The company reached a preliminary agreement with German ER Offshore on the purchase of two vessels worth at least $21 million.

The deal envisages a purchase of E.R.Stavanger and E.R. Aalesund supply vessels for offshore oil platforms.

The company said that the talks on concluding the deal are currently underway, while certain details are to be worked out.

The vessels are currently in the idle state, while a number of operations, including the delivery of vessels to the Caspian Sea, adjusting of mechanisms will be implemented, should the sides reach the agreement.

Moreover, mandatory repair of engines will be implemented in accordance with the navigable register. Additionally, work on disassembling of bridge and masts, as well as marking of electric, communication and other lines will be implemented to provide unimpeded delivery of vessels to the Caspian Sea through Volga-Don Canal.

The company said that activation of vessels is a quite difficult process, which requires a big amount of financial means, mentioning that the vessels are expected to be kept in Turkey within the next 4 months given the fact that the Canal freezes in winter. The company earlier managed to cut the cost of vessels as a result of negotiations, but the worth of each vessel is expected to stand at least at $ 10.5 million given the work to be implemented. The company will operate the vessels both in the territory of the country and outside the Caspian Sea.

Azerbaijan highly prioritizes the development of the shipping industry, while the State Program on Development of Shipping in Azerbaijan for 2016-2020 envisages a number of measures promote the sphere.

The program covers renewal of the transport and specialized offshore fleet, expansion of activities, increase of the volume of freight transportation through the territory of the country, modernization of shipbuilding and maintenance yards and improvement of the academic base of marine education, as well as implementation of certain measures to turn the country into major transport-logistics hub of international importance.

Caspian Marine Services started its operations in Azerbaijan in the early 2006. With vessels strategically deployed offshore in the Caspian Sea, the company provides a broad range of offshore support services in oil and gas exploration and production industry. The company has a strategic alliance with Azerbaijan’s State Oil Company (SOCAR) and Azerbaijan Caspian Shipping Company (ACSC).

Source: Azer News