APRIL 2016 HAS THE TIDE TURNED? MORE POSITIVITY RETURNING TO THE MARKET

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1 APRIL 2016 HAS THE TIDE TURNED? MORE POSITIVITY RETURNING TO THE MARKET

2 CONTENTS 3 OSV MARKET ROUND-UP 6 OSV AVAILABILITY, RATES & UTILISATION - NORTH SEA 7 MONTHLY OSV SPOT RATES - NORTH SEA 8 FEATURE VESSEL 9 OSV NEWBUILDINGS, CONVERSIONS, SALE & PURCHASE 11 SUBSEA 14 RENEWABLES 15 RIGS 16 CONUNDRUM CORNER & DUTY PHONES ABOUT SEABROKERS GROUP The Seabrokers Group was established in We provide a unique and varied range of services to clients. The Seabrokers Group has an experienced workforce within Shipbroking, Real Estate, Facilities Management, Construction, Cranes & Transportation, Sea Surveillance and Safe Lifting Operations. Our head office is situated in Stavanger, but we also have offices in Aberdeen, Bergen, Rio de Janeiro and Singapore. The Seabrokers Group is different and we are proud of this fact. Our information, experience and knowledge provide us with the ability to perform in our diverse business areas. Seabrokers Chartering AS and Seabrokers Ltd are certified by DNV GL in line with Management System Standard ISO 9001:2008. SHIPBROKING REAL ESTATE Production and Administration: Seabrokers Ltd, Aberdeen For your free copy of Seabreeze, chartering@seabrokers.co.uk SECURALIFT SEA SURVEILLANCE YACHTING FACILITY MANAGEMENT ENTREPRENEUR CRANES & TRANSPORTATION The Seabreeze Monthly Market Report is distributed worldwide through our offices in Aberdeen, Stavanger, Singapore and Rio de Janeiro. Seabrokers Group 2015 OUR OFFICES: STAVANGER BERGEN SKIEN ABERDEEN RIO DE JANEIRO SINGAPORE

3 OSV MARKET ROUND-UP TOUGH MARKET FOR NORTH SEA OWNERS Those owners who have vessels plying their trade in the North Sea spot market endured yet another difficult month in April. There was a brief spell in the middle of the month where the AHTS market tightened enough to allow owners to apply upward pressure on rates; there were around a dozen fixtures north of GBP 30,000 per day. The same cannot be said for the PSV market, with the majority of fixtures remaining below GBP 5,000. Nevertheless, any concerns over the state of the market have been completely overshadowed by the tragic helicopter crash which resulted in the loss of 13 lives offshore Norway on April 29th. From a market perspective, previous incidents of this nature have led to rate spikes when there has been an influx of vessel requirements for passenger transport due to the grounding of helicopters. It is too early to say whether a similar scenario may emerge on this occasion, however it is a situation that vessel owners will be monitoring carefully. Regardless, thoughts of this nature pale into insignificance when we consider recent events. The thoughts and prayers of all at Seabrokers are with the family, friends and colleagues of those who so tragically lost their lives on April 29th. BIGGEST MONTHLY OIL GAIN IN 7 YEARS The last edition of Seabreeze raised the notion that there was a changing dynamic within the oil & gas market, with a bit of positivity returning to the sector. While it s important not to get ahead of ourselves (nobody needs any reminder of how dire the market has been over the last year-and-a-half), there is definitely some substance to the idea that the worst may be behind us. Brent Crude prices ended April north of USD 48 per barrel, representing the biggest monthly gain in seven years. While this is still a world away from the USD 100+ the market had become accustomed to, it is a darn sight better than the sub USD 30 a barrel we experienced in January. ATLANTIC OFFSHORE ATTRACTS BUYER Atlantic Offshore AS has entered into an agreement to secure its continued operation and the fulfilment of its contractual obligations to customers and employees. The transaction consideration is NOK 16.9 million (USD 2.1 million), based on multiple valuations made by external experts and third party verifications. Under the terms of the agreement, Atlantic Offshore AS is selling most of its operations and subsidiaries to Aegopodium AS, a newly established company owned 100% by H. Øgreid & Sønner AS. The main secured Recent forecasts from the International Energy Agency projected the view that oil prices are expected to grow throughout 2016 and into This was backed up by the organisation s Executive Director (Fatih Birol), with the projection that non-opec supply is expected to decline by some 700,000 barrels per day this year (the biggest drop in the last 25 years), while global demand growth is in a hectic pace, led by India, China and other emerging countries. Any significant recovery in the OSV market will be a prolonged affair due to the scale of the oversupply in the sector, but at least there are now some solid indicators of a changing tide in the market dynamics. creditors of the Group are parties to the agreement. The Agreement involves the transfer of shares in Atlantic Offshore Gamma AS, Atlantic Offshore Alpha AS, Atlantic Offshore Epsilon AS, Atlantic Offshore Eta AS, Atlantic Offshore Zeta AS, Atlantic Offshore Management AS and Atlantic Offshore Crew AS. Furthermore, Aegopodium has acquired certain assets and personnel in Atlantic Offshore Rescue Ltd, and the shares in Atlantic Offshore Crewing Services Ltd and Atlantic Offshore Scotland Ltd. SEABREEZE 3

4 OSV MARKET ROUND-UP NORTH SEA AND SOUTH AMERICA FIXTURES FOR DOF DOF Rederi AS has secured term fixtures for two of its PSVs in the North Sea, and contract extensions for two of its AHTS vessels in South America. In the North Sea, Nexen Petroleum UK has awarded a long-term charter to Skandi Marstein that will commence in May and keep the vessel firmly contracted until the end of DOF also picked up a three-month plus options contract for Skandi Gamma with Maersk Oil North Sea UK Ltd. This charter commenced in April. Meanwhile, in South America, Total Austral has extended its charters with AHTS vessels Skandi Møgster and Skandi Saigon (pictured c/o D Dodds). The vessels are now contracted to Total offshore Argentina until mid-october Both vessels have been working for Total Austral offshore Argentina since WOODSIDE CHARTERS DUAL FUEL SIEM NEWBUILD ASCO SELECTS ISLAND CHAMPION Island Offshore has received a contract from ASCO Marine Ltd for a two-year charter of its large PSV Island Champion. The contract commenced in April, keeping the vessel committed in the UK sector until the second quarter of Woodside has awarded a contract to Siem Offshore for the long-term charter of one of Siem s newbuild dual-fuel PSVs offshore Australia. Siem has three PSVs being built to the VS4411 DF design at Remontowa Shipyard in Poland (Siem Harmony, Melody and Rhapsody). All three are due to be completed The Island Champion is a UT776E PSV that was delivered in She has a length of 93.0m, breadth of 20.0m and a deck area of 1,008m². The vessel has gone some 3,300 days without experiencing any lost time incidents. this year, and will be capable of operating on either LNG or MDO. One of these will be chartered by Woodside for a five-year plus two one-year options contract starting early in This will be the first LNG-powered marine support vessel to operate offshore Australia. 4 SEABREEZE

5 OSV MARKET ROUND-UP MULTIPLE CONTRACTS FOR DESS Deep Sea Supply (DESS) has picked up a range of contracts for PSVs in the North Sea, Asia and South America. In the North Sea, Statoil (U.K.) Ltd awarded a two-year plus three one-year options charter to the Sea Falcon (pictured). Operations are due to start in the fourth quarter of 2016, coinciding with Statoil s commencement of a drilling campaign with newbuild jackup Noble Lloyd Noble at the Mariner field. The Sea Falcon has been in layup since mid Elsewhere, the Sea Frost and Sea Supra were awarded 60 and 90-day contracts (with 120 days options) for an international oil company in Asia. The vessels are being mobilised to eastern Russia. Finally, the Sea Titus has commenced a four-month plus two months options contract, understood to be with Petronas Carigali for work offshore Suriname. PETERSON EXTENDS PSV CHARTERS Peterson Den Helder, the SNS (Southern North Sea) Pool Manager, has extended its contracts with three PSVs: VOS Prelude, Dina Merkur (pictured) and Far Splendour. The VOS Prelude, owned by Vroon, is now committed until August 2016; the Dina Merkur, owned by Myklebusthaug, is now contracted until October 2016; and the Far Splendour, owned by Farstad, is committed until November The VOS Prelude is a UT 755 LN PSV, the Dina Merkur a UT 755 LC, and the Far Splendour a P106 vessel. JX NIPPON PICKS UP EDDA FRENDE JX Nippon Oil & Gas has selected an Østensjø Rederi PSV to support its drilling campaign west of Shetland in the UK sector. Odfjell semisubmersible rig Deepsea Stavanger has been contracted to drill an exploration well at the Loanan prospect, and Østensjø PSV Edda Frende will provide support. The well is expected to take around days to drill, with operations to commence in May. The Edda Frende (pictured c/o V Gibson) is an ST216 PSV delivered in She has a deck area of 910m². SEABREEZE 5

6 OSV RATES & UTILISATION APRIL DAILY NORTH SEA OSV AVAILABILITY RATES & UTILISATION PSV 2016 PSV 2015 AHTS 2016 AHTS NORTH SEA SPOT AVERAGE UTILISATION APRIL 2016 TYPE APR 2016 MAR 2016 FEB 2016 JAN 2016 DEC 2015 NOV 2015 MED PSV 83% 70% 72% 65% 78% 77% LARGE PSV 81% 67% 80% 73% 85% 78% MED AHTS 37% 42% 29% 45% 62% 33% LARGE AHTS 53% 62% 55% 57% 69% 67% NORTH SEA AVERAGE RATES APRIL 2016 CATEGORY AVERAGE RATE APRIL 2016 AVERAGE RATE APRIL 2015 % CHANGE MINIMUM MAXIMUM SUPPLY DUTIES PSVS < 900M 2 3,992 2, % 2,500 6,000 SUPPLY DUTIES PSVS > 900M 2 4,308 3, % 2,549 7,648 AHTS DUTIES AHTS < 18,000 BHP 10,983 9, % 10,000 12,483 AHTS DUTIES AHTS > 18,000 BHP 24,405 13, % 9,000 63,737 SPOT MARKET ARRIVALS & DEPARTURES APRIL 2016 ARRIVALS - NORTH SEA SPOT A.H. VALLETTA EX SOUTH AMERICA CARLO MAGNO EX RUSSIA OLYMPIC HERA EX CENTRAL AMERICA OLYMPIC TAURUS EX WEST AFRICA OLYMPIC ZEUS EX WEST AFRICA DEPARTURES - NORTH SEA SPOT CARLO MARTELLO SOUTH AMERICA * Vessels arriving in or departing from the North Sea term/layup market are not included here. 6 SEABREEZE

7 NORTH SEA AVERAGE SPOT RATES NORTH SEA AVERAGE SPOT MONTHLY RATES 40,000 10,000 PSVs All Cargo < 900m² Runs 30,000 7,500 20,000 5,000 10,000 2,500 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ,091 5,389 3,687 2,818 2,478 3,746 3,844 3,752 6,584 3,336 5,211 8, ,975 4,286 4,183 3, ,000 7,500 PSVs < > 900M² 900M2 900m² 5,000 2,500 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ,141 6,429 4,886 3,699 2,921 4,455 4,610 5,126 5,930 3,185 5,340 8, ,867 4,659 4,104 4, ,000 35,000 AHTS < 18,000 bhp 30,000 PSVs > 900M² 900M2 30,000 25,000 20,000 20,000 15,000 10,000 5,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ,541 10,497 15,578 9,332 13,101 19,513 10,783 8,156 5,929 5,148 6,714 30, ,294 23,823 16,000 10, ,000 40,000 AHTS Rig > Moves 18,000 bhp 30,000 20,000 10,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ,863 16,171 18,184 13,617 19,461 25,046 15,113 12,176 8,809 6,035 9,983 45, ,234 27,884 16,607 24, ,000 30,000 Average Day Average Rates To Day Month Rates (April To 2016) Month (June 2013) 20,000 25,000 20,000 15,000 15,000 10,000 10,000 5,000 - PSVs < 900m² PSVs > 900m² AHTS < 18,000 bhp AHTS > 18,000 bhp ,902 4,242 4,767 5,339 13,617 11,867 19,343 17, ,596-4,483-17,051-25,291 - SEABREEZE 7

8 FEATURE VESSEL VOS SUGAR Vroon Offshore has held a christening ceremony for DP2 subsea support vessel VOS Sugar in IJmuiden, ahead of her first job in Germany. The 68m-long vessel (pictured above c/o R Coster) arrived in Amsterdam in early April for the installation of a 24t active heave-compensated crane. This followed her delivery from Fujian Southeast Shipbuilding in China. The SPS-coded vessel, with accommodation for 49 persons, will soon commence her maiden charter for NDE performing dive operations and maintenance work on foundations at Ocean Breeze s Bard 1 offshore wind farm. 8 SEABREEZE NDE will carry out a combined topside and subsea campaign. The VOS Sugar is mobilised with a remote underwater vehicle for subsea inspection and an active motion-compensated access system, facilitating safe access to windmill foundations for maintenance crew. Meanwhile, Vroon has also taken delivery of a second 68m-long SSV, the VOS Star. This unit is currently en route to the North Sea for further outfitting. VOS SUGAR SPECS: Overall Length: 68.04m Breadth: 14.95m Deck Area: 485m² Deadweight: 1,747.5t Deck Cargo: 350t Deck Strength: 7 t/m² Crane: 24t Accommodation: 49 persons

9 OSV NEWBUILDINGS, S&P DOF ANCHOR HANDLER DELIVERED IN BRAZIL Newbuild AHTS vessel Skandi Paraty has been delivered to Norskan Offshore, a subsidiary of DOF, by the Vard Niteroi Shipyard in Brazil. Built to the VARD 2 11 design, Skandi Paraty is a sister vessel to Skandi Urca and Skandi Angra, which were delivered in 2014 and Skandi Paraty has now gone on hire to Petrobras for a four-year contract with Petrobras. Skandi Paraty has a length of 93.5m, breadth of 22.0m and a deadweight of 4,981t. She has a bollard pull of 288t and accommodation for 46 persons. FEMCO EXPANDING AHTS FLEET FEMCO is making progress with its fleet expansion plans, with the recent launches of AHTS vessels Normann and Pomor following the March delivery of another AHTS vessel, Katun. The Normann and Pomor are sister vessels being built to the Havyard 843 Ice design. They were launched by the Cemre and Tersan Shiypards in Turkey, with final outfitting to take place in Norway; both are due for delivery in the fourth quarter of The Katun (pictured) is the third of four SPA 150 vessels built for FEMCO by Sinopacific in China. NEWBUILD AHTS VESSEL FOR SEVNOR SPP Shipbuilding in South Korea has sold a partially-built AHTS vessel to Sevnor. The vessel (pictured c/o Iappino), was initially ordered by Finarge Srl, part of the Rimorchiatori Riuniti Group. However, this order was cancelled last year. Following this latest development, the vessel has been mobilised to the Tersan Shipyard in Turkey, where construction will continue ahead of a scheduled delivery in the first half of The vessel is being built to the MOSS 919 design, with a length of 83m, breadth of 19.5m and a bollard pull of 220t. NEW PSV DELIVERED TO STARNAV Starnav Serviços Marítimos has accepted delivery of Starnav Cepheus from the Detroit Brasil Shipyard in Itajaí, Brazil. Starnav Cepheus (pictured c/o F Melo) is the second of three vessels that Starnav ordered following the fifth round of Petrobras fleet renewal process (Prorefam V). All three vessels have been contracted by Petrobras for eight-year firm charters, with the final vessel in the series (Starnav Cygnus) scheduled for delivery later this year. The vessels were built to the GPA 688 SC design, meeting Petrobras PSV 4500 criteria. SEABREEZE 9

10 OSV NEWBUILDINGS, S&P REM STADT SOLD TO INDIAN OWNERS Remøy Shipping has sold its 1996-built PSV Rem Stadt to Indian owners Tag Offshore. The UT 746-designed vessel had been laid up in Norway since November She has now been renamed TAG 20, and is currently en route to India, where she is expected to go on long-term charter to ONGC. TAG 20 was built by Brattvåg Skipsverft AS in Norway. She has a length of 87.8m, breadth of 18.8m and deck area of 1,015m². EIGHT VESSEL CONTRACTS FOR POSH; INCLUDES SIX NEWBUILDS PACC Offshore Service Holdings Ltd (POSH) has been awarded long-term charters for eight OSVs with a Middle Eastern national oil company. POSH will supply eight Anchor-Handling, Supply and Safety Standby vessels, of which six will be newbuilds. The vessels have been chartered for five years plus two one-year options, commencing progressively from December The contracts have a combined value of USD million. NEWBUILD PSV MARKETED FOR SALE AS EXPEDITION YACHT A newbuild PSV currently under construction is being marketed for sale by Edmiston & Company as a converted high-end expedition yacht with an asking price of USD 62 million. The 82m VARD 1-08 Kilkea is being created in collaboration with BISCAY SENTINEL LAUNCHED IN CHINA Newbuild ERRV Biscay Sentinel has been launched at the COSCO Dalian Shipyard in China. Biscay Sentinel is one of four sister vessels being built to the FOCAL 531 design, alongside the Bailey Sentinel, Malin Sentinel and Portland Sentinel. The units have staggered delivery dates through 2016 and They will be equipped to meet the requirements of the UK, Danish and Dutch standards. RECENT DELIVERIES OF NEWBUILD OSVS Shackleton Superyachts and Bannenberg & Rowell design, with the design scope to include a helicopter hangar, indoor and outdoor swimming pools, a submarine dock, an underwater observation room, cinemas and a 5-a-side football pitch. NAME TYPE/DESIGN OWNER/ MANAGER COMMITMENT KATUN SPA 150 AHTS FEMCO TBC SKANDI PARATY VARD 2 11 AHTS DOF SOUTH AMERICA STARNAV CEPHEUS GPA 688 SC PSV STARNAV SOUTH AMERICA 10 SEABREEZE

11 SUBSEA SUBSEA MARKET ROUND-UP In a bid to reduce costs and increase commerciality of potential resources in various environments including the Barents Sea, Statoil has presented two new subsea concepts. The first is called Cap-X and has been designed to cut costs, increase standardisation and efficiency, and to move more operations from rigs to construction vessels. Cap-X is a combination of existing and new technology which is a quarter of the size of subsea templates currently being used. The technology is built around the widely used suction anchor technology and consists of a steel suction anchor as the foundation with a fiberglass skirt and cap protecting the wellhead. Statoil remarks that Cap-X brings them closer to a plug and play solution on the seabed. The main structures of Cap-X can be produced in shorter periods and due to the decreased reliance on rigs for installation of the new systems, it is thought that the technology will also increase vessel utilisation. The technology is suited for horizontal drilling in shallow reservoirs, and increases the potential commerciality of resources in the Barents Sea. Early in April, Statoil also announced that it was supporting the development of snake-like swimming robots that should significantly cut costs related PETROBRAS LOOKS TO AKER FOR MAINTENANCE Aker Solutions has been awarded a contract by Petrobras to provide subsea services offshore Brazil for a duration of three years, with an option to extend for an additional three years. The contract has a value of USD 123 million for the fixed duration, and covers maintenance, to subsea IRM operations. Statoil and Kongsberg Maritime signed a deal with Eelume, to develop snake-like swimming robots after 10 years of research between Statoil, NTNU and Sintef. Statoil advises that the solution would allow the robots to carry out inspection and light intervention work on the seabed, reducing the use of vessels. The slender and flexible body allows it to access confined areas and it would be permanently installed on the seabed. The solution can be installed on both existing and new fields where typical jobs include visual inspection, cleaning, and adjusting valves and chokes. storage, supply of parts and technical assistance for all subsea equipment delivered by Aker to Petrobras. The service provider is opening a new subsea manufacturing plant in Curitiba, and upgrading its subsea services unit in Rio das Ostras to meet customer demand. CREDITORS TERMINATE HARKAND S DSV CHARTERS Harkand Finance Inc and its bond trustee Nordic Trustee have exercised their rights to terminate the internal bareboat charters for diving support vessels Harkand da Vinci and Harkand Atlantis. The move comes after Nordic Trustee notified Harkand last month that its bonds were in default. Nordic Trustee has for now not declared the bonds to be due for immediate payment. Harkand completed a USD 230 million issue of senior secured bonds in 2014, due in March Both vessels have recently mobilised from Leith, Scotland to Gibraltar. SEABREEZE 11

12 SUBSEA GREATSHIP RAGINI TO BE SOLD Greatship has signed a contract to sell its 2013-built IMR support vessel Greatship Ragini. The STS 909-designed vessel is expected to be delivered to the buyers in the second half of The Greatship Ragini, which has a length of 78 metres, a max lift of 50 tonnes & accommodation REACH SUBSEA GETS NEW SHAREHOLDERS Solstad Offshore and Østensjø Rederi have become shareholders in Reach Subsea after the restructuring of a charter agreement for OCV Normand Reach. Reach Subsea has obtained a significantly reduced charter rate, which takes effect from mid-june 2016, as part of a comprehensive restructuring. The original contract started during the second quarter of 2014 and had a firm period until BIBBY SECURES FIRST NORWEGIAN CAMPAIGN MAERSK TO CLOSE TYRA ASSETS? If an economically viable solution is not identified to continue operations at its Tyra East and Tyra West facilities, Maersk Oil has advised that it will shut down production on October 1, The Tyra facilities are approaching the end of their operational life due to a combination of more than 30 June The result of the restructuring will see Reach Subsea s debt reduced from NOK 140m to NOK 95m, with the company s working capital and cash position unaffected. As compensation for the reduced day rate, Solstad will receive a cash amount of NOK 56m as well as 5 million shares in Reach. It is understood that a similar deal has been struck with Østensjø Rederi. ConocoPhillips has awarded Bibby Offshore its first contract in Norway. The work scope includes project management, installation, engineering, procurement and subsea installation works related to maintenance activities on the years of production, and Maersk and its partners are looking at their options including a possible rebuild of the facilities. Tyra East and Tyra West are also the hub for a number of smaller facilities in the Tyra field, which will form part of the evaluation. This includes the neighbouring for 50 persons, is fixed on a three-year charter with two yearly options with Geoquip Marine in Saudi Arabia. The vessel is understood to be resuming a new work scope with Geoquip Marine in Southeast Asia. The OSCV 03-designed Normand Reach has a length of 121m, a max lift of 250t and accommodation for 100 persons. Norpipe oil pipeline. The MT-6022 MkII-designed Olympic Ares, which has a max lift of 250t and a length of 115m, will work on the campaign. The contract is due for completion during the third quarter of unmanned facility, Tyra Southeast, which was extended in The Tyra field is operated by Maersk Oil on behalf of the DUC, a partnership between A.P. Moller Maersk (31.2%), Shell (36.8%), Nordsøfonden (20%) and Chevron (12.0%). 12 SEABREEZE

13 SUBSEA REM TERMINATES CHARTER PARTY REM Offshore has terminated the charter party with Adams Offshore for the 2009-built IMR vessel Rem Poseidon. The termination is due to non-fulfilment of Adams Offshore s obligation. Rem Offshore has bank guarantees that secure payments through the Tullow Oil has awarded a contract to Jee to investigate the most appropriate options for the decommissioning of its Thames second quarter. Adams Offshore originally commenced a threeyear charter with the MT 6016 MkIII-designed vessel in The firm contract was expected to complete in November 2017, with two further six-month options available thereafter. The 94m-long vessel is equipped JEE TO CARRY OUT STUDY ON THAMES area assets. The contract covers the decommissioning of the Horne, Wren, Wissey, Orwell and Thurne fields in the Southern North Sea. Additionally, Jee will re-define the most appropriate decommissioning options for the subsea sections. The study, NORSKE SHELL CHARTERS ISLAND VESSELS Norske Shell has chartered in two Island Offshore vessels for work on the Draugen field. The DP2 IMR vessel Island Valiant will be the first unit to carry out work on the field. The 93m long vessel commenced IMR duties on three wells in April, lasting around two weeks. Meanwhile, well intervention vessel Island Constructor will carry out work in the summer. The 2008-built unit will carry out various assignments with different durations, including light well intervention and scale squeeze on two wells at Draugen. Additionally, in August/ with a 100t crane and accommodation for 68 persons. due to be completed over the next two months, will assess what infrastructure can be left in situ. In instances where removal is deemed necessary, Jee s assessment will include decommissioning options for the associated components such as mattresses and grout bags. September the vessel will return for two more jobs involving LWI and IMR work. EUROPEAN BUILT SUBSEA DELIVERIES (NEXT THREE MONTHS) SHIP OWNER NAME CHARTERER SHIP YARD TYPE DESIGN MONTH FTAI IES PIONEER IES ENERGY - KLEVEN VERFT IMR MT 6015 MAY ISLAND VENTURES II ISLAND VENTURE - ULSTEIN OCV SX165 MAY SUBSEA 7 SEVEN SUN PETROBRAS MERWEDE PIPELAY 550 MAY VOLSTAD GRAND CANYON III HELIX KLEVEN VERFT OCV ST-259-CD MAY SAPURAKENCANA SAPURA RUBI PETROBRAS MERWEDE PIPELAY IHC JUN SOLSTAD NORMAND MAXIMUS - VARD BRATTVAAG DERRICK PIPELAY VARD 319 JUN SIEM OFFSHORE SIEM HELIX 1 PETROBRAS FLENSBURGER WELL INT SALT 307 JUL TECHNIP DEEP EXPLORER - VARD LANGSTEN DSV VARD 3 06 JUL SEABREEZE 13

14 RENEWABLES CONSTRUCTION TO BEGIN ON BURBO BANK EXTENSION The offshore construction phase at the 258MW Burbo Bank Extension wind farm is due to commence in June This includes the installation of the export cable, turbine foundations and the offshore substation, while the offshore cable array is scheduled for installation in July. Meanwhile the first of the 32 MHI Vestas 8MW turbines is to be installed in September. The wind farm will be commissioned during the first quarter of EAST ANGLIA ONE PRICE CONFIRMED The Low Carbon Contracts Company confirmed that the Contract for Difference (CfD) milestones for East Anglia ONE have been fulfilled. This has resulted in the project being developed at a price of GBP 119/MWh, a cost reduction of 20% compared to other offshore wind MPI TO WORK ON DUDGEON Statoil has awarded MPI Workboats two long-term contracts for work at the Dudgeon Offshore Windfarm. MPI will deploy the MPI Napoleon and MPI Snowball workboats farms that have been built in the UK. ScottishPower Renewables advises that the cost reduction has been made possible by deciding to use advanced technology, such as larger and more efficient turbines. Construction is planned to start in 2017, with the first turbines installed by 2019, and the project is to provide crew-transfer support. MPI Napoleon has already commenced its 18-month contract, while MPI Snowball will start a three-year contract later in N-SEA TO PERFORM UXO ON GALLOPER N-Sea has secured a new contract on the Galloper Wind Farm, off the coast of Suffolk in the UK. The contractor will utilise the DP2 IRM vessel Siem N-Sea to carry out the UXO clearance contract, which began in April. The campaign has a duration expected to be fully operational during SCYLLA ARRIVES AT VEJA MATE Seajacks wind farm installation jackup Scylla arrived at the Veja Mate offshore wind farm in early April to commence installation of the 67 monopiles. Seajacks will also utilise the jack-up installation vessel Zaratan to install the transition pieces. Veja Mate will feature 67 Siemens 6MW turbines to be installed by Fred. Olsen Windcarrier, starting from early The EUR 1.9 billion project is scheduled to be fully operational in late 2017 or early The Dudgeon Offshore Wind Farm, located some 20 miles off the North Norfolk coast, will be developed and operated by Statoil and should start generating electricity in early of between three to six months. N-Sea s nearshore vessel Neptunus will carry out similar tasks in shallow water areas. 14 SEABREEZE

15 RIGS OIL PRICE VS RIG UTILISATION DRILLSHIP SOLD FOR USD 65 MILLION Ocean Rig has acquired a sixth generation ultra-deepwater drillship for just USD 65 million at auction. The Cerrado, to be renamed Ocean Rig Paros, was previously owned by Schahin and was SHELL UK RETAINS NOBLE JACKUP Shell UK has extended its contract with jackup Noble Hans Deul for two more years. The extension has a day rate of USD 88,600, a significant reduction from the rig s current rate of USD 235,000. RIG UTILISATION AND DAY RATES UTILISATION APR 2016 APR 2015 delivered in 2011 at a cost in excess of USD 600 million. The drillship was built by the Samsung Heavy Industries Shipyard in South Korea. She is currently stacked in Aruba in the Caribbean. APR 2014 APR 2013 APR 2012 NORTHWEST EUROPE 68.2% 91.8% 98.9% 98.5% 95.5% SOUTH AMERICA 78.6% 93.5% 95.2% 97.8% 97.3% US GULF 39.9% 53.4% 72.0% 72.7% 67.9% RECENT DAY RATE BENCHMARKS LOW (USD) HIGH (USD) UK HARSH HIGH SPEC JACKUPS 100, ,000 UK HARSH STANDARD SEMISUBS 150, ,000 NORWAY HARSH HIGH SPEC SEMISUBS 170, ,000 SOUTH AMERICA DEEPWATER DRILLSHIPS 235, ,700 GLOBAL ULTRA-DEEPWATER SEMISUBS 183, ,000 GLOBAL ULTRA-DEEPWATER DRILLSHIPS 230, ,000 Source: IHS-Petrodata 100% 90% 80% 70% 60% 50% 40% 30% 93.5% 91.8% $ % 87.7% 89.5% $ % $ % 85.7% 85.0% 85.1% 84.6% 84.0% 83.2% 83.1% 82.3% 78.6% 84.5% $ % 79.6% 76.9% 75.4% 75.9% 74.2% This charter should keep the rig busy until August However, Shell has the right to early terminate the contract for convenience with notice, and in some circumstances can claim a retroactive rate adjustment. 72.9% 69.2% 68.2% 53.4% $46.99 $47.23 $48.12 $ % 52.0% 52.5% $43.35 $45 $ % 44.4% 42.4% $ % 46.9% 39.2% 44.5% $37.72 $35 $30.80 $33.20 $30 $25 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 Average Brent Crude US$ / Bbl Northwest Europe Rig Utilisation South America Rig Utilisation US Gulf Rig Utilisation $80 $75 $70 $65 $60 $55 $50 INACTIVE RIGS NORTHWEST EUROPE NAME TYPE STATUS BORGNY DOLPHIN SS COLD STACK BREDFORD DOLPHIN SS COLD STACK COSLINNOVATOR SS WARM STACK COSLPIONEER SS WARM STACK ENERGY ENDEAVOUR JU COLD STACK ENERGY ENHANCER JU COLD STACK ENSCO 70 JU COLD STACK GSF GALAXY II JU COLD STACK GSF GALAXY III JU COLD STACK GSF MONARCH JU COLD STACK GSP SATURN JU COLD STACK HERCULES TRIUMPH JU WARM STACK ISLAND INNOVATOR SS COLD STACK NOBLE REGINA ALLEN JU WARM STACK OCEAN NOMAD SS COLD STACK OCEAN PRINCESS SS COLD STACK OCEAN VANGUARD SS COLD STACK PARAGON C20052 JU WARM STACK PARAGON C462 JU WARM STACK PARAGON C463 JU WARM STACK POLAR PIONEER SS COLD STACK ROWAN STAVANGER JU WARM STACK SCARABEO 5 SS WARM STACK SEDCO 711 SS COLD STACK SEDCO 714 SS COLD STACK SERTAO DS COLD STACK SONGA TRYM SS WARM STACK TRANSOCEAN ARCTIC SS WARM STACK TRANSOCEAN BARENTS SS WARM STACK TRANSOCEAN PROSPECT SS COLD STACK TRANSOCEAN SEARCHER SS COLD STACK TRANSOCEAN SPITSBERGEN SS WARM STACK WEST NAVIGATOR DS COLD STACK WEST VENTURE SS COLD STACK WILHUNTER SS WARM STACK SEABREEZE 15

16 CONUNDRUM CORNER, DUTY PHONES URUGUAY WELL WORLD S DEEPEST Total is currently drilling the Raya-1 exploration well offshore Uruguay in water depths of more than 3,400m (11,155ft), a world record depth for an offshore well. Raya-1, which is being drilled with Maersk drillship Maersk Venturer, is also the first exploration well to be drilled offshore Uruguay since The well is being drilled some 250km offshore in Block 14, where Total is partnered by ExxonMobil and Statoil. Drilling operations are expected to take around 100 days to complete, with a well result expected by July. CONUNDRUM CORNER The answer to last month s teaser :- The sum of two adjacent squares gives the number above. What number should replace the question mark? THE SEABREEZE ARCHIVE For the current or archive copies of Seabreeze go to: - see under Shipbroking / Market Reports. If you wish to Subscribe or Unsubscribe please contact : chartering@seabrokers.co.uk SEABROKERS GROUP CONTACTS SEABROKERS HEAD OFFICE Forusbeen Stavanger - Norway Tel: (+47) Internet: SEABROKERS CHARTERING AS - STAVANGER Duty Telephone (24 Hrs) chartering@seabrokers.no SEABROKERS LTD - ABERDEEN Duty Telephone (24 Hrs) Duty Mobile chartering@seabrokers.co.uk SEABROKERS BRAZIL LTDA - RIO DE JANEIRO Duty Telephone (24 Hrs) chartering@seabrokers.com.br SEABROKERS PTE LTD -SINGAPORE Telephone or chartering@seabrokers.sg The correct answer was :- 60 This month, our poser is as follows: - I am a fruit. - Change one letter and I am a farm animal. - Change another letter and I am made from pastry. - Add a letter and I am a type of tree. - Finally, change one letter and I am a drink. What fruit was I to start with? And what drink did I become? Answers back to chartering@seabrokers.co.uk for a chance to win a bottle of wine. 16 SEABREEZE SECURALIFT AS - STAVANGER Telephone Jostein.Okland@seabrokers-group.com HEADING SEA SURVEILLANCE AS - BERGEN Quiatis imaximilitem num enis porum ne dolles Telephone qui rerum id min info@seasurv.net corepta dolo quo conet il id quisto que voluptatus eatis re ventur? Hilibust quis SEABROKERS as mincias EIENDOM peribustis AS - qui STAVANGER dolorit officatus Telephone aut preiumquas qui iuscimu sapelest, esto odio. frode.albretsen@seabrokers.no Itatecum cus acerum ipidunture corporpores et int faccum SEABROKERS remperi SERVICES onsequi AS - STAVANGER Telephone eli@seabrokers.no SEABROKERS ENTREPRENØR SERVICE AS - STAVANGER Telephone entreprenor@seabrokers.no SEABROKERS KRAN & TRANSPORT AS - STAVANGER Telephone kranogtransport@seabrokers.no