Private equity stakeholders of FPSO operator Rubicon Offshore International have tasked brokers with finding buyers for the company or the two floating production, storage and offloading vessels in its fleet.
TradeWinds is told that Braemar ACM Shipbroking and L&R Midland have been given joint exclusive rights to undertake an expression of interest exercise on behalf of the owners.
Headquartered in Singapore, Rubicon’s primary assets are the 71,900-dwt FPSO Rubicon Vantage (built 1987) and the 65,300-dwt FPSO Rubicon Intrepid (built 1981).
The Rubicon Vantage was converted from a shuttle tanker into an FPSO at ST Marine in Singapore during 2008. It was put through a life-extension refit in 2015, and is stationed at the Wassana oilfield off Thailand. It is due to complete its charter there in August this year.
The Rubicon Intrepid was also converted from a shuttle tanker into an FPSO at ST Marine during 2008. It underwent further upgrading in 2012 that included the addition of an external turret mooring system for station keeping. Currently stationed in the Galoc oilfield off the Philippines, the vessel is due to complete its work there in September.
The FPSOs will be sold on an as-is, where-is basis.
Suitable for storage roles
Putting a market value on an FPSO is difficult as comparable sales transactions are few and far between. The conversion date, along with the equipment and modules found on board individual FPSOs also vary considerably, which would impact their estimated worth.
FPSOs are rare sales candidates and, being niche-market assets, have a limited spectrum of potential FPSO operators as buyers.
The effect of the oil price collapse on the offshore oil sector is likely to make them even harder to sell.
However, brokers said the pool of prospective buyers is not restricted to other FPSO operators, as the ships can still be used in the offshore sector as floating storage and offloading (FSO) vessels, or just as floating storage units.
Rubicon has owned and operated four FPSOs and has undertaken a number of conversions and upgrades since it was set up in 2005.
Between 2008 and 2011, the company also owned and operated an offshore installation and construction vessel, the Rubicon Maverick (built 2001). It was then sold to SB Submarine Systems.
Sources within Singapore’s offshore sector said that Rubicon’s private equity-backed shareholders are not exiting the offshore sector due to concerns over its future prospects.
They suggested there has always been a five-year time horizon for the investment in the company, which is now coming to its conclusion.
