Norway-based Solstad Offshore is set to lay-up ten offshore vessels citing market downturn.
The lay-up is expected to take place by the end of this year and will primarily include platform supply vessels (PSV) and anchor handling tug supply vessels (AHTS) and is expected to make about 300 people redundant.
Splash 24 / 7 reported Solstad Offshore vice-president Sven Stakkestad as saying that approximately 150 of the dismissed workers will be from Scandinavia and primarily Norway.
Stakkestad added that the downsizing process will continue and is required to ensure that the company will make it through the downturn.
Weak oil prices are said to have affected the company’s supply business in the North Sea and Brazil.
In its mid-year 2015 report, Solstad Offshore announced that the company’s fleet comprised 46 wholly-owned or partly-owned vessels at the end of second quarter.
According to the company the market is set to remain weak in the remaining part of the year, as well as in 2016.
The Norwegian offshore service and supply ship shipping company operates 50 vessels and two newbuilding CSV, including 19 construction service vessels, 22 anchor handling tug supply vessels, and nine platform supply vessels.
Image: Solstad’s construction support vessel Normand Mermaid in Falmouth in 2012. Photo: courtesy of GeorgeAJMarshall