The world's biggest seismic survey vessel owner, Shearwater GeoServices, has expanded again in a $127.5m move to take over the former fleet of bankrupt rival Polarcus.

The Norwegian company is adding six ships to its fleet of 21, as well as spending another $50m on streamers and related seismic equipment.

In March, Norwegian shipowner and investor Tom Steckmest emerged as chairman of the companies in control of the former Polarcus ships, which are between 88 loa and 92 loa and built between 2009 and 2012.

The move took place a week after Norway's DNB Bank and export credit agency Giek repossessed the vessels.

Polarcus announced in January that the lenders had stopped extending covenant waivers, triggering a mortgage default.

New ownership revealed

Shearwater said the vessels' owner, Tiger Moth, is affiliated to investment company Woodstreet, which was founded by UK investor Nigel Hill's Clearwater and Steckmest's Viken to own, control and operate a fleet of oceangoing vessels.

The transactions are being financed through a new vessel loan facility provided by DNB and Giek of $107.5m, and an $85m convertible loan from Shearwater shareholder Rasmussengruppen.

Shearwater will have $15m of the convertible loan available for general corporate purposes.

It was not clear in March whether Steckmest was acquiring the vessels for himself or warehousing them for banks pending a sale, but it is now clear the second scenario was the case.

Some observers speculated the bank moves implied an end user was waiting before the lenders decided to swoop.

Life of fleet extended

"These investments allow us to significantly extend the commercial life of our fleet and streamer pool and to accelerate our fleet-renewal programme to meet regulatory and public expectations facing our industry," Shearwater chief executive Irene Waage Basili said.

"By extending the runway of our asset base and maintaining our scale, we are proactively strengthening Shearwater’s position to invest in new technologies and the growing seabed market."

The transaction puts the company in a dominant position in the sector, having seen Polarcus fall by the wayside, and another rival, PGS, having just completed a financial restructuring.

Landmark deal

Shearwater is also backed by GC Rieber Shipping and giant US contractor Schlumberger, from which it acquired WesternGeco and its 12 vessels in 2018 in a landmark $600m deal.

Last year, Shearwater clinched a $437m refinancing after big expansion in recent years.

In January 2020, the shipowner completed its acquisition of CGG's seismic vessel fleet.

The only debt not refinanced was the liabilities assumed as part of the CGG deal.