Supply Service

Supplying demand

Based in the Faroe Islands, Supply Service is a leading provider of maritime services.

Operating as a management company for several businesses within the family-owned Sjoborg Group, Supply Service has considerable experience in the management and operation of large vessels in the Faroes, the Norwegian Sea, Eastern Greenland, Newfoundland and Spitzbergen. The company currently has three state-of-the-art PSV vessels under construction, and is looking to enter them into the market with much success.

Managing director of Supply Service, Jens Meinhard Rasmussen, tells European Oil and Gas magazine more about the newbuilds: “We looked at the current state of the market and saw quite clearly that there was a lot of offshore vessels and PSVs already operating in the mid-size sector, but that there was a growing trend for the use of larger vessels with a deck capacity of around 1000 square metres. Our ships that are under construction sit somewhere between the mid and large sized markets, making them ideal for a broad range of applications and operations across the industry.

“They have an excellent loading capacity thanks to an 800 square metre deck, and are double-hulled, making them very environmentally friendly,” he continues. “If you look at the PSV market as a whole it is vast, but importantly, the newest and most environmentally friendly vessels are the ones that are becoming increasingly popular. Therefore, we are very confident that we will get them into the market, and operation as soon as they are delivered.”

This confidence is reflected by the manner in which Supply Service, which is still a relatively young company, has grown. The business commenced operations in the Faroe region in 2000, with the vision of being the preferred offshore ship owner amongst charterers, employees and business partners. To this end, comfortable growth and expansion has been based around the company’s continuing mission – to provide, own and manage offshore supply services for international offshore oil and gas production, whilst focussing on the high-end PSV market with new, environmentally friendly vessels that comply with current, and future market requirements.

Jens outlines the company’s background: “In 2000 our mother company started operations with a drilling company in the Faroe Islands, and it became apparent that this was a very interesting, and potentially successful business direction to go in. From here we began to expand the business.”

This growth was helped by the abundance of skilled and experienced personnel available to the company, a fact that goes against the current trends in the rest of the industry.

“We are in the very fortunate position that the Faroe Islands offers large access to a wide base of crew and other personnel skilled in a number of key areas. But more than this, we already have measures in place to educate and train our crews of the future. For example, we have an excellent maritime academy here that trains a lot of ships masters and engineers every year. Also, the superior quality of our vessels has been a big factor in getting the right crew – it is well known in this industry that if you want the best people to operate on board then you have to provide them with the best ships and facilities.”

The success of Supply Service has already been noted throughout the industry, with one of the company’s vessels, although yet to be delivered, already being awarded a considerable contract. Jens explains: “All three ships are on order, and we have already been awarded a three year contract with two oil companies for the first of the vessels. The contract, which also has the option of an additional year, involves the PSV operating in Norway and supplying an oil platform operated by a Norwegian oil company. Alongside this we are trying to secure the other two vessels on contracts, but they are still a long way from being delivered as yet.”

As mentioned earlier, one of the key strengths of the vessels under construction is their environmentally friendly design. Alongside a safe, double-hulled design the ships will feature catalysts for the reduction of NOX emissions, making them suitable for current, and future environmental requirements. To this end, Supply Service is certified to the environmental management system standard ISO 14001 – the first ever company on the Faroe Islands certified to such standards.

Looking ahead, Jens is confident that the market conditions will remain favourable, meaning that the vessels are sure to find work easily. “Of course we believe in the market, otherwise we would not have entered the business to start with. Despite the current financial situation, we can only see the market continuing to offer lots of opportunities, particularly as the demand for offshore service vessels is still very high. However, there are a lot of vessels under construction at the moment, which could have an adverse affect, but as long as rigs and platforms continue to be built they will always need vessels to service them.

“Our main strategy for the coming years is to get these vessels delivered, and into operation successfully, whilst building our reputation and expanding in the market. Beyond this we are looking at expanding into other market sectors and new areas, but for now we are solidly focussed on being a leading player in the PSV market,” he concludes.

Supply Service

Services Offshore supply services