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3rd quarter 2016 financial report -Island Offshore shipholding Lp

The 3rd quarter 2016 financial report for Island Offshore Shipholding LP is now available.

For more information please contact:

Mr. Henning Sundet, Chief Financial Officer: hsundet@borgstein.no, +47 913 65 735

islandoffshore_q3_financialreport_2016.pdf

ISLAND OFFSHORE SHIPHOLDING LP ANNOUNCES PLAN TO ADRESS THE LONG TERM FINANCING STRUCTURE OF THE GROUP


Island Offshore Shipholding LP, acting through its general partner Amnor LLC ("IOSH") together with the entitites where IOSH owns more than 50% of the shares/ownership interests (The "Group") announces its decision to formally address its long term financing structure with the aim of restructuring the groups balance sheet.

To read more, please follow this link:

http://www.newsweb.no/newsweb/search.do?messageId=413660

Investor Relations Contact:

Mr. Henning Sundet, Chief Financial Officer: hsundet@borgstein.no, +47 913 65 735

q2-16 financial report for Island offshore shipholding lp

The second quarter 2016 Financial Report for Island Offshore Shipholding LP is now available.

For more information please contact:

Mr. Henning Sundet, Chief Financial Officer: hsundet@borgstein.no, +47 913 65 735

islandoffshore_q2_financialreport_2016.pdf

NEXT STEP FOR ISLAND OFFSHORE - RISERLESS HEAVY WELL INTERVENTION

Riserless Heavy Well Intervention is the next step for Island Offshore
Riserless Heavy Well Intervention is the next step for Island Offshore

Winning this year’s ONS Innovation Award has aroused quite some interest for Island Offshore and its riser-less coil tubing (CT) technology. Now Island Offshore is ready for the next step; performing heavy well intervention with coil tubing in producing subsea wells.

This success story started in 2014 when Island Offshore drilled three wells for Statens Vegvesen (Norwegian Public Roads Administration) utilising the monohull vessel Island Performer. 450 meter of well were drilled, whereof over 150 meters of core samples were collected from the three  locations in order to obtain information about the geological conditions of the upcoming world’s longest and deepest subsea road tunnel. With this successful project the riser-less CT-technology was considered proven.

In 2015 Island Offshore made history when drilling a pilot hole for Centrica by means of riser-less coil tubing, in order to check for shallow gas at the location. The technology had never been utilized in the offshore petroleum-industry before and proved to be a safer and cheaper alternative to traditional drilling.

“The system comprised of a relatively standard coil tubing spread from Baker Hughes, rigged up on the LWI vessel Island Constructor in combination with a custom made subsea coil tubing injector and a subsea guidebase solution from Island Offshore. Specialized drilling procedures allowed unconsolidated sand and shale formations to be drilled safely without any major issues,” says Manager for Top Hole Drilling and P&A Activities in Island Offshore, Per Buset.

To use a rig for pilot hole drilling is much more costly than using a mobile offshore unit like the Island Constructor. Due to less manning and lower capital expenditure for “smaller” size well intervention vessels compared to a drilling rig, a lower daily rate for the riser-less coil tubing operation can be offered to the market. This will apply both for heavy intervention in subsea-producing wells, and for drilling pilot-holes to check for shallow gas. According to Centrica they saved about 30 - 50% by using this riser-less method on the Butch field project together with Island Offshore last year.

 

No riser

Instead of using a rigid work-over riser, the coil tubing is kept in tension between the vessel and the subsea injector by means of a second injector installed on board the vessel. Pressurized drilling-fluid pumped into the coil tubing drives the mud- motor which makes the bit rotate. The subsea injector pushes the coil tubing into the well creating weight on bit, and pulls the coil tubing out of the well when drilling is completed.

“The next step will be to adopt the system to perform heavy intervention with coil tubing in subsea wells. Intervention in subsea wells today are performed from Light Well Intervention (LWI) vessels, with wireline through a subsea lubricator. Obviously, wireline has its limitations compared to coil tubing,” says Buset.

Heavy intervention with coil tubing are rarely done, due to the high cost and challenges with meeting good HSE-standards. Using coil tubing for heavy intervention today requires use of a drilling rig and a complex work-over riser-system.

A more reliable and less costly way to do heavy intervention in the future will be to run the coil tubing in open water without a workover riser system; same methodology as for LWI with wireline through a subsea lubricator. For the coil tubing application, a subsea injector (controlled and powered by a ROV), will be installed on top of the subsea lubricator. Island Offshore have built and proved the innovative injector and is now awaiting the delivery of a stripper element between the subsea-injector and the subsea lubricator in order to hold back pressure from the well. As soon as the stripper is qualified for offshore use, Island Offshore can offer heavy well intervention in producing subsea wells with coil tubing, perhaps as early as second/third quarter 2017.

HSE impact

The use of riser-less coil tubing operations in subsea completed wells will result in less discharge to the environment. This due to the fact that less and smaller equipment is required, and less time spent, compared to a full drilling rig spread. The same benefit will be achieved when drilling a pilot hole using this method (like the well for Centrica) compared to drilling the pilot hole from a drilling rig.

Another important aspect is that a rig will need far more time than a vessel to move away, should a well-control situation occur. In addition the coil tubing’s flexibility makes the vessel able to keep pumping mud down the well to hold back or stop a potential shallow gas influx, while moving the vessel to a secure area. Should one come across gas and the well needs to be cemented back, it will imply large costs to move the rig to a new location for a possible new pilot hole.

During coil tubing operations on drilling rigs there is also a risk for injured personnel, while working on compensated equipment inside the derrick in riding belt. When using the riser-less coil tubing method personnel will not be working on compensated equipment, there is no use of riding belt, and personnel will not be working under suspended load. The risk for personnel during running and pulling the rigid work-over riser is eliminated 100% as there is no need for this riser. And for same reason, time spent on running and pulling the riser is also eliminated 100%.

“There has been no coil tubing operations performed from drilling rigs in Norway due to this in the last eight years. With riser-less coil tubing operations the amount of equipment is reduced compared to riser operations on a drilling rig. In other words, much less equipment to handle results in less personnel required,” explains Buset.

Potential

With riserless coil tubing one can perform heavy maintenance to increase production and get more oil and gas out of the reservoirs. Such maintenance can be removal of sand, scale and wax (restrictions) in order to achieve the original inner dimension of the production tubing. Nitrogen lifts, cement jobs, plug and abandonment in general, are other potential examples.

“The oil companies are rarely doing heavy well intervention because of the high cost (drilling rig + work-over riser-system), but they have expressed numerous times that there is a need, and if the cost is low enough, they will do it. This will be a game changer for intervention work in subsea producing wells, including the plug & abandonment market. The future is still to come and the potential for all parties, both oil companies and service providers is huge.

“In the current situation the industry will leave no stone unturned in the search for new and cost effective solutions. We have already been asked to present our riserless coil tubing technology on important arenas in the time to come, and explain what possibilities this system provides,” Buset rounds off.

 

 

For more information, please contact Island Offshore:

Håvard Ulstein, Managing Director Tel. (47) 70 40 00 21 E-mail: havard@islandoffshore.com

or

Per Buset, Manager Top Hole Drilling and P&A Activities Tel. (47) 51 81 71 07 E-mail: per.buset@islandoffshore.com

 

Island Offshore and Centrica winners of the ONS Innovation prize

Island Offshore and Centrica proud winners of ONS Innovation Awards!
Island Offshore and Centrica proud winners of ONS Innovation Awards!

We are proud to announce that Island Offshore, together with Centrica, won this year’s ONS Innovation Award for developing the Riser-less coil tubing drilling system utilized to check for shallow gas at the Butch field last year. This was the first time ever in the oil and gas industry that riser-less coiled tubing drilling operations were performed.

Department Manager Top Hole Drilling and P&A activities in Island Offshore, Per Buset received the prize together with Centrica's Project Manager Espen Kopperud.

"This is an important award for us and especially at times like theese. We would like to thank Centrica for believing in us and our technology and for their vital contribution to this successful project," says Per Buset.

For more information about the technology, please contact:

Per Buset, Department Manager Top Hole Drilling and P&A activities

Tel. (47) 51 81 71 07 / 91 83 92 89

E-mail: per.buset@islandoffshore.com

Island Offshore appointed finalist for the ONS Innovation Award

Island Offshore appointed finalist for ONS Innovation Awards!
Island Offshore appointed finalist for ONS Innovation Awards!

Island Offshore, together with Centrica, are nominated for this year’s ONS Innovation Award for developing the Riser-less coil tubing drilling system utilized to check for shallow gas at the Butch field last year. This was the first time ever in the oil and gas industry that riser-less coiled tubing drilling operations were performed.

There were 58 applicants for the award and the five finalists were carefully selected by a jury. The winner will be presented at the conference session “Long Term Perspective for the NCS” on the second day of the ONS conference in Stavanger; Tuesday 30 August 2016 10-12 AM at the Clarion Hotel Energy.

The winner will present its technology at the Technical Session ONS Innovation Award at 15.00 the same day. This session is free and open to everyone.

Read more about the nomination here: http://www.ons.no/2016/news/finalists-ons-innovation-awards-techinvent-and-island-offshorecentrica/

In addition to the nomination, Island Offshore has been chosen to speak at the ONS Technical Sessions. Together with Centrica we will present the Butch pilot: The industry’s first riser-less coiled tubing drilling. Don’t miss out!

 In addition we will share our thoughts about:  “10 years with RLWI- What about the future?”  

To find out more, please follow the link: http://www.ons.no/2016/?event=session-2-new-concepts-for-drilling-operations

Where: Hall 6

When: Tuesday 30th August 10:00 AM

 

#ons2016

 

 

ISLAND VANGUARD CONTRACT AWARD

Third consecutive year for Oceaneering
Third consecutive year for Oceaneering

Multi field P&A campaign secured for the Island Vanguard

Island Offshore is pleased to announce a multi field Plug & Abandonment campaign with Oceaneering. The campaign comprise work for major operators in the North Sea and will commence in early August. “The 2016 campaign will be the third consecutive P&A campaign between the Island Vanguard and Oceaneering and we are very pleased to continue our good cooperation,” says Managing Director in Island Offshore Håvard Ulstein.

For more information, please contact:

Chartering Manager Hallgeir Linge Reitan

Mob.: 948 00 662/ hallgeir@islandoffshore.com

contract secured for Island Dawn

Island Dawn to work for Tullow Ghana!
Island Dawn to work for Tullow Ghana!

Tullow Ghana has awarded a contract to the offshore supply vessel Island Dawn. The contract will commence on June 20th, and the vessel will perform supply duties offshore Ghana.

“We are very pleased to have secured work for Island Dawn in such a poor PSV market. This is our first contract with Tullow Ghana and we look forward to cooperate with them in the time to come,” says Managing Director in Island Offshore Håvard Ulstein.

For more information, please contact:

Chartering Manager Hallgeir Linge Reitan

Mob.: 948 00 662/ hallgeir@islandoffshore.com

Island COntender to work for Lundin

Island Contender to work for Lundin!
Island Contender to work for Lundin!

Island Offshore is pleased to announce that we have secured a firm contract with Lundin for three wells, commencing in the summer/autumn 2016. The Island Contender will be the vessel to perform the job.

The Island Contender is upgraded with the class notation DEICE, and Lundin plans to use the vessel for their Barents Sea Operation.

The firm contract is estimated to 160 days and the contract also covers options in charterers favour for additional six wells firm.

The Island Contender is well known to Lundin, as the vessel recently completed a long term contract with the oil company.

Island Offshore looks forward to build on the good working relationship with Lundin.

 

For more information, please contact:

Chartering Manager Hallgeir Linge Reitan

Mob.: 948 00 662/ hallgeir@islandoffshore.com

Q1-16 Financial Report for Island Offshore Shipholding LP

The first quarter 2016 Financial Report for Island Offshore Shipholding LP is now available.

For more information please contact:

Mr. Henning Sundet, Chief Financial Officer: hsundet@borgstein.no, +47 913 65 735

islandoffshore_q1_financialreport_2016.pdf

ISLAND OFFSHORE GROUP HAS SOLD M/V ISLAND PATRIOT

M/V Island Patriot sold
M/V Island Patriot sold

Island Offshore Group has sold M/V Island Patriot to an undisclosed buyer, and the delivery of the vessel takes place today.

The sale has been done on satisfactory terms to both parties, and Island Offshore Management AS will still operate the vessel.

The Island Patriot is an Offshore Service vessel delivered from Ulstein Yard in April 2005.

For further information, please contact:

Henning Sundet, CFO  Tel: +47 70 00 97 63

Island Constructor assisting Erin Energy back on track in Nigeria

Island Constructor successfully completed work in Nigeria
Island Constructor successfully completed work in Nigeria

Island Constructor has successfully completed work on the Oyo-8 well in Nigeria, and the oil company Erin Energy Corporation has resumed production from the well.

The vessel performed light well intervention service on the Oyo-8 well, to open the sub-surface controlled sub-surface safety valve (SCSSV), which failed to re-open following a planned production curtailment in the Oyo field. Erin Energy will now begin a ramp up of production from the well over the next few days to pre-shut in levels of approximately 7,000 barrels of oil per day.

The Oyo Field is located approximately 75 km (46 miles) from the Nigerian coast in water depths ranging from 200 to 500 meters.

The work was completed on time and within budget, and the Island Constructor is now on its way back to Norway.

 

Island Champion contract award
Island Champion has secured two year contract!
Island Champion has secured two year contract!

Island Offshore is pleased to confirm that we have secured a two year contract with ASCO Marine Limited at market terms.

The Island Champion will be trading out of Aberdeen, and the new contract will commence today, 20th of April 2016.

“We are very pleased to have secured this new contract despite the challenging market conditions we are facing, and we look forward to co-operate with ASCO Marine Limited in the years to come,” says Managing Director of Island Offshore Management AS, Håvard Ulstein.

The vessel has an impressive track record with about 3300 days without any lost time incidents (LTI’s) which by far exceeds the norm in the industry.

 

MOU Island Constructor awarded a contract by BP
MOU Island Constructor awarded a contract by BP
MOU Island Constructor awarded a contract by BP

Island Offshore is pleased to announce that the mobile offshore unit Island Constructor has been awarded a contract by BP Exploration Operating Company Limited for the provision of Light Well Intervention services on the UK continental shelf in July this year. Additional options might be exercised in August.

Island Offshore has secured contracts with A/S Norske Shell

Island Valiant and Island Constructor to work for A/S Norske Shell!
Island Valiant and Island Constructor to work for A/S Norske Shell!

The two vessels, Island Valiant and Island Constructor have secured work at the Draugen oilfield for A/S Norske Shell.

Island Valiant will start with IMR-work (Inspection, Maintenance and Repair) on three wells in April, preparing the wells for the work which Island Constructor will perform later this summer. The time frame for this task is about two weeks.

The Island Constructor is assigned three jobs with different duration, starting in the early summer with Light Well Intervention (LWI) and scale squeeze on two wells at Draugen. In August/September the vessel will return for two more jobs involving LWI and IMR work.

In total these contracts are worth about NOK 100 million to Island Offshore.

In addition to Island Constructor, Island Offshore’s other two LWI vessels The Island Wellserver and the Island Frontier, is now back in operation and started on their contracts for Statoil on the 1st of April. This contract secures Island Wellserver and Island Frontier 200 days each yearly until 2020.

“These contracts are very welcome after a challenging winter with our LWI vessels being laid up for the season. It is very gratifying to see our crews and our vessels mobilizing and returning back to work after the winter,” says Managing Director in Island Offshore, Håvard Ulstein.

 

 

 

Island Commander to work for Lundin Norway

Island Commander to work for Lundin Norway!
Island Commander to work for Lundin Norway!

The Island Commander will take over Island Dragon’s contract with Lundin Norway on the Edvard Grieg field. The vessel change was initiated by the oil company due to the need of larger deck capacity.

The original contract with Island Dragon had a time frame of minimum 900 days firm, and this will now be transferred to Island Commander.

Island Commander has accordingly been equipped with firefighting equipment and is now prepared for standby duty.

 

 

 

Island Dragon and Island Duchess to be laid up

Island Dragon and Island Duchess to be laid up
Island Dragon and Island Duchess to be laid up

Island Offshore has decided to lay up the platform supply vessels Island Dragon and Island Duchess with immediate effect.

The Island Dragon has been on contract with Lundin Norway since it was delivered in June 2014, and will now be replaced by Island Commander. The reason for making this change is a request made by the oil company, wanting a vessel with larger deck capacity. The Island Commander has now been prepared for Standby duty.

“The situation in the spot market is still fragile and we cannot justify letting Island Dragon operate in this market. This means that we will have to lay her up indefinitely. As Lundin is an important customer to us, we want to be flexible to adapt to their change of needs. It is an implicit strength to be able to meet their requests, says Managing Director of Island Offshore Management AS, Håvard Ulstein.

The Island Duchess has been in Las Palmas for some time, being available for jobs off the coast of Africa, but the low activity has made Island Offshore decide to stop offering Island Duchess and lay her up. The vessel is now in Ulsteinvik.

We have started discussions with employee representatives regarding work force reductions.

With this, Island Offshore has four PSVs in layup, as well as three LWI vessels and one ROV/construction vessel in winter layup. Two of the LWI vessels have started to mobilize for this year’s campaign for Statoil with start up 1 April.

 

 

 

Island Condor: The cleanest sea-going vessel to ever call on Rotterdam

The cleanest sea-going vessel to ever call on Rotterdam!
The cleanest sea-going vessel to ever call on Rotterdam!

According to the Environmental Ship Index, Island Condor is without a doubt the cleanest sea-going vessel to enter the port of Rotterdam this century. This is stated in a press release issued by the Port of Rotterdam.

The ESI is a certificate that has been issued to vessels, at the ship-owners request, by the World Port Climate Initiative since 1 January 2011. The index shows the vessels’ environmental performance in terms of air-polluting emissions (NOx and SOx) and CO2. Vessels that are awarded a high score on the Environmental Ship Index are eligible for a premium, to the amount of roughly 10% of their port tariffs charges. As of 1 January 2015, this discount is doubled if the vessels can also prove their NOx emissions are below a certain threshold. Last year the Port Authority of Rotterdam awarded close to EUR 2 million in premiums to vessels that score high on the Environmental Ship Index.

Island Condor is designed and built with the objective of minimizing the environmental footprint. The hull design UT 776 CD was first introduced in 2008; the same year as the World Port Climate Initiative was launched. She is built to DnV GL Clean Design notation which indicates reduced emission to air and reduced discharge to sea compared to minimum standard. SCR technology is used in order to reduce the specific emission of NOX with more than 90%. This SCR (Selective Catalytic Reduction) after-treatment of exhaust fumes converts nitrogen oxide (NOx) into nitrogen (N) and water.

“The crews on our vessels take pride in operating environmentally friendly. Since 2008 we have seen a reduction in CO2 emission of more than 30% as a direct result of fuel saving initiatives from crew members. Island Offshore, and Island Condor in particular, is honored to be appointed ‘most sustainable ship 2015’ and we take it as an acknowledgement of our continuous effort in reducing our environmental footprint,” says Managing Director in Island Offshore Management AS, Mr. Håvard Ulstein.

 

2015’s ESI Top 5 in Rotterdam

 

  1. Island Condor offshore vessel 94.9 (out of 100 ESI points)
  2. Skandi Iceman tugboat 91.4
  3. Tarnvag oil/product tanker 84.4
  4. Bit Oktania oil/product tanker 81.6
  5. Coral Energy LNG tanker 80.5

 

Environmental Ship Index

Ports and other maritime service providers around the world can use the index to reward ships and consequently encourage sustainable behaviour in the shipping sector. By now, over 45 ports and other maritime service providers award a bonus to ‘ESI ships’ with a specific minimum score on the index. These include the ports of Rotterdam, Antwerp, Los Angeles, New York, Sohar, Vancouver, Tokyo and just recently – Ulsan in South Korea.

The World Ports Climate Initiative is a collective of 55 key ports that work to reduce the emission of greenhouse gases, and specifically CO2. The partners do so under the aegis of the International Association of Ports and Harbors, the foremost interest group for sea ports worldwide.

 

For more information:

Tie Schellekens, j.schellekens@portofrotterdam.com, telefoon 06-5332334

Marianne Hovden, marianneh@islandoffshore.com, Tel. +47 70 40 00 60

4th Quarter Financial Report- Island Offshore SHipholding LP

The 4th Quarter Financial Report for Island Offshore Shipholding LP is now published.

 

For more information, please contact:

 

Mr. Henning Sundet, Chief Financial Officer: hsundet@borgstein.no, +47 913 65 735

islandoffshore_q4_financialreport_2015.pdf

AGREEMENT IN PRINCIPLE ON FINANCIAL RESTRUCTURING

Island Offshore Shipholding L.P. (the "Company") confirms that agreement in principle on the terms of a proposed restructuring has been reached with certain of its main lenders and an ad hoc group of bondholders in its NOK 700 million Senior Unsecured Callable Bond Issue 2013/2016 (ISIN NO 001 0673866).

If approved by all relevant stakeholders, the restructuring will include, inter alia,  extensions of certain of the Company's and its subsidiaries' financial indebtedness (including the bonds), contribution of new equity in the amount of NOK 100 million from the Company's shareholders, easement of financial covenants and certain amendments to the Company's newbuilding schedule.

The Company expects to publish the final details of the proposed restructuring before the end of February 2016. Completion of the restructuring remains subject to final agreements with the relevant creditors, approval by the bondholders' meeting in the bond issue and execution of final documentation, and no assurance can be given that the contemplated refinancing will actually be completed.

 

Investor Relations Contact:

Mr. Henning Sundet, Chief Financial Officer: hsundet@borgstein.no, +47 913 65 735

 

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