Sevan gains breathing space for Voyageur re-deployment

Sevan Marine has reached agreement with a finance consortium that should help it to re-deploy the FPSO Sevan Voyageur.

Offshore staff


ARENDAL, Norway -- Sevan Marine has reached agreement with a finance consortium that should help it to re-deploy the FPSO Sevan Voyageur.

This follows an unexpectedly early termination of the vessel’s charter contract on the Premier-operated Shelley oil field in the UK central North Sea, which is due to be decommissioned this summer. Shelley came on stream last August, but its production performance has been well below expectations.

Under the agreement with GIEK/Eksportfinans, GE and Deutsche Bank AG, London Branch, Sevan may re-structure $45 million of the Senior Secured term loan, subject to conditions, creating a Secured Bond yielding 11%/yr that should close prior to May 2010.

During the initial 24 months, the Senior Secured term loan and the new Secured Bond will be repaid at the rate of $3.15 million/yr

3/17/2010

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