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Business Model

The current management has started to explore additional strategic initiatives to expand the current activity of the new company, seeking:

  • A business that is “management-light”
  • Activities that are related to current business by sector or by risk profile
  • A business that provides a unique investment exposure not currently available to the Norwegian investment community
  • A clear niche with identifiable growth opportunities

Hermana is posed to continue the current legacy assets by being a manager of royalty revenue streams within offshore or new ventures. A royalty stream is a way to synthetically achieve a higher tier in the capital structure compared to debt and equity, as these cash flows often are preferential in the event of liquidation.

Investments

As part of the divestment agreement with Sembcorp, Sevan Marine AS retained the right to use the technology under certain existing agreements. Hermana Holding receives payments for licensing out the technology rights to Dana Petroleum (to be transferred to NEO Energy). The agreement covers the use of the Western Isles FPSO. Hermana is entitled to USD 0.5 per barrel over the asset’s life. The FPSO is expected to be redeployed at the Buchan redevelopment project.