New contracts to Atlantic Offshore

1/24/2013 6:44 AM EST

Atlantic Offshore orders a new ERRV vessel, based 
upon a new contract with Shell. Including this 
newbuilding, Atlantic Offshore has invested  NOK 2.5 
billion into its fleet modernization programme.

New contracts with Shell Norway, Shell UK and ADTI UK 
amount to approx. NOK 500 million, of which NOK 300 
million is related to firm periods and 200 million to 
optional periods for the charterers. Two of the 
contracts commence in March 2013. 

Based upon the contract awarded by Shell UK, the 
company has decided to build yet another HY 820 Field 
Support Vessel designed in collaboration with Havyard.
The newbuilding will be completed in 2015 and will 
operate for Shell UK at the Fram field in the North 
Sea.

In the last three years, Atlantic Offshore has 
invested in 9 vessels; PSV and FSV, with a total 
investment cost of NOK 2.5 billion. The investments 
are related to the company's strategy of modernising 
the fleet. CEO Roy Wareberg is very pleased that 
Shell both sign new agreements with the company, and 
also extends the existing contracts by exercising 
options.

- We have been close partners for many years, and 
consider it as a vote of confidence that Shell choose 
to expand the cooperation, says Wareberg. The new 
ship will be the third HY 820 vessel ordered. Two 
similar vessels are currently under construction at 
the Spanish shipyard Astilleros Zamakona in San 
Sebastian.

- We have not yet decided where the next ship will be 
built. This will be assessed during the next few 
weeks, says Wareberg. He confirms that market 
activity is high. During a few months last summer 
Atlantic Offshore won contracts and options with a 
value of NOK 2 billion.

- With the new contracts from Shell and ADTI, and 
long-term contracts on existing tonnage, we are 
pleased with the commencement of 2013. We have made 
significant investments to meet new requirements and 
demands from the oil producers. With the 
newbuildings, we are well positioned in markets 
outside Norway, says Wareberg.

Contacts for further information:

Roy Wareberg, CEO, tel +47 91 89 56 26
Knut Kvinnsland, CFO, tel +47 90 12 58 96