Sevan changes focus to offshore accommodation

Sevan Marine has agreed to sell the semi-completed cylindrical Sevan hulls 4 and 5 to Logitel Offshore.

Offshore staff

ARENAL, Norway – Sevan Marine has agreed to sell the semi-completed cylindrical Sevan hulls 4 and 5 to Logitel Offshore. Total purchase price is $41 million.

Sevan will grant an additional loan of $10 million to Logitel for completion of both hulls as offshore accommodation units.

Singapore-based Logitel was established in co-operation with Sevan to promote floating accommodation units based on the Sevan design. The company has agreements with a yard for the construction of two units, with options for two more. Work on hull 4 is expected to start soon.

Sevan is also looking to develop new markets for the Sevan design. The company and its co-founder Arne Smedal have established CeFront Technology to this end.

Carl Lieungh, Sevan’s CEO, said: “We have actively marketed the hulls for FPSO projects in recent years, but for various reasons it has proven difficult to convert keen customer interest into firm contracts. The Logitel transaction reduces downside risk in Sevan while increasing the upside potential and free cash flow, and brings with it the option to become a Logitel shareholder.”

Smedal added: “CeFront gives us the opportunity to work on miscellaneous projects for a wider group of customers, while at the same time maintaining the best of relations with Sevan. Through Logitel Offshore, we look forward to building a company with a new fleet within the accommodation and offshore logistics market based on Sevan’s design. We are also already looking at other potential applications and markets for the Sevan design, which is a commercially and technically competitive solution to semisubmersible platforms in various offshore markets.”

5/24/2013

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