Bermudian-based Cool Company Ltd, the liquefied natural gas shipping company, has exercised its option to acquire two newbuild, two-stroke LNG carriers from affiliates of EPS Ventures Ltd.

The company said the state-of-the-art Mega LNG carriers are scheduled to be delivered by Hyundai Samho Heavy Industries in South Korea in September and December of 2024.

Each is being acquired under the pre-existing purchase option price of approximately $234 million, a discount of approximately 10 per cent to current quoted market value for comparable newbuild vessels.

The initial exercise price is approximately $57 million per vessel, while approximately $134 million of the remaining $177 million is due upon delivery of each of the vessels.

The new builds, to be named Kool Tiger and Kool Panther, are expected to be funded with a combination of cash on hand, including cash that was recently released from the sale of the Golar Seal, and debt financing for which CoolCo has received a commitment letter from a financing institution.

This debt financing, which is subject to customary approvals, is on a fixed rate per day basis for 10 years with a minimum loan-to-value of 80 per cent and an implied interest rate of around six per cent.

The company said it does not anticipate needing to raise additional equity to finance the two newbuilds.

Richard Tyrrell, CEO, said: “We look forward to welcoming these state-of-the-art vessels into the CoolCo fleet at a material discount to their current market value.

“Their 2024 delivery date makes the vessels especially attractive, with comparable vessels ordered today only being delivered in the 2027/28 time frame.

“The vessels’ best-in-class design and boil-off rate make them highly attractive to charterers who benefit from the ability to operate efficiently at a range of speeds with reduced emissions.

“With the vast majority of the global LNG carrier order book already committed to liquefaction projects coming online in the years ahead, few, if any, modern LNG carriers are expected to be available for time charter employment during the late 2024 window when the vessels deliver.

“We are currently in discussions to forward fix the vessels on long-term time charters and expect to do so well in advance of delivery at levels that reflect current market strength.”

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Valaris Limited, the Bermudian-based offshore drilling services company, has announced new contracts and contract extensions, with associated contract backlog of approximately $150 million.

Contract backlog excludes lump sum payments such as mobilisation fees and capital reimbursements.

The deals include:

•Two-well contract with Anadarko Petroleum Corporation in the US Gulf of Mexico for semi-submersible Valaris DPS-5. The contract is expected to commence in July and has a minimum duration of 60 days. The total contract value is approximately $22 million.

•Nine-well contract for a plug and abandonment campaign with Apache in the US Gulf of Mexico for Valaris DPS-5. The contract is expected to commence in September and has a minimum duration of 110 days.

•180-day (minimum duration) contract with an undisclosed operator offshore Australia for heavy duty modern jack-up Valaris 107. The contract is expected to commence in first quarter 2024. The operating day rate is $150,000.

•One-year contract with an undisclosed operator offshore Australia for Valaris 107. The contract is expected to commence in October 2024.

•Two-well contract with a major Australian operator for Valaris 247. The contract is expected to commence in early to mid-2024 and has an estimated duration of 100 days. The operating day rate is $180,000 and Valaris will receive a mobilisation and demobilisation fee that covers operating costs while the rig is in transit.

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Avance Gas Holding Limited, the Bermudian-based company engaged in the transportation of liquefied petroleum gas, has agreed the $60 million sale of the 2008 built, very large gas carrier, Iris Glory.

The company said the vessel is currently employed on a two-year time charter party and under the agreement she will be delivered to the new owner following its completion.

The delivery to new owners is expected to take place between September this year and January 2024.

The sale price is less, ordinary broker commission of one per cent.

The company expects to record a book gain of approximately $22 million once the transaction is carried out. The net cash proceeds after repayment of the lease financing is expected to be approximately $25 million.

Øystein Kalleklev, CEO of Avance Gas, said: “We are pleased to continue our fleet renewal programme with the agreement to sell Iris Glory once she comes off charter.

“Last year we sold three 2008/9 built VLGCs and today we are selling the fourth ship of this vintage. This means we only have one VLGC of this vintage left, Venus Glory, which is on time charter until end of 2023.”

He added: “The sale of Iris Glory enables us to free up liquidity to continue to pursue fleet renewal and expansion to further improve our carbon footprint and diversify the cargoes which our ships can carry so that we are prepared to meet the stricter decarbonisation rules in the near future.”