PFS, SCAN sign sales and lease-back agreement

PFS Shipping (Singapore) has signed a Letter of Intent with SCAN Geophysical for a sale and lease-back agreement for three newbuilds under construction at the ABG Shipyard in India.

Offshore staff

OSLO -- PFS Shipping (Singapore) has signed a Letter of Intent with SCAN Geophysical for a sale and lease-back agreement for three newbuilds under construction at the ABG Shipyard in India.

The agreement implies that SCAN will sell its three new high-capacity 3D vessels, including complete seismic equipment, to PFS by assuming responsibility for the majority of the remaining commitments related to the vessels and seismic equipment during the construction period.

Upon delivery from the shipyard, the vessels will begin 12-year bareboat charters to SCAN, with following 5 x 2-year options. The charter rate per vessel, including all the seismic equipment, is agreed to be $40,000 per day.

Expected delivery date for M/V SCAN Empress is end of March 2009, with start up in mid April. M/V SCAN Finder and M/V SCAN Superior will be delivered in 3Q and 4Q 2009 respectively.

11/10/2008

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