PGS Enters into a Sale & Leaseback Agreement of PGS Apollo Vessel

Source: www.gulfoilandgas.com 6/2/2015, Location: Europe

Petroleum Geo-Services ASA (PGS) has entered into a sale and leaseback agreement of PGS Apollo, the only non-Ramform designed 3D vessel in the PGS fleet, and the best suited vessel for such a transaction.

The sale and leaseback agreement is established between PGS and Offshore Merchant Partners (OMP) on a 10-year bareboat charter, with an option for a 5-year extension at a reduced rate. PGS has the option to acquire the vessel after end of year 5 and 8, but no obligation. The lease will be reported as an operating lease.

PGS has a solid financial position with a liquidity reserve of $558.9 million as of end Q1 2015. The proceeds from the transaction amount to $80 million, before transaction costs, and will strengthen the financial position of PGS further, making the Company even better positioned to navigate in the current challenging market.

PGS Apollo entered the PGS fleet in 2010 following the acquisition of Arrow Seismic ASA in the second half of 2007. The price paid for Arrow Seismic ASA reflected a strong seismic market and, as a result, the recorded value of the vessel in the PGS group accounts exceeded construction cost of the vessel. As a result of this transaction, PGS expects to record a loss on sale in Q2 2015 of $57 million.

OMP is a portfolio company of HitecVision L.P VI, which primarily targets investments in global oil & gas related offshore asset markets. Navis Finance acted as advisor to the transaction.


Cyprus >>  5/3/2022 - PGS is awarded a Wide Azimuth 3D acquisition contract offshore Cyprus. Mobilization is scheduled to start mid-June and acquisition is expected to com...
Norway >>  4/27/2022 - PGS leverages the multiyear frame agreement with Equinor, announced last year, to secure contracts for the 2022 summer season.

PGS is awar...


Related Categories: Barges  Boats  Commercial Vehicles - Buses  Commercial Vehicles - Trucks  Float Equipment  Flotation Cells  General  Helicopter  Passenger Cars  ROV  Tires  Vehicle Parts 

Related Articles: Barges  Boats  Commercial Vehicles - Buses  Commercial Vehicles - Trucks  Float Equipment  Flotation Cells  General  Helicopter  Passenger Cars  ROV  Tires  Vehicle Parts 


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