Norwegian offshore vessel operator DOF has said Helge Møgster will be resigning from the Board of Directors in DOF ASA following the upcoming ordinary General Meeting, after 18 years in the role as Chairman. He will also resign as chairman in DOF Subsea AS.
DOF said it will be proposed to the general meeting of both DOF ASA and DOF Subsea AS that Hans Olav Lindal replaces Helge Møgster as chairman of the two companies.
"The Group will be facing a very challenging period going forward, with extensive and comprehensive processes related to the refinancing of the Group. This will be demanding for the Board of Directors and the management and will involve other and extensive requirements," DOF said.
The company added: "Lindal has extensive experience and competence corresponding well to these challenges, and it is considered to be in the best interests of the company and shareholders that he will be leading the Board of Directors through this phase."
"Møgster will still be heavily engaged in the company, and will focus his efforts on his ownership role," DOF said.
The Norwegian offshore vessel owner last week warned that several of its vessels might be laid up after the end of their current contracts, citing lack of new work opportunities amid the oil price rout and COVID-19 pandemic effects.
There has been a sharp decline in the tender activities, with few new contract opportunities and fewer projects to bid for, the company said.
Due to the sharp decline in the oil price, oil companies have reduced their exploration activity substantially and some have also started to reduce existing production, it said.
"It must be expected that the Group will continue to experience adverse consequences of the sharp decline in the oil price, and the responses of the oil companies to such decline," DOF said last week.