COSL to Raise $897m for Fleet Expansion

13 May 2010 (Last Updated May 13th, 2010 18:30)

China Oilfield Services is planning to raise CNY7bn ($897m) by issuing up to 500 million shares to help finance the expansion of its offshore fleet. The company said it will invest CNY2.6bn ($380m) for an oilfield service vessel, CNY1.9bn ($278m) for a jack-up rig and CNY1bn ($146.4m) f

China Oilfield Services is planning to raise CNY7bn ($897m) by issuing up to 500 million shares to help finance the expansion of its offshore fleet.

The company said it will invest CNY2.6bn ($380m) for an oilfield service vessel, CNY1.9bn ($278m) for a jack-up rig and CNY1bn ($146.4m) for deepwater anchor handling and tug supply vessels.

The firm also aims to spend a further CNY 960m ($140.5m) to acquire a 12-streamer seismic ship and CNY 520m ($76m) on deep-water survey vessels.

The company has given no details about whether the vessels would be newbuilds or secondhand tonnage, according to lloydslist.com.

It expects the shares to be issued within six months of being approved by Chinese regulators.