Norway’s Reach Subsea has become a shipowner in a deal with compatriot Ostensjo Rederi.
The company, which operates chartered ships, is paying $29m to acquire the 85-loa Edda Sun (built 2009), a multipurpose remote operated vehicle (ROV) support vessel.
Reach said the attractive price secures long-term ship capacity over the next few years.
The company has also chartered in the 79-loa MPP ROV Go Electra (built 2012) from Otto Marine in Singapore.
It has been fixed for four years with a 12-month option at “a highly competitive fixed charter rate” and a profit share arrangement, Reach added.
“With the favourable terms on the two new vessels, and the existing charters of Havila Subsea and Deep Cygnus, Reach Subsea now has a long-term core fleet portfolio with an estimated 20% to 30% cost advantage compared to the current market,” the company said.
This will be improved with the launch of its unmanned Reach Remote newbuildings in 2023.
The Edda Sun is worth $33m, according to VesselsValue.
It was bought by Ostensjo for $27.5m from Volstad Shipping in 2017.
“We are currently seeing record high activity and face a market with a solid growth outlook for years to come,” said Reach chief executive Jostein Alendal.
‘Very tight’
“Hence, the market for vessel capacity will be very tight, but we are now perfectly positioned to manoeuvre and take advantage of the growing demand for both short-term and multi-year assignments.”
Reach said the deal is a new development for the company, as it moves into shipowning.
“However, the implied charter rate derived from the purchase price on the vessel is below the charter rates we are offered on other similar vessels in the market,” it added.
Alendal explained that in the current market, it is attractive from a cost perspective to own parts of the ROV capacity.
Credible ship supply
“Owning the vessel also implies a mitigation of any cost inflation risk in the coming years, as well as being able to credibly cater to our clients’ growing need for long-term solutions,” he said.
The Edda Sun will be mobilised with one work-class ROV and one high-speed Surveyor Interceptor in time for the high activity season in the North Sea.
The Go Electra, available for Reach in early 2023, will be deployed with one work-class ROV and one observation ROV.
The owner is considering various financing opportunities for the Edda Sun purchase, including debt, equity, partnering, or a combination.
