Solstad Offshore makes 50 jobs redundant due to weak offshore market

Solstad Offshore (SOFF), a Norwegian offshore service and shipping company, will make 50 offshore workers redundant due to sales and lay-ups of their vessels. 

The company has sold and delivered the AHTS Normand Jarl, built in 1985.

In addition, a Memorandum of Agreement (MOA) has been signed for sale of the AHTS Normand Skarven, built in 1986, with expected delivery during June.

SOFF owns 72, 5% of Normand Skarven whilst Normand Jarl is 100% owned.

There will be a minor booked gain on the sales, but a positive cash effect of approx. NOK 45 million ($5.9 million).

Lay-ups and redundancies

According to the press release, due to a continued weak offshore market, particularly for the PSV segment, SOFF has decided to put the PSVs Normand Skipper and Normand Vester into lay-up. Normand Skipper is currently trading the North Sea spot market while Normand Vester is due to end a long-term contract in Brazil during June and will go into lay-up thereafter.

As a consequence of the two sales and lay-ups, about 50 offshore employees will be made redundant.

“The redundancies are very regrettable, and SOFF aims to carry out the process in an orderly manner and in close co-operations with the employee representatives,” says Lars Peder Solstad, CEO of Solstad Offshore.