Norwegian offshore vessel owner DOF has been awarded a contract by Equinor energy for anchor handing tug supply vessel Skandi Vega.
The vessel has been on contract since it was delivered in 2010, and the new contract is for six months with an option for a further six months. Equinor also has the option to change the contract to a two or three year period within the first four months.
Despite the contract win, DOF said that the reduced amount of tender activities could see several of its vessels out of action.
“There has been a sharp decline in the tender activities, with few new contract opportunities and less projects to bid for. Due to the sharp decline in the oil price, the oil companies have reduced their exploration activity substantially and some have also started to reduce existing production. It must be expected that the Group will continue to experience adverse consequences of the sharp decline in the oil price, and the responses of the oil companies to such decline,” DOF warned.
Several of the company’s vessels are finishing their contracts in 2020 DOF said, and the challenging market means most of these vessels could end up in layup.