Solstad Farstad has agreed to sell its 50% of the shares in the 50/50 owned joint venture company Normand Oceanic AS to Subsea 7.
Normand Oceanic is the vessel owning entity for the flex-lay and heavy construction vessel “Normand Oceanic” which is being managed by Solstad Farstand while under long-term charter to a third party. The vessel is employed under a long term contract for operations in Mexico, and SOFF will remain ship manager for the vessel at least until end of this contract.
Following this transaction, Subsea 7 will own 100% of the shares in the joint venture (JV), and will assume all rights and obligations entered into by the JV.
Subsea 7 will assume all obligations related to an outstanding loan of approximately $100 million.
Jean Cahuzac, Subsea 7 CEO, said: “Our agreement to acquire Normand Oceanic reflects our strategy to own high-specification vessels that differentiate our market leading engineering and construction services to the offshore energy industry. We are focused on actively managing our fleet composition to meet our clients’ requirements and market conditions.”
“We have found a solution to the benefit of both JV partners. Subsea 7 has been a long term partner and client, and we look forward to continue this important relationship,” says CEO Lars Peder Solstad.
The sale of shares has no cash effect for SOFF, but will give a book loss of approximately NOK 144 million.