Boa Offshore turns to defense sector amid instability in AHTS North Sea spot market
- Business & Finance
Norwegian offshore supply vessel owner Boa Offshore has turned its attention to the defense sector amid instability and challenges in the North Sea spot market.
Boa said on Monday that it had won contracts from the Norwegian Defense Logistic Organization (FLO) to charter two AHTS vessels for the country’s emergency response preparedness.
For the contract duration, the BOA Group offered its Boa Bison and Boa Jarl anchor handling tug supply vessels (AHTS).
The Norwegian Navy will assume responsibility oceangoing tug emergency response preparedness from the Ministry of Transport, with two hired and four own vessels from January 1, 2020.
The two hired vessels will be included in the Armed Forces structure and the Coast Guard’s operation and maintenance routines.
The contracts were signed on October 3 and will have a duration of five years with the option to extend the agreement for another five years.
Boa CEO, Helge Kvalvik, said: “BOA is very pleased to win this contract which utilizes high-standard offshore tonnage for an important purpose strengthening the national emergency response. It is our privilege to do business with the Norwegian Defense Logistic Organization, and we appreciate the trust and confidence placed in us.”
Earlier this year, Boa expressed its concerns about the North Sea AHTS spot market and claimed that the short-term picture in the offshore sector was challenging as demand was recovering from a very low level.
The company also claimed that there was a significant overcapacity of vessels in many offshore segments.
The offshore vessel provider went on to state that, despite higher activity in the North Sea in general, the outlook remained uncertain due to the vast overhang of idle/laid-up AHTS vessels and uncertainty regarding the timing of recovery in other regions.
It is worth noting that the two vessels chosen for the Norwegian Defense Logistic Organization contract are currently in lay-up.
Offshore Energy Today Staff
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