Norwegian rig interests in drilling contractor and floating production player PetroPod intend to raise $45 million dollars in equity by year’s end, as the Larson Oil & Gas dominated company negotiates with suppliers and a Jurong Shipyard to build another jack-up rig.

But PetroPod management is already having to “implement tighter cashflow” and is negotiating a rescheduling of installment payments with the shipyard and major suppliers for its rig-building program. A new rig could cost a minimum $250 million.

The company used the occasion of replacing a $20 million net loss of a year ago with a new $3 million net profit to say it was selling two Aframax tankers which were earmarked for conversion to floating production storage and offloading vessels.

“The credit crunch has put all industry players in a difficult financial situation,” a statement said, before addding, “The Company foresees that several announced field developments by small, independent oil companies will be put on hold due to the financial turmoil and drop in oil prices.”

The tighter market for FPSOs — traditionally the favourite develoment option of the independent oil companies — suggests “The FPSO market will continue to be difficult” and mergers are in store.

“PetroProd is in discussion with several companies for such a consolidation process,” a statement from the Board admitted.

Meanwhile, company results are seen improving with the approaching delivery of an FPSO and its MSC/Gusto CJ70 jack-up rig. A second, identical rig is hoped for by mid 2011.

The Company is expected to improve results after taking delivery of its newbuild FPSO and CJ70 jack-up drill rig. The company hopes drilling contractors in the North Sea will collaborate on the operation of its new rigs.

ws@scandoil.com

Tags: PetroPod