Havila awarded two vessel contract extensions

November 16, 2016

Norwegian shipowner Havila Shipping has been awarded contract extensions for two of its offshore vessels.

Havila said on Wednesday that Total E&P UK extended the firm period for the platform supply vessel (PSV) Havila Aurora until May 2017 with six optional periods, one month each.

The company entered into a contract with Total for the 2009-built PSV earlier this year. At the time, the companies agreed for a firm period of three months with three optional periods, one month each.

The Havila Aurora is of MT 6009 MK II design, built by Havyard Tomrefjord in 2009. It is 74.87 meters long, 16.40 meters wide with a deadweight of 3205 tonnes. The vessel is powered by four 1291 bkW Cummins KTA5DC main engines and can accommodate 31 people.

Havila also said that Norwegian oil company Statoil had used an option to extend the charter for the Rapid Response Vessel (RRV) Havila Troll. The option period is for one year from November 2016 until November 2017. Statoil has one two-year optional period left which may extend the charter until the end of November 2019.

Havila’s only RRV has been working for Statoil since it was put in operation in 2003. In November 2015, Statoil declared the second extension option for the Havila Troll after the first was used in August 2013.

RRV Havila Troll operates at Statoil’s Troll field located in the Norwegian part of the North Sea around 65 kilometers west of Kollsnes, near Bergen. The 13-year old vessel is 92.4 meters long and 18 meters wide with a deadweight of 4,000 tonnes.

The company added that both extensions are in direct continuation of existing contracts.

These contracts come as a positive sign for the financially troubled company. The company has come under financial distress due to the overall market downfall and a decrease in oil prices.

Havila is currently in the process of negotiating a new restructuring plan with its shareholders and bondholders. As Havila itself has said, if the restructuring efforts fail, the likely outcome will be bankruptcy.