Singapore's Sinwa has entered into an agreement to sell its 2009-built offshore support vessel at a price of $5.5m to Go Offshore.

The anchor handling tug supply (AHTS) vessel Go Emerald is currently on bareboat charter to Go Offshore.

Go Offshore, a subsidiary of Singapore's Otto Marine, has an option to purchase the vessel at any time during the charter period.

According to Sinwa, the total consideration of $5.5m comprises of $4.2m for the vessel and the balance of $1.3m for early termination and settlement of the charter hire.

The expected time of delivery of the China-built, 2,800-bhp AHTS vessel to Go Offshore is 19 March.

“The directors are of the view that the proposed disposal is in the best interests of the company and its shareholders and in line with the group's strategy to divest its vessels and to expand its core business in marine, offshore supplies and logistics,” Sinwa announced.

The proceeds from the disposal are to be used to fund Sinwa's working capital, regional expansion and reduce its bank borrowings, the company said.