Gulf Navigation to acquire majority stake in Atlantic

29/01/2018 06:00 AST

Gulf Navigation Holding (GulfNav) has announced that it is in discussion to acquire a majority stake in Atlantic Navigation Holdings (Singapore) Limited ("Atlantic").

Atlantic is an integrated offshore supply operation engaged in the provisioning of marine logistic services, ship repair, fabrication and other marine services. We operate out of the UAE serving primarily customers in the Middle East and India. Atlantic is an offshore marine logistic services group listed on the Singapore Stock with total assets of $177m.

Gulf Navigation is in discussion with major oil companies in the Gulf Region to provide key project solution and offshore services. This potential acquisition will propel the business forward and create added opportunities that both companies can deliver.

Furthermore, Atlantic currently operates a fleet of 25 vessels which comprises a variety of AHT, AHTS, jack-up accommodation barges, offshore cargo barges, towing tugs, offshore supply vessels and Lift boats. In addition, manages a fleet of assorted vessels. Out of this fleet, 17 are wholly owned by the Atlantic Group, 2 are jointly owned and 6 are cross chartered or managed by the Group.

In addition, Atlantic has on order 7 new OSVs which are built to fulfill part of contracts awarded by a Middle East National Oil Company (NOC) for charter for a total of 10 OSVs comprising of AHTSs and Utility Vessels. The duration of charter is 5 years plus 2 years option with a potential contract value of $236 million.

Atlantic also owns a 50% share in a Consortium to undertake a $45 m deconstruction project with a Middle Eastern NOC. The project is the first of its kind and entails demolition and removal of offshore and onshore structures in an abandoned oilfield in Abu Dhabi. Under the terms of the Consortium Agreement, Atlantic has the first right of refusal in providing the entire marine spread required for the project. Through this investment in Atlantic, GulfNav will have an interest in 32 vessels including 7 newly built.

We will be able to have integrated capabilities across the entire services supply chain associated with oil and gas, from providing integrated support services to offshore oil installations and the ability to manage, ship and deliver petrochemical derivatives to international markets. Completion of the transaction is subject to satisfactory completion of due diligence, Boards and Authorities approvals.

Khamis Juma Buamim, MD, Group CEO of Gulf Navigation Holdings commented: "This investment marks a major milestone in Gulf Navigations strategy to grow our offering to our customers in the regional offshore oil and gas sector. At the same time it gives Gulf Navigation a significant position in the GCC regional OSV O&G market. During the discussions our two companies have got to know one another well and our teams enjoy working together, essential keys to success."

The Gulf Today