Former Siem Offshore Sees Growth Ordering New Vessels From COSCO
The former Siem Offshore reformulated as Sea1 Offshore after the departure of founder and former chairman Kristian Siem reports it is seeing positive signs in the offshore market and preparing for renewed growth. The company renamed itself and downsized selling nine vessels to Siem in May 2024.
Sea1 Offshore reports it is set for growth based on the market opportunities. It reported on November 4 that it has ordered two new next-generation Offshore Energy Support Vessels from the Chinese shipyard Cosco Shipping. The company said the investment is a consequence of its growth strategy and will help to strengthen the company's position as a leading supplier of services to the energy sector offshore worldwide.
"Chartering contracts and rates are on the rise in the offshore sector, and we expect good earning potential for players who can provide modern and well-equipped ships to the market," says Bernt Omdal, CEO of Sea1.
Omdal sees many positive signs for the offshore industry in the coming years. He confirms that Sea1 is in dialogue with Cosco Shipping about an option of delivering more ships. Sea1 management says it believes in continued high activity in the traditional offshore oil and gas sector.
The newbuild vessels will be approximately 394 feet (120 meters) long, with a cargo deck of 1,400 square meters. Each ship will feature a 250-tonne deck crane and provide accommodations for up to 120 personnel. Both vessels will be equipped with an ROV hangar and a moonpool.
Based on designs from Norway’s Skipsteknisk, Sea1 highlights the ships will be versatile to meet emerging market opportunities. They are designed and will be equipped for a wide range of operations, which includes the renewable energy market. The company expects increased demand for vessels that can serve offshore wind farms.
Sea1 highlights that it is committed to cutting emissions in its fleet. Based on the advanced ST-245 design, the new vessels will be equipped with modern technology to reduce emissions and maximize operational efficiency. They will also be methanol-ready, and the generators will be able to operate on 100 percent biofuel.
When the two newbuilds are delivered in 2027, Sea1 reports it will own a fleet of 19 modern offshore vessels. The company will be ending in April 2025 the management agreement for the nine vessels sold this year, but highlights it was able to use that to lower its debt position. It also signed management agreements for six AHTS vessels owned by the Viking Supply Ships as it works to continue to reposition the company for growth.