Oceanteam ASA has signed a Letter of Intent (LOI) with a leading company in the offshore oil and gas industry, for long term charter and 50/50 joint (beneficial) ownership in vessel CSV North Ocean 102 as well as a long term charter and 50/50 joint (beneficial) ownership in Oceanteam's option vessel CSV North Ocean 105 to be built at Metalships, Vigo Spain.
The 5 year charter of CSV North Ocean 102 would commence upon redelivery of the vessel following completion of the current ABB charter which is estimated to be in June 2010.
The 5 year charter of CSV North Ocean 105 would start upon delivery of the vessel which is expected end 2011. The CSV North Ocean 105 new build project is subject to finance.
Upon closing of the transaction Oceanteam would jointly own, control and manage the special purpose ship owning companies with our joint venture partner. Our partner would have the option to purchase the remaining shares in the respective ship owning companies on the 5th anniversary of the closing of the transaction for the CSV North Ocean 102 and completion of the 5 year charter party for the CSV North Ocean 105.
The commercial terms between the parties remain confidential and completion of the transactions are subject to due diligence, finance and board approvals.
The transaction is expected to have a positive net effect on Oceanteam's liquidity.
Oceanteam will present additional information as soon as the current process has been finalized.
The announced LOI is the result of Oceanteam's changed business focus on long term charter agreements after its recent successful operational and financial restructuring process.