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NAO delays PSV pair

NAO delays PSV pair
Nordic American Offshore (NAO) has delayed the delivery of two Platform Supply Vessels (PSVs) on order at Vard Aukra.

The two ships, which were ordered on 23 June 2014 using proceeds from the company's IPO, will now be delivered in Q1 2016 instead of mid-2015.

The announcement comes as the North Sea offshore market suffers under a reduction in demand for vessels due to the lower price of oil, and an increase in vessel supply from a large orderbook. Oversupply has also been worsened by the return of some ships from the Russian market, as political tension remains between the EU and Russia over Ukraine.

"Five vessels in our eight vessel fleet are currently employed on contracts, up from three last quarter," executive chairman Herbjørn Hansson wrote in a letter to shareholders on 17 March 2015. "Three of our vessels are operating in the spot market. We have achieved in excess of 80% utilization which is a sound performance in the current market conditions."