Farstad Receives Letter of Intent from Norsk Hydro

Farstad Shipping ASA, in co-operation with Stolt Offshore AS, has received a Letter of Intent from Norsk Hydro for a 5 year charter, plus 3 yearly options, for the newbuilding Far Saga, which was deliverd from Simek AS on 31st of October. The vessel, a large platform supply vessel (PSV) of design UT 745 L, will be a part of Stolf Offshore AS' contract with Norsk Hydro for underwater services.

Far Saga will operate in a PSV role for Norsk Hydro until necessary outfitting and mobilization for underwater services is carried out.

Farstad Shipping will then have 5 of their vessels on long-term contracts with Norsk Hydro, which makes Norsk Hydro one of the company's largest customers. Further this means that 6 of the 7 newbuildings ordered in year 2000 have now achieved long-term contracts.

In addition Farstad Shipping ASA has reached charter agreements for Far Sovereign from the beginning of November this year until the end of year 2002. This work will take place outside the North Sea.

The total value of the firm period of these contracts is approx. NOK 375 millions.