Siem Offshore buys out Secunda Canada

Siem Offshore buys out Secunda Canada

Norway’s Siem Offshore has bought the remaining 50% stake in Secunda Canada LP, which manages a “harsh-weather” fleet of offshore support vessels (OSVs) from its offices in St. John’s, Newfoundland and Dartmouth, Nova Scotia.

Siem Offshore acquired its partner Birch Hill’s 50% ownership interest in the Canadian company for an undisclosed sum in order to recapitalise the business, but said the acquisition “will not have a significant cash flow effect” for Siem, which is now 100% owner of Secunda.

The Oslo-listed company has financed the acquisition of the anchor handling tug support (AHTS) vessel Avalon Sea, which was delivered to Secunda from Remontowa Shipyard on May 12. Siem has also provided the vessel’s importation costs and working capital items.

Avalon Sea has been specially designed and equipped for Canadian waters and commence a six-year contract with an unnamed “international oil company” before June 1, Siem said in a filing today.

“Avalon Sea will be the most advanced vessel in the Canadian market and will support two large production fields, Hibernia and Hebron,” the company said, adding that its buy-out of Secunda “supports our long-term commitment to the Canadian market”.

 

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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