Farstad Shipping’s Norwegian operations are taking a hit as the company sets to lay up five vessels, and lay off about 100 employees that is due to the further weakening of the offshore market.
 |
|
The Far Sleipner. From Farstad. |
Farstad will lay up two platform supply vessels (PSV) and three anchor handling tug supply (AHTS) vessels in Norway that will result in about 100 offshore employees to be laid off, of which most are Norwegian nationalities.
The company will turn its attention to securing contracts and employment of vessels and crew.
“This is deeply regrettable, but necessary due to the current market situation,” Karl-Johan Bakken, Farstad CEO said.“My target number one is to see us return to a strengthen position with our vessels and employees back in business.”
The company currently has two vessels laid up in Norway, and two in Asia. In May, Farstad laid up the PSV Far Server and PSV Far Spica, and laid off 35 employees.
In 1Q, the company sold the PSV Far Superior in a US$1.78 million deal.
In February, Farstad signed a letter of intent with Technip for the utilization of the Far Sleipner subsea vessel for 11 months, divided into two fixed periods.
Farstad’s fleet consists of 62 vessels: 31 AHTS, 25 PSV, and six subsea, in addition to one subsea vessel that is under construction.
Last week, Electromagnetic Geoservices ASA (EMGS) announced an extension to its cost reduction plans by removing another vessel from its fleet, and reducing staffing levels in a move that will reduce operation costs by up to $35 million annually, and $70 million for 2015.
Read more:
Subscribe
