Stock Exchange Announcement: Northern Norwegian Shipping Company Builds Third Offshore Vessel
The Northern Norwegian shipping company Agalas is constructing another methanol-powered vessel for the offshore industry. At the same time, the company has signed a long-term five year charter party contract worth over one billion NOK.
“This is a new milestone for Agalas and aligns with our long-term strategy. With three vessels under construction, all secured with long-term lease contracts, the offshore industry in Northern Norway is truly taking shape,” says Mats Nygaard Johnsen, CEO of Agalas.
On Thursday morning, the news of the new vessel and its associated lease contract was announced through stock exchange releases from Eidesvik Offshore and Reach Subsea. The Western Norway-based shipping company Eidesvik will co-own the vessel together with Reach Subsea, which will also be the charterer.
Agalas placed its first newbuild order in December 2022, followed by a second vessel in the summer of 2023. Now, with three vessels under construction, the company has established key partnerships with experienced industry players such as Reach Subsea and Eidesvik.
“Collaboration with industry-leading players ensures quality in every aspect of delivery,” says Nygaard Johnsen.
A Long Process
Developing a newbuild is a demanding process, and we have worked hard over the past year to secure this agreement. This involved close technical collaboration with Reach Subsea and Eidesvik, as well as commercial negotiations to secure a long-term term charter contract that guarantees stable income after delivery—and, most importantly, long-term financing. We are proud to have developed this project from Northern Norway,” says Nygaard Johnsen.
The new vessel is a sister ship to the two other vessels under construction and will be an industry-leading ship with advanced functionality, green technology, and highly skilled personnel.
Partnerships
Marius Ytterstad, Chairman of Agalas.
“The development of Agalas has been an exciting journey over the past two and a half years. We identified opportunities in the offshore market for vessels in 2022. Since then, the market has developed positively, and through hard work, we have realized these plans—now with our third vessel under construction, all secured with long-term lease contracts,” says Chairman Marius Ytterstad.
The expertise and capital from the “Northern Norwegian cluster” in vessel development, construction, and operation have been crucial to our success. Our partnership with NSK Ship Design and their newbuild division has played a key role in the realization of these newbuilds.
The latest newbuild has an estimated construction cost of over one billion NOK and is financed by a bank syndicate led by Sparebank 1 Nord-Norge, with Eksfin and SpareBank 1 Midt-Norge as participants.
“Support from a solid Northern Norwegian bank has been crucial for the development of Agalas and the realization of our newbuild projects,” emphasizes Ytterstad.
Signing of the agreement between Agalas, Reach, and Eidesvik. From left: Helga Cotgrove (CEO, Eidesvik), Birgitte Wendelbo Johansen (CFO, Reach Subsea), Mats Nygaard Johnsen (CEO, Agalas), Jostein Arendal (CEO, Reach Subsea).
The Road Ahead
With three vessels under construction, the first of which will be delivered in 2025, Agalas is entering an exciting period.
“We now have three ships under construction with a total value of over three billion NOK. This is a significant responsibility, and we will closely follow the processes. At the same time, we have secured long-term lease contracts for all three vessels, providing us with security and the opportunity to explore new projects. Our options for additional vessels give us a strategic advantage in the market,” says Nygaard Johnsen.
“We will work hard to realize our projects and ensure they are delivered on time and operate efficiently. We do this with a foundation in Northern Norwegian capital and expertise and in close collaboration with our partners,” he concludes.
About the Vessel
The new vessel is designed by NSK Ship Design in Harstad and will be a Construction Support Vessel (CSV) with a length of 99.9 meters and a width of 21 meters. The ship will be equipped with a 150-ton wave-compensated crane and have a deck area of 900 square meters. It will be a sister ship to Agalas’ other vessels. The ship is being built at Sefine Shipyard in Istanbul and is scheduled for delivery in Q1 2027.
Agalas is a Norwegian shipping company founded in 2022 with headquarters in Harstad. The company specializes in developing modern, environmentally friendly vessels for the green industry and customers worldwide. Agalas has a clear growth strategy within offshore support vessels and is owned by strong Northern Norwegian players from the aquaculture industry.
About Reach Subsea
Reach Subsea is a leading provider of subsea services and technology. The company delivers high-quality solutions for customers needing seabed data and services. With operations in Norway, the USA, the UK, Cyprus, Singapore, Trinidad, Brazil, and Australia, the company aims to be the preferred partner and total supplier of subsea services. In 2024, Reach had a revenue of 2.7 billion NOK.
About Eidesvik Offshore
Eidesvik Offshore ASA owns and operates a global fleet of specialized vessels, offering services to the supply, subsea, and offshore wind markets. The company specializes in advanced offshore vessels and operates globally with a focus on environmental sustainability and high operational quality. Eidesvik has its headquarters in Bømlo, between Haugesund and Bergen.
