The Saevik family controlled shipbuilder will pocket NOK 350m ($58.6m) to construct a 4,250-dwt platform supply vessel (PSV) at its Leirvik yard by July 2015.
Steingrimur Erlingsson-led Fafnir has an option to order a sister ship for delivery in the final leg of the same year.
The Havyard 830 WE ICE is an ice class hybrid battery powered vessel designed to work in Arctic conditions.
Fafnir, which has its roots in the fishing industry, currently has one vessel under construction at the yard.
When it hits the water later this year it will join the government of Svalbard for 180 days per year over six years.
The order was Iceland’s foray into the offshore industry and at NOK 330m the most expensive ship ever contracted by an Icelandic owner.
Havyard, which is expected to complete an IPO in Oslo during the current quarter, now has an orderbook covering 10 vessels for delivery through 2015.
