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Offshore carriers prepare for tough six months ahead

Carriers servicing oil companies in the offshore sector are idling ships in efforts to handle the tough conditions in the sector. The rates could return to financial crisis levels, says Platou.

Photo: Viking Supply Ships

Numerous offshore carriers such as Solstad, Farstad and Island have already announced plans to idle seven ships and lay off 200 employees, and several other carriers could follow, estimates Norwegian Platou Offshore according to newspaper Finansavisen, reports Dagens Næringsliv.

Several of the major oil companies were downscaling and trimming their activities already prior to the drastic slide in the oil price, a development resulting in less work for the offshore vessels. Many of the ships will likely end up berthed in 2015, and 2016 also looks challenging at this point, chief analyst at Platou Offshore, Erik Tønne, tells Finansavisen.

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