JULY 2015

20 BILLION BARRELS WORTH OF PROJECTS DEFERRED IN 2015 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 situated in Stavan- ger, but we also have offices in Aberdeen, Bergen, 8 FEATURE VESSEL Rio de Janeiro and Singapore. 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. 12 SUBSEA Seabrokers Chartering AS and Seabrokers Ltd are certified by DNV GL in line with Management System Standard ISO 9001; 2008. 15 RIGS 16 CONUNDRUM CORNER & DUTY PHONES

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© Seabrokers Group 2015 www.seabrokers-group.com OSV MARKET ROUND-UP

OVERSUPPLY PERSISTS USD 200 BILLION IN PROJECT DEFERRALS

IN NORTH SEA As many as 45 major oil & gas costs, have proved the most projects have had their FIDs vulnerable. More than 50% of the The North Sea spot PSV market (Final Investment Decisions) deferrals identified are for deep tightened significantly in mid-July, deferred this year as a result of water projects, while nearly 30% although it proved to be a brief the dramatic fall in the price of are located in the Canadian oil period of limited vessel availability. oil. sands. Some owners managed to push their rates up into the GBP 6,000- An analysis by Wood Mackenzie While the scale of these delays 8,000 range, however fixing levels estimates that the development is concerning, it highlights the dropped back into the GBP 3,000- of 20 billion boe of reserves has inherently cyclical nature of the 5,000 bracket a few days later. been pushed back from a diverse industry. The majority of these range of onshore, shallow water projects are now targeted for This may be an indication that and deep water projects. This start-up between 2019 and 2023; owners’ efforts to limit supply has created a USD 200 billion if the focus remains on capital by laying up vessels is starting to hole in the oil & gas industry’s expenditure reductions, this will have a positive effect. However, investment pipeline. only serve to decrease production the speed at which rates retreated rates in years to come, thereby back south again is further Wood Mackenzie indicates that swinging the supply/demand indication of the lack of confidence the more technically challenging balance back in the favour of that currently pervades the projects, with significant upfront producers on a longer-term basis. market. Unfortunately for owners, the market remains oversupplied, and conditions are likely to stay NEW OWNERS FOR ESVAGT in charterers’ favour for the foreseeable future. The Maersk Group and ESE-Hold- ESE-Holding A/S. The Maersk ing A/S have entered into an Group acquired 50% of the The spot AHTS market remained agreement to sell their 100% stake company in 1991, before upping its fairly flat in July. While there were in ESVAGT to 3i Infrastructure stake to 75% in 1998. ESVAGT is sporadic fluctuations in rates over plc and AMP Capital, two inter- headquartered in Esbjerg, Den- the course of the month, we have national infrastructure investors. mark, and is a leading provider of not encountered the same level of The sale amounts to a value of offshore safety and support at sea, ‘summer spikes’ that have been DKK 4.1 billion (USD 610 million). primarily in and around the North experienced in previous years. Sea and the Barents Sea. This is understandable when you The Maersk Group highlighted consider the fact that there are that ESVAGT had “more than ESVAGT currently has a fleet of now as many as 19 drilling rigs out doubled its turnover” since 2009 43 vessels (with one Wind Service of contract in Northwest Europe and is now one of the industry’s Operation Vessel scheduled for (see p.15), limiting the source most profitable companies. delivery in 2016, and one Crew of AHTS demand. Recent spot However, Maersk evaluated that Change Vessel scheduled for de- rates have rarely strayed outside ESVAGT did not form part of livery in 2017). In 2014, ESVAGT the GBP 8,000-15,000 range for its core business which led to its returned a profit of DKK 252.3 medium AHTS vessels, and GBP decision to sell the company. million (USD 37.1 million) from 10,000-25,000 level for large a turnover of DKK 943.2 million vessels. ESVAGT was founded in 1981 by (USD 138.8 million).

SEABREEZE 3 OSV MARKET ROUND-UP

FLURRY OF FIXTURES FOR FARSTAD

Farstad has been awarded a number of new long-term fixtures recently, successfully picking up work for an AHTS vessel in Brazil, and for two PSVs in the North Sea.

Queiroz Galvão Exploração e Produção S.A. has awarded a two-year contract to AHTS vessel Far Sagaris. She will support Queiroz Galvão‘s drilling campaign offshore Brazil, with a scheduled commencement in December 2015 or January 2016. In the North Sea, PSV Far Spica see her return to work in August. This will see Far Sagaris mobilise (pictured c/o O. Halland) was In , ConocoPhillips has to Brazil from Norway, where awarded a 14-month plus 6 x chartered PSV Far Solitaire she is currently laid up. Queiroz 1-month options contract with from September/October 2015 Galvão has options to extend an unnamed charterer in the until December 2016; there are the charter for two more years UK. Far Spica has also been laid options to extend this charter for beyond the initial firm period. up recently, but this fixture will two more years. ENI EXTENDS NJORD VIKING CHARTER Eni Norge has extended its charter extend the charter beyond this with AHTS vessel Njord Viking by date. As part of this agreement, an additional 17 months. The Njord Viking Supply Ships has agreed Viking is currently supporting to reduce the vessel‘s day rate to Eni‘s Goliat project in the Barents secure the longer contract period. Sea, and is now firmly committed Viking will receive around NOK until the end of 2016. Eni retains 150 million (USD 18.8 million) from two further six-month options to Eni over the firm charter period. TERM FIXTURE FOR NEWBUILD VESTLAND PSV Vestland Offshore has secured its 60-day firm charter with Apache first term fixture for newbuild North Sea Ltd; the contract comes PSV Vestland Cygnus. The with 30 further daily options. vessel was delivered from the Fjellstrand Shipyard in Norway Vestland Cygnus was built to the in April 2015, straight into the VS 485 Mk III design; she has a oversupplied North Sea spot deadweight of 5,460t, a deck area market. Vestland has now man- of 1,004m², and accommodation aged to fix the Cygnus away for a for 22 persons.

4 SEABREEZE OSV MARKET ROUND-UP

BRAZIL CONTRACT FOR DOF AHTS VESSEL

Statoil and Norskan Offshore Ltda (a DOF company) have signed a new contract whereby Statoil will charter AHTS vessel Skandi Peregrino for a firm period of two years with two further one-year options.

The Skandi Peregrino, built to the STX AH 08 design, has been working for Statoil offshore Brazil since 2010. The new term will commence in direct con- tinuation of the vessel‘s current contract, meaning she is now Skandi Peregrino is owned by Akastor ASA. She has a length of firmly committed until at least DOF Deepwater, a 50/50 joint 75.0m, a bollard pull of 180t and December 2017. venture between DOF ASA and accommodation for 27 persons. PETRONAS RETAINS ICON VESSELS Icon Offshore Berhad has offshore Malaysia for two firm received two letters of award years from July 2015, with a from an oil major, identified one-year option available on by IHS-Petrodata as Petronas both contracts. The total value Carigali, for the provision of two of the fixtures for Icon Offshore AHTS vessels. Te Icon Sophia is approximately RM 55 million (pictured) and Icon Samudera (USD 14.4 million), inclusive of will be chartered by Petronas the optional extension periods. VALLIANZ VESSELS KEPT BUSY Vallianz Holdings Limited has the operations of Saudi Aramco. signed new contracts, with a These vessels are now firmly total value of up to USD 458 committed until at least June million, to extend the charter 2018, with options to extend the duration for 19 of its OSVs that contracts until June 2020. are currently deployed to an existing customer in the Middle Vallianz has acknowledged that East. It is understood that the the new charter rates for its company in question is Saudi vessels have been revised down- Aramco. wards by around 10%, however this was viewed as acceptable Vallianz currently has 15 AHTS to obtain the security of longer- vessels and four PSVs supporting term commitments.

SEABREEZE 5 OSV RATES & UTILISATION

JULY 2015 - DAILY NORTH SEA OSV AVAILABILITY PSV 2015 PSV 2014 AHTS 2015 AHTS 2014 30 28 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 JULY 2015 TYPE JUL 2015 JUN 2015 MAY 2015 APR 2015 MAR 2015 FEB 2015 MED PSV 71% 66% 49% 50% 53% 72% LARGE PSV 83% 75% 73% 71% 76% 78% MED AHTS 64% 65% 60% 55% 59% 47% LARGE AHTS 66% 72% 77% 63% 73% 71%

NORTH SEA AVERAGE RATES JULY 2015 AVERAGE RATE AVERAGE RATE CATEGORY % CHANGE MINIMUM MAXIMUM JULY 2015 JULY 2014 SUPPLY DUTIES PSVS < 900M2 £3,844 £10,595 -63.72% £2,750 £8,000

SUPPLY DUTIES PSVS > 900M2 £4,610 £11,583 -60.20% £2,372 £8,700 AHTS DUTIES AHTS < 18,000 BHP £10,783 £16,551 -34.85% £5,932 £14,633 AHTS DUTIES AHTS > 18,000 BHP £15,113 £28,759 -47.45% £4,745 £35,594 SPOT MARKET ARRIVALS & DEPARTURES JULY 2015

ARRIVALS - NORTH SEA SPOT DEPARTURES - NORTH SEA SPOT SIEM PEARL EX CANADA FAR SERENADE IRELAND MAERSK LASER CANADA OLYMPIC ORION RUSSIA SIEM TOPAZ IRELAND

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

6 SEABREEZE NORTH SEA AVERAGE SPOT RATES

NORTH SEA AVERAGE SPOT MONTHLY RATES

£40,000£20,000

PSVs < 900m² All Cargo Runs £30,000£15,000

£20,000£10,000

£10,000 £5,000

£- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 £9,813 £15,165 £9,746 £8,597 £11,296 £10,682 £10,595 £11,421 £11,609 £9,784 £8,521 £5,502 2015 £5,091 £5,389 £3,687 £2,818 £2,478 £3,746 £3,844 £- £- £- £- £-

£25,000

PSVs <> 900M²900M2900m² £20,000 £15,000

£10,000

£5,000

£- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 £12,653 £20,559 £12,136 £11,409 £12,840 £9,112 £11,583 £14,432 £13,712 £10,278 £9,949 £5,639 2015 £6,141 £6,429 £4,886 £3,699 £2,921 £4,455 £4,610 £- £- £- £- £-

£80,000£70,000 £60,000£70,000 AHTS < 18,000 bhp PSVs > 900M²900M2 £50,000£60,000 £50,000 £40,000 £40,000 £30,000 £30,000 £20,000 £10,000 £- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 £29,925 £22,073 £10,505 £28,314 £12,190 £14,485 £16,551 £68,689 £53,533 £32,724 £30,803 £6,708 2015 £12,541 £10,497 £15,578 £9,332 £13,101 £19,513 £10,783 £- £- £- £- £-

£80,000 £70,000 AHTSRig > Moves18,000 bhp £60,000 £50,000 £40,000 £30,000 £20,000 £10,000 £- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 £35,129 £26,271 £17,553 £39,977 £21,758 £18,967 £28,759 £73,541 £68,657 £52,724 £28,222 £8,547 2015 £20,863 £16,171 £18,184 £13,617 £19,461 £25,046 £15,113 £- £- £- £- £-

£30,000 Average Day RatesAverage To DayMonth Rates (July To 2015) Month (June 2013) £25,000 £20,000 £15,000 £10,000 £5,000 £- PSVs < 900m² PSVs > 900m² AHTS < 18,000 bhp AHTS > 18,000 bhp 2014 £10,833£10,791 £12,591£12,424 £20,252£19,797 £27,835£27,925 2015 £3,902£3,893 £4,767£4,746 £13,617£13,148 £19,343£18,775

SEABREEZE 7 FEATURE VESSEL

SEVEN RIO

Subsea 7’s newbuild pipelay vessel Seven Rio was recently spotted sailing in Wilton Haven harbour in Schiedam, the Netherlands.

The vessel (pictured c/o J. Bar- Royal IHC launched the Seven tels) is due to be delivered from Rio at its shipyard in Krimpen the Merwede Shipyard later in aan den IJssel, the Netherlands, the year. at the end of November 2014.

Seven Rio has an overall length The Seven Rio is the second of of 146m (479ft), and she is four vessels ordered specifically VESSEL SPECS: equipped with a 550-tonne top for the Brazilian market, fol- tensioner, twin ROVs and DP2 lowing her sister vessel Seven Length: 145.9m station keeping. She has an Waves, which was delivered Breadth: 29.9m accommodation capacity for 120 from the same yard in 2014. Main Crane Lift: 400 tons persons. Helideck: Sikorsky 92 The remaining two vessels in the Accomodation: 120 persons Additionally, the vessel is fitted series, Seven Cruzeiro and Seven ROVs: 2 x Hercules work-class with two under-deck storage Sun, will complete the fleet of : Class 2 carousels, with a capacity for pipelaying vessels. All four have Carousel storage: 2,500t & 2,500-tonnes and 1,500-tonnes been awarded term contracts 1,500t of product respectively. She will with offshore Brazil. Top Tension Capactity: 550t be capable of operating in water Deck Area: 1,200m² depths of up to 3,000m (9,843ft). Deck Strength: 10t/m²

8 SEABREEZE OSV NEWBUILDINGS, S&P

DEVOTION DELIVERED TO NORTH STAR North Star Shipping has accepted as a minimum with one daughter delivery of Grampian Devotion craft, one fast rescue craft and (pictured c/o D. Dodds), the last of state-of-the-art rescue facilities. eight D-Class ERRVs built as part North Star’s investment pro- of a GBP 110 million investment gramme is due to be completed programme. The vessels were built within the next year with the to the IMT-950 design at the Balen- deliveries of two F-Class IMT-958 ciaga Shipyard in Spain. They have multi role ERRVs: Grampian a length of 50m, and are outfitted Fortress and Grampian Freedom. SINOPACIFIC AHTS DELIVERED TO FEMCO The Sinopacific Shipbuilding dation for 36 persons. Group in China recently delivered As well as the two remaining AHTS vessel Beya to FEMCO. SPA 150 vessels, FEMCO also This is the second of four SPA 150 has three newbuild icebreakers vessels Sinopacific is building for on order at Havyard Leirvik FEMCO. Designed by Shanghai in Norway. These vessels will Design Associates, Beya has a be capable of anchor-handling, length of 72.0m, breadth of 17.2m, towing and emergency response bollard pull of 150t and accommo- operations. JIANGSU ZHENJIANG DELIVERS ANOTHER TIDEWATER PSV The Jiangsu Zhenjiang Shipyard with DP 2 station keeping and in China has delivered Paterson FiFi Class 1, and are equipped Tide, the fifth of six PSVs it is with Siemens‘ Blue Drive Plus building for Tidewater to the C power-supply system which VARD PSV 08 design. offers a significant reduction in The electric-driven vessels have greenhouse gases. a length of 83.8m, deadweight The final vessel in the series, of more than 4,000 tonnes and a Saavedra Tide, was launched by deck area of 870m². They come Jiangsu Zhenjiang in June. HAI YANG SHI YOU 660 DELIVERED TO COSL COSL has accepted delivery of which features an optimised hull newbuild PSV Hai Yang Shi You design, enabling an associated 660 from the COSCO Dalian reduction in emissions. Shipyard in China. Hai Yang Shi You 660 is the first The vessel has a length of 85.4m, of two sister vessels COSCO is breadth of 20m and a deck area building for COSL, with Hai of 1,000m². She was built to Yang Shi You 661 to follow later Wärtsilä‘s VS 485 Mk III design, this year.

SEABREEZE 9 OSV NEWBUILDINGS, S&P

BRAM HERO COMMENCES PETROBRAS CHARTER Newbuild PSV Bram Hero has 300E design. She has a length commenced an eight-year firm of 92.6m, a deadweight of plus eight-year option contract 5,000t, and a deck area of almost with Petrobras. This follows her 1,000m². recent delivery by Navship in Navship is building two more Navegantes, Brazil. 5,000 dwt PSVs for Edison The Edison Chouest PSV, funded Chouest (out of a total of seven), by the Merchant Marine Fund with deliveries scheduled for (FMM), was built to the NA later this year. ANOTHER EDISON PSV DELIVERED IN NORWAY As well as accepting delivery been expected to go on bareboat of Bram Hero in Brazil, Edison charter to Fletcher Shipping Chouest has welcomed another under the name FS Scorpius. PSV to its fleet following her C-Warrior was built to Rolls delivery in Norway. Royce‘s UT 755 LC design, The C-Warrior, built at the Sim- giving her a length of 76.4m, ek Shipyard, was only acquired breadth of 16.0m and deck area by Edison Chouest in June. Prior of 764m². She is also equipped to this acquisition, the vessel had with a FiFi system. NORTH BARENTS LAUNCHED IN It has been a busy month for the yard in Turkey. Final oufitting will Simek Shipyard. In addition to the take place at the Simek yard in delivery of the C-Warrior, the yard Norway, with delivery scheduled was also involved in the successful for early 2016. launching of a newbuild PSV that North Barents is a sister vessel to is being built for GulfMark Off- the North Cruys and North Pomor. shore. The North Barents, being She has Ice-1B notation, a dead- built to the ST-216 Arctic design, weight in excess of 5,000t, and a was launched at the Desan Ship- deck area of more than 1,000m².

FIRST OF EIGHT PSVS DELIVERED TO ESNAAD The De Hoop Shipyard in the clear deck area of 475m². Netherlands has delivered the The construction of the vessels first vessel in a series of 10 PSVs is being split equally between that it is building for ESNAAD, De Hoop‘s Lobith and Foxhol a wholly owned subsidiary of facilities. All 10 PSVs are due to ADNOC (Abu Dhabi National Oil be delivered by 2017. They are Company). intended for operations in the oil ESNAAD 221 has a length of and gas fields offshore the United 65m, a breadth of 15.8m and a Arab Emirates.

10 SEABREEZE OSV NEWBUILDINGS, S&P

SINOPACIFIC TO BUILD NINE AHTS VESSELS FOR ESNAAD Having accepted delivery of the to the SPA 80A design, which will first of 10 PSVs from the De Hoop provide them with an electric Shipyard, ESNAAD (ADNOC) has propulsion system and a bollard continued with its fleet expansion pull of 80 metric tons. They will plans by placing an order with also be tailored for operations in Sinopacific for nine AHTS vessels the complex conditions of high to be built in China. salinity, high temperatures and All nine vessels are due to be de- high humidity that are prevalent livered in 2017. They will be built in the Persian Gulf. BUGSIER REEDEREI ORDERS TWO TUGS Bugsier Reederei has placed 80 tonnes. She will be targeted for shipyard orders for the construc- work both offshore and in port. tion of two newbuild tugs. The second order was placed The first order was placed at the with Damen Shipyards in the Bogazici Shipyard in Turkey. Netherlands. This vessel is Designed by Cintranaval - Defcar intended purely for harbour / Spain, this vessel (pictured) will operations. She will have a length have a length of 32.0m, breadth of of 24.5m, breadth of 11.3m and a 12.5m and a bollard pull of at least bollard pull of 65/70 tonnes. BOA OFFSHORE AND FINARGE CANCEL NEWBUILD ORDERS Boa Offshore has cancelled its notice claims for “repayment of shipbuilding contracts with all advance payments including Nantong Mingde Heavy Indus- interest.” try in China. The yard had been Meanwhile, Finarge has also contracted by Boa to build two reportedly cancelled an order newbuild MPSVs to the VS 495 for one AHTS vessel to be built Mk III design. However, due to by SPP Shipbuilding in South extensive delays, the orders have Korea. The vessel, originally now been cancelled. Boa has ordered in 2013, was to be built indicated that the cancellation to the MOSS 919 design.

RECENT DELIVERIES OF NEWBUILD OSVS NAME TYPE/DESIGN OWNER/ MANAGER COMMITMENT BEYA SPA 150 AHTS FEMCO GROUP TBC BRAM HERO NA 300E PSV EDISON CHOUEST OFFSHORE SOUTH AMERICA C-WARRIOR ROLLS ROYCE UT 755 LC PSV EDISON CHOUEST OFFSHORE TBC ESNAAD 221 DE HOOP 65M PSV ESNAAD MIDDLE EAST GRAMPIAN DEVOTION IMT-950 ERRV NORTH STAR SHIPPING NORTH SEA HAI YANG SHI YOU 660 WARTSILA VS 485 MKIII PSV COSL FAR EAST PATERSON TIDE VARD PSV 08 TIDEWATER TBC

SEABREEZE 11 SUBSEA

SUBSEA MARKET ROUND-UP We have started to see an increase Additionally, the 1975-built well the US Gulf in early August; she is in the number of subsea vessels intervention vessel Helix 534, scheduled to become operational being laid up recently, with more currently in the US , during the fourth quarter. scheduled to enter lay up in the is also likely to be warm-stacked Helix Well Ops also advised that coming months. after it completes its 45-day dry they have not yet decided whether Helix Well Ops reports that its docking during the third quarter of they will extend the charter of the light well intervention vessel Sea- this year. well intervention vessel Skandi well will likely be warm-stacked The contractor has announced Constructor past March 2016. The until at least the end of year after that the Helix 534 has some work Ulstein SX121-designed vessel has it completes its major upgrade and lined up in 2016, but they do have full utilisation through the third life extension works at the Damen the option to transfer any contracts quarter and into the fourth quarter Shiprepair Vlissingen shipyard over to the well intervention semi of 2015. during the third quarter of 2015. Q5000, which is due to arrive in HAVYARD RECEIVES ORDER FOR 858L WE DESIGN with an international shipping 140 persons and will be equipped company. with one 250-tonne crane and one The NOK 700 million vessel 30-tonne crane. Industry sources will be capable of IMR and light suggest that the international construction work. The DP3 shipping company behind the Havyard has signed a new contract newbuild, which is due for deliv- order is Marine Platforms. for the design and construction of a ery in the second quarter of 2017, Havyard 858L WE-designed OCV, will have accommodation for up to FAR SENTINEL DELIVERED Farstad Shipping has taken accommodation for 130 persons delivery of its OCV Far Sentinel and space for three ROVs, which from the Vard Langsten shipyard are rated for operations in up to in Norway. 3,000m of water. The uncommitted VARD 3 07 Meanwhile, has awarded designed vessel has an overall the UT 430 CD-designed OCV Far length of 142.6m, and she is Samson a nine-month contract to award, Saipem has awarded the equipped with two offshore cranes, support their activity in Brazil. The 2009-built Far Samson a one-year the largest having a maximum contract will commence during the contract from October 2016 with a lift of 350t. Additionally, she has third quarter. In addition to this further two yearly options. TWO MORE LIFTBOATS FOR TRIYARDS Triyards Holdings has won a USD to be built by Triyards. and they will have accommo- 175 million order for the construc- The liftboats will have a height dation for up to 250 personnel. tion of two BH450 series liftboats. of more than 130 metres, making Deliveries are scheduled for the This order will be for the third them capable of operating in last quarter of 2016 and first and fourth vessels of this design water depths of up to 105 metres, quarter of 2017.

12 SEABREEZE SUBSEA

OLYMPIC DELTA HITS THE MARKET Olympic Shipping’s IMR vessel will supply two Schilling Robotics Olympic Delta has been delivered HD 150 work-class ROVs and the from the Kleven Verft shipyard. necessary crew for operations. In May, Olympic Shipping entered Olympic Shipping and Delta into a frame agreement with Delta Subsea will jointly market the Subsea to supply ROV services vessel to clients for Subsea, IMR onboard the vessel. Delta Subsea and renewable markets. SUBSEA 7 FURTHER REDUCES FLEET Subsea 7 has advised that they pipelay vessels (Seven Antares & and Havila Subsea to DOF Subsea plan to sell or stack eight owned Seven Navica) and the remaining and Havila respectively. vessels in 2015, and will redeliver three vessels to be sold or stacked In 2016, DOF Subsea will also two chartered vessels in 2015 and include the derrick pipelay vessel receive the Skandi Neptune back, a further two in 2016, reducing Seven Polaris, IMR vessel Seven and Subsea 7 will decide later in their fleet by 12 units. Petrel and the accommodation the year if they will return the The eight vessels include three jackup Seven Inagha. IMR vessel Normand Subsea to DSVs (Rockwater 1, Seven Also this year, Subsea 7 will Solstad or the IMR vessel Acergy Discovery & Seven Osprey), two redeliver the OCVs Skandi Seven Viking to Eidesvik in 2016. SAIPEM’S SOUTH STREAM CONTRACT TERMINATED fleet waited for the start of the pipelaying activities. Saipem’s campaign for some seven months, derrick pipelay semi Saipem 7000 Gazprom decided to terminate the and Sealion’s IMR support vessel deal as an agreement could not be Toisa Wave were also scheduled reached on “numerous operation- to be used on the project this year. al and commercial issues.” Meanwhile, Saipem has con- Saipem has received notification Gazprom has announced that firmed that they are scrapping five of the termination of convenience they will enter into discussions vessels, with the first unit named of its South Stream BV contract, with potential contractors to carry as semisubmersible drilling rig valued at USD 2.2 billion. out the work that has been taken Scarabeo 4. The remaining four Saipem was contracted to lay a away from Saipem. Saipem’s pipe- vessels will come from Saipem’s natural-gas pipeline under the lay vessel Castoro 6 was already Offshore Engineering and Con- . However, after its in the process of mooring to start struction business. PETROBRAS RETAINS GEOHOLM Petrobras has extended its RSV vessel, which has a length of contract for the 2006-built IRM 86m and a maximum lift of 90t, vessel Geoholm for 18 months has been operating for Petro- until December 2016. The exten- bras since January 2014. The sion is in direct continuation of total contract value, including the current contract. options, is in the region of NOK The MT 6000MK-II-designed 325 million (USD 39.6 million).

SEABREEZE 13 SUBSEA

DOF REACHES AGREEMENT WITH SUBSEA 7 Subsea 7 and DOF Subsea have the vessel until August 2019. reached an agreement with The Skandi Seven will be regards to the chartered in OCVs redelivered to DOF Subsea on Skandi Acergy, Skandi Seven and January 1, 2016, while Subsea Skandi Skansen. 7 will continue to utilise the Under the agreement, Subsea 7 Skandi Skansen for the majority has committed to a three-year of the 2016 summer season. contract of the Skandi Acergy DOF Subsea has several the next three to twelve months, in direct continuation of the chartered in vessels that can be compensating the redelivery of current firm period, retaining redelivered to owners during the Skandi Seven. C-INNOVATION SIGNS TWO-YEAR DEAL WITH BP BP has awarded C-Innovation length of 122 metres and a max a two-year master services lift of 200 tonnes, is being used agreement, with call-off options, for the campaign. The vessel for inspection, maintenance and is currently working on the repair services. operator’s Atlantis field in Green The contract has already begun, Canyon Block 743, installing two and the ST-275L-CD designed production jumpers. OCV Island Enforcer, which has DEEPOCEAN NEWBUILD TO WORK ON WIND FARM DeepOcean has won an inter-array lay surveys, pre-lay grapnel runs, cable installation contract for phase installation and trenching of 50 II of Belgium’s Bligh Bank offshore array cables. wind farm. DeepOcean will also utilise the This award will be the first DP2 IMR vessel Deep Helder commitment for DeepOcean’s and the multiservice vessel new 138m long, chartered cable Volantis to carry out trenching lay vessel of DOC 8500-design, and to support cable lay opera- currently being constructed by tions. of the year. The contract has an Damen Shipyards for delivery in Offshore operations are due to option for a testing scope that early 2016. commence in the third quarter could extend into the second DeepOcean will carry out pre- of 2016 and run until the end quarter of 2017. EUROPEAN BUILT SUBSEA DELIVERIES (NEXT THREE MONTHS)

SHIP OWNER NAME CHARTERER SHIP YARD TYPE DESIGN MONTH ALLSEAS PIONEERING SPIRIT TALISMAN FINAL OUTFITTING DERRICK PIPELAY - AUG DOF SUBSEA SKANDI TECHNIP VARD SOEVIKNES OCV OSCV 12 AUG ISLAND VENTURES ISLAND VENTURE ISLAND VENTURES ULSTEIN OCV SX165 OCT SUBSEA 7 SEVEN RIO PETROBRAS MERWEDE OCV 550 OCT

14 SEABREEZE RIGS

100% 97.3% $120 95.8% 95.9% 95.3% 95.4% 94.8% 94.9% OIL PRICE 93.6% 93.5% 93.5% 90.1% 94.3% $110 90% 94.2% 94.2% 93.8% 94.5% 86.9% 93.3% 92.8% 92.2% 91.8% $106.98 91.3% 85.2% VS RIG 89.0% $100 $101.92 80% $97.34 83.3% 83.7% $90 UTILISATION $87.27 70% $80 70.8% $78.44 67.5% 65.8% $70 60% 63.0% 62.9% 61.2% 54.9% 53.8% 53.4% $62.16 58.1% 51.9% 52.4% 53.1% $60 $57.93 $59.39 50% $55.79 $64.56 $62.35 $56.80 $50 $48.42 40% $40 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Average Brent Crude US$ / Bbl Northwest Europe Rig Utilisation South America Rig Utilisation US Gulf Rig Utilisation NEW TOTAL CONTRACT FOR WEST PHOENIX Total UK has awarded a contract However, West Phoenix will end to North Atlantic Drilling to secure its current term with Total in Sep- more time with semisubmersible tember 2015, and the rig remains West Phoenix. The new term, uncommited until March 2016. from mid-March 2016 until the This means Total has managed to end of August 2016, has a contract retain its incumbent rig, but avoid value of around USD 62 million. a commitment over the winter. FIRST OF FOUR SONGA NEWBUILDS EN ROUTE TO NORWAY Songa Equinox, the first of four for eight-year firm contracts off- Cat-D semis being built for Songa shore Norway. Songa Equinox is Offshore, is now en route to pictured (c/o L. Leusink) offshore Norway. The rigs are being built Singapore; she is alongside ALP by DSME in South Korea, and Centre, the AHT vessel that is have all been chartered by Statoil towing her to Norway.

INACTIVE RIGS NORTHWEST EUROPE RIG UTILISATION NAME TYPE STATUS LOCATION BORGNY DOLPHIN SS COLD STACKED BELFAST JUL JUL JUL LOCATION COSLPIONEER SS WARM STACKED CCB, AGOTNES 2015 2014 2010 ENERGY ENDEAVOUR JU COLD STACKED ROTTERDAM NORTHWEST EUROPE 83.7% 97.3% 91.8% ENSCO 70 JU WARM STACKED TEESSIDE SOUTH AMERICA 85.2% 94.2% 97.3% ENSCO 102 JU WARM STACKED TEESSIDE GSF GALAXY III JU COLD STACKED CROMARTY FIRTH US GULF 53.1% 70.8% 57.8% GSF MONARCH JU COLD STACKED CROMARTY FIRTH HENRY GOODRICH SS COLD STACKED FIRTH OF FORTH HERCULES TRIUMPH JU WARM STACKED ROTTERDAM RIG TYPE AVERAGE RATES US$ MAERSK RESILIENT JU WARM STACKED CROMARTY FIRTH SEMISUBMERSIBLE < 1,500 FT WD 298,000 OCEAN NOMAD SS COLD STACKED CROMARTY FIRTH OCEAN PRINCESS SS COLD STACKED CROMARTY FIRTH SEMISUBMERSIBLE > 1,500 FT WD 360,000 OCEAN VANGUARD SS COLD STACKED CROMARTY FIRTH SEMISUBMERSIBLE 4,000 FT + WD 436,000 ROWAN STAVANGER JU WARM STACKED DUNDEE DRILLSHIP 4,000 FT + WD 513,000 SEDCO 714 SS WARM STACKED CROMARTY FIRTH JACKUP IC 300 FT WD 104,000 TRANSOCEAN PROSPECT SS COLD STACKED FIRTH OF FORTH TRANSOCEAN SPITSBERGEN SS WARM STACKED KRISTIANSUND JACKUP IC 300 FT + WD 173,000 WEST NAVIGATOR DS COLD STACKED SLOVAG WILHUNTER SS WARM STACKED CROMARTY FIRTH

SEABREEZE 15 CONUNDRUM CORNER, DUTY PHONES

CONOCO CUTS DEEPWATER CAPEX THE SEABREEZE ARCHIVE

ConocoPhillips has announced further reductions For the current or archive copies of Seabreeze go to its capital expenditures for deepwater explo- to: http://www.seabrokers.co.uk/ - see under ration, with the “most significant reductions” Shipbroking / Market Reports. If you wish to coming from its operated programme in the US Subscribe or Unsubscribe please contact : Gulf of Mexico. [email protected]

This has led to ConocoPhillips terminating its contract with newbuild drillship ENSCO DS-9 prior to commencement. The rig, recently deliv- SEABROKERS GROUP CONTACTS ered by Samsung Heavy Industries in South Korea, had been scheduled to begin a three-year charter SEABROKERS HEAD OFFICE Forusbeen 78 - 4033 Stavanger - Norway in the US Gulf in the fourth quarter of 2015. Tel: (+47) 51 80 00 00 Internet: www.seabrokers-group.com To soften the blow for Ensco, ConocoPhillips is obligated to pay termination fees for a period of SEABROKERS CHARTERING AS - STAVANGER Duty Telephone ++47 51 815400 (24 Hrs) two years, equal to the operating day rate of USD E-mail [email protected] 550,000 that would have applied. The termination fees may be partially defrayed if Ensco secures an SEABROKERS LTD - ABERDEEN alternative contract for the rig within the next two Duty Telephone ++44 1224 747744 (24 Hrs) Duty Mobile ++44 7802 304129 years. E-Mail [email protected]

SEABROKERS BRAZIL LTDA - RIO DE JANEIRO Duty Telephone ++55 21 3505 4200 (24 Hrs) CONUNDRUM CORNER E-mail [email protected]

The answer to last month’s teaser :- SEABROKERS PTE LTD -SINGAPORE Telephone ++65 6224 6062 or 0951 When you need me, you throw me away. But E-mail [email protected] when you’re done with me, you bring me back. SECURALIFT AS - STAVANGER What am I? Telephone ++47 51 800000 HEADINGE-mail [email protected] The correct answer was :- an anchor QuiatisSEA SURVEILLANCE imaximilitem AS num - BERGEN enis porum ne dolles Telephone ++47 55 136500 This month, our poser is as follows: quiE-mail rerum id min [email protected] dolo quo conet il id quisto que voluptatus eatis re ventur? Hilibust Deciper the code to find the names of four differ- quisSEABROKERS as mincias EIENDOM peribustis AS -qui STAVANGER dolorit officatus ent countries. What are the countries? autTelephone preiumquas qui ++47 iuscimu 51 800000 sapelest, esto odio. E-mail [email protected] Itatecum cus acerum ipidunture corporpores et int 1. XZMZWZ faccumSEABROKERS remperi SERVICES onsequi AS - STAVANGER 2. URMOZMW Telephone ++47 51 800000 3. NVCRXL E-mail [email protected] 4. RGZOB SEABROKERS ENTREPRENØR SERVICE AS - STAVANGER Telephone ++47 51 800000 Answers back to [email protected] for E-mail [email protected] a chance to win a bottle of wine. SEABROKERS KRAN & TRANSPORT AS - STAVANGER Telephone ++47 51 800000 E-mail [email protected] 16 SEABREEZE