Prospects look positive for the Faroe Islands International Ship Register (FAS) following a successful voluntary flag state audit by the IMO—with anticipation for the Faroese flag to be included in the Paris MoU White List from 2012.
It’s been 20 years since the Faroese first floated their own open ship registry, known as FAS (Føroyska Altjóða Skipaskráin), or the Faroe Islands International Ship Register. Back in 1992 this was a legislative provision intended to convince a few merchant vessels not to flag out over fiscal and related issues. After leading a low key life for about a decade-and-a-half, the FAS was recently repurposed and refitted to attract international merchant fleets to ‘Merkið’ (‘the Banner’—the Faroese flag).
Shipping thousands of tonnes of fresh seafood in an unbroken refrigeration chain to the UK, across the Atlantic, and to the Far East, the Fresh Link freight service connects the Faroes to the world via Scotland and London Heathrow.
Since founded in 2008, freight carrier Fresh Link has confirmed that the Faroe Islands’ old sea connection to northern Scotland represents a vital trade route and can indeed be economically viable for those who operate it. Unexpectedly, the service has also contributed to dramatic growth in the export of Faroese fresh seafood by air to the United States as well as to China and other markets in the Far East.
Technically, this has all been possible for decades, yet the option of using air freight for transport in large quantities has only recently been utilized by Faroese seafood exporters.
“It all started with the vacuum left by Chile’s salmon exporters a few years back when the spread of ISA [infectious salmon anemia] caused serious disruptions as producers were forced to shut down operations temporarily,” said Fresh Link managing director Rógvi Hansen.
Following a year without drilling action offshore the Faroes, activities resume in June when the Brugdan II prospect is to be spudded in a campaign expected to last for several months—with busy times for Atlantic Supply Base.
For drilling activities related to offshore oil and gas exploration on the Faroese continental shelf, the Port of Runavík has a crucial part to play. Ever since the first prospect was drilled more than a decade ago, the port’s function as a traffic hub for all transports related to the upstream oil and gas industry has been handled by Atlantic Supply Base (ASB).
ASB has acted as the supply base of choice for all seven drilling campaigns which have been completed to date in the Faroe Islands—with such compelling results as to prompt words of praise from the company’s clients.
Supply Service is to take delivery this year of its third and fourth new offshore support vessels to establish itself as a trusted provider in oil and gas field services—to the tune of a 1.2 billion nok (157 million eur) investment.
It took Supply Service only four years to order and receive four new-build, state-of-the-art platform supply vessels from Norway’s Havyard at an average price of more than 300 million nok (39m eur) per vessel. That’s a major investment, in fact the largest ever in the Faroese shipping business if counted as one single investment.
With the first vessel received in 2009, the second in 2011, the third in March 2012, and fourth set for delivery in the summer, Supply Service has maintained a stable operation with an eye on establishing itself as a trusted and preferred oil and gas service provider.
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I’m proud to present the 2012 edition of the Faroe Business Report—The International Review of Faroe Islands Industry and Trade. The fact that this is the seventh volume in this annual series gives, in my view, a clear indication of the success of this project. It has indeed been a journey into the unknown—no other publication has ventured into an editorial mission of the same kind, creating a bridge of communication between the Faroese business community and an international readership consisting largely of businesspeople with existing or potential interests in the Faroe Islands. I wholeheartedly recommend that you read some of the inspiring business stories found in this publication.
Búi Tyril
Publisher, Editor in Chief
Fyri bæði fyritøkur og stovnar er umráðandi at samskifta væl við umheimin, soleiðis at góð og hóskandi kunning altíð er tøk í rættari tíð. Hesin samskiftis tørvur ger seg altíð galdandi, eisini tá vit ikki beinleiðis síggja hann.
Hetta kemst millum annað av at broytingar við meir ella minni avgerandi ávirkan á virksemið hjá fyritøkuni ella stovninum kunnu henda óvæntað skjótt.