Mero 3 Project Gets Go-Ahead in Brazil Contents

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.

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

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.

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 £4,650 £7,529 £- £- £- £-

£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 £4,310 £4,175 £- £- £- £-

£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 £16,961 £32,250 £- £- £- £-

£40,000 £35,000 AHTS > 22,000 Rig Moves bhp £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 £18,132 £32,256 £- £- £- £-

£25,000 Average Day RatesAverage To MonthDay Rates (August To Month 2020) (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£10,354 £11,873£11,681 £20,992£20,485 £21,687£23,475 2020 £5,850£5,894 £6,064£5,460 £15,599£18,919 £14,760£17,572

SEABREEZE 7 FEATURE VESSEL

SBM INSTALLER

SBM Offshore has purchased the 75% share in the DSV SBM Installer, which it sold to Ocean Yield for USD 150 million in 2014, for USD 30 million.

The transaction is expected to As part of the deal to sell a share close around the end of the third in the unit’s ownership to Ocean quarter of this year and remains Yield in 2014, SBM also entered subject to final documentation into a contract to bareboat and approvals. Ocean Yield has charter the vessel on a fixed rate indicated the deal will have no contract until December 2026. SBM INSTALLER SPECS: significant profit and loss effects Design: MT 6024 in the third quarter. The 111m vessel was delivered Builder: Keppel Singmarine by Keppel Singmarine in 2013. Delivered: 2013 SBM Offshore already owned the She has a 12-man saturation LOA: 111.2m remaining 25% share in the MT dive system, a 275t knuckle Breadth: 25.0m 6024-designed vessel. Now with boom crane, a 150t active heave Crane: 275t full ownership, the company compensated SWL winch and a Accommodation: 100 persons will have more flexibility to try 200t SWL double-drum winch. Dynamic Positioning: Class 3 and offload the 2013-built unit The DP3 vessel is also equipped Total Deck Area: 1,390m² since it operates in a non-core with two work-class ROVs and a Main Winch: 200t market for SBM. double-decked design feature. ROVs: 2 x work-class

8 SEABREEZE NEWBUILDS, CONVERSIONS, S&P

TRIO COMPLETE FOR SEACOR Seacor Marine has accepted this year. The vessels were built delivery of the Seacor Atlas from to the UT 771 CDL design. They the COSCO Zhoushan Shipyard were originally ordered as part in China. The Atlas is the final of a four-PSV deal for the East PSV in a series of three that Sunrise Group but only one unit the yard had been building for was delivered to the intended Seacor, with the Seacor Alps owners. The other three were delivered last October and the acquired by Seacor in January Seacor Andes delivered in May 2019 for around USD 46 million. Seacor Atlas DOF SELLS DUO DOF recently completed the sale entered into an agreement with of the Skandi Giant AHTS to an a shipyard in Turkey to sell the undisclosed international buyer, 37 year-old PSV Skandi Hav understood to be Hai Duong for recycling. Delivery to the Maritime in Vietnam. The yard is expected to take place in 2002-built vessel had been laid September. The Skandi Hav is up in Singapore for several years currently based in Gran Canaria prior to the sale. having concluded her final Skandi Giant (pictured c/o D. Dodds) Separately, DOF has also recently charter in Brazil earlier this year. HERMITAGE SELLS AHTS PAIR Shortly before filing for Chapter sale of the vessels has released 11 bankruptcy protection in the Hermitage from all remaining USA, Hermitage Offshore sold obligations under a USD 9 the only two AHTS vessels in million loan from DVB Bank, its fleet to an undisclosed buyer. with the company recording The 2009-built Hermit Baron a loss of USD 4 million on the and Hermit Brilliance have both transaction. The Hermit Baron primarily worked in West Africa and Brilliance are 68m vessels during their time in service. The with a bollard pull of circa 150t. Hermit Brilliance (pictured c/o Igor) SWIRE PACIFIC PARTS WITH P CLASS PAIR Swire Pacific Offshore has the Qingdao Qianjin Shipyard in reportely sold a couple of its P China but she has spent most of Class AHTS vessels recently. The her time in service working in Pacific Petrel, which is currently the Middle East. in the UAE, has been sold to Meanwhile, the Pacific Parakeet new Egyptian owners. The nine has reportedly been sold to year-old vessel was initially Prantik Singapore Pte, with this based in Southeast Asia for a 15 year-old vessel renamed as Pacific Petrel (pictured c/o A. Pogodin) spell following her delivery from the Prantik Sarwar.

SEABREEZE 9 NEWBUILDS, CONVERSIONS, S&P

CLEVER MOVE BY ATLANTIC Atlantic Offshore has sold the Global Offshore Services. The Ocean Clever ERRV out of the vessel was originally delivered North Sea market to undisclosed by the Jiangsu Zhenjiang buyers. Formerly known as the Shipyard in China in 2009. Her Shergar, the Ocean Clever was earlier conversion at the Orkov converted from an AHTS vessel Shipyard in Denmark involved into a Class A ERRV in 2017 the addition of dual FRC with Ocean Clever (pictured c/o B. Sortland) after Atlantic acquired her from dual DC capacity.

CHINESE AUCTION FOR BOURBON PSVS Chinese lender ICBC has put result of the auction has yet to six Bourbon Offshore PSVs up be established. The 2008-built for auction as part of the ship vessels are all cold-stacked, owner’s fleet restructuring. The with two in West Africa, two in Bourbon Liberty 101, 104, 106, the Middle East and two in the 107, 108 and 109 were put up for Caribbean. The minimum price sale on the Guangzhou Shipping was set at USD 800,000 per Exchange on August 28th. The vessel. Bourbon Liberty 101 NEW LIFE FOR FORMER K LINE PSV The former KL Arendalfjord PSV the Smøla Viking and her new will soon be reincarnated as an owners Eines are converting her aquaculture support vessel. The at the Vard Langsten shipyard 2004-built vessel was sold by K in Norway for a new role as Line last year although she had a delicing vessel. She will be been laid up for three years prior utilised by Eines at the Lofoten to the sale. She is now known as and Vesterålen islands. KOC AL ZOUR LAUNCHED IN TURKEY The Uzmar Shipyard in Turkey design. The KOC Al Zour could has launched the KOC Al Zour, be utilised for a variety of roles a newbuild Multipurpose Oil when she is not employed in an Spill Recovery Vessel for the oil recovery capacity. In addition Kuwait Oil Company. The 60m to towing or supply duties, she is vessel is the first in the world to also designed to be on standby at be built to the RAmpage 6000 sea for long periods of time.

RECENT DELIVERIES OF NEWBUILD OSVS

NAME TYPE/DESIGN OWNER / MANAGER COMMITMENT

SEACOR ATLAS UT 771 CDL PSV SEACOR MARINE TBC

10 SEABREEZE SUBSEA

SUBSEA MARKET ROUND-UP In light of the Mero 3 investment growth this time round with DOF Subsea has recently decision detailed on page 3, a total of seven FPSOs due to secured four new contracts with Brazil has once again become come online by 2025. Operators Petrobras, worth around USD a hot spot for ship owners and are also looking at their options 110 million, covering survey and contractors with an eye on for offshore wind in the region inspection work. The charters improving markets. (more details can be found in the will commence in the fourth renewables section). quarter of 2020 with a duration Some owners may be cautious of around 550 days. after their fingers were burnt Meanwhile, Petrobras is likely during the previous downturn to request revised offers for a DOF will mobilise at least and may be reluctant to return recent tender for ROV support three of its vessels to perform vessels to Brazil having had because the offers submitted inspections of flexible pipeline, contracts terminated in years were higher than expected. The risers and subsea equipment in gone by. However, it looks like rates offered suggest that owners the Campos Basin, Santos Basin, Brazil may be one of the first are showing some confidence in Espírito Santo Basin and in the regions to record significant Brazil. Marlin field. TECHNIPFMC SECURES MERO 2 CONTRACT Petrobras has also recently production, including the water awarded TechnipFMC a contract alternate gas wells. The contract for the Mero 2 project in the also includes the installation and pre-salt layer of the Santos Basin pre-commissioning of service offshore Brazil. flexible lines and steel tube The work scope covers the umbilicals, as well as the towing engineering, procurement, and hook up of an FPSO at the construction, installation and field. The offshore campaign is pre-commissioning of the infield expected to commence in 2022. rigid riser and flowlines for First oil is scheduled for 2023. OOS TIRADENTES TO RESUME OPERATIONS CIMC Raffles Asset Operation platform from early September. OOS Tiradentes had two of her and Management, which This will make the Tiradentes thrusters overhauled to ensure manages the semisubmersible the first accommodation vessel she was ready to return to work accommodation vessel OOS to resume operations since with sustained operational Tiradentes, was notified by activities offshore Brazil were efficiency. Petrobras in early August that earlier suspended. operations were to resume in The 2018-built semi has been the Campos Basin. This follows operating in Brazil for Petrobras a suspension of operations for all since her delivery from the such vessels due to Covid-19. Yantai CIMC Raffles shipyard in The 600-bed semisub will be China and subsequent relocation providing accomodation services to South America. for Petrobras’ P-40 production During her downtime, the

SEABREEZE 11 SUBSEA

NEW OWNERS FOR POLAR KING GC Rieber Shipping has sold the vessel with a 150-tonne active IMR vessel Polar King to Asso heave compensated crane, Subsea. The nine year-old vessel accommodation for 112 persons will be renamed as the Argo and 960m² of deck space. after she completes a one-month Due to the sale, an impairment commercial commitment under of approximately USD 5 million the Polar King name. The vessel is expected to be recognised has been on a long-term charter in GC Rieber’s acounts as per with Nexans Skagerrak since 30.06.2020. The proceeds from January 2017. the sale will be used to repay the The Polar King is an ST 254L-CD vessel’s outstanding debt in full.

FUGRO TO SUPPLY ROVS TO PETROBRAS A partnership between Fugro, five work-class ROVs capable Solstad and Oceanpact have of working in water depths of been awarded three separate up to 3,000m. One ROV spread three-year contracts with will be installed on Solstad’s Petrobras to provide remotely AHTS vessel Far Statesman to operated vehicle (ROV) services carry out anchor handling and for subsea activities off Brazil. other subsea support activities, The three-year contracts come and the remaining ROVs will with an additional one-year be deployed in pairs on two option. vessels operated by Oceanpact to Fugro will provide a total of perform IMR duties. Far Statesman SUCCESSFUL MONTH FOR DOF SUBSEA Seven and the 2011-built OCV DOF an IMR services contract Skandi Skansen. The Skandi to support its North-West Shelf Seven has a length of 120.7m, a and near shore subsea assets. 250-tonne offshore crane and In Southeast Asia, the company accommodation for 120 persons, was awarded a contract for while the Skandi Skansen has a moorings replacement and a length of 107.2m, a 250-tonne recertification project. For these DOF Subsea has secured several offshore crane and a 90-person campaigns, the vessel owner new contracts in the Atlantic accommodation capacity. The will utilise the OCV Skandi region for survey, inspection, work will take place during the Hercules and the DSV Skandi maintenance & repair and third and fourth quarters of Singapore throughout the third decommissioning work. 2020, with a total of more than quarter and early stages of the DOF will deploy a selection of 150 offshore vessel days. fourth quarter of this year. The vessels to undertake the work, Meanwhile, DOF Subsea has also award from Chevron builds including the 2008-built pipelay secured two contract awards upon a previous IMR services vessel Skandi Acergy (pictured), in the Asia-Pacific region. In contract and secures a further the 2008-built OCV Skandi Australia, Chevron has awarded 5-year term under the new deal.

12 SEABREEZE SUBSEA

FUGRO TO UTILISE SOUTHERN OCEAN Bourbon Offshore and with a 250-tonne active heave Oceanteam’s jointly owned compensated crane, 2,400m² of 2010-built OCV Southern Ocean deck space and accommodation has been awarded a contract for 120 persons. She will be with Fugro Australia. Work deployed after her planned class is scheduled to commence in renewal programme which is the fourth quarter of 2020 for currently being executed in around 30 days. Singapore and scheduled for The 137m DP2 OCV is equipped completion in September. OCEAN INSTALLER TO USE NORMAND VISION NEXT YEAR 306L-designed vessel is capable active heave compensated crane, of carrying out the installation accommodation for 140 persons, of subsea structures, umbilicals, a 3,000t underdeck carousel and risers and flowlines. a 150t vertical lay spread system The contract commences during (VLS). the first quarter of 2021 and The vessel has worked on a includes options that could long-term charter for Ocean cover the majority of next year if Installer for most of her time in Ocean Installer has awarded exercised. service after Ocean Installer sold Solstad a contract to utilise the The 2014-built vessel is its 70% share of the vessel to OCV Normand Vision. The Vard equipped with a 400-tonne Solstad in April 2014. HAVILA SUBSEA TO CARRY OUT ROUTE SURVEY Reach Subsea and the MMT and will be conducted during Group have been awarded a the fourth quarter of this year contract with a major European and in 2021. With the addition energy company for a cable of this new contract, Reach has route survey. The contractor now accumulated approximately will utilise the 98m Havyard 1,100 project days (equivalent 885 IMR vessel Havila Subsea, to about 1,800 ROV days) for complete with the Surveyor Q2-Q4 execution, and about 350 Interceptor ROV, for the charter. project days (550 ROV days) for The project will have two phases 2021 execution. SUBSEA 7 SECURES CAMPAIGN OFF TRINIDAD & TOBAGO Subsea 7 recently picked up The campaign offshore Trinidad with flexible flowlines and the another sizeable contract in the & Tobago covers the project associated subsea infrastructure Caribbean market. The company management, engineering, and umbilical system. The classes a sizeable contract as procurement, installation and offshore scope is scheduled to carrying a value between USD pull-in of one subsea rigid take place during 2021. 50 million and USD 150 million. flowline and flexible riser, along

SEABREEZE 13 RENEWABLES

OFFSHORE WIND MOVING AHEAD IN BRAZIL generate up to 4.66GW split Meanwhile, Iberdrola’s Brazilian across two 2.33GW fields subsidiary Neoenergia already dubbed Aracatu 1 and Aracatu has three of its projects in the 2. If the project goes ahead it licensing phase. It is actively will be a gigawatt larger than participating in discussions to the Dogger Bank development define the best regulation to be offshore the UK. adopted for the development Offshore wind developers have The projects will lie off the of offshore wind in Brazilian started to advance plans to neighbouring states of Rio de waters. install several gigawatts of new Janeiro and Espírito Santo in the It is further understood that wind projects offshore Brazil. southeast of Brazil, some 25km Neoenergia’s developments Equinor has applied to the from shore in water depths total 9GW and are split across nation’s federal environment between 15 and 35 metres. Each the waters off the states of Rio agency IBAMA for permission development will consist of up Grande do Sul, Rio de Janeiro to carry out an environmental to 160 turbines. and Ceará. Reports suggest that impact assessment to look into Back in 2018, Equinor signed a the developer is considering the possibility of developing an Memorandum of Understanding 15MW turbine hardware with offshore wind project. (MoU) with Petrobras to jointly rotors up to 245m in diameter Local reports suggest that the develop the offshore wind for the projects. wind developer is looking to energy segment in Brazil. ALPHA VENTUS CALLS FOR NORMAND JARSTEIN The Normand Jarstein will motion compensated gangway shortly mobilise to Siemens and accommodation for 110 Gamesa’s 60MW Alpha Ventus persons. wind farm offshore Germany for Alpha Ventus has six Adwen a month-long campaign. M5000 turbines and six Senvion The 2014-built Normand Jarstein 5M turbines. Solstad’s Normand is an MT 6022L vessel with a Jarstein is under charter with length of 117m. She is outfitted DeepOcean for a minimum with an Ampelmann E 1000 period of 200 days in 2020. SAIPEM LOOKS TO BECOME A DEVELOPER sites, respectively located developing integrated solutions more than 8 and 12 nautical for using renewable energy and miles offshore Ravenna in for producing green hydrogen. Saipem has recently signed a the Adriatic Sea. Saipem has The agreement gives Saipem Memorandum of Understanding stated that innovations such as a new role as a developer of with AGNES and QINT’X to floating solar technology based offshore wind farms. Saipem develop a 450MW wind farm on the proprietary technology is planning to launch similar offshore Italy. The project will of Moss Maritime will be used projects through XSIGHT in consist of 56 turbines on fixed on the site. Saipem’s XSIGHT Sicily and Sardinia using floating foundations at two different division has already begun foundations.

14 SEABREEZE RIGS

OIL PRICE VS RIG UTILISATION INACTIVE RIGS NORTHWEST EUROPE 100% $75 NAME TYPE STATUS $70 BIDEFORD DOLPHIN SS WARM STACK 87.9% 87.9% 90% 87.3% 87.7% 86.7% $65 $65.85 $63.60 83.5% BLACKFORD DOLPHIN SS WARM STACK $62.33 $62.74 81.3% $60 $59.25 $59.37 $55 80% 75.1% 74.2% 74.2% 84.1% BOLETTE DOLPHIN DS WARM STACK 81.3% 81.1% $55.00 $50 $45 COSLINNOVATOR SS WARM STACK 70% 74.0% 73.1% 73.0% $45.10 72.4% 71.8% 72.6% 72.0% 71.4% $42.81 $40 69.6% $39.93 DEEPSEA ABERDEEN SS WARM STACK 64.4% $35 60% 64.6% 63.7% $32.98 62.9% $30 $31.02 ISLAND INNOVATOR SS WARM STACK $25 50% $23.34 $20 MAERSK GALLANT JU COLD STACK 50.8% 50.0% $15 44.7% MAERSK INNOVATOR JU WARM STACK 40% 44.2% 43.2% 43.8% 43.9% 44.0% $10 39.6% 40.3% 38.9% 37.9% 38.0% $5 MAERSK INTERCEPTOR JU WARM STACK 30% $0 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 MAERSK REACHER JU WARM STACK Average Brent Crude US$ / Bbl Northwest Europe Rig Utilisation MAERSK RESILIENT JU WARM STACK South America Rig Utilisation US Gulf Rig Utilisation MAERSK RESOLUTE JU WARM STACK DRILLING RESUMES OFF ANGOLA NOBLE HANS DEUL JU WARM STACK Angola was one of the worst returning, with Total resuming NOBLE HOUSTON COLBERT JU WARM STACK affected offshore markets due to its Angolan drilling campaigns OCEAN VALIANT SS COLD STACK

Covid-19 with drilling activity with both the Deepwater Skyros PAUL B. LOYD, JR. SS HOT STACK grinding to a halt as operations and Maersk Voyager drillships. PROSPECTOR 1 JU WARM STACK were suspended. Total is also planning to resume PROSPECTOR 5 JU WARM STACK Thankfully it appears that a bit operations in the near future RAN JU WARM STACK more normality may now be with the West Gemini. SCARABEO 8 SS WARM STACK QATAR EXTENSION FOR JDC DUO STENA DON SS WARM STACK The North Oil Company in Qatar field for at least one more year. SWIFT 10 JU COLD STACK has extended its contracts with The rigs are now committed TRANSOCEAN ARCTIC SS COLD STACK two Japan Drilling Company until at least February 2022 and TRANSOCEAN LEADER SS COLD STACK jackups. Via the exercise of September 2021 respectively. VALARIS JU-100 JU COLD STACK option periods, the Hakuryu-10 The North Oil Company is a VALARIS JU-101 JU COLD STACK and Hakuryu-12 will continue joint venture between Total and VALARIS JU-121 JU WARM STACK working at the Al Shaheen oil Qatar Petroleum. VALARIS JU-123 JU WARM STACK RIG UTILISATION AND DAY RATES VALARIS JU-248 JU WARM STACK VALARIS JU-249 JU WARM STACK AUG AUG AUG AUG AUG UTILISATION 2020 2019 2018 2017 2016 WEST ALPHA SS COLD STACK

NORTHWEST EUROPE 63.7% 75.1% 67.4% 59.4% 60.5% WEST BOLLSTA SS WARM STACK

SOUTH AMERICA 81.3% 72.4% 60.5% 68.8% 74.8% WEST EPSILON JU COLD STACK

US GULF 38.0% 50.8% 48.0% 34.0% 34.4% WEST LEO SS COLD STACK

RECENT DAY RATE BENCHMARKS LOW (USD) HIGH (USD) WEST NAVIGATOR DS COLD STACK UK HARSH HIGH SPEC JACKUPS 70,000 80,000 WEST PEGASUS SS COLD STACK NORWAY HARSH HIGH SPEC JACKUPS 253,000 280,000 WEST TAURUS SS COLD STACK

UK HARSH STANDARD SEMISUBS 140,000 170,000 WEST VENTURE SS COLD STACK

GLOBAL ULTRA-DEEPWATER SEMISUBS 140,000 180,950 WILHUNTER SS COLD STACK GLOBAL ULTRA-DEEPWATER DRILLSHIPS 150,000 455,000 Source: IHS-Petrodata

SEABREEZE 15 CONUNDRUM CORNER, DUTY PHONES

CHAPTER 11 FOR VALARIS THE SEABREEZE ARCHIVE

Following the lead of Diamond Offshore in April For the current or archive copies of Seabreeze go and Noble Corporation in July, Valaris has now to: http://www.seabrokers.co.uk/ - see under become the latest major drilling contractor to file Shipbroking / Market Reports. If you wish to for Chapter 11 bankruptcy protection. Subscribe or Unsubscribe please contact: [email protected] Valaris has entered into a binding Restructuring Support Agreement and Backstop Commitment Agreement with around 50% of its noteholders with the intention of substantially reducing the SEABROKERS GROUP CONTACTS company’s debt load while providing a robust financial platform to take advantage of a longer SEABROKERS HEAD OFFICE Forusbeen 78 - 4033 Stavanger - Norway term market recovery. The agreement would see Tel: (+47) 51 80 00 00 the company’s debt load reduced by more than Internet: www.seabrokers-group.com USD 6.5 billion, with USD 500 million provided via debtor-in-possession (DIP) financing to support SEABROKERS CHARTERING AS - STAVANGER Duty Telephone ++47 51 815400 (24 Hrs) operations throughout the Chapter 11 process. E-mail [email protected]

SEABROKERS LTD - ABERDEEN Duty Telephone ++44 1224 747744 (24 Hrs) CONUNDRUM CORNER Duty Mobile ++44 7802 304129 E-Mail [email protected] Last month’s answer :- SEABROKERS BRAZIL LTDA - RIO DE JANEIRO A train timetable is listed below. What time should Duty Telephone ++55 21 3505 4200 (24 Hrs) E-mail [email protected] the Penzance train depart? SECURALIFT AS - STAVANGER Glasgow 07:12 Telephone ++47 51 800000 Reading 18:05 E-mail [email protected] Norwich 14:15 SEA SURVEILLANCE AS - BERGEN Sheffield 19:08 Telephone ++47 55 136500 Penzance ? HEADINGE-mail [email protected]

The answer was :- 16:05 (the alphabetical value QuiatisSEABROKERS imaximilitem EIENDOM num AS - STAVANGERenis porum ne dolles Telephone ++47 51 800000 of the first letter gives the hour; the value of the quiE-mail rerum id min [email protected] dolo quo conet il id second letter gives the minutes). quisto que voluptatus eatis re ventur? Hilibust quisSEABROKERS as mincias SERVICES peribustis AS -qui STAVANGER dolorit officatus This month, our poser is as follows: autTelephone preiumquas qui ++47 iuscimu 51 800000 sapelest, esto odio. E-mail [email protected] Itatecum cus acerum ipidunture corporpores et int 2 ice lollies and 2 choc ices = £2.90 faccumSEABROKERS remperi FUNDAMENTERING onsequi AS - STAVANGER 2 cornettos, 1 choc ice and 1 ice lolly = £3.45 Telephone ++47 51 800000 1 ice lolly and 1 cornetto = £1.60 E-mail [email protected] SEABROKERS HAVNEKRANER AS - STAVANGER How much does a choc ice cost? Telephone ++47 51 800000 E-mail [email protected] Answers back to [email protected].

16 SEABREEZE