Scandoil.com

Floating producers up 40%, 60%


Published Jan 5, 2009
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Fred. Olsen wins contract award for FPSO Knock Taggart in Gabon

Fortunes in floating production storage and offloading vessels, or FPSOs, were up Monday, as stock in Norway-based Nexus Floating Production and Fred Olsen Production shot up 40 percent and 58 percent no more than 2,500 shares trading hands.

“We have no comment,” Nexus chief financial officer told Scandoil.com.

“Someone wanted the (500 shares) and then that was the buying price,” he said, adding they were keeping an eye on the price.

Nexus recently got its builder Samsung Heavy Industries to agree to put off the building of a No. 2 FPSO due to wobbly financing. The deal gave Nexus the right to cut its losses, pick up again if desirable and forgo having to look for more money in the short-term.

Fred Olsen chief exec Morten Lunde told Scandoil he was in meetings all morning and hadn’t seen the 40 percent share-price leap. By lunchtime, the company share had settled back to 22 percent gains on the day.

The company was understood to have been awaiting a contract confirmation for an FPSO in Gabon expected to earn some $25 million over four or five years.




   

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