Offshore staff

SINGAPORE -- Swiber Holdings Ltd. has worked out a $87.5-million sales and leaseback agreement with Norway's R.S. Platou Finans Shipping A.S. for its four anchor-handling tug supply vessels (AHTSs) and one pipelay barge.

Platou is to arrange the buyers from Swiber's subsidiary, Swiber Engineering Ltd. The vessels will be leased back to Swiber Offshore Marine Pte. Ltd., another Swiber subsidiary.

The five vessels currently are under construction, with three to be delivered in the second half of this year and two in the second half of next year.

Raymond Goh, Swiber executive chairman and CEO, says the strategy is to use the cash to expand the fleet and capitalize on the thriving offshore oil and gas industries.

"The sale-and-leaseback provides us with greater flexibility in employing our cash resources toward achieving the near term growth plans. Our intention is to expand our fleet rapidly and maintain full operational and commercial over them without burdening our balance sheet and cash flow," Goh says.

Swiber operates a fleet of seven tug boats, six barges, one crane barge, and one jackup barge. It is expected to take delivery of 10 more vessels next year, including the five AHTSs and pipelay barge.

5/11/2007