Songa Offshore is looking to raise US$150 million in cash to help it deliver the fourth and final Cat D new build rig, the Songa Enabler.
The firm has been building the rigs for client Statoil. But, lower than expected utilization rates on the first two delivered units, the Songa Equinox (pictured) and Songa Endurance, which suffered BOP-related issues, as well as delayed deliveries and its cash holding requirements for the recently delivered Songa Encourage and still in-build Songa Enabler, has meant it needs extra cash.
In a further blow, due to the delivery delays on the Songa Equinox and Songa Endurance, Statoil has exercised an entitlement to shorten its contract duration on those rigs, relative to the delivery delay, i.e. by 347 days on the Songa Equinox and 184 days on the Songa Endurance.
The two rigs are due to start their drilling contracts in April 2016 and August 2016, respectively, each about four months after pre-agreed delivery windows.
The contract backlog for the four Cat D rigs now stands at some 30.5 rig years, or $5.1 billion, as of 29 February 2016, excluding options.
Songa says it intends to raise up to US$125 by issuing a bond, as well as a share offering to raise another $25 million.
The Songa Equinox and Songa Endurance, both operated with an earnings efficiency of 98% for the last three weeks.
Songa Encourage is expected to arrive in Bergen 15 March 2016 and start drilling operations in April 2016.
The delivery of Songa Enabler is expected to take place end of March and the rig is scheduled to start drilling operations in August 2016.
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