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Norway’s North Sea: a tale of two spot markets
Brokers report a tough start to 2025 for the PSV market in Norway and for the UK North Sea market as a whole, but remain optimistic that conditions will improve as better weather arrives
In the first two months of the year, Norway’s North Seas has presented a tale of two spot markets, with anchor-handling supply tugs (AHTSs) commanding day rates as high as Nrk1.4M (US$132,000), and platform supply vessels (PSVs) pulling in less than half of what they did a year ago.
Fearnley pointed out the disparity in its thorough offshore supply market analysis in March, noting the strong showing by AHTSs: January day rates averaged above Nrk500,000 (US$47,160), and February’s over Nrk450,000(US$42,445) per day.
PSV tonnage owners were far less fortunate, with the market suffering from “high availability and low day rates,” according to the ship broker. January’s highest day rate was Nrk170,000 (US$16,035), lower than the 2024 average, and February’s highest day rate was in the low Nrk200,000’s, almost 60% lower than last year, according to Fearnley.
Prospects were not any better for AHTS vessels in the UK North Sea, with average day rates coming in at £20,000 (US$25,925) — substantially less lusty than the highs of £90,000 and £95,000 (US$116,664 and US$123,145) seen in previous years, according to the broker.
In the UK North Sea, PSVs “continued to struggle with below opex rates, though January’s rates were higher than 2022 and 2023,” said Fearnley.
While noting the majority of AHTS vessel owners in the UK North Sea “have probably been quite underwhelmed” by the early going this year, Seabrokers said, “there is rising sentiment that trading conditions may soon start to improve for owners.” The positive sentiment stems from expectations around seasonal weather improvements, increased activity levels and a tightening of vessel supply.
“PSVs continued to struggle with below opex rates”
“We are already in a trading situation where there is a limited pool of AHTS vessels on the spot market, and several more departures have been confirmed,” said Seabrokers.
One region drawing tonnage away is the Americas, notably Brazil and Canada.
Petrobras demand has acted like a magnet, attracting AHTS vessels from the North Sea. The broker noted the departures of Normand Ferking, Skandi Jupiter and Skandi Mercury for Brazil, and Skandi Mariner and Skandi Mover for Canada.
| UK North Sea average day rates | |||||
| (February 2025 vs February 2024) | |||||
| Vessel | Avg rate Feb 2025 | Avg rate Feb 2024 | % Change | Min | Max |
| Supply duties PSVs <900 M2 | £6,431 | £13,432 | -52.12% | £4,000 | £14,611 |
| Supply duties PSVs >900 M2 | £8,494 | £10,967 | -22.55% | £5,500 | £14,255 |
| AHTS duties <22,000 bhp | £17,999 | £48,559 | -62.93% | £9,976 | £45,000 |
| AHTS duties >22,000 bhp | £26,428 | £53,962 | -51.02% | £10,691 | £49,891 |
| source: Seabrokers | |||||
| UK North Sea average vessel utilisation | ||||||
| Vessel | Feb-25 | Jan-25 | Dec-24 | Nov-24 | Oct-24 | Sep-24 |
| Medium PSVs <900 M2 | 59% | 57% | 70% | 63% | 58% | 72% |
| Large PSVs >900 M2 | 71% | 69% | 73% | 60% | 52% | 82% |
| Medium AHTS <22,000 bhp | 41% | 33% | 44% | 33% | 36% | 47% |
| Large AHTS >22,000 bhp | 51% | 64% | 45% | 45% | 39% | 55% |
| source: Seabrokers | ||||||
Extending PSVs
Independent oil and gas producers in the UK North Sea have extended long-term fixtures. Among the PSVs landing deals was the DP-2-class Grampian Talisman, which was extended for another year until January 2026 by Spirit Energy. An IMT 978 design, the 18-year-old vessel is outfitted as a Group B ERRV, and has an overall length of 78.2 m, beam of 17 m and a deck area of 790 m2.
Similarly, Ithaca Energy extended Island Challenger another year, keeping the PSV firmly fixed until Q1 2026. Seabrokers reported the vessel has been primarily supporting Ithaca Energy’s Alba field activity in the central North Sea.
INEOS UK firmed up a three-year extension of Sentinel Marine’s Cromarty Sentinel, with two further one-year options. The vessel is supporting INEOS UK’s activity at the Breagh and Clipper South platforms in the southern North Sea.
“Trading conditions may soon start to improve”
Oslo-listed Golden Energy Offshore Services (GEOS) announced several extensions with international majors for Energy Duchess, Energy Passion and Energy Paradise. TotalEnergies E&P UK secured Energy Paradise and Energy Passion, with the former now fixed until April 2026 and the latter until March 2026. TotalEnergies has options to extend both vessels for another 12 months. Repsol extended Energy Duchess to September 2025, with a six-month option in Norway.
In reporting results for Q4 2024 and the full year, GEOS chief executive, Per Ivar Fagervoll, was clearly pleased by progress at the Alesund-based OSV operator. He reported GEOS had revenues of Nrk 173.9M (US$16.5M) in Q4 2024, compared with NOK 79.5M (US$7.5M) in the same quarter in 2023 — a 119 % increase y-o-y. In 2024, GEOS had revenues of Nrk513.7M (US$48.6M) compared with NrK 210.1M (US$19.9M) in 2023, a 145% increase y-o-y.
“The significant increase in revenues is a testament to our strategic decisions, including the expansion of our fleet and our ability to capitalise on improved market conditions,” said Mr Fagervoll.
GEOS reported vessel utilisation rates of 96.9% and average day rates of Nrk 265,400 (US$25,115).
Heading back to Europe
One vessel headed back from South America to Europe is the construction support vessel (CSV) Normand Frontier. Norway’s Solstad Offshore reported it had inked a three-year firm contract with an international contractor for the 11-year-old vessel, which would keep it fixed until the end of 2027. AIS data reported the vessel was in the North Sea en route for the port of Rotterdam in mid-March after departing Georgetown, Guyana on 4 March, according to ship tracking information provider VesselFinder.
The Oslo-listed owner said the Norwegian-flag CSV will support the client’s operations worldwide. As part of the charter agreement, Solstad, in collaboration with Omega Subsea, will provide two work-class ROVs (WROVs) along with manning, tooling, survey services, and project personnel to support the operations.
Normand Frontier is owned by Solstad Maritime Holding AS, in which Solstad Offshore ASA holds a 27.3% stake.
And in another long-term deal, Solstad Maritime signed a two-year firm charter with Subsea7 for the subsea construction vessel Normand Subsea, starting 1 January 2026. Options could fix the vessel for three additional years. An IMR vessel, Normand Subsea has been on charter with Subsea7 since 2009.
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