AIDEA sells interest in jack-up rig for $25.6 million

  • By ELWOOD BREHMER
  • Friday, November 14, 2014 4:35pm
  • News

The Alaska Industrial Development and Export Authority sold its stake in Kenai Offshore Ventures for $25.6 million and the Endeavour jack-up rig is on its way out of Cook Inlet, the authority announced Nov. 14.

Ezion Holdings Ltd. and its subsidiary Teras Investments approached AIDEA to purchase its share of Kenai Offshore Ventures after the joint-venture company was unable to secure long-term work for the Endeavour in the Inlet.

“The Endeavour helped spur a renaissance of exploration in Cook Inlet, and was key in the discovery of a major oil and gas find in the Cosmopolitan unit. The rig’s presence in Alaska promoted significant job creation and economic activity in Cook Inlet,” AIDEA Executive Director Ted Leonard said in a release.

The sale price includes the original investment and a remaining dividend due to the authority, according to spokesman Karsten Rodvik.

With just more than $4 million of dividends in 2013 and 2014, AIDEA will clear about $5 million when the sale closes on Jan. 31, 2015, Rodvik wrote in an email.

AIDEA bought into Kenai Offshore Ventures as a preferred investor for $23.6 million in 2011.

The state development authority is a self-supporting enterprise that pays an annual dividend to the State of Alaska.

The Endeavour will head to South Africa on a heavy lift vessel pending final AIDEA approval, the release states.

AIDEA Director of Asset Management Jim Hemsath said the partnership in the Endeavour helped spur another joint financing of a North Slope oil and gas processing facility at the developing Mustang Field, along with being a part of the recent Cook Inlet rejuvenation.

He also noted that AIDEA is in discussions about the potential of new oil and gas facilities and bringing a new drill rig to the Inlet.

“We remain bullish on Cook Inlet,” Hemsath said.

Originally, now-bankrupt Buccaneer Energy Ltd. partnered with AIDEA and Ezion to bring the jack-up rig to Alaska. Buccaneer sold its 50 percent share in Kenai Offshore Ventures to Ezion for $23.9 million in January. At the time Buccaneer said the proceeds form the sale would be used to finance capital expenses and repay debt.

More in News

Duane Bannock speaks to the Kenai Peninsula Borough Assembly in Soldotna, Alaska, on Tuesday, June 18, 2024. (Jake Dye/Peninsula Clarion)
Borough’s tourism industry working group takes shape

The group will explore the effects of a potential bed tax

Assembly Member Peter Ribbens speaks during a meeting of the Kenai Peninsula Borough Assembly in Soldotna, Alaska, on Tuesday, June 18, 2024. (Jake Dye/Peninsula Clarion)
Ribbens, Cooper named new heads of borough assembly

The Kenai Peninsula Borough Assembly reorganized during their Oct. 22 meeting

A special weather statement for the western Kenai Peninsula was issued Monday by the National Weather Service. The area will see strong gusty winds and rain late tonight and through Tuesday morning. A winter storm warning remains in effect from 3 a.m. to 4 p.m. Tuesday for areas of the eastern peninsula. (Image via weather.gov)
Windy weather heads for western Kenai Peninsula

The western Kenai Peninsula will experience some windy and wet conditions Tuesday and Wednesday.

Lisa Gabriel, left, watches as beach seine nets are pulled from the waters of Cook Inlet at a test site for the gear near Kenai, Alaska, on Tuesday, July 30, 2024. (Jake Dye/Peninsula Clarion)
Board of Fish to consider set beach seines for east side setnet fishery

Seines were tested on local beaches this summer in effort helmed by Lisa and Brian Gabriel

Sockeye salmon are gathered together at a test site for selective harvest setnet gear in Kenai, Alaska, on Tuesday, July 25, 2023. (Jake Dye/Peninsula Clarion)
Board of Fish to consider expansion of commercial dipnetting fishery

Discussion of expanded time, days and season of commercial dipnet fishery scheduled for March

The Alaska Board of Fisheries hears public testimony at the Soldotna Regional Sports Complex in Soldotna, Alaska, on Feb. 18, 1999. (M. Scott Moon/Peninsula Clarion file)
Board of Fisheries again declines to hold Upper Cook Inlet meeting on Kenai Peninsula

The State Board of Fisheries this week rejected calls from the Kenai… Continue reading

U.S. Senator Lisa Murkowski takes a selfie with Rose Burke at the Kenai Municipal Airport in Kenai, Alaska, on Friday, Nov. 1, 2024. Burke won the 2024 U.S. Capitol Christmas Tree essay contest and will travel to Washington, D.C., in December to light the tree. (Jake Dye/Peninsula Clarion)
Connections student to light U.S. Capitol Christmas Tree

Rose Burke, 9, won the U.S. Capitol Christmas Tree essay contest and will travel to Washington D.C.

Alaska State Troopers logo.
Soldotna man arrested for possession of child sex abuse material

He was taken to Wildwood Pretrial Facility

Most Read