APRIL 2016 HAS THE TIDE TURNED? MORE POSITIVITY … · 2017-11-02 · in Atlantic Offshore Crewing Services Ltd and Atlantic Offshore Scotland Ltd. The last edition of Seabreeze raised

APRIL 2016

HAS THE TIDE TURNED?MORE POSITIVITY RETURNING TO THE MARKET

CONTENTS

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© Seabrokers Group 2015

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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

SHIPBROKING

SECURALIFT

SEA SURVEILLANCE

REAL ESTATE

ENTREPRENEUR

CRANES & TRANSPORTATIONYACHTING

FACILITY MANAGEMENT

SEABREEZE 3

OSV MARKET ROUND-UPTOUGH MARKET FOR NORTH SEA OWNERS Those owners who have vessels plying their trade in the North Sea spot market endured yet another difficult month in April. There was a brief spell in the middle of the month where the AHTS market tightened enough to allow owners to apply upward pressure on rates; there were around a dozen fixtures north of GBP 30,000 per day. The same cannot be said for the PSV market, with the majority of fixtures remaining below GBP 5,000.

Nevertheless, any concerns over the state of the market have been completely overshadowed by the tragic helicopter crash which resulted in the loss of 13 lives offshore Norway on April 29th.

From a market perspective, previous incidents of this nature have led to rate spikes when there has been an influx of vessel requirements for passenger transport due to the grounding of helicopters. It is too early to say whether a similar scenario may emerge on this occasion, however it is a situation that vessel owners will be monitoring carefully.

Regardless, thoughts of this nature pale into insignificance when we consider recent events. The thoughts and prayers of all at Seabrokers are with the family, friends and colleagues of those who so tragically lost their lives on April 29th.

BIGGEST MONTHLY OIL GAIN IN 7 YEARS

ATLANTIC OFFSHORE ATTRACTS BUYERAtlantic Offshore AS has entered into an agreement to secure its continued operation and the fulfil-ment of its contractual obligations to customers and employees. The transaction consideration is NOK 16.9 million (USD 2.1 million), based on multiple valuations made by external experts and third party verifications.

Under the terms of the agree-ment, Atlantic Offshore AS is selling most of its operations and subsidiaries to Aegopodium AS, a newly established company owned 100% by H. Øgreid & Sønner AS. The main secured

creditors of the Group are parties to the agreement.

The Agreement involves the transfer of shares in Atlantic Offshore Gamma AS, Atlantic Off-shore Alpha AS, Atlantic Offshore Epsilon AS, Atlantic Offshore Eta AS, Atlantic Offshore Zeta AS, Atlantic Offshore Management AS and Atlantic Offshore Crew AS. Furthermore, Aegopodium has acquired certain assets and personnel in Atlantic Offshore Rescue Ltd, and the shares in Atlantic Offshore Crewing Services Ltd and Atlantic Offshore Scotland Ltd.

The last edition of Seabreeze raised the notion that there was a changing dynamic within the oil & gas market, with a bit of positivity returning to the sector. While it‘s important not to get ahead of ourselves (nobody needs any reminder of how dire the market has been over the last year-and-a-half), there is defi-nitely some substance to the idea that the worst may be behind us.

Brent Crude prices ended April north of USD 48 per barrel, representing the biggest monthly gain in seven years. While this is still a world away from the USD 100+ the market had become accustomed to, it is a darn sight better than the sub USD 30 a bar-rel we experienced in January.

Recent forecasts from the International Energy Agency projected the view that oil prices are “expected to grow throughout 2016 and into 2017.” This was backed up by the organisation‘s Executive Director (Fatih Birol), with the projection that non-OPEC supply is expected to decline by some 700,000 barrels per day this year (the biggest drop in the last 25 years), while “global demand growth is in a hectic pace, led by India, China and other emerging countries.” Any significant recovery in the OSV market will be a prolonged affair due to the scale of the oversupply in the sector, but at least there are now some solid indicators of a changing tide in the market dynamics.

4 SEABREEZE

OSV MARKET ROUND-UP

Woodside has awarded a contract to Siem Offshore for the long-term charter of one of Siem‘s newbuild dual-fuel PSVs offshore Australia. Siem has three PSVs being built to the VS4411 DF design at Remon-towa Shipyard in Poland (Siem Harmony, Melody and Rhapsody). All three are due to be completed

this year, and will be capable of operating on either LNG or MDO. One of these will be chartered by Woodside for a five-year plus two one-year options contract starting early in 2017. This will be the first LNG-powered marine support vessel to operate offshore Australia.

DOF Rederi AS has secured term fixtures for two of its PSVs in the North Sea, and contract extensions for two of its AHTS vessels in South America.

In the North Sea, Nexen Petrole-um UK has awarded a long-term charter to Skandi Marstein that will commence in May and keep the vessel firmly contracted until the end of 2017. DOF also picked up a three-month plus options contract for Skandi Gamma with Maersk Oil North Sea UK Ltd. This charter commenced in April.

Meanwhile, in South America, Total Austral has extended its charters with AHTS vessels

Skandi Møgster and Skandi Saigon (pictured c/o D Dodds). The vessels are now contracted to Total offshore Argentina until

mid-October 2016. Both vessels have been working for Total Austral offshore Argentina since 2014.

WOODSIDE CHARTERS DUAL FUEL SIEM NEWBUILD

NORTH SEA AND SOUTH AMERICA FIXTURES FOR DOF

Island Offshore has received a contract from ASCO Marine Ltd for a two-year charter of its large PSV Island Champion. The contract commenced in April, keeping the vessel committed in the UK sector until the second quarter of 2018.

The Island Champion is a UT776E PSV that was delivered in 2007. She has a length of 93.0m, breadth of 20.0m and a deck area of 1,008m². The vessel has gone some 3,300 days with-out experiencing any lost time incidents.

ASCO SELECTS ISLAND CHAMPION

SEABREEZE 5

OSV MARKET ROUND-UP

JX Nippon Oil & Gas has selected an Østensjø Rederi PSV to support its drilling campaign west of Shetland in the UK sector. Odfjell semisubmersible rig Deepsea Stavanger has been contracted to drill an exploration well at the Loanan prospect, and Østensjø PSV Edda Frende

will provide support. The well is expected to take around 60-75 days to drill, with operations to commence in May.

The Edda Frende (pictured c/o V Gibson) is an ST216 PSV delivered in 2009. She has a deck area of 910m².

Peterson Den Helder, the SNS (Southern North Sea) Pool Man-ager, has extended its contracts with three PSVs: VOS Prelude, Dina Merkur (pictured) and Far Splendour.

The VOS Prelude, owned by Vroon, is now committed until

August 2016; the Dina Merkur, owned by Myklebusthaug, is now contracted until October 2016; and the Far Splendour, owned by Farstad, is committed until November 2016. The VOS Prelude is a UT 755 LN PSV, the Dina Merkur a UT 755 LC, and the Far Splendour a P106 vessel.

Deep Sea Supply (DESS) has picked up a range of contracts for PSVs in the North Sea, Asia and South America.

In the North Sea, Statoil (U.K.) Ltd awarded a two-year plus three one-year options charter to the Sea Falcon (pictured). Operations are due to start in the fourth quarter of 2016, coinciding with Statoil‘s commencement of a drilling campaign with newbuild jackup Noble Lloyd Noble at the Mariner field. The Sea Falcon has been in layup since mid-2015.

Elsewhere, the Sea Frost and Sea Supra were awarded 60 and 90-day contracts (with 120 days‘

options) for an international oil company in Asia. The vessels are being mobilised to eastern Russia. Finally, the Sea Titus has comm-

enced a four-month plus two months‘ options contract, under-stood to be with Petronas Carigali for work offshore Suriname.

PETERSON EXTENDS PSV CHARTERS

JX NIPPON PICKS UP EDDA FRENDE

MULTIPLE CONTRACTS FOR DESS

6 SEABREEZE

OSV RATES & UTILISATION

NORTH SEA SPOT AVERAGE UTILISATION APRIL 2016

TYPE APR 2016 MAR 2016 FEB 2016 JAN 2016 DEC 2015 NOV 2015

MED PSV 83% 70% 72% 65% 78% 77%

LARGE PSV 81% 67% 80% 73% 85% 78%

MED AHTS 37% 42% 29% 45% 62% 33%

LARGE AHTS 53% 62% 55% 57% 69% 67%

APRIL 2016 - DAILY NORTH SEA OSV AVAILABILITY

NORTH SEA AVERAGE RATES APRIL 2016

CATEGORYAVERAGE RATE

APRIL 2016AVERAGE RATE

APRIL 2015% CHANGE MINIMUM MAXIMUM

SUPPLY DUTIES PSVS < 900M2 £3,992 £2,818 +41.66% £2,500 £6,000

SUPPLY DUTIES PSVS > 900M2 £4,308 £3,699 +16.46% £2,549 £7,648

AHTS DUTIES AHTS < 18,000 BHP £10,983 £9,332 +17.69% £10,000 £12,483

AHTS DUTIES AHTS > 18,000 BHP £24,405 £13,617 +79.22% £9,000 £63,737

RATES & UTILISATION

DEPARTURES - NORTH SEA SPOT

CARLO MARTELLO SOUTH AMERICA

SPOT MARKET ARRIVALS & DEPARTURES APRIL 2016

* Vessels arriving in or departing from the North Sea term/layup market are not included here.

ARRIVALS - NORTH SEA SPOT

A.H. VALLETTA EX SOUTH AMERICA

CARLO MAGNO EX RUSSIA

OLYMPIC HERA EX CENTRAL AMERICA

OLYMPIC TAURUS EX WEST AFRICA

OLYMPIC ZEUS EX WEST AFRICA

0369

1215182124273033363942

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

PSV 2016 PSV 2015 AHTS 2016 AHTS 2015

SEABREEZE 7

NORTH SEA AVERAGE SPOT MONTHLY RATES

NORTH SEA AVERAGE SPOT RATES

£-

£10,000

£20,000

£30,000

£40,000

£50,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2015 £20,863 £16,171 £18,184 £13,617 £19,461 £25,046 £15,113 £12,176 £8,809 £6,035 £9,983 £45,3772016 £32,234 £27,884 £16,607 £24,405 £- £- £- £- £- £- £- £-

Rig Moves

£-

£10,000

£20,000

£30,000

£40,000


PSVs > 900M2

£-

£5,000

£10,000


PSVs < 900M2

£-

£10,000

£20,000

£30,000

£40,000


All Cargo Runs

£-

£5,000

£10,000

£15,000

£20,000

£25,000

PSVs < 900m² PSVs > 900m² AHTS < 18,000 bhp AHTS > 18,000 bhp2015 £3,902 £4,767 £13,617 £19,3432016 £- £- £- £-

Average Day Rates To Month (June 2013)

£-

£10,000

£20,000

£30,000

£40,000

£50,000


Rig Moves

£-

£10,000

£20,000

£30,000

£40,000


PSVs > 900M²

£-

£5,000

£10,000


PSVs < 900M²

£-

£10,000

£20,000

£30,000

£40,000


All Cargo Runs

£-

£5,000

£10,000

£15,000

£20,000

£25,000



£-

£10,000

£20,000

£30,000

£40,000

£50,000


Rig Moves

£-

£10,000

£20,000

£30,000

£40,000


PSVs > 900M2

£-

£5,000

£10,000


PSVs < 900M2

£-

£10,000

£20,000

£30,000

£40,000


All Cargo Runs

£-

£5,000

£10,000

£15,000

£20,000

£25,000



£-

£10,000

£20,000

£30,000

£40,000

£50,000


AHTS > 18,000 bhp

£- £5,000

£10,000 £15,000 £20,000 £25,000 £30,000 £35,000


AHTS < 18,000 bhp

£-

£2,500

£5,000

£7,500

£10,000


PSVs > 900m²

£-

£2,500

£5,000

£7,500

£10,000


PSVs < 900m²

£-

£5,000

£10,000

£15,000

£20,000

£25,000

£30,000

PSVs < 900m² PSVs > 900m² AHTS < 18,000 bhp AHTS > 18,000 bhp2015 £4,242 £5,339 £11,867 £17,4872016 £4,596 £4,483 £17,051 £25,291

Average Day Rates To Month (April 2016)

8 SEABREEZE

FEATURE VESSEL

Vroon Offshore has held a christening ceremony for DP2 subsea support vessel VOS Sugar in IJmuiden, ahead of her first job in Germany.

VOS SUGAR SPECS:

Overall Length: 68.04mBreadth: 14.95mDeck Area: 485m²Deadweight: 1,747.5tDeck Cargo: 350tDeck Strength: 7 t/m²Crane: 24tAccommodation: 49 persons

VOS SUGAR

The 68m-long vessel (pictured above c/o R Coster) arrived in Amsterdam in early April for the installation of a 24t active heave-compensated crane. This followed her delivery from Fujian Southeast Shipbuilding in China.

The SPS-coded vessel, with accommodation for 49 persons, will soon commence her maiden charter for NDE performing dive operations and maintenance work on foundations at Ocean Breeze’s Bard 1 offshore wind farm.

NDE will carry out a combined topside and subsea campaign. The VOS Sugar is mobilised with a remote underwater vehicle for subsea inspection and an active motion-compensated access system, facilitating safe access to windmill foundations for mainte-nance crew.

Meanwhile, Vroon has also taken delivery of a second 68m-long SSV, the VOS Star. This unit is currently en route to the North Sea for further outfitting.

SEABREEZE 9

OSV NEWBUILDINGS, S&P

FEMCO is making progress with its fleet expansion plans, with the recent launches of AHTS vessels Normann and Pomor following the March delivery of another AHTS vessel, Katun.The Normann and Pomor are sister vessels being built to the Havyard 843 Ice design. They

were launched by the Cemre and Tersan Shiypards in Turkey, with final outfitting to take place in Norway; both are due for delivery in the fourth quarter of 2016. The Katun (pictured) is the third of four SPA 150 vessels built for FEMCO by Sinopacific in China.

SPP Shipbuilding in South Korea has sold a partially-built AHTS vessel to Sevnor.The vessel (pictured c/o Iappino), was initially ordered by Finarge Srl, part of the Rimorchiatori Riuniti Group. However, this order was cancelled last year. Following this latest develop-

ment, the vessel has been mobi-lised to the Tersan Shipyard in Turkey, where construction will continue ahead of a scheduled delivery in the first half of 2017.The vessel is being built to the MOSS 919 design, with a length of 83m, breadth of 19.5m and a bollard pull of 220t.

Starnav Serviços Marítimos has accepted delivery of Starnav Cepheus from the Detroit Brasil Shipyard in Itajaí, Brazil. Starnav Cepheus (pictured c/o F Melo) is the second of three vessels that Starnav ordered following the fifth round of Petrobras’ fleet renewal

process (Prorefam V). All three vessels have been contracted by Petrobras for eight-year firm charters, with the final vessel in the series (Starnav Cygnus) scheduled for delivery later this year. The vessels were built to the GPA 688 SC design, meeting Petrobras’ PSV 4500 criteria.

FEMCO EXPANDING AHTS FLEET

NEWBUILD AHTS VESSEL FOR SEVNOR

NEW PSV DELIVERED TO STARNAV

Newbuild AHTS vessel Skandi Paraty has been delivered to Norskan Offshore, a subsidiary of DOF, by the Vard Niteroi Shipyard in Brazil.Built to the VARD 2 11 design, Skandi Paraty is a sister vessel to Skandi Urca and Skandi Angra, which were delivered in 2014

and 2015. Skandi Paraty has now gone on hire to Petrobras for a four-year contract with Petrobras.Skandi Paraty has a length of 93.5m, breadth of 22.0m and a deadweight of 4,981t. She has a bollard pull of 288t and accom-modation for 46 persons.

DOF ANCHOR HANDLER DELIVERED IN BRAZIL

10 SEABREEZE

OSV NEWBUILDINGS, S&P

PACC Offshore Service Holdings Ltd (POSH) has been awarded long-term charters for eight OSVs with a Middle Eastern national oil company. POSH will supply eight Anchor-Handling, Supply and Safety Standby vessels, of

which six will be newbuilds. The vessels have been chartered for five years plus two one-year options, commencing progres-sively from December 2016. The contracts have a combined value of USD 167.5 million.

A newbuild PSV currently under construction is being marketed for sale by Edmiston & Com-pany as a converted high-end expedition yacht with an asking price of USD 62 million. The 82m VARD 1-08 Kilkea is being created in collaboration with

Shackleton Superyachts and Bannenberg & Rowell design, with the design scope to include a helicopter hangar, indoor and outdoor swimming pools, a submarine dock, an underwater observation room, cinemas and a 5-a-side football pitch.

EIGHT VESSEL CONTRACTS FOR POSH; INCLUDES SIX NEWBUILDS

NEWBUILD PSV MARKETED FOR SALE AS EXPEDITION YACHT

Remøy Shipping has sold its 1996-built PSV Rem Stadt to Indian owners Tag Offshore.The UT 746-designed vessel had been laid up in Norway since November 2015. She has now been renamed TAG 20, and

is currently en route to India, where she is expected to go on long-term charter to ONGC.TAG 20 was built by Brattvåg Skipsverft AS in Norway. She has a length of 87.8m, breadth of 18.8m and deck area of 1,015m².

REM STADT SOLD TO INDIAN OWNERS

RECENT DELIVERIES OF NEWBUILD OSVSNAME TYPE/DESIGN OWNER/ MANAGER COMMITMENT

KATUN SPA 150 AHTS FEMCO TBC

SKANDI PARATY VARD 2 11 AHTS DOF SOUTH AMERICA

STARNAV CEPHEUS GPA 688 SC PSV STARNAV SOUTH AMERICA

Newbuild ERRV Biscay Sentinel has been launched at the COSCO Dalian Shipyard in China. Biscay Sentinel is one of four sister ves-sels being built to the FOCAL 531 design, alongside the Bailey Sen-

tinel, Malin Sentinel and Portland Sentinel. The units have staggered delivery dates through 2016 and 2017. They will be equipped to meet the requirements of the UK, Danish and Dutch standards.

BISCAY SENTINEL LAUNCHED IN CHINA

SEABREEZE 11

SUBSEA

In a bid to reduce costs and increase commerciality of potential resources in various environments including the Barents Sea, Statoil has presented two new subsea concepts.The first is called Cap-X and has been designed to cut costs, increase standardisation and efficiency, and to move more operations from rigs to construction vessels. Cap-X is a combination of existing and new technology which is a quarter of the size of subsea templates currently being used. The tech-nology is built around the widely used suction anchor technology and consists of a steel suction anchor as the foundation with a fiberglass skirt and cap protect-

ing the wellhead. Statoil remarks that Cap-X brings them closer to a “plug and play” solution on the seabed. The main structures of Cap-X can be produced in shorter periods and due to the decreased reliance on rigs for installation of the new systems, it is thought that the technol-ogy will also increase vessel utilisation. The technology is suited for horizontal drilling in shallow reservoirs, and increases the potential commerciality of resources in the Barents Sea.

Early in April, Statoil also an-nounced that it was supporting the development of snake-like swimming robots that should significantly cut costs related

to subsea IRM operations. Statoil and Kongsberg Maritime signed a deal with Eelume, to develop snake-like swimming robots after 10 years of research between Statoil, NTNU and Sintef. Statoil advises that the solution would allow the robots to carry out inspection and light intervention work on the seabed, reducing the use of vessels. The slender and flexible body allows it to access confined areas and it would be permanently installed on the seabed. The solution can be installed on both existing and new fields where typical jobs include visual inspection, cleaning, and adjusting valves and chokes.

CREDITORS TERMINATE HARKAND’S DSV CHARTERS

SUBSEA MARKET ROUND-UP

Aker Solutions has been award-ed a contract by Petrobras to provide subsea services offshore Brazil for a duration of three years, with an option to extend for an additional three years. The contract has a value of USD 123 million for the fixed dura-tion, and covers maintenance,

storage, supply of parts and tech-nical assistance for all subsea equipment delivered by Aker to Petrobras. The service provider is opening a new subsea manu-facturing plant in Curitiba, and upgrading its subsea services unit in Rio das Ostras to meet customer demand.

PETROBRAS LOOKS TO AKER FOR MAINTENANCE

Harkand Finance Inc and its bond trustee Nordic Trustee have exercised their rights to terminate the internal bareboat charters for diving support vessels Harkand da Vinci and Harkand Atlantis. The move comes after Nordic Trustee notified Harkand last month

that its bonds were in default. Nordic Trustee has for now not declared the bonds to be due for immediate payment. Harkand completed a USD 230 million issue of senior secured bonds in 2014, due in March 2019. Both vessels have recently mobilised from Leith, Scotland to Gibraltar.

12 SEABREEZE

SUBSEA

Greatship has signed a contract to sell its 2013-built IMR support

vessel Greatship Ragini. The STS 909-designed vessel is expected to be delivered to the buyers in the second half of 2016. The Greatship Ragini, which has a length of 78 metres, a max lift of 50 tonnes & accommodation

for 50 persons, is fixed on a three-year charter with two yearly options with Geoquip Marine in Saudi Arabia. The ves-sel is understood to be resuming a new work scope with Geoquip Marine in Southeast Asia.

GREATSHIP RAGINI TO BE SOLD

ConocoPhillips has awarded Bibby Offshore its first contract in Norway. The work scope includes project management, installation, engineering, procurement and subsea installation works related to maintenance activities on the

Norpipe oil pipeline. The MT-6022 MkII-designed Olympic Ares, which has a max lift of 250t and a length of 115m, will work on the campaign. The contract is due for completion during the third quarter of 2016.

BIBBY SECURES FIRST NORWEGIAN CAMPAIGN

MAERSK TO CLOSE TYRA ASSETS?If an economically viable solution is not identified to continue operations at its Tyra East and Tyra West facilities, Maersk Oil has advised that it will shut down production on October 1, 2018. The Tyra facilities are approaching the end of their operational life due to a combination of more than 30

years of production, and Maersk and its partners are looking at their options including a possible rebuild of the facilities.Tyra East and Tyra West are also the hub for a number of smaller facilities in the Tyra field, which will form part of the evaluation. This includes the neighbouring

unmanned facility, Tyra Southeast, which was extended in 2015.The Tyra field is operated by Maersk Oil on behalf of the DUC, a partnership between A.P. Moller – Maersk (31.2%), Shell (36.8%), Nordsøfonden (20%) and Chevron (12.0%).

REACH SUBSEA GETS NEW SHAREHOLDERSSolstad Offshore and Østensjø Rederi have become shareholders in Reach Subsea after the restruc-turing of a charter agreement for OCV Normand Reach.Reach Subsea has obtained a significantly reduced charter rate, which takes effect from mid-June 2016, as part of a comprehensive restructuring. The original contract started during the second quarter of 2014 and had a firm period until

June 2019.The result of the restructuring will see Reach Subsea’s debt re-duced from NOK 140m to NOK 95m, with the company’s work-ing capital and cash position unaffected. As compensation for the reduced day rate, Solstad will receive a cash amount of NOK 56m as well as 5 million shares in Reach. It is understood that a similar deal has been struck with Østensjø Rederi.

The OSCV 03-designed Normand Reach has a length of 121m, a max lift of 250t and accommodation for 100 persons.

SEABREEZE 13

SUBSEA

Tullow Oil has awarded a contract to Jee to investigate the most appropriate options for the decommissioning of its Thames

area assets. The contract covers the decom-missioning of the Horne, Wren, Wissey, Orwell and Thurne fields in the Southern North Sea.Additionally, Jee will re-define the most appropriate decom-missioning options for the subsea sections. The study,

due to be completed over the next two months, will assess what infrastructure can be left in situ. In instances where removal is deemed necessary, Jee’s assessment will include decommissioning options for the associated components such as mattresses and grout bags.

REM Offshore has terminated the charter party with Adams Offshore for the 2009-built IMR vessel Rem Poseidon.The termination is due to non-fulfilment of Adams Off-shore’s obligation. Rem Offshore has bank guarantees that secure payments through the

second quarter. Adams Offshore originally commenced a three-year charter with the MT 6016 MkIII-designed vessel in 2014. The firm contract was expected to complete in November 2017, with two further six-month options available thereafter. The 94m-long vessel is equipped

with a 100t crane and accommo-dation for 68 persons.

REM TERMINATES CHARTER PARTY

JEE TO CARRY OUT STUDY ON THAMES

EUROPEAN BUILT SUBSEA DELIVERIES (NEXT THREE MONTHS)SHIP OWNER NAME CHARTERER SHIP YARD TYPE DESIGN MONTH

FTAI IES PIONEER IES ENERGY - KLEVEN VERFT IMR MT 6015 MAY

ISLAND VENTURES II ISLAND VENTURE - ULSTEIN OCV SX165 MAY

SUBSEA 7 SEVEN SUN PETROBRAS MERWEDE PIPELAY 550 MAY

VOLSTAD GRAND CANYON III HELIX KLEVEN VERFT OCV ST-259-CD MAY

SAPURAKENCANA SAPURA RUBI PETROBRAS MERWEDE PIPELAY IHC JUN

SOLSTAD NORMAND MAXIMUS - VARD BRATTVAAG DERRICK PIPELAY VARD 319 JUN

SIEM OFFSHORE SIEM HELIX 1 PETROBRAS FLENSBURGER WELL INT SALT 307 JUL

TECHNIP DEEP EXPLORER - VARD LANGSTEN DSV VARD 3 06 JUL

NORSKE SHELL CHARTERS ISLAND VESSELSNorske Shell has chartered in two Island Offshore vessels for work on the Draugen field.The DP2 IMR vessel Island Valiant will be the first unit to carry out work on the field. The 93m long vessel commenced IMR duties on three wells in April, lasting around two weeks.

Meanwhile, well intervention vessel Island Constructor will carry out work in the summer. The 2008-built unit will carry out various assignments with different durations, including light well intervention and scale squeeze on two wells at Drau-gen. Additionally, in August/

September the vessel will return for two more jobs involving LWI and IMR work.

14 SEABREEZE

RENEWABLES

The offshore construction phase at the 258MW Burbo Bank Extension wind farm is due to commence in June 2016. This includes the installation of the export cable, turbine founda-tions and the offshore substation,

while the offshore cable array is scheduled for installation in July. Meanwhile the first of the 32 MHI Vestas 8MW turbines is to be installed in September. The wind farm will be commissioned during the first quarter of 2017.

CONSTRUCTION TO BEGIN ON BURBO BANK EXTENSION

SCYLLA ARRIVES AT VEJA MATESeajacks‘ wind farm installation jackup Scylla arrived at the Veja Mate offshore wind farm in early April to commence installation of the 67 monopiles. Seajacks will also utilise the jack-up installation vessel Zaratan to install the transi-

tion pieces. Veja Mate will feature 67 Siemens 6MW turbines to be installed by Fred. Olsen Windcar-rier, starting from early 2017.The EUR 1.9 billion project is scheduled to be fully operational in late 2017 or early 2018.

EAST ANGLIA ONE PRICE CONFIRMEDThe Low Carbon Contracts Com-pany confirmed that the Contract for Difference (CfD) milestones for East Anglia ONE have been fulfilled.This has resulted in the project being developed at a price of GBP 119/MWh, a cost reduction of 20% compared to other offshore wind

farms that have been built in the UK. ScottishPower Renewables advises that the cost reduction has been made possible by deciding to use advanced technology, such as larger and more efficient turbines. Construction is planned to start in 2017, with the first turbines installed by 2019, and the project is

expected to be fully operational during 2020.

MPI TO WORK ON DUDGEONStatoil has awarded MPI Work-boats two long-term contracts for work at the Dudgeon Off-shore Windfarm.MPI will deploy the MPI Napole-on and MPI Snowball workboats

to provide crew-transfer sup-port. MPI Napoleon has already commenced its 18-month contract, while MPI Snowball will start a three-year contract later in 2016.

The Dudgeon Offshore Wind Farm, located some 20 miles off the North Norfolk coast, will be developed and operated by Statoil and should start generat-ing electricity in early 2017.

N-SEA TO PERFORM UXO ON GALLOPERN-Sea has secured a new contract on the Galloper Wind Farm, off the coast of Suffolk in the UK.The contractor will utilise the

DP2 IRM vessel Siem N-Sea to carry out the UXO clearance contract, which began in April. The campaign has a duration

of between three to six months. N-Sea’s nearshore vessel Nep-tunus will carry out similar tasks in shallow water areas.

SEABREEZE 15

RIGS

Ocean Rig has acquired a sixth generation ultra-deepwater drillship for just USD 65 million at auction.The Cerrado, to be renamed Ocean Rig Paros, was previously owned by Schahin and was

delivered in 2011 at a cost in excess of USD 600 million.The drillship was built by the Samsung Heavy Industries Shipyard in South Korea. She is currently stacked in Aruba in the Caribbean.

OIL PRICE VS RIG UTILISATION

RIG UTILISATION AND DAY RATESUTILISATION

APR 2016

APR 2015

APR 2014

APR 2013

APR 2012

NORTHWEST EUROPE 68.2% 91.8% 98.9% 98.5% 95.5%

SOUTH AMERICA 78.6% 93.5% 95.2% 97.8% 97.3%

US GULF 39.9% 53.4% 72.0% 72.7% 67.9%

RECENT DAY RATE BENCHMARKS LOW (USD) HIGH (USD)

UK HARSH HIGH SPEC JACKUPS 100,000 180,000

UK HARSH STANDARD SEMISUBS 150,000 160,000

NORWAY HARSH HIGH SPEC SEMISUBS 170,000 179,000

SOUTH AMERICA DEEPWATER DRILLSHIPS 235,000 303,700

GLOBAL ULTRA-DEEPWATER SEMISUBS 183,333 250,000

GLOBAL ULTRA-DEEPWATER DRILLSHIPS 230,000 367,000

INACTIVE RIGS NORTHWEST EUROPE

NAME TYPE STATUSBORGNY DOLPHIN SS COLD STACK

BREDFORD DOLPHIN SS COLD STACK

COSLINNOVATOR SS WARM STACK

COSLPIONEER SS WARM STACK

ENERGY ENDEAVOUR JU COLD STACK

ENERGY ENHANCER JU COLD STACK

ENSCO 70 JU COLD STACK

GSF GALAXY II JU COLD STACK

GSF GALAXY III JU COLD STACK

GSF MONARCH JU COLD STACK

GSP SATURN JU COLD STACK

HERCULES TRIUMPH JU WARM STACK

ISLAND INNOVATOR SS COLD STACK

NOBLE REGINA ALLEN JU WARM STACK

OCEAN NOMAD SS COLD STACK

OCEAN PRINCESS SS COLD STACK

OCEAN VANGUARD SS COLD STACK

PARAGON C20052 JU WARM STACK



POLAR PIONEER SS COLD STACK

ROWAN STAVANGER JU WARM STACK

SCARABEO 5 SS WARM STACK

SEDCO 711 SS COLD STACK

SEDCO 714 SS COLD STACK

SERTAO DS COLD STACK

SONGA TRYM SS WARM STACK

TRANSOCEAN ARCTIC SS WARM STACK

TRANSOCEAN BARENTS SS WARM STACK

TRANSOCEAN PROSPECT SS COLD STACK

TRANSOCEAN SEARCHER SS COLD STACK

TRANSOCEAN SPITSBERGEN SS WARM STACK

WEST NAVIGATOR DS COLD STACK

WEST VENTURE SS COLD STACK

WILHUNTER SS WARM STACK

DRILLSHIP SOLD FOR USD 65 MILLION

SHELL UK RETAINS NOBLE JACKUPShell UK has extended its contract with jackup Noble Hans Deul for two more years. The extension has a day rate of USD 88,600, a significant reduction from the rig’s current rate of USD 235,000.

This charter should keep the rig busy until August 2018. However, Shell has the right to early terminate the contract for convenience with notice, and in some circumstances can claim a retroactive rate adjustment.

Source: IHS-Petrodata

$59.39

$64.56$62.35

$55.87

$46.99 $47.23 $48.12$44.42

$37.72

$30.80$33.20

$39.07

$43.35

91.8%

90.1%87.7%

84.5%81.9%

79.6%76.9% 75.4% 75.9% 74.2%

72.9%69.2% 68.2%

93.5%

89.5%84.4%

85.2% 85.7% 85.0% 85.1% 84.6% 84.0% 83.2% 83.1% 82.3%78.6%

53.4% 51.9% 52.0% 52.5%47.9%

45.5% 46.9%44.5%

44.4%42.4%

39.2%

39.1% 39.9%

$25

$30

$35

$40

$45

$50

$55

$60

$65

$70

$75

$80

30%

40%

50%

60%

70%

80%

90%

100%

Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16Average Brent Crude US$ / Bbl Northwest Europe Rig UtilisationSouth America Rig Utilisation US Gulf Rig Utilisation

HEADING Quiatis imaximilitem num enis porum ne dolles qui rerum id min corepta dolo quo conet il id quisto que voluptatus eatis re ventur? Hilibust quis as mincias peribustis qui dolorit officatus aut preiumquas qui iuscimu sapelest, esto odio. Itatecum cus acerum ipidunture corporpores et int faccum remperi onsequi

16 SEABREEZE

URUGUAY WELL WORLD’S DEEPESTTotal is currently drilling the Raya-1 exploration well offshore Uruguay in water depths of more than 3,400m (11,155ft), a world record depth for an offshore well. Raya-1, which is being drilled with Maersk drillship Maersk Venturer, is also the first exploration well to be drilled offshore Uruguay since 1976. The well is being drilled some 250km offshore in Block 14, where Total is partnered by ExxonMobil and Statoil. Drilling operations are expected to take around 100 days to complete, with a well result expected by July.

CONUNDRUM CORNERThe answer to last month’s teaser :-

The sum of two adjacent squares gives the number above. What number should replace the question mark?

The correct answer was :- 60

This month, our poser is as follows:

- I am a fruit.- Change one letter and I am a farm animal.- Change another letter and I am made from pastry.- Add a letter and I am a type of tree.- Finally, change one letter and I am a drink.

What fruit was I to start with? And what drink did I become?

Answers back to [email protected] for a chance to win a bottle of wine.

THE SEABREEZE ARCHIVEFor 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 : [email protected]

CONUNDRUM CORNER, DUTY PHONES

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Documents

APRIL 2016 HAS THE TIDE TURNED? MORE POSITIVITY … · 2017-11-02 · in Atlantic Offshore Crewing Services Ltd and Atlantic Offshore Scotland Ltd. The last edition of Seabreeze raised