2025 gets off to a slow start for Norway’s PSV market

It has been a slow start to 2025 for the platform supply vessel (PSV) market in the Norwegian sector of the North Sea, marked by high availability, limited opportunities and sagging day rates.

Fearnley reported the highest recorded day rates for January and February were both well below the average monthly day rates during the same months in 2024.

“The average day rates were almost 60 % lower this year,” said the broker. For January, the highest day rate was about Nrk170,000 and for February it was in the low Nrk200,000s, according to the broker.

Taking a ‘glass half full’ perspective, these “dismally low” day rates in January were higher on average than the same month in both 2022 and 2023, said Fearnley.

While pointing to sound underlying market fundamentals, Eidesvik Offshore chief executive, Helga Cosgrove, noted: “Short-term capacity drove rates in charterers’ favor, in particular towards the end of [2024] and into the beginning of 2025.” In discussing the Norwegian OSV owner’s 2024 annual results, Ms Cosgrove said: “The subsea market continued its strong development. These short-term movements do not impact us materially as all our vessels are on charter.”

But, while Fearnley anticipates decreasing drilling activity in the coming months along with a drop in vessel supply, the broker does see “some interesting developments” as well. Among these are “a handful of vessels being fixed for pipelaying projects in Norway, reportedly at healthy rates due to the nature of the requirements; relatively short periods in the beginning of peak-season, with the vessels being fixed quite some time in advance.”

“Multiple large North Sea PSVs may be sold to Brazilian interests”

Offshore wind projects could attract PSVs limiting the supply of available tonnage during the summer season, which could boost day rates for both anchor-handling tug supply vessels and PSVs, says the broker.

On the road to Rio

In its offshore supply report, Fearnley suggested “multiple large North Sea PSVs may be sold to Brazilian interests at attractive prices.” This has begun to materialize.

Brazil’s Posidonia Shipping has acquired the 2009-built Island Commander from Norway’s Island Offshore for an undisclosed price. The deal was reported by Seabrokers, which said the vessel has been renamed Posidonia Lion and was being relocated to Brazil.

Long a fixture in the Island Offshore fleet and in Northwestern Europe, the UT 776 CD design PSV has an overall length of 93 m, beam of 20 m, depth of 8 m, and draught of 6.6 m, with a deck area of 1,008 m2 and accommodation for 29.