODN II, Norbe VI, Norbe VIII and Norbe IX – that will form part of the new company’s fleet. The new corporate structure is born in the context of the restructuring of the financial debt of this business unit. Ocyan S.A. will continue, unchanged, with its activities in the area of production, subsea construction, maintenance and offshore services, in addition to a minority stake in the new company. The shareholders of this new company will be formed by the holders of the debt backed by the drilling assets, in addition to Ocyan S.A., and the executive body of the new company.
The new capital structure will allow both companies to improve their respective competitiveness in their respective segments. The debt restructuring of the drilling area takes place through an extrajudicial reorganization (RE), with the obtaining of an agreement with the majority of the holders of the debt securities. The process was filed at the Rio de Janeiro Court of Justice by some of Ocyan’s drilling subsidiaries. Ocyan S.A. it is not part of the extrajudicial recovery, but only its subsidiaries dedicated to this business unit.
The creditors will convert the debt into capital and contribute US$ 197 million for new investments (capex) and other disbursements with the operation. DrillCo will be born with a highly healthy capital and debt structure. Ocyan S.A. will contribute with part of the executive body and the technical efficiency of the current staff in the drilling area to form a new business with recognized operational excellence in the market.
“The recognition of Ocyan’s technical capacity was a determining factor for the future shareholders to decide to maintain the current staff in the future company, as well as part of the executive body, which will migrate to the new company during this transition period. The process will not have any impact on customers, since the rigs’ new contracts are already being signed in the name of this new company, which will continue in the same way with suppliers. Ocyan delivers a solid structure, with market-leading safety and operational indices, an experienced team and all vessels with active contracts for the coming years”, endorses Roberto Bischoff (photo), president of Ocyan.
Ocyan S.A will remain focused on its integrated services business unit, which includes subsea construction and offshore maintenance and services, both with extensive experience and several active contracts worth around R$ 2 billion, in addition to its joint- venture, Altera&Ocyan, created for the charter and operation of production vessels (FPSOs). This last business includes the Pioneiro de Libra (PDL) and the Cidade de Itajaí (CDI), both from its own fleet, and the operation of platforms P-61 and P-63 in the Papa-Terra field of 3R Petroleum.
DrillCo
The constitution of DrillCo is the result of the agreement signed between Ocyan S.A. and a majority group of creditors representing approximately 71% of Bonds 21 and 57% of Bonds 22, after negotiations started in November 2021. The five rigs were financed in the Project Finance model and the debts were settled with the transfer of these assets to new company. The RE process enables the implementation of the private agreement for the other holders of Bonds 21 and 22.
The transfer of resources and assets to the new drilling structure is already underway and should be completed after approval of the RE plan, expected to occur by the third quarter of 2023.
After its homologation in Brazil, the RE plan will be presented in the court of New York under the “Chapter 15” regime of the U.S. Bankruptcy Code, for recognition of effects in the US.
DrillCo will undergo a rebranding process in due course.
Source: TN
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Valaris Limited announced new contracts awarded subsequent to issuing the Company’s most recent fleet status report on February 21, 2023. Three-year contract with Petrobras for drillship VALARIS DS-8. The rig will be reactivated for this contract. The total contract value is approximately $500 million, including a $30 million mobilization fee. 100-day contract with a TotalEnergies affiliate for drillship VALARIS DS-12. The contract is expected to commence in second quarter 2023. 70-day contract with Beach Energy offshore New Zealand for heavy duty modern jackup VALARIS 107. The contract is expected to commence in third quarter 2023. The total contract value is approximately $26 million. President and Chief Executive Officer Anton Dibowitz said, “We are particularly pleased to have secured the award for preservation stacked drillship VALARIS DS-8, for a contract that is expected to generate a meaningful return over the firm contract term, and we remain focused on exercising our operational leverage in a disciplined manner. This most recent award represents the sixth contract awarded to one of our high-quality stacked floaters since mid-2021, and speaks volumes about our demonstrated track record of project execution when reactivating rigs.” Dibowitz added, “Following the reactivation of VALARIS DS-17 and DS-8, we will have ten floaters working across the golden triangle, including four drillships in Brazil, a market where we expect to see continued growth over the next several years.” Updated Guidance As a result of the contract awarded to VALARIS DS-8, which will require the rig to be reactivated from preservation stack, we are updating our first quarter 2023 and full-year 2023 guidance provided on our fourth quarter 2022 conference call on February 21, 2023. First Quarter 2023 Contract drilling expense is expected to increase by approximately $5 million to $385 million to $395 million. Adjusted EBITDA is expected to decrease by approximately $5 million to negative $5 million to breakeven. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $25 million to $30 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Full-Year 2023 Revenues are anticipated to be $1.8 billion to $1.9 billion, unchanged from the guidance provided on our fourth quarter 2022 conference call. Contract drilling expense is expected to increase by approximately $60 million to $1.49 billion to $1.59 billion. Adjusted EBITDA is expected to decrease by approximately $60 million to $180 million to $220 million. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $280 million to $320 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Capital expenditures are expected to increase by $60 million to $320 million to $360 million. Source: Valaris Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Seadrill Limited announced that the West Neptune has executed approximately six months of term extensions with LLOG Exploration Offshore, L.L.C in the US Gulf of Mexico. The extensions will commence in direct continuation of the existing term, and will keep the rig busy until Q3 2024, furthering Seadrill and LLOG’s long-term association. Total contract value for the extension is approximately $79 million. Source: Seadrill Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Semisub rig owner Dolphin Drilling has inked a new contract with Peak Petroleum in Nigeria for its 1974-built Blackford Dolphin. The firm contract, which follows the letter of award in January, gives the Euronext Growth-listed owner of three rigs the potential to extend the unit’s backlog by a minimum of 120 days and up to 485 days. The deal adds to and will be a direct continuation of the previously announced 12-month contract with General Hydrocarbon Limited (GHL). Øystein Stray Spetalen-backed company said the effective dayrate associated with the minimum firm period of the contract is $325,000, including the mobilisation fee. “The final award of the contract for Blackford Dolphin shows the opportunities in Nigeria at a strong dayrate, in addition to building on the backlog for the rig. It also underlines the attractiveness of our assets, and we look forward to returning to revenue-generating operations in 2023,” noted Bjørnar Iversen, CEO of Dolphin Drilling. Source: Dolphin Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
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