Charter Party Ends Four Years Early for Solstad Offshore Vessel

September 18, 2020

Normand Maximus - Credit: Solstad
Normand Maximus - Credit: Solstad

Italian oilfield services company Saipem has terminated the charter party for Solstad Offshore's Normand Maximus offshore construction vessel four years early.

Norwegian offshore vessel owner Solstad said Friday that Normand Maximus Operations Ltd, its subsidiary which owns the vessel, had received a notice of early termination of the charter from Saipem's subsidiary Saipem (Portugal) Comercio Maritimo LDA.

Solstad said that the terms of the contract included early termination provisions. 

The original charter period for the 177.9 meters long vessel started in 2016 and was to be eight years long.

"The early termination means that the charterers terminate the charter after approximately four years of chartering,"  Solstad said.

The estimated back-log lost following the termination is approximately USD 200 million, Solstad said, adding that the company will be entitled to an early termination fee of approximately USD 45 million following the termination.

The vessel was built by Vard in Romania and Norway. At the time of delivery to Saipem, it was equipped with a 900-ton active heave compensated offshore crane and a 550-ton top tension vertical lay-system, for the installation of large diameter flexible pipes in ultra-deepwater environments.

The vessel is currently located in Schiedam, the Netherlands.

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