Shearwater GeoServices has acquired the former Polarcus fleet of six vessels for $127.5 million as well as Polarcus’ streamers and related seismic equipment for $50 million.
Shearwater GeoServices has acquired the former Polarcus fleet of six vessels for $127.5 million as well as Polarcus’ streamers and related seismic equipment for $50 million.
The Norwegian-based seismic contractor bought the vessels and equipment from Tiger Moth, a company affiliated with Woodstreet, after the bankrupted Polarcus was forced to cede ownership of the vessels to its creditors.
Shearwater has taken out a $107.5 million loan with DNB and GIEK and a convertible loan from its part-owner Rasmussengruppen for $85 million to pay for the acquisitions.
Shearwater CEO Irene Waage Basili said that the addition of the Polarcus’ explorer class vessels Naila, Asima, Alima, Adira, Nadia and Amani would enable Shearwater to modernize its fleet and expand into ocean bottom seismic market. ‘These investments allow us to significantly extend the commercial life of our fleet and streamer pool and to accelerate our fleet renewal programme to meet regulatory and public expectations facing our industry. By extending the runway of our asset base and maintaining our scale, we are proactively strengthening Shearwater’s position to invest in new technologies and the growing seabed market,’ said Shearwater CEO Irene Waage Basili.
Shearwater was established in 2016 with four vessels owned by GC Rieber and streamer equipment and assets taken over from the bankrupted Dolphin Geophysical. It is based in Bergen, Norway and is owned by Rasmussengruppen, GC Rieber Shipping, Schlumberger and Eidesvik. The company expanded its fleet in 2018 by taking on ten vessels (including seven 3D vessels and three multi-purpose vessels) formerly owned by WesternGeco along with related streamer equipment, proprietary technology and manufacturing facilities in Norway and Malaysia. The deal was financed with a $325 million loan.
In January 2020 Shearwater took ownership of five seismic vessels, two legacy seismic vessels and related streamer equipment owned by CGG and Eidesvik.
The latest transaction brings Shearwater’s fleet up to 28 vessels, including three ocean bottom ships and two source vessels.
Shearwater is banking on a recovery of the seismic acquisition market this year with a higher oil price, pandemic restrictions easing and big oil companies urgently needing to replenish their oil and gas reserves. The highly leveraged company negotiated a $474 million loan facility in January, which included the issuing of new equity.
The latest deal to acquire the six vessels and equipment was negotiated after Polarcus agreed with its creditors to transfer ownership of its fleet and other assets after the company defaulted on loans and bonds that were due in January 2021. Under the terms of a standstill agreement, lenders pledged to refrain from exercising any further security interests over the Polarcus Group.
The agreement was negotiated by Polarcus’ joint provisional liquidators (JPLs). Each director from the JPLs has now stood down, trading in Polarcus’ shares remains suspended and the company is now expected to be placed into official liquidation.
Peter Zickerman’s new seismic company PXGEO recently took over the remaining Polarcus vessel Vyacheslav Tikhonov, chartered to Sovcomflot.
