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

Flowers bloom at Soldotna City Hall on Wednesday, June 24, 2021, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Soldotna OKs bumps to city water, sewer rates

The changes are effective July 1

Triumvirate Theatre President Joe Rizzo testifies before the Kenai Planning & Zoning Commission on Wednesday, Jan. 25, 2023, in Kenai, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Kenai OKs permit for new Triumvirate playhouse

The playhouse design describes a $4.7 million facility that is two stories with an audience capacity of 150 people

Kenai City Council member Alex Douthit testifies in support of legislation allowing chickens on some city lots during a meeting of the Kenai Planning & Zoning Commission on Wednesday, Jan. 25, 2023, in Kenai, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Kenai planning group gives conditional thumbs-up to chicken ordinance

The legislation would allow Kenai residents to keep up to 12 chicken hens on certain lots

Emergency personnel respond to a fire on R/V Qualifier, in the Northern Enterprises Boatyard on Kachemak Drive, Jan. 19, 2023, in Homer, Alaska. (Photos by Nika Wolfe)
Research vessel catches fire in Homer boatyard

The cause of the fire and extent of the damage is not yet known

Alaska Vocational Technical Center Executive Director Cathy LeCompte presents during a Soldotna Chamber of Commerce luncheon at the Soldotna Regional Sports Complex on Wednesday, Jan. 25, 2023, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
AVTEC director plugs programming at chamber luncheon

AVTEC is about more, LeCompte said, than just checking off classes to gain certification

From left, Dave Carey, Linda Farnsworth-Hutchings, Zach Hamilton and Peter Micciche participate in a Kenai Peninsula Borough mayor candidate forum on Tuesday, Jan. 24, 2023 in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Borough mayoral candidates participate in Tuesday forum

The forum was hosted by the Peninsula Clarion and KDLL 91.9 FM in partnership with the Central Peninsula League of Women Voters

A volunteer ladles Hungarian mushroom soup donated by Odie’s at Kenai United Methodist Food Pantry in Kenai, Alaska, on Monday, Jan. 23, 2022. (Jake Dye/Peninsula Clarion)
Church food pantry marks 20 years of service

The Food Pantry at Kenai United Methodist Church opened Jan. 26, 2003

Library Director Dave Berry and Advisory Board Chair Kate Finn participate in Library Advisory Board meeting on Tuesday Jan. 17, 2023, at Homer City Hall, in Homer, Alaska. (Photo by Emilie Springer/Homer News)
Homer Library Advisory Board upholds decision to retain LGBTQ+ books

A citizen’s group last year submitted a petition asking that the books be removed from the children’s section

Most Read