Frontline to spin off floating production ops into new 'Sea Production' firm
Frontline Ltd said it is to spin off a new company, to be known as 'Sea Production', in a bid to develop the shipping group's floating production (FPSO) activity.
Frontline, which yesterday saw its heavy lift operations listed in Oslo as Sealift, said 'Sea Production' is to be established as a separate entity to focus on floating production and storage projects.
The firm said it is currently in discussions regarding the sale of all its floating production activities, including the FPSO vessel 'Front Puffin', to Sea Production Ltd.
Front Puffin is currently undergoing conversion into a FPSO vessel with completion expected in the second quarter.
In addition to Front Puffin, Frontline said it is in negotiations with Greenwich Holdings regarding the purchase of two double-sided Aframax tankers suitable for FPSO conversion, and the FPSO vessel 'Crystal Ocean' from
Seadrill Ltd.
While the final terms for these transfers are still under discussion, Frontline said it is in the process of bringing external investors into Sea Production, and that the new company will be financed on a standalone basis.
Frontline did, however, say that Keppel Shipyard is expected to be a substantial shareholder in Sea Production, and that together with Frontline, the two parties intend to hold a minimum of 33 pct of the new firm's equity.
Clarification about the financing of Sea Production and the final terms of the sales will be communicated to the market within the next week, Frontline said.
Sea Production's chief executive and chairman will be Oscar Spieler, the previous chief executive of Frontline Management AS.
Frontline, which yesterday saw its heavy lift operations listed in Oslo as Sealift, said 'Sea Production' is to be established as a separate entity to focus on floating production and storage projects.
The firm said it is currently in discussions regarding the sale of all its floating production activities, including the FPSO vessel 'Front Puffin', to Sea Production Ltd.
Front Puffin is currently undergoing conversion into a FPSO vessel with completion expected in the second quarter.
In addition to Front Puffin, Frontline said it is in negotiations with Greenwich Holdings regarding the purchase of two double-sided Aframax tankers suitable for FPSO conversion, and the FPSO vessel 'Crystal Ocean' from
Seadrill Ltd.
While the final terms for these transfers are still under discussion, Frontline said it is in the process of bringing external investors into Sea Production, and that the new company will be financed on a standalone basis.
Frontline did, however, say that Keppel Shipyard is expected to be a substantial shareholder in Sea Production, and that together with Frontline, the two parties intend to hold a minimum of 33 pct of the new firm's equity.
Clarification about the financing of Sea Production and the final terms of the sales will be communicated to the market within the next week, Frontline said.
Sea Production's chief executive and chairman will be Oscar Spieler, the previous chief executive of Frontline Management AS.
