GC Rieber, Rasmussen Agree to Form Shearwater Marine Seismic Joint Venture

Updated 4 years 11 months ago

Shearwater will have 4 seismic vessels: the Polar Empress, Polar Duke, Polar Duchess, and Polar Marquis. GC Rieber and Rasmussen will own the 50-50 JV and inject USD 60 million in equity cash. Shearwater will receive technical support and crewing from GC Rieber. Shearwater's organization is being established based on former Dolphin Geophysical staff as well as new hires.

Terms have been renegotiated with the lending banks for the four vessels. The new terms include a 75% reduction in installments compared to the original repayment profile until June 2019 and an extension of the term of the loans until year end 2022. Shearwater has also agreed on the main terms to purchase the seismic equipment (including streamers) and the operative entity, Dolphin Geophysical UK Ltd., which includes the processing business from the former lending banks of Dolphin Geophysical ASA. The agreement between GC Rieber Shipping and Rasmussen is conditional upon final loan documentation with the lending banks in line with agreed term sheets, as well as entering into final sales and purchase agreements for the seismic equipment. Closing of the transaction is expected to be in place during fourth quarter of 2016. Carnegie has been financial advisor to GC Rieber Shipping and Shearwater.

"Over a period of time, we have examined opportunities to establish a new geophysical company, based on the four high-end vessels we currently own. In Rasmussengruppen, we have found a partner who shares our view of the opportunities offered by the geophysical market at present, and, equally important, who shares our vision to build and develop Shearwater into a leading player in the industry", said Irene Basili, CEO of GC Rieber Shipping.

"Shearwater is set up from the start with a modern and cost-efficient fleet, an experienced organization, and a solid financial platform. Supported by GC Rieber's extensive industry experience, we believe Shearwater will have a unique position in the market that can also consider further strategic opportunities", commented Dag Rasmussen.

"Together with Rasmussengruppen, we are excited about the establishment of Shearwater which we believe is uniquely rigged to take advantage of the opportunities which we see in this space going forward.  This is will be the first step on an exciting journey for our motivated employees, as well as for us as owners", said Basili.