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HitecVision and GC Rieber Shipping agree to form new subsea services company

GC Rieber Shipping and HitecVision have today entered into a 50/50 joint venture agreement in order to create a new subsea services company. The basis for the joint venture is GC Rieber Shipping’s investments in the geotechnical company Bluestone Offshore Pte Ltd and the subsea services company Technocean AS, including its subsidiary Scan Mudring.

GC Rieber Shipping and HitecVision have today entered into a 50/50 joint venture agreement in order to create a new subsea services company. The basis for the joint venture is GC Rieber Shipping’s investments in the geotechnical company Bluestone Offshore Pte Ltd and the subsea services company Technocean AS, including its subsidiary Scan Mudring.

The joint venture has been established to drive further growth and strengthen the operational base in the existing companies. Furthermore the joint venture will be looking for strategic growth opportunities within niches in the global subsea services market, in close co-operation with its customers the oil companies and major oil service companies.

Under the joint venture agreement, GC Rieber Shipping will contribute its shareholding in Bluestone and Technocean to the joint venture, as well as a direct investment of NOK 35 million.  HitecVision will contribute with capital initially of NOK 160 million. Both parties have also under the JV agreement committed to certain follow-on investments. The joint venture company will be a majority shareholder in both Bluestone and Technocean and have a significant financial capacity to consider follow-on investments in both companies.

The joint venture company will immediately provide USD 17.5 million of growth capital for Bluestone, which allows Bluestone to restructure its balance sheet and provides a stable financial foundation for further growth. The joint venture company has also allocated capital to participate in future share issues in Technocean, which may be required to fund working capital and investments to support Technocean’s rapid growth.

“The global demand for a wide variety of subsea services is expected to grow significantly over the coming years, although the JV parties acknowledge that the market in the very near term is seen to be challenging”, says Sven Rong, CEO of GC Rieber Shipping.

Bluestone Offshore is a deepwater offshore geotechnical survey services company based in Singapore. Geotechnical Survey Services involves drilling, sampling and analysis of the seafloor to provide data to oil companies and engineering companies for the design of subsea facilities and anchors for oil rigs and other floating facilities.

Technocean, based in Norway, provides subsea inspection, maintenance and repair, survey and light construction support services. It currently has one CSV vessel on long term contract in the North Sea and is well positioned to expand the fleet to build a presence in West Africa and Brazil.

Scan Mudring is a wholly-owned subsidiary of Technocean and is a specialist provider of subsea dredging services. The company has a track record of executing successful projects in deep water, with difficult operating conditions and in areas with restricted access.

“The combination of GC Rieber Shipping’s maritime expertise within subsea support and HitecVision’s competence in building oil service businesses represents a powerful partnership for creating an international subsea services business of scale. The three cornerstone companies in the JV are all well positioned within their respective niches to deliver high growth and will form a solid platform from which to expand the group,” says Pål Reed.

 

 

 

 

 

 

 

 

 

 

GC Rieber Shipping is a highly respected owner and operator of seven advanced multi functional special purpose vessels for defined markets within offshore subsea, ice research and support and marine seismic. Furthermore, GC Rieber Shipping has recently acquired two subsea IMR newbuildings for delivery in 2010/11 and has through a 51% owned joint-venture company three offshore support new buildings for delivery in 2010. The company’s strategic value chain investments include the subsea contractor Technocean (58 % stake), Octio Group, which specializes in permanent monitoring of oil fields (60 % stake) and the geotechnical company Bluestone Offshore (40 % stake). The Company is headquartered in Bergen with ship management offices in Sevenoaks (England), Singapore and Yuzhno-Sakhalinsk (Russia), which provide a global presence. The Company is listed on Oslo Børs with ticker RISH.

 

www.bluestoneoffshore.com

 

 

 

 

www.technocean.no

 

 

 

 

www.scanmudring.com