Norway's Island Offshore has reduced its fleet further as North Sea operators battle a weak oil and gas market.
The company told TradeWinds that it is selling two platform supply vessels to a Middle East owner, with a third PSV to be sent out on bareboat charter to the same operator.
The 3,750-dwt Island Dawn (built 2013) and Island Duchess (built 2014) are the vessels being sold.
The Island Dawn has been trading in the North Sea spot market but has now left the region, while the Island Duchess, which has yet to depart Norway, has been laid up since 2016.
VesselsValue assesses the ships to be worth $9.5m and $9.45m, respectively.
The sistership — Island Dragon (built 2014), which was laid up in Norway earlier this year — is heading out on bareboat charter.
Norwegian broker Seabrokers said there is a purchase option attached to the Island Dragon, which is valued at $9.89m by VesselsValue.
“The vessels will be delivered to the new owner in July and August,” Island Offshore chief executive Tommy Walaunet told TradeWinds. “The vessels will be working in the Middle East.”
However, he added that he could not disclose the buyer.
Walaunet said there are no more vessel departures planned at present.
Island Offshore has 26 other ships, including PSVs, anchor-handling tug supply units, multipurpose offshore ships and a floatel.
Walaunet said markets are stable but weak.
Little demand in Norway
“The Norwegian Continental Shelf market is not very oversupplied currently but very few enquiries put pressure on prices,” he said.
"The UK Continental Shelf market is very difficult with far too many vessels idle. Owners need to stack more vessels to improve the situation."
In May, the company sold a ship for conversion into a salmon delousing vessel.
Domestic aquaculture player Smir Group acquired the laid-up, 3,000-dwt UT 755LN-type PSV Island Spirit (built 2006) for operation by its Hydro Shipping unit.
The new owner renamed the vessel Hydro Patriot — its second converted PSV — as oil and gas ships continued to exit a sector hit by dire rates since the pandemic struck and oil prices fell.
Seabrokers assessed large PSVs as averaging £4,769 ($5,957) per day last month, down 57% from £11,039 a year ago. The lowest rate was £3,500 per day.
Norwegian broker Westshore said PSVs are enjoying 80% utilisation this week, however.
