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Fossil Energy

about 10 years ago

Farstad sells Far Fosna AHTS

Norwegian offshore shipowner Farstad Shipping has sold a 1993-built anchor handling tug and supply vessel to an undisclosed client. The company, which last week received the restructuring support from Siem Industries, said the vessel Far Fosna was delivered to the new owner on Tuesday. Farstad did n

1 minutes read

Norwegian offshore shipowner Farstad Shipping has sold a 1993-built anchor handling tug and supply vessel to an undisclosed client.

The company, which last week received the restructuring support from Siem Industries, said the vessel Far Fosna was delivered to the new owner on Tuesday.

Farstad did not reveal the financial details of the transaction, saying the sale of the vessel will result in an immaterial accounting effect for the fourth quarter of 2016.

According to data from VesselsValue, a website providing vessel valuations, Far Fosna’s market value on November 8 was $1.68 million. Scrap value was $790.000. The vessel’s latest AIS data showed its last destination was Vung Tau, Vietnam.

Hundreds of offshore support vessels have been laid up since the oil prices started to fall down in mid-2014, reducing offshore activity and impacting shipowners strained by financial covenants.

Farstad, the owner of more than fifty offshore vessels has been working on various options to enhance its financial position in order to enable long-term operations for the company.

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In a statement on Friday, the company said it entered into a non-binding letter of intent with Siem Industries for the financial restructuring, with Siem or a fund managed by Siem as a key equity investor.

Offshore Energy Today Staff

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