Havila Shipping ASA: Contract with Reach Subsea for the Subsea Vessel Havila Harmony
Tuesday 24 July 2018
Havila Shipping and Reach Subsea will enter into a contract for the subsea vessel Havila Harmony for a period of three years with two optional years.
The contract secures work for minimum period per year and the owner and charterer will market the vessel to secure highest possible utilization.
Havila Harmony is on her way to Las Palmas, Gran Canaria, where she will be docked for planned maintenance and will then continue to the first job.
Reach Subsea's Houston office has been awarded several contracts by oil majors in the region, comprising some 100 days of work going forward.
The Houston office was opened earlier this year, in order to target an expansion of their services into an important subsea hub. So far, Reach Subsea has executed a couple of projects in the region utilising subsea spreads hired-in on a project by project basis. However, they are gaining traction with their marketing efforts at a higher pace than expected with two frame agreements now signed with oil majors, and subsequent contract awards that have followed. Thus, the need to control one or more subsea spreads permanently dedicated to markets served by our Houston office has emerged more quickly than expected.
With this backdrop, Reach Subsea has entered into a charter agreement with Havila Shipping for use of the subsea vessel Havila Harmony for 3 years, with an option to extend for 1+1 years. The commercial terms of the charter agreement are confidential between the parties. The vessel will be mobilised with one ROV onboard, which Reach Subsea will lease initially. Thus, investments associated with this expansionary move are limited at the outset. Reach will mobilise the vessel immediately and use the vessel on own projects originated from their Houston office.
With this latest addition to their fleet, Reach Subsea currently markets 8 subsea spreads alone and together with their partner MMT Sweden, contributing to their strategy of carefully expanding their platform into a market recovery.