Standard Drilling sheds platform supply vessel

Cyprus-based offshore vessel operator S.D Standard Drilling has entered into a memorandum of agreement (MOA) to sell one of its platform supply vessels.

Standard Drilling said on Friday that the memorandum of agreement was for the sale of the Standard Olympus PSV. The platform supplier will be sold for $7.5 million.

The sale of the vessel will result in a gain for Standard Drilling of gross $1.3 million. Standard Olympus is a seven-year-old large platform supply vessel, built at Havyard Ship Technology AS in Norway, with 800 square metres of deck space. 

Martin Nes, chairman of Standard Drilling, said: “The transaction is a result of our renewed focus on more diversified investments within the shipping, offshore and renewables segments. It gives Standard Drilling increased flexibility to pursue other investments opportunities“.

Following the sale, the company will control, directly and indirectly, a fleet of nine platform supply vessels – three large 1,000 square metre PSVs which are 100 per cent owned and six medium-sized PSVs with approximately 28 per cent ownership interest.

The company also has a 33.3 per cent ownership of the VLCC vessel Gustavia S and a share portfolio. According to the company, the sale will further strengthen the company’s cash balance.

The transaction is subject to certain corporate resolutions and the buyer’s inspection and acceptance of the vessel. The transaction is expected to be completed within August 2021.

In related news, Standard Drilling secured a 1 per cent ownership in offshore drilling contractor Noble Corporation in March.

The company purchased 500,000 shares in Noble Corporation at $18.5 per share. Noble Corp. completed its restructuring and Chapter 11 process on 5 February 2021.

Having disposed five cold stacked rigs in the fourth quarter, Noble entered 2021 with 19 offshore drilling units, consisting of 7 drillships and semi-submersibles and 12 jack-ups.