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National
Exclusive by defence correspondent Andrew Greene

Defence spends $110 million on second-hand commercial vessel for undersea military operations

Norwegian-built Normand Jarl is set to arrive later this year and will be renamed Australian Defence Vessel (ADV) Guidance. (Supplied: Solstad Offshore)

A 10-year-old Norwegian ship bought by Australia for $110 million will soon be converted into a defence force vessel, dedicated to supporting future undersea military operations.

The ABC can reveal inspections and certifications are being carried out on the 107-metre vessel in Singapore, before it is due to arrive later this year and be renamed the Australian Defence Vessel (ADV) Guidance.

ADV Guidance's primary role will be to support undersea surveillance systems trials, including the ability to deploy undersea crewed and uncrewed vehicles, as well as robotic and autonomous systems.

Defence Department deputy secretary for naval shipbuilding and sustainment Tony Dalton said the new acquisition would be used to further advance a range of trials and activities involving new technologies in the undersea domain.

"Defence is demonstrating its commitment to providing a cutting-edge capability, which will expand the ADF's ability to deliver multiple undersea project outcomes," Mr Dalton said.

"ADV Guidance will be instrumental in developing and testing robotic and autonomous underwater systems, ensuring Defence can compete and succeed in a wide variety of complex, undersea environments".

Secret approval for the purchase of a commercial vessel to be converted into an Undersea Support Vessel was made by the Morrison government in March last year, but the sale was completed in late 2022, well after the election.

On December 12, Norwegian company Solstad Offshore announced the sale of its 2013-built Construction Support Vessel (CSV) Normand Jarl to a "buyer outside the offshore industry" for approximately $60 million.

The following day, Defence awarded Teekay Shipping Australia a contract worth $100,000 for "due diligence inspections" of an unspecified vessel that has since been renamed "Guidance".

Its purchase came after Defence last year bought another second-hand Norwegian offshore ship, called Horizon Star, and renamed it the Australian Defence Vessel (ADV) Reliant, for Pacific Ocean operations.

"The Albanese Government is determined to build the capability the Australian Defence Force needs for the circumstances we face," Defence Industry Minister Pat Conroy said.

Defence Industry Minister Pat Conroy says the federal government is determined to build the capability the Australian Defence Force needs. (ABC News)

"ADV Guidance will provide a platform to support the development, trialling and delivery of undersea systems, including navy's robotic and autonomous undersea capability, and support efforts under AUKUS."

However, members of Australia's defence industry are dismayed at the purchase of another second-hand foreign ship instead of having a new one constructed by local workers.

"The purchase of a second-hand vessel as an underseas support vessel seems at odds with the requirement to develop a sovereign national naval shipbuilding Industry," Australian Defence & Industry Network's Brent Clark said.

"Defence has now acquired vessels that could of — and should have — been built in Australian shipyards, the construction and fit-out being done by an Australian workforce and utilising an Australian supply chain.

"Whenever these types of decisions are made, there can be no ability to grow an Australian workforce, increase the capability of Australian workers and develop and sustain a sovereign naval shipbuilding industry."

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