Norway's DOF Group has cut its fleet further with a rarely seen scrap deal for one of its elderly offshore ships.
The company revealed it had entered into an agreement with a recycler in Turkey for the 3,350-dwt platform supply vessel (PSV) Skandi Hav (built 1983).
No price was given, but VesselsValue rates the vessel as worth just $460,000 on a scrap basis, which is also its value for further trading.
The ship had been supporting floating production, storage and offloading operations in Brazil until as recently as 2019, but is now stacked in the Canary Islands.
A total of 83 PSVs and anchor-handling tug supply (AHTS) units remain laid up in North Sea ports, but TradeWinds has reported that scrapping is an unattractive option for owners due to the low steel content of the ships.
In February, John Fredriksen's SFL Corp said it had scrapped a laid-up offshore support vessel after tearing up a bareboat charter with Norway's Solstad Offshore.
The 15,000-bhp AHTS Sea Leopard (built 1998) was sold for green recycling in Norway.
Loss-making DOF has also completed the sale of the 16,315-bhp AHTS vessel Skandi Giant (built 2002) to an international buyer, as it readjusts the fleet in the offshore slump.
Vietnamese move
The buyer of the laid-up ship was identified by brokers as Hai Duong of Vietnam, an owner of 27 offshore vessels.
Clarksons put the sale price at $2m, while VesselsValue assesses the unit as being worth $2.93m.
DOF also said it is preparing to sell a vessel laid up in the Asia-Pacific region since 2018.
The company also revealed that two long-term contracts have been cancelled.
DOF did not give details, but said it is receiving cancellation fees from the charterers in the third quarter. This is estimated at NOK 110m ($12.35m).
