Looking at ways to weather the storm caused by the low oil price, the Norwegian offshore vessel supplier Farstad Shipping has turned to a new market amid depressed offshore vessel chartering.
The company, working on its debt restructuring for months now, said on Friday that Ocean Farming, a subsidiary of the SalMar Group, has awarded Farstad Offshore, a wholly owned subsidiary of Farstad Shipping, a contract for the complete mooring installation and hook-up of Ocean Farming’s semi-submersible offshore fish farm.
To remind, trying to find a solution for its debt problems, Farstad on November 24 signed a binding term sheet signed with Siem Oil Service Invest Limited which would provide the company with NOK 1 billion in new equity. Earlier this week, the company posted a third quarter loss after tax of NOK 350.3 million, compared to a loss of NOK 435.3 million, a year ago.
Back to the current topic, Farstad said the scope involves project management as well as execution of the offshore operations. The project will utilize AHTS vessels from the Farstad Shipping fleet trading the spot market in the North Sea.
Operations are scheduled to take place during first half of 2017. Farstad said that the commercial terms of the agreement will be kept private and confidential between the parties.
“Within the company, we have an extensive track record and knowledge base related to offshore mooring and hook-up operations, and this has been key factors enabling us to secure this contract. We highly appreciate Ocean Farming’s confidence in Farstad Shipping as demonstrated by the award of this interesting contract in this new market segment,” says Karl-Johan Bakken, CEO of Farstad Shipping.
“The introduction of offshore fish farms of this size and specification is also opening a new market for utilization of large AHTS vessels and we are excited to take part in making this first pilot a success, and look forward to further developments in this market,” Bakken concluded.