Cypriot owner SeaBird Exploration has scrapped another elderly seismic survey vessel.
The Oslo-listed company said that, as part of its asset-light strategy and renewal process, it has decided to sell the 81-loa Harrier Explorer (built 1979) for recycling.
The deal, expected to be completed early in the third quarter, is expected to have a small positive cash effect.
In February, SeaBird decided to decommission the 2,100-dwt Osprey Explorer (built 1985) and shift its seismic equipment to the chartered-in 5,000-gt research ship Geo Barents (built 2007).
The latest disposal will leave Seabird with three owned ships built in 2008 and 2009.
Scrapping is a tough sell
Industry players have long bemoaned the relatively low levels of offshore vessel scrapping compared with other sectors.
But the economic incentive has not been there for owners, because the ships have so little steel content.
Companies have been laying up units or selling them out of the industry in the coronavirus slump.
However, in January, five former Zamil Offshore vessels headed for recycling in India. The small anchor handling tug supply vessels had been laid up in Saudi Arabia.
Meanwhile, SeaBird has completed a bond refinancing with a new bank mortgage.
It bought back its SBX04 issue with $16m borrowed over three years from Sparebanken 1 SMN.
Some of the money was due to be spent on outfitting one of its vessels for seismic operations.
