S.D. Standard Drilling says it is acquiring three platform supply vessels from Volstad Shipping.
Volstad Viking, Volstad Supplier and Volstad Princess, are all large PSVs built at Aker Brattvaag, Norway in 2007-2008 and come at a total cost of $40 million.
To help fund the deal the company will enter into a six months revolving credit facility with parent company Saga Tankers for $10 million.
“The vessels grow our asset base and fleet significantly and are favorably priced at USD 13.3m per unit, representing a discount of 67% to USD 40.6m actual newbuild price and a discount of 47% to the 25-year current newbuild parity of a 9 year old vessel with an implied value of USD 25m. Furthermore, the vessels are all large and well-recognised PSVs which distinguish themselves with their tremendous power, speed and good station keeping capabilities, especially in harsh weather conditions. The vessels have an impeccable operating track record and enable the company to enter the Norwegian market. With their ice class capabilities the Vessels are also likely to be deployed for operations in harsh/sub-Arctic regions” says Martin Nes, chairman of S.D. Standard Drilling.
Following the acquisition, which is expected to be finalised in February 2017, the company will control a fleet of 10 Norwegian built PSVs.
Fletcher Shipping will act as technical and commercial manager for the vessels.