Aurora Coey has dual-fuel engines to operate on LNG and works in the UK sector for Harbour Energy (source: Pelagic Partners)
Norwegian owners jostle for market position and agree splits, sales, investments and mergers
It has been a crazy period for equity sales, vessel acquisitions and fleet movements in the offshore support vessel sector, especially for Norwegian owners and investors seeking to expand or cash in. There have been sizable investments and shareholding changes in Oslo-listed vessel owners, with the biggest and possibly most surprising being a leadership change and fleet split at Siem Offshore.
A fleet of 26 vessels owned by Siem Offshore will be pulled apart and leadership at the top is changing, following an amicable agreement between major shareholders. Kristian Siem, owner, is leaving to start another company with nine of these vessels – four platform supply vessels (PSVs), three anchor-handling tug, supply vessels (AHTSs) and two offshore subsea construction vessels (OSCVs), under the Siem Sustainable Energy company, in exchange for 35%, all of Mr Siem’s shareholdings in Siem Offshore.
This leaves Kistefos, owned by Christian Sveeas, as the main shareholder and a fleet of 17 vessels including large AHTSs, PSVs, OSCVs, multipurpose, well intervention and subsea support vessels. These nine vessels will be transferred to Mr Siem’s enterprise as soon as practically possible and before 1 July 2024.
Mr Siem’s company will assume US$117.5M of existing vessel debt as part of the transaction, while Siem Offshore will continue to manage these nine vessels under industry-standard shipmanagement agreements for a minimum period of one year.
Mr Siem explained the reasons behind the change of direction, leadership and fleet split, providing indications of the issues behind the running of Siem Offshore and differences of opinion with Kistefos.
“The company has two major shareholders with different values, culture and objectives,” he said. “There are several ways forward which may serve the company well, but only one avenue can be chosen and only one party can hold the helm.”
There will be a period of transition of these nine OSVs and in the leadership of Siem Offshore, but it is likely that the company’s name will change once this is all completed.
This year, Pelagic Partners expanded its presence through a strategic investment in two 2021-built PSVs. It joined forces with Borealis Maritime and Aurora Offshore to own and manage 89-m Aurora Coey, formerly Viking Coey and Aurora Cooper, ex-Viking Cooper.
These ice-class PSVs have dual-fuel engines to operate on LNG or diesel and are working in the North Sea market – Aurora Coey offshore Scotland with Harbour Energy and Aurora Cooper in Norway. They are fitted with hybrid battery power and low-loss concept solutions that further reduce emissions, while their onshore power capability enables them to use power from national grids while in port.
Pelagic Partners’ investment expands its previous exposure to owning offshore energy assets as it has also invested in Oslo, Norway-listed owner Golden Energy Offshore Services (GEOS) and its fleet of seven support vessels. Borealis Maritime is a private investment and asset management firm.
In April, there was a change in ownership at GESO with Fleetscape, an Oaktree Capital Management fund, selling its 39% stake of shares for US$39.5M to Blue Ocean, with the transaction expected to be completed by 16 May 2024. GEOS owns five PSVs and two multipurpose support vessels. Oaktree has been one of its lenders since July 2022 and an equity owner since August 2023.
Seismic survey specialists PGS and TGS received Norwegian competition clearance for their planned merger on 17 April 2024. They are waiting for clearance from the UK Competition Market Authority, due in June, to progress with the transaction. Shareholders from both companies have agreed the merger.
