The ship operated as a ferry between Helsinki, Copenhagen and Hull (in England) with passengers and cargo.

On 19 December 1930 at 10 pm, Oberon collided in dense fog with S/S Arcturus, which was from the same shipping company and was en route from Hanko to Hull. Oberon was severely damaged and sank in three minutes. Arcturus managed to pick up 39 people, of whom three were dead. 42 people died when the ship sank.

In 1931, the wreck was located by the salvage steamer Savator, but the wreck was considered too deep to be salvaged, except for the 74 three-gallons of butter that were salvaged.

The wreck rests on the starboard side. Big propeller. From the superstructure and 15 m out there is a lot of stuff that has fallen out on the sea floor The bridge is very damaged. Diving around the bridge is well worth several dives. In the salons below and aft of the bridg there is plenty of space and opportunities to get in. On the aft deck there is a deckhouse with a galley and a couple of cabins. As well as rooms with tools etc.