North Sea Spot Market Sells out of Tonnage Contents

AUGUST 2017

AUGUST 2017 NORTH SEA SPOT MARKET SELLS OUT OF TONNAGE 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 - NORTH SEA clients. The Seabrokers Group has an experienced workforce within Shipbroking, Real Estate, 7 MONTHLY OSV SPOT RATES - Facilities Management, Construction, Cranes & Transportation, Sea Surveillance and Safe Lifting NORTH SEA Operations. Our head office is located in Stavanger, but we also have offices in Aberdeen, Bergen and 8 SEABAY MOBILE APP FEATURE Rio de Janeiro. The Seabrokers Group is different – and we are 9 FEATURE VESSEL proud of this fact. Our information, experience and knowledge provide us with the ability to perform 10 OSV NEWBUILDINGS, CONVERSIONS, in our diverse business areas. SALE & PURCHASE Seabrokers Chartering AS and Seabrokers Ltd are certified by DNV GL in line with Management System Standard ISO 9001:2008. 11 SUBSEA 14 RENEWABLES 15 RIGS 16 CONUNDRUM CORNER & DUTY PHONES

SHIPBROKING REAL ESTATE

SECURALIFT FACILITY MANAGEMENT Production and Administration: Seabrokers Ltd, Aberdeen SEA SURVEILLANCE FOUNDATIONS For your free copy of Seabreeze, email: YACHTING CRANES & TRANSPORTATION [email protected]

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MIXED BAG FOR TOTAL ACQUIRING MAERSK OIL

NORTH SEA OWNERS Total is to acquire 100% of the USD 400 million per year. equity of Maersk Oil & Gas in a The North Sea spot market proved USD 7.45 billion transaction, after Patrick Pouyanné, Total’s Chair- to be a tale of two halves for AHTS the Boards of both Total and A.P. man and CEO, noted that “the owners in August. The positive Møller - Maersk approved the combination of Maersk Oil’s North trading conditions from July rolled proposed share and debt deal. Western Europe businesses with over into August, with AHTS our existing portfolio will position availability in strictly short supply Under the agreed terms, A.P. Total as the second {largest} at the start of the month. This Møller - Maersk will receive USD operator in the North Sea with allowed Island Offshore, K Line 4.95 billion in Total shares, and strong production profiles in the Offshore, Maersk Supply Service, Total will also assume USD 2.5 UK, Norway and Denmark, thus Siem Offshore and Viking Supply billion of Maersk Oil’s outstanding increasing exposure to conven- Ships to pick up lucrative short- debt. Total will issue 97.5 million tional assets in OECD countries. term deals, all with rates north shares to A.P. Møller - Maersk, Internationally, in the US Gulf of GBP 50,000 (NOK 506,000). representing 3.75% of the new of Mexico, Algeria, East Africa, However, these conditions did enlarged share capital of Total. Kazakhstan and Angola there is not last long, with rates dropping The transaction is expected to an excellent fit between Total and back into the GBP 5,000-15,000 close in the first quarter of 2018. Maersk Oil’s businesses allowing (NOK 51,000-52,000) range for for value accretion through com- the majority of fixtures from Total has indicated that the combi- mercial, operating and financial mid-August onwards. There are nation will provide an exceptional synergies.” a host of drilling rigs potentially overlap of upstream businesses coming off contract over the next globally which will enhance Total has indicated that this few months; this may lead to an Total’s competitiveness and value transaction will provide it with a uptick in AHTS requirements to in many core areas, in particular new anchor point in Denmark to mobilise rigs into layup, however through some high quality grow- host its North Sea Business Unit thereafter conditions may ing assets and through the delivery for the supervision of operations deteriorate for owners as activity of operational, commercial and in Denmark, Norway and the levels wind down for the winter. financial synergies of more than Netherlands.

For the PSV market, August proved to be the most lucrative SEABAY APP - ANDROID READY month of the year for owners, Seabrokers is proud to announce the Google Play Store. Simply with several fixtures coming in at that our internal IT department search for “seabay” or follow the GBP 15,000 or more. The average has been busy updating and link provided: https://play.google. monthly fixture rates were adding in new features to Seabay. com/store/apps/details?id=com. actually higher than they have seabay.android. been for any individual month Over the past couple of months, since the third quarter of 2014. For we have been working hard to To find out more about the release the medium PSV category (less extend our mobile app coverage of the Android version of the than 900m²) the average fixture by developing an Android Seabay app, including details rate for August was a whopping version of Seabay. We have now about some innovative updates, 189% higher than it was for officially released this Android please turn to page 8 for more August last year (see p.6)! version, which is available from information.

SEABREEZE 3 OSV MARKET ROUND-UP

NCA FIXTURES FOR SIMON MØKSTER AND SOLSTADFARSTAD

Simon Møkster Shipping and SolstadFarstad ASA have both been awarded new contracts with the Norwegian Coastal Administration (NCA) for the charter of AHTS vessels as part of Norway’s Government Preparedness scheme.

Simon Møkster vessel Strilborg (pictured c/o G Vinnes), which has been working for the NCA since January 2016, has been awarded a one-year contract extension from January 2018. This charter comes with a further one-year option. with a one-year option. She will northern Europe having last Meanwhile, SolstadFarstad’s Far be stationed in the northern part worked in the region in 2012. Sabre will be added to the NCA of Norway. The 2008-built vessel has been fleet from January 1st, 2018, also based in Australia/Southeast for a firm period of one year The Far Sabre is returning to Asia for the last five years. STATOIL ADDS SECOND SENTINEL ERRV TO UK FLEET Sentinel Marine has secured two Mariner field; she will be joining new contracts, bringing its new the Mariner Sentinel in Statoil’s contract generation north of GBP ERRV fleet. Meanwhile, Sentinel 26.4 million (USD 34.1 million) this has also secured a contract with year. Statoil has added a second INEOS for the Forties Sentinel and Sentinel ERRV to its UK fleet, Sentinel Ranger to support drilling having awarded a one-year plus operations in the Breagh gas field options contract for the Portland and production facilities in the Sentinel to provide cover at the southern North Sea. K LINE FIRST WITH SHORE POWER NOTATION K Line Offshore has become port, utilising a shore-based elec- the first owner to obtain DNV trical supply for her needs while GL’s Shore Power class notation berthed - so called “cold ironing.” for AHTS vessel KL Sandefjord K Line has decided to apply for the (pictured c/o O Halland). This same notation for the Sandefjord’s means the Sandefjord can have her sister vessel, the KL Saltfjord. Both engines shut down while she is in units are based in the North Sea.

4 SEABREEZE OSV MARKET ROUND-UP

CHIEFTAIN AND FLIPPER FOR MAERSK OIL UK

The last few weeks have seen a relatively quiet period for term PSV chartering in the North Sea, at least in comparison to the previous few months. However, there have been a few short- medium term fixtures awarded recently.

Maersk Oil UK has remained active, awarding 28-day firm contracts to GulfMark and SolstadFarstad for the Highland Chieftain (pictured) and the Normand Flipper to provide support for drilling activities with jackup Maersk Gallant. Crusader to support their one- with the Deepsea Bergen well drilling programme with offshore Norway; and EOG Elsewhere, Repsol Sinopec UK the Stena Spey; Well Expertise Resources has chartered Solstad- awarded contracts to Simon chartered the Siem Symphony to Farstad PSV Sea Titus to support Møkster and Havila for PSVs support Wellesley Petroleum’s its UK operations for a firm Brage Trader and Havila one-well firm drilling campaign period of 28 days. MULTI-YEAR BRAZIL FIXTURE FOR BOS TURMALINA SolstadFarstad has picked up a commence a new term contract in new multi-year contract for AHTS September with Queiroz Galvão vessel BOS Turmalina in Brazil. Exploração e Produção. This The Brazilian-built vessel has will be for a firm period of two worked exclusively in her home years, with two years’ options, nation since her delivery in 2006. to support the installation and Having spent the last few months production of the BS-4-Atlanta trading the spot market, she will early production system. USD 100 MILLION CONTRACTS FOR TOPAZ Topaz Energy and Marine has Sea offshore Turkmenistan secured new contracts with for a period of five years. The Dragon Oil with a total value of contracts involve the charter some USD 100 million. of five AHTS vessels, including the Topaz Glory (pictured), and Topaz will provide six offshore one ERRV. This award increases vessels to operate at the Topaz’s total revenue backlog Cheleken Area in the Caspian north of USD 1.5 billion.

SEABREEZE 5 OSV RATES & UTILISATION

AUGUST 2017 - DAILY NORTH SEA OSV AVAILABILITY PSV 2017 PSV 2016 AHTS 2017 AHTS 2016 26 24 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 AUGUST 2017 TYPE AUG 2017 JUL 2017 JUN 2017 MAY 2017 APR 2017 MAR 2017 MED PSV 78% 83% 69% 67% 67% 69% LARGE PSV 90% 86% 77% 75% 86% 87% MED AHTS 57% 63% 49% 50% 54% 65% LARGE AHTS 68% 71% 61% 47% 52% 78%

NORTH SEA AVERAGE RATES AUGUST 2017 AVERAGE RATE AVERAGE RATE CATEGORY % CHANGE MINIMUM MAXIMUM AUG 2017 AUG 2016 SUPPLY DUTIES PSVS < 900M2 £13,107 £4,533 +189.15% £7,000 £22,000

SUPPLY DUTIES PSVS > 900M2 £12,431 £5,543 +124.26% £6,500 £18,000 AHTS DUTIES AHTS < 22,000 BHP £26,819 £14,538 +84.48% £6,000 £65,000 AHTS DUTIES AHTS > 22,000 BHP £24,182 £18,899 +27.95% £7,000 £74,552 SPOT MARKET ARRIVALS & DEPARTURES AUGUST 2017 ARRIVALS - NORTH SEA SPOT DEPARTURES - NORTH SEA SPOT BOURBON TOPAZ EX WEST AFRICA A.H. VARAZZE BLACK SEA ATLANTIC KESTREL BLACK SEA BEN NEVIS BLACK SEA FAR SCOTSMAN SOUTH AMERICA * 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 2016 £5,975 £4,286 £4,183 £3,992 £7,349 £10,051 £7,203 £4,533 £3,746 £5,695 £4,870 £4,871

2017 £5,958 £8,428 £7,794 £6,332 £5,675 £5,452 £10,271 £13,107 £- £- £- £-

£15,000

PSVs < 900M²900M2 £12,500 PSVs > 900m²

£10,000

£7,500

£5,000

£2,500

£- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2016 £4,867 £4,659 £4,104 £4,308 £6,625 £11,365 £7,355 £5,543 £4,548 £3,920 £5,520 £5,137 2017 £5,764 £6,777 £8,126 £6,667 £5,642 £5,684 £9,709 £12,431 £- £- £- £-

£40,000 £50,000 AHTS < 22,000 bhp £35,000 PSVs > 900M²900M2 £30,000£40,000 £25,000 £30,000 £20,000 £15,000£20,000 £10,000 £10,000 £5,000 £- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2016 £20,118 £30,615 £19,273 £15,374 £10,094 £21,150 £32,759 £14,538 £14,250 £8,040 £7,460 £8,246 2017 £13,890 £7,833 £33,270 £14,868 £6,875 £8,036 £38,293 £26,819 £- £- £- £-

£50,000 AHTS > 22,000 Rig Moves bhp £40,000 £30,000 £20,000

£10,000

£- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2016 £32,535 £26,746 £15,674 £24,536 £13,604 £23,088 £44,859 £18,899 £18,033 £9,746 £9,232 £13,913 2017 £16,229 £15,789 £33,182 £19,396 £7,788 £14,237 £29,457 £24,182 £- £- £- £-

£25,000£30,000 Average Day RatesAverage To MonthDay Rates (August To Month 2017) (June 2013) £25,000 £20,000 £20,000 £15,000 £15,000 £10,000 £10,000

£5,000

£- PSVs < 900m² PSVs > 900m² AHTS < 22,000 bhp AHTS > 22,000 bhp 2016 £5,998£5,882 £5,397£5,610 £19,734£22,012 £22,688£24,931 2017 £6,627£7,679 £6,404£7,305 £16,000£22,078 £17,939£20,830

SEABREEZE 7 SEABAY MOBILE APP

SEABAY APP NOW AVAILABLE FOR ANDROID

Seabrokers is proud to announce Seabay for Android behaves in Seabrokers have released some that our internal IT department the same manner as the iPhone general updates for the app, both has been busy updating and version although there are some improving its speed and conveni- adding in new features to our interface differences that are ence, which should show everyone Seabay App. inherited with the Android user an improved performance on their interface. Notifications are the devices. We have improved our Over the past couple of months, same as the iPhone version, and branding to ensure that Seabay is we have been working hard to push notifications are issued to a recognised Seabrokers product, extend our mobile app reach by our Android users as well as any and the app now allows you to developing the Android version connected Android device they email, phone and get directions of Seabay. We have now officially may have (i.e. a smart watch). to any Seabrokers office location released the Android version by tapping the map icon which which is available from the will launch either Google Maps Google Play Store. Simply search (Android) or Apple Maps (iPhone) for “seabay” or follow the link depending on your platform. provided: https://play.google.com/ store/apps/details?id=com.seabay. Additionally, we have made android. The Seabay spotlist app is changes to the vessel data. When already available to download for you tap on a vessel from any of iPhones (iOS 10.3). the spotlists, you will now see a lot more data than we initially To ensure an easy expansion across The same rules apply to hardware displayed, which gives you a more mobile platforms, we have devel- running iOS software, such as informed view of the vessel you oped the app using a shared code the Apple watch (if connected to are interested in. Those vessels base, meaning that both our iOS your phone). This means you will with forward commitments are and Android clients will receive always be kept up-to-date with now designated by a blue arrow the same updates at the same time. what is going on in the market. next to their status.

8 SEABREEZE FEATURE VESSEL

HORIZON STAR

The MT 6015-designed Horizon Star, recently bought by Horizon Maritime Offshore, has arrived in Newfoundland, Canada.

Horizon Maritime Offshore has The Horizon Star was originally already secured work for the to be named IES Energy, but vessel to operate in the waters after IES Pioneer cancelled the offshore eastern Canada. order, the yard has been seeking a new buyer since her delivery. HORIZON STAR SPECS: A naming ceremony was held for the Horizon Star at the Kleven The vessel has a length of 102 Build Yard: Kleven Verft Verft shipyard in Norway in metres, and is equipped with a Design: MT-6015 early August. The vessel was 150-tonne active heave compen- Length: 102m originally ordered by IES Pio- sated crane, a CAP 437 compli- Flag: Canadian neer back in 2014 with delivery ant helideck, accommodation for Max Lift: 150 tonnes taking place in late 2015. 60 persons, and a working deck Accommodation: 60 persons area of more than 1,000m². Helideck: CAP 437 compliant

SEABREEZE 9 OSV NEWBUILDINGS, S&P

SWIRE WELCOMES GREYLAG The Detroit Brasil Shipyard in requirements for Petrobras’ PSV Itajaí has delivered newbuild 4500 criteria. She was ordered PSV Starnav Circinus to Starnav by Starnav following the sixth Serviços Marítimos Ltda. The round of Petrobras’ Prorefam 90m vessel (pictured c/o J. fleet renewal process, and has Hernandez) was built to the been chartered by the operator GPA 688 SC design, meeting the for a firm period of eight years. IEVOLI AMBER ENTERS SERVICE Newbuild PSV Ievoli Amber the Ievoli Cobalt, although the has been mobilised to Italy by Cobalt has since had an A-Frame Marnavi following her recent and AHC Subsea crane installed delivery from the Selah Shipyard since her delivery last year. The in Turkey. The Ievoli Amber Ievoli Amber has a length of was built to the MMC 879L 83.8m, a deck area of 722m² and CD design, the same design as a deadweight of 4,000t. PACIFIC GREBE HEADING FOR AFRICA Newbuild PSV Pacific Grebe sister vessels being built for was recently delivered to Swire Swire to the IMT 984 design. Of Pacific Offshore by Japan Marine the earlier deliveries, the Pacific United Corporation. She has Gannet, Goldfinch and Gosling now plotted a course for Cape are based in West Africa, while Town in South Africa. The the Pacific Grackle and Greylag Pacific Grebe is the sixth of ten are working in Australia. NEW RELIEF VESSEL FOR ATLANTIC OFFSHORE Atlantic Offshore has added a new China. She commenced operations relief vessel to their North Sea with Atlantic Offshore in August ERRV fleet. The Ocean Clever, following a visit to the Orkov formerly the AHTS Shergar, was Shipyard in Denmark, where she acquired from Global Offshore was converted to a Class A ERRV Services. She was built in 2009 by with dual FRC and dual DC capac- the Jiangsu Zhenjiang Shipyard in ity, with a bollard pull of 65 tons.

RECENT DELIVERIES OF NEWBUILD OSVS

NAME TYPE/DESIGN OWNER/ MANAGER COMMITMENT IEVOLI AMBER MMC 879L CD PSV MARNAVI TBC PACIFIC GREBE IMT 984 PSV SWIRE PACIFIC OFFSHORE AFRICA STARNAV CIRCINUS GPS 688 SC PSV STARNAV SOUTH AMERICA

10 SEABREEZE SUBSEA

SUBSEA MARKET ROUND-UP Merger and acquisition activity After their failed attempt at buying surveys, so this transaction enables has moved into a higher gear Fugro earlier in the year, Boskalis Boskalis to become a specialist recently, with a large uptick in has purchased all the shares of the provider of subsea geotechnical M&As taking place within the UK-based Gardline Group. surveys, with an exposure to the last few weeks. We have already Gardline’s main activities include renewables market and the early mentioned the acquisition of marine geophysical surveys, cyclical oil and gas market. Maersk Oil by Total on page 3, so offshore geotechnical services and here we will look at some of the environmental surveys. Boskalis M&A activity didn’t end there, other deals that have taken place paid GBP 40 million, including however, as Acteon signed a defin- recently. assumed debt, to acquire the itive agreement to purchase Viking company whose principle office Seatech (a provider of temporary Firstly, DeepOcean announced is located in Great Yarmouth, UK, and permanent mooring services) they had acquired Searov Offshore with further activities in the USA. from Actuant Corporation. AS, resulting in an expanded presence in West Africa. Searov, Gardline operates 15 survey-relat- The acquisition of Viking Seatech established in 2008, is an ROV ed vessels, in addition to 25 smaller broadens Acteon’s existing moor- service provider with a focus on vessels, including crew transfer ing business with a local presence West Africa; the company owns vessels and survey catamarans. in both Australia and Indonesia. and operates ten ROVs from The company employs around 750 In line with this, Acteon has also operating bases in Pointe Noire, employees, including a pool of 100 agreed to sell Mirage Machines, a Congo, and Port Gentil, Gabon. surveyors. Gardline was the main manufacturer of portable machine competitor of Fugro in marine tools, to Actuant. NEW COMPANY TARGETS DECOMMISSIONING missioning of subsea wells. Well-Safe is looking to acquire The new-start company, which high quality assets to carry aims to attract GBP 200 million out well abandonment work, It is not just M&A deals that in investment, will offer a spe- including a semisubmersible rig, we have seen taking place in cialist well abandonment service a jackup rig and a lightweight August, with a new decommis- that allows operators to meet the intervention vessel. sioning company created in the challenges and regulatory imper- Five thousand wells, of which North Sea: Well-Safe Solutions. atives around decommissioning, 1,000 are subsea, require to be The new company, which has while significantly reducing decommissioned in the North promised to create 400 jobs, costs. The new venture will Sea. Well P&A activity accounts was established to provide a offer complete P&A capability for around 60% of the overall ground-breaking approach to the from front-end engineering and costs associated with decommis- safe and cost-efficient decom- design to project execution. sioning. BAR PROTECTOR SCRAPPED In July, Saipem scrapped the 112 metres, a 100-tonne crane, a 1981-built diving support vessel 12-man dive system and accom- Bar Protector. modation for 108 persons, had The unit, which had a length of been idle since April 2016.

SEABREEZE 11 SUBSEA

ULTRA DEEP BUYS A PICASSO support and construction vessel) equipped with an 18-man twin Hull Number 121m which was bell saturation diving system, constructed at the CMHI (China rated to 300 metres, and a Merchants Heavy Industry) 140-tonne heave compensated Shipyard in China. The vessel crane. The vessel has an accom- was originally built at the Kreuz modation capacity for up to 120 Ultra Deep Solutions has acquired Endeavour for Kruez Subsea. persons, and she has 1,300m² of the MT6024 DSCV (diving The DP2-enabled DSCV comes clear back deck space. KHANKENDI COMPLETES SEA TRIALS Azerbaijan’s Baku Shipyard Completion of the six-week sea has completed sea trials for trials brings the shipyard a step the subsea construction vessel closer to the imminent delivery Khankendi, which is being built of the vessel to BP. The vessel for the BP-operated Shah Deniz is now back at the shipyard Stage 2 Project in the Caspian for finishing touches, ahead of Sea. her naming ceremony which is system, two work-class ROVs, The vessel has been specifically scheduled for early September. a strengthened moon pool, two designed and built to install sub- The vessel is equipped with a engine rooms with six 4.4MW sea structures on the giant Shah 900-metric tonne main crane plus two 3.2MW generators. Deniz Stage 2 gas development for 600-metre subsea operations, She has a total weight of 17,600 project for the next ten years. with an 18-man two-bell diving tonnes. FORLAND INSPECTOR SECURES TERM CONTRACT Forland Subsea AS has entered firm with three months’ options. into a time charter with an The vessel, which has a length of as-yet unnamed client for the 110m, a 150t crane and accom- Havyard 857-designed Forland modation for 106 persons, will Inspector (ex-Lewek Inspector). be used for subsea operations The charter, which has already including ROV support during commenced, is for nine months the charter. SHELF SUBSEA CHARTERS NUSANTARA Shelf Subsea has chartered Asia Pacific region. fitted onto the vessel for the MEO’s (Miclyn Express Off- The 2010-built, 80-metre long charter with Shelf Subsea. shore) DP2 diving support vessel vessel is equipped with a built- Mermaid Nusantara for a period in 15-man saturation diving of two years firm with additional system, a three-man diving bell options available. and a heave compensated subsea The vessel will be deployed crane, and she can accommodate by Shelf Subsea for integrated up to 120 persons. diving and ROV services in the Two work class ROVs will be

12 SEABREEZE SUBSEA

FUGRO TERMINATES SALTIRE CHARTER Forland Subsea, which bareboat Fugro Subsea Services are guar- charters the Fugro Saltire from E anteed under a parent company Forland AS, has received a notice of guarantee issued by Fugro N.V. termination from time charterers The IMR vessel, which has a 150t Fugro Subsea Services, effective AHC crane and accommodation from October 1, 2017. for 105 persons, has been on Fugro Subsea Services has ter- Forland Subsea will pursue any charter with Fugro since delivery minated for convenience its time potential claims for losses arising in 2008 and has been utilised for charter for the IMR vessel Fugro out of the termination from Fugro trenching, remote intervention, Saltire. Subsea Services. The obligations of construction and survey duties. WHITE ROSE FOR TECHNIPFMC TechnipFMC has been awarded an flowlines, and control umbilicals, EPCI contract from Husky Energy which will connect the West for the West White Rose Project in White Rose fixed platform to the Eastern Canada. existing SeaRose FPSO vessel. The contract covers the supply and Husky sanctioned the West White installation of subsea equipment, Rose Project in May and first oil is including tie-in manifolds, flexible expected in 2022. PROSAFE LAYS UP SAFE CONCORDIA after it completed its contract with Regalia and Safe Bristolia are laid Petrobras. up in Norway, while Safe Astoria The DP2 semi, which has is laid up in Indonesia. In addition, accommodation for 461 persons, the company has so far scrapped has worked for the operator since five flotels, the latest one being 2011 and completed its assignment Safe Regency, which was in mid- Prosafe has now laid up the in late July. Prosafe has four other June sold for recycling to Aliaga 2005-built flotel Safe Concordia units in lay-up. Safe Zephyrus, Turkey for USD 1.25 million. DOF SECURES MULTIPLE CONTRACTS Fugro has exercised the exten- the charter of the IMR vessel frame agreements, securing sion it has on DOF Subsea’s IMR Skandi Salvador by six months utilisation for the DSV Skandi support vessel Skandi Carla and from August 2017, the DSV Singapore and IMR vessel will now utilise the vessel until Skandi Achiever has secured Skandi Hercules in the third and the end of October 2019. The several contracts in the Gulf fourth quarter of 2017. vessel has been on charter to of Mexico and Trinidad and Meanwhile, OCV Skandi Nep- Fugro since delivery in 2011. Tobago, keeping it busy until the tune has secured an IMR con- There has been additional end of October. tract to commence in during the contract awards for DOF in the In the Asia Pacific region, DOF third quarter with an unnamed subsea IMR project segment, has been awarded several con- operator in the North Sea. including Petrobras extending tracts and work under existing

SEABREEZE 13 RENEWABLES

ESVAGT TO COVER DEBU MHI Vestas Offshore Wind has be used to service the 252MW Safe Transfer Boats STB 7 and returned to Esvagt to charter a Deutsche Bucht (DeBu) offshore STB 12. MHI Vestas Offshore Havyard 831-designed newbuild wind farm in the German North Wind received a firm and uncon- Service Operation Vessel (SOV) Sea. The DeBu SOV will be ditional order for the Deutsche for a period of fifteen years. The equipped with a walk-to-work Bucht offshore wind farm in Zamakona shipyard in Bilbao, gangway in a bespoke tower August. The company will supply Spain, will build the new SOV for with a crane placed on top of the 31 V164-8.0 MW wind turbines, Esvagt, which is due to be de- tower. Additionally, the vessel as well as a long-term full-scope livered in August 2019. She will will be equipped with Esvagt’s service package. SKANDI CONSTRUCTOR HEADING TO GALLOPER on the Galloper Offshore Wind utilised until the end of the year. Farm in the North Sea. The Galloper wind farm is an The Skandi Constructor will under-construction 336MW be working under Siemens’ offshore project which will be contract for the design, fully operational in 2018. The DOF Subsea’s SX121-designed manufacture, installation and Skandi Constructor has a length well intervention vessel Skandi commissioning of 56 turbines for of 120 metres, a max lift of 150 Constructor has been awarded a the Galloper offshore wind farm. tonnes and accommodation for contract with Siemens to work The award will see the vessel 100 persons. JARSTEIN INSTALLS W2W SYSTEM FOR MERKUR Tideway B.V. has chartered Sol- mann E1000 motion compensated trenching vessel Living Stone to stadFarstad’s DP2 OCV Normand gangway for the campaign on the carry out the installation works. Jarstein for a period of three Merkur wind farm. The vessel will Merkur is expected to be fully months from September. Tideway assist with the pull-in prepara- commissioned in 2019. has options to extend the charter tions, pull-in operations and cable period by a further four months. terminations for 73 inter-array The 117-metre long vessel cables at the wind farm. currently has an accommodation Tideway is in charge of the in- capacity for 86 persons but she has stallation of the inter-array cables a maximum PoB limit of 110. She on the wind farm and will deploy was recently fitted with an Ampel- its new subsea cable installation/ NEXANS ORDERS NEW CABLE LAYING VESSEL Nexans has announced the which is designed for worldwide product range, and will have a commencement of construction installation of large volumes of 10,000-tonne capacity turntable. of a new DP3 cable-laying vessel HVDC and HVAC cable systems, The new cable-laying vessel is for submarine high voltage cable even in the most severe weather expected to be delivered in order systems installation. The Uljanik conditions. to start operations by the third Group, a Croatia-based shipyard, The vessel covers the com- quarter of 2020. will construct the newbuild, plete Nexans submarine

14 SEABREEZE RIGS

INACTIVE RIGS NORTHWEST EUROPE OIL PRICE VS RIG UTILISATION NAME TYPE STATUS 100% $60 BAUG (EX GSF GALAXY I) JU COLD STACK BLACKFORD DOLPHIN SS WARM STACK 90% $55 $54.89 $55.49 BORGLAND DOLPHIN SS WARM STACK $54.07 78.4% $53.06 77.6% 76.8% $51.97 $51.98 BRAGE (EX GSF GALAXY II) JU COLD STACK 80% 76.0% 75.6% $50.87 $50 74.8% 74.4% 74.3% 74.2% $49.73 73.2% 73.5% 73.6% 73.6% BREDFORD DOLPHIN SS COLD STACK $49.11 BYFORD DOLPHIN SS WARM STACK 70% $46.14 $46.19 $46.44 $46.89 $45 COSLINNOVATOR SS WARM STACK 60% $40 COSLPIONEER SS WARM STACK 60.5% 59.4% DEEPSEA METRO II DS COLD STACK 57.4% 57.7% 57.9% 55.0% 54.5% 50% 53.3% 53.0% $35 EIR (EX GSF GALAXY III) JU COLD STACK 51.6% 52.3% 51.5% 52.7% ENERGY ENDEAVOUR JU COLD STACK 40% 35.1% 34.8% 34.8% 34.8% 34.7% $30 ENERGY ENHANCER JU COLD STACK 33.1% 33.0% 33.5% 34.3% 34.2% 32.4% 31.4% 30.3% ENSCO 70 JU COLD STACK 30% $25 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 ENSCO 71 JU WARM STACK Average Brent Crude US$ / Bbl Northwest Europe Rig Utilisation FONN (EX GSF MONARCH) JU COLD STACK South America Rig Utilisation US Gulf Rig Utilisation GSP SATURN JU COLD STACK MAERSK GIANT JU WARM STACK ENSCO DRILLSHIP FOR LEVIATHAN MAERSK INSPIRER JU WARM STACK Noble Energy has awarded a production wells. Operations MAERSK REACHER JU WARM STACK PARAGON B391 JU WARM STACK contract to Ensco to use drillship are scheduled to commence PARAGON C461 JU WARM STACK ENSCO DS-7 for development in March 2018 and run until PARAGON C462 JU WARM STACK work at the Leviathan field in December 2018, although there PARAGON C463 JU WARM STACK the Mediterranean Sea offshore are four further one-well options PARAGON C20051 JU WARM STACK Israel. The rig will be used to which could keep the rig busy PARAGON C20052 JU COLD STACK PARAGON HZ1 JU WARM STACK drill two wells and complete four into 2020. POLAR PIONEER SS COLD STACK RAN JU WARM STACK THREE-YEAR GUYANA CONTRACT FOR NOBLE ROWAN GORILLA V JU WARM STACK With increasing market offshore Guyana. The rig is ROWAN GORILLA VI JU WARM STACK ROWAN STAVANGER JU WARM STACK attention being drawn to the scheduled to start its charter in SCARABEO 5 SS WARM STACK northern coast of South America, the first half of 2018. ExxonMobil SEDCO 711 SS COLD STACK ExxonMobil has just awarded a recently made a final investment SEDCO 714 SS COLD STACK contract to Noble Corporation decision to proceed with the first SERTAO DS COLD STACK for a three-year charter with phase of development for the SONGA DEE SS COLD STACK SONGA DELTA SS COLD STACK drillship Noble Bob Douglas Liza field offshore Guyana. SONGA TRYM SS COLD STACK STENA DON SS WARM STACK RIG UTILISATION AND DAY RATES SWIFT 10 JU WARM STACK WEST ALPHA SS COLD STACK AUG AUG AUG AUG AUG UTILISATION 2017 2016 2015 2014 2013 WEST EPSILON JU COLD STACK NORTHWEST EUROPE 59.4% 60.5% 81.9% 95.8% 97.7% WEST HERCULES SS WARM STACK WEST NAVIGATOR DS COLD STACK SOUTH AMERICA 73.6% 74.8% 85.7% 94.2% 95.7% WEST VENTURE SS COLD STACK US GULF 34.7% 35.1% 47.5% 66.9% 71.3% WILHUNTER SS COLD STACK

RECENT DAY RATE BENCHMARKS LOW (USD) HIGH (USD) Note: The Borgsten Dolphin, Ocean Nomad, UK HARSH HIGH SPEC JACKUPS 62,000 80,000 Ocean Princess, Ocean Vanguard, Transocean NORWAY HARSH HIGH-SPEC JACKUPS 130,000 130,000 Prospect and Transocean Searcher have been UK HARSH STANDARD SEMISUBS 100,000 115,000 removed from the list above following the NORWAY HARSH HIGH-SPEC SEMISUBS 140,000 170,000 recent decisions from their respective owners GLOBAL ULTRA-DEEPWATER SEMISUBS 150,000 222,295 to scrap these units. GLOBAL ULTRA-DEEPWATER DRILLSHIPS 101,085 165,000 Source: IHS-Petrodata

SEABREEZE 15 CONUNDRUM CORNER, DUTY PHONES

TRANSOCEAN TO ACQUIRE SONGA THE SEABREEZE ARCHIVE

Transocean has entered into an agreement to For the current or archive copies of Seabreeze go acquire 100% of the issued and outstanding shares to: http://www.seabrokers.co.uk/ - see under of Songa Offshore. Based on a price of NOK 47.50 Shipbroking / Market Reports. If you wish to per share, the transaction implies an equity value Subscribe or Unsubscribe please contact: of Songa Offshore of NOK 9.1 billion (USD 1.2 [email protected] billion) on a fully diluted basis, with an enterprise value of NOK 26.4 billion (USD 3.4 billion). Via this transaction, Transocean will add Songa‘s four Cat–D harsh environment semisubmersibles, SEABROKERS GROUP CONTACTS which are all working on long-term contracts with Statoil. Songa‘s fleet also includes three more SEABROKERS HEAD OFFICE Forusbeen 78 - 4033 Stavanger - Norway semisubmersibles that are currently stacked in Tel: (+47) 51 80 00 00 Norway. Internet: www.seabrokers-group.com

SEABROKERS CHARTERING AS - STAVANGER Duty Telephone ++47 51 815400 (24 Hrs) CONUNDRUM CORNER E-mail [email protected]

The answer to last month’s teaser :- SEABROKERS LTD - ABERDEEN Duty Telephone ++44 1224 747744 (24 Hrs) Duty Mobile ++44 7802 304129 At a cooked breakfast, 42 people have Danish E-Mail [email protected] bacon, 65 have fried eggs and 22 have baked beans. How many people have espresso coffee? SEABROKERS BRAZIL LTDA - RIO DE JANEIRO Duty Telephone ++55 21 3505 4200 (24 Hrs) E-mail [email protected] The correct answer was :- 53 (the first letter of each word represents a number in relation to its SECURALIFT AS - STAVANGER place in the alphabet... e for espresso is the 5th Telephone ++47 51 800000 letter, and c for coffee is the 3rd letter). E-mail [email protected] SEA SURVEILLANCE AS - BERGEN This month, our poser is as follows: Telephone ++47 55 136500 HEADINGE-mail [email protected] Complete the square below with the letters of ENJOY so that no row, column or diagonal line QuiatisSEABROKERS imaximilitem EIENDOM num AS - STAVANGERenis porum ne dolles Telephone ++47 51 800000 of any length contains the same letter more than quiE-mail rerum id min [email protected] dolo quo conet il id once. What letter must replace the question mark? quisto que voluptatus eatis re ventur? Hilibust quisSEABROKERS as mincias SERVICES peribustis AS -qui STAVANGER dolorit officatus autTelephone preiumquas qui ++47 iuscimu 51 800000 sapelest, esto odio. E-mail [email protected] Itatecum cus acerum ipidunture corporpores et int faccumSEABROKERS remperi FUNDAMENTERING onsequi AS - STAVANGER Telephone ++47 51 800000 E-mail [email protected]

SEABROKERS KRAN & TRANSPORT AS - STAVANGER Telephone ++47 51 800000 E-mail [email protected] Answers back to [email protected].

16 SEABREEZE