JUNE 2016 NORTH SEA RATES START TO RISE... BUT A LONG CLIMB LIES AHEAD

JUNE 2016 NORTH SEA RATES START TO RISE... BUT A LONG CLIMB LIES AHEAD

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 1982. 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, email: 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 www.seabrokers-group.com

OSV MARKET ROUND-UP SPOT RATES RISE AGAIN IN NORTH SEA Trading conditions have continued to improve for vessel owners in the North Sea, with spot rates continuing to rise recently (especially in the PSV market). Average PSV spot rates were north of GBP 10,000 (NOK 110,000) in June, the first time the monthly average has been above GBP 10,000 since October 2014. It makes a pleasant change to see some PSV owners turning a profit on spot fixtures, although a full market recovery will be a long slog, with term fixture rates still languishing around the GBP 5,000-9,000 level. This remains well below the GBP 15,000-16,000 rates that owners were fetching a couple of years ago. The AHTS market also experienced periods of extremely limited availability last month, initially sparked when Statoil chartered no fewer than nine vessels on June 3rd. At the end of a fixing spree that saw the Boa Bison, Boa Jarl, Havila Jupiter, Havila Venus, Island Valiant, Magne Viking, Olympic Hera, Olympic Zeus and Siem Opal all chartered, the market was almost sold out. Availability remained in relatively short supply for most of June, with Boa Offshore and Viking Supply Ships picking up the most lucrative fixtures at NOK 700,000 (almost GBP 60,000) for the Boa Bison and Loke Viking respectively. NORTH SEA PSVS BROUGHT OUT OF LAYUP With the arrival of summer leading to an increase in PSV demand in the North Sea, a number of owners have seized the opportunity to secure new term charters to bring vessels out of layup. In Norway, Farstad picked up a six-week firm contract for the Far Serenade with Statoil. Having been idle since September 2015, the vessel returned to work in mid-june, and is now committed until late July with 28 additional daily options available to Statoil. Farstad has also managed to get another of its PSVs, the Far Server, back into service recently on a term charter with Grieg Seafood in Shetland. Prior to commencing this charter, the Far Server had been laid up for around a year. IRELAND AWARDS 14 MORE LICENCES Ireland s Department of Communications, Energy and Natural Resources has offered 14 more offshore Licensing Options from its 2015 Atlantic Margin Licensing Round. A total of 28 new Licensing Options have now been awarded from the process. In this second and final phase of awards, licences were granted to: AzEire (operatorship of 2 blocks); Capricorn (1 block); Europa (4 blocks); Faroe Petroleum (1 block); Petrel (2 Also in Norway, Volstad Maritime has been able to bring Volstad Viking back into service after more than six months in layup. Volstad has picked up a one-well contract for the vessel with Ross Offshore to support drilling operations with semisubmersible Borgland Dolphin. Meanwhile, GulfMark PSV North Promise returned to work having previously been laid up in Norway since October 2015. The vessel started a 28-day firm charter with Maersk Oil in the UK sector in mid-june. Island Offshore has also been able to reactivate one of its laidup PSVs recently, with the Island Dawn relocating from Norway to West Africa to underake a term charter with Tullow Ghana. blocks); Predator (1 block with Theseus as partner); Providence Resources (1 block with Sosina as partner); Ratio (1 block); and Scotia (1 block). A first batch of 14 blocks were awarded in February, with licences granted to: Eni (operatorship of 1 block); Europa (1 block); ExxonMobil (2 blocks with Statoil as partner); Nexen (4 blocks); Scotia (1 block); Statoil (4 blocks with ExxonMobil as partner); and Woodside (1 block). SEABREEZE 3

OSV MARKET ROUND-UP BARENTS FIXTURES FOR BOURBON AND ISLAND Lundin Petroleum has awarded term fixtures to Bourbon Offshore and Island Offshore to support its forthcoming drilling programme with Ocean Rig semisubmersible Leiv Eiriksson in the Barents Sea. AHTS vessel Bourbon Arctic (pictured c/o H. Otneim) and PSV Island Contender have been contracted for a firm period of three wells with six further one-well options. The first well of the campaign, due to commence in July, will be an appraisal well at the Alta discovery in Block 7220/11. The firm three wells are estimated to take around 160 days to drill. To fulfil Lundin s requirements for this campaign, the Island Contender has been upgraded to a DE-ICE classification. She is a 2012-built UT 776 CDG PSV; the Bourbon Arctic is a VARD 2 12 Arctic AHTS that was just delivered in February this year. CNR SELECTS K LINE PSV K Line Offshore has received a contract from CNR International for a term charter of PSV KL Brevikfjord in the UK sector. The vessel has been fixed for a firm period of one year, with three one-year options. She has recently been supporting CNR at the Ninian field offshore Shetland on a spot charter, ahead of commencing her new term contract in July. The KL Brevikfjord is an STX PSV 06 CD vessel delivered by the Aker Brevik yard in Norway in 2010. Following her delivery, she worked offshore Brazil for five years before returning to the North Sea. TROMS CASTOR WORKING FOR APACHE Apache North Sea Limited has awarded a five-month plus two one-month options contract to PSV Troms Castor. The vessel will provide platform supply and drilling support at Apache s UK assets. This will include semisubmersible WilPhoenix, which has just returned to work with Apache following a period inshore in Teesside, UK. Meanwhile, Troms Offshore has also recently secured a six-week firm charter for PSV Troms Artemis with Statoil. This will keep her busy until at least late July. 4 SEABREEZE

OSV MARKET ROUND-UP STATOIL RETAINS UGLAND AND HAVILA PSVS Statoil has awarded a contract to Havila Shipping for a one-year plus four six-month options charter of PSV Havila Foresight. A similar contract was also awarded to Ugland Offshore for an equivalent charter of PSV Juanita (pictured). The Havila Foresight s new contract is in direct continuation of a previous contract the vessel had with Statoil. She is now firmly committed until at least July 2017. The Havila Foresight is a 2007-built MT 6010 MkII PSV with a deck area of 1,046m², a deadweight of 4,785t and an accommodation capacity for 30 persons. The Juanita has also been kept on by Statoil in direct continuation of her previous contract. She is a 2014-built SALT 100 PSV with a deck area of 1,016m², a deadweight of 5,456t and an accommodation capacity for 24 persons. BP TAKES DESS TRIO TO EGYPT Deep Sea Supply has been awarded new term charter contracts for three of its PSVs with BP offshore Egypt. The Sea Swift has been awarded a two-year plus one-year option contract, while the Sea Spear (pictured c/o J. Mikelic) and Sea Spark were awarded one-year plus one-year option fixtures. All three vessels are due to commence their new contracts early in the third quarter of this year. They are all Ulstein PX 105 PSVs that were built in China by Sinopacific and delivered in 2013 or 2014. EXXON FIXTURES FOR SECUNDA Siem Offshore, through its wholly-owned subsidiary Secunda Canada LP, has been awarded term contracts for two of its PSVs with ExxonMobil Canada. The Siem Hanne (pictured) and Venture Sea have been chartered for a period of approximately three years, with further options available, with the vessels continuing to provide support to ExxonMobil at the Sable Project offshore Nova Scotia. Siem Offshore recently became the 100% owner of Secunda after acquiring a 50% interest from Birch Hill in May 2016. SEABREEZE 5

OSV RATES & UTILISATION JUNE 2016 - DAILY NORTH SEA OSV AVAILABILITY 26 24 22 20 18 16 14 12 10 8 6 4 2 0 RATES & UTILISATION PSV 2016 PSV 2015 AHTS 2016 AHTS 2015 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NORTH SEA SPOT AVERAGE UTILISATION JUNE 2016 TYPE JUN 2016 MAY 2016 APR 2016 MAR 2016 FEB 2016 JAN 2016 MED PSV 80% 81% 83% 70% 72% 65% LARGE PSV 96% 86% 81% 67% 80% 73% MED AHTS 66% 46% 37% 42% 29% 45% LARGE AHTS 76% 56% 53% 62% 55% 57% NORTH SEA AVERAGE RATES JUNE 2016 CATEGORY AVERAGE RATE JUN 2016 AVERAGE RATE JUN 2015 % CHANGE MINIMUM MAXIMUM SUPPLY DUTIES PSVS < 900M 2 10,051 3,746 +168.31% 4,500 18,000 SUPPLY DUTIES PSVS > 900M 2 11,365 4,455 +155.11% 5,800 18,000 AHTS DUTIES AHTS < 18,000 BHP 18,557 19,513-4.90% 9,900 24,000 AHTS DUTIES AHTS > 18,000 BHP 22,921 25,046-8.48% 8,469 59,285 SPOT MARKET ARRIVALS & DEPARTURES JUNE 2016 ARRIVALS - NORTH SEA SPOT BOURBON TOPAZ EX WEST AFRICA HIGHLAND VALOUR EX CENTRAL AMERICA NORMAND IVAN EX ASIA SKANDI STORD EX SOUTH AMERICA DEPARTURES - NORTH SEA SPOT REM ARCTIC RUSSIA * Vessels arriving in or departing from the North Sea term/layup market are not included here. 6 SEABREEZE

NORTH SEA AVERAGE SPOT RATES NORTH SEA AVERAGE SPOT MONTHLY RATES 40,000 12,500 PSVs < 900m² 10,000 All Cargo 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 2015 5,091 5,389 3,687 2,818 2,478 3,746 3,844 3,752 6,584 3,336 5,211 8,195 2016 5,975 4,286 4,183 3,992 7,349 10,051 - - - - - - 15,000 12,500 10,000 10,000 7,500 PSVs < > 900M² 900M2 900m² 5,000 5,000 2,500 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 6,141 6,429 4,886 3,699 2,921 4,455 4,610 5,126 5,930 3,185 5,340 8,106 2016 4,867 4,659 4,104 4,308 6,625 11,365 - - - - - - 40,000 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 2015 12,541 10,497 15,578 9,332 13,101 19,513 10,783 8,156 5,929 5,148 6,714 30,385 2016 17,294 23,823 16,000 10,983 6,808 18,557 - - - - - - 50,000 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 2015 20,863 16,171 18,184 13,617 19,461 25,046 15,113 12,176 8,809 6,035 9,983 45,377 2016 32,234 27,884 16,607 24,405 13,029 22,921 - - - - - - 25,000 20,000 Average Day Average Rates To Day Month Rates (June To 2016) Month (June 2013) 15,000 10,000 5,000 - PSVs < 900m² PSVs > 900m² AHTS < 18,000 bhp AHTS > 18,000 bhp 2015 3,902 4,767 13,617 19,343 2016 5,998 5,397 16,401 22,718 SEABREEZE 7

FEATURE VESSEL SOUTHERN STAR Tasik Subsea s DP3 dive support vessel Southern Star has been launched at the Fujian Mawei Shipyard in China. She is scheduled to come into service in January 2017. Following delivery, the 112m Southern Star is expected to commence a five-year bareboat charter in Southeast Asia. Industry sources suggest that the term charter is with Fugro but this has yet to be confirmed. The vessel is equipped with two moonpools, and she has a 300m-rated, in-built 15-man saturation diving system. The Southern Star will be fitted with a 150-tonne active heave-compensated crane, accommodation for 120 persons, and she will have two self-propelled hyperbaric lifeboats. Additionally, her ROV hangar can house two work-class ROVs. The vessel is designed to carry out inspection, repair and maintenance work, and perform subsea, umbilical, riser and flowline installation as well as ROV support and geophysical survey campaigns. As well as having an ABSclassed saturation diving system complete with a 3-man diving bell, the vessel is equipped with two air dive stations with two DDCs, dedicated LARS and dive control. SOUTHERN STAR SPECS: Overall Length: 112m Moulded Breadth: 24m Draft: 6.5m Deadweight: 4,500 tonnes Cargo Deck Area: 1,000m² Service Speed: 12.0 knots Accommodation: 120 persons Moonpool: 7.2m x 7.0m Bell Moonpool: 3.6m x 3.6m Crane: MacGregor 150t AP2C1 Helideck: Sikorsky S92/S61N Dynamic Positioning: DP3 Dive System: 15-man Dive Depth: 300m 8 SEABREEZE

OSV NEWBUILDINGS, S&P MAERSK LAUNCHES FIRST STARFISH AHTS VESSEL The Fujian Southeast Shipyard in China has delivered VOS Challenge, the first of six sister vessels it is building for Vroon Offshore. The AHTS vessels are being built to a KCM design, with a length of 65m and breadth of 16.4m. They have a bollard pull of 85 tonnes, a deck The first of six newbuild AHTS vessels being built for Maersk Supply Service has been launched at the Kleven Verft Shipyard in Norway. Built to the SALT 200 design, the Starfish vessels have a length of 95m and beam of 25m. Powered by five medium speed engines with a FUJIAN DELIVERS FIRST OF SIX AHTS VESSELS TO VROON area of 425m² and accommodation for 39 persons. Following mobilisation from China, the VOS Challenge will commence her maiden charter offshore Thailand, where she has been contracted by PTTEP to support its drilling activities at the Arthit and Bongkot fields. total output of more than 23,000 bhp, they will have a bollard pull of 230 tonnes. The six vessels are being built by Maersk with a total budget in excess of USD 500 million. They are all scheduled for delivery in 2017, with the first unit due in the first quarter of next year. REM NEWBUILD CANCELLED AT VARD VARD has agreed in principle with Rem Offshore to terminate a shipbuilding contract for a Construction and Anchor Handling Vessel. The NOK 800 million order was placed in June 2014 for a VARD 2 06 vessel with a crane capacity of 150 tons and a bollard pull of 400 tons. Delivery was originally scheduled for the first quarter of 2016 but later delayed until 2018 so the vessel is still in the early stages of construction. As part of a wider restructuring plan for Rem Offshore, VARD is to receive 4% of the total issued shares in Rem Offshore (post restructuring) as compensation. NEWBUILD ESVAGT MPV FOR HESS CONTRACT Esvagt has ordered a newbuild Havyard 832 MPV at the Cemre Shipyard in Turkey to fulfil a new contract with Hess offshore Denmark. Having worked together at the South Arne field for 17 years, Esvagt and Hess have extended this commitment for 12 more years. The Esvagt Connector, which recently replaced the Esvagt Omega, will continue working at South Arne until the newbuild MPV takes over in 2018. The new unit will have a deck area of 620m², a bollard pull of 100 tonnes, a speed of 15 knots and a rescue capacity for 150 persons. SEABREEZE 9

OSV NEWBUILDINGS, S&P STARNAV CYGNUS DELIVERED IN BRAZIL Starnav Serviços Marítimos has accepted delivery of newbuild PSV Starnav Cygnus, the last in a series of three sister vessels that were built at the Detroit Brasil Shipyard in Itajaí, Brazil. The vessels were ordered by Starnav following the fifth round of Petrobras Prorefam V (fleet renewal) process to fulfil eightyear firm contracts. The vessels were built to the GPA 688 SC design, meeting Petrobras PSV 4500 criteria. HERCULES JOINS GULFMARK FLEET Newbuild PSV Hercules has joined GulfMark s fleet in North America following her delivery by the BAE Systems Shipyard in Alabama, USA. The 300 Class PSV has a length of 87.9m, a breadth of 18.8m and a deck area of 1,000m². She has a deadweight of 5,250t and an accommodation capacity for 60 persons. She comes equipped with Class II FiFi capabilities. TWO NEWBUILDS FOR PACIFIC RADIANCE; BUT TWO MORE CANCELLED Pacific Radiance recently accepted delivery of two new Maintenance Work vessels (Crest Centurion 1 and 2) from the Fujian Southeast Shipyard in China. However, the owner has also recently rescinded two ATLANTIC NAVIGATION ORDERS SEVEN NEWBUILDS Atlantic Navigation Holdings (Singapore) Ltd has signed Shipbuilding Agreements with the Wuchang Shipbuilding Industry Group in China for five newbuild Maintenance vessels and two newbuild AHTS vessels. The seven units are being built at a total cost of USD 45 million. Following delivery in the third quarter of 2017, they will be mobilised to the Middle East for five-year firm charters, understood to be with Saudi Aramco. construction contracts with Shanghai Waigaoqiao Shipbuilding and China Shipbuilding Trading (Shanghai). This relates to shipbuilding contracts for the construction of two newbuild Ulstein PX121 PSVs. RECENT DELIVERIES OF NEWBUILD OSVS NAME TYPE/DESIGN OWNER/ MANAGER COMMITMENT CREST CENTURION 1 85M MAINTENANCE VESSEL PACIFIC RADIANCE TBC CREST CENTURION 2 85M MAINTENANCE VESSEL PACIFIC RADIANCE TBC HERCULES 300 CLASS DP2 PSV GULFMARK TBC STARNAV CYGNUS GPA 688 SC PSV STARNAV SERVICOS SOUTH AMERICA VOS CHALLENGE 65M KCM AHTS VROON OFFSHORE SOUTHEAST ASIA 10 SEABREEZE

SUBSEA SUBSEA MARKET ROUND-UP ETHOS OFFSHORE NO MORE? IHS-Petrodata has reported that Ethos Offshore, the company very recently formed after a management buyout of Over the past few weeks we have seen a flurry of activity in the subsea market with more requirements being released. Unfortunately the market fundamentals remain the same and confidence in the sector remains low. This is evident with Subsea 7 announcing that they plan to reduce their global workforce to around 8,000 by early 2017. This is down from the 13,000 reported at the end of 2014, a reduction of 38.5% in just over two years. Additionally, up to five vessels are scheduled to leave Subsea 7 s active fleet by early 2017, based on stacking owned vessels and returning chartered vessels when existing contracts expire. One of the chartered in vessels due to be returned to its owner is pipelay vessel Normand Seven during September 2016. Subsea 7 has agreed with Petrobras to Harkand s North American and African business units, is to no longer continue as a business. In early June there were reports within the market that Chevron had cancelled its three-year IRM contract for Ethos Offshore s substitute the chartered in VS 4220-designed pipelay vessel Normand Seven with the owned Seven Mar from late June. Petrobras day rate contract with Subsea 7 is firm until the fourth quarter of 2018 with additional options remaining thereafter. The 2001-built Seven Mar has a length of 145m, a 340t top tension flexible lay system, two 1,600t below deck carousels and accommodation for 121 persons. diving support vessel Swordfish. The DP2 vessel had been owned by Harkand but ownership was taken over by Ethos in May after Harkand was forced into administration. TECHNIP CHARTERS BOA SUB C Technip has awarded Boa Offshore a contract for light construction, heavy lift and possible umbilical lay operations in the Gulf of Mexico for up to five months including mobilisation and options. Boa will utilise the OCV Boa Sub C on the campaign. The VS 4201-designed vessel is outfitted with a 400t AHC main crane, a 30t AHC crane, two work-class ROVs and a 2,500t carousel. Additionally, Boa will also provide the project and construction crew. The vessel will mobilise for the scope upon completion of its current project in West Africa which is anticipated to conclude at the end of June. MARIA S SUBSEA TEMPLATES INSTALLED Subsea 7 has installed the subsea templates on Wintershall s Maria field development in the Norwegian Sea. The OSCV 06 L-designed Normand Oceanic, which has a length of 156.9m and a 400-tonne heave compensated crane, transported the two 285-tonne templates and installed them in a water depth of 300 metres. The Maria field is due to commence production in late 2018 and will produce around 180 million boe. The investment in the field, which is estimated to produce for 23 years, is around NOK 15.3 billion. SEABREEZE 11

SUBSEA PETROBRAS LOOKS TO SKANDI NITERÓI Petrobras has awarded DOF an eight-month firm plus eight months option contract for MERMAID CHARTERS IN DSV PT Seascape Surveys is responding to an anticipated continuing demand for subsea services in both Indonesia and the rest of the South East Asian region by re-chartering the DP2 DSV Mermaid Nusantara from PT Nusa Perkasa Permai. The 2010-built vessel is due to be its Brazilian-built pipe-laying support vessel Skandi Niterói. The contract commenced during the latter half of June for the 2011-built vessel. Back in 2011, a joint venture between DOF and Technip was awarded a flexible pipelay contract by Petrobras for the Skandi Niterói. The vessel was awarded a four and a half year contract delivered to Seascape in August 2016 to commence the one-year charter, with a one-year option. The Indonesian-flagged vessel will undertake IRM work as well as performing saturation diving for construction support, ongoing field maintenance and call-out repair. Mermaid for flexible pipeline installation and retrieval offshore Brazil. Additionally, under a similar joint venture with Technip, the 2010-built Aker OSCV 06-designed Skandi Vitória was awarded a new contract by Petrobras securing utilisation for the remainder of 2016. Nusantara has a 15-man built-in saturation diving system and air diving system, a 50t crane with accommodation for 120 persons. SOLSTAD SIGNS FRAME AGREEMENT WITH TECHNIP Solstad Offshore has entered into a frame agreement with Technip Norge AS and Technip UK Limited for the supply of vessels for trenching, construction and subsea services. The frame agreement is valid between 2016 and 2018. Under the agreement Technip will utilise two construction support vessels (Normand Pioneer and Normand Progress) and two AHTS vessels (Normand Mariner and Normand Ranger). This alliance means Solstad will be Technip s supplier of tonnage for trenching and subsea construction work. JASCON 34 TO WORK ON MALIKAI Sea Trucks has secured a contract to provide a flotel to Shell s deepwater Malikai development offshore Malaysia. Sea Trucks will utilise the DP3 accommodation, pipelay and heavy lift vessel Jascon 34 for the campaign, which has a firm period of two months, with options to extend. Under the contract the Jascon 34 will provide accommodation support for 200 construction personnel. The vessel features accommodation facilities for up to 335 persons and she will be connected to the Malikai tension leg platform via its active heave-compensated telescopic gangway. 12 SEABREEZE

SUBSEA NEW PARTNER ENTERS EMAS CHIYODA Japan s Nippon Yusen Kabushiki HELIX S CONTRACT DEFERRED Helix Energy Solutions and Petrobras have delayed the start of two well intervention service contracts offshore Brazil with a reduced day-rate for one contract. The renegotiated terms cover the Siem Helix 1 and the Siem Helix 2 well intervention vessels. Helix entered into an agreement to charter the two newbuilds, currently under construction, from Siem Offshore in February Kaisha (NYK) will acquire 25% of EMAS Chiyoda Subsea. The new shareholding structure of EMAS Chiyoda Subsea will comprise Ezra 40%, Chiyoda 35%, and NYK 25%. Prior to the deal completing the company was owned 50/50 between Ezra and Chiyoda. NYK has recently been expanding 2014 and agreed with Petrobras to provide well-intervention services for an initial period of four years with options to extend. The Siem Helix 1 was originally scheduled to begin no later than July 22, 2016. This was amended to start between July 22, 2016 and October 21, 2016. In addition, the day-rate under the contract has been reduced. Meanwhile the Siem Helix 2, originally scheduled KENZ TO SUPPLY CRANES TO HEEREMA Heerema Marine Contractors have awarded Kenz Cranes a contract to design and produce two knuckle boom cranes, which will replace the existing units on derrick pipelay barge Aegir. Kenz Cranes will design a 200-tonne active heave compensated knuckle-boom crane with a deepwater winch suitable for water depths of 3,300 metres with an outreach of 50 metres. The second knuckle boom is a its business in offshore oil and gas exploration to offer seismic, drilling, production, shuttle transportation services, and now subsea EPCI. The transaction is due to close by the third quarter of calendar year 2016, subject, amongst other things, to approval from Ezra s shareholders. to begin no later than January 21, 2017, was amended to start between October 1, 2017 and December 31, 2017; the day-rate under this contract was not changed. 50-tonne crane with an outreach of 42 metres. The cranes are scheduled to be delivered in December 2017. The DLV5000-designed Aegir is equipped with two work-class ROVs. 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 JUL ISLAND VENTURES II ISLAND VENTURE - ULSTEIN OCV SX165 JUL SUBSEA 7 SEVEN SUN PETROBRAS MERWEDE PIPELAY 550 JUL SOLSTAD NORMAND MAXIMUS SAIPEM VARD BRATTVAAG DERRICK PIPELAY VARD 319 JUL TECHNIP DEEP EXPLORER - VARD LANGSTEN DSV VARD 3 06 JUL SIEM OFFSHORE SIEM HELIX 1 PETROBRAS FLENSBURGER WELL INT SALT 307 AUG TECHNIP SKANDI BUZIOS PETROBRAS VARD SOEVIKNES PIPELAY VARD 3 05 AUG SEABREEZE 13

RENEWABLES EIDESVIK SECURES SECOND RENEWABLES CHARTER Eidesvik has secured another support vessel contract from Siemens Wind Power to support their operations in the German offshore wind sector. OCV vessel Viking Poseidon has commenced the three to five month contract, including options. Prior to this, the DP3- equipped vessel has been in lay-up since previous charterer Harkand went into administration earlier this year. Earlier this year Siemens chartered the Eidesvik-owned IMR vessel Acergy Viking for a nine-month accommodation charter starting in August. ULSTEIN DELIVERS FIRST SOV Ulstein has delivered its first ever wind farm service operation vessel. The SOV is the first of two being built for Bernhard Schulte Offshore and chartered out to Siemens Wind Power Service. The first, named WINDEA LA COUR, will be deployed at the Gemini offshore wind farm off the Netherlands, while the second will serve the Sandbank and Dan Tysk offshore wind farms. Both vessels are based on the SX175 design from Ulstein, featuring the X-BOW and X-STERN hull. The vessels have a length of 88m and accommodation for 60 persons in single cabins, of which 40 cabins are dedicated to technicians. DONG TO GO AHEAD WITH BORKUM RIFFGRUND 2 DONG Energy will go ahead with the planned Borkum Riffgrund 2 wind farm. The farm will have a total export capacity of 450MW and will feature the largest wind turbines in German waters: 56 MHI Vestas 8MW wind turbines. The wind farm is expected to be fully commissioned during the first half of 2019. DONG is the sole owner of Borkum Riffgrund 2, but intends to divest up to 50% of the project at a later stage. JDR AND BIBBY SIGN FRAMEWORK AGREEMENT JDR and Bibby Offshore have signed a framework agreement, resulting in JDR providing cable maintenance services and offshore personnel, while Bibby Offshore will deliver project management and engineering services, in addition to a marine vessel. Under the agreement, JDR will also supply high voltage and fibre optic cable jointers and associated competency systems. Meanwhile, Bibby Offshore will provide equipment for on-deck cable handling, storage carousel or reels, as well as cable lay and subsea equipment for lifting, excavation and burial of cables. Earlier in June Bibby purchased a power cable lay carousel from Ecosse Subsea Systems to enable cable laying of offshore wind power cables from its vessels, and partnering with JDR has further strengthened its business move into the offshore wind industry. 14 SEABREEZE

RIGS OIL PRICE VS RIG UTILISATION SAIPEM SCOOPS DEEPWATER FIXTURES Eni has awarded a contract to Saipem to use drillship Saipem 12000 for a drilling campaign offshore Portugal. The rig will soon mobilise from Namibia to Portugal, with operations to take place during the third quarter of 2016. Eni will use Saipem 12000 to drill an exploration well in RIG UTILISATION AND DAY RATES UTILISATION JUN 2016 JUN 2015 the Santola Block in the Alentejo Basin. Meanwhile, Eni has also extended its contract with Saipem semi Scarabeo 8 offshore Norway. The rig is now firmly contracted until at least October 2017, with four further six-month options still available. ONGC CHARTER FOR ABAN DRILLSHIP Aban Offshore has received a Letter of Award from ONGC for a two-year firm charter of drillship Aban Abraham offshore India. Pending final confirmation, the contract will commence in the fourth quarter of 2016 JUN 2014 JUN 2013 JUN 2012 NORTHWEST EUROPE 66.3% 87.7% 98.3% 98.9% 95.5% SOUTH AMERICA 75.2% 84.4% 94.1% 97.2% 97.9% US GULF 36.2% 52.0% 71.1% 73.3% 70.9% RECENT DAY RATE BENCHMARKS LOW (USD) HIGH (USD) UK HARSH HIGH SPEC JACKUPS 88,600 100,000 UK HARSH STANDARD SEMISUBS 150,000 160,000 NORWAY HARSH HIGH SPEC SEMISUBS 170,000 179,000 SOUTH AMERICA DEEPWATER DRILLSHIPS 235,000 367,000 GLOBAL ULTRA-DEEPWATER SEMISUBS 175,000 265,000 GLOBAL ULTRA-DEEPWATER DRILLSHIPS 190,000 367,000 Source: IHS-Petrodata 100% 90% 80% 70% 60% 50% 40% 30% 87.7% 84.4% $62.35 84.5% $55.87 52.0% 52.5% 85.2% 85.7% 85.0% 85.1% 84.6% 84.0% 83.2% 83.1% 82.3% 78.6% 81.9% 79.6% 76.9% 75.4% 75.9% 74.2% $46.99 $47.23 $48.12 $44.42 72.9% 47.9% 45.5% 46.9% 44.5% 44.4% 42.4% 39.2% following the rig s mobilisation from Brazil. Aban has indicated that expected revenues from the contract will be USD 87 million. This equates to a day rate of around USD 119,000, inclusive of mobilisation fees. $39.07 $42.25 77.1% 75.2% 69.2% 68.2% 68.0% 66.3% $47.13 $50.02 $37.72 $30.80 $33.20 39.1% 39.9% $30 38.1% 36.2% $25 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Average Brent Crude US$ / Bbl Northwest Europe Rig Utilisation South America Rig Utilisation US Gulf Rig Utilisation $80 $75 $70 $65 $60 $55 $50 $45 $40 $35 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 COLD STACK ISLAND INNOVATOR SS COLD STACK MAERSK RESOLUTE JU WARM STACK NOBLE REGINA ALLEN JU WARM STACK OCEAN NOMAD SS COLD STACK OCEAN PRINCESS SS COLD STACK OCEAN VANGUARD SS COLD STACK PARAGON B391 JU WARM STACK PARAGON C20052 JU COLD STACK PARAGON C462 JU COLD STACK PARAGON C463 JU WARM STACK PARAGON MSS1 JU COLD STACK POLAR PIONEER SS COLD STACK ROWAN NORWAY JU WARM 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 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

CONUNDRUM CORNER, DUTY PHONES SEABROKERS SUMMER STUDENT The Seabrokers Group aims to create a culture of training, support and nurturing in the workplace, and as a continuation of this policy we will have a student helping us out in our Aberdeen office this summer. Coming from a fishing family, Laura Duthie has had a keen interest in vessels for as long as she can remember. She is a second year Naval Architecture student at the University of Strathclyde in Glasgow, and where better for her to expand her knowledge of offshore vessels than at Seabrokers? As part of her introduction to the industry, we aim to take Laura to visit as many vessels as possible, so we may be asking owners if a port visit is possible over the coming months. CONUNDRUM CORNER The answer to last month s teaser :- One of these seventy-six words is the answer to the puzzle. It has an even number of letters, and only one vowel. This is hard! But once you see what I am up to, you will be elated. One letter in the word could be used to identify the person working on this puzzle, but from the author s perspective. Another letter could also be three other letters, if it were oriented a certain way. Good luck! The correct answer was :- Up This month, our poser is as follows: 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: http://www.seabrokers.co.uk/ - 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 78-4033 Stavanger - Norway Tel: (+47) 51 80 00 00 Internet: www.seabrokers-group.com SEABROKERS CHARTERING AS - STAVANGER Duty Telephone ++47 51 815400 (24 Hrs) E-mail chartering@seabrokers.no SEABROKERS LTD - ABERDEEN Duty Telephone ++44 1224 747744 (24 Hrs) Duty Mobile ++44 7802 304129 E-Mail chartering@seabrokers.co.uk SEABROKERS BRAZIL LTDA - RIO DE JANEIRO Duty Telephone ++55 21 3505 4200 (24 Hrs) E-mail chartering@seabrokers.com.br SEABROKERS PTE LTD -SINGAPORE Telephone ++65 6224 6062 or 0951 E-mail chartering@seabrokers.sg SECURALIFT AS - STAVANGER Telephone ++47 51 800000 Jostein.Okland@seabrokers-group.com HEADING E-mail SEA SURVEILLANCE AS - BERGEN Quiatis imaximilitem num enis porum ne dolles Telephone ++47 55 136500 qui E-mail 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 ++47 51 800000 aut preiumquas qui iuscimu sapelest, esto odio. E-mail frode.albretsen@seabrokers.no Itatecum cus acerum ipidunture corporpores et int faccum SEABROKERS remperi SERVICES onsequi AS - STAVANGER Telephone ++47 51 800000 E-mail eli@seabrokers.no SEABROKERS ENTREPRENØR SERVICE AS - STAVANGER Telephone ++47 51 800000 E-mail entreprenor@seabrokers.no SEABROKERS KRAN & TRANSPORT AS - STAVANGER Telephone ++47 51 800000 E-mail kranogtransport@seabrokers.no