Solstad Offshore to sell subsea vessel to Fugro

  • Business & Finance

Norwegian offshore shipping company Solstad Offshore has agreed to sell its subsea construction support vessel REM Etive to Fugro.

Solstad said on Tuesday that the sale would be effective upon the completion of the existing contract and that the delivery to new owners would take place during the second quarter of 2017.

Solstad did not reveal the name of the buyer but, according to Fugro’s statement on Tuesday, Fugro is the company that is acquiring the vessel from Solstad.

The former REM Offshore vessel became part of Solstad Offshore’s fleet after REM merged with Solstad’s Solship Invest. The merger between the two Norwegian companies was registered in the Norwegian Register of Business Enterprises on December 9, 2016.

REM Etive has been on a long-term charter working in Southeast Asian waters with Fugro since it was delivered in 2007. The most recent charter extension was in October of 2013 when the two signed a firm charter until late May 2017.

The 10-year old CSV is 93.5 meters long and 19.7 meters wide with an 800-square meter deck and has a deadweight of 4,148 tonnes.

Fugro said the move supports a portfolio of IRM contracts being executed by the company in the Asia Pacific region.

Commenting on the company’s acquisition, Mark Heine, Divisional Director Marine and member of Fugro’s Board of Management, said: “We are excited to secure the REM Etive and to continue her deployment for our clients in the APAC region.

“With three multi-year IRM contracts already in place, this vessel is the best fit with our fleet to enable us to continue our delivery excellence and efficient performance in subsea IRM projects.”

Solstad added that the sale would give the company a booked profit of NOK 18 million ($2.15 million) and a net cash effect of around NOK 50 million ($6 million) after repayment of the vessel debt.

In related news, Farstad Shipping, Solstad Offshore, and Deep Sea Supply agreed earlier this month to form a new offshore supply vessel company in Norway with a fleet of 154 vessels.

Offshore Energy Today Staff

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