WWS set to stack its whole fleet after Brazilian block?

World EmeraldTwo of World Wide Supply’s platform supply vessel (PSVs) under contracts with Petrobras in Brazil have been blocked by Brazilian local tonnage thus jeopardizing the contracts. If these two lose their contracts, WWS will have no more active vessels. 

World Wide Supply said on Friday the company has received a message that its two remaining vessels on charter to Petrobras, the World Emerald and the World Sapphire, have been blocked by Brazilian local tonnage for the upcoming annual renewal of the vessels Brazilian Certificate of Chartering Authorization (CAA).

According to WWS, the certificates for World Emerald will expire on June 21, 2016, and for World Sapphire on August 10, 2016.

World Emerald and World Sapphire are platform supply vessels of a DAMEN PSV 3300 CD design built by Damen Shipyards Galati in Romania and delivered in October and December 2013, respectively.

World Wide Supply said that, together with its agents, the company would negotiate with Petrobras to see if this issue can be resolved. If not, the charter of these vessels can be terminated from the day the certificate expires, the shipping company said.

 

Fleet of six supply vessels

 

WWS owns six PSVs in total with only two, the World Emerald and World Sapphire, still under a contract.

The other two, the World Opal and the World Peridot, were previously under a contract with the Brazilian oil company. However, the contracts for these two PSVs were terminated in September 2015, after which the vessel owner accused Petrobras for an unlawful contract termination. These two vessels are now laid up in Norway.

The shipping company’s remaining two PSVs of the PSV 3300 design, the World Pearl and the World Diamond, were laid up in May 2015 due to a weak offshore spot market.

What this means is that, if Petrobras terminates the remaining two contracts, WWS will have no more active vessels.

Offshore Energy Today reached out to WWS asking about the shipping company’s options in case the terminations do happen, and whether this means WWS will stack its two remaining vessels.

In an e-mail to Offshore Energy Today, WWS spokesperson said: “If we do not succeed in having the blocking lifted we must expect to be terminated; the option then is to find alternative employment.

“If we are terminated and we do not obtain new employment right away we will carefully consider where to station the vessels. “

With an 80.1m length, the PSV 3300 has a deck load of 1,500 tonnes. The vessel can be used to transport crew and equipment to and from offshore platforms, but it also offers fire-fighting and oil pollution recovery capability.


 

The article has been amended to include a statement by World Wide Supply 

Offshore Energy Today Staff

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