Reach Subsea turns owner with Østensjø MPSV buy

Norwegian offshore services player Reach Subsea is building up its operations with the acquisition of multipurpose ROV support vessel Edda Sun from compatriot owner Østensjø Rederi.

The Haugesund-based company, which has thus far focused on chartered-in vessels, is paying $29m for the 2009-built MPSV, a price it noted was below the charter rates being offered on its other similar vessels in the market. The deal should close in March next year, subject to consent from banks and vessel inspection. The ship will be mobilised with one work-class remotely operated vehicle (ROV) and one high-speed Surveyor Interceptor unit in time for the high activity season in the North Sea.

“In the current market, it is attractive from a cost perspective to own parts of the ROV vessel capacity. Owning the vessel also implies a mitigation of any cost inflation risk in the coming years, as well as being able to credibly cater to our client’s growing need for long-term solutions,” explained Jostein Alendal, CEO of Reach Subsea.

In addition, Reach has further boosted its vessel capacity with a charter contract for the 2011-built multipurpose ROV support vessel Go Electra with a duration, including options, through 2027 at “a highly competitive fixed charter rate and a profit share arrangement”. The vessel will be available in early 2023 and will be mobilised with one work-class ROV and one observation ROV.

Following the latest deals and the existing charters of Havila Subsea and Deep Cygnus, Reach Subsea said it now had a long-term core fleet portfolio with an estimated 20-30% cost advantage compared to the current market, which is expected to be further improved with the launch of the unmanned Reach Remote vessels in 2023.

“We are currently seeing record high activity and face a market with a solid growth outlook for years to come. Hence, the market for vessel capacity will be very tight, but we are now perfectly positioned to maneuver and take advantage of the growing demand for both short-term and multi-year assignments,” added Alendal.