Norwegian support vessel trio agrees to merge

Three leading Norwegian offshore support vessel companies have agreed to merge.

Offshore staff

ÅLESUND, SKUDENESHAVN, GRIMSTAD, Norway – Three leading Norwegian offshore support vessel (OSV) companies have agreed to merge.

Farstad Shipping, Solstad Offshore, and Deep Sea Supply plan to join forces following completion of a restructuring program at Farstad.

The fragmented Norwegian OSV industry requires consolidation, they claim.

Farstad CEO Karl Johan Bakken said: “With this solution, we provide Farstad, Solstad, and Deep Sea Supply with an industrial platform to sustain the current downturn in the OSV market and to be well positioned to exploit a market recovery.”

The resultant entity, Solstad Farstad, would be the largest company in the high-end global offshore supply vessel industry with a fleet of 154 vessels, although only fourth when including all vessel classes and lower spec ships.

It will operate a fleet of 33 construction support, 66 platform supply, and 55 anchor handler tug supply vessels operating globally in all deepwater hubs.

Solstad CEO Lars Peder Solstad said: “For over a year we have advocated strongly for consolidation in the OSV industry. One step was taken through the merger of REM Offshore ASA intoSolstad Offshore in 2016.”

Assuming the consolidation is successful, Solstad Offshore would be the parent company, supported by the other owners Hemen and Aker.

Jon Are Gummedal, CEO of Deep Sea Supply, said: “The proposed combination is a necessary structural measure in today’s OSV market, which will enable the combined company to achieve significant synergies through more efficient operations and a lower cost base.”

Lars Peder Solstad will be proposed as CEO of the combined company, which will be based in Skudeneshavn.

02/07/2017

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