Aker Energy is set to acquire a floating production storage and offloading vessel (FPSO) for the development and commercialization of the Deepwater Tano Cape Three Points block offshore.
Aker’s Norwegian-based parent company, Kjell Inge Rokke which holds majority shares in the FPSO is operated by Ocean Yield. This ownership is held through its subsidiary Aker Capital AS, which owns 108,066,832 Shares, representing 61.65 per cent of the outstanding Shares in the Company.
The President and Chief Executive Officer of Norway’s Aker ASA, Øyvind Eriksen commented:
“Aker has been the driving force behind the development of Ocean Yield since it established the company in 2012. The company has since 2012 grown its fleet significantly from 3 to 63 vessels and is today positioned as a leading maritime leasing company with a strong backlog towards solid counterparties and a highly competent management team.
“As an industrial investment company, Aker is constantly reviewing strategic options related to its investments and has now decided that it is time to let a new owner continue the growth journey.”
Øyvind Eriksen, Aker ASA
In connection with the offer, Aker Energy (or its nominated affiliate) has been granted an option to acquire the FPSO for US$35 million, exercisable up to 16 days before the completion of the takeover.
Apart from this, Aker Energy has made previous payouts to Ocean Yield of about US$17.9 million as compensation for certain prior options related to the FPSO as well as certain other related services.
In total, Aker Energy’s investment committed to securing the FPSO if the Purchase Option is exercised, will amount to US$52.9 million.
That said, dialogues regarding the sale of the FPSO to Aker Energy have ensued for some time now over acquiring the FPSO 214,266-cbm Dhirubhai-1 (built in 1979).
Ocean Yield FPSO gone dormant since 2018
Meanwhile, Ocean Yield’s FPSO has been dormant since its last contract in India expired in 2018. The Company has been trying to sell or find further employment for the FPSO since the contract expiration in India three years ago.
Earlier this year, Ocean Yield indicated that its subsidiary Aker Contracting had received a notice from Indian authorities regarding a potential tax claim related to a previous contract for the FPSO. Albeit, the size of any potential claim has not been made public.
More to the point, this move comes after the government of Ghana expressed interest for the National Oil Company (NOC), GNPC to acquire bigger stakes in the DWT/CTP block offshore. A transaction which is still under negotiations, albeit, there is greater certainty that the deal will be sealed by the NOC as the government has given its unflinching support to GNPC to become an operator in the country’s upstream sector.
Also, this is in spite of the controversies that surround the deal of which there is yet to arise some clarity on the amount the government will pay to acquire stakes in Aker Energy.
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1979 FPSO. We have lessons to learn from the operations of FPSO Kwame Nkrumah.
Ofcourse, KT. FPSO Kwame Nkrumah is a good case study for us to learn from.