World Wide Supply: Ray of hope from Brazil?

Norwegian offshore ship supplier World Wide Supply (WWS) has received somewhat positive news from Brazil.

Namely, there is a possibility the company might keep two of its vessels busy working for Petrobras, however, not for long.

The company, established six years ago, on Thursday made reference to its notice from March 2016, when World Wide Supply informed that its two remaining vessels on charter to Petrobras have been blocked by Brazilian flagged vessels for the upcoming annual renewal of the company’s Brazilian trading certificate.

The Brazilian Certificate of Chartering Authorisation (“CAA”) of the platform supply vessel World Emerald will expire on June 21 and the CAA of the vessel World Sapphire will expire on August 10.

The shipowner said it has been in discussion with Petrobras to see if this issue can be resolved.

According to WWS, Petrobras has made an application to the Agencia Nacional de Transportes Aquaviarios (“ANTAQ”) to be allowed the keep the vessels on charter for additional 60 days each in spite of the vessels being blocked. Further extensions cannot be applied for, WWS said.

“The Company has been advised that Petrobras has received approval by ANTAQ in respect of World Emerald. There is still some time before the CAA for World Sapphire expires, and the Company remains hopeful that a similar extension will be received in respect of that vessel as well,” World Wide Supply added.

World Emerald and World Sapphire are platform supply vessels of a DAMEN PSV 3300 CD design built by Damen Shipyards Galati in Romania and delivered in October and December 2013, respectively.

Back in March, World Wide Supply said that, together with its agents, the company would negotiate with Petrobras to see if the blocking issue could be resolved. If not, the charter of these vessels would be terminated from the day the certificate expires, the shipping company then said. This would in turn mean that WWS’ whole PSV fleet would be idle, as four of its remaining vessels are currently laid up.

Also, there is further uncertainty when it comes to WWS.  Namely, The company has said it is in breach of its financial agreements and the creditors can at any time enforce the securities. This means that WWS might be forced to sell the vessels under the current market conditions.

Offshore Energy Today Staff