Farstad Shipping Wins $234 Million in Charter Contracts

Image: Farstad Shipping

Farstad Shipping announced today the winning of charter contracts for 9 of their vessels, including two newbuild PSVs for Statoil. Excluding options, the value of these deals are reportedly worth NOK 1.4 billion, or USD $234 million.

Statoil awarded a long-term charter contract for two of Farstad’s platform supply vessels, each for a firm period of 6 years and 3 x 1 year options. The contracts will be served by two newbuilds. Shipbuilding contracts for these will be signed in the near future. Commencement of the Charter Contracts is after delivery from the yard, which is expected to be 3^rd and 4^th quarter 2014 respectively.

Nan Hai VI, image by Fini Patrick Holsting

In Australia, Santos Australia Ltd. has awarded PSV Lady Grete (2002, UT 755L, 3,271 DWT) and AHTS Far Saltire (2002, UT 728L, 16,320 BHP) a contract in support of their Nan Hai VI drilling operations on their Fletcher Finucane campaign. Approx. duration of the contract is 235 days with commencement in June.

Shell Australia has awarded their Palta exploration support to AHTS Far Stream (2006, UT 712L, 14,688 BHP) and AHTS Far Scimitar (2008, UT 712L, 14,688 BHP). Duration for this campaign is approx. 3 months commencing in August.

In addition, Shell Australia has awarded their long term Prelude drilling support contracts to PSV Far Spirit (2007, VS 470 Mk II, 3,624 DWT), PSV TBN Far Skimmer (2012, STX PSV08 CD, 4,000 DWT) and PSV TBN Far Sitella (2013, STX PSV08 CD, 4,000 DWT). Durations for each vessel vary between approx 1.5 to 2.5 years with potential options to extend each by a further 200/300 days. Contract commencement for the two newbuilds will be immediately after delivery from the yard in Vietnam. Start up for PSV Far Spirit will be in the middle of August.

The contracts in Australia are important for Farstad Shipping’s long-term campaign in this region, and further strengthen our long cooperation with Shell as a major, international oil company.