Farstad Wins 5-Year Deals for PSVs

Farstad Shipping has been awarded two five year contracts by Esso Australia for the provision of two dynamic positioning platform supply vessels (Far Scandia and Lady Kari-Ann) to support Esso's production operations in Bass Strait, Australia. The contract turnover is approx. NOK350 million and is scheduled to start in mid January upon the delivery of the Far Scandia to Esso's Barry Beach Marine Terminal. Farstad Shipping has recently completed the previous support contract to Esso in Bass Strait (also five years duration) with the vessels Lady Elizabeth and Lady Kari-Ann. The latter vessel will remain on as part of the two vessel service whereas Lady Elizabeth is expected to rejoin the Australasian market in late January. To cover the potential of Esso's vessel needs changing over the five year term, early termination provisions exist with related compensation prescription. This will bring the total number of offshore support vessels Farstad Shipping has in the Indian Pacific region to 18, including 7 PSVs, and strengthen the presence in a very important region which in 3Q 2003 accounted for 37% of Farstad Shipping's total freight income. With the delivery of the latest PSV into the fleet next week, the Far Splendour (P106 type) from Ulstein Verft, the Groups fleet will stand at 49 vessels all 100% owned.