Deep Sea Supply establishing business in Brazil
Deep Sea Supply has entered into a contract to build a Platform Supply Vessel (PSV) at STX Brazil Offshore SA in Rio. In Brazil, the demand for offshore supply vessels is large and expected to grow considerably in the years to come. Offshore supply vessels built in Brazil are given priority ahead of international vessels when tendering for long term employment in Brazil. This should provide good opportunities for securing long term charters for the new vessel.The vessel is a large Platform Supply Vessel of 4,700 dwt of design STX Europe design PSV 09 CD built for Brazilian pre-salt exploration challenges. The STX Europe yard in Rio is one of the few yards in Brazil with a proven track record in building offshore supply vessels, and Deep Sea Supply has secured the earliest available delivery slot for this type of vessel at the yard.
A further advantage to Deep Sea Supply in constructing offshore supply vessels in Brazil is the access to the local Brazilian market for 3-4 of its existing international vessels during construction period of the vessel. Such imported vessels can compete on local terms, commencing second half 2010.
Deep Sea Supply has as a consequence of the above mentioned newbuilding contract and market opportunities, established a Brazilian subsidiary, Deep Sea Supply Navegação Marítima Ltda. The company plans to gradually increase its presence in the Brazilian market from second half of 2010 with an ambition to have an operation covering 6-8 ships in Brazil, including ships from its international fleet.
The newbuild is scheduled for delivery to Deep Sea Supply early 2012 and will be financed with a combination of cash and a Brazilian financing scheme.
This contract brings Deep Sea Supply's fleet to a total of 29 Offshore Supply vessels, including newbuildings.
Deep Sea Supply's Management's CEO, Mr. Odd Brevik says in a comment to the deal:
"We are very pleased with having reached an agreement with STX for this early delivery slot that will give us a head start in one of the most interesting markets for offshore supply vessels. We are confident that increased presence in this market will give opportunities for long term employment which will benefit our fleet utilization and cash flow in the years to come."
