Fincantieri Aims to Buy STX OSV for $1.2B

Singapore-listed STX OSV, a global builder of offshore support vessels, revealed Wednesday that Italian shipbuilder Fincantieri is looking to acquire it's business for $1.2 billion (SGD 1.5 billion). 

Fincantieri successfully acquired 50.75 percent of STX OSV shares Wednesday at a price of 0.99 (SGD 1.22) per share, totaling $594 million (SGD 730 million). Fincantieri is now offering an unconditional cash offer for the remainder of STX OSV's shares. The offer from the Italian firm will be kept open for 28 days.

"This acquisition marks Fincantieri's entry into a market segment complementary to its current ones. With 21 shipyards in three different locations, Fincantieri will double its size to become the fifth largest shipbuilder worldwide behind four Korean peers," STX OSV said in its disclosure.

At present, South Korea's Hyundai Heavy Industries is the largest shipbuilder in the world. 

OSK Research's analyst Jason Saw told Rigzone Wednesday that he views the sale price as "somewhat low."

"The depressed sale price could be primarily driven by desperation of the STX Group to sell its assets to pare down debts. The STX Group is also looking to sell its shipping unit, STX Pan Ocean, as part of its group restructuring process," Saw said.

Saw is also of opinion that Fincantieri's general offer for STX OSV's remaining shares is unlikely to be successful. Fincantieri needs to own at least 90 percent of STX OSV in order to squeeze the remaining shareholders. Och-Ziff, the second largest shareholder, has a 12 percent stake.

STX OSV employs 9,200 people globally, and operates ten shipyards around the world. The company builds anchor handling tug supply vessels, platform supply vessels and offshore subsea construction vessels. It is also involved in seismic survey.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

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Gazprom to Start Drilling Onshore Gas Wells in Feb

Bangladesh, Jan. 24 -- Russian oil and gas giant Gazprom will start drilling the country's onshore gas wells in February, a senior Petrobangla official said.

Top Gazprom officials will be visiting Dhaka next week, while inaugurating its first-ever drilling works in Bangladesh, Petrobangla Chairman Dr Hussain Monsur told the FE.

The Russian firm is now carrying out civil works for drilling onshore gas wells in the country's state-run gas-fields.

Gazprom has already shipped two modern drilling rigs for Bangladesh to initiate drilling wells. Initially, the company will drill two wells in Titas and Srikail gas-fields with the rigs, he added.

Gazprom will be the first foreign company in Bangladesh to drill onshore wells on a contract basis to increase the country's overall gas output.

Other international oil companies (IOCs), active in Bangladesh, operate through signing production-sharing contracts (PSCs) or in joint ventures with the Bangladesh Petroleum Exploration and Production Company Ltd (Bapex).

Titas gas-field, owned by the Bangladesh Gas Fields Company Ltd (BGFCL), is the country's second largest gas producing field with its average output of around 452 million cubic feet per day (mmcfd) from 15 gas wells.

However, gas production from the Srikail field has not started yet.

The Russian company inked deals with Petrobangla subsidiaries - BGFCL, Sylhet Gas Fields Ltd (SGFL) and Bapex - on April 26, 2012 to drill 10 development wells across six gas-fields at a total cost of US$ 193.5 million.

It will drill four development wells in BGFCL's Titas gas-field and one well in SGFL's Rashidpur gas-field.

The Petrobangla chairman expressed the hope that Gazprom would be able to drill all the 10 wells by 2013, and natural gas output from these wells would be around 200 mmcfd.

Gazprom's contracts cover construction of drilling pad, camp warehouse and site preparation, rig shifting and commissioning, procurement of drilling materials, engagement of third party services, drilling, testing and commissioning and insurance.

Petrobangla approached Gazprom to develop the wells after Polish oil and gas explorer Poszukiwania Nastyi Gazu Krakow backed out despite being selected in a competitive tender two years ago.

The country subsequently passed a law that bypasses the tender process, and prevents deals inked under the new law from being challenged in courts.

Bangladesh's natural gas output currently hovers around 2,210 mmcfd against the demand for over 2,700-3,000 mmcfd.

The shortage in gas supply has compelled Petrobangla to go for rationing in supply to industries, power plants and compressed natural gas (CNG) filling stations, and to suspend officially new gas connections to households since July 2010. Published by HT Syndication with permission from The Financial Express. For any query with respect to this article or any other content requirement, please contact Editor at htsyndication@hindustantimes.com

Copyright 2013 The Financial Express. All Rights Reserved.

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Atwood Orca Snags Contract

Atwood Oceanics announced Thursday that one of its subsidiaries has been awarded a drilling services contract for the jackup Atwood Orca (400' ILC) by Mubadala Petroleum.

The Atwood Orca, currently under construction at PPL Shipyard PTE LTD in Singapore, will have a rated water depth of 400 feet, 1.5 million pound hook load capacity, accommodation for 150 personnel and significant offline handling capabilities. The agreement is for a firm duration of two years.

The Atwood Orca is expected to be delivered from the PPL shipyard in early May 2013, ahead of its scheduled June delivery after which it will mobilize for a period of approximately ten days to its first location offshore Thailand. This contract adds $ 116 million in revenue backlog, bringing Atwood's total revenue backlog to approximately $ 2.6 billion as of January 22, 2013.

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