Songa Offshore SE Announce Reduced liabilities in relation to Songa Venus bareboat charter agreement

Songa Offshore SE Announce Reduced liabilities in relation to Songa Venus bareboat charter agreement

Reference is made to the announcements made by Songa Offshore SE (“Songa Offshore” or the “Company”) on 25 April 2014 and 23 July 2014 regarding the sale of Songa Mercur and Songa Venus. Following negotiations between the Company and the buyer certain amendments have been made to the transaction whereas the Company`s liabilities in relation to the Songa Venus bareboat have been reduced.
The following changes have been made to the previously announced transaction;
• The bareboat charter for Songa Venus between the buyer and Songa Offshore will end 15 February 2015. Reduced from 31 March 2015
• USD 3 million is payable in June 2015 from the buyer to Songa Offshore as a contribution to the amendments of the transaction
• The operating expenses for Songa Venus will be for the account of the buyer from 1 November 2014. Songa Offshore will however pay a fixed daily rate of USD 35,000 as a contribution for operating expenses from 1 November 2014 until 15 February 2015
• Songa Offshore will not engage in new employment for Songa Venus during the term of the bareboat charter. Songa Offshore will consequently discontinue to report operating and earnings efficiency for Songa Venus
• USD 1 million is payable from Songa Offshore to the buyer as a contribution for maintenance capital expenditures
Source: songa
Oil and Gas Press

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