EMGS Extends Charter for EM Leader

Electromagnetic Geoservices ASA (EMGS) has signed an extended charter agreement for the vessel EM Leader with Seatrans at new and improved commercial terms. The previous agreement was up for renewal.

EMGS said it will charter the vessel for 2 years and has 2 x 1 year options for extension. The agreement includes different rates for when the vessel is in operation, idle or laid up. The company also stated that the new operational rate represent a significant saving compared to the previous.

“We are very pleased with this new agreement. It maintains our flexibility to reduce our vessel costs by approximately 25% if needed, and at the same time, it secures our revenue capacity for four vessels. This is in line with our strategy to retain a flexible business model,” says Roar Bekker, CEO of EMGS.

According to the company, the agreement provides EMGS with increased operational flexibility and improved commercial terms, which already will benefit the company when the vessel begins the newly announced contract in Uruguay on 15 December 2014.