Solstad Offshore Sells Seven Vessels for Recycling

Norwegian offshore vessel operator Solstad Offshore has sold seven vessels that have been laid up for a while for recycling.

"The vessels to be recycled are defined by Solstad as non-strategic, they are of older age and considered to be irrelevant for present and future markets," Solstad said.

The vessels are Sea Tiger, Normand Atlantic, Normand Borg, Normand Neptun, Sea Pollock, Far Strider and Far Sovereign and will be recycled at the Green Yard Feda and Green Yard Kleven shipyards in Norway.

"We are pleased that we finally can start green recycling of a major number of our oldest vessels. These have all have been in lay-up over a considerable time. This will allow us to increase focus on upgrades and emission reductions from our core fleet of modern offshore vessels going forward,” Tor Inge Dale, Chief Sustainability Officer

"The vessels will be delivered to the shipyard in the near future. The sale of the vessels will result in an immaterial accounting effect for Q4-2021." Solstad Offshore said.

Hans Jørgen Fedog, CEO, Green Yard Group A said: "We at Green Yard are proud and grateful for this agreement with Solstad Offshore. The agreement has a historical scope when it comes to the environmentally friendly recycling of ships in Norway, and it proves that our circular economy business model is really bearing fruit. We are pleased that the activities at our two yards, Green Yard Feda and Green Yard Kleven, can be further developed for a greener future, while securing local jobs.”

Solstad Offshore last year said that, as part of its restructuring agreement, it would "right-size" its fleet to make it more competitive, with a plan to divest 37 vessels "over a period of time." 

Solstad's aim is to reduce fleet size to a level of 80-90 vessels, a target it expects to achieve by the end of the year.

Some vessels are sold for recycling, some for non-oil & gas activity, and some for geographical areas where the company has limited access.