Eidesvik PSV Contract with Ithaca Cut Short

Bartolomej Tomic
Monday, March 23, 2020

Norwegian offshore vessel operator Eidesvik Offshore will see its platform supply vessel Viking Princess return from a contract earlier than expected.

The company said Sunday that it had received "notice of early redelivery" from the charterer Ithaca Oil and Gas.

"The Viking Princess will be redelivered to Eidesvik end April due to the current market situation," Eidesvik said. The vessel is currently located in the UK sector of the North Sea. 

Eidesvik had won a one-year contract extension with Ithaca in December 2019, a deal that should've kept the vessel busy until January 2021.

Offshore services companies, including offshore vessel owners, offshore drilling firms, and seismic providers, are expected to be hit hard by the effects of the coronavirus pandemic, drop in oil demand and low oil prices on oil companies' capital expenditure.

Marine seismic provider Polarcus last week lost two contracts, one in Africa, another in Asia. Another Oslo-listed survey firm, EMGS, on Friday said BP had informed it would delay a survey project in Senegal and Mauritania.

"It is EMGS’ understanding that the decision is based on the ongoing COVID-19 pandemic," EMGS said. 

It added: "All further mobilization activities will be stopped immediately, EMGS does not expect that it will be possible to find alternative work for the vessel to replace the delayed project."

Also, Oslo-listed oil firm BW Energy said last week it wouldn't exercise two well options for Borr Offshore's Norve jack-up rig in Gabon, citing coronavirus outbreak, oil price uncertainty, and restriction on international travel.

Further, jack-up specialist Shelf Drilling said last week that Dubai Petroleum would cut short the contract for the jack-up rig Shelf Drilling Tenacious. The contract was originally to expire in January 2022, but it would now end in September 2020.

According to Rystad Energy, more than 200 oilfield services companies might be forced to declare bankruptcy - most of them in Norway and the UK - due to the effects of the Covid-19 pandemic and its effect on oil prices.

Categories: Finance Vessels Industry News Activity UKCS

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