THE SEABROKERS MONTHLY MARKET REPORT JULY 2018 ENGULFED BY THE : TIDEWATER AND GULFMARK TO COMBINE CONTENTS

3 OSV MARKET ROUND-UP ABOUT SEABROKERS GROUP 6 OSV AVAILABILITY, RATES & The Seabrokers Group was established in 1982. We provide a unique and varied range of services to UTILISATION - clients. The Seabrokers Group has an experienced workforce within Shipbroking, Real Estate, Facili- 7 MONTHLY OSV SPOT RATES - ties Management, Construction, Sea Surveillance, Harbour Cranes and Safe Lifting Operations. NORTH SEA Our head office is located in Stavanger, but we also have offices in Aberdeen, Bergen and Rio de 8 FEATURE VESSEL Janeiro. The Seabrokers Group is different – and we are 9 OSV NEWBUILDINGS, CONVERSIONS, proud of this fact. Our information, experience and knowledge provide us with the ability to perform SALE & PURCHASE in our diverse business areas. 11 SUBSEA Seabrokers Chartering AS and Seabrokers Ltd are certified by DNV GL in line with Management System Standard ISO 9001:2008. 14 RENEWABLES 15 RIGS 16 CONUNDRUM CORNER & DUTY PHONES

SHIPBROKING REAL ESTATE

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© Seabrokers Group 2018 www.seabrokers-group.com OSV MARKET ROUND-UP

OWNERS READY FOR TIDEWATER AND GULFMARK TO COMBINE

HIGHER RATES The Boards of Directors at of the combined company will be Tidewater Inc and GulfMark approximately USD 1.25 billion. July turned out to be yet Offshore Inc have unanimously As part of this process, USD 100 another exasperating month approved a definitive agreement million of existing GulfMark for AHTS owners in the North to combine the two companies. debt is expected to be repaid. Sea. Summer is here... this is The transaction is expected This will enable Tidewater when they are expecting to to close in the fourth quarter to maintain its pro forma net make their money, and it just of 2018, with the combined debt of approximately USD 100 hasn’t happened so far this year. company operating under the million, with pro forma available Average spot AHTS rates over Tidewater brand under the liquidity of more than USD 300 the last few months have varied leadership of Tidewater million. from GBP 8,500 - 17,000, which CEO John Rynd. makes pretty grim reading for With a fleet of circa 245 vessels, owners (see p.7 for details). GulfMark shareholders will the combined company will have The market has been impacted receive 1.1 shares of common the industry’s largest fleet, and because a general expectation for Tidewater stock for each share the transaction is expected to improved trading conditions this of GulfMark common stock held. generate cost synergies of around year persuaded several owners The equity market capitalisation USD 30 million. to reactivate vessels from layup, or to relocate tonnage from other regions, thereby increasing the VESSEL VALUES ON THE RISE... SLOWLY competition for work. As the offshore crisis emerged 1990s, Tord Stemland, stated However, while charterers in 2014, banks still had to assess “we have definitely stopped have been enjoying the low their capital commitments decreasing our valuations for rates recently, perhaps they against the value of the assets modern vessels and are now should brace for a changing of being financed and used as looking North instead of South. the tide, with a long list of rig collateral. And in the depth of the As far as we can see, this will be moves scheduled for August. crisis, shipbrokers lowered their the direction for the foreseeable The market has already shown vessel valuations in response future, unless the forthcoming signs of tightening, and the to the declining activity. In this restructuring between owners long-suffering AHTS owners respect, Seabrokers was one of and lenders produce significant are poised to capitalise if there is the first offshore shipbrokers to numbers of stranded assets.” The an opportunity to pick up some start lowering ship values. methodology for charter-free more lucrative fixtures. valuations between a willing But in view of higher oil prices, seller and a willing buyer is In the PSV market, owners have and increased rig and vessel based upon three fundamental experienced further marginal tender activity, Seabrokers are pillars – newbuilding prices of improvements to trading of the opinion that the bottom similar tonnage (age adjusted), conditions. July drew this year’s of the market is behind us and second-hand transactions of highest average spot rate of we are now raising the values similar tonnage (age adjusted if GBP 9,360 for large vessels, and of large and modern tonnage, needed), and Seabrokers’ opinion owners will be hoping this will albeit in small steps. Seabrokers’ of the charter market for similar continue throughout the summer. lead valuation analyst since the tonnage going forward 6 months.

SEABREEZE 3 OSV MARKET ROUND-UP

GLOBAL FIXTURES FOR SOLSTAD FARSTAD

In further signs of an improving market, SolstadFarstad has picked up new term fixtures in various regions around the globe in recent weeks.

In the eastern hemisphere, AHTS vessel Far Statesman has been contracted for a five-month period to support Eni with a deepwater drilling programme with semisubmersible Scarabeo 7 offshore Indonesia. The charter commenced in July.

In Oceania, AHTS vessels Far Senator (pictured c/o O Halland) and Far Saracen, and PSV Sea Cooper Energy but will remain Elsewhere, BP Egypt has retained Swan, will continue supporting with the Monarch when it moves PSV Sea Swift for another year, semisubmersible rig Ocean onto an ExxonMobil contract, and Equinor Brasil has awarded Monarch offshore Australia. The potentially keeping them busy three-month extensions to PSVs vessels have been working for until the first quarter of 2019. Far Scotsman and Far Serenade. MØKSTER VESSELS STAY WITH AKER BP Simon Møkster Shipping has least October 2018. received contract extensions with Aker BP that will see two of Both vessels were built to the its large PSVs firmly committed STX (VARD) PSV 09L CD design, offshore Norway for at least and delivered in 2011 and 2012 three more months. The Stril respectively. They have a length Orion and Stril Polar (pictured) of 93.5m, breadth of 19.0m and will now be kept busy until at deck area of more than 1,000m². NEW DENMARK CONTRACT FOR CLIPPER Havila Shipping has entered since mid-2014, and will now into a new contract with Total continue in a similar role going for a six-month charter of its forward but with Total since its PSV Havila Clipper offshore acquisition of Maersk Oil. The Denmark. Clipper (pictured c/o O Halland) is a Havyard 832 PSV. She is now The vessel has been working for firmly committed until at least Maersk Oil offshore Denmark January 2019.

4 SEABREEZE OSV MARKET ROUND-UP

PEMEX DISHES OUT TERM FIXTURES

PEMEX has awarded a raft of new contracts in recent weeks, securing no fewer than eight Mexican-flagged vessels on multi-year charters.

According to IHS-Petrodata, the vessels were contracted for a period of 905 days, starting in July, that will see each of them committed offshore Mexico until the end of 2020.

Tidewater was the recipient of three PSV fixtures, for the Greenwood Tide (pictured c/o M Prendergast), Hebert Tide and Lousteau Tide. Mantenimiento Express The eighth and final contract Maritimo for PSV Seacor Pride; award went to Grupo TMM, for The other successful parties were Marinsa de Mexico for PSV an equivalent 905-day contract, Administradores Navieros del Atalaya; and Naviera Bourbon but this time for an AHTS vessel, Golfo for PSV NN Algeiba; for PSV Cabo Rojo. the Isla Santa Cruz. CNR KEEPS K LINE PSV CNR International has exercised supporting operations at the a one-year option on its contract Ninian field in the northern with K Line PSV KL Brevikfjord. North Sea. The Brevikfjord, This extension will keep the delivered in 2010, was built vessel occupied in the UK sector to the STX (VARD) PSV 06 until at least July 2019. The KL CD design. She has a length of Brevikfjord has been working 94.9m, a breadth of 20.0m and a for CNR since July 2016; she is deck area of 1,100m². CONTENDER FOR ENQUEST AND TAQA EnQuest Heather Ltd and TAQA with two further one-year Bratani Ltd have awarded a options available. She will be contract to North Star Shipping providing emergency response for a multi-year charter with cover at EnQuest’s Heather ERRV Grampian Contender in field and TAQA’s Cormorant the UK sector of the North Sea. Alpha platform. The Grampian The vessel has been contracted Contender is a 2006-built IMT for a firm period of two years 948 ERRV.

SEABREEZE 5 OSV RATES & UTILISATION

JULY 2018 - DAILY NORTH SEA OSV AVAILABILITY PSV 2018 PSV 2017 AHTS 2018 AHTS 2017 22

20

18

16

14

12

10

8

6

4

2

0 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 31 RATES & UTILISATION

NORTH SEA SPOT AVERAGE UTILISATION JULY 2018 TYPE JUL 2018 JUN 2018 MAY 2018 APR 2018 MAR 2018 FEB 2018 MED PSV 58% 72% 64% 57% 58% 56% LARGE PSV 80% 82% 75% 83% 74% 76% MED AHTS 58% 44% 46% 63% 55% 23% LARGE AHTS 59% 58% 56% 61% 60% 61%

NORTH SEA AVERAGE RATES JULY 2018 AVERAGE RATE AVERAGE RATE CATEGORY % CHANGE MINIMUM MAXIMUM JUL 2018 JUL 2017 SUPPLY DUTIES PSVS < 900M2 £8,275 £10,271 -19.43% £4,500 £18,650

SUPPLY DUTIES PSVS > 900M2 £9,360 £9,709 -3.59% £5,500 £18,666 AHTS DUTIES AHTS < 22,000 BHP £12,303 £38,293 -67.87% £5,500 £30,000 AHTS DUTIES AHTS > 22,000 BHP £14,112 £29,457 -52.09% £7,000 £29,865 SPOT MARKET ARRIVALS & DEPARTURES JULY 2018

ARRIVALS - NORTH SEA SPOT DEPARTURES - NORTH SEA SPOT PACIFIC DOVE EX WEST AFRICA PACIFIC DOVE MEDITERRANEAN SKANDI SAIGON EX MEDITERRANEAN PACIFIC LEADER WEST AFRICA SKANDI SKANSEN WEST AFRICA UNION PRINCESS WEST AFRICA

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

6 SEABREEZE NORTH SEA AVERAGE SPOT RATES

£40,000£15,000

PSVs < 900m² £12,500 All Cargo Runs £30,000 £10,000 £20,000 £7,500 £5,000 £10,000 £2,500 £- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2017 £5,958 £8,428 £7,794 £6,332 £5,675 £5,452 £10,271 £13,107 £11,516 £7,444 £6,017 £8,208

2018 £4,996 £5,844 £5,968 £8,333 £7,589 £7,631 £8,275 £- £- £- £- £-

£15,000

PSVsPSVs > 900m² < 900M²900M2 £12,500

£10,000

£7,500

£5,000

£2,500

£- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2017 £5,764 £6,777 £8,126 £6,667 £5,642 £5,684 £9,709 £12,431 £11,203 £6,425 £5,203 £7,447 2018 £5,959 £5,627 £5,737 £7,856 £8,400 £7,585 £9,360 £- £- £- £- £-

£50,000£40,000 AHTS < 22,000 bhp PSVs > 900M²900M2 £30,000£40,000 £30,000 £20,000 £20,000 £10,000 £10,000

£- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2017 £13,890 £7,833 £33,270 £14,868 £6,875 £8,036 £38,293 £26,819 £9,001 £5,161 £17,299 £20,196 2018 £5,481 £6,643 £20,748 £25,958 £8,733 £9,875 £12,303 £- £- £- £- £-

£40,000 AHTS > 22,000 Rig Moves bhp £30,000

£20,000

£10,000

£- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2017 £16,229 £15,789 £33,182 £19,396 £7,788 £14,237 £29,457 £24,182 £15,109 £5,593 £9,171 £16,674 2018 £8,736 £9,410 £14,003 £32,322 £12,843 £16,931 £14,112 £- £- £- £- £-

£20,000£25,000 Average Day RatesAverage To Month Day Rates (Jul 2018) To Month (June 2013) £20,000 £15,000 £15,000 £10,000 £10,000 £5,000 £5,000

£- PSVs < 900m² PSVs > 900m² AHTS < 22,000 bhp AHTS > 22,000 bhp 2017 £6,627£7,040 £6,404£6,766 £16,000£20,792 £17,939£20,192 2018 £6,662£6,854 £6,783£7,142 £11,893£11,954 £15,608£15,418

SEABREEZE 7 FEATURE VESSEL

ISLAND DILIGENCE

Island Offshore has taken delivery of the Rolls Royce UT 717 CDX designed Island Diligence from the Vard Brevik yard in Norway.

The walk-to-work vessel has The SPS-classed vessel has a recently completed sea trials off length of 86.0m, a breadth of Norway and it is understood that 18.5m and a maximum draft of she will soon commence her first 6.1m. assignment, with AkerBP, which could see her utilised for a period The Island Diligence is equipped ISLAND DILIGENCE SPECS: of three months. with a permanently installed Uptime active motion compen- Owner: Island Offshore The Diligence is expected to sated gangway, an ROV platform Build Yard: Vard Brevik mobilise to the Tambar field and a 20-tonne active-heave Design: UT 717 CDX in the southern portion of the compensated crane, complete LOA: 86.0m Norwegian North Sea, where she with 1,200m of wire. Breadth: 18.5m will be utilised as an accommo- Deck Area: 500m² dation vessel to cover work that The vessel has a combination of Deadweight: 4,200t is taking place on the wellhead 290m² of uncovered & 210m² of Accommodation: 100 persons platform. covered deck area. Gangway: Uptime

8 SEABREEZE OSV NEWBUILDINGS, S&P

TWO NEWBUILDS FOR ESVAGT Esvagt has recently accepted was built by the Cemre Shipyard delivery of two newbuild vessels, in Turkey. The Esvagt Dana has establishing further growth been chartered by GE to work at in the offshore wind and oil & the Merkur Offshore Wind Farm gas sectors. The Esvagt Dana, in the German sector, while the a Havyard 931 SOV, was built Esvagt Innovator (pictured) will at the Zamakona Shipyard in be supporting Hess’ oil & gas Bilbao, Spain, while the Esvagt production in the Danish sector Innovator, a Havyard 832 MPV, on a ten-year contract. ALLIANZ ACQUIRES FOUR FROM SEACOR Seacor Marine has sold four since 2015. The vessels have AHTS vessels to Allianz Middle been renamed as Allianz Steel, East Ship Management. The Silver, Palladium and Titanium. vessels in question are the The Steel and Silver are DP2 ves- 2004-built Seacor Steel and sels with power of 8,000 Seacor Silver (pictured), and the and 16,000 bhp respectively; the 2011-built Seacor Palladium and Palladium and Titanium are DP1 Seacor Titanium, all of which vessels with a length of 63m and have been laid up in Singapore engine power of 6,400 bhp. KIM HENG BUYS TWO VESSELS BUT FLIPS ONE Kim Heng Offshore & Marine intent for a two-month charter Holdings has acquired two for the vessel, which is due to more offshore support vessels, commence later this quarter although one of these was once she is reactivated from immediately resold. The Lewek layup. Meanwhile, Kim Heng Lynx (pictured) was acquired also recently bought chase vessel from Emas Offshore, and will Swissco Summit from Swissco be renamed Mazu 60. Kim Holdings, but she has since been Heng has received a letter of sold on to Vietnamese owners. SEA JACKAL RENAMED KAOUENN Following the confirmation from commercial manager. SolstadFarstad that AHTS vessel The Kaouenn, delivered by Sea Jackal had been sold, it has the ABG Shipyard in India in since emerged that the vessel 2011, was built to the SeaTech has been renamed as Kaouenn. P-729 design. She has a length of Recent reports indicate that the 63.4m, breadth of 15.8m and a vessel’s new owner is Perenco- bollard pull of 91t. The vessel has affiliated Dixstone Holdings Ltd, been laid up in Norway since the with ABC Maritime listed as the fourth quarter of 2016.

SEABREEZE 9 OSV NEWBUILDINGS, S&P

HAYFIN & BREAKWATER BACK UOS ACQUISITION United Offshore Support GmbH, GmbH & Co KG and Hartmann backed by funds managed by Offshore GmbH & Co KG. The Hayfin Capital Management two businesses provide com- and Breakwater Capital, has mercial and technical-nautical been established to acquire management services to a fleet the commercial and technical of 13 AHTS vessels, including the management businesses of both GH (UOS) Columbia (pictured UOS United Offshore Support c/o D Dodds). SEABIRD BUYS SEISMIC VESSEL SeaBird Exploration Plc has The transaction value was entered into an agreement to USD 17 million. The Geowave acquire seismic vessel Geowave Voyager was built in 2009 for Voyager, along with seismic an original construction cost of equipment, from Exploration approximately USD 120 million, Vessel Resources II AS, a wholly excluding in-sea recording and owned subsidiary of CGG S.A. source equipment. FPSO NAMING CEREMONY AT KEPPEL A naming ceremony has been mobilise to West Africa. She will held at the Keppel Shipyard in be deployed to Perenco’s Yombo Singapore for an FPSO built for field offshore the Republic of Dixstone Holdings, an affiliate of the Congo. La Noumbi will be Perenco. Named La Noumbi, the capable of producing 12,000 vessel is scheduled for delivery barrels of oil per day and storing this quarter, and will thereafter 762,062 barrels of oil onboard. ROLLS-ROYCE SELLING COMMERCIAL MARINE BUSINESS Rolls-Royce has agreed to sell automation and control, a 30- its Commercial Marine business country service network, and to Kongsberg for an enterprise the ship design capability which value of GBP 500 million and net has seen around 1,000 ships of proceeds of around GBP 350 to Rolls-Royce design delivered to 400 million. The sale includes offshore, cargo, passenger and propulsion, deck machinery, fishing vessel owners worldwide.

RECENT DELIVERIES OF NEWBUILD OSVS

NAME TYPE/DESIGN OWNER/ MANAGER COMMITMENT ESVAGT DANA HAVYARD 931 SOV ESVAGT NORTHWEST EUROPE ESVAGT INNOVATOR HAVYARD 832 MPV ESVAGT NORTHWEST EUROPE

10 SEABREEZE SUBSEA

SUBSEA MARKET ROUND-UP Development plans, final project to produce, liquify and related facilities on behalf of the investment decisions and project market natural gas from the joint venture, and Eni will lead approvals are continuing to get Mamba fields in Area 4 offshore the construction and operation the green light, fresh Mozambique. The plan provides of upstream facilities. air into the oil & gas industry. details of the proposed design These developments provide and construction of two liquefied Rovuma LNG is operated by further encouraging signs that natural gas trains which will Mozambique Rovuma Venture the market will look different each produce 7.6 million tons S.p.A., an incorporated joint over the next 12-18 months for of LNG per year. The final venture owned by ExxonMobil, all stakeholders, including vessel investment decision is scheduled Eni and CNPC, which holds owners. for 2019, with LNG production a 70% interest in the Area 4 expected to commence in 2024. concession. The other parterns The Mozambique Rovuma are Galp, KOGAS and Empresa Venture has submitted its ExxonMobil will lead the Nacional de Hidrocarbonetos development plan for the first construction and operation of E.P. (ENH), each holding a 10% phase of the Rovuma LNG the natural gas liquefaction and interest. EQUINOR SUBMITS TROLL PHASE 3 DEVELOPMENT PLAN via subsea installations tied-in to and offshore installation the Troll A platform in the third activities. The offshore work phase of development, which will include the installation of will have a break-even price of two integrated subsea template less than USD 10 per barrel. structures and manifolds, two Following the plan submission, foundation structures and Equinor awarded DeepOcean PLEMs, the installation of Equinor has submitted a NOK a contract to perform marine spools, the laying of MEG line 7.8 billion plan to develop gas operations on the Troll Phase 3 and umbilical, and the tie-in and reserves in the western part of project. commissioning activities. its Troll field offshore Norway. The award to DeepOcean covers The offshore campaign will be Reserves of 2.2 billion barrels of project management, engineer- carried out between 2019 and oil equivalent will be produced ing, procurement, fabrication 2021. LUKOIL MAKES FID ON CASPIAN PROJECT Lukoil has announced its final fixed ice-resistant platform at use of the existing infrastructure investment decision for its the offshore V. Filanovsky field. for treatment and transportation Caspian Sea Rakushechnoye Commercial production is of products along with the power field development. scheduled to commence in 2023. supply at the Rakushechnoye The field will consist of a fixed Lukoil has stated that the close field. offshore ice-resistant platform, proximity to the company’s a living quarters platform and a producing fields in the Caspian crossover bridge, with subsea in- Sea has made it possible to terfield pipelines and cable lines significantly optimise this field for connection with a second development project through the

SEABREEZE 11 SUBSEA

MINISTRY APPROVES SNORRE EXPANSION approved Equinor’s plan for the The Snorre field was originally development and operation of its expected to produce until Snorre Expansion Project. 2011–2014. However, the field The project will involve a com- life has now been extended prehensive subsea development beyond 2040, and the recovery with an upgrade to the Snorre rate increased from 46 to 51 per A installation, along with cent. The expansion project is The Norwegian Ministry of increased gas injection and gas scheduled to start production in Petroleum and Energy has import for injection. 2021. ISLAND PRIDE SECURES SEVEN-YEAR CHARTER Island Offshore has secured a data acquisition and analysis, deep-water geophysical pre- seven-year charter with Ocean and support a variety of global engineering route survey. Infinity, which will see the UT operations. 737 CD-designed Island Pride In June, Ocean Infinity was used on the campaign. awarded a contract with The 2014-built vessel has a 130t Woodside Energy for the pro- subsea crane, two work-class vision of data in support of the ROVs and accommodation for 90 Scarborough field development persons. She will expand Ocean offshore Australia. The contract Infinity’s platform for AUV with Woodside involves a KEEL LAID FOR SEVEN VEGA 7‘s new reel-lay pipelay vessel flowlines, in water depths of up in Krimpen aan den Ijssel, the to 3,000m. Netherlands. Royal IHC signed a contract The newbuild vessel has been with Subsea 7 in October 2017 named Seven Vega. Her pipelay for the design and construction system will enable the installa- of the vessel and associated tion of complex rigid flowlines, equipment. The Seven Vega is In early July, Royal IHC held a including pipe-in-pipe systems scheduled to join Subsea 7’s fleet keel laying ceremony for Subsea and electrically heat traced in the first half of 2020. PETROBRAS AWARDS MASTER SERVICE AGREEMENT Petrobras has awarded Technip- lines. This includes maintenance FMC a three-year master service services, technical assistance, agreement in Brazil, with an inspection and end-fitting the option for the contract to be re-termination of flexible pipes extended for two more years. and umbilicals, plus installation The agreement covers subsea support and engineering analysis components for both subsea of operations and installation equipment and flexible pipe- conditions.

12 SEABREEZE SUBSEA

PERENCO SUBMITS TYNE DECOMMISSIONING PLAN Perenco has submitted its draft in 1992, with production com- producing life, utilising it as an decommissioning programme for mencing in November 1996. Due infrastructure hub for third party the Tyne South and Guinevere to the reduction of gas produced, tie backs and enhanced recovery installations to UK authorities. the field ceased production in programmes, but none of these Perenco plans to remove to shore November 2015. were commercially viable. the Tyne South topsides, jacket, Prior to submitting this plan, and subsea installation for re-use Perenco did assess several or recycling. options for the use of the plat- The Tyne field was discovered form, including extending its BOTNICA SECURES ESCORT ICEBREAKING DUTIES Botnica to work as an escort duties. In the winter, TS has an icebreaker in the Canadian agreement with the Estonian Arctic. The 1998-built vessel Maritime Administration, which has begun her charter providing is valid until 2022, under which icebreaking support on behalf Botnica provides icebreaking of Baffinland Iron Mines, and services in Estonian coastal this will keep her occupied waters. until mid-August. The Botnica The maximum ice thickness in TS Shipping Port of Tallinn has will return to the same client which the vessel is capable to been awarded a contract for from mid-September until late maintain speed is 1.2m. its DP3 offshore support vessel October for further icebreaking REACHING OUT FOR HARMONY Reach Subsea has chartered the utilisation. that its Houston office had been MT-6010 designed IMR vessel The Havila Harmony is in Gran awarded several contracts by oil Havila Harmony to help fulfil Canaria undergoing planned majors in the region, comprising contracts that were recently maintenance. Upon completion, some 100 days of work going awarded to its Houston office. she will proceed to her first job, forward. The contract is for three years where Reach will utilise the with two further yearly options. vessel on its own projects in Reach has agreed to charter the America. The 2005-built vessel vessel for a minimum number of has a length of 93m, a 150t crane, days per year and the owner and and an accommodation capacity charterer will market the vessel for 86 persons. to secure the highest possible Reach Subsea has announced TECHNIPFMC WINS GORGON INSTALLATION TechnipFMC has been awarded The contract includes project umbilicals and flying leads as well the subsea installation contract management and engineering, as manifolds. It also includes the for Chevron’s Gorgon Stage Two and the transportation, installa- fabrication, transportation, instal- development offshore Australia. tion and pre-commissioning of lation and testing of rigid spools.

SEABREEZE 13 RENEWABLES

TWO SNAP UP MPI OFFSHORE namely the MPI Adventure vessel has a maximum operating and MPI Resolution, with their water depth of 40m, and she associated contracts. features a 1,000t main crane, with Meanwhile, another part of the a deadweight of 6,000 tonnes and MPI Offshore operation has been accommodation for 112 persons. sold to Jan De Nul in a deal which The Discovery is equipped with includes offshore jack-up crane six legs to lift herself above sea vessel MPI Discovery and its level for stable working without Vroon has signed a letter of intent crew, as well as a number of MPI the impact of waves. to sell MPI Offshore in the UK employees. The transaction is subject to the to Van Oord, which will take The MPI Discovery, built in 2011, approval of competition author- over its operations in Stokesley, was specifically designed to trans- ities and due diligence and is UK. Van Oord will also assume port, lift and install offshore wind expected to be closed by the end control of two vessels and crew, turbines and foundations. The of September 2018. BERNHARD SCHULTE ORDERS THIRD SOV Bernhard Schulte has ordered a chosen to fulfil the GE Renewable of 500m². The newbuild will also third newbuild SOV with Ulstein Energy tender requirements, as include large storage capacities, Verft. The vessel will be delivered well as the owners’ special choice of which half is under roof in a in early 2020 and will support GE of mission equipment. controlled environment, with Renewable Energy’s maintenance The 93.4m vessel will be stepless approach to the offshore work at the Merkur wind farm equipped to accommodate up installations. She will be equipped offshore Germany. to 120 persons, with a centrally with a fuel-efficient drive system, Unlike her predecessors, the positioned walk-to-work motion including a battery . 2016-built Windea la Cour and compensated gangway and eleva- 2017-built Windea Leibniz, this tor tower for personnel and cargo vessel will be built to Ulstein’s SX transfers. She will be equipped 195 design as opposed to the SX with a 2t-capable 3D compensat- 175 design. This design has been ed crane, with a clear deck area UREA TO BE USED ON EDDA MISTRAL owners will combine the urea ros Gondan shipyard in Spain in with water and then inject August. Following delivery, she the mist through a catalyst will operate at Ørsted’s Hornsea into the exhaust. The power Project One wind farm offshore management system will reduce the UK. The UT 540 WP vessel the engine load to save 20% of is equipped with a 23m Uptime fuel consumption, and the waste heave compensated walk-to- heat will be re-used to warm up work gangway, with a 3D com- Østensjø Rederi plans to the air on the vessel instead of pensated crane, accommodation inject urea into the exhausts using electrical power. for 20 crew and 40 technicians, of newbuild SOV Edda Mistral The SPS-classed newbuild is due and a CTV landing system with in order to cut emissions. The to be delivered from the Astille- a bunkering facility.

14 SEABREEZE RIGS

OIL PRICE VS RIG UTILISATION INACTIVE RIGS NORTHWEST EUROPE 100% $80 NAME TYPE STATUS

$76.65 $75 90% $75.96 $75.04 BAUG JU COLD STACK $71.63 $70 80% 74.9% 75.8% 73.4% 72.9% 73.4% 73.1% 72.9% 73.0% 71.9% BIDEFORD DOLPHIN SS WARM STACK 71.7% 71.1% 70.1% 69.7% $65 70% $64.21 $68.99 $62.57 $65.42 $66.45 $60 BORGLAND DOLPHIN SS WARM STACK 69.7% 69.9% 60% 58.1% $57.62 66.7% $55 62.2% BREDFORD DOLPHIN SS COLD STACK 59.4% $55.16 59.5% 60.7% 57.9% 56.7% 57.2% 57.5% 58.4% $50 50% $51.37 45.1% 43.3% BYFORD DOLPHIN SS WARM STACK $48.69 42.3% 40.6% 42.1% 38.7% $45 35.8% 36.0% 35.9% 40% 33.5% 34.0% 35.1% 34.7% $40 COSLPROSPECTOR SS WARM STACK 30% $35 EIR JU COLD STACK 20% $30 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 ENSCO 70 JU COLD STACK Average Brent Crude US$ / Bbl Northwest Europe Rig Utilisation South America Rig Utilisation US Gulf Rig Utilisation ENSCO 71 JU COLD STACK FLOATER FIXTURES FOR TRANSOCEAN ENSCO 80 JU COLD STACK ENSCO 121 JU WARM STACK Transocean has picked up a range Transocean 712 with Conoco of floating rig contracts recently. Phillips off the UK, a six-month MAERSK GALLANT JU WARM STACK

The most significant were an 11- extension for semi Transocean MAERSK GIANT JU COLD STACK well contract for ultra-deepwater Barents with Suncor offshore MAERSK REACHER JU WARM STACK semi GSF Development Driller 1 Canada, and a one-year extension with Chevron offshore Australia, for semi Henry Goodrich with POLAR PIONEER SS COLD STACK a 13-well contract for semi Husky Oil, also offshore Canada. PROSPECTOR 5 JU HOT STACK 3-YEAR CONTRACTS FOR 6 ROWAN RIGS RAN JU WARM STACK ARO Drilling has been awarded Rowan Mississippi and Scooter ROWAN NORWAY JU WARM STACK new three-year contracts with Yeargain. The new terms will ROWAN STAVANGER JU HOT STACK Saudi Aramco for six Rowan start upon the conclusion of the SCARABEO 5 SS COLD STACK jackups that are already working rigs’ current contracts later this offshore Saudi Arabia: the Arch year. ARO Drilling is a 50-50 SEDCO 711 SS COLD STACK

Rowan, Charles Rowan, Hank joint venture between Rowan SEDCO 714 SS COLD STACK Boswell, Rowan Middletown, and Saudi Aramco. SERTAO DS COLD STACK RIG UTILISATION AND DAY RATES SONGA DEE SS COLD STACK JUL JUL JUL JUL JUL UTILISATION SONGA DELTA SS COLD STACK 2018 2017 2016 2015 2014 NORTHWEST EUROPE 69.9% 57.9% 64.6% 84.5% 97.3% SWIFT 10 JU WARM STACK SOUTH AMERICA 69.7% 73.4% 74.3% 85.2% 94.2% WEST ALPHA SS COLD STACK US GULF 45.1% 33.5% 35.0% 52.0% 70.2% WEST EPSILON JU COLD STACK RECENT DAY RATE BENCHMARKS LOW (USD) HIGH (USD) WEST NAVIGATOR DS COLD STACK UK HARSH HIGH SPEC JACKUPS 69,500 100,000 NORWAY HARSH HIGH SPEC JACKUPS 160,000 160,000 WEST VENTURE SS COLD STACK UK HARSH STANDARD SEMISUBS 115,000 116,200 WILHUNTER SS COLD STACK NORWAY HARSH HIGH-SPEC SEMISUBS 160,000 160,000 GLOBAL ULTRA-DEEPWATER SEMISUBS 118,000 145,000 WILPHOENIX SS HOT STACK GLOBAL ULTRA-DEEPWATER DRILLSHIPS 142,000 160,000 Source: IHS-Petrodata

SEABREEZE 15 CONUNDRUM CORNER, DUTY PHONES

4-PEAK CHALLENGE CHAMPS! THE SEABREEZE ARCHIVE

Seabrokers would like to congratulate the “Peaky For the current or archive copies of Seabreeze go Climbers” from Aberdeen, who successfully scaled to: http://www.seabrokers.co.uk/ - see under the highest peaks in Scotland (Ben Nevis), England Shipbroking / Market Reports. If you wish to (Scafell Pike), Wales (Snowdon) and Northern Subscribe or Unsubscribe please contact: Ireland (Slieve Donard) in just four days, one day [email protected] ahead of schedule! The climbers have already raised more than £5,000 for charity, but any help to boost them towards their £10,000 target would be appreciated. One of the team (John Sim from SEABROKERS GROUP CONTACTS Peterson) has also promised to shave his hair if they reach the £7k mark... so please get donating! SEABROKERS HEAD OFFICE Forusbeen 78 - 4033 Stavanger - Norway Tel: (+47) 51 80 00 00 https://www.gofundme.com/4-peaks-in-5-days Internet: www.seabrokers-group.com

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SECURALIFT AS - STAVANGER Telephone ++47 51 800000 CONUNDRUM CORNER E-mail [email protected] SEA SURVEILLANCE AS - BERGEN Last month’s answer :- Telephone ++47 55 136500 HEADINGE-mail [email protected] What is the longest word that you can make moving from QuiatisSEABROKERS imaximilitem EIENDOM num AS - STAVANGERenis porum ne dolles Telephone ++47 51 800000 square to touching square? quiE-mail rerum id min [email protected] dolo quo conet il id The correct answer was :- RETROSPECTIVELY quisto que voluptatus eatis re ventur? Hilibust quisSEABROKERS as mincias SERVICES peribustis AS -qui STAVANGER dolorit officatus This month, our poser is as follows: autTelephone preiumquas qui ++47 iuscimu 51 800000 sapelest, esto odio. E-mail [email protected] Itatecum cus acerum ipidunture corporpores et int A man walks west for 4 miles. Then south for 3 faccumSEABROKERS remperi FUNDAMENTERING onsequi AS - STAVANGER miles. Then east for 2 miles. Then north for 1 mile. Telephone ++47 51 800000 Then east for 2 miles. In what direction and for E-mail [email protected] how far should he walk to return to his starting SEABROKERS HAVNEKRANER AS - STAVANGER point? Telephone ++47 51 800000 E-mail [email protected] Answers back to [email protected].

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