JANUARY 2016 SHIPOWNERS BRACED FOR A ROUGH YEAR AHEAD

Transcription

1 JANUARY 2016 SHIPOWNERS BRACED FOR A ROUGH YEAR AHEAD

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 12 SUBSEA 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; 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 VOLATILE START TO THE YEAR January was a perfect example of how volatile the North Sea spot market can be for OSV owners, particularly in the anchor handling sector. The spread of day rates for AHTS fixtures ranged from less than GBP 4,000 (a NOK 50,000 fixture) to a peak of GBP 70,000, highlighting the crucial importance of timing in this market. The weather played a significant factor in those rate swings, with charterers seeking to take advantage of the same weather windows and causing availability bottlenecks. However, one thing is immediately apparent when reflecting on the first month of this will be another extremely difficult year for owners. While some were able to secure attractive spot rates in the first half of January, by the time we neared the end of the month there was a spell where not a single AHTS vessel was engaged on a spot charter, which is almost unheard of in the North Sea. The same scenario was played out in the PSV market, where peak spot rates of GBP 15,000-16,000 were recorded in the first half of January. By the time we reached the end of the month, rates had dropped back to the GBP 3,000-4,000 level, a worrying sign for owners. SHAREHOLDERS APPROVE SHELL-BG DEAL Shareholders of both Shell and BG have voted overwhelmingly in favour of Shell s multibillion acquisition of BG. Despite the prolonged downturn in the oil industry, and despite the price of oil being considerably lower now than it was when the deal was first announced, more than 83% of Royal Dutch Shell shareholders voted in favour of the transaction at its recent General Meeting. Similarly, at BG Group s General Meeting, 99.5% voted in favour of the transaction. The acquisition is now valued at around USD 50 billion, considerably lower than the USD 70 billion value that the cash-and-shares transaction originally carried when it was first announced in April Shell s motivation behind the BG acquisition is to accelerate its growth in global LNG and deep water. The purchase will also add some 25% to Shell s proved oil & gas reserves, and provide it with enhanced positions in competitive new oil & gas projects, particularly in Australia LNG and Brazil deep water. NORWAY OFFERS 56 EXPLORATION LICENCES Norway s Ministry of Petroleum and Energy has offered 56 exploration licences following its Awards in Pre-defined Areas (APA) A total of 36 companies were offered stakes in licences, with 22 of these companies offered operatorship roles. Of the 56 licences awarded, 27 are located in the North Sea, 24 are in the Norwegian Sea, and the remaining 5 licences are situated in the Barents Sea. The APA licensing rounds incorporate the geologically best known parts of the Norwegian Continental Shelf, where the expected size of any potential discovery is decreasing. Therefore, exploration tends to be largely focused on prospects which may not be deemed viable as a stand-alone development, but which could be profitable if developed in conjunction with other discoveries and/or by utilising existing or planned infrastructure. The 22 companies that were awarded operatorship of licences were: Bayerngas (1 licence); BP (1); Capricorn (1); Centrica (1); ConocoPhillips (2); Det norske oljeselskap (6); DONG (2); Edison (3); Eni (2); Faroe Petroleum (2); GdF SUEZ (1); Lundin Petroleum (2); MOL (2); OMV (2); PGNiG (1); Pure (2); Shell (1); Statoil (13); Suncor (2); Total (2); Tullow (3); and Wintershall (4). SEABREEZE 3

4 OSV MARKET ROUND-UP TERM CHARTERS FOR WILSON TRIO Ocean Wilsons operating subsidiary Wilson Sons has been awarded term contracts by Petrobras for three of its PSVs. The transaction has been made through Wilson Sons Ultratug Offshore, a subsidiary in which Wilson Sons has a 50% interest. The three vessels, Saveiros Albatroz, Saveiros Fragata (pictured) and Saveiros Gaivota, have all been chartered for a firm period of two years with two further years of options. The 3,000t deadweight PSVs have all previously been employed on term charters with Petrobras, but they have been trading the Brazilian spot market since October Meanwhile, Wilson Sons has recently registered another of its PSVs, the Mandrião, in the REB (Special Brazilian Registry) so she can operate as a Brazilian-flagged vessel. PETROBRAS CONTRACTS FOR FARSTAD Following month after month of vessels having their charters with Petrobras terminated, it makes a pleasant change to hear of new contracts being awarded, with Farstad also the recipient of new fixtures recently. The 1999-built PSV Far Strider was awarded a four-year contract with a scheduled start date in April 2016, while the 2007-built AHTS vessel BOS Turquesa (pictured) received a one-year plus one-year option charter. The BOS Turquesa has already commenced this contract. DOF SCOOPS BRAZIL AND UK FIXTURES Norskan Offshore, the Brazilian subsidiary of DOF, has entered into a one-year contract with Petrobras for its AHTS vessel Skandi Botafogo. The charter commenced in December. Built to the UT 722 L design, Skandi Botafogo was delivered in She has a bollard pull of 181 tons. In the North Sea, ASCO Marine Ltd has entered into a contract with DOF Rederi for a one-year plus options charter of its PSV Skandi Sotra offshore the UK. This contract also commenced in December. Skandi Sotra (pictured) was built to the MT 6000 design and delivered in SEABREEZE

5 OSV MARKET ROUND-UP VROON VESSELS SUPPORTING GLEN LYON FPSO Vroon Offshore vessels VOS Chablis and VOS Prime have been chartered to provide support to BP s newbuild FPSO Glen Lyon, which has been built for the Quad 204 (Schiehallion) development west of Shetland in the UK. AHTS vessel VOS Chablis and PSV VOS Prime were mobilised to South Korea at the end of 2015, where they worked alongside Glen Lyon as it completed sea trials. They have continued to provide support to Glen Lyon since her delivery, and will accompany the FPSO during her long mobilisation to Shetland. The VOS Chablis and VOS Prime are working alongside three POSH Terasea AHT vessels - Terasea Eagle, Terasea Hawk and Terasea Osprey - which are towing the FPSO to the UK. POSH TERASEA SELECTED FOR PRELUDE SUPPORT FIVE-YEAR CHARTER FOR MMA PSV ConocoPhillips has awarded a contract to MMA Offshore for a five-year charter of its PSV Mermaid Inscription. The vessel will provide platform supply and static tow services at ConocoPhillips Bayu Undan facility, which is located in the POSH Terasea has been awarded a contract to project manage and tow the Shell Prelude FLNG platform from South Korea to Australia, and position the facility on location at the Prelude gas field. The Prelude platform, four times the size of a football pitch, is the largest offshore facility ever Joint Petroleum Development Area between Timor-Leste and Australia. Mermaid Inscription is a 2012-built PSV. She has a deck area of 1,000m², a deadweight in excess of 5,000 tonnes and accommodation for 48 persons. constructed. This means POSH Terasea will have to deploy five vessels for the job. The three vessels that are currently towing the Glen Lyon FPSO to the UK (Terasea Eagle, Hawk and Osprey) will be working alongside another large AHT vessel, Terasea Falcon (pictured), and the 16,000 bhp AHTS vessel POSH Champion. SEABREEZE 5

6 OSV RATES & UTILISATION JANUARY DAILY NORTH SEA OSV AVAILABILITY RATES & UTILISATION NORTH SEA SPOT AVERAGE UTILISATION JANUARY 2016 PSV 2016 PSV 2015 AHTS 2016 AHTS TYPE JAN 2016 DEC 2015 NOV 2015 OCT 2015 SEP 2015 AUG 2015 MED PSV 65% 78% 77% 63% 73% 69% LARGE PSV 73% 85% 78% 70% 83% 87% MED AHTS 45% 62% 33% 38% 57% 58% LARGE AHTS 57% 69% 67% 49% 50% 57% NORTH SEA AVERAGE RATES JANUARY 2016 CATEGORY AVERAGE RATE JANUARY 2016 AVERAGE RATE JANUARY 2015 % CHANGE MINIMUM MAXIMUM SUPPLY DUTIES PSVS < 900M 2 5,975 5, % 3,000 16,000 SUPPLY DUTIES PSVS > 900M 2 4,867 6, % 3,500 7,087 AHTS DUTIES AHTS < 18,000 BHP 17,294 12, % 5,500 50,000 AHTS DUTIES AHTS > 18,000 BHP 32,234 20, % 3,937 70,000 SPOT MARKET ARRIVALS & DEPARTURES MID-DEC 2015 TO JAN 2016 ARRIVALS - NORTH SEA SPOT BB TROLL EX MED FAIRMOUNT ALPINE EX USA FAIRMOUNT EXPEDITION EX SPAIN FAR SCOTSMAN EX FALKLANDS KL BREVIKFJORD EX BRAZIL ARRIVALS CONTINUED NOR CHIEF EX MED OLYMPIC ZEUS EX AFRICA TOR VIKING II EX ALASKA UNION MANTA EX USA DEPARTURES - NORTH SEA SPOT BOURBON SAPPHIRE SOUTH AMERICA MAERSK SERVER SOUTHEAST ASIA * 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, , ,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, , ,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, , ,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, , ,000 35,000 30,000 20,000 Average Day Average Rates To Day Month Rates (January To Month 2016) (June 2013) 25,000 15,000 20,000 10,000 15,000 10,000 5,000 5,000 - PSVs < 900m² PSVs > 900m² AHTS < 18,000 bhp AHTS > 18,000 bhp ,902 5,091 4,767 6,141 13,617 12,541 19,343 20, ,975-4,867-17,294-32,234 - SEABREEZE 7

8 FEATURE VESSEL SKANDI AÇU Huisman has installed the 650-tonne pipelay system on board the DOF-owned and Technip-managed pipelay vessel, Skandi Açu (pictured c/o J. Bartels), in the Netherlands. The newly installed 650-tonne vertical lay tower will be tested before the vessel leaves the yard in Schiedam in April. Upon delivery, the VARD 3 05-designed vessel will mobilise to Brazil to begin an eight-year firm contract with Petrobras at its pre-salt fields offshore Brazil. Skandi Açu, a DP 2 vessel, has a length of 151 metres. She is equipped with 2,500-tonne and 1,500-tonne underdeck carousels, as well as two work-class ROVs. The Skandi Açu s hull was constructed at Vard s Tulcea yard in Romania. She was transferred to Vard s Soeviknes yard in Norway in the fourth quarter of 2015 for final outfitting. A sister vessel to Skandi Açu, the Skandi Búzios, is scheduled for delivery later in SKANDI AÇU SPECS: Design: VARD 3 05 Hull Length: 151m Hull Breadth: 30m Carousels: 2,500t & 1,500t Dynamic Positioning: DP2 Pipe Tensioner: 650t ROVs: 2 x work-class 8 SEABREEZE

9 OSV NEWBUILDINGS, S&P VROON FLEET CONTINUES TO GROW Vroon Offshore has added two new PSVs to its fleet following their construction in China. VOS Primrose, built to an 80m Khiam Chuan Marine (KCM) design, was delivered by the Fujian Southeast Shipyard. The third in a series of eight sister vessels, VOS Primrose (pictured) has a deck area of 720m² and accommodation for 52 persons. VOS Partner, meanwhile, was built by the COSCO (Guang Dong) Shipyard. She is the third of six Ulstein PX121 PSVs to be delivered to Vroon. She has a deck area of 850m² and a deadweight of 4,200 tonnes. STRIL MAR NAMED IN SPAIN A naming ceremony was held for newbuild PSV Stril Mar on January 9th at the Astilleros Gondan Shipyard in northern Spain. The vessel has been built for Simon Møkster Shipping to Rolls Royce s UT 776 WP (Wave Piercing) design. This is based on the same design as the Stril Luna, but Stril Mar also comes with a FiFi II system with monitors installed at the stern. The Stril Mar (pictured c/o J. Martínez Rodeiro) is due to mobilise to Norway in February. She has a length of 92.8m, beam of 20.0m, a deck area of 1,030m² and a deadweight of 5,000t. PSV TRIO DELIVERED TO MEXICAN OWNER The SINOPACIFIC Shipbuilding Group has delivered three newbuild PSVs to Naviera Petrolera Integral following their construction at the Zhejiang Shipyard in China. The three vessels - Dona Paula, Don Ignacio (pictured) and Victoria I - were all built to the SPP17A design. They have a length of 61.8m, breadth of 14.0m, deadweight of 1,700mt and an accommodation capacity for 24 persons. They have all been contracted by PEMEX for long-term charters offshore Mexico that will keep them occupied until at least SECOND OF TEN PSVS DELIVERED TO ESNAAD Newbuild PSV ESNAAD 222 is on her way to the Middle East following her recent delivery by the De Hoop Shipyard in the Netherlands. She is the second of ten sister vessels being built for ESNAAD, a wholly owned subsidiary of ADNOC (Abu Dhabi National Oil Company). The vessels have a length of 65m, breadth of 15.8m and a clear deck area of 475m². Their construction is being split between De Hoop s facilities in Lobith and Foxhol. All ten are due for delivery before the end of SEABREEZE 9

10 OSV NEWBUILDINGS, S&P TWO MORE PSVS LAUNCHED FOR OTTO MARINE Two more newbuild PSVs have been launched for Otto Marine by Wuchang Shipbuilding Industry in China. The Go Matilda (pictured) and Go Mundara are the second and third vessels in a series of four units that are being built for Otto. The first vessel in the series, Go Michigan, was launched in December. The vessels are all being built to Ulstein s PX121 design, giving them a cargo deck area of approximately 850m². They will be prepared for the installation of an offshore crane and an ROV mezzanine deck. GULFMARK DELAYS NEWBUILD DELIVERY GulfMark Offshore has entered into an agreement with the Simek Shipyard in Norway to postpone the delivery of newbuild PSV North Barents. The vessel will now be delivered in January 2017 as opposed to the first quarter of The North Barents is being built to the ST-216 Arctic design. She is a sister vessel to the North Cruys and North Pomor, which are both currently fixed on term charters offshore Denmark. North Barents will have Ice-1B notation, a deadweight of more than 5,000t and a deck area of more than 1,000m². FARSTAD OFFLOADS TWO PSVS Farstad has sold two more of its older PSVs, with both vessels delivered to their new owners in January. The sale of the Far Scandia will give Farstad a booked loss of approximately NOK 8 million (USD 927,000) for the fourth quarter of The Far Scandia is a UT 705 PSV that was delivered in Meanwhile, the sale of the Lady Grace (pictured) will give Farstad a booked loss of approximately NOK 49 million (USD 5.7 million) for the fourth quarter of The Lady Grace is a UT 755 PSV that was delivered in NOR SOLAN CHRISTENED IN ABERDEEN A christening ceremony was held in Aberdeen, Scotland, in December for newbuild Field Support Vessel Nor Solan. Representing a collaboration between Singapore company Nortrans and Norwegian operator Hoyland Offshore, the Nor Solan is now supporting Premier Oil s operations at the Solan field west of Shetland. Built by Qingdao Yangfan Shipbuilding in China, the Nor Solan has an overall length of 67.2m, breadth of 16.0m and a design draft of 5.0m. She has a deadweight of around 1,700 tons without SPS notation, and 1,200t with SPS. 10 SEABREEZE

11 OSV NEWBUILDINGS, S&P ESVAGT NJORD LAUNCHED IN POLAND The Nauta Shiprepair Yard in Poland has launched a newbuild Windfarm Service Operation Vessel (SOV) that it is building for ESVAGT. The Esvagt Njord is being built to the Havyard 832 SOV design, giving her a length of 83.7m and breadth of 17.6m. She has been contracted to provide accommodation and equipment/personnel transfer services at the Statoil-operated Dudgeon windfarm offshore the UK. Operations are scheduled to commence in autumn The Esvagt Njord will have the capacity to accommodate 40 wind turbine technicians. BIBBY ORDERS DAMEN WINDFARM SOV Bibby Marine Services Limited, part of the Bibby Line Group, has signed a contract with the Damen Shipyards Group for the delivery of its first SOV with walk-to-work access. The Bibby WaveMaster 1 is being targeted at offshore wind project work in the North Sea. She is being purpose-built for the transfer and accommodation of offshore personnel, with a capacity for 45 turbine maintenance workers and 15 crew members. She will have a length of 90m, and her bow section has been lowered by 1.5m. This creates a V-shape which should significantly reduce vessel slamming. UNIQUE DIAMOND EXPLORATION VESSEL LAUNCHED IN NORWAY Kleven Verft has launched a unique diamond sampling and exploration vessel at its shipyard in Ulsteinvik, Norway. The Nujoma is being built for De Beers Marine Namibia, with delivery scheduled for June She will then sail for South Africa for final installation of key equipment, with commissioning scheduled for the first half of The Nujoma is being built to a modified version of Marin Teknikk s MT 6022 design. The 113m long vessel will have a displacement of 12,000 tons and an accommodation capacity for 80 persons. RECENT DELIVERIES OF NEWBUILD OSVS NAME TYPE/DESIGN OWNER/ MANAGER COMMITMENT DONA PAULA SPP17A PSV NAVIERA PETROLERA INTEGRAL MEXICO DON IGNACIO SPP17A PSV NAVERIA PETROLERA INTEGRAL MEXICO ESNAAD 222 DE HOOP 65M PSV ESNAAD MIDDLE EAST NOR SOLAN 67M ERRV HOYLAND OFFSHORE NORTH SEA VICTORIA I SPP17A PSV NAVIERA PETROLERA INTEGRAL MEXICO VOS PARTNER ULSTEIN PX121 PSV VROON OFFSHORE TBC VOS PRIMROSE 80M KCM PSV VROON OFFSHORE TBC SEABREEZE 11

12 SUBSEA SUBSEA MARKET ROUND-UP Last year was a difficult one for the offshore industry, as the market tried to come to terms with the declining oil price. The response from oil & gas companies was to delay or cancel projects wherever possible. This resulted in many Final Investment Decisions (FIDs) being delayed, with many projects remaining unprofitable despite cost cuts as the oil price continued to fall. Long before the start of 2016 began, we knew it was going to be another tough year as fewer companies could utilise their subsea vessels on backlog projects. However, the continued fall in oil prices to USD a barrel has started a new series of negotiations for further reductions down the supply chain. The outcome of this could see even more companies forced into liquidation than last year, presenting further merger and acquisition opportunities. With Saudi Arabia holding firm and refusing to reduce its production levels, and with sanctions on Iran being lifted, no quick fix is in sight, and companies operating in the offshore market are braced for more tough times ahead. While all this is negative, let s not forget that the market will at some point start to rebound, and fossil fuel demand is projected to continue growing in the longterm. Identifying precisely when the market will turn remains ULTRA DEEP SOLUTIONS BUCKING THE TREND Going against the general trend of delaying newbuilds, Ultra Deep Solutions has signed a contract with the Wuchang Shipbuilding Industry Group for the construction of up to two diving and construction vessels for delivery in mid to late The vessels will be built to a newly developed MT6023 DSCV design, and will be equipped with an 18-man diving system for operations down to 300m. They will have a length of 103m and accommodation for 120 persons, and they will be equipped with two heave compensated subsea cranes, one 150-tonne offshore crane with depth capability to 3,000m, and one 20-tonne offshore crane for operations down to 300m. There will also be arrangements for the installation of two work-class ROVs for operations down to 3,000m. Marin Teknikk will provide the design and engineering of the vessels. difficult, with some analysts projecting the start of a recovery before the end of 2016, while others project weak conditions until as far out as One theory is that the further the oil price drops (with some projecting as low as USD 10 a barrel), the bigger the rebound will be. At these levels the excess supply will be quickly consumed, as projects will continue to be delayed and demand will inevitably start to outstrip supply once again. The market has to ensure that when a recovery does begin, we have enough players left with the specialist knowledge to participate in this recovery without reverting to the high costs that contributed to this situation in the first place. It is understood that the first vessel due out of the yard will be called Andy Warhol and the second unit, which should have its order confirmed by April 2016, will be named Henri Matisse. Ultra Deep has commented that they will continue to move forward with their goal of building more than 20 vessels by The company already has five multipurpose vessels on order from the China Merchants Heavy Industries shipyard in China, due for delivery between early 2017 and mid SEABREEZE

13 SUBSEA DEEPOCEAN AWARDED TEN PROJECT Tullow Oil has awarded a contract extension to the Deep- Ocean-managed IMR vessel REM Forza for work at the Tweneboa, Enyenra and Ntomme (TEN) project offshore Ghana. The REM Forza will continue to provide accommodation support, commissioning support and construction/survey support on the TEN project under a contract that commenced in February If all options are exercised, this could see the vessel remain on the project until September. Rem Offshore recently entered into an agreement to sell the MT 6022-designed vessel to Maersk Supply Service. The transaction is due to be completed in the first quarter of 2016 with no impact on the existing contract with DeepOcean. The sale will give Rem Offshore a booked profit and net cash of around NOK 200 million after repayment of debt. TECHNIP SELLS TWO VESSELS Technip has recently sold its 1980-built pipelay vessel Deep Constructor to Stabbert Marine, and the vessel has since been renamed as Ocean Constructor. The DP2 unit has a length of 126m, a max lift of 300t and accommodation for 199 persons. Meanwhile, Bisso Marine has purchased the Global Iroquois barge from Technip, and renamed her the Bisso Iroquois. The pipelay barge has a length of 122m and accommodation for 256 persons, and she can lay pipe with a diameter of 55.5 inches. Bisso Marine acquired the vessel in an effort to upgrade its pipelaying capabilities. REM OFFSHORE DELAYS NEWBUILD Rem Offshore has delayed the delivery of its VARD 2 06 design newbuild OCV from the VARD Brattvaag shipyard in Norway. The delay is due to the market conditions. After reaching an agreement with VARD, the newbuild will now be delivered during the first quarter of The OCV was originally ordered in June 2014; she will have a length of 100m, a 150t crane and accommodation for 90 persons. SEVEN CRUZEIRO LAUNCHED Subsea 7 s PLSV Seven Cruzeiro was named and launched in January at Royal IHC s Krimpen aan den IJssel yard in the Netherlands. Upon delivery, the vessel will begin a five-year charter with Petrobras, where it will transport and install flexible flowlines and umbilicals in water depths of up to 3,000m. The 550t pipelaying vessel has DP2, a max lift of 400t and accommodation for 120 persons. She is due to start working in the fourth quarter of SEABREEZE 13

14 SUBSEA TIDEWATER CHARTERS BRANDON BORDELON Tidewater Subsea has chartered the Jones Act-compliant IMR vessel Brandon Bordelon for a 60-day firm period plus options. Tidewater has mobilised two FMC HP 150 ROVs onto the vessel for the campaign. Brandon Bordelon has a length of 80m, a 60t AHC crane and accommodation for 60 persons. NORMAND VISION ENTERS THE RENEWABLES MARKET Ocean Installer has been awarded a contract by Norddeutsche Seekabelwerke GmbH for work on the Gode wind farm, which is being developed in th German North Sea by DONG Energy. The contractor will utilise the OCV Normand Vision for the campaign, which involves the recovery of two pre-laid HVAC export power cables in the 500m zone of the Gode Wind 1 offshore sub-station, relay of the cable, installation of the centraliser cable protection system, and pull-in to the transformer platform. This will be the vessel s first project within the renewable energy sector. MAERSK CONNECTOR UNDERGOES SEA TRIALS The cable installation vessel Maersk Connector, owned and SUBSEA 7 TO WORK ON NILE DELTA Burullus has awarded Subsea 7 a contract to cover the platform extension and tie-in on the first phase of the West Nile Delta development of the Taurus and Libra fields, which are operated by BP offshore Egypt. operated by Maersk Supply Service, has been undertaking sea trials in the Black Sea. The DP2, 138m long vessel, built by Damen Shipyards Galati in Romania, is equipped with survey and trenching capabilities, a 7,000 tonne carousel, The DP2 DSV Rockwater 2 will undertake the campaign as the main hook-up and accommodation vessel, with operations due to start in the second half of Meanwhile, derrick pipelay vessel Seven Borealis will perform the offshore accommodation for 90 people and a 50t AHC crane. The DOC 8500-designed Maersk Connector will be contracted on a seven-year charter agreement with Dutch subsea services company DeepOcean following her delivery in February lift of the platform extension, and the newbuild VS 4285 HCV Seven Arctic will install the umbilical. The Seven Arctic is due to be delivered from the Hyundai Heavy Industry yard in South Korea in the first half of 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 FEB ISLAND VENTURES II ISLAND VENTURE - ULSTEIN OCV SX165 FEB SUBSEA 7 SEVEN SUN PETROBRAS MERWEDE PIPELAY 550 APR TECHNIP SKANDI ACU PETROBRAS VARD SOEVIKNES PIPELAY VARD 3 05 APR 14 SEABREEZE

15 RIGS OIL PRICE VS RIG UTILISATION STENA DRILLSHIP RETURNING TO WORK ExxonMobil has awarded a oneyear firm contract to ultra-deepwater drillship Stena Carron. The rig, which has been idle in the Canary Islands since late 2014, was due to start working for ExxonMobil offshore Guyana RIG UTILISATION AND DAY RATES UTILISATION JAN 2016 JAN 2015 in late January. The charter has a day rate of USD 235,000, with one priced six-month option and further market rate options also available. ExxonMobil made a large oil discovery at its Liza-1 well offshore Guyana in TRINIDAD CHARTER FOR ROWAN JACKUP BP has awarded a contract to Rowan Companies for a longterm charter of its 2011-built jackup Joe Douglas offshore Trinidad. The contract, with an estimated duration of 300 days, JAN 2014 JAN 2013 JAN 2012 NORTHWEST EUROPE 74.7% 94.9% 98.9% 96.7% 94.7% SOUTH AMERICA 85.7% 91.3% 96.4% 97.1% 96.8% US GULF 41.4% 58.1% 73.7% 71.6% 63.3% RECENT DAY RATE BENCHMARKS LOW (USD) HIGH (USD) UK HARSH HIGH SPEC JACKUP 180, ,000 NOR HARSH HIGH SPEC JACKUP 295, ,800 UK HARSH STANDARD SEMISUBS 200, ,000 NOR HARSH HIGH SPEC SEMISUBS 179, ,000 GLOBAL ULTRA-DEEPWATER SEMISUBS 150, ,000 GLOBAL ULTRA-DEEPWATER DRILLSHIPS 230, ,000 Source: IHS-Petrodata 100% 90% 80% 70% 60% 50% 40% 94.9% 93.6% 93.5% 93.5% 91.3% 92.8% 92.2% 91.8% comes with a day rate of USD 157,000. Operations are due to commence in August 2016 following the conclusion of the rig s current charter with BHP Billiton, also offshore Trinidad. 90.1% 87.7% 85.2% 85.7% 85.5% 87.2% 86.1% 87.2% 85.7% 89.5% 84.4% $ % $ % $ % $ % $55.79 $ % 75.9% 74.7% $48.42 $46.99 $47.23 $48.12 $45 $ % $ % 54.9% $ % $ % 52.0% 52.5% $ % $ % 41.4% 45.5% 44.5% 44.4% $25 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Average Brent Crude US$ / Bbl Northwest Europe Rig Utilisation South America Rig Utilisation US Gulf Rig Utilisation INACTIVE RIGS NORTHWEST EUROPE NAME TYPE STATUS $80 $75 $70 $65 $60 $55 $50 BORGNY DOLPHIN SS COLD STACK BREDFORD DOLPHIN SS WARM STACK COSLPIONEER SS WARM STACK DEEPSEA ATLANTIC SS WARM STACK ENERGY ENDEAVOUR JU COLD STACK ENERGY ENHANCER JU WARM STACK ENSCO 70 JU WARM STACK GSF GALAXY II JU COLD STACK GSF GALAXY III JU COLD STACK GSF MONARCH JU COLD STACK GSP SATURN JU WARM STACK HERCULES TRIUMPH JU WARM STACK NOBLE REGINA ALLEN JU WARM STACK OCEAN GUARDIAN SS WARM STACK OCEAN NOMAD SS COLD STACK OCEAN PRINCESS SS COLD STACK OCEAN VANGUARD SS COLD STACK PARAGON C462 JU WARM STACK ROWAN STAVANGER JU WARM STACK SCARABEO 5 SS WARM STACK SEDCO 711 SS WARM STACK SEDCO 712 SS WARM STACK SEDCO 714 SS WARM STACK SERTAO DS WARM STACK SONGA TRYM SS WARM STACK STENA SPEY SS WARM STACK TRANSOCEAN BARENTS SS WARM STACK TRANSOCEAN JOHN SHAW SS WARM STACK TRANSOCEAN PROSPECT SS COLD STACK TRANSOCEAN SEARCHER SS COLD STACK WEST NAVIGATOR DS COLD STACK WEST PHOENIX SS WARM STACK WEST VENTURE SS WARM STACK WILHUNTER SS WARM STACK SEABREEZE 15

16 CONUNDRUM CORNER, DUTY PHONES TRANSOCEAN KEEPS ARCTIC BUSY Transocean has been successful at picking up a number of new contracts recently that will keep its harsh-environment semisubmersible Transocean Arctic well utilised despite the difficult market conditions. The rig is scheduled to conclude its current commitment with Rig Management Norway this quarter, and as recently as late November Transocean had no more work lined up for her. At that time, the contractor secured a new fourwell (250-day) contract with Det Norske Oljeselskap, although this is not due to start until December This left Transocean Arctic available for most of this year. Transocean has now secured an additional one-well charter for the rig with Faroe Petroleum offshore the UK, and another one-well contract with ENGIE offshore Norway. The Faroe work will take place this summer, with the ENGIE work to follow in the third quarter of this year. CONUNDRUM CORNER The answer to last month s teaser :- Rearrange the following letters to give a wellknown proverb with an associated meaning: STROLLER ON GO AMASSES NOTHING The correct answer was :- A Rolling Stone Gathers No Moss This month, our poser is as follows: What numbers should replace the question marks in the fourth triangle? Answers back to chartering@seabrokers.co.uk for a chance to win a bottle of wine. 16 SEABREEZE 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 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