Mero 3 Project Gets Go-Ahead in Brazil Contents
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AUGUST 2020 MERO 3 PROJECT GETS GO-AHEAD IN BRAZIL 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, 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 SHIPBROKING REAL ESTATE SECURALIFT FACILITY MANAGEMENT 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 AHTS OWNERS MAKE MERO 3 SANCTIONED IN BRAZIL SOME MONEY Petrobras and its partners have The decision to go ahead with made an investment decision for this large scale project will bring There have been a few instances the Mero 3 project in Brazil. The a welcome breath of fresh air to earlier this year where there development is located in the the market after the continued were very few AHTS vessels Libra block in the Santos Basin, slowdown in project approvals available to charter on the North some 180km offshore Rio de due to the COVID pandemic and Sea spot market but owners had Janeiro. oil price reductions this year. struggled to gain much traction for rate momentum because all This investment decision follows Mero is the third largest field the confidence had been sapped the earlier commitments for in the Brazilian pre-salt arena. out of the market. Mero 1, with project startup Petrobras holds a 40% stake in expected in 2021, and Mero 2 the project in partnership with Well it seems that some owners which is set to begin in 2023. Shell (20%), Total (20%), CNOOC have regained their confidence, The Mero 3 FPSO is expected (10%) and CNPC (10%). with several recent rig moves to be operational by 2024. All in the UK sector ending up of the FPSOs will have a liquid The Mero 3 FPSO will be the with AHTS fixtures in the GBP treatment capacity of 180,000 third unit installed at the field. 30,000-55,000 range (USD barrels per day. The Mero field The Marechal Duque de Caxias 40,200-73,700). In Norway, there is estimated to hold 3-4 billion FPSO will be chartered for 22.5 was a long list of fixtures in the barrels of oil. years. NOK 350,000-750,000 bracket (USD 40,200-86,200). TOUGH TIMES FOR OSV OWNERS It is important not to get carried away. While owners have The quarterly earnings reporting Hermitage Offshore has been the been securing more lucrative season is back upon us, and the latest owner to file for Chapter fixtures than they had become good news has understandably 11 bankruptcy protection after accustomed to earlier this year, been in short supply this time a consensual restructuring deal in some instances their vessels round in the OSV sector. could not be reached with all were fixed a week in advance of the company’s lenders out of of a rig move and they earned Asset impairment has been court. nothing in the week prior to the most common theme this commencement. And one good season as vessel values are Elsewhere, DOF Deepwater month will not compensate for written down to reflect declining AS, which is jointly owned by all of the loss-making charters demand levels around the globe. DOF ASA and Akastor ASA, will from earlier in the year. The other main themes have soon be solely owned by Akastor been financial restructuring and as part of a debt restructuring However, the events of this vessel layups. agreement. The DOF Deepwater month should serve as a timely entity owns five AHTS vessels: reminder for charterers that the The theme of restructuring will Skandi Atlantic, Skandi Emerald, North Sea AHTS market is not undoubtedly be here to stay Skandi Pacific, Skandi Peregrino one for complacency, especially for the foreseeable future with and Skandi Saigon. DOF will when active supply levels are at many OSV owners hampered continue to act as the vessel such low levels this year. by unsustainable debt burdens. manager for the fleet. SEABREEZE 3 OSV MARKET ROUND-UP HYBRID UPGRADES FOR ISLAND PSVS Island Crusader Island Offshore is upgrading its fleet by installing batteries and shore connection packages on three of its PSVs to reduce fuel emissions. The Island Crusader has already been sailing on battery power since early summer while the Island Commander and Island Contender will also be upgraded for hybrid power compatibility. Two of the three vessels - the Contender and Crusader - were already outfitted to sail on LNG. The battery packs can be used as with quick and effective power Systems (ESS) for the three sister spare capacity and also provide during transit, reducing the need vessels. The Island Commander, extra safety while the vessels are to start up an extra generator for Contender and Crusader have alongside a rig, saving both fuel peak loads. Kongsberg Maritime all been chartered to Lundin and generator running hours. has been selected to deliver the Energy for long-term contracts The batteries also contribute batteries and Energy Storage in Norway. PSV PAIR FOR COP Eidesvik and Island Offshore have been chartered to provide have been awarded contracts to support while Conoco is drilling supply ConocoPhillips with PSVs exploration wells at its Warka to support a two-well drilling and Slagugle prospects in the campaign with Transocean Norwegian Sea. This campaign semisubmersible Leiv Eiriksson should keep the vessels occupied offshore Norway. The Viking until late in the fourth quarter of Viking Princess Princess and Island Challenger 2020. SUPPLIER SUPPORTING CNOOC Rem Offshore has picked up options available. CNOOC will a term contract for PSV Rem be conducting an infill drilling Supplier to support CNOOC’s campaign at the Golden Eagle drilling programme with the field. This should keep the Rem Noble Sam Hartley jackup in the Supplier busy until at least UK sector. The vessel has been December although the options, chartered for two firm wells if exercised, could keep her with three further one-well occupied well into 2021. 4 SEABREEZE OSV MARKET ROUND-UP AUSSIE SUCCESS FOR SOLSTAD... Normand Leader (c/o O. Halland) Australia has proven to be a happy hunting ground for Solstad Offshore recently. Given the remote nature of this market, once you have a pool of vessels committed, they are ideally placed for any follow-on contract opportunities. This may have helped Solstad to finalise 7-8 month contracts with Woodside for PSV Normand Leader and AHTS vessels Far Senator and Normand Saracen. The award of these contracts followed soon after Solstad had announced the confirmation of Diamond Offshore semi Ocean The Normand Leader is a a one-well contract for the same Apex from the fourth quarter 2013-built VS499 PSV while the three vessels with BP Australia. of 2020 before staying with the Normand Saracen (2010) and Far The vessels will support BP’s rig when it moves onto its next Senator (2013) are UT 731 CD Ironbark drilling campaign with contract with Woodside. AHTS vessels. ... WITH MORE JOY IN SOUTH AMERICA Solstad has also been busy on Scotsman until May 2022. Total the opposite side of the globe has extended its contracts with with several contracts extended PSV Normand Swift and AHTS in Brazil. Equinor has extended Far Sagaris until December its charter with the Sea Brasil 2020, although the Far Sagaris PSV by one year and the Far will be replaced by the Far Scout Scotsman PSV by six months. during the charter because the The Sea Brasil is now committed Sagaris has another contract Far Scotsman (pictured c/o J. Plug) until December 2021 and the Far lined up with Petrobras. HAVILA PSVS STAY WITH TOTAL While Total has been busy occupied with Total until at least extending its contracts with June 2021. The latest contract incumbent vessels in Brazil, the extensions come with three same is happening in Denmark, further one-month options. The with Havila Offshore securing Fanø and Herøy are sister vessels contract extensions for PSVs that were built to the Havyard Havila Fanø and Havila Herøy 832 CD design and delivered in that will keep both vessels 2009-2010. Havila Herøy SEABREEZE 5 OSV RATES & UTILISATION AUGUST 2020 - DAILY NORTH SEA OSV AVAILABILITY PSV 2020 PSV 2019 AHTS 2020 AHTS 2019 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 2020 TYPE AUG 2020 JUL 2020 JUN 2020 MAY 2020 APR 2020 MAR 2020 MED PSV 71% 47% 60% 42% 66% 63% LARGE PSV 61% 55% 63% 50% 58% 74% MED AHTS 56% 48% 41% 38% 51% 38% LARGE AHTS 63% 74% 52% 55% 67% 57% NORTH SEA AVERAGE RATES AUGUST 2020 AVERAGE RATE AVERAGE RATE CATEGORY % CHANGE MINIMUM MAXIMUM AUG 2020 AUG 2019 SUPPLY DUTIES PSVS < 900M2 £7,529 £8,420 -10.58% £2,700 £13,000 SUPPLY DUTIES PSVS > 900M2 £4,175 £10,646 -60.78% £2,500 £10,250 AHTS DUTIES AHTS < 22,000 BHP £32,250 £16,124 +100.01% £13,509 £55,000 AHTS DUTIES AHTS > 22,000 BHP £32,256 £32,237 +0.06% £11,049 £63,743 SPOT MARKET ARRIVALS & DEPARTURES - AUGUST 2020 ARRIVALS - NORTH SEA SPOT DEPARTURES - NORTH SEA SPOT ATLANTIC MERLIN EX CANADA AH VARAZZE MEDITERRANEAN PACIFIC DISPATCH EX CENTRAL AMERICA MANTA MEDITERRANEAN SEA SPARK EX MEDITERRANEAN PRINCESS CANADA * Vessels arriving in or departing from the North Sea term/layup market are not included here.