The Norwegian Maritime Authority (NMA) is trying to expand the country's ship registers by luring bareboat vessels.
The agency said it wants to make the Norwegian International Ship Register (NIS) and Norwegian Ordinary Ship Register (NOR) more adaptable and competitive.
Rules are being changed from 1 July to allow ships on bareboat charters to move in and out of the registers.
"The industry has long desired this change, which is an important step for Norway to remain a competitive and attractive flag state," said Norway's director general of shipping and navigation, Lars Alvestad.
"We are continuously working on the conditions for the Norwegian maritime industry. The bareboat registration may increase the number of Norwegian ships flying the Norwegian flag and boost the employment of Norwegian seafarers."
Keeping existing vessels
The move will provide the industry with access to new markets and, at the same time, prevent permanent deregistration from Norwegian ship registers, according to the country's trade and industry minister, Iselin Nybo.
The changes also received a positive reaction from Harald Solberg, chief executive of the Norwegian Shipowners' Association.
"By permitting bareboat registration, the government’s maritime strategy is continued," he said.
"Bareboat is a common form of hiring ships in international shipping, and the new rules can contribute to more ships being registered in the Norwegian registers and prevent ships from flagging out."
He added that many other countries already have similar rules.
The move could be particularly relevant to vessels subject to sale and leaseback transactions with foreign financial institutions, where banks may require a change of register.
Temporary de-flagging possible
The possibility of temporary bareboat deregistration from the NIS and NOR implies that the ships do not need to be permanently deleted from the Norwegian ship registers any longer, the NMA said.
Ownership and mortgages remain registered in Norway, whereas the ship flies a foreign flag during the bareboat charter period.
Unlike certain other flag states, there is no restriction as to which flag a vessel can be bareboat-registered to, it added.
But the registered owner and mortgagee must consent to the change of flag.
The scheme has a validity of 10 years, although this can be extended by five years at a time.
It will be re-evaluated after the first five years.
