JUNE 2020 UK E&P INDUSTRY TO HALVE EMISSIONS WITHIN 10 YEARS 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 9001:2015. 14 RENEWABLES 15 RIGS 16 CONUNDRUM CORNER & DUTY PHONES

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Production and Administration: Seabrokers Ltd, Aberdeen SEA SURVEILLANCE FOUNDATIONS For your free copy of Seabreeze, email: YACHTING HARBOUR CRANES [email protected] The Seabreeze Monthly Market Report OUR OFFICES: is distributed worldwide through STAVANGER BERGEN SKIEN our offices in Aberdeen, Stavanger and ABERDEEN RIO DE JANEIRO Rio de Janeiro.

© Seabrokers Group 2020 www.seabrokers-group.com OSV MARKET ROUND-UP

STAGNANT SPOT PLEDGE TO HALVE UK EMISSIONS IN A DECADE

RATES IN & Gas UK, an industry trade programmes that will aim for association, has unveiled a target offshore facilities to be powered The spot PSV market has started to halve emissions from UK by electricity as opposed to gas. to stabilise in the North Sea. exploration & production by Following a spate of layups from 2030. The organisation has set a These targets form part of a March through May, owners further target for the UK basin to transformational sector deal that have managed to reduce supply be net-zero by 2050. the industry is now formally levels to a more manageable discussing with the government. level. The oil & gas sector is one of With jobs at its core, the sector the first in the UK to commit to deal will consider how the UK’s Nevertheless, although a bit industry-wide targets, and more oil & gas industry can support a of stability has been achieved importantly provide details on green recovery. with regards to supply, the how these targets are likely to be same cannot be said for rates. achieved. This could see the sector form In the UK sector, every fixture part of a wider UK effort to in June fell within a narrow A recent report entitled “The decarbonise by developing band of GBP 3,000-6,000 (USD Pathway to Net Zero: Production critical carbon-cutting solutions. 3,710-6,805). In Norway, rates Emissions Targets” specifically This would include industrial- ranged from NOK 50,000-75,000 outlines how these targets may scale carbon capture and storage, (USD 5,180-7,770). No owner is be achieved through operational similar to Norway’s Northern making money at those levels. changes, progressive reductions Lights Project, as well as the in flaring and venting, along use of hydrogen for heating and In the AHTS sector, it was with major capital investment heavy transport. another quiet month in terms of the number of requirements. However, there are fewer than NORWAY LAUNCHES APA 2020 30 vessels active on the spot market so it doesn’t take long The Norwegian Ministry of to encourage exploration in the for the market to tighten. While and Energy has geologically best known parts of owners are suffering from a launched its latest licensing Norway’s continental shelf. The severe lack of confidence, there round: the Awards in Predefined expected discoveries in mature were a few rig moves in the UK Areas (APA) 2020. This round areas are smaller but exploration sector that generated fixtures in includes blocks in the North Sea, is focused mainly on prospects the GBP 20,000-30,000 (USD Norwegian Sea and Barents Sea. that could still be profitable by 24,745-37,115) bracket. Having Since APA 2019, the predefined utilising existing infrastructure said that, the market remained areas have been expanded to or if developed in conjunction firmly in charterers’ favour for include 36 more blocks in the with other nearby discoveries. most of the month. Norwegian Sea. The deadline for applications is September 22, Separately, Norway will launch Further north, it was a similar 2020, with awards to be made its 25th licensing round for more story with NOK 325,000 (USD during the first quarter of 2021. prospective acreage in autumn. 33,670) marking the upper end This will be divided into nine of the market for Norwegian rig The Awards in Predefined Areas areas, eight in the Barents Sea moves in June. process was introduced in 2003 and one in the Norwegian Sea.

SEABREEZE 3 OSV MARKET ROUND-UP

SOLSTAD SCOOPS REWARD Normand Springer Solstad Offshore has picked up term contracts for two of its North Sea PSVs with Repsol UK.

The Far Spica and Normand Springer have each been fixed up for a firm period of six months with six further one-month options available. The Far Spica was reactivated after a brief period in layup to commence her charter in June, while the Normand Springer (or sister vessel) is scheduled to go on hire in October. The Springer is currently working on a term PX 105 PSV that was delivered in 2012-built Far Solitaire has had charter with UK. 2014. her charter extended until the end of 2020. The UT 754 WP The Far Spica is a 2013-built In Norway, Solstad has picked PSV has been supporting Aker STX PSV 08 CD unit, while the up more work from its Frame BP’s operations offshore Norway Normand Springer is an Ulstein Agreement with Aker BP. The since December 2019. MORE AKER BP WORK FOR EIDESVIK Aker BP has been making full year. Aker BP has also awarded a use of a Frame Agreement that four-month charter to Eidesvik it has in place with Eidesvik for the Viking Prince PSV. The Offshore as well. Eidesvik has 2012-built vessel is currently received a four-month contract trading the North Sea spot extension for PSV Viking Lady market but is scheduled to go that will keep the 2009-built on hire to Aker BP at the start of Viking Lady (pictured c/o H. Otneim) vessel on hire until the end of the September. SWAN STAYS WITH WINTERSHALL DEA Staying in Norway, Golden and she is now firmly committed Energy Offshore has secured until November 30, 2020. There a contract extension for PSV are further options available that Energy Swan with Wintershall could see the vessel stay on hire Dea Norge AS. until the end of November 2021. The extension will commence The Energy Swan is a 2005-built in direct continuation of the ST-216-L PSV with a length of vessel’s original 2013 contract, 93.4m and deck area of 1,041m².

4 SEABREEZE OSV MARKET ROUND-UP

BRAZIL BOUNTY FOR DOF Skandi Fluminense (c/o Capt J. Plug) The DOF Group has secured long-term contracts for three of its AHTS vessels with . The vessels will be supporting Petrobras’ exploration and production activities on the Brazilian continental shelf.

The Skandi Fluminense and Skandi Urca have each been awarded two-year firm contracts with two years of options. Both contracts are scheduled to begin in September. Meanwhile, the Skandi Paraty was awarded a one-year contract that started at the beginning of June. vessels are all Brazilian-built and Norskan while DOF Subsea are equipped with Work Class Brasil will be responsible for the All three units were already on ROVs for operations in water ROV operations. Both of those hire to Petrobras prior to the depths of 3,000m (9,843ft). They companies are 100% owned award of these new fixtures. The are all owned and operated by subisidiaries of DOF ASA. PETROBRAS PICKS SOLSTAD PAIR Solstad Offshore has also picked in water depths of 3,000m up a pair of term contracts with (9,843ft). Both contracts are Petrobras. AHTS vessels Far due to start in September, with Sagaris and Far Statesman have a total value (exluding ROVs) each been fixed for a firm period in excess of NOK 800 million of three years. Both vessels will (USD 83 million) for Solstad. The sail under the Brazilian REB flag Far Sagaris is already based in and they will be equipped with Brazil while the Far Statesman is Far Statesman (pictured c/o O. Halland) Work Class ROVs for operations relocating from Australia. CHARTERS TOLMOUNT VESSELS Saipem has chartered a batch Endurance have been kept on by of vessels to support pipelay Saipem alongside another AHTS activities at ’s vessel, Boskalis’ Sovereign, and Tolmount field offshore the UK. three DOF PSVs (Skandi Buchan, Having just towed the Castoro Skandi Caledonia and Skandi Sei pipelay vessel to the North Foula). The vessels are expected Sea from the Adriatic Sea, AHTS to be on hire for at least a month vessels GH Atlantis and GH with further options available. GH Atlantis (pictured c/o R. Zegwaard)

SEABREEZE 5 OSV RATES & UTILISATION

JUNE 2020 - DAILY NORTH SEA OSV AVAILABILITY PSV 2020 PSV 2019 AHTS 2020 AHTS 2019 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

RATES & UTILISATION NORTH SEA SPOT AVERAGE UTILISATION JUNE 2020 TYPE JUN 2020 MAY 2020 APR 2020 MAR 2020 FEB 2020 JAN 2020 MED PSV 60% 42% 66% 63% 59% 66%

LARGE PSV 63% 50% 58% 74% 65% 80%

MED AHTS 41% 38% 51% 38% 13% 62%

LARGE AHTS 52% 55% 67% 57% 36% 63%

NORTH SEA AVERAGE RATES JUNE 2020 AVERAGE RATE AVERAGE RATE CATEGORY % CHANGE MINIMUM MAXIMUM JUN 2020 JUN 2019

SUPPLY DUTIES PSVS < 900M2 £4,485 £10,224 -56.13% £3,000 £5,500

SUPPLY DUTIES PSVS > 900M2 £4,769 £11,039 -56.80% £3,500 £6,280 AHTS DUTIES AHTS < 22,000 BHP £16,898 £24,750 -31.73% £10,000 £30,000 AHTS DUTIES AHTS > 22,000 BHP £17,197 £25,687 -33.05% £5,861 £30,000 SPOT MARKET ARRIVALS & DEPARTURES - JUNE 2020 ARRIVALS - NORTH SEA SPOT DEPARTURES - NORTH SEA SPOT DEPARTURES CONTINUED MAERSK DISPATCHER EX CANADA ALP ACE WEST AFRICA ISLAND DAWN MEDITERRANEAN SIEM GARNET EX SOUTHEAST ASIA ALP STRIKER NORTH AMERICA FAR SIGMA RUSSIA SKANDI BERGEN EX WEST AFRICA BOKA PEGASUS WEST AFRICA MAGNE VIKING RUSSIA FAR SAPPHIRE WEST AFRICA SIEM PEARL RUSSIA * 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£17,500

PSVs < 900m² £15,000 All Cargo Runs £12,500£30,000 £10,000 £20,000 £7,500 £10,000 £5,000 £2,500 £- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 £5,299 £8,789 £9,473 £15,340 £14,573 £10,224 £10,639 £8,420 £11,161 £5,916 £8,398 £7,918

2020 £5,257 £6,308 £8,863 £3,485 £3,751 £4,485 £- £- £- £- £- £-

£20,000£17,500

PSVs > 900m² £15,000 PSVs < 900M²900M2 £12,500£15,000 £10,000 £10,000 £7,500 £5,000 £2,500

£- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 £5,280 £11,076 £13,339 £16,587 £15,422 £11,039 £11,928 £10,646 £10,434 £6,940 £8,007 £9,683 2020 £6,810 £8,014 £7,132 £3,733 £4,370 £4,769 £- £- £- £- £- £-

£40,000 £40,000 AHTS < 22,000 bhp £35,000 PSVs > 900M²900M2 £30,000 £25,000 £20,000 £15,000 £10,000 £5,000 £- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 £29,143 £14,899 £19,848 £15,703 £21,629 £24,750 £20,533 £16,124 £35,871 £34,305 £24,346 £21,707 2020 £7,959 £18,562 £25,486 £7,087 £10,745 £16,898 £- £- £- £- £- £-

£40,000 £35,000 AHTS > 22,000 Rig Moves £30,000 £25,000 £20,000 £15,000 £10,000 £5,000 £- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 £16,134 £20,987 £20,592 £16,775 £26,482 £25,687 £23,150 £32,237 £33,057 £29,220 £24,610 £34,702 2020 £9,203 £16,901 £21,268 £8,141 £13,100 £17,197 £- £- £- £- £- £-

£25,000 Average Day RatesAverage To MonthDay Rates (June To 2020) Month (June 2013) £20,000 £15,000 £10,000

£5,000

£- PSVs < 900m² PSVs > 900m² AHTS < 22,000 bhp AHTS > 22,000 bhp 2019 £10,580 £11,873 £20,992 £21,687 2020 £5,850 £6,064 £15,599 £14,760

SEABREEZE 7 FEATURE VESSEL

ISAAC NEWTON

Jan De Nul and Hellenic Cables have joined forces to install and protect a submarine power cable between the island of Crete and the Peloponnese region of the Greek mainland on behalf of end client Adime.

Jan De Nul’s DP2 cable lay / the cable in water depths up to trenching support vessel Isaac 980m (3,215ft). Newton will be utilised for the campaign. The 2015-built The Isaac Newton can install up vessel has a length of 138m and to 10,700t of cable with a 7,400t ISAAC NEWTON SPECS: breadth of 32m, and she has a capacity turntable above deck 50t maximum lift capacity with and a 5,000t capacity turntable Yard: Uljanik shipyard, Croatia accommodation for 75 persons. below deck, along with two 20t Built: 2015 tensioners. LOA: 138m Hellenic Cables, specifically Breadth: 32m through its subsidiary Fulgor, The vessel is mobilising from the Deadweight: 12,500t will produce the 135.7km cable Far East to the Mediterranean Max Lift: 50t at its Corinth plant in Greece, Sea to commence this campaign, Accommodation: 75 persons while the Isaac Newton will with arrival in Greece scheduled Bollard Pull: 100t be used to install and protect for late July. Dynamic Position: Class 2

8 SEABREEZE NEWBUILDS, CONVERSIONS, S&P

SEACOR BUYS COSCO STAKE IN SEACOSCO JV SEACOR Marine Holdings Inc eight Rolls-Royce designed PSVs has entered into a definitive that were all built by COSCO sale and purchase agreement Shipping Heavy Industry to acquire the remaining 50% (Guangdong) in China. Seven are equity in SEACOSCO Offshore already in service with the last LLC from COSCO Shipping one due for delivery later this Group. SEACOSCO is now 100% year. Seacor Marine will pay an owned by SEACOR Marine. aggregate purchase price of USD The SEACOSCO fleet consists of 28.15 million for the transaction. Seacosco Congo

ISLAND OFFLOADING PSVS Island Offshore is selling two market. The Island Duchess, PSVs to undisclosed buyers, with which has yet to depart Norway, a third vessel to be sent out on a has been laid up since 2016. bareboat charter with a purchase Meanwhile, the Island Dragon, option. The Island Dawn and which was laid up in Norway Duchess are being sold, with the earlier this year, is heading out Dawn already en route to the on bareboat charter. All three of Mediterranean. She has recently the vessels are UT 717 CD PSVs Island Dragon (pictured c/o P. Gowen) been trading the North Sea spot that were built in 2013-2014. MAERSK SELLS IDLE AHTS DUO Maersk Supply Service has sold for several years, have been sold two of the older AHTS vessels to an international buyer; they in its fleet due to the global will be modified for new roles in oversupply of OSVs and the a non-competing industry. tough trading conditions that are The Maersk Advancer and currently being experienced. Asserter are sister vessels, built The Maersk Advancer and in 2004, with a length of 90.3m, Maersk Asserter, which have engine output of 23,480 bhp and both been laid up in Denmark a bollard pull in excess of 250t. Maersk Asserter (pictured c/o T. Resser) TIDEWATER CONTINUING TO HIGH-GRADE FLEET Tidewater is making good Courage and Rover are expected progress with its attempts to to be recycled, while the high-grade its fleet by divesting Endurance will remain active. the less competitive vessels in Tidewater is also understood to its portfolio. In the North Sea, have agreements in principle to Tidewater has recently sold sell more laid-up vessels from its AHTS vessels Highland Courage North Sea fleet, with the closure and Highland Endurance, along of these transactions slightly Highland Rover with PSV Highland Rover. The delayed due to Covid-19.

SEABREEZE 9 NEWBUILDS, CONVERSIONS, S&P

ANOTHER AHTS FOR RAWABI VALLIANZ Berlitz Offshore & Marine in Rawabi Vallianz as one of the Singapore has sold its AHTS units in a 17-vessel deal it has vessel BES Onyx to Rawabi secured with . Vallianz Offshore Services in The vessel was built at the Saudi Arabia. Guangzhou Shunhai Shipyard The 2015-built vessel is to be in China. She has a length of renamed as the Rawabi 35. She 60.8m, a deck area of 450m², an is currently in Dubai, UAE, but engine output of 7,200 bhp and a is expected to be deployed by bollard pull of 90t. ARKSTAR VOYAGER RETURNING TO MIDDLE EAST Qatari owner First Oil & Gas to return to the Middle East; Services has acquired the she was previously based in the 2009-built PSV Arkstar Voyager region for several years while from Singapore-based Arkstar contracted to Saudi Aramco from Offshore. 2014 until early 2020. The DP2 Following the sale for a reported PSV has a length of 69.9m, deck USD 4 million, the vessel has area of 560m², deadweight of since been renamed as the FOG 3,035t and an accommodation 15. She recently left Singapore capacity for 50 persons. Arkstar Voyager (pictured c/o P. Sinke) DIXSTONE SOURCES PSV FOR W2W ERRV CONVERSION The Royal Niestern Sander the Wuhu Shipyard in China Shipyard in the Netherlands has earlier this year. The conversion signed a contract with Dixstone process has already started, with Holdings Ltd to convert a newly the vessel expected to be ready built PSV into a Class B Walk-to- for service early in 2021. She Work ERRV. is intended to be chartered to The vessel in question is the on a long-term basis for Wärtsilä-designed SK Line operations in the southern North 728, which was delivered from Sea offshore the UK. ANOTHER W2W PROJECT FOR ROYAL NIESTERN SANDER In addition to the Dixstone an intermediary between the deal, the Royal Niestern Sander parties. Delivery is scheduled for yard has also secured a deal to December 2021, with Mercury build the world’s first shallow Sakhalin to operate the vessel off draft ice-breaking walk to work the east coast of Sakhalin Island vessel. A contract has been in Russia for the oil and gas signed with a joint venture industry. The vessel will be able between Mercury Sakhalin and to break through 1m of ice in Pola, with Wagenborg acting as temperatures as low as -30°C.

10 SEABREEZE SUBSEA

SUBSEA MARKET ROUND-UP During these turbulent times, while the HOS Wild Horse has a it ownership of the vessels and many owners are looking at length of 92m, a maximum lift of related materials so long as it potential refinancing packages. 250t and accommodation for 102 made all its payments. One example is Hornbeck persons. Offshore, which is going through With regards to Hornbeck’s a pre-packaged Chapter 11 Hornbeck has stated that 1,500 ongoing pre-packaged Chapter process. It is business as usual in deficiencies were noted on 11 bankruptcy proceedings, many ways though, as Hornbeck the two vessels and delivery the company is looking to is simultaneously engaging with was delayed multiple times. discharge USD 1 billion in debt the federal courts to force the In response, the shipyard has in exchange for USD 100m in Gulf Island Shipyard to hand filed a lawsuit against Hornbeck new equity after securing USD over two partially built vessels. claiming that the owner delayed, 75m of debtor-in-possession hindered and disrupted its financing. The proposed plan for The two multipurpose vessels, work leading to a wrongful reorganisation contemplates the the HOS Warhorse and HOS termination of the contract. The Debtor obtaining possession of Wild Horse, were commissioned shipyard further states that there the vessels and financing their in 2013 for USD 62.6 million are still some outstanding bills. completion at a cost of USD 65 each but cancelled in 2018 over million. This reorganisation plan performance issues. The HOS When Hornbeck terminated was approved in late June with Warhorse has a length of 110m, the agreement with Gulf Hornbeck expected to emerge a maximum lift of 250t and Island in 2018, it stated that the from bankruptcy within the next accommodation for 102 persons, construction agreement gives few months. ALLSEAS STARTS WORK OFFSHORE CHINA COOEC has contracted Allseas fleet upgrades in response to to install an 18-inch 90km current market conditions. exportline and pipeline end This includes upgrades to the termination (PLET), four 10-inch Pioneering Spirit, Auducia and flowlines totalling 53km, three Solitaire. 4.5-inch MEG lines totalling 19km and six PLETs. A 4.5-inch The contractor is also expected 2.3 km pipeline will be installed to layup several vessels. The in water depths of 500m with 1974-built Lorelay, which was Allseas’ pipelay vessel Audacia PLETs at both ends. converted in 1986, is laid up in and trenching vessel Calamity Norway. It is further understood Jane have commenced work at The subsea production system that the Oceanic will be laid up CNOOC’s deepwater Lingshui for the gas field includes eleven for the remainder of 2020 while 17-2 gas field offshore China. horizontal subsea trees, four the pipelay vessel Tog Mor has manifolds, a topside and subsea already been down manned. The Audacia will install 160km control system and a vertical of subsea pipelines and multiple tie-in connection system. Once completed with the structures in water depths of up Lingshui 17-2 campaign, Allseas to 1,500m, with the Calamity Meanwhile, Allseas has revealed will market the Calamity Jane Jane providing support. that it has postponed its planned for sale.

SEABREEZE 11 SUBSEA

FUGRO AWARDED THREE-YEAR IMR CONTRACT Seamec has awarded Fugro Mumbai’s offshore assets. removal, cathodic potential, and a three-year IMR contract to This includes the processing thickness measurements of the support its asset management and wellhead platforms, the jacket structures and subsea project for ONGC off the west risers, subsea pipelines, PLEMs pipelines. coast of India. (pipeline end manifolds), SBMs Fugro will provide work class (single buoy moorings) and SPMs ROV services for three years (single point moorings). with the option of a two-year The ROV services will support extension. The Seamec project various critical IRM activities involves the IMR of ONGC including marine growth DEEPOCEAN TO WORK ON YME Repsol has awarded DeepOcean management, engineering, also the installation of subsea an EPCI contract for marine construction and offshore structures. The contractor will operations for the tieback of installation activities. Offshore undertake preparations for the the Yme Beta North reservoir work, which will commence in commencement of production at offshore Norway to existing 2021, includes marine operations the tieback. facilities. for the installation and tie-in of The award covers the project subsea spools, flying leads and TECHNIP AWARDED MULTIPLE CONTRACTS Equinor has awarded two has been issued for the Askeladd laying of pipelines, installation contracts and issued a further Vest project. Equinor announced of subsea structures, control letter of intent to TechnipFMC that the Breidablikk contract cables and hook-up and testing for subsea installation and has a subsea installation option. of systems. pipelay at three of its projects in The awards for Breidablikk and Offshore works are planned to the Norwegian sector. Askeladd Vest are subject to take place from 2021-2023. The The awarded contracts are for final investment decisions being total value of the three deals, Breidablikk and the Gas Import taken. including the option, is around System for the Snorre Expansion TechnipFMC’s scope of work NOK 1.8 billion (USD 186.9 Project, while the letter of intent will consist of fabrication and million). OLYMPIC CHALLENGER BEGINS WORK ON JOTUN A SubseaPartner, a Norwegian Jotun A FPSO while the unit diving contractor, recently is moored outside Stavanger. commenced a sub-contract The company will use the from Ocean Installer and Baker OCV Olympic Challenger as Hughes for work on Var Energi’s its accommodation facility and Balder Future project. operational centre while work is The work scope includes the ongoing. Close to 60 divers, dive removal of the remaining risers technicians and supervisors will and mooring chains from the carry out the tasks.

12 SEABREEZE SUBSEA

PRODUCTION AT BALMORAL TO END EARLY Premier Oil has brought forward had originally been planned risers and mid-water arches, cessation of production (CoP) at when Premier bought Balmoral and disconnection of the FPV its Balmoral field offshore the in 2009. The Balmoral area moorings. Phase 2 will comprise UK from 2021 to October 2020. has been producing since 1986. the decommissioning of the The decision was made due Decommissioning of the area subsea infrastructure while to the dramatic global impact comprises the Balmoral, Brenda, Phase 3 will cover the plug and of Covid-19 and the expected Glamis, Nicol and Stirling abandonment of wells. prolonged effect on commodity fields. Phase 1 of the project demand and pricing. The new will include the removal of the date is still three years later than Balmoral FPV and associated CHEVRON FILES GORGON EXPANSION PLAN An environmental plan has been assess the plan for approval. The work scope will include filed by Chevron for the subsea The operator is looking to the installation of the flowlines, installation campaign of its expand the subsea gathering umbilicals, subsea structures, Gorgon Stage 2 project offshore network within the existing jumpers and flying leads. Western Australia. The National Gorgon and Jansz–Io fields in Chevron is planning to start the Offshore Petroleum Safety and order to maintain the gas supply subsea installation campaign Environmental Management to the Gorgon LNG facility on as early as the fourth quarter of Authority (NOPSEMA) will now Barrow Island. 2020. SLEIPNIR TO INSTALL P11 UNITY PLATFORM Heerema has been awarded a accommodation capacity for 400 an EPCI contract for the Unity contract with HSM Offshore persons. The P11-Unity platform platform back in November 2019 for the transportation and weighs around 400t, making it with completion expected in installation of ’s one of the world’s smallest due November 2020. P11-Unity platform. Heerema to its back-to-basics design. The will utilise its 2019-built heavy gas production platform with a lift semi Sleipnir for the project. two-deck topside will support The 220m long Sleipnir is two production wells and equipped with two 10,000t associated utility and control cranes, providing a maximum systems in the Dutch North Sea. lift of 20,000t, and she has an HSM Offshore was awarded POSH TO ACCOMMODATE ON/OFF HIRE SEAFARERS POSH is working in conjunction designated two facilities to accommodate 198 persons, is with the Maritime and Port house off-hiring seafarers prior one of two facilities being used Authority (MPA) of Singapore to to their flights out of Singapore to support crew changes for provide accommodation services and/or signing-on crew for a cargo ships calling in Singapore. for shipowners, ship managers period of up to 48 hours. POSH’s The Singapore-registered vessel and manning agencies. 2014-built accommodation would be given priority for crew From 19 June, the MPA has vessel POSH Bawean, which can change applications.

SEABREEZE 13 RENEWABLES

SCOTLAND OPENS UP OFFSHORE LEASING ROUND capacity to support up to 10 GW km² which would indicate that of new capacity. The marine each individual application plan includes 16 potential sites could support around 1 GW of for development, with the offshore wind capacity, if all majority located off Scotland’s available sites are used. east and north coasts while two Scotland currently has nearly are off the west coast. 900 MW of offshore wind Crown Estate Scotland has Crown Estate Scotland plans to capacity with more than 2.2 GW launched the country’s first award a maximum of 8,600 km² in development. The country offshore wind leasing round in of seabed rights. It is limiting aims to reach net-zero emissions more than a decade, with the individual applications to 860 by 2045. TWO NEW AREAS TO BE LAUCHED IN 2021 Following on from Scotland’s is located west of Haugesund although floating foundations announcement, Norway has and is suitable for floating wind could also be relevant. opened two more areas for power, while Sørlige Nordsjø offshore wind development. II borders the Danish sector The Utsira Nord and Sørlige in the North Sea. This parcel, Nordsjø II areas will launch on which covers an area of 2,591 1 January 2021 and together will km², is located in water depths have a capacity of 4,500 MW. which would make it possible The 1,010km² Utsira Nord area to develop bottom-fixed projects JAN DE NUL STARTS TAIWAN CAMPAIGN inter-array subsea cables at The 21 jackets for the wind farm Taiwan Power Company’s 109.2 are being mobilised from South MW Changhua Phase 1 offshore Korea to the Taiwan site on a wind farm. self-propelled semisubmersible The Changhua OWF contract transport vessel. was awarded to the Jan De The Isaac Newton has now Nul-Hitachi consortium in April departed the Changhua Phase 1 Jan De Nul’s cable-laying vessels, 2018. This project involves the project, leaving the Willem de the Isaac Newton and Willem manufacture and installation of Vlamingh and Grand Canyon II de Vlamingh, with the support 21 wind turbines, each with a to complete the campaign. The of Volstad Maritime’s Grand capacity of 5.2 MW, in addition Isaac Newton is mobilising back Canyon II, have started the to the supply and installation of to Europe for a submarine power installation of the export and onshore and offshore cables. cable project (see p.8 for details). SCYLLA REPLACES ORION Wind installation vessel Seajacks vessel suffered damage when now start to install the 103 jacket Scylla has been fixed to replace her crane hook broke during an foundations at the Moray East DEME’s Orion after the latter overload test. The Scylla will offshore wind farm in July.

14 SEABREEZE RIGS

OIL PRICE VS RIG UTILISATION INACTIVE RIGS NORTHWEST EUROPE 100% $75 NAME TYPE STATUS $70 87.9% 87.9% 87.8% BIDEFORD DOLPHIN SS WARM STACK 90% 87.3% 87.7% $65 $65.85 $64.00 $63.60 $63.30 $62.33 $62.74 $60 BLACKFORD DOLPHIN SS WARM STACK $59.25 $59.37 $55 80% 75.4% 76.2% 75.1% 84.1% 74.2% 74.2% 81.3% 81.1% $55.00 $50 BOLETTE DOLPHIN DS WARM STACK $45 70% 74.0% 74.1% BORGLAND DOLPHIN SS WARM STACK 72.4% 71.8% 72.9% 73.1% 72.5% 73.8% $40 69.3% $40.88 $35 COSLINNOVATOR SS WARM STACK 60% 65.9% 63.6% 62.5% $32.98 62.2% $30 $31.02 DEEPSEA BERGEN SS WARM STACK $25 50% $23.34 $20 50.8% MAERSK GALLANT JU COLD STACK 48.8% 50.1% 50.0% $15 40% 44.7% 44.2% 43.8% 43.9% 44.0% $10 MAERSK INNOVATOR JU WARM STACK 43.2% 41.8% 40.8% 40.3% $5 MAERSK INTERCEPTOR JU WARM STACK 30% $0 Jun 19 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 MAERSK REACHER JU WARM STACK Average US$ / Bbl Northwest Europe Rig Utilisation South America Rig Utilisation US Gulf Rig Utilisation MAERSK RESILIENT JU WARM STACK

MAERSK RESOLUTE JU WARM STACK

SEADRILL TO DIVEST RIGS NOBLE HANS DEUL JU WARM STACK In response to the recent macro of shareholders. The company NOBLE HOUSTON COLBERT JU WARM STACK events which have materially has now made significant changed the outlook for offshore impairments to its rig valuations NOBLE SAM HARTLEY JU WARM STACK drilling rig demand, Seadrill and has advised of an increased NOBLE SAM TURNER JU WARM STACK has been assessing whether the probability that up to 10 of its OCEAN VALIANT SS COLD STACK continued cold stacking of its rigs, mainly semisubmersibles, PROSPECTOR 1 JU WARM STACK assets is still in the best interests will need to be scrapped. PROSPECTOR 5 JU WARM STACK

SCARABEO 8 SS WARM STACK

FRAMEWORK AGREEMENT FOR COSL STENA SPEY SS WARM STACK COSL Drilling Europe has associated services for offshore SWIFT 10 JU COLD STACK signed a master framework operations. It will also help to agreement with Equinor for facilitate long-term collaboration VALARIS JU-70 JU COLD STACK operations on the Norwegian for the development of new VALARIS JU-71 JU COLD STACK Continental Shelf. This will technologies and initiatives to VALARIS JU-100 JU COLD STACK enable COSL to provide Equinor limit greenhouse gas emissions VALARIS JU-101 JU COLD STACK with additional drilling rigs and from offshore drilling. VALARIS JU-121 JU WARM STACK RIG UTILISATION AND DAY RATES VALARIS JU-123 JU WARM STACK VALARIS JU-249 JU WARM STACK JUNE JUN JUN JUN JUN UTILISATION 2020 2019 2018 2017 2016 WEST ALPHA SS COLD STACK NORTHWEST EUROPE 62.2% 75.4% 68.6% 54.5% 66.3% WEST BOLLSTA SS WARM STACK

SOUTH AMERICA 87.8% 62.5% 66.9% 70.6% 75.1% WEST EPSILON JU COLD STACK

US GULF 40.3% 48.8% 43.3% 33.6% 35.8% WEST LEO SS COLD STACK

WEST NAVIGATOR DS COLD STACK RECENT DAY RATE BENCHMARKS LOW (USD) HIGH (USD) UK HARSH HIGH SPEC JACKUPS 65,000 75,000 WEST PEGASUS SS COLD STACK NORWAY HARSH HIGH SPEC JACKUPS 274,000 280,000 WEST TAURUS SS COLD STACK UK HARSH STANDARD SEMISUBS 140,000 170,000 WEST VENTURE SS COLD STACK

GLOBAL ULTRA-DEEPWATER SEMISUBS 150,000 180,950 WILHUNTER SS COLD STACK GLOBAL ULTRA-DEEPWATER DRILLSHIPS 170,000 230,000 Source: IHS-Petrodata

SEABREEZE 15 CONUNDRUM CORNER, DUTY PHONES

EQUITY RAISE FOR BORR DRILLING THE SEABREEZE ARCHIVE

On June 8th, Awilco Rig 1 Pte. Ltd (a subsidiary For the current or archive copies of Seabreeze go of Awilco Drilling PLC) notified Keppel FELS Ltd to: http://www.seabrokers.co.uk/ - see under (KFELS) of its decision to exercise its contractual Shipbroking / Market Reports. If you wish to right to terminate the newbuilding contract for the Subscribe or Unsubscribe please contact: harsh environment semisubmersible rig Nordic [email protected] Winter. The cause for termination was cited as breaches under the Vessel Construction Contract. Awilco has indicated that the termination carries an entitlement for a refund of the instalments paid SEABROKERS GROUP CONTACTS so far, totalling USD 54,720,985 plus interest. SEABROKERS HEAD OFFICE Forusbeen 78 - 4033 Stavanger - Norway This is disputed by KFELS. The Singaporean Tel: (+47) 51 80 00 00 company later provided notice of its intention Internet: www.seabrokers-group.com to retain the instalments already received from Awilco and to seek further compensation for the SEABROKERS CHARTERING AS - STAVANGER Duty Telephone ++47 51 815400 (24 Hrs) work done to date. E-mail [email protected]

Awilco placed the order for the Nordic Winter, a SEABROKERS LTD - ABERDEEN Moss Maritime CS60 Eco MW rig, in March 2018. Duty Telephone ++44 1224 747744 (24 Hrs) Duty Mobile ++44 7802 304129 The rig was due to be delivered in the first quarter E-Mail [email protected] of 2021. The USD 425 million contract came with options for three sister rigs to be built; one of those SEABROKERS BRAZIL LTDA - RIO DE JANEIRO has been exercised with that contract still in place. Duty Telephone ++55 21 3505 4200 (24 Hrs) E-mail [email protected]

SECURALIFT AS - STAVANGER CONUNDRUM CORNER Telephone ++47 51 800000 E-mail [email protected] Last month’s answer :- SEA SURVEILLANCE AS - BERGEN Telephone ++47 55 136500 What number should appear next in the following HEADINGE-mail [email protected] sequence? QuiatisSEABROKERS imaximilitem EIENDOM num AS - STAVANGERenis porum ne dolles Telephone ++47 51 800000 4 5 5 7 14 17 51 55 ? quiE-mail rerum id min [email protected] dolo quo conet il id quisto que voluptatus eatis re ventur? Hilibust The answer was :- 220 quisSEABROKERS as mincias SERVICES peribustis AS -qui STAVANGER dolorit officatus autTelephone preiumquas qui ++47 iuscimu 51 800000 sapelest, esto odio. E-mail [email protected] This month, our poser is as follows: Itatecum cus acerum ipidunture corporpores et int faccumSEABROKERS remperi FUNDAMENTERING onsequi AS - STAVANGER Add the vowels to give six associated names. What Telephone ++47 51 800000 are they? E-mail [email protected] SEABROKERS HAVNEKRANER AS - STAVANGER WSP RPPL YRK R DM BST Telephone ++47 51 800000 E-mail [email protected] Answers back to [email protected].

16 SEABREEZE