Norway: Farstad Enters Charter Deals Worth USD 233 Million

Norway’s Farstad Shipping ASA, a major international supplier of large, modern offshore support vessels, has been awarded multiple charter contracts by three oil and gas majors: Statoil, Santos and Shell.

Statoil has awarded Farstad Shipping ASA a long-term charter contract for two platform supply vessels, each for a firm period of 6 years and 3 x 1 year options. The contracts will be served by two new builds. Shipbuilding contracts for these will be signed in the near future. Commencement of the Charter Contracts is after delivery from the yard, which is expected to be3rd and 4th quarter 2014 respectively.

Farstad commented in a press release: “Statoil is a major and important customer for Farstad Shipping. These contracts further strengthen the company’s position as a long-term supplier for Statoil.”

In Australia Santos Australia Ltd. has awarded PSV Lady Grete (2002, UT 755L, 3,271 DWT) and AHTS Far Saltire (2002, UT 728L, 16,320 BHP) a contract in support of their Nan Hai VI drilling operations on their Fletcher Finucane campaign. Approx. duration of the contract is 235 days with commencement in June.

Shell Australia has awarded their Palta exploration support to AHTS Far Stream (2006, UT 712L, 14,688 BHP) and AHTS Far Scimitar (2008, UT 712L, 14,688 BHP). Duration for this campaign is approx. 3 months commencing in August. In addition Shell Australia has awarded their long term Prelude drilling support contracts to PSV Far Spirit (2007, VS 470 Mk II, 3,624 DWT), PSV TBN Far Skimmer (2012, STX PSV08 CD, 4,000 DWT) and PSV TBN Far Sitella (2013, STX PSV08 CD, 4,000 DWT). Durations for each vessel vary between approx 1.5 to 2.5 years with potential options to extend each by a further 200/300 days. Contract commencement for the two newbuilds will be immediately after delivery from the yard in Vietnam. Start up for PSV Far Spirit will be in the middle of August.

“The contracts in Australia are important for Farstad Shipping’s long-term campaign in this region, and further strengthen our long cooperation with Shell as a major, international oil company,” said Farstad in a statement.

Total value of the contracts, excluding options, is approximately NOK 1,4 billion (USD 233 million.)

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Offshore Energy Today Staff, June 14, 2012; Image: Farstad