Seismic survey company SeaBird Exploration has reached an agreement for sale and decommissioning of the seismic vessel Hawk Explorer.
SeaBird said on Monday that the decommissioning of the vessel was a part of the company’s efforts to reduce cost and adjust fleet capacity to better reflect current market demand.
However, the company will retain the seismic equipment of the vessel after decommissioning.
The company entered into an agreement to purchase the Hawk Explorer and related equipment back in September 2016.
Under the purchase agreement, SeaBird paid $1.1 million for the vessel and its seismic equipment. Also, SeaBird covered all expenses relating to the cancellation of all future lease payments and additional obligations as required under the charter agreement.
M/V Hawk Explorer joined SeaBird in 2006 after being converted to a 2D-Source vessel in Gdynia Poland. It is a 66 meters long 2D vessel built in 1984 which can accommodate 44 crew members.
The purchase, the cancellation of the lease agreement, and the subsequent sale of the vessel, is estimated to result in a pre-tax net loss of approximately $8.9 million in 3Q 2016.