SOFF - Newbuilding at the back door to a lower price?

[Petter]

Following found at SOFF website:

Agreement on New build

Solstad Offshore ASA (SOFF) has entered into an agreement with Skrog 30 AS, owned by Sparebank 1 SR Bank and GIEK, for the purchase of a large anchor handling vessel. The contract was originally placed by SOFF with Karmsund Maritime Services AS.
Updated:26.08.2009

Solstad Offshore ASA (SOFF) has entered into an agreement with Skrog 30 AS, owned by Sparebank 1 SR Bank and GIEK, for the purchase of a large anchor-handling vessel; the contract was originally placed by SOFF with Karmsund Maritime Services AS.

The vessel shall be commissioned at Ulstein Verft. SOFF will take delivery of the completed vessel at the end of March 2010 at a cost of NOK 680 million.

Furthermore, a contract has been entered for financing of the vessel with Sparebank 1 SR-Bank as agents. The financing will amount about 90% of the vessel's cost price and will at drawdown consist of two loans of respectively 80% and 10% (top financing) of the cost price. The capital injection and the draw-down of the long-term loans will take place on hand over of the completed vessel.

The vessel is a VS 490 design and was originally designed in close cooperation with SOFF. It has 28,000 bhp, around 300 ton bollard pull, cabin capacity for 60 persons and is particularly well equipped for anchor-handling operations in deep waters (+1,000m). The vessel is designed with focus on safe anchor-handling and will be installed with Triplex MDH for remote operation of several deck operations.

SOFF expect that the deep water market will develop positively in the years to come and that this contract will further strengthen its position in this segment. In total SOFF has 50 vessels in operation or under construction (including SOFF's share of Rem Offshore and the 50% owned Nor Offshore in Singapore).

Skudeneshavn, 14.7.2009 Solstad Offshore ASA

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Comment:

This vessel was developed together between SOFF and Vik & Sandvik (Now Wartsila) and due to delays in the project face Karmsund ended up taking all cost that added due to changes during the hull construction with very much delays and increase in steel weight etc, etc.. When they asked for more contribution from SOFF they just sat down on the fence waiting. This might have been a key reason for the Karmsund bankruptcy mentioned in another article here. Sure they got it cheep from SR-Bank.

See the beautiful hull under towage from KMS: