A glimmer of hope for Farstad Shipping?

Norwegian offshore vessel owner Farstad Shipping, looking at ways to weather the storm caused by low oil prices, might have found a solution in Siem Industries.

Farstad, the owner of 57 offshore vessels, has been working on various options to enhance its financial position in order to enable long-term operations for the company.

Hundreds of offshore support vessels have been laid up since the oil prices started to fall down in mid-2014, reducing offshore activity and impacting shipowners strained by financial covenants.

In a statement on Friday, the company said it entered into a non-binding letter of intent with Siem Industries for the financial restructuring, with Siem or a fund managed by Siem as a key equity investor.

“In accordance with the letter of intent, Farstad Shipping ASA and Siem are continuing the company’s discussions with key stakeholders of the Farstad Shipping group with a view to find a solid financial platform for Farstad Shipping ASA’s continued operations,” Farstad said.

According to reports, there are currently more than 500 offshore vessels laid up around the globe, with around a 100 in the North Sea alone.

A few months ago, presenting its second-quarter results at the end of August 2016, Farstad said there were no near signs of improvement in the offshore support vessel market. It then said that its going-concern assumption was depending on the company reaching agreements with creditors on reduced repayments and postponed maturities in order to improve the cash position.

Offshore Energy Today Staff

Share this article

Follow Offshore Energy Today

Events>

<< Dec 2019 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

Africa Oil Week 2020

For over 25 years Africa Oil Week has been the meeting place for Africa’s most senior E&P stakeholders.

read more >

CERAWeek 2020

 Each year, CERA clients gathered for a few days in Houston…

read more >

Offshore Technology Conference (OTC) 2020

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply