TUGS & TOWING NEWS GREAT WORKBOATS OF 2017: APPLY NOW EPPLETON HALL HISTORY

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1 18 th Volume, No years tugboatman 2017 Dated 29 October 2017 BUYING, SALES, NEW BUILDING, RENAMING AND OTHER TUGS TOWING & OFFSHORE INDUSTRY NEWS Distribution twice a week TUGS & TOWING NEWS GREAT WORKBOATS OF 2017: APPLY NOW Will your vessel be honored as a Great Workboat of 2017 in the December 2017 edition of Marine News? Every year, Marine News profiles the most outstanding vessels built in shipyards in North America, recognizing builders, owners and designers as leaders in their field. This edition the much anticipated end-of-the-year edition generates much excitement, as your work is profiled and delivered to the largest audited b2b maritime industry audience in this genre. The only way to have your vessel / workboat featured in Marine News' December 2017 edition is to complete this application by November 1, Only vessels delivered in 2017 will be considered. Click the link to get started: Great Workboats of 2017 (Source: MarineLink) Advertisement EPPLETON HALL HISTORY The Eppleton Hall is a paddle wheel tugboat built in England in This tug only remaining intact 1/26

2 example of a river tyne paddle tug. She is one of only 2 surviving British-built paddle tugs (the other being John H. Amos), and is currently preserved at the San Francisco Maritime Historical National Park in California. O.J., the only paddle tug of the Star Fleet, is likely based on the Eppleton Hall. History Eppleton Hall was built in 1914 by Hepple & Co. of South Shields, for the Lambton & Hetton Collieries, Ltd, and named after the Lambton family ancestral home near Penshaw. A steam powered side wheeler with side-lever engines, she was designed to tow ocean-going coal-carrying ships to & from Tyne Dock, which served Newcastle upon Tyne. For sailing ships, this saved time, while for larger motor vessels it saved navigation & pilotage costs. She was also used to tow newly-built ships to the North Sea. She operated from by Hepple & Co., who post WWII were nationalised as part of the National Coal Board. Being rather old now, rather that being transferred to the British Transport Commission like many of the former collieries transportation assets, she was sold to France Fenwick, Wear & Tyne Ltd., which after refurbishment operated her on the River Wear until In 1952, the tug was modified slightly to obtain a passenger certificate, so that she could obtain, so that she could transport officials from newly-launched steamers, after the boats had completed their sea trials. In 1964 she was one of the last 3 steam tugs decommissioned in the River Tyne, sold from Sunderland Harbour Dock C. in November She was sold for scrap in 1967 to Clayton & Davie, while sitting on a mud bank in Duston as part of the scrap process fire destroyed her afterdeck and interior. This tugboat is no longer in service in San Francisco Harbour, but she is still existing as a landmark. Preservation The news of the fate of the last Tyne-Paddle-Tug reached Karl Kortum, then director of the San Francisco Maritime Museum. Kortum instructed associate Scott Newhall to proceed to the Scrap Yard & purchase the vessel, and then restore her for return to San Francisco. Restored at Bill Quay, Sunderland, from Eppleton Hall served as the Private Yacht of Kortum, modified for the trans-atlantic Ocean journey to San Francisco via the Panama canal she passed through the Golden Gate Bridge in March, Newhall subsequently wrote the book "The Eppleton Hall", which tells the story of the discovery, restoration & journey from the Tyne to San 2/26

3 Francisco of the ship (Howell North Books, Berkeley, CA, 1971). Donated by Kortum to the USA National Park Service in 1979, she's now berthed at Hyde Street Pier, San Francisco. She's presently being restored her condition post-war 1946, when refurbished for France Fenwick, Wear & Tyne Ltd. (Source: Tugs Wiki) Advertisement TUG40/9500/ARC6 DELIVERED The new Transship built tug project tug40/9500/arc6 with yard number 1001 has been delivered on the 14 th October to the client. She is named Yuribey. The tug has a length o.a. of mtrs a beam of mtrs a depth of 7.90 mtrs and a draught of 6.00 mtrs. Her grt is 1,023 ton and nrt 307 ton. She has 4 Caterpillar engines 3516 with an output of 2,095 bkw each and two Azipod Ice 1400 propulsion units. She performed a total output of 10,500 bhp with a bollardpull of 96,88 tons and a free sailing speed of n14.4 knots. Thhe Ice class working temperature is -40 C +30 C (Source & Photo: Transship) MARIAN V TAKING BUNKERS AT CURACAO On Thursday 26st October the Boskalis owned tug Marian V (Imo ) enters Willemstad Curacao to take bunkers. She departed later in the afternoon. The Marian V was built in 1984 by IMC - Ingenierie Maritime et Commercialisation - Tonnay-Charente; France under number 303 for Overseas Equipment Company Ltd. Panama as the Amarante. In 1990 sold to Ulrich Harms GmbH & Co Hamburg; Germany and renamed Salus. In 1997 sold to Gerrit J. Eerland Lcmzn BV Sleepdienst & Transportonderneming Rotterdam; Netherlands and renamed Ada-D managed by Eermat BV - Rotterdam, a joint venture between Eerland and Stemat. In 1998 sold to Stemat Marine Services BV Rotterdam. In 2002 sold to Smit Transport Europe BV Rotterdam and managed by Eermat BV - Rotterdam, a joint venture between Smit and Stemat. In 2007 Eermat BV and managed by Stemat Marine Services BV Rotterdam. In 2011 to Stemat Marine Services BV - Rotterdam and 3/26

4 renamed Marian-V. Transferred to Boskalis for dredging operations. She has a length of mtrs a beam of 8.72 mtrs and a depth of 3.61 mtrs. The two MWM diesel engines develops an total output of 854 kw (1.160 bhp) with a free sailing speed of 10 knots and a bollard pull of 19.5 tons. Equasis reported that the tug has been renamed on the 1 st October 2017 Hidalgo. But as seen on the picture she is still named Marian V (Photo: Kees Bustraan) A 3676KW ASD TUGBOAT WAS LAUNCHED SUCCESSFULLY On 23th October 2017,the 3676kW ASD Tugboat which was fully independent design and building by Zhenjiang Shipyard for one domestic shipowner was launched successfully. (Source: Jiangsu Zhenjiang Shipyard) TWO ASD TUGBOATS WERE DELIVERED SUCCESSFULLY On October 26 th the Jiangsu Zhenjiang Shipyard announced that they have built two 3676kW ASD 4/26

5 tugboats named Xia Gang Tuo 24 and Xia Gang Tuo 25 for Xiamen Port co.,ltd and were delivered successfully, They started the sail smoothly. (Source: Jiangsu Zhenjiang Shipyard) Advertisement ONE 5000HP ASD TUGBOAT WAS DELIVERED SUCCESSFULLY On 14th October 2017 afternoon the Jiangsu Zhenjiang Shipyard announced that they have built one ASD Tugboat named "Qing Gang 26" and successfully delivered to Qinhuangdao Port CO.,LTD The tug starts to sail smoothly. (Source: Jiangsu Zhenjiang Shipyard) ONE 2942KW ASD TUGBOAT WAS DELIVERED SUCCESSFULLY On 15th October 2017 the Jiangsu Zhenjiang Shipyard announced that they have built one ASD Tugboat named "Zhong Yuan Chuan Qi 3 Hao" nd successfully delivered to Nantong COSCO KHI Ship Engineering Co.,Ltd The tug starts to sail smoothly. (Source: Jiangsu Zhenjiang Shipyard) 5/26

6 ACCIDENTS SALVAGE NEWS CHALLENGES AHEAD FOR PACIFIC PARADISE SALVAGE The fishing vessel Pacific Paradise remains grounded on a reef off Waikiki, Hawaii, despite two weeks of salvage efforts and multiple refloat attempts. The Coast Guard seeks to assess the vessel's structural integrity before proceeding further. "The vessel is located in a very dynamic area, in a surf break. We've had issues with surging of the water and water clarity, and have been unable at this point to conduct a complete assessment of the hull," U.S. Coast Guard Lt. Cmdr. Gregg Maye told local media. "We want to do an inspection of the hull to make sure it can withstand the stress [of removal efforts]. We don't want to damage the vessel in the process and have a release of fuel right on Waikiki Beach." The Paradise is aground in shallow water, in an area of ecologically sensitive coral heads, and she is carrying 1,500 gallons of fuel. She caught fire during a previous salvage effort and burned for several days, raising questions about the strength of her decks, and she has taken on water over the course of her two weeks on the reef. In addition to these challenges, accounts from local officials suggest that her hull (or a hull protrusion) may be physically stuck in the reef. Seattle-based vessel operator Foss Maritime was contracted to remove the Paradise after previous salvage efforts proved unsuccessful. "We... are anxious to move the vessel away from the reef so it will not cause damage or injury to people or marine life," said Michael MacDonald, director of Foss Marine Operations & Commercial - Hawaii Region. "We are preparing to safely move the vessel away from this environmentally sensitive area." MacDonald told local media that the Paradise's buoyancy has decreased since she went aground, making her harder to move. "Since the fire and everything it's not longer lively, it's no longer moving. So we're really trying to move, basically, dead weight at this point," he said. (Source: Marex) TURKISH BULK CARRIER COLLIDED WITH GERMAN HEAVY LIFT SHI P, BLACK SEA Bulk carrier Maraki K collided with heavy lift ship Maria on Constanta outer anchorage at around 0300 UTC Oct 25, both ships understood to be under way at the time of collision, maneuvering to anchor. Reportedly both ships didn t sustain serious damages, no leak occurred. Maraki K movements nevertheless, are rather strange she left 6/26

7 anchorage at some 7 knots speed, sailed further to sea and as of 1500 UTC was moving in southern direction at some 3-4 knots speed, under way or drifting. Maria was at anchor on Constanta Anchorage. Heavy lift cargo ship Maria, IMO , dwt 94 22, built 2004, flag Antigua, manager SAL Ship Management UG (haftungsbeschränkt) & Co. KG. Bulk carrier Maraki K, IMO , dwt 26472, built 1994, flag Cook Islands, manager AKNUR DENIZCILIK VE DIS, Istanbul. (Source: Maritime Bulletin) Advertisement CRUDE OIL TANKER RAN AGRO UND ON W ESTERN SCHELDT, NETHERLANDS Aframax tanker Maria Bottiglieri ran aground on Western Scheldt up Vissingen abeam of Borssele, Netherlands, at around 1300 UTC Oct 26, while proceeding upstream, en route from USA to Antwerp. Tanker in full load was refloated about an hour and a half later, with the help of at least three tugs. She resumed moving upstream at around 1330 UTC, at a low speed of some 4 knots. At 1415 UTC tanker, surrounded by tugs, stopped, looking like she s in the process of anchoring. Most probably, she s to be anchored for survey and investigation. AIS track prior to grounding looks like tanker suffered mechanical failure or lost control. On photo Maria Bottiglieri aground. IMRRA, FleetMon s official Vessel Risk Rating Partner, risk assessed this vessel as having an amber risk 7/26

8 rating, with a specific risk rating of 36% (26-OCT-17), compared to the fleet average 34.8%. New risk assessment reports can be purchased via FleetMon. Red: Poorest performing; Amber: Average value; Green: Good indicator. (Source: Fleetmon) OFFSHORE NEWS HISTORIC SUPPLY SHIPS THE SKANDI VEGA The story of the STX 04 CD starts in 2004 when the Aker Yards Design House came into existence, combining the shipbuilding activities of Aker and Kvaernar. The company was based on Akers Mek Verksted located in the Oslo area, which started as a constructor of various types of mechanical equipment and moved into shipbuilding as the requirement for iron and then steel hulls began to dominate the marine industry. Over a number of years the company acquired a selection of Norwegian shipyards which became Aker Aukra, Aker Brattvaag, Aker Brevik, Aker Langsten and Aker Soviknes, as well as two other yards in what we used to know as Eastern Europe, Aker Braila and Aker Tulcea in Rumania. They also operated yards in Brazil and Vietnam. Initially as far as the offshore industry is concerned, they built ships to other people s designs, particularly the UT brand. But when other people s designs are used there is a cost which is finally passed on to the customer, and it is sometimes necessary to use systems and components provided by the designers of the ship, often at high cost. Therefore for Aker yards there was the immediate attraction of designing their own craft, the first possibly being the AKER AH 03, which may at the time have been known just as an AH03 (For offshore anoraks). A number of this class were built for Tidewater in Spurred on by this success they produced a number of futuristic designs employing the semi-enclosed or completely enclosed forecastle, justified one presumes because the ingress of water onto the forecastle would be reduced during rough weather. Back in about 2010 four of the AKER AH 04 CDs were constructed for District Offshore, and since the company had been purchased by the Korean STX they entered service as the STX 04 CDs, starting I think with the Skandi Vega and being followed by the Skandi Skansen, the 8/26

9 Skandi Hercules and the Skandi Skolten. Three of them are still part of the DOF fleet, and the forth the Skandi Skolten was sold in 2015 and is now called Hai Yang Shi You 291. But what makes them in any way memorable? It is the six Wartsila engines which give them 35,000 bhp and a bollard pull of 360 tons. Other slightly mind blowing statistics include an overall length of 108 metres and a workdrum capacity of 18,700 metres of 76mm wire. The STX house was subsequently taken over by VARD in Photographs: The Skandi Skansen in Malta in 2014 by Gaetano Spiteri, and the Skandi Skolten in Mulgrave in 2011 by Jan Plug. (VICTOR GIBSON is author of The History of the Supply Ship, Supply Ship Operations, and A Catalogue of Disasters. They can be purchased from or most good booksellers.) Advertisement NEW-BUILD SENTINEL MARINE ERRV BOUND FOR BREAGH FIELD DEPLOYMENT Vessel christened at Great Yarmouth for southern North Sea operations A new multi-role emergency response and rescue vessel (ERRV) built by Aberdeen-based Sentinel Martine as part of a 110m investment has been deployed to operations in the southern North Sea. Forties Sentinel was officially named at a ceremony in Great Yarmouth. Forties Sentinel has been contracted to INEOS Breagh to provide support for the firm s production facilities in the Breagh gas field. INEOS has also chartered a second ERRV from the Sentinel Marine fleet Sentinel Ranger for the field.the 61m vessel was officially named in a quayside ceremony by the ship s godmother, Ylva Tuft, the wife of INEOS Oil & Gas chief executive officer, Geir Tuft, while Great Yarmouth port chaplain Rev Peter Paine performed the blessing. The charter for Forties Sentinel was brokered by Braemar ACM Shipbrokers. It is the second vessel to be christened by Sentinel Marine in recent weeks, with Mariner Sentinel being deployed to Statoil s Mariner field last month. She is one of nine new-build ERRVs ordered by the firm: six are already in operation and three are in various stages of construction at a shipyard in China. In addition to the primary role of protecting offshore workers, the ERRVs, which are 9/26

10 equipped with the latest technology, can perform a number of other tasks, making them extremely efficient to operate. Rory Deans, chief executive of Sentinel Marine, says the naming ceremony was another milestone in what has been another very successful year for the company. He adds, This has been yet another landmark day for Sentinel Marine, and we are delighted that our clients at INEOS Breagh were able to play a pivotal role in the celebrations. With new vessels launched and a string of contact wins, 2017 has been an exceptional year for Sentinel Marine. These are a new breed of multi-role ERRVs which provide a streamlined and more efficient solution for clients, and as many operators are seeing the benefits that this approach brings we anticipate that 2018 will also be very successful for us. Not only do these vessels represent value for money because they can perform more than one task, they are built to the highest possible specifications with health and safety of crew, passengers and the marine environment at the forefront of the design. Mervyn Williams, supply chain manager INEOS Breagh added, The working relationship with Sentinel is first class; characterised by a shared uncompromising commitment to safety, efficiency and team work. We have been delighted with the performance of both Forties Sentinel and Sentinel Ranger in support of our routine operations and drilling campaign. Sentinel Marine has offices in Aberdeen and Singapore. It provides reliable, disruption-free and safe services to the oil and gas marine industry. (Press Release) MITSUI IN TALKS TO INVEST IN ANOTHER JV WITH AKASTOR Norwegian oil service investment company Akastor is in advanced discussions with Japanese trading and investment company Mitsui to further expand their current partnership to include AKOFS Offshore. Akastor-owned AKOFS Offshore is a vessel-based subsea well construction and intervention services provider. Akastor and Mitsui have entered into a memorandum of understanding according to which Mitsui, together with potential partners, will invest in AKOFS by purchasing 50% of the shares in the company to form a new joint venture, Akastor said on Wednesday. The transaction is expected to result in an initial net cash release to Akastor of approximately $142 million for the shares in AKOFS, with a potential further cash release depending on earnings generated by the well intervention vessel AKOFS Seafarer in the coming years. We are pleased to have reached this important milestone and believe the transaction will provide a beneficial long-term ownership structure for AKOFS. The prospect of expanding our current partnership with Mitsui is exciting and we look forward to further developing the cooperation in the coming years, says Kristian Røkke, CEO of Akastor. Through the transaction, Mitsui will assume an active role in the further support and development of AKOFS together with Akastor as a long-term business partner. The transaction still remains subject to agreement on final terms and conditions, final due diligence, the entry of definitive 10/26

11 agreements between Akastor and Mitsui and BoD approvals for all respective parties. Completion of the transaction is expected to occur in the first quarter of In a similar move a little over a year ago, Akastor and Mitsui signed a heads of agreement to create a joint venture with 50/50 ownership between AKOFS Offshore and Mitsui. The joint venture acquired the hull of Skandi Santos vessel from DOF Subsea Rederi and the Skandi Santos topside from AKOFS. Under the deal, the joint venture entered into a lease agreement with AKOFS corresponding to the remaining contract duration between AKOFS and Petrobras. (Source: Offshore Energy Today) Advertisement HEEREMA MARINE AXING 250 JOBS Over 250 job cuts are planned within restructuring efforts announced on Tuesday by Heerema Marine Contractors (HMC), the Netherlandsheadquartered owner of crane vessels. The marine contractor said the restructuring was needed amid continuing low oil price and historic low investments in the oil and gas industry resulting in an increasingly competitive market. This is further exacerbated by deteriorating market conditions since the start of this year, with no prospects of market recovery. The restructuring foresees a termination of contract of around 200 worldwide office personnel and around 50 fleet personnel. The management has informed the staff of the intended plans. All changes are subject to consultation with the relevant stakeholders and as a first step the company has asked advice from the Works Council of HMC in The Netherlands. HMC will do everything possible to support those affected and has also entered into discussions with the trade unions about a severance package, HMC informed. We are deeply sorry to have to consider this restructuring, resulting in a loss of colleagues, who every day put so much passion into their work and have helped in establishing our position as a leading company in the offshore industry, Frans den Houter, Executive Board Member of HMC, said. At the same time, we are convinced that these decisions are crucial for the continuity of HMC. HMC specializes in the transportation, installation, and removal of all types of offshore facilities, including fixed and floating structures, and subsea pipelines and infrastructures in shallow, deep, and ultra-deep waters. (Source: World Maritime News) 11/26

12 GO MARINE GROUP GOES INTO ADMINISTRATION Australia s Go Marine Group has become the latest casualty of the offshore downturn, having been placed into administration this week along with subsidiary Go Offshore. Part of Singapore s Otto Marine, Go Marine Group has called in KordaMentha as its administrator and will hold its first creditors meeting in Perth on November 1. Go is to be restructured and hopefully recapitalized. Otto s shareholding will be diluted significantly in the process through proposed new investment, a source told Splash. Go Offshore currently has around 16 vessels in its fleet. Parent company Otto Marine was delisted from Singapore exchange last year after being taken over by an entity owned by executive chairman Datuk Seri Yaw Chee Siew. (Source: Splash24/7) OCEANTEAM MISSED BOND PAYMENT Norwegian offshore vessel owner Oceanteam, which has been going through a restructuring, has missed an interest payment due to bondholders yesterday. Oceanteam says it is working to secure the necessary funds, and hopes to make the interest payment within the fiveday grace period. Last October, Oceanteam defaulted on payments due to bondholders after announcing a capital restructuring. The restructuring prompted the sale of Oceanteam s 25% stake in pipelay vessel North Ocean 105 to McDermott earlier in the year. (Source: Splash24/7) FUGRO TO ACQUIRE HYDROCARBON SEEP DATA OFFSHORE CANADA Fugro has teamed up with Amplified Geochemical Imaging (AGI) to acquire offshore hydrocarbon seep data in advance of Canada s 2018 east coast bid round. Bathymetry, backscatter and water column anomaly data will be collected to pull together a comprehensive picture of surficial geological features, Fugro said on Wednesday. These data will be used to identify and precisely 12/26

13 target the best locations for geochemical sampling, enabling clients to improve and de-risk their exploration programs, the company explained. According to the company, the information may also be used in a variety of further investigations such as establishing environmental baselines, evaluating seafloor geohazards and preliminary planning for field development. The seafloor mapping will be performed by Fugro using its geophysical vessel, Fugro Discovery, and includes acquisition of 10,500 square kilometers of multibeam echo sounder data and sub-bottom profiler data. This will be followed by coring up to 150 geochemical targets and 20 heat flow measurements, complete with shipboard geochemical screening testing, further shore-based geochemical analyses (carried out by AGI) and an integrated, interpreted data package. AGI s geochemical analyses will determine the hydrocarbon signature of the samples. We are excited to be part of Canada s growing offshore industry and Newfoundland and Labrador s 2018 licensing round, said Keith Kneale, Fugro s Business Development Manager for the Americas. Investment by Nalcor Energy is supporting this project which will showcase Fugro s market-leading expertise earned from conducting dozens of similar surveys including the world s four largest to date enabling clients to improve and de-risk their exploration programs. He explained how AGI has been involved in offshore microseepage and macroseepage programs for over 20 years. The comprehensive data package will be available in early 2018 and is being licensed from both Fugro and AGI. (Source: Offshore Energy Today) Advertisement View the youtube film of the Alphabridge for tugboats on PGS: WORST BEHIND US, BUT RECOVERY TAKES TIME Norwegian marine seismic player PGS recorded a decrease in revenue for the third quarter of Revenue fell by $16.5 million, or 7%, compared to $224.1 million Q PGS posted a net loss of $189 million, compared to a loss of 29 million a year ago. According to PGS, the revenue decrease is mainly driven by a 24% reduction in MultiClient late sales revenues and 20% lower contract revenues, partially offset by a 21% increase in MultiClient pre-funding revenues. The Ramform Hyperion vessel entered into operation early Q and PGS operated more streamer capacity in 13/26

14 Q3 2017, compared to Q PGS said lower marine contract revenues in Q3 2017, compared to Q is a result of less vessel capacity allocated to contract operations. Marine Contract delivers exclusive seismic surveys to oil and gas exploration and production companies, while MultiClient initiates and manages seismic surveys which PGS acquires, processes, markets and sells to multiple customers on a nonexclusive basis. Pricing of marine contract projects in Q was generally higher than in Q3 2016, but the improved pricing was for PGS offset by a very challenging project completed in Asia Pacific in the quarter, the company explained. MultiClient pre-funding revenues increased by $17.5 million in Q3 2017, compared to Q3 2016, primarily due to more vessel capacity allocated to MultiClient activities. Pre-funding revenues were highest in North America and Europe. MultiClient late sales revenues in Q decreased by $15.4 million, compared to Q Late sales revenues in the quarter were impacted by Hurricane Harvey, which interrupted business for some companies in the Houston area. PGS Houston office was closed August 28 and reopened late October, however most of PGS Houston organization have been operational since early September. Further the company did not benefit from any particular license rounds in the quarter. Late sales revenues were highest in Europe and West Africa. Market recovery to take some time Rune Olav Pedersen, President and Chief Executive Officer said: Our MultiClient business continues to deliver solid revenues. The pre-funding level of 124% achieved in Q3 is driven by GeoStreamer MultiClient projects offshore Canada and in the North Sea. MultiClient late sales were satisfactory considering the impacts of Hurricane Harvey and that we did not benefit from any particular license rounds this quarter. The improved pricing for marine contract projects in Q3 compared to last year was offset by a challenging project in Asia Pacific, resulting in unsatisfactory financial results for our marine contract activities in the quarter. The order book decreased sequentially as a result of high production and low order intake, however the negative trend ceased in October and subsequent to quarter end we have secured several projects for execution in Q4 and Q The order book totaled $167 million at September 30, 2017 (including $115 million relating to MultiClient), compared to $248 million at June 30, 2017 and $190 million at September 30, Order intake improved in October and subsequent to 30 September the Company has received awards amounting to approximately $55 million. Looking forward, PGS said it expected the improved cash flow among clients, combined with growing limitations on streamer availability in the industry, to benefit marine 3D seismic market fundamentals longer-term. There is a risk that a market recovery will take some time. Increased seasonal variations will impact activity and pricing in the coming winter season, the company said. Capital expenditure for 2017 is expected to approximate $150 million, of which approximately $89 million relates to the delivery of Ramform Hyperion vessel in Q Going forward leaner As said by the CEO, the company on Thursday also announced a new centralized, simplified and streamlined organization, which builds on the two 14/26

15 business areas: Sales & Services and Operations & Technology. The new strategy includes closing smaller offices without strategic importance; Improving fleet flexibility; Centralizing and reducing imaging capacity; Renegotiating with suppliers Over the last years fundamentals in the seismic industry have changed significantly. The market is smaller, weaker and more uncertain than before, and the MultiClient share of acquisition has increased considerably. At the same time the world has become more digital and clients have centralized their decision making process. The new PGS organization addresses these changes, PGS said. PGS said it would make its vessel capacity more flexible. Going forward PGS intends to operate a fleet of eight vessels, of which two will be used selectively to address demand swings and market seasonality. The cost base for the company will be reduced to a baseline of six vessels, while the flexible capacity will be managed and crewed by a combination of regular and temporary employees. This downturn has been longer and lower than anyone anticipated. We think the worst is behind us, but I cannot bet the Company on a market recovery. We need to change what we can control ourselves. The reorganization, combined with more flexible vessel capacity makes us better positioned to address the current market environment and improve cash flow and profitability, said Rune Olav Pedersen, President & CEO of PGS. PGS expects the overall gross cash cost for the company to be reduced by at least $100 million in 2018, which should be sufficient to deliver positive cash flow after debt servicing next year, assuming a similar market in 2018 as in The company plans to implement the new structure by year-end Restructuring cost is estimated to be approximately $40 50 million and is expected to be recorded mainly in Q (Source: Offshore Energy Today) Advertisement FURORE-G NEW ADDITION FOR REDERIJ GROEN Rederij Groen has acquired another Offshore Support and Patrol vessel in October The former Dutch border patrol vessel, a Damen built Stan Patrol 3407, was named Furore-G. She approached and entered the Company s home port of Scheveningen in the morning of October 19, 2017 after an extensive yard stay. The Furore-G measures 34 meters length over all x 7 meters width and has a tonnage of 206 GT. The vessel can be manned by 5 crewmembers and can carry up to 12 passengers. During the yard stay the vessel was recommissioned, re-flagged to Panama flag and Classed by Lloyds Register. Next to these formalities the company decided to upgrade and duplicate some of the ships equipment for elevated reliability and redundancy and also improve the endurance of the vessel. The Furore-G is powered by two Caterpillar C32 diesel engines with a total output power of 2088 kw ( about 2800 hp). During sea trials an average top speed of 15.8 knots through the water was achieved and recorded in an official statement by Lloyds Register. An FRC can be 15/26

16 launched via a slipway in the stern, being able to act as Semi- Standby and rescue vessel as well. By having this additional feature the Furore-G can be utilized in all aspects of the Offshore support, Guard and Renewable energy markets. (Source: Rederij Groen) PERESTROIKA DIVESTS FROM DOF FOR $17M Møgster Offshore and Perestroika have entered into an agreement whereby Perestroika, as part of a capital increase in Møgster Offshore, has transferred its shares in DOF to Møgster Offshore as contribution in kind in the capital increase in Møgster Offshore. Møgster Offshore is related party to the chairman of the board of DOF, Helge Møgster, while Perestroika is an investment company related to Frederik W. Mohn, director of DOF. The Perestroika shares in DOF are priced at NOK 1 per share, which prices the transaction at approximately $17 million. The Møgster group is the primary owner of DOF, providers of offshore service vessels and service to the subsea market. Møgster Offshore will after this transaction own shares in DOF representing 58,02% of the share capital today and 47,40% on a fully diluted basis. Perestroika AS will after this transaction not own any shares or shareholder rights in DOF. Helge Møgster said that the basis for this agreement is to strengthen the industrial ownership Møgster Offshore has in DOF. (Source: Subsea World News) WARTSILA TESTS REMOTE CONTROL VESSEL FROM 8,000 KM AWAY Finland s Wärtsilä has successfully tested the remote control of ship operations using a combination of dynamic positioning (DP) and manual joystick control. Wartsila, in collaboration with vessel 16/26

17 provider for the project Gulfmark Offshore, carried out the test on August 21 off the North Sea coast of Scotland. Even though the test vessel was in the North Sea, the remote control navigating was carried out from the Wärtsilä office located in San Diego, California, 8,000 kilometers away. Wärtsilä s DP unit developed remote control capabilities in early 2016, but this was the first test carried out on an offshore vessel. The vessel, the Highland Chieftain, is an 80- meter platform supply vessel already fitted with a Wärtsilä package for navigation, automation, and dynamic positioning systems. For the test, additional software was temporarily added to the DP system to route data over the vessel s satellite link to the onshore workstation in California. The testing was carried out using standard bandwidth onboard satellite communication. No land-based technology was used for the communications between the vessel and the remote operator workstation. The test was conducted over a four-hour period during which time the vessel was driven through a series of maneuvers at both high and low speeds. All the test procedures went as planned. Roger Holm, president of Wärtsilä Marine Solutions, said: Wärtsilä is committed to developing technologies that enable a smart marine future. In the age of digitalization, the future smart marine ecosystem will involve connecting smart vessels with smart ports to enable an even more efficient use of resources. Andrea Morgante, head of digital at Wärtsilä Marine Solutions, added: The fact that the ship was enabled for remote operation in only a few hours is a strong endorsement of Wärtsilä s position at the forefront of marine technology development. The development of successful remote access to ships might also enable virtual service solutions to customers needing tuning or testing of their DP systems. Furthermore, Wärtsilä s solution will be used for other pilot projects, such as automated docking procedures. Ashley Robinson, SVP of operations at Gulfmark, said: At Gulfmark Offshore, we believe that it is important to embrace new technologies since they represent the future of our industry. For this reason, we are most happy to cooperate with Wärtsilä in this exciting project. Watch the video. HERE (Source: Offshore Energy Today) Advertisement 17/26

18 POLARCUS LANDS SEISMIC DEAL IN SOUTH AMERICA Marine geophysical firm Polarcus has been awarded an XArray 3D seismic acquisition project in South America by an undisclosed client. The project will start in the fourth quarter of 2017 and run for approximately ten weeks, the company said on Friday. However, no further details have been revealed about this project. This is the second project announced by the seismic player on Friday. Namely, the company also announced it had received a letter of intent from an unnamed client to pre-fund a multi-client XArray 3D seismic acquisition project in the Middle East. Also on Friday, Polarcus posted its third quarter 2017 results. According to the financial statements, Polarcus narrowed its net loss for the quarter despite lower revenues. (Source: Offshore Energy Today) POLARCUS CUTS QUARTERLY LOSS Marine geophysical player Polarcus nearly halved its net loss during the third quarter of the year despite lower revenues. Namely, Polarcus reduced its net loss during the third quarter 2017 to $9.1 million compared to $17.4 million loss in 3Q 2016, the company reported on Friday. The company recorded revenues of $58.5 million in the third quarter 2017, up 62% from $36.1 million in 2Q 2017, and down from $64.6 million in 3Q The sequential increase in revenues was mainly driven by increased utilization and achieved dayrates. Vessel utilization increased to 92%, up from 75% in 2Q Bareboat charter revenue was $6.8 million, up 8% from the previous quarter due to an increase in the number of days spent on bareboat charter following the start of Polarcus Amani (renamed Ivan Gubkin) on a 5½ year bareboat contract with Sovcomflot during April Polarcus recorded multi-client revenue of $4.8 million, an increase of 146% from $2 million in 2Q 2017, mainly driven by an increase in late sales. There was no vessel allocation to multi-client in the quarter. The company continued to record lower operating costs in the quarter, achieving a 3% reduction in gross cost of sales to $40.3 million, this in combination with an increase of 36% in the number of days the vessels were operating on contracts compared to 2Q Uncertain market Polarcus said on Friday that the marine seismic market continues to be challenging and uncertain in the short term. With continued 18/26

19 limited exploration spending by oil companies, the lower demand combined with excess vessel capacity in the market drives high competition for seismic contracts. Polarcus expects the current challenging market conditions to continue into 2018 and has, after the quarter-end, undertaken to further streamline and re-shape the organization to deliver improved flexibility and optimized productivity. This strategic re-shape of the organization enables Polarcus to more effectively reduce costs when global fleet activity is decreased. The immediate effects include an estimated $8 million annual cost savings, and the ability to take advantage of mid-year seismic exploration cycles when global demand is typically higher. The one-off extra costs associated with the streamlining are expected to be $2 million and will impact the company s 4Q 2017 financial results. The company expects its total capex investments for the full year 2017 to be $8 million, down from $10 million. Expected multi-client investments remain unchanged at $20 million for the full year The multi-client pre-funding level target also remains unchanged at above 110%. The company s backlog as at September 30, 2017, including the two bareboat charters, is estimated to be $125 million. (Source: Offshore Energy Today) WINDFARM NEWS - RENEWABLES Advertisement BIBBY WAVEMASTER 1 HITS W2W MILESTONE AT GALLOPER OWF 19/26 Bibby WaveMaster 1 has completed over 200 personnel walk-to-work (W2W) transfers while serving at the Galloper offshore wind farm. After Damen delivered the vessel to its owner Bibby Marine Services in August, Bibby WaveMaster 1 was hired by James Fisher Marine Services (JFMS) to support the construction of the Galloper offshore wind farm. Around mid-september, the vessel departed from Harwich to

20 work on the 336MW UK offshore wind farm. Mark Whitehead, Commercial Manager at Bibby Marine Services, said: It is fantastic that in just a few weeks we have hit this milestone. Our vessel gives personnel a completely step-less walk-to-work. Their jobs are hard enough without asking them to lug themselves and kit up flights of stairs, on the Bibby WaveMaster 1 we have taken care of that for them providing a lift and warehouse support with powered trolleys. Under the contract with JFMS, Bibby WaveMaster 1 is chartered for a three-month period with options to extend to support the offshore commissioning phase. (Source: Offshore Wind) DALBY OFFSHORE CHOOSES OCEANIC DYNAMICS AFTER TRAIL Following a trial of the UK Electronic Solutions Oceanic Dynamics system, Dalby Offshore has decided to install the motion and impact monitoring system on three more crew transfer vessels (CTVs). The system was trialed on board Dalby s largest CTV, the Dalby Ouse. According to UK Electronic Solutions, with its motion, impact, docking and telemetry auditing, the Oceanic Dynamics has allowed Dalby Offshore to justify deployment of this large vessel alongside highly impact-sensitive wind farm equipment. The ability to carry a wider range of equipment and cargo means that the vessel can be used more flexibly and rapidly in more occasions, the company said. Steve Bartram, Operations Manager at Dalby Offshore, said: Rollout of this system to our other Crew Transfer Vessels is a no-brainer for us. Oceanic Dynamics has not only allowed us to use our largest CTV alongside sensitive equipment, but with its ability to provide a comprehensive audit trail, it has been instrumental in opening up new business opportunities for us. Oceanic Dynamics is set to allow vessel owners to monitor and report on impact, fuel efficiency, engine data, route information, and the dynamic stability of the vessel within the water. It also allows monitoring and recording of crew transfers at all times via an HD CCTV system. The system can also be installed on smaller vessels, including tugs, pilot vessels and lifeboats, in order to provide an audit trail for incidents, maintenance and performance. All information is stored locally, and can be tranferred via GSM or Wi-Fi when the vessel is within range of the shore, or transferred live via a satellite connection. (Source: Offshore Wind) SIEMENS GAMESA EXTENDS CHARTER FOR ACERGY VIKING Siemens Gamesa Renewable Energy has extended the charter agreement for Eidesvik Offshore s vessel Acergy Viking for a period of two years. The vessel will be working firm until the end of January 2020, performing SOV duties for Siemens Gamesa in the German offshore wind sector. The contract extension is in direct continuation of the current charter period and charterers have options beyond the firm period, Eidesvik Offshore said. We are proud of the solid operations delivered by the vessel and crew resulting in this long term extension. This extension will enable us to further 20/26

21 strengthen our relationship with a strategic important client for Eidesvik in this exiting and evolving market, said Eidesvik Offshore s CEO Jan Fredrik Meling. The Acergy Viking started working for Siemens Gamesa under a ninemonth charter in August Siemens Gamesa extended the vessel s charter by additional six months plus options in June In June 2016, Siemens chartered another of Eidesvik s vessels, Viking Poseidon, for its operations off Germany. (Source: Offshore Wind) Advertisement VBMS SIGNS PREFERRED BI DDER AGREEMENT FO R MORAY OW F EAST VBMS, a subsidiary of Royal Boskalis Westminster N.V. (Boskalis), has signed a Preferred Bidder Agreement for the supply and installation of the inter-array cables for Moray Offshore Windfarm East (MOWE) in the UK. MOWE is a joint venture company owned by EDP Renewables (77%) and ENGIE (23%). The contract award is subject to financial close which is expected to take place in the second half of The project scope includes the supply, installation and burial, as well as termination and testing of approximately one hundred 66kV inter-array cables. The project execution will commence at the start of next decade. (Press Release) 21/26

22 VOS PASSION IN GERMAN WATERS VOS Passion, one of our newest PX121-type platform-supply vessels (PSV) is currently under charter with Rhenus Offshore Logistics GmbH & Co. KG. The vessel, which is managed by Vroon Offshore Services Den Helder, is engaged in cargosupply operations to an offshore-windfarm substation located in German waters. The Vroon fleet has been undertaking supply services for the German renewable industry since March 2016, with all operations completed safely and efficiently. VOS Passion is the fourth in a series of six PX121-type PSVs constructed for Vroon at the COSCO Guangdong Shipyard in China. She features an Ulstein-patented X-BOW design that ensures smoother vessel movements, optimal fuel efficiency and maximum comfort on board. The final vessel in the series, VOS Patriot, is scheduled for delivery next year. (Press Release) DREDGING NEWS TSHD MAHAA JARRAAFU ARRIVES IN THE MALDIVES Following her two-week trip from China, MTCC s new trailing suction hopper dredger Mahaa Jarraafu has finally arrived home. Today marks a major milestone in the history of MTCC. Our trailing suction hopper dredger Mahaa Jarraafu has just arrived in the Maldives, reported the company. The vessel, belonging to the Easydredge series of standard twin-screw trailing suction hopper dredgers, was designed and built by Royal IHC yard in Qidong, China. TSHD Mahaa Jarraafu has a length overall of meters and a hopper capacity of 3.700m³ per load. Like all ships in the series, she is equipped with the specially designed Easydredge dredging equipment, including a state-of-the-art IHC dredge pump and a slender hull for increased speed and low fuel consumption. In addition, the vessel has a world dredging equipment package, which includes an adjustable overflow, bottom doors, jet water system and a shore pumping installation. (Source: Dredging Today) 22/26

23 Advertisement PORTSMOUTH HARBOR MAINTENANCE DREDGING SCHEME ABOUT TO BEGIN The Queen s Harbor Master Portsmouth said in their latest announcement that the surveying operations and maintenance dredging will be conducted in the maintained areas within Portsmouth Harbor and its approach channels from 29 October to 8 November The contractor for the works will be Boskalis Westminster Ltd, using the plough vessel Norma with the support vessel Smit Romney carrying out survey operations. Both vessels will display the appropriate signals when conducting survey and dredging operations. Works will be conducted daily between 07:00 to 19:00, according to the official announcement. The Norma can operate in water injection dredging mode or in plough mode, Boskalis said. The vessel is equipped with plough/bed leveling units in order to support dredging operations to achieve accurate finished levels. She can also be used independently for bed leveling to extend the intervals between maintenance dredging. (Source: Dredging Today) JAN DE NUL GROUP APPOINTS DSB OFFSHORE LTD AS EXCLUSIVE BROKERS FOR DISPOSAL AUXILIARY FLOATING Dredging major, Jan de Nul Group (JDN), has appointed London-based ship brokerage, DSB Offshore Ltd (DSB), as exclusive brokers to dispose of some of its marine equipment worldwide. Whilst retaining its dredging and core assets, JDN will be selling off some of its auxiliary vessels and barges located in Europe, West Africa, the Arabian Gulf, SE Asia and Panama. DSB Offshore Ltd, a family-run ship brokerage established in 1981, has over 35 years experience in sale and purchase and charter of floating plant for the marine civil construction, renewables and oil and gas sectors. 23/26

24 Over the years DSB has been involved in the disposal of fleets for individual owners as well as marine spreads for construction companies and JVs at the completion of large marine civil construction projects. Last year, as exclusive brokers, DSB successfully sold A2SEA s first generation jack-up wind installation vessels. At present DSB are completing their exclusivity for the disposal of vessels for FCBC (Forth Crossing Bridge Construction) in Edinburgh. This year these vessels became surplus to requirement when, on the 4th September, the new Forth Bridge was completed and officially opened by Her Majesty the Queen. Jan de Nul Group vessels available for sale exclusively via DSB Offshore include a number of 2,000t, 3,000t and 8,000t flat-top barges, an accommodation barge, two splitbarges (1,100m3), various tugboats (10-40tbp), crew boats (12pax), survey launches and a multicat-type Eurocarrier. Among the vessels based in the Arabian Gulf many worked on the construction of the Jebel Ali Palm Island, which involved dredging works and land reclamation, and rock revetment. Specific vessels available for sale there, are rock barges (3-8,000t), small tugs, crew launches, crane/positioning barges, spraying pontoons and bunker barges. The auxiliary equipment for sale has worked alongside Jan de Nul Group s TSHDs and CSDs to support dredging and marine civil construction projects, handling floating pipelines, performing towage, rock transport and land reclamation works worldwide. Serious enquiries should be directed to DSB Offshore Ltd. (Source: DSB Offshore) YARD NEWS COCHIN SHIPYARD FORMS JV WITH HOOGHLY DOCK Indian shipbuilding major Cochin Shipyard has incorporated a joint venture, Hooghly Cochin Shipyard, with Hooghly Dock & Port Engineering for the upgrade and modernisation of shipbuilding infrastructure at two shipyard sites in Salkia and Nazirgunge of Kolkata. Cochin shipyard and Hooghly Dock & Port Engineering will have 76% and 24% in the jv respectively. Cochin Shipyard plans to upgrade 24/26

25 Hooghly Dock s infrastructure and use the yard for the construction of vessels for inland river transport. In September, Cochin Shipyard announced plans to establish shipbuilding and repair facilities across India under its major expansion plan following the shipyard launched its IPO in August. (Source: Splash24/7) Advertisement MARINE TECHNICS AND FLUIDMECANICA SIGNED AN AGREEMENT ON JOINT PRODUCTION OF DECK EQUIPMENT IN RUSSIA The signing of the agreement on September 20 th, at the booth of "Marine Technics" in the framework of the exhibition "Neva-2017". Localized production in Russia Joint is an important step for both companies, and for the whole of the Russian market of shipbuilding. This is an opportunity to introduce advanced technologies and learn from the experience, taking into account local conditions that will allow shipowners interesting engineering and pricing decisions. Fluidmecanica carefully suited to develop its products, has the most advanced manufacture, each product undergoes quality control. Equipment produced by Spanish company, perfectly proved in the Russian market. All production has certificates of classification societies, including RMRS certificate. (Press Release) WEBSITE NEWS ARE YOU ALSO INTERES T ED IN THIS FREE TUGS TOW ING & OFFSHO RE NEWSLETTER. PLEASE VIS IT THE WEBS ITE WW W.TO W I N G L I N E. C O M AND S UBSCRIBE YOURSE LF FOR FREE Last week there have been new updates posted: 1. Several updates on the News page posted last week: 25/26