Sevan Marine Establishes Issues Private Placement for Newbuild Rig

Sevan Marine ASA has evaluated the possibility of utilizing the SSP technology as the basis for a drilling unit with capabilities of operating in ultra-deep water and harsh environment areas. Accordingly, the Board has resolved to establish Sevan Drilling.

In order to part-finance the construction of the first SSP drilling unit and to raise necessary equity in time to exercise its contractual rights for the construction and outfitting of the unit, the Company's board of directors has proposed that a Private Placement of US $230 million be carried out. The Private Placement will be directed towards existing shareholders, and institutional and professional investors.

In this respect, a Company Presentation has been prepared, the key elements of which Include:

  • The Company has secured rights to enter into contracts with construction yards and equipment suppliers for at least two SSP drilling units. Project management, engineering and yard supervision will be handled by Sevan Marine.
  • The first SSP drilling unit shall be owned by a 100% owned subsidiary, Sevan Drilling. The Company intends to apply for a listing of Sevan Drilling on the Oslo Stock Exchange within 12 months.
  • The SSP drilling unit is characterized by its unique variable deck load capacity, extreme deepwater drilling capability, dual drill tower, high station keeping capability with full DP class 3, optimized drilling efficiency in harsh environments and environmentally sensitive areas.
  • The estimated all-in delivery cost of the first SSP drilling unit is USDm 430, which is contemplated financed through the Private Placement of NOK 1,550 million (approx. US $230 million) and through external debt financing of approximately US $200 million. Following the Private Placement, a subsequent equity issue will be directed towards existing Sevan Marine shareholders who were not invited to subscribe in the Private Placement.
  • The subscription price will based on a book-building process and will be set in an Extraordinary General Meeting to be held on March 7, 2006. The minimum allocation will be the NOK equivalent of EUR 50,000. The shares will be trading ex. right to participate in the subsequent offering as of March 8, 2006.

For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Expertise: Electrical Technician
Location: Odessa, TX
Structural Engineer, USA
Expertise: Structural Engineering
Location: USA
Junior Level Environmental Professional
Expertise: Chemical Engineering|Civil Engineering|Environmental Engineer
Location: Kennesaw, GA
search for more jobs

Brent Crude Oil : $50.79/BBL 1.30%
Light Crude Oil : $49.96/BBL 1.10%
Natural Gas : $2.77/MMBtu 2.12%
Updated in last 24 hours