Eni cancels vessel deal with Viking Supply Ships

Viking Supply Ships (VSS) has received an early termination notice of the contract for the Ice-class 1A AHTS Njord Viking from Eni Norge in the Barents Sea. 

Besides working for Eni Norge, the 2011-built vessel has also been part of the extended towing -preparedness in the area on behalf of the Norwegian Coastal Administration, VSS said on Monday.

The vessel was according to the contract with Eni Norge firm until the end of 2016, with optional periods of 2 x 6 months thereafter.

To remind, Eni Norge extended the deal for the Njord Viking in July 2015 but with a reduced dayrate. The initial firm period lasted until July 29, 2015.

According to the contract, VSS will be entitled to a termination fee of approximately $13.300/day for the remainder of the firm period. The termination represents a loss of income during the remaining firm period of the contract of $3.3 million in 2016.

VSS said the company will further off-set this loss by marketing the vessel in the North Sea spot market, while also searching for alternative contracts for the vessel.

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