Nordic American Offshore Ltd. (NAO) has taken delivery of all six PSV vessels.

Nordic American Offshore Ltd. (NAO) has taken delivery of all six PSV vessels.

Nordic American Tankers (NAT) announced today that NAO yesterday took delivery of the last of the six recently built Platform Supply Vessels (PSVs) from the Ulstein Group of Norway. NAO is fully operational. NAT is the sponsor of NAO, owning 26% of the share capital in NAO. A subsidiary of NAT is the manager of NAO.

Three vessels were delivered from the seller to NAO in December 2013. The last three were delivered in January 2014. The vessels were delivered from the yard to the seller between January 2012 and September 2013.

The PSV vessels are on contracts to major energy companies with an average duration (including options) of a little over two years with rates between $25,000 and $29,000 per day per vessel. NAO is expected to have a cash breakeven rate of around $12,000 per day per vessel.

NAT participated in the private placement of NAO shares in November 2013 with an investment of $65 million, which was financed by a follow-on equity offering in NAT at the same time.