Consolidation on the Increase in Norway Contents

FEBRUARY 2017 CONSOLIDATION ON THE INCREASE IN NORWAY 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. 11 SUBSEA Seabrokers Chartering AS and Seabrokers Ltd are certified by DNV GL in line with Management System Standard ISO 9001:2008. 14 RENEWABLES 15 RIGS 16 CONUNDRUM CORNER & DUTY PHONES

SHIPBROKING REAL ESTATE

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

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NORTH SEA LAYUP TIME TO CONSOLIDATE IN NORWAY

ACTIVITY DICTATES Stakeholders in the global OSV 33 CSVs, 66 PSVs and 55 AHTS market have long been stating units. Solstad Offshore will MARKET that a great deal of consolidation be the parent company of the is required if owners are to have consolidated “Solstad Farstad” Owners with vessels plying any chance of improving market group. their trade in the North Sea conditions. The oversupply of spot market have encountered tonnage is vast; that cannot be The three parties have indicated mixed results for the first couple questioned. However the market that cost savings of NOK 400-650 of months of 2017. Average PSV is not just saturated in terms of million (USD 47.5-77.2 million) fixture rates are marginally up the number of vessels, but also in per year could be achieved as a on 2016 levels, while average terms of the number of players. result of the merger. This would AHTS rates are well down in be achieved via the “realisation comparison with 2016 (see p.6-7). In Northwest Europe alone, of substantial cost and revenue However, the market dynamics there are roughly 50 different synergies.“ within the spot market over owners with vessels based here. the spring and summer seasons While a handful of these owners The merged entity will also may largely be dictated by the have no active units anymore benefit from the combination willingness and/or ability of vessel (i.e. only laid up tonnage), the of “Solstad’s CSV capabilities; owners to reactivate tonnage from competition for every possible with Farstad’s AHTS experience, layup if it becomes necessary. contract is extremely intense. international presence and long-standing presence in Brazil Offshore activity is projected to That is why many will view and Australia; together with increase in the North Sea over the planned merger of Solstad, Deep Sea Supply’s cost efficient the coming months, with a Farstad and Deep Sea Supply as PSV operating model.” significant number of stacked rigs a positive sign for the industry. due to be reactivated (including This develoment will by no There is no denying that a long, Deepsea Stavanger, ENSCO means act as a panacea for the arduous recovery lies ahead for 122, Island Innovator, Maersk sector, but it is a step in the right OSV owners, however there are Gallant, Maersk Resolute, Ocean direction. It does not remove any some signs (of which this merger Guardian, Paragon B391, Songa tonnage but at least it reduces is one) that a chink of light may Enabler, Stena Spey and West the number of competing parties be appearing at the end of the Phoenix). Some of these units slightly, and each time this is tunnel, with a slight increase are already back in action while achieved it will improve the in tendering activity identified others will be reinstated to the overall market dynamics from an recently as well. Farstad itself active fleet over the next three owners’ perspective. acknowledged in its quarterly or four months. While these results that utilisation and rate reactivations may be counteracted Coming in the wake of Solstad’s levels in the North Sea market by some other rigs coming off prior merger with Rem Offshore, further weakened during the contract, if there is a tangible the new combined entity will final quarter of 2016, however increase in activity then the operate what it claims to be this was tempered with the view impact on spot market rates the “largest company in the that “conditions are projected will depend on the movement high-end global offshore supply to reach a low point over the of support vessels into or out of vessel industry with a fleet of winter season.” Perhaps all hope layup. 154 vessels.” This will consist of is not lost for owners after all.

SEABREEZE 3 OSV MARKET ROUND-UP

FLURRY OF FIXTURES FOR FARSTAD

Farstad has had a positive start to 2017, with the capture of a range of new contracts allowing the owner to reactivate three of its laid up vessels.

In Norway, AHTS vessel Far Sigma is going back into service after she was awarded a one- well firm contract with Lundin Norway AS to support a drilling campaign with semisubmersible Island Innovator.

Meanwhile, two of Farstad’s 3.5 months (including mobili- UK sector extended for at least PSVs which had been laid up sation time) to support a field four more months; while Petro in Norway have recently been development project. Services, with end client Total, reactivated after work was has awarded PSV Far Starling secured for them offshore Egypt. Meanwhile, PSV Far Spica a one-month firm contract to The Far Server and Far Serenade (pictured c/o O Halland) has had support a “ready for operation” have been chartered for at least her contract with ENGIE in the campaign in Congo. FAIRFIELD TIES UP TWO In addition to the fixtures above, Edda Fram. Both contracts are Farstad has also been awarded a for work in the UK sector with 12-month contract for PSV Far commencement in April. The Far Symphony with Fairfield Betula Symphony will support Fairfield’s Limited. This charter comes with P&A campaign with Transocean six additional one-month options. semi Sedco 712 at the Osprey and Fairfield has also just awarded an Merlin fields, while the Edda Fram 18-month plus 3-month option (pictured c/o D Dodds) will provide contract to Østensjø Rederi PSV support at the Dunlin platform. APACHE DEALS FOR DESS Deep Sea Supply has secured been scheduled to conclude their long-term contract extensions for commitments in March and July two of its Ulstein PX 105 PSVs. 2018 respectively. In relation to The Sea Forth and Sea Flyer this, Apache has also recently (pictured c/o D Dodds) have had added a third Deep Sea Supply their charters with Apache North PSV (Sea Tantalus) to its North Sea Ltd extended until January Sea fleet after the award of a 1, 2020. They had previously six-month firm contract.

4 SEABREEZE OSV MARKET ROUND-UP

STATOIL TIES UP EMERGENCY RESPONSE COVER

Statoil has awarded four long- term ERRV contracts with a total value, including options, of NOK 2.7 billion (USD 320 million). The vessels chartered will form part of Statoil’s area-wide emergency response cover on the Norwegian continental shelf.

Simon Møkster Shipping was the recipient of three of the contracts, for the Stril Poseidon (pictured), Stril Merkur and Stril Herkules, while Havila Shipping picked up a fixture for the Havila Troll. All four units are already working for Statoil under prior commitments. one-year options available. The Stril Herkules; and November new terms will start in July 2018 2017 for the Havila Troll, each All of the contracts are for a firm for the Stril Poseidon; December upon the conclusion of their prior period of seven years, with five 2018 for the Stril Merkur and contracts. TOTAL TAKES AURORA FOR SHETLAND WORK Solstad Offshore has secured a to commencing this charter in contract in the UK sector that February, the Normand Aurora has enabled it to reactivate PSV had been laid up in Norway for Normand Aurora from layup. the last couple of months.

The vessel was awarded a 90- Total is using the Aurora to day firm contract with Total E&P provide support for its drilling UK Ltd, with three further one- campaign with Seadrill semi month options available. Prior West Phoenix west of Shetland.

TWO PSVS BACK WITH PETERSON Peterson has awarded new term work in the southern sector of contracts that will see two PSVs the North Sea. Both vessels have reactivated from layup. been laid up in Norway since they concluded prior commit- Myklebusthaug and Island ments with Peterson in 2016. Offshore were the recipients of one-year plus options contracts The Dina Merkur is a UT 755 LC for the Dina Merkur (pictured) PSV, while the Island Endeavour and the Island Endeavour to is a UT 755 LN PSV.

SEABREEZE 5 OSV RATES & UTILISATION

FEBRUARY 2017 - DAILY NORTH SEA OSV AVAILABILITY PSV 2017 PSV 2016 AHTS 2017 AHTS 2016 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 RATES & UTILISATION

NORTH SEA SPOT AVERAGE UTILISATION FEBRUARY 2017 TYPE FEB 2017 JAN 2017 DEC 2016 NOV 2016 OCT 2016 SEP 2016 MED PSV 78% 73% 62% 58% 66% 60% LARGE PSV 82% 77% 85% 86% 76% 76% MED AHTS * 30% 22% 28% 34% 42% 51% LARGE AHTS * 53% 59% 31% 50% 50% 65%

NORTH SEA AVERAGE RATES FEBRUARY 2017 AVERAGE RATE AVERAGE RATE CATEGORY % CHANGE MINIMUM MAXIMUM FEB 2017 FEB 2016 SUPPLY DUTIES PSVS < 900M2 £8,428 £4,286 +96.64% £3,900 £20,000

SUPPLY DUTIES PSVS > 900M2 £6,777 £4,659 +45.46% £3,500 £12,980 AHTS DUTIES AHTS < 22,000 BHP * £7,833 £30,615 -74.41% £6,500 £9,000 AHTS DUTIES AHTS > 22,000 BHP * £15,789 £26,746 -40.97% £7,000 £43,269

* Editorial Note: As of January 2017, the cutoff point we use to differentiate between medium and large AHTS vessels was raised from 18,000 bhp to 22,000 bhp. The historic day rates for 2016 have been amended to reflect this change, so the year-on-year comparisons are accurate. However, the utilisation figures for Sep 2016 - Dec 2016 still show AHTS utilisation figures using 18,000 bhp at the cutoff point. SPOT MARKET ARRIVALS & DEPARTURES FEBRUARY 2017

ARRIVALS - NORTH SEA SPOT DEPARTURES - NORTH SEA SPOT SKANDI SOTRA MEDITERRANEAN

* 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£12,500

PSVs < 900m² £10,000 All Cargo Runs £30,000 £7,500 £20,000 £5,000 £10,000 £2,500

£- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2016 £5,975 £4,286 £4,183 £3,992 £7,349 £10,051 £7,203 £4,533 £3,746 £5,695 £4,870 £4,871

2017 £5,958 £8,428 £- £- £- £- £- £- £- £- £- £-

£15,000£12,500

PSVs <> 900M²900M2900m² £10,000

£10,000 £7,500 £5,000 £5,000 £2,500

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

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

£50,000 AHTS Rig > Moves22,000 bhp £40,000 £30,000 £20,000

£10,000

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

£25,000£30,000 Average DayAverage Rates Day To MonthRates To(February Month 2017)(June 2013) £25,000 £20,000 £20,000 £15,000 £15,000 £10,000 £10,000

£5,000

£- PSVs < 900m² PSVs > 900m² AHTS < 22,000 bhp AHTS > 22,000 bhp 2016 £5,998£5,047 £5,397£4,752 £19,734£25,741 £22,688£28,522 2017 £7,143£- £6,292£- £11,977£- £16,059£-

SEABREEZE 7 FEATURE VESSEL

LOUIS DREYFUS SOV

Louis Dreyfus Armateurs (LDA) has ordered a Salt Ship designed SOV from Cemre Shipyard in Turkey. The vessel will be chartered for work on DONG Energy’s wind farms following delivery in the fourth quarter of 2018.

DONG will utilise the newbuild via a specially designed daughter SOV for O&M work on German craft during good weather condi- offshore wind farms Borkum tions or gangway in heavy seas. Riffgrund 1 and 2, as well as Gode Wind 1 and 2. LDA has opted for a hybrid LOUIS DREYFUS SOV SPECS: propulsion system using a diesel The 83-metre long vessel will be engine and batteries to both limit Overall Length: 83.0 metres equipped with a dynamic motion the ship’s environmental impact Moulded Breadth: 19.4 metres compensated gangway system, and reduce its operating costs. Depth Moulded: 7.0 metres accommodation facilities for 90 Max Draft: 5.0 metres persons, and unique on-board The growing renewables indus- Propulson: Diesel electric logistic solutions. try represents an increasingly Dynamic Class: 2 important market and does not Accommodation: 90 persons The newbuild will have accom- just see Salt Ship enter the Motion Compensated Crane: 1t modation for a minimum of 60 offshore wind sector but also sees Daughter Craft: 8 technicians technicians, in addition to the Louis Dreyfus Armateurs expand Designer: Salt Ship crew. The technicians will be its fleet and services for the Yard: Cemre Shipyard, Turkey transferred to the wind turbines renewables industry.

8 SEABREEZE OSV NEWBUILDINGS, S&P

ICEBREAKING SUPPLY VESSEL NAMED IN FINLAND The Arctech Helsinki Shipyard three (Fedor Ushakov, Mikhail in Finland held a naming Lazarev and Stepan Makarov) ceremony in late January for a to be built as icebreaking newbuild icebreaking supply standby units.The vessels will vessel it has built for Sovcomflot. be used by the Sakhalin Energy The Gennadiy Nevelskoy, named Investment Company for the after a famous explorer of the year-round delivery of supplies Russian Far East, is the first and consumables to platforms of four vessels being built for offshore eastern Russia, and for Sovcomflot, with the remaining emergency response duties. DETROIT BRASIL DELIVERS STARNAV HYDRA The Detroit Brasil Shipyard in The Starnav Hydra has a length Itajaí has delivered newbuild of 90m and a deadweight in PSV Starnav Hydra to Starnav excess of 5,000 tons. She was Serviços Marítimos Ltda. ordered by Starnav following The vessel (pictured c/o J the sixth round of Petrobras’ Hernandez) was built to the Prorefam fleet renewal process, GPA 688 SC design, meeting the and has been chartered by the requirements for Petrobras’ PSV operator for a firm period of 4500 criteria. eight years. BRAM OFFSHORE WELCOMES MR ALDO Newbuild PSV Mr Aldo has been Similar to the Starnav Hydra delivered in Brazil to Bram (above), she was also ordered in Offshore, an Edison Chouest the wake of the sixth round of company. Petrobras’ Prorefam process, and Built at Estaleiro Navship in she has been contracted by the Navegantes, Mr Aldo has a operator for an eight-year firm length of 92.6m, a breadth of plus eight-year option contract. 18.3m and a draft of 6.5m. POTTER TIDE DELIVERED IN THE STATES IHS-Petrodata reports that PSV LTs and is capable of carrying Potter Tide has been delivered more than 17,600 barrels of liq- in Louisiana, USA, by Leevac uid mud. The vessel is powered Shipyards. by four Caterpillar 3516C diesel The Potter Tide was built to the propulsion generator sets. LDS 300 DE design, giving her Leevac Shipyards was acquired a length of 300ft (91.4m) and by Gulf Island Fabrication, Inc breadth of 62ft (18.9m). She has for a consideration of USD 20.0 a deadweight capacity of 5,400 million early in 2016.

SEABREEZE 9 OSV NEWBUILDINGS, S&P

FIRST MAERSK STARFISH AHTS ON SEA TRIALS The first of six newbuild AHTS of 25m and bollard pull of more vessels being built for Maersk than 230 tonnes. The first vessel is Supply Service has been sent out equipped with an ROV and built- on sea trials by the Kleven Verft in control room. After delivery, Shipyard in Norway. Built to the she will go to work for Maersk Oil SALT 200 design, the “Starfish” at the Janice decommissioning vessels have a length of 95m, beam project in the North Sea. DOF ADDS TWO OLYMPIC VESSELS TO ITS FLEET A Norwegian limited company has at a price corresponding to the AHTS Olympic Hera, meanwhile, agreed to purchase the Olympic outstanding debt (roughly 50-60% will be renamed Skandi Hera. Commander and Olympic Hera of historical build costs). The Com- (pictured) from Olympic Shipping. mander will be renamed Skandi In turn, DOF has agreed to man- Darwin, and will be used by DOF age the vessels for the new owner, for its Prelude IMR contract with with an option to purchase them Shell offshore Australia. The OLYMPIC POSEIDON BECOMES SAYAN CLOUDBERRY In addition to the Commander operational, technical and and Hera, Olympic Shipping has crewing management performed also sold AHTS vessel Olympic by Hoyland Offshore. Sevnor Poseidon to the Sevnor Group. intends to upgrade the vessel The Poseidon (pictured c/o to UK Standby Class with ROV F Adolfsen) will be renamed capabilities, while her AHTS the Sayan Cloudberry, with features will remain intact. DOF SELLS WAVENEY OUT OF MARKET DOF has sold its PSV Skandi mid-March once the vessel has Waveney to a company outside concluded its current contract of Norway that is not engaged in with Peterson in the southern the offshore oil service industry. sector of the North Sea. The Closure of the transaction is Skandi Waveney is a UT 775L scheduled to take place around PSV that was delivered in 2001.

RECENT DELIVERIES OF NEWBUILD OSVS

NAME TYPE/DESIGN OWNER/ MANAGER COMMITMENT GENNADIY NEVELSKOY ICEBREAKING PSV SOVCOMFLOT RUSSIA MR ALDO 93M PSV EDISON CHOUEST OFFSHORE SOUTH AMERICA POTTER TIDE LDS 300 DE PSV TIDEWATER TBC STARNAV HYDRA GPA 688 SC PSV STARNAV SERVICOS MARITIMOS LTDA SOUTH AMERICA

10 SEABREEZE SUBSEA

SUBSEA MARKET ROUND-UP We have seen a busy start to Unfortunately, there are still from Chiyoda Corporation and 2017 with the level of tendering some difficult times ahead - Subsea 7. activity in the subsea market especially for certain companies, Subject to bankruptcy court increasing dramatically. Seabro- including Emas Chiyoda Subsea, approval, the financing will be kers has had confirmation that who recently filed a petition for made available to support the several service companies have bankruptcy protection at a U.S. Company’s continuing business seen more tenders hitting their court. operations, minimise disruption desk in the first two months of The company, which was only to its worldwide projects and 2017 than they saw throughout established in early 2016 through make necessary operational all of 2016. a merger between Ezra’s Emas changes. This does not mean that all of AMC and Chiyoda, announced A list of creditors include DBS these tenders will be converted that it had, together with several Bank, OCBC bank, Bibby Off- into orders but it is good to see subsidiaries, filed voluntary shore, Standard Chartered Bank, some light at the end of the petitions for reorganisation Technip, GulfMark and Keppel tunnel, even if we are still a long under chapter 11 of the U.S. Shipyard. way off any meaningful recovery Bankruptcy Code to facilitate Prior to the petition, market in rates. the company’s financial and rumours were circling that In February, we have seen a few operational restructuring. Subsea 7 were looking into vessels changing ownership and In connection with the filing, buying Nippon Yusen Kaisha’s additional information on these Emas Chiyoda Subsea has re- 25% stake in Emas Chiyoda sales can be found within this ceived a commitment on up to a Subsea. issue of Seabreeze. USD 90 million financing facility VIKING POSEIDON SOLD agreement to sell the SX121-de- laid-up at Karmsund, Norway signed OCV Viking Poseidon to since the completion of a three- an unnamed buyer. month contract with Siemens The DP3 vessel will be handed Wind Power in September 2016. over to the unnamed buyer in Eidesvik has stated that the sale March 2017. The vessel, which will result in a positive cash has a length of 130 metres, a effect of approximately NOK 180 250-tonne crane and accommo- million after loans have been Eidesvik has entered into an dation for 106 persons, has been repaid. FUGRO SUBSEA TO RETAIN THE SKANDI OLYMPIA Fugro Subsea Services and DOF September. The Olympia has a have signed a new six-month length of 80 metres, one work- contract for the MT6009L class and two inspection class designed vessel Skandi Olympia. ROVS, and accommodation The new contract will com- for 44 persons. She has been mence in March and Fugro on charter with Fugro Subsea has additional options to hold Services since 2009. onto the 2009-built vessel past

SEABREEZE 11 SUBSEA

ALLSEAS CHARTERS THE NORMAND POSEIDON Allseas has entered into an The MT6016 Mk III-designed agreement with Solstad Offshore vessel, which has a length of 94 to charter the 2009-built IMR metres, a 100-tonne crane and support vessel Normand Posei- accommodation for 68 persons, don (ex-REM Poseidon) for three had been laid up since com- years plus two yearly options. pleting operations offshore Abu The contract commenced on Dhabi in early November 2016. March 1. FUGRO PURCHASES THE REM ETIVE Solstad Offshore has agreed to the completion of the existing sell its MT6016-designed IMR contract, and delivery to new support vessel REM Etive to owners will take place during Fugro. the second quarter of 2017. The Fugro will utilise the 2007-built vessel has been operating in vessel to support multiple IMR Southeast Asia for Fugro since contracts in the Asia Pacific December 2007. The sale will around NOK 50 million after region. give a booked profit of NOK 18 repayment of the vessel debt. The sale will be effective upon million and a net cash effect of SKANDI BUZIOS ARRIVES IN RIO The DOF/Technip joint venture bilicals at the operator’s pre-salt newbuild pipelay vessel Skandi fields. Buzios has arrived in Rio de The newly built vessel has a Janeiro, Brazil. length of 151m and is equipped The Vard 3 05-designed vessel with a 650mt pipelay tower, will shortly begin its eight-year accommodation for 120 persons, charter with Petrobras, where it two work-class ROVs and 2,500t will install flowlines and um- and 1,500t carousels below deck. OGA LOOKING FOR P&A PROGRAM VOLUNTEERS With the expected cost facing the achieved through collaborative proved by the end of the second North Sea Basin with regards to working, to stimulate work-shar- quarter of 2017 on the outcome of decommissioning, UK’s Oil and ing campaigns and adopt im- the selected phase to develop the Gas Authority (OGA) is searching proved execution and contracting appropriate scope, timing, and for operators to voluntarily models. objectives for the pilot participate in a multi-operator, Lloyd’s Register has been well plug and abandonment appointed project manager and (P&A) optimisation program. interested parties would have the The objective of the pilot opportunity for a collaborative programme is to demonstrate well P&A program to be executed the cost savings which can be in 2018/19. A decision will be ap-

12 SEABREEZE SUBSEA

HELIX TO JOINTLY MARKET VESSEL tion vessel Skandi Constructor is opportunities. due to expire on April 1, 2017. The Skandi Constructor is The 2009-built vessel is current- equipped with a 350-tonne rated ly laid up in Singapore and Helix tower coupled with a 150-tonne has advised that they will keep AHC deployment winch for their equipment on-board past riserless intervention down to Helix Energy’s charter of the the expiry date of April 1 and 1,500 metres water depth. SX121-designed well interven- will jointly market the vessel for COOPER SELECTS SUBSEA 7 FOR SOLE Cooper Energy has awarded of pipeline, spool and manifold, Prior to this award Cooper Subsea 7 a contract to cover the along with installation of a 64km Energy announced that they Sole gas development project umbilical and the commission- were looking to sanction the offshore Australia. ing of the system. Project man- project in March 2017 with first Under the contract, Subsea 7 agement and engineering will gas expected two years later. will perform a tie-back of the commence immediately from The Sole development plan has Sole well to the onshore Orbost Subsea 7’s office in Perth, with been finalised and is based on a gas plant, including the fabri- offshore operations scheduled to two well subsea development cation and installation of 64km commence in 2018. plan. SIEM HELIX 2 OUTFITTING TOPSIDES Siem Offshore’s Salt 307-designed of 158 metres, 250-tonne subsea to acceptance tests by the operator. Well Intervention vessel Siem crane and accommodation for 150 Helix Energy Solutions has both Helix 2 is undergoing topside persons, is expected to commence vessels on charter for an initial installation at Huisman Equip- its four-year firm contract with seven-year period with options to ment’s Schiedam facility in the Petrobras during the fourth quar- extend for up to 22 years. Netherlands. ter of 2017. The sister vessel, Siem Huisman will install the well Helix 1, is expected to commence intervention tower during its stay. its four-year charter with Petro- The newbuild, which has a length bras around late Q1 2017, subject CENTRICA DELAYS FOGELBERG Centrica’s development option June 30, 2019 and if the plan is solution will consist of three of its Fogelberg discovery off not submitted by this deadline, subsea wells tied to the Åsgard Norway will be via subsea con- Norway’s Ministry of Petroleum B gas and condensate processing nection to the nearby Åsgard B and Energy said the license will platform, which is 16.5km away processing platform. lapse. from Fogelberg. The gas will be Following this decision the Originally the plan was expected transported through the Åsgard operator has decided to postpone to be submitted in 2018 with Transportation System (ATS). It the submission of the devel- production planned to start in has been reported in the press opment plan until 2019. The 2021. that the delay is due to lack of development plan is now due by The planned development capacity in the ATS before 2021.

SEABREEZE 13 RENEWABLES

SOUL CONCEPT HITS THE WIND FARM MARKET jack-up vessel design, the SOUL, is currently used to install 6-MW developed with the installation wind turbines. of current 6-8MW wind turbines The SOUL series will come in but also next-generation 10- various sizes, allowing the trans- 12MW wind turbines in mind. port of up to six of the 10-12MW The SOUL’s kite-shaped hull and wind turbines, and all loading cruciform structure allows for the and installation operations can be SeaOwls and Ulstein have teamed installation of 10-12MW wind performed without the need of up and launched a new heavy lift turbines in the same timeframe as ballast water. SIDDIS MARINER TO REPLACE SIEM MARLIN Siem Contractors have This is in relation to the walk-to- charter period by up to three confirmed that Ocean Breeze work vessel charter agreement additional years. Energy will replace the MT6017 Siem was awarded in March Mk II-designed IMR vessel 2016, with the contractor uti- Siem Marlin (pictured), which lising both the 2009-built Siem is currently operating on the Marlin and the 2011-built Siddis BARD Offshore 1 wind farm, Mariner to cover the firm 700- with the VS485-designed PSV day contract. Siddis Mariner during the first The original contract also quarter of 2017. included options to extend the WAVEMASTER 1 ON TRACK FOR MARCH DELIVERY positioned class 2 Bibby Wave- equipped with an Uptime mo- master 1 in late March. tion compensated access system Once the first ever Damen (walk-to-work), located in the deigned SOV is launched it centre of the ship and a Comfort is scheduled to arrival in the Class 2 standard accommodation Southern North Sea from comprising 60 individual berths. mid-August. The newbuild is currently Damen Shipyards Galati is on The Bibby Wavemaster 1 has uncommitted upon delivery. schedule to launch the dynamic a length of 89.65 metres and is NEW SOLUTION FOR FOUNDATION INSTALLATION Boskakis, DDC and Barge the development of a modular to continue throughout the Master have teamed up to de- solution to outfit Barge Master’s winter irrespective of waves velop a new solution for subsea T700 motion compensation and swell. It took less than two drilling from a floating barge platform onto a floating barge. weeks for the mobilisation of when installing foundations on The drill rig was situated over this setup. The 3D compensat- a wind turbine on an unnamed the aft of the barge, and by ed crawler crane lowered and project. compensating the 3D motions positioned the 70-tonne drill bit The coming together resulted in of the barge, this allowed work into location.

14 SEABREEZE RIGS

INACTIVE RIGS NORTHWEST EUROPE OIL PRICE VS RIG UTILISATION NAME TYPE STATUS 100% $60 BORGLAND DOLPHIN SS WARM STACK BORGSTEN DOLPHIN TR COLD STACK 90% $56.00 $55 BORR DRILLING RAN JU COLD STACK 83.1% 82.3% $54.89 $54.07 78.6% BREDFORD DOLPHIN SS COLD STACK 77.1% 77.6% 78.4% 76.8% 80% 76.0% 75.6% $50 75.1% 74.3% 74.8% 74.4% BYFORD DOLPHIN SS WARM STACK $49.73 COSLINNOVATOR SS WARM STACK $47.13 $48.48 70% $46.14 $46.19 $46.44 $45 72.9% $45.07 COSLPIONEER SS WARM STACK 68.2% 69.2% 68.0% DEEPSEA METRO II DS COLD STACK $42.25 66.3% 60% 64.6% $40 DEEPSEA STAVANGER SS WARM STACK $39.07 60.5% 57.4% 57.7% ENERGY ENDEAVOUR JU COLD STACK 55.0% 50% 53.3% $35 ENERGY ENHANCER JU COLD STACK 51.6% 52.3% $33.20 ENSCO 70 JU COLD STACK 40% $30 ENSCO 102 JU WARM STACK 39.5% 33.5% 33.3% 33.2% 38.9% 38.8% 37.8% ENSCO 120 JU WARM STACK 36.8% 36.0% 35.4% 35.1% 35.2% 35.1% 30% $25 ENSCO 122 JU WARM STACK Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 GSF GALAXY II JU COLD STACK Average Brent Crude US$ / Bbl Northwest Europe Rig Utilisation South America Rig Utilisation US Gulf Rig Utilisation GSF GALAXY III JU COLD STACK GSF MONARCH JU COLD STACK GSP SATURN JU COLD STACK NOBLE JACKUP FOR CANADA P&A CAMPAIGN MAERSK GALLANT JU WARM STACK ExxonMobil has contracted years to complete, with the rig MAERSK GIANT JU WARM STACK jackup Noble Regina Allen for commanding a day rate of USD MAERSK INSPIRER JU WARM STACK MAERSK REACHER JU WARM STACK a 22-well plug & abandonment 88,500. Operations are due to MAERSK RESOLUTE JU WARM STACK programme offshore Canada. commence in the fourth quarter MAERSK RESOLVE JU WARM STACK OCEAN GUARDIAN SS WARM STACK The campaign, at the Sable of 2017 or first quarter of 2018 OCEAN NOMAD SS COLD STACK project offshore Nova Scotia, following the rig’s mobilisation OCEAN PRINCESS SS COLD STACK is expected to take up to two from Northwest Europe. OCEAN VANGUARD SS COLD STACK PARAGON B391 JU WARM STACK PARAGON C461 JU WARM STACK JAPANESE RIG FOR RUSSIA CAMPAIGN PARAGON C462 JU COLD STACK Gazpromneft Sakhalin has Sea of Okhotsk offshore eastern PARAGON C463 JU COLD STACK PARAGON C20051 JU WARM STACK chartered semisubmersible rig Russia, with drilling to take PARAGON C20052 JU COLD STACK Hakuryu 5 from Japan Drilling place during the 2017 summer PARAGON HZ1 JU WARM STACK to drill its first prospecting and season. Ayashsky forms part of PARAGON MSS1 SS WARM STACK POLAR PIONEER SS COLD STACK appraisal well on the Ayashsky the Sakhalin-3 project, close to ROWAN GORILLA VI JU WARM STACK block offshore Russia. The the developed Sakhalin-1 and ROWAN NORWAY JU WARM STACK Ayashsky licence is located in the Sakhalin-2 projects. ROWAN STAVANGER JU WARM STACK SEDCO 711 SS COLD STACK SEDCO 711 SS WARM STACK RIG UTILISATION AND DAY RATES SEDCO 714 SS COLD STACK SERTAO DS WARM STACK FEB FEB FEB FEB FEB UTILISATION SONGA DEE SS WARM STACK 2017 2016 2015 2014 2013 SONGA DELTA SS WARM STACK NORTHWEST EUROPE 53.3% 72.9% 93.6% 98.9% 97.2% SONGA TRYM SS WARM STACK SOUTH AMERICA 75.6% 83.1% 92.8% 96.4% 97.8% STENA DON SS WARM STACK US GULF 33.2% 38.9% 53.3% 71.7% 70.3% STENA SPEY SS WARM STACK SWIFT 10 JU WARM STACK RECENT DAY RATE BENCHMARKS LOW (USD) HIGH (USD) TRANSOCEAN BARENTS SS WARM STACK TRANSOCEAN PROSPECT SS COLD STACK UK HARSH HIGH SPEC JACKUPS 75,000 100,000 TRANSOCEAN SEARCHER SS COLD STACK UK HARSH STANDARD SEMISUBS 100,000 115,000 WEST ALPHA SS COLD STACK NORWAY HARSH HIGH-SPEC SEMISUBS 170,000 175,000 WEST EPSILON JU COLD STACK US GULF 300FT+ JACKUPS 40,000 60,000 WEST HERCULES SS COLD STACK WEST NAVIGATOR DS COLD STACK GLOBAL ULTRA-DEEPWATER SEMISUBS 240,000 308,000 WEST VENTURE SS COLD STACK GLOBAL ULTRA-DEEPWATER DRILLSHIPS 170,000 225,000 WILHUNTER SS COLD STACK

SEABREEZE 15 CONUNDRUM CORNER, DUTY PHONES

NEW SEABROKERS EMPLOYEES THE SEABREEZE ARCHIVE

The Seabrokers Group is delighted to announce the For the current or archive copies of Seabreeze go strengthening of our shipbroking team with the to: http://www.seabrokers.co.uk/ - see under addition of two new employees in Stavanger, and Shipbroking / Market Reports. If you wish to the relocation of one of our experienced brokers. Subscribe or Unsubscribe please contact: [email protected] In Stavanger, Aleksander Kjoenneroed and Sturla Hansen have joined as new brokers with a focus on the Subsea and Renewables markets. Both Aleksander and Sturla are naval architects who SEABROKERS GROUP CONTACTS studied at the Norwegian University of Science and Technology; prior to joining Seabrokers, they SEABROKERS HEAD OFFICE Forusbeen 78 - 4033 Stavanger - Norway both worked for Subsea 7 for several years. Tel: (+47) 51 80 00 00 Internet: www.seabrokers-group.com Meanwhile, Steve Dimbleby will be returning to Aberdeen from Singapore. Steve has been repre- SEABROKERS CHARTERING AS - STAVANGER Duty Telephone ++47 51 815400 (24 Hrs) senting Seabrokers in Singapore for around five E-mail [email protected] years but will be resuming his duties in Aberdeen from March. Steve will initially be concentrating SEABROKERS LTD - ABERDEEN on Special Projects. Duty Telephone ++44 1224 747744 (24 Hrs) Duty Mobile ++44 7802 304129 E-Mail [email protected]

CONUNDRUM CORNER SEABROKERS BRAZIL LTDA - RIO DE JANEIRO Duty Telephone ++55 21 3505 4200 (24 Hrs) E-mail [email protected] The answer to last month’s teaser :- A hotel bag boy is asked to cover the front desk. Three men SEABROKERS PTE LTD -SINGAPORE arrive, and the bag boy says it is $10 each for the Telephone ++65 6224 6062 or 0951 night. They pay $30. The manager returns and tells E-mail [email protected] the boy that the men should only have paid $25, so SECURALIFT AS - STAVANGER he gives the bag boy $5 to refund them. The boy Telephone ++47 51 800000 can’t split $5 so he gives $1 back to each and keeps HEADINGE-mail [email protected] $2. That means the 3 guests paid $9 each, plus the $2 the bag boy kept. But 9 x 3 = 27... plus the $2 = QuiatisSEA SURVEILLANCE imaximilitem AS num - BERGEN enis porum ne dolles Telephone ++47 55 136500 $29. Where is the last dollar? quiE-mail rerum id min [email protected] dolo quo conet il id quisto que voluptatus eatis re ventur? Hilibust The answer:- The men have paid $27 (9 x 3), of quisSEABROKERS as mincias EIENDOM peribustis AS -qui STAVANGER dolorit officatus which the hotelier has $25 and the bag boy has $2. autTelephone preiumquas qui ++47 iuscimu 51 800000 sapelest, esto odio. E-mail [email protected] They each have $1 refunded = $3... so 25 + 2 + 3 = Itatecum cus acerum ipidunture corporpores et int 30. faccumSEABROKERS remperi SERVICES onsequi AS - STAVANGER Telephone ++47 51 800000 This month, our poser is as follows: E-mail [email protected] SEABROKERS ENTREPRENØR SERVICE AS - STAVANGER This word I know? Six letters it contains. Take Telephone ++47 51 800000 away the last... and only twelve remains. What is E-mail [email protected] the word? SEABROKERS KRAN & TRANSPORT AS - STAVANGER Telephone ++47 51 800000 E-mail [email protected] 16 SEABREEZE