Offshore Activity

Farstad Shipping has been awarded a contract extension and several new contracts for its platform supply vessels in Brazil

Norwegian offshore vessel owner Farstad Shipping has been awarded a contract extension and several new contracts for its platform supply vessels in Brazil and Egypt.

The vessel owner reported on Monday that the Brazilian oil giant Petrobras has extended the contract for the 2003-built MPSV Far Swift with another year in direct continuation with present contract, until October 2017. The vessel was previously awarded a two-year contract with Petrobras in 2014, including a 2-year extension option.

The vessel will continue to deliver air diving and ROV services in cooperation with Fugro Brasil, on the Brazilian continental shelf. The Far Swift is of a UT 755 L design with 3,084 DWT.

Further, oil giant Shell has awarded the 1999-built PSV Far Star a two-year contract for the support of their production activities offshore Brazil. The operations will take place by the end of 2016, and Shell has the option to extend the contract with additional two years. The Far Star is of a UT 745 design with 4,403 DWT.

In addition, the Italian contractor Saipem has awarded the 1995-built PSV Far Service and the 1996-built PSV Far Supporter six months contract, including mobilization, to support their activity on the Zohr development project offshore Egypt. To remind, earlier this year, Saipem was awarded work on the development of Eni’s super-giant gas discovery Zohr in Egypt.

The contract with Saipem will start during December 2016 and the Italian company has option to extend the contracts with another 30 days.

In a statement on Monday, Farstad noted that the commercial terms of the agreements will be kept private and confidential between the parties.

The company, amid a financial restructuring with Siem Industries triggered by the reduced offshore activity, recently got a further extension of a standstill and deferral agreement of all financial covenants from its lenders.

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