R-R inks service agreement with Siem Offshore and Subsea 7

JULY 18, 2017 — Siem Offshore and Subsea 7 have signed a joint three-year service agreement with Rolls-Royce. The agreement covers a total of 74 offshore vessels. This is the first agreement the two Siem-owned companies have signed with the same service provider.

Under the agreement, Rolls-Royce will maintain and service all of the equipment it has delivered to the two companies' offshore vessels.

Steinar Sandberg, Siem Group, Head of Group Procurement, said: "Naturally, we believe we can save money by jointly entering into this kind of service agreement. We have a modern and technically advanced fleet that requires good follow-up throughout the vessels' working lives."

Knut Hovland, Rolls-Royce, Director, Marine Services, said: "We have delivered equipment to around a quarter of the world's registered fleet. As a result, we also have service assignments and long-term agreements with a large number of shipowners globally. We also have a network of service stations at 34 locations world-wide, so we can be close by whenever equipment needs servicing or repair."

Currently, aftermarket services account for roughly 40 per cent of Rolls-Royce Marine's revenues. Long-term agreements account for around a quarter of this. The company is now exploring digital opportunities to provide shi owners with a growing range of new and more effective service solutions. These include new types of services based on surveillance of ships' operations and equipment from control centers located on shore.

Rolls-Royce recently signed its first "power-by-the-hour" agreement with the Norwegian logistics and cargo company Nor Lines.

"We are particularly pleased to sign new service agreements in these current times. We have obviously been affected by the fact that many vessels in the offshore market are still laid up, and it will be interesting to see what impact this will have on the service market going forward," said Mr. Hovland.

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