Collaboration in Offshore Vessel Construction: Eidesvik Partners with Agalas and Reach Subsea
Norwegian offshore vessel owner Eidesvik has announced a significant collaboration with fellow Norwegian companies Agalas and Reach Subsea to construct a new construction support vessel (CSV) at the Sefine Shipyard located in Turkey. This partnership highlights the growing trend of cooperation in the maritime sector, particularly among companies seeking to enhance their operational capabilities in offshore environments.
Design Features and Functional Capabilities
The newly commissioned vessel is tailored for inspection, maintenance, and repair (IMR) operations, a critical function in the offshore oil and gas industry. It shares design similarities with a methanol dual-fuelled unit that Eidesvik currently has under construction at the same shipyard in collaboration with Agalas. This design choice underscores a commitment to sustainability, as dual-fuel vessels can utilize cleaner fuel alternatives, thereby reducing emissions and enhancing operational efficiency.
Timeline and Management Structure
The delivery of this new vessel is anticipated in the spring of 2027. Eidesvik will take on the management responsibilities for the vessel, which will be chartered to Reach Subsea for an initial period of five years. The contract will also include options for two additional one-year extensions, providing flexibility for future operations. In this arrangement, Eidesvik and Agalas will jointly hold the majority ownership of the vessel, while Reach Subsea will maintain a one-third stake, reinforcing the collaborative nature of this venture.
Building on Previous Collaborations
This project marks the second joint effort between the three companies, following the successful collaboration on the first newbuild, which is slated for delivery in early 2026. This ongoing partnership illustrates a strategic alignment among the companies, aiming to expand their fleet capabilities and enhance their position in the competitive offshore market.
Strategic Vision for Growth
Jostein Alendal, CEO of Reach Subsea, emphasized the importance of vessel capacity for long-term growth, stating, “Vessel capacity for long-term growth is crucial for us. While long-term charter agreements remain our primary business model, we recognize the significant value in establishing co-ownership of key assets to support our long-term strategy.” This sentiment reflects a broader industry trend where companies are increasingly seeking to diversify their asset portfolios to mitigate risks and capitalize on emerging opportunities in the offshore sector.
Financial Aspects of the New Build
While the financial details regarding the price of the new vessel have not been disclosed, Eidesvik has indicated that the project will be financed through a combination of equity contributions from shareholders and approximately 70% debt financing. Financial backing will be provided by Sparebank 1 Nord-Norge, Sparebank 1 SMN, and Eksfin, demonstrating robust support from established financial institutions in the region. The Oslo-listed company, which currently operates a fleet of 15 offshore support vessels (OSVs), including both newbuilds and managed vessels, will fund its equity share from available cash reserves.
Commitment to Fleet Renewal and Sustainability
Helga Cotgrove, CEO of Eidesvik, remarked, “Adding another newbuild is providing fleet renewal and adding scale with a low emission, versatile vessel. We are pleased to further continue our strong collaboration with existing partners. This is in line with our strategy and builds shareholder value.” This focus on fleet renewal reflects a broader industry-wide initiative aimed at enhancing operational efficiency while adhering to stringent environmental regulations. The emphasis on low-emission vessels is particularly pertinent as the global maritime industry increasingly seeks to align with sustainability goals.
Conclusion
The collaboration between Eidesvik, Agalas, and Reach Subsea represents a significant step forward for the Norwegian offshore vessel industry, particularly in terms of enhancing operational capabilities and promoting sustainable practices. As the demand for offshore support services continues to grow, partnerships like this one will be crucial in ensuring that companies remain competitive while also contributing positively to environmental objectives. With a clear strategic vision and commitment to innovation, this trio is well-positioned to navigate the challenges and opportunities that lie ahead in the dynamic offshore sector.
