Norway’s Floatel International has decided to sell an accommodation vessel that has been laid up since April 2016.
The Oslo-listed group said the 109-loa Floatel Reliance (built 2010) will be gone by the end of the year.
The ship will require “substantial reactivation” before resuming operations, with a predicted lead time of between eight and 10 months, the Oaktree Capital Management and Keppel-backed company added.
“The reactivation cost is considered too high to create value for our shareholders, and Floatel Reliance’s specification does not align with our strategy to serve tier 1 customers and high-end dynamic-positioning markets,” it said.
In its second-quarter report, Floatel had said the ship was being actively marketed for new charters and reactivation was under consideration.
The company has four other floatels built in 2010, 2013, 2015 and 2016.
The Reliance was ordered in 2007 at what is now Seatrium New Energy in Singapore at a cost of $206m.
Its value now is not known.
If sold for scrap, the unit will be recycled responsibly in accordance with applicable international standards and relevant regulations, Floatel said.
The ship is lying idle in Tenerife in the Canary Islands, Spain.
The owner’s fleet utilisation was 67% in the second quarter.
New contracts
The total firm contract backlog was about $421m at the end of June.
The group signed one contract for execution in 2025 and was awarded three letters of intent for providing services in late 2025 and in 2026, but none of these related to the Floatel Reliance.
It recorded revenue of $41.8m in the quarter, with $12.1m of recurring Ebitda.
