SEPTEMBER 2016 MORE VESSELS TO BE SOLD OR SCRAPPED … · 4 SEABREEZE OSV MARKET ROUND-UP K Line PSV KL Brisfjord will continue working for EnQuest in the UK sector into the new year,

SEPTEMBER 2016

MORE VESSELS TO BE SOLD OR SCRAPPED AS OVERSUPPLY PERSISTS

CONTENTS

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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-UPSPOT RATES BACK BELOW BREAK-EVEN IN NORTH SEA Spot rates in the North Sea PSV market dropped back below vessel operating costs for many of September’s fixtures, with an increase in availability prompting owners to drastically reduce their rates. The painful sight of fixtures coming in below GBP 3,000 (NOK 30,750) was an all-too-common occurrence.

There are now circa 90 PSVs laid up across Northwest Europe but the market remains oversupplied, and this has worsened as we move towards the winter months. In terms of regional drilling activity, there were 18 less rigs under contract in September 2016 (58) than there were in September 2015 (76), which was already a reduction of 10 rigs from September 2014 (86), and there is simply not enough work left to occupy the number of vessels in the market.

There have been some positive signs recently, with an increase in the number of tenders for future drilling or plug & abandoment campaigns. However, any OSV market recovery will be a slow process due to the vast oversupply. Unfortunately, many vessels may have to be scrapped or sold into other sectors to bring the market back into balance in the medium-term.

PETROBRAS RELEASES LATEST STRATEGIC PLAN

MAERSK TO SPLIT INTO TWO DIVISIONSA.P. Møller Mærsk A/S is to split its operations into two distinct entities: 1. Transport & Logistics, and 2. Energy.

A.P. Møller Mærsk A/S will become an integrated transport and logistics company with digitalised and individualised customer solutions, while the company’s oil and oil related businesses, either individually or in combination, will all be separated from A.P. Møller Mærsk A/S in the form of joint-ventures, mergers or

listing. Depending on market developments and structural opportunities, Maersk’s objective is to find solutions for its oil and oil related businesses within the next 24 months.

The Energy division will consist of Maersk Oil, Maersk Drilling, Maersk Supply Service and Maersk Tankers. Maersk Oil will focus on optimising and strengthening its strong position in the Danish, British and Nor-wegian sectors of the North Sea.

Petrobras has released its 2017-2021 Strategic Plan, with a focus on two main indicators.

For the first indicator, Petrobras has set a target to reduce its Reportable Accident Rate from 2.2 accidents per one million man hours in 2015, to 1.4 over the next two years, and dropping further to 1 accident per one million man hours in 2021.

Secondly, Petrobras’ financial target determines that the company’s net debt should be equivalent to 2.5 times its cash generation in 2018. For its 2015 balance sheet, Petrobras’ net debt was 5.3 times its cash generation levels. In order to achieve this, Petrobras will maintain an “intense pace of partnerships and divestitures.”

Within its latest Strategic Plan, Petrobras has indicated that it is planning to invest a total of USD 74.1 billion over the 2017-2021 period, a 25% reduction from the USD 98.4 billion projection that had been laid out in its 2015-2019 Strategic Plan.

Of the USD 74.1 billion capital expenditures identified in this latest projection, 82% (USD 60.6 billion) will be allocated to exploration and production (E&P).

Around two-thirds of Petrobras’ E&P activities will be targeted at its pre-salt concessions, prioritising the development of deep-water production with a focus on strategic partnerships, combining technical competen-cies and technologies.

4 SEABREEZE

OSV MARKET ROUND-UP

K Line PSV KL Brisfjord will continue working for EnQuest in the UK sector into the new year, with the vessel’s contract recently extended until at least January.

The KL Brisfjord (pictured

c/o D Dodds) was built to the STX/VARD PSV 06 CD design and delivered in 2011. She has been working for EnQuest since February 2016, providing support to the charterer’s drilling campaign with semisubmersible rig Transocean Leader.

DOF has secured term contract extensions for a trio of vessels, one in the North Sea, one in North America, and one in South America.

In Norway, Statoil has extended its charter with PSV Skandi Mongstad for one more year, committing the vessel until at least October 2017. The Skandi Mongstad, a VS 495 DEM PSV, has been working for Statoil since her delivery in 2008.

In North America, PSV Skandi Flora (pictured) will continue working for Shell off eastern Canada for around six more months, occupying her until the end of the first quarter of 2017.

In Argentina, Total Austral has retained AHTS vessel Skandi Møgster for six more months from October 2016. DOF has indicated that its assumed

average EBITDA per day from the three contracts works out at approximately NOK 40,000-45,000 (USD 5,023-5,651) per vessel.

ENQUEST EXTENDS K LINE PSV

DOF VESSELS KEPT BUSY

Transocean has contracted the services of Finarge AHTS vessels A.H. Varazze and A.H. Valletta to tow its semisubmersible rig Sedco 704 from Burghead in the UK to Malta. The rig has left the North Sea market following the conclusion of a recent charter with Independent Oil & Gas in

the UK sector in August.

The A.H. Varazze and A.H. Valletta (pictured c/o O Halland), both 19,000 bhp vessels, only joined the AHTS market in the North Sea earlier this year. They are scheduled to conclude the Transocean tow in early October.

FINARGE VESSELS TOWING TRANSOCEAN RIG TO MALTA

SEABREEZE 5

OSV MARKET ROUND-UP

Farstad Shipping has decided to concentrate its oil service activities in Australia to its Perth office in the west of the country. This will see the closure of Farstad’s Melbourne office in Victoria, south Australia, and the owner’s onshore organisation will be reduced from 65 to

around 30 employees.

Farstad’s Perth office will now facilitate both its Australia headquarters and its regional operational centre, in addition to the company’s training and offshore simulation centre.

Allseas Brasil has contracted four Bravante Group PSVs on term charters to support pipe-lay operations offshore Brazil.

The Bravante V, Bravante VI, Bravante VII and Bravante VIII have all been chartered for a firm period of 130 days plus options

from November 2016.

The Bravante V, VI, VII and VIII are 4,500t deadweight vessels built to the STX/VARD SV290 design. They were constructed by the Eastern Shipbuilding Group in the USA and delivered in 2013 and 2014.

Maersk Supply Service has been awarded a contract with Maersk Oil to provide decommissioning services for the Janice field in the UK sector of the North Sea.

Maersk Supply will assume responsibility for engineering, project planning, and managing the scope of the subsea decom-missioning.

The Janice project will employ up to 10 Maersk Supply vessels, including anchor handlers, PSVs and subsea support vessels. As the lead contractor, Maersk Supply has also brought in three sub-contractors who will be supporting the engineering, ROV

work and waste management aspects of the project. Maersk has estimated that the project is

likely to take until the summer of 2018 to complete.

ALLSEAS BRASIL CHARTERS BRAVANTE QUARTET

FARSTAD CONCENTRATES AUSTRALIA ACTIVITIES

MAERSK SUPPLY SELECTED FOR JANICE DECOM SUPPORT

6 SEABREEZE

OSV RATES & UTILISATION

NORTH SEA SPOT AVERAGE UTILISATION SEPTEMBER 2016

TYPE SEP 2016 AUG 2016 JUL 2016 JUN 2016 MAY 2016 APR 2016

MED PSV 60% 68% 73% 80% 81% 83%

LARGE PSV 76% 85% 87% 96% 86% 81%

MED AHTS 51% 68% 64% 66% 46% 37%

LARGE AHTS 65% 71% 79% 76% 56% 53%

SEPTEMBER 2016 - DAILY NORTH SEA OSV AVAILABILITY

NORTH SEA AVERAGE RATES SEPTEMBER 2016

CATEGORYAVERAGE RATE

SEP 2016AVERAGE RATE

SEP 2015% CHANGE MINIMUM MAXIMUM

SUPPLY DUTIES PSVS < 900M2 £3,746 £6,584 -43.10% £2,350 £7,874

SUPPLY DUTIES PSVS > 900M2 £4,548 £5,930 -23.31% £2,000 £8,337

AHTS DUTIES AHTS < 18,000 BHP £11,159 £5,929 +88.21% £9,500 £14,000

AHTS DUTIES AHTS > 18,000 BHP £17,962 £8,809 +103.91% £6,947 £32,421

RATES & UTILISATION

DEPARTURES - NORTH SEA SPOT

A.H. VALLETTA MEDITERRANEAN

A.H. VARAZZE MEDITERRANEAN

HIGHLAND ENDURANCE CENTRAL AMERICA

HIGHLAND VALOUR CENTRAL AMERICA

SPOT MARKET ARRIVALS & DEPARTURES SEPTEMBER 2016

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

ARRIVALS - NORTH SEA SPOT

BRAGE VIKING EX RUSSIA

MAERSK BATTLER EX MEDITERRANEAN

SKANDI SAIGON EX SOUTH AMERICA

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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 £13,029 £22,921 £44,098 £18,230 £17,962 £- £- £-

Rig Moves

£-

£10,000

£20,000

£30,000

£40,000


PSVs > 900M2

£-

£5,000

£10,000

£15,000


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 £5,998 £5,397 £16,401 £22,718

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

£15,000


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

£15,000


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

£12,500


PSVs > 900m²

£-

£2,500

£5,000

£7,500

£10,000

£12,500


PSVs < 900m²

£-

£5,000

£10,000

£15,000

£20,000

£25,000

£30,000


Average Day Rates To Month (September 2016)

8 SEABREEZE

FEATURE VESSEL

The DEME Group has celebrated the launch of its multi-purpose vessel Living Stone at the LaNaval shipyard in northern Spain.

LIVING STONE SPECS:

Overall Length: 161mMoulded Breadth: 32mMax Draft: 6.5mCargo Deck Area: 3,500m²Accommodation: 100 personsMain Crane: 600tSecond Crane: 65tTrenching Tool: CBT 1100Dynamic Positioning: DP3Loading Capacity: 12,500tCable Carrousels: 5,000tMoon pool: 7.7m x 7.7mShip yard: LaNaval

LIVING STONE

The vessel is scheduled for final delivery during the second quarter of 2017. Her maiden campaign will see her mobilised to the Merkur offshore wind farm in Germany, where she will install inter array cables at the wind farm.

The newbuild vessel has also been awarded work to install cables at the world’s largest offshore wind farm, Hornsea Project One in the UK.

The Living Stone will provide support for transport and installation projects, as well as offshore power cable installa-tions and interconnectors for the future European Supergrid.

The Tideway operated-vessel

will be equipped with DP3 station keeping, and she has dual fuel engines with LNG used as its prime fuel. She is capable of accommodating a crew of up to 100 persons.

The Living Stone will feature a total loading capacity of 12,500t, and two large 5,000t cable/umbilical carousels which are arranged below deck to allow for a free deck area of around 3,500m². This will accommodate the modular cable/umbilical handling systems, remotely operated vehicles (ROVs), the subsea trenching tool CBT 1100 and the fall-pipe system. A 7.7m by 7.7m moon pool and a 600t crane for subsea installation and removal will also be installed.

SEABREEZE 9

OSV NEWBUILDINGS, S&P

The Fujian Southeast Shipyard in China has delivered AHTS vessel VOS Champion to Vroon Offshore. This is the second of six sister vessels that Fujian is building for Vroon to a Khiam Chuan Marine design, following the delivery earlier this year of VOS Challenge. The remaining

four vessels in the series, named VOS Chance, VOS Character, VOS Charisma and VOS Charm, are all due for delivery later in 2016 or in 2017.The VOS Champion has a length of 65m, breadth of 16.4m, a deck area of 425m² and a bollard pull of 85 tonnes.

The Eastern Shipbuilding Group in Florida, USA, has delivered a newbuild multi-purpose field support vessel to Harvey Gulf International Marine.The Harvey Stone was built to Robert Allan Ltd’s RAmpage 6400 MPFSV design. She has a length of 65m, breadth of 18m,

total engine power of 9,374 bhp and a bollard pull of 121 short tons.The Eastern Shipbuilding Group is also currently completing the Harvey Sub-Sea and Harvey Blue-Sea, two sister MPSVs. The Harvey Sub-Sea is scheduled for delivery before the end of 2016.

Newbuild PSV Mutawa 306 has mobilised to the Middle East following her recent delivery from Guangzhou Shunhai Shipbuilding in China.The vessel was built for UAE-based owner Mutawa Marine Works. She has a length of 56.2m, a breadth of 13.8m, a

depth of 5.5m and a maximum draft of 4.75m.The Mutawa 306 has a clear deck area of 329m², deadweight of 1,400t and a cargo capacity of 500t. She has an accommodation capacity for 38 persons in a combination of 1, 2 and 4-berth cabins.

VROON ADDS CHAMPION TO AHTS FLEET

MPFSV DELIVERED TO HARVEY GULF

CHINA-BUILT MUTAWA PSV MOBILISED TO MIDDLE EAST

ALP Maritime has accepted delivery of ALP Striker from the Niigata Shipyard in Japan.The ALP Striker is the first of four ultra-long distance towing and anchor handling vessels being built to Ulstein’s SX-157 design. She has a length of 88.9m, breadth of 21.0m, a deadweight of

4,250 tonnes and accommodation for 35 persons. During sea trials, the Striker achieved a continuous bollard pull of 309.6MT. She has a maximum speed of 19 knots and a service speed of 13 knots. The second vessel in the series, ALP Defender, is scheduled for delivery in November.

ALP STRIKER DELIVERED IN JAPAN

10 SEABREEZE

OSV NEWBUILDINGS, S&P

Rosneft has signed contracts with the Far Eastern Shipbuild-ing and Ship Repair Center (FESRC) for the construction of two more Icebreaker 7 class multi-purpose supply vessels, raising its order for this class

of vessel to four units. The first two vessels, being built at the Zvezda Shipyard in Bolshoi Kamen in south-eastern Russia, are due for delivery at the end of 2019 and in the first half of 2020 respectively.

ROSNEFT SIGNS ICEBREAKING MPSV CONTRACTS

EIDESVIK, FARSTAD AND MAERSK SELL TONNAGE

Austal Limited in western Australia has delivered an Incat-Crowther designed large crew transfer vessel to Caspian Marine Services Limited of Azerbaijan.The Rashid Behbudov is a 70m

catamaran, featuring DP2 station keeping and an Ampelmann walk-to-work gangway. She has a cargo deck area of more than 400m², and can carry 150 passengers (plus 16 crew) 400 nautical miles at 30 knots.

AUSTAL DELIVERS CREW TRANSFER VESSEL TO CASPIAN MARINE

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

ALP STRIKER ULSTEIN SX-157 AHT ALP MARITIME SERVICES TBC

HARVEY STONE RAMPAGE 6400 MPFSV HARVEY GULF INTERNATIONAL MARINE TBC

MUTAWA 306 1,400 DWT PSV MUTAWA MARINE WORKS TBC

RASHID BEHBUDOV INCAT-CROWTHER ‘OFFSHORE EXPRESS 70’ CTV CASPIAN MARINE SERVICES LTD CASPIAN

VOS CHAMPION 65M KCM AHTS VROON OFFSHORE SOUTHEAST ASIA

Given the difficult trading conditions in the global OSV market, Eidesvik Offshore, Farstad Shipping and Maersk Supply Service have entered into agreements recently to sell vessels that are deemed surplus

to fleet requirements.Eidesvik has agreed to sell PSV Viking Nereus, with the trans-action dependent on the buyer’s technical acceptance of the vessel in the fourth quarter of 2016. Eidesvik will record a NOK 55 million (USD 6.9 million) impairment loss on the vessel in its third quarter accounts. The Viking Nereus (pictured) is a 2004-built UT 755L PSV.Meanwhile, Farstad has sold AHTS Lady Sandra, a 1998-built KMAR 404 vessel. Following

an impairment charge of NOK 11 million (USD 1.4 million) in its second quarter accounts, the sale of the vessel will result in an immaterial accounting effect in Farstad’s third quarter results.Finally, Maersk Supply Service has offloaded another vessel, selling its 1992-built PSV Maersk Forwarder. Maersk recently announced its intention to reduce its fleet by 20 vessels over the next 18 months, with the majority to be either recycled or modified for other markets.

SEABREEZE 11

SUBSEA

Det Norske, Aker Solutions and Subsea 7 are to form an integrated project management team under an alliance aimed at saving time and costs on Det Norske’s Norwegian subsea developments.Det Norske advised that they will utilise Aker Solutions’ ex-pertise in front-end engineering, brownfield modifications and subsea systems, and Subsea 7’s capabilities in the engineering, procurement, installation and commissioning of subsea umbil-icals, risers and flowlines (SURF) under the agreement.The alliance follows the award of

USD 332 million worth of con-tracts in June for the Alvheim area, including subsea trees to Aker Solutions, and subsea umbilicals, risers and flowlines (SURF) to Subsea 7, under a four-year framework agreement. Det Norske has stated that the industry needs to find new, more sustainable ways of working on oil and gas developments and that this alliance enables a holistic approach to subsea developments that will promote an effective re-use of solutions and best practices across the portfolio to significantly save time and reduce costs.

The scope of the framework contracts has a total potential value of around NOK 2.8 billion, of which around NOK 800 million is Aker Solutions’ share and NOK 2 billion is Subsea 7’s portion. These values may change depending on how much work the operator calls for under the contracts.Overall management of the alli-ance will be through a steering committee comprised of senior management from each com-pany. The project management team will be led by a manager from Det Norske.

SEA TRUCKS SECURES WORK INTO 2017

SUBSEA MARKET ROUND-UP

Golden Energy Offshore Management has entered into a contract with Neptune Subsea to manage the 2011-built IMR vessels Larissa and Despina, covering general and commer-cial management.The Larissa is currently working for SNEPCO (Shell Nigeria), while the Despina is in lay-up

in Lyngdal, Norway. The SX 131-designed sister vessels are 98m in length, and are equipped with DP 2, 150t AHC cranes, and accommodation for 69 persons. Additionally, the moonpool is arranged with a three part hatch, and is arranged with interface and necessary enforcements for a Module Handling Tower.

GOLDEN ENERGY TO MANAGE LARISSA & DESPINA

Permaducto S.A. de C.V. (Protexa) has awarded Sea Trucks a contract to utilise its accommodation barge Jascon 31 for accommodation and heavy lift services offshore Mexico.The barge will support repair works at Pemex Line 221 at the Abkatun-A Platform in the Gulf of Mexico for a period of 50 days, followed by a similar work scope

at Pemex Lines 63a and 65 in the Ku-Maloob-Zaap field for 42 days plus options.Offshore activities are scheduled to start early in October 2016.The 2010-built DP3 barge has a length of 111m, and she is equipped with a 400-tonne heave compensated main crane, accommodation for 408 persons, a heave compensated gangway,

and 1,300m² of unobstructed deck space.

12 SEABREEZE

SUBSEA

Mermaid Maritime is currently evaluating bids and options it has received from third parties regarding the potential purchase

or lease of DP2 multipurpose subsea DSCV Mermaid Ausana.It was rumoured in early Sep-tember that Ultra Deep Solutions had purchased the newbuild, but Mermaid has confirmed that no final decision has been made yet. It was further rumoured that Ultra Deep would rename the Marin Teknikk MT6024 vessel as Lichtenstein.Mermaid and the vessel builder China Merchants Heavy

Industry have mutually agreed to extend the delivery date for Mermaid Ausana until 30 June 2017.The 121m-long vessel will be equipped with an 18-man twin bell saturation diving system for operation down to 300m, two 150 HP WROVs, two self-pow-ered hyperbaric lifeboats, and accommodation for up to 130 persons.

MERMAID AUSANA CLOSE TO BEING SOLD?

North Energy Capital has acquired an additional stake in Reach Subsea, making them the

second largest shareholder in the Norwegian contractor.After the acquisition of an additional 4,619,014 shares, this has increased their stake in the company to 9.8 per cent of the issued shares and voting rights.Meanwhile, West Supply II Operation has divested its 5.5 per cent of outstanding shares in Reach Subsea, and no longer holds any shares in Reach.

As per June 29, 2016, Accello Partners is the largest sharehold-er with 30.3 per cent, followed by North Energy Capital (after the recent purchase) with 9.8 per cent and Joso Invest with 7.9 per cent in third place.During the second quarter of 2016, Reach Subsea generated a net profit of NOK 3.3 million on revenues of NOK 89.5 million.

KREUZ SUBSEA NAMES NEWBUILD Kreuz Subsea has named its newbuild Vard 3 17 DSV Kreuz Challenger, with delivery scheduled in the second quarter of 2017 from Vard Soeviknes in Norway. The DP2 Kreuz Challenger is fitted with a 100-tonne active heave compensated offshore crane, and she can accommodate up to 105 persons. Additionally, she is also equipped with a 12-man saturation diving system for operations in water depths down

to 300m with a surface diving spread suitable for air diving down to 50m. Upon delivery, the newbuild will commence a multi-year contract in Brunei. As previously reported in Seabreeze, Kreuz Subsea was awarded a seven-year IRM contract with BSP (Brunei Shell Petroleum). The contract commenced in 2015 and will run until 2022. The IRM project consists of air diving and obser-vation class ROV work for 240

days per year (firm) plus options for 30 days per year of saturation diving. Kreuz Subsea chartered Bourbon Offshore’s IMR support vessel Bourbon Supporter to front-run for the newbuild.

NORTH ENERGY INCREASES STAKE IN REACH

SEABREEZE 13

SUBSEA

Seascape Surveys has been awarded subsea contracts in Southeast Asia with an undis-closed client, and has received a contract extension in the

Middle East. The total value of the contracts is estimated at a potential USD 5.1 million. The first contract will see DP2 diving support vessel Mermaid Nusantara carry out a 30-day installation project, involving heavy duty work-class ROVs in the Natuna Sea, Indonesia. The contract is due to commence no later than the first quarter of 2017.The second contract is to

provide survey and inspection services to a third-party diving vessel for around 45 days in Malaysian waters. Work for this contract has alrady commenced. Additionally, an EPC contractor in the Middle East has extended its contract with DP2 DSV Mermaid Endurer by a further month, together with additional standalone saturation diving support equipment and services.

Axis Offshore has entered into an agreement with Cosco shipyard to further postpone the delivery of its newbuild flotel Axis Nova.Following the completion of sea trials, the accommodation rig will be laid-up at the yard until August 20, 2017, but Axis can take delivery of the newbuild at any time with short notice.

This is an extension to the current agreement they have with the yard which expired on September 30, 2016. The rig was originally scheduled for delivery in the first quarter of 2015.The DP3 GM500A-designed Axis Nova has a length of 105 metres, a max lift of 110 tonnes and accommodation for 500 persons.

AXIS NOVA DELAYED

MERMAID SECURES ADDITIONAL WORK

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

SOLSTAD NORMAND MAXIMUS SAIPEM VARD BRATTVAAG DERRICK PIPELAY VARD 3 19 OCT

TECHNIP DEEP EXPLORER - VARD LANGSTEN DSV VARD 3 06 OCT

SUBSEA 7 SEVEN SUN PETROBRAS MERWEDE PIPELAY 550 OCT

TECHNIP SKANDI BUZIOS PETROBRAS VARD SOEVIKNES PIPELAY VARD 3 05 NOV

SUBSEA 7 SEVEN CRUZEIRO PETROBRAS MERWEDE PIPELAY - DEC

TOPAZ NAMES NEWBUILDSTopaz Energy and Marine has held a christening ceremony for its two newbuild IMR support vessels. Topaz has named the VARD 3 08 designed newbuilds as Topaz Tiamat and Topaz Tangaroa. The vessels are due

for delivery from Vard Brattvaag in Norway during the third and fourth quarters of 2017 respectively. The DP2 newbuilds will have a length of 98m, and they will be equipped with a 120t active-heave compensated

crane, two ROVs which will be deployed via Launch and Recovery Systems (LARS) over the side, and accommodation for 82 persons. Topaz also has options for a further two VARD 3 08 designed vessels.

14 SEABREEZE

RENEWABLES

DONG Energy plans to make a multi-million pound investment in Grimsby to create the UK’s largest offshore wind operations and maintenance hub.Subject to planning approval, the hub will support the Westermost Rough, Race Bank and Hornsea Project One offshore wind farms, with the capacity to support other east coast wind farms in DONG Energy’s future devel-opment pipeline from the Royal Dock.

A marine coordination centre capable of providing 24-7 service to offshore operations across the UK and beyond will be included in the investment. The facility will be served by vessels capable of accommodating up to 60 crew and technicians while remaining at sea for long periods. SOVs, supplied by Ostensjo Rederi and designed by Rolls-Royce, are being chartered to operate fromthe new hub.The first vessel will arrive late

in 2017 to support a phased activation on the new hub. The vessel will initially support the operation and maintenance of Race Bank, DONG Energy’s 580MW offshore wind farm currently under construction.

DONG TO INVEST IN GRIMSBY

WORLD MARINE SECURES WORK FOR NEWBUILDSIberdrola Renovables Offshore has awarded World Marine Offshore a contract to provide crew transfer vessels (CTVs) for operations and maintenance at the 350MW Wikinger wind farm offshore Germany. World Marine will utilise two 32-metre newbuilds, which are due to be delivered during 2017, for the campaign.

The vessels will feature a com-bined diesel electric and battery propulsion system and will have the ability to carry 20 tons of cargo on the foredeck. The Wikinger wind farm is located in water depths of around 30-40m, and will consist of 70 5MW wind turbines and one offshore substation, scheduled to be operational by the end of 2017.

VOS START TO PROVIDE W2W ON WALNEY

MHI Vestas Offshore Wind has awarded a contract to Vroon Offshore Services for the provi-sion of offshore logistics support, accommodation and walk-to-work services during the

construction of DONG Energy’s Walney Extension West offshore wind project.Vroon will deploy its newbuild subsea support vessel VOS Start, which is due to be delivered by Fujian Southeast Shipbuilding in China ready to commence operations in the 2017 season. The vessel will provide accom-modation and work space for up to 60 client personnel after the installation of a motion-com-pensated gangway to safely

transfer personnel, equipment and spare parts to wind turbines during commissioning. The VOS Start will also have the ability to perform mother-ship duties for crew-transfer vessels. The 300MW Walney Extension West will be the first phase of the 660MW Walney Extension offshore wind farm project. Construction is due to begin during the summer of 2017, while the wind farm is due to be fully commissioned in 2018.

SEABREEZE 15

RIGS

Maersk Oil has awarded new contracts to Diamond Offshore and Maersk Drilling for two separate plug and abandonment (P&A) campaigns in the UK sector of the North Sea.Diamond semisubmersible

Ocean Valiant has been chartered to P&A 13 wells at the Janice field from November 2016, while jackup Maersk Gallant has been contracted for 230 days from February 2017 for P&A work at the Leadon and James fields.

OIL PRICE VS RIG UTILISATION

RIG UTILISATION AND DAY RATESUTILISATION

SEP 2016

SEP 2015

SEP 2014

SEP 2013

SEP 2012

NORTHWEST EUROPE 57.3% 79.6% 95.9% 97.5% 96.5%

SOUTH AMERICA 74.3% 85.0% 93.8% 96.5% 97.9%

US GULF 35.0% 45.5% 65.8% 72.4% 70.7%

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

UK HARSH HIGH SPEC JACKUPS 88,600 88,600

UK HARSH STANDARD SEMISUBS 110,000 150,000

SOUTH AMERICA DEEPWATER SEMISUBS 175,000 275,000

GLOBAL ULTRA-DEEPWATER SEMISUBS 230,000 308,000

GLOBAL ULTRA-DEEPWATER DRILLSHIPS 180,000 350,000

INACTIVE RIGS NORTHWEST EUROPE

NAME TYPE STATUSBORGLAND DOLPHIN SS WARM STACK

BORGNY DOLPHIN SS COLD STACK

BREDFORD DOLPHIN SS COLD STACK

COSLINNOVATOR SS WARM STACK

COSLPIONEER SS WARM STACK

DEEPSEA METRO II DS COLD STACK

DEEPSEA STAVANGER SS WARM STACK

ENERGY ENDEAVOUR JU COLD STACK

ENERGY ENHANCER JU COLD STACK

ENSCO 70 JU COLD STACK

ENSCO 72 JU WARM STACK

ENSCO 101 JU WARM 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 GALLANT JU WARM STACK

MAERSK REACHER JU WARM STACK

MAERSK RESOLUTE JU WARM STACK

OCEAN NOMAD SS COLD STACK

OCEAN PRINCESS SS COLD STACK

OCEAN VALIANT SS WARM STACK

OCEAN VANGUARD SS COLD STACK

PARAGON B391 JU WARM STACK

PARAGON C462 JU COLD STACK


PARAGON C20051 JU WARM STACK


PARAGON HZ1 JU WARM STACK

POLAR PIONEER SS COLD STACK

ROWAN GORILLA VII JU WARM STACK

ROWAN NORWAY JU WARM STACK

ROWAN STAVANGER JU WARM STACK

SEDCO 711 SS COLD STACK

SEDCO 712 SS WARM STACK

SEDCO 714 SS COLD STACK

SERTAO DS COLD STACK

SONGA DEE SS WARM STACK

SONGA TRYM SS WARM STACK

SWIFT 10 JU WARM STACK

TRANSOCEAN BARENTS SS WARM STACK

TRANSOCEAN PROSPECT SS COLD STACK

TRANSOCEAN SEARCHER SS COLD STACK

WEST ALPHA SS WARM STACK

WEST HERCULES SS WARM STACK

WEST NAVIGATOR DS COLD STACK

WEST PHOENIX SS WARM STACK

WEST VENTURE SS COLD STACK

WILHUNTER SS WARM STACK

MAERSK OIL AWARDS P&A CONTRACTS

COBALT SHORTENS DRILLSHIP COMMITMENTCobalt International Energy has amended its contract with Row-an Companies to allow for an early termination of its charter with drillship Rowan Reliance in the US Gulf. The contract was due to expire on February 1, 2018, however the amendment

allows for a termination date of March 31, 2017. Cobalt will incur a fee of USD 96 million. As part of the agreement, Cobalt has committed to using Rowan as its exclusive provider of global drilling services for the next five years at market rates.

Source: IHS-Petrodata

$47.23 $48.12$44.42

$37.72

$30.80$33.20

$39.07$42.25

$47.13 $48.48$45.07 $46.14 $47.15

79.6%76.9% 75.4% 75.9%

74.2% 72.9%69.2% 68.2% 68.0% 66.3% 64.6%

60.5% 57.3%

85.0% 85.1% 84.6% 84.0% 83.2% 83.1% 82.3%78.6% 77.1%

75.1% 74.3% 74.6% 74.3%

45.5% 46.9%44.5%

44.4%

42.5%39.2%

39.1% 39.9% 38.2% 37.2% 36.4% 35.5% 35.0% $25

$30

$35

$40

$45

$50

$55

$60

$65

$70

$75

$80

30%

40%

50%

60%

70%

80%

90%

100%

Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 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

CONUNDRUM CORNERThe answer to last month’s teaser :-

Decipher the code below to find the names of six world class footballers. Who are they?

NFTTJ SPOBMEP DPTUBSJCFSZ OFVFS QPHCB

The correct answer was :- MESSI, RONALDO, COSTA, RIBERY, NEUER and POGBA

This month, our poser is as follows:

What number should replace the question mark in this sequence?

2 4 12 48 ? 1440

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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HERCULES SELLS THREE JACKUPSHercules Offshore Middle East Ltd has entered into an agreement to sell three drilling jackups to Egyptian company Advanced Energy Systems (ADES) S.A.E for a total price of USD 65,088,800.

The jackups being sold are Hercules 261, Hercules 262 and Hercules 266. The transaction is expected to close within 60 days from the execution date of August 31st, subject to certain closing conditions including the novation of drilling contracts related to the rigs. All three are currently working for Saudi Aramco.

The rigs are all 250ft IC jackups, built to the Marathon LeTourneau Class 82-SD-C design. The Hercules 261 and 262 were built by Davies Shipbuilding in Canada and delivered in 1979 and 1982 respectively. The Hercules 266 was built by Marathon LeTourneau in Brownsville, USA, and delivered in 1979.

Documents

SEPTEMBER 2016 MORE VESSELS TO BE SOLD OR SCRAPPED … · 4 SEABREEZE OSV MARKET ROUND-UP K Line PSV KL Brisfjord will continue working for EnQuest in the UK sector into the new year,