Norwegian OSV owner announces long-term contracts for six vessels, including two LNG-fuelled PSVs
Norwegian offshore vessel owner Island Offshore has secured long-term contracts for six vessels, including two LNG-fuelled platform supply vessels (PSVs) for operations in the Norwegian Continental Shelf (NCS) and UK North Sea.
Lundin Norway, a subsidiary of independent oil and gas company Lundin Petroleum, has signed charters for the two LNG-fuelled PSVs Island Crusader and Island Contender for terms of 600 days and 400 days, respectively. Lundin Norway has also chartered the PSV Island Commander for three years. Lundin Norway has options to extend the charters for all three vessels, which will support operations on the NCS.
“We have not seen contracts of equivalent duration for quite some time now, which makes it extra pleasant to sign contracts for three vessels in one go,” says Island Offshore Management managing director Tommy Walaunet.
Charters of the two LNG-fuelled PSVs will commence between April and August 2020, while Island Commander will go on its new contract in November, in direct continuation with the existing contract. Island Crusader will be supporting the rig West Bollsta for 10 wells, while Island Contender will be supporting the rig Rowan Viking drilling seven wells.
Based on a UT 776 CDG design, sister vessels Island Contender and Island Crusader each have an overall length of 96 m, beam of 20 m, with a clear deck area of 1,000 m2 and dynamic positioning class 2 capability. The vessels are typically deployed for transporting equipment, general cargo and pipes on deck, and liquid cargo and dry bulk cargo, such as cement and barite. Both built by Vard Brevik in 2012, the vessels can also act as oil recovery vessels or standby and rescue vessels.
Slightly smaller than Island Contender and Island Crusader, the 93 m, 2009-built Island Commander will continue supporting drilling activity at the Edvard Grieg field.
Mr Walaunet says the charters are the result of a long-term customer relationship. “All three vessels have been term contracts for Lundin before, hence they know our vessels well,” he says.
Chartering the LNG-fuelled PSVs should help advance Lundin’s long-term decarbonisation ambitions. In January, Lundin Norway’s parent Lundin Petroleum unveiled its decarbonisation strategy, with a goal of being a carbon-neutral oil and gas producer by 2030. Among Lundin’s actions are the full electrification of the Edvard Grieg and Johan Sverdrup Phase 2 by 2022 to achieve carbon intensity for these assets of less than 1 kg of CO2 per barrel of oil equivalent (boe). By comparison, the world average is 18 kg of CO2 per boe.
UK North Sea charter extension
In the UK North Sea, Island Offshore also secured a one-year extension of an existing contract with Team Marine for the UT 776 E design PSV Island Champion working out of Aberdeen. Island Offshore says its relationship with Team Marine started back in 2007.
“Both vessel and crew have delivered high quality services for years, with exceptionally good feedback from the customer,” says Mr Walaunet.
In addition to these contracts, Island Offshore has secured long-term contracts for two additional PSVs as a result of good long-term relations with an unnamed customer.
Mr Walaunet says the contracts provide a “significant contribution” to Island Offshore’s order book.
With the addition of the recently delivered deepwater installation vessel Island Victory, Island Offshore’s fleet comprises 14 PSVs, three anchor-handling tug supply and deepwater installation vessels, four walk-to-work vessels, three riserless intervention vessels, five subsea construction vessels and three well stimulation vessels.