More Vessels to Be Sold Or Scrapped As Oversupply Persists Contents

SEPTEMBER 2016 MORE VESSELS TO BE SOLD OR SCRAPPED AS OVERSUPPLY PERSISTS 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]

The Seabreeze Monthly Market Report OUR OFFICES: is distributed worldwide through STAVANGER BERGEN SKIEN our offices in Aberdeen, Stavanger, Singapore and Rio de Janeiro. ABERDEEN RIO DE JANEIRO SINGAPORE

SPOT RATES BACK PETROBRAS RELEASES LATEST STRATEGIC PLAN

BELOW BREAK-EVEN Petrobras has released its 2017- Within its latest Strategic Plan, 2021 Strategic Plan, with a focus Petrobras has indicated that it is IN NORTH SEA on two main indicators. planning to invest a total of USD 74.1 billion over the 2017-2021 Spot rates in the North Sea PSV For the first indicator, Petrobras period, a 25% reduction from the market dropped back below has set a target to reduce its USD 98.4 billion projection that vessel operating costs for many Reportable Accident Rate from had been laid out in its 2015-2019 of September’s fixtures, with 2.2 accidents per one million Strategic Plan. an increase in availability man hours in 2015, to 1.4 over prompting owners to drastically the next two years, and dropping Of the USD 74.1 billion capital reduce their rates. The painful further to 1 accident per one expenditures identified in this sight of fixtures coming in below million man hours in 2021. latest projection, 82% (USD GBP 3,000 (NOK 30,750) was an 60.6 billion) will be allocated all-too-common occurrence. Secondly, Petrobras’ financial to exploration and production target determines that the (E&P). There are now circa 90 PSVs company’s net debt should be laid up across Northwest equivalent to 2.5 times its cash Around two-thirds of Petrobras’ Europe but the market remains generation in 2018. For its 2015 E&P activities will be targeted oversupplied, and this has balance sheet, Petrobras’ net debt at its pre-salt concessions, worsened as we move towards was 5.3 times its cash generation prioritising the development of the winter months. In terms of levels. In order to achieve this, deep-water production with a regional drilling activity, there Petrobras will maintain an focus on strategic partnerships, were 18 less rigs under contract “intense pace of partnerships combining technical competen- in September 2016 (58) than there and divestitures.” cies and technologies. were in September 2015 (76), which was already a reduction of 10 rigs from September 2014 (86), MAERSK TO SPLIT INTO TWO DIVISIONS and there is simply not enough work left to occupy the number A.P. Møller Mærsk A/S is to split listing. Depending on market of vessels in the market. its operations into two distinct developments and structural entities: 1. Transport & Logistics, opportunities, Maersk’s objective There have been some positive and 2. Energy. is to find solutions for its oil and signs recently, with an increase oil related businesses within the in the number of tenders A.P. Møller Mærsk A/S will next 24 months. for future drilling or plug become an integrated transport & abandoment campaigns. and logistics company with The Energy division will consist However, any OSV market digitalised and individualised of Maersk Oil, Maersk Drilling, recovery will be a slow process customer solutions, while the Maersk Supply Service and due to the vast oversupply. company’s oil and oil related Maersk Tankers. Maersk Oil Unfortunately, many vessels may businesses, either individually will focus on optimising and have to be scrapped or sold into or in combination, will all be strengthening its strong position other sectors to bring the market separated from A.P. Møller in the Danish, British and Nor- back into balance in the medium- Mærsk A/S in the form of wegian sectors of the North Sea. term. joint-ventures, mergers or

SEABREEZE 3 OSV MARKET ROUND-UP

DOF VESSELS KEPT BUSY

DOF has secured term contract extensions for a trio of vessels, one in the North Sea, one in North America, and one in South America.

In Norway, Statoil has extended its charter with PSV Skandi Mongstad for one more year, committing the vessel until at least October 2017. The Skandi Mongstad, a VS 495 DEM PSV, has been working for Statoil since her delivery in 2008.

In North America, PSV Skandi Flora (pictured) will continue In Argentina, Total Austral has average EBITDA per day from working for Shell off eastern retained AHTS vessel Skandi the three contracts works out Canada for around six more Møgster for six more months at approximately NOK 40,000- months, occupying her until the from October 2016. DOF has 45,000 (USD 5,023-5,651) per end of the first quarter of 2017. indicated that its assumed vessel. ENQUEST EXTENDS K LINE PSV K Line PSV KL Brisfjord will c/o D Dodds) was built to the continue working for EnQuest STX/VARD PSV 06 CD design in the UK sector into the new and delivered in 2011. She has year, with the vessel’s contract been working for EnQuest recently extended until at least since February 2016, providing January. support to the charterer’s drilling campaign with semisubmersible The KL Brisfjord (pictured rig Transocean Leader. FINARGE VESSELS TOWING TRANSOCEAN RIG TO MALTA Transocean has contracted the the UK sector in August. services of Finarge AHTS vessels A.H. Varazze and A.H. Valletta The A.H. Varazze and A.H. to tow its semisubmersible rig Valletta (pictured c/o O Halland), Sedco 704 from Burghead in the both 19,000 bhp vessels, only UK to Malta. The rig has left the joined the AHTS market in the North Sea market following the North Sea earlier this year. They conclusion of a recent charter are scheduled to conclude the with Independent Oil & Gas in Transocean tow in early October.

4 SEABREEZE OSV MARKET ROUND-UP

MAERSK SUPPLY SELECTED FOR JANICE DECOM SUPPORT

Maersk Supply Service has been awarded a contract with Maersk Oil to provide decommissioning services for the Janice field in the UK sector of the North Sea.

Maersk Supply will assume responsibility for engineering, project planning, and managing the scope of the subsea decommissioning.

The Janice project will employ up to 10 Maersk Supply vessels, including anchor handlers, PSVs and subsea support vessels. As the lead contractor, Maersk Supply has also brought in three work and waste management likely to take until the summer of sub-contractors who will be aspects of the project. Maersk 2018 to complete. supporting the engineering, ROV has estimated that the project is ALLSEAS BRASIL CHARTERS BRAVANTE QUARTET Allseas Brasil has contracted four from November 2016. Bravante Group PSVs on term charters to support pipe-lay The Bravante V, VI, VII and VIII operations offshore Brazil. are 4,500t deadweight vessels built to the STX/VARD SV290 The Bravante V, Bravante VI, design. They were constructed Bravante VII and Bravante VIII by the Eastern Shipbuilding have all been chartered for a firm Group in the USA and delivered period of 130 days plus options in 2013 and 2014. FARSTAD CONCENTRATES AUSTRALIA ACTIVITIES Farstad Shipping has decided around 30 employees. to concentrate its oil service activities in Australia to its Farstad’s Perth office will now Perth office in the west of the facilitate both its Australia country. This will see the closure headquarters and its regional of Farstad’s Melbourne office in operational centre, in addition Victoria, south Australia, and the to the company’s training and owner’s onshore organisation offshore simulation centre. will be reduced from 65 to

SEABREEZE 5 OSV RATES & UTILISATION

SEPTEMBER 2016 - DAILY NORTH SEA OSV AVAILABILITY PSV 2016 PSV 2015 AHTS 2016 AHTS 2015 36 34 32 30 28 26 24 22 20 18 16 14 12 10 8 6 4 2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 RATES & UTILISATION

NORTH SEA SPOT AVERAGE UTILISATION SEPTEMBER 2016 TYPE SEP 2016 AUG 2016 JUL 2016 JUN 2016 MAY 2016 APR 2016 MED PSV 60% 68% 73% 80% 81% 83% LARGE PSV 76% 85% 87% 96% 86% 81% MED AHTS 51% 68% 64% 66% 46% 37% LARGE AHTS 65% 71% 79% 76% 56% 53%

NORTH SEA AVERAGE RATES SEPTEMBER 2016 AVERAGE RATE AVERAGE RATE CATEGORY % CHANGE MINIMUM MAXIMUM SEP 2016 SEP 2015 SUPPLY DUTIES PSVS < 900M2 £3,746 £6,584 -43.10% £2,350 £7,874

SUPPLY DUTIES PSVS > 900M2 £4,548 £5,930 -23.31% £2,000 £8,337 AHTS DUTIES AHTS < 18,000 BHP £11,159 £5,929 +88.21% £9,500 £14,000 AHTS DUTIES AHTS > 18,000 BHP £17,962 £8,809 +103.91% £6,947 £32,421 SPOT MARKET ARRIVALS & DEPARTURES SEPTEMBER 2016

ARRIVALS - NORTH SEA SPOT DEPARTURES - NORTH SEA SPOT BRAGE VIKING EX RUSSIA A.H. VALLETTA MEDITERRANEAN MAERSK BATTLER EX MEDITERRANEAN A.H. VARAZZE MEDITERRANEAN SKANDI SAIGON EX SOUTH AMERICA HIGHLAND ENDURANCE CENTRAL AMERICA HIGHLAND VALOUR CENTRAL AMERICA

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

6 SEABREEZE NORTH SEA AVERAGE SPOT RATES

NORTH SEA AVERAGE SPOT MONTHLY 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 2015 £5,091 £5,389 £3,687 £2,818 £2,478 £3,746 £3,844 £3,752 £6,584 £3,336 £5,211 £8,195

2016 £5,975 £4,286 £4,183 £3,992 £7,349 £10,051 £7,203 £4,533 £3,746 £- £- £-

£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 2015 £6,141 £6,429 £4,886 £3,699 £2,921 £4,455 £4,610 £5,126 £5,930 £3,185 £5,340 £8,106 2016 £4,867 £4,659 £4,104 £4,308 £6,625 £11,365 £7,355 £5,543 £4,548 £- £- £-

£40,000£35,000 AHTS < 18,000 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 2015 £12,541 £10,497 £15,578 £9,332 £13,101 £19,513 £10,783 £8,156 £5,929 £5,148 £6,714 £30,385 2016 £17,294 £23,823 £16,000 £10,983 £6,808 £18,557 £22,986 £12,278 £11,159 £- £- £-

£50,000 AHTS Rig > Moves18,000 bhp £40,000 £30,000 £20,000

£10,000

£- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 £20,863 £16,171 £18,184 £13,617 £19,461 £25,046 £15,113 £12,176 £8,809 £6,035 £9,983 £45,377 2016 £32,234 £27,884 £16,607 £24,405 £13,029 £22,921 £44,098 £18,230 £17,962 £- £- £-

£25,000£30,000 Average Day AverageRates To Day Month Rates (September To Month 2016) (June 2013) £25,000 £20,000 £20,000 £15,000 £15,000 £10,000 £10,000

£5,000

£- PSVs < 900m² PSVs > 900m² AHTS < 18,000 bhp AHTS > 18,000 bhp 2015 £3,902£4,135 £4,767£4,920 £13,617£11,611 £19,343£17,369 2016 £5,998£5,697 £5,397£5,480 £16,401£16,440 £22,718£24,354

SEABREEZE 7 FEATURE VESSEL

LIVING STONE

The DEME Group has celebrated the launch of its multi-purpose vessel Living Stone at the LaNaval shipyard in northern Spain.

The vessel is scheduled for final will be equipped with DP3 delivery during the second station keeping, and she has dual quarter of 2017. Her maiden fuel engines with LNG used as campaign will see her mobilised its prime fuel. She is capable of to the Merkur offshore wind accommodating a crew of up to farm in Germany, where she 100 persons. will install inter array cables at LIVING STONE SPECS: the wind farm. The Living Stone will feature a total loading capacity of 12,500t, Overall Length: 161m The newbuild vessel has also and two large 5,000t cable/ Moulded Breadth: 32m been awarded work to install umbilical carousels which are Max Draft: 6.5m cables at the world’s largest arranged below deck to allow Cargo Deck Area: 3,500m² offshore wind farm, Hornsea for a free deck area of around Accommodation: 100 persons Project One in the UK. 3,500m². This will accommodate Main Crane: 600t the modular cable/umbilical Second Crane: 65t The Living Stone will provide handling systems, remotely Trenching Tool: CBT 1100 support for transport and operated vehicles (ROVs), the Dynamic Positioning: DP3 installation projects, as well as subsea trenching tool CBT 1100 Loading Capacity: 12,500t offshore power cable installa- and the fall-pipe system. A 7.7m Cable Carrousels: 5,000t tions and interconnectors for the by 7.7m moon pool and a 600t Moon pool: 7.7m x 7.7m future European Supergrid. crane for subsea installation and Ship yard: LaNaval removal will also be installed. The Tideway operated-vessel

8 SEABREEZE OSV NEWBUILDINGS, S&P

ALP STRIKER DELIVERED IN JAPAN ALP Maritime has accepted 4,250 tonnes and accommodation delivery of ALP Striker from the for 35 persons. During sea trials, Niigata Shipyard in Japan. the Striker achieved a continuous The ALP Striker is the first of bollard pull of 309.6MT. She has four ultra-long distance towing a maximum speed of 19 knots and anchor handling vessels and a service speed of 13 knots. being built to Ulstein’s SX-157 The second vessel in the series, design. She has a length of 88.9m, ALP Defender, is scheduled for breadth of 21.0m, a deadweight of delivery in November. VROON ADDS CHAMPION TO AHTS FLEET The Fujian Southeast Shipyard four vessels in the series, named in China has delivered AHTS VOS Chance, VOS Character, vessel VOS Champion to Vroon VOS Charisma and VOS Charm, Offshore. This is the second of are all due for delivery later in six sister vessels that Fujian is 2016 or in 2017. building for Vroon to a Khiam The VOS Champion has a length Chuan Marine design, following of 65m, breadth of 16.4m, a deck the delivery earlier this year of area of 425m² and a bollard pull VOS Challenge. The remaining of 85 tonnes. MPFSV DELIVERED TO HARVEY GULF The Eastern Shipbuilding Group total engine power of 9,374 bhp in Florida, USA, has delivered and a bollard pull of 121 short a newbuild multi-purpose field tons. support vessel to Harvey Gulf The Eastern Shipbuilding Group International Marine. is also currently completing the The Harvey Stone was built to Harvey Sub-Sea and Harvey Robert Allan Ltd’s RAmpage Blue-Sea, two sister MPSVs. The 6400 MPFSV design. She has a Harvey Sub-Sea is scheduled for length of 65m, breadth of 18m, delivery before the end of 2016. CHINA-BUILT MUTAWA PSV MOBILISED TO MIDDLE EAST Newbuild PSV Mutawa 306 has depth of 5.5m and a maximum mobilised to the Middle East draft of 4.75m. following her recent delivery The Mutawa 306 has a clear from Guangzhou Shunhai deck area of 329m², deadweight Shipbuilding in China. of 1,400t and a cargo capacity of The vessel was built for UAE- 500t. She has an accommodation based owner Mutawa Marine capacity for 38 persons in a Works. She has a length of combination of 1, 2 and 4-berth 56.2m, a breadth of 13.8m, a cabins.

SEABREEZE 9 OSV NEWBUILDINGS, S&P

AUSTAL DELIVERS CREW TRANSFER VESSEL TO CASPIAN MARINE Austal Limited in western catamaran, featuring DP2 station Australia has delivered an keeping and an Ampelmann Incat-Crowther designed large walk-to-work gangway. She crew transfer vessel to Caspian has a cargo deck area of more Marine Services Limited of than 400m², and can carry 150 Azerbaijan. passengers (plus 16 crew) 400 The Rashid Behbudov is a 70m nautical miles at 30 knots. ROSNEFT SIGNS ICEBREAKING MPSV CONTRACTS Rosneft has signed contracts of vessel to four units. The first with the Far Eastern Shipbuild- two vessels, being built at the ing and Ship Repair Center Zvezda Shipyard in Bolshoi (FESRC) for the construction Kamen in south-eastern Russia, of two more Icebreaker 7 class are due for delivery at the end of multi-purpose supply vessels, 2019 and in the first half of 2020 raising its order for this class respectively. EIDESVIK, FARSTAD AND MAERSK SELL TONNAGE to fleet requirements. an impairment charge of NOK Eidesvik has agreed to sell PSV 11 million (USD 1.4 million) in Viking Nereus, with the trans- its second quarter accounts, the action dependent on the buyer’s sale of the vessel will result in an technical acceptance of the immaterial accounting effect in vessel in the fourth quarter of Farstad’s third quarter results. 2016. Eidesvik will record a NOK Finally, Maersk Supply Service 55 million (USD 6.9 million) has offloaded another vessel, Given the difficult trading impairment loss on the vessel in selling its 1992-built PSV Maersk conditions in the global OSV its third quarter accounts. The Forwarder. Maersk recently market, Eidesvik Offshore, Viking Nereus (pictured) is a announced its intention to Farstad Shipping and Maersk 2004-built UT 755L PSV. reduce its fleet by 20 vessels over Supply Service have entered Meanwhile, Farstad has sold the next 18 months, with the into agreements recently to sell AHTS Lady Sandra, a 1998-built majority to be either recycled or vessels that are deemed surplus KMAR 404 vessel. Following modified for other markets.

RECENT DELIVERIES OF NEWBUILD OSVS NAME TYPE/DESIGN OWNER/ MANAGER COMMITMENT ALP STRIKER ULSTEIN SX-157 AHT ALP MARITIME SERVICES TBC HARVEY STONE RAMPAGE 6400 MPFSV HARVEY GULF INTERNATIONAL MARINE TBC MUTAWA 306 1,400 DWT PSV MUTAWA MARINE WORKS TBC RASHID BEHBUDOV INCAT-CROWTHER ‘OFFSHORE EXPRESS 70’ CTV CASPIAN MARINE SERVICES LTD CASPIAN VOS CHAMPION 65M KCM AHTS VROON OFFSHORE SOUTHEAST ASIA

10 SEABREEZE SUBSEA

SUBSEA MARKET ROUND-UP Det Norske, Aker Solutions USD 332 million worth of con- The scope of the framework and Subsea 7 are to form an tracts in June for the Alvheim contracts has a total potential integrated project management area, including subsea trees value of around NOK 2.8 billion, team under an alliance aimed to Aker Solutions, and subsea of which around NOK 800 at saving time and costs on Det umbilicals, risers and flowlines million is Aker Solutions’ share Norske’s Norwegian subsea (SURF) to Subsea 7, under a and NOK 2 billion is Subsea developments. four-year framework agreement. 7’s portion. These values may Det Norske advised that they Det Norske has stated that the change depending on how much will utilise Aker Solutions’ ex- industry needs to find new, more work the operator calls for under pertise in front-end engineering, sustainable ways of working the contracts. brownfield modifications and on oil and gas developments Overall management of the alli- subsea systems, and Subsea 7’s and that this alliance enables ance will be through a steering capabilities in the engineering, a holistic approach to subsea committee comprised of senior procurement, installation and developments that will promote management from each com- commissioning of subsea umbil- an effective re-use of solutions pany. The project management icals, risers and flowlines (SURF) and best practices across the team will be led by a manager under the agreement. portfolio to significantly save from Det Norske. The alliance follows the award of time and reduce costs. GOLDEN ENERGY TO MANAGE LARISSA & DESPINA Golden Energy Offshore in Lyngdal, Norway. The SX Management has entered into a 131-designed sister vessels are contract with Neptune Subsea 98m in length, and are equipped to manage the 2011-built IMR with DP 2, 150t AHC cranes, and vessels Larissa and Despina, accommodation for 69 persons. covering general and commer- Additionally, the moonpool is cial management. arranged with a three part hatch, The Larissa is currently working and is arranged with interface for SNEPCO (Shell Nigeria), and necessary enforcements for while the Despina is in lay-up a Module Handling Tower. SEA TRUCKS SECURES WORK INTO 2017 Permaducto S.A. de C.V. at Pemex Lines 63a and 65 in and 1,300m² of unobstructed (Protexa) has awarded Sea the Ku-Maloob-Zaap field for 42 deck space. Trucks a contract to utilise its days plus options. accommodation barge Jascon 31 Offshore activities are scheduled for accommodation and heavy to start early in October 2016. lift services offshore Mexico. The 2010-built DP3 barge has The barge will support repair a length of 111m, and she is works at Pemex Line 221 at the equipped with a 400-tonne Abkatun-A Platform in the Gulf heave compensated main crane, of Mexico for a period of 50 days, accommodation for 408 persons, followed by a similar work scope a heave compensated gangway,

SEABREEZE 11 SUBSEA

MERMAID AUSANA CLOSE TO BEING SOLD? or lease of DP2 multipurpose Industry have mutually agreed subsea DSCV Mermaid Ausana. to extend the delivery date for It was rumoured in early Sep- Mermaid Ausana until 30 June tember that Ultra Deep Solutions 2017. had purchased the newbuild, but The 121m-long vessel will be Mermaid has confirmed that no equipped with an 18-man twin final decision has been made yet. bell saturation diving system for It was further rumoured that operation down to 300m, two Ultra Deep would rename the 150 HP WROVs, two self-pow- Mermaid Maritime is currently Marin Teknikk MT6024 vessel ered hyperbaric lifeboats, and evaluating bids and options it as Lichtenstein. accommodation for up to 130 has received from third parties Mermaid and the vessel builder persons. regarding the potential purchase China Merchants Heavy KREUZ SUBSEA NAMES NEWBUILD Kreuz Subsea has named its to 300m with a surface diving days per year (firm) plus options newbuild Vard 3 17 DSV Kreuz spread suitable for air diving for 30 days per year of saturation Challenger, with delivery down to 50m. Upon delivery, diving. Kreuz Subsea chartered scheduled in the second quarter the newbuild will commence a Bourbon Offshore’s IMR support of 2017 from Vard Soeviknes in multi-year contract in Brunei. vessel Bourbon Supporter to Norway. As previously reported in front-run for the newbuild. The DP2 Kreuz Challenger is Seabreeze, Kreuz Subsea was fitted with a 100-tonne active awarded a seven-year IRM heave compensated offshore contract with BSP (Brunei crane, and she can accommodate Shell Petroleum). The contract up to 105 persons. Additionally, commenced in 2015 and will she is also equipped with a 12- run until 2022. The IRM project man saturation diving system for consists of air diving and obser- operations in water depths down vation class ROV work for 240 NORTH ENERGY INCREASES STAKE IN REACH second largest shareholder in the As per June 29, 2016, Accello Norwegian contractor. Partners is the largest sharehold- After the acquisition of an er with 30.3 per cent, followed additional 4,619,014 shares, this by North Energy Capital (after has increased their stake in the the recent purchase) with 9.8 per company to 9.8 per cent of the cent and Joso Invest with 7.9 per issued shares and voting rights. cent in third place. Meanwhile, West Supply II During the second quarter of Operation has divested its 5.5 2016, Reach Subsea generated a North Energy Capital has per cent of outstanding shares net profit of NOK 3.3 million on acquired an additional stake in in Reach Subsea, and no longer revenues of NOK 89.5 million. Reach Subsea, making them the holds any shares in Reach.

12 SEABREEZE SUBSEA

AXIS NOVA DELAYED Axis Offshore has entered into an This is an extension to the agreement with Cosco shipyard to current agreement they have further postpone the delivery of its with the yard which expired on newbuild flotel Axis Nova. September 30, 2016. The rig was Following the completion of sea originally scheduled for delivery trials, the accommodation rig in the first quarter of 2015. will be laid-up at the yard until The DP3 GM500A-designed Axis August 20, 2017, but Axis can Nova has a length of 105 metres, take delivery of the newbuild at a max lift of 110 tonnes and any time with short notice. accommodation for 500 persons. MERMAID SECURES ADDITIONAL WORK Middle East. The total value provide survey and inspection of the contracts is estimated services to a third-party diving at a potential USD 5.1 million. vessel for around 45 days in The first contract will see DP2 Malaysian waters. Work for this diving support vessel Mermaid contract has alrady commenced. Nusantara carry out a 30-day Additionally, an EPC contractor installation project, involving in the Middle East has extended heavy duty work-class ROVs in its contract with DP2 DSV Seascape Surveys has been the Natuna Sea, Indonesia. The Mermaid Endurer by a further awarded subsea contracts in contract is due to commence month, together with additional Southeast Asia with an undis- no later than the first quarter of standalone saturation diving closed client, and has received 2017. support equipment and services. a contract extension in the The second contract is to TOPAZ NAMES NEWBUILDS Topaz Energy and Marine has for delivery from Vard Brattvaag crane, two ROVs which will held a christening ceremony for in Norway during the third be deployed via Launch and its two newbuild IMR support and fourth quarters of 2017 Recovery Systems (LARS) over vessels. Topaz has named the respectively. The DP2 newbuilds the side, and accommodation VARD 3 08 designed newbuilds will have a length of 98m, and for 82 persons. Topaz also has as Topaz Tiamat and Topaz they will be equipped with a options for a further two VARD Tangaroa. The vessels are due 120t active-heave compensated 3 08 designed vessels. EUROPEAN BUILT SUBSEA DELIVERIES (NEXT THREE MONTHS) SHIP OWNER NAME CHARTERER SHIP YARD TYPE DESIGN MONTH SOLSTAD NORMAND MAXIMUS SAIPEM VARD BRATTVAAG DERRICK PIPELAY VARD 3 19 OCT TECHNIP DEEP EXPLORER - VARD LANGSTEN DSV VARD 3 06 OCT SUBSEA 7 SEVEN SUN PETROBRAS MERWEDE PIPELAY 550 OCT TECHNIP SKANDI BUZIOS PETROBRAS VARD SOEVIKNES PIPELAY VARD 3 05 NOV SUBSEA 7 SEVEN CRUZEIRO PETROBRAS MERWEDE PIPELAY - DEC

SEABREEZE 13 RENEWABLES

DONG TO INVEST IN GRIMSBY DONG Energy plans to make a A marine coordination centre multi-million pound investment capable of providing 24-7 service in Grimsby to create the UK’s to offshore operations across the largest offshore wind operations UK and beyond will be included and maintenance hub. in the investment. The facility Subject to planning approval, the will be served by vessels capable hub will support the Westermost of accommodating up to 60 crew Rough, Race Bank and Hornsea and technicians while remaining in 2017 to support a phased Project One offshore wind farms, at sea for long periods. SOVs, activation on the new hub. The with the capacity to support supplied by Ostensjo Rederi and vessel will initially support the other east coast wind farms in designed by Rolls-Royce, are operation and maintenance of DONG Energy’s future devel- being chartered to operate from Race Bank, DONG Energy’s opment pipeline from the Royal the new hub. 580MW offshore wind farm Dock. The first vessel will arrive late currently under construction. VOS START TO PROVIDE W2W ON WALNEY construction of DONG Energy’s transfer personnel, equipment Walney Extension West offshore and spare parts to wind turbines wind project. during commissioning. The VOS Vroon will deploy its newbuild Start will also have the ability subsea support vessel VOS Start, to perform mother-ship duties which is due to be delivered by for crew-transfer vessels. The Fujian Southeast Shipbuilding 300MW Walney Extension in China ready to commence West will be the first phase of MHI Vestas Offshore Wind has operations in the 2017 season. the 660MW Walney Extension awarded a contract to Vroon The vessel will provide accom- offshore wind farm project. Offshore Services for the provi- modation and work space for up Construction is due to begin sion of offshore logistics support, to 60 client personnel after the during the summer of 2017, accommodation and walk- installation of a motion-com- while the wind farm is due to be to-work services during the pensated gangway to safely fully commissioned in 2018. WORLD MARINE SECURES WORK FOR NEWBUILDS Iberdrola Renovables Offshore The vessels will feature a com- has awarded World Marine bined diesel electric and battery Offshore a contract to provide propulsion system and will crew transfer vessels (CTVs) for have the ability to carry 20 tons operations and maintenance of cargo on the foredeck. The at the 350MW Wikinger wind Wikinger wind farm is located farm offshore Germany. World in water depths of around 30- Marine will utilise two 32-metre 40m, and will consist of 70 5MW newbuilds, which are due to be wind turbines and one offshore delivered during 2017, for the substation, scheduled to be campaign. operational by the end of 2017.

14 SEABREEZE RIGS

INACTIVE RIGS NORTHWEST EUROPE OIL PRICE VS RIG UTILISATION NAME TYPE STATUS 100% $80 BORGLAND DOLPHIN SS WARM STACK $75 BORGNY DOLPHIN SS COLD STACK 90% 85.0% 85.1% 84.6% 84.0% 83.2% 83.1% 82.3% $70 BREDFORD DOLPHIN SS COLD STACK 78.6% 80% 77.1% $65 COSLINNOVATOR SS WARM STACK 75.1% 74.3% 74.6% 74.3% 79.6% $60 COSLPIONEER SS WARM STACK 76.9% 75.4% 75.9% 70% DEEPSEA METRO II DS COLD STACK 74.2% 72.9% $55 69.2% 68.2% 68.0% 60.5% DEEPSEA STAVANGER SS WARM STACK 66.3% $50 60% 64.6% 57.3% ENERGY ENDEAVOUR JU COLD STACK $48.12 $48.48 $45 $47.23 $47.13 $46.14 $47.15 $44.42 $45.07 ENERGY ENHANCER JU COLD STACK 50% $42.25 $40 44.4% ENSCO 70 JU COLD STACK $39.07 46.9% 39.2% $35 45.5% 44.5% $37.72 ENSCO 72 JU WARM STACK 40% 42.5% $33.20 $30 39.1% 39.9% ENSCO 101 JU WARM STACK $30.80 38.2% 37.2% 36.4% 35.5% 35.0% 30% $25 GSF GALAXY II JU COLD STACK Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Average Brent Crude US$ / Bbl Northwest Europe Rig Utilisation GSF GALAXY III JU COLD STACK South America Rig Utilisation US Gulf Rig Utilisation GSF MONARCH JU COLD STACK GSP SATURN JU COLD STACK MAERSK OIL AWARDS P&A CONTRACTS HERCULES TRIUMPH JU COLD STACK Maersk Oil has awarded new Ocean Valiant has been chartered ISLAND INNOVATOR SS COLD STACK MAERSK GALLANT JU WARM STACK contracts to Diamond Offshore to P&A 13 wells at the Janice MAERSK REACHER JU WARM STACK and Maersk Drilling for two field from November 2016, while MAERSK RESOLUTE JU WARM STACK separate plug and abandonment jackup Maersk Gallant has been OCEAN NOMAD SS COLD STACK (P&A) campaigns in the UK contracted for 230 days from OCEAN PRINCESS SS COLD STACK sector of the North Sea. February 2017 for P&A work at OCEAN VALIANT SS WARM STACK Diamond semisubmersible the Leadon and James fields. OCEAN VANGUARD SS COLD STACK PARAGON B391 JU WARM STACK PARAGON C462 JU COLD STACK COBALT SHORTENS DRILLSHIP COMMITMENT PARAGON C463 JU COLD STACK Cobalt International Energy has allows for a termination date of PARAGON C20051 JU WARM STACK amended its contract with Row- March 31, 2017. Cobalt will incur PARAGON C20052 JU COLD STACK an Companies to allow for an a fee of USD 96 million. As part PARAGON HZ1 JU WARM STACK early termination of its charter of the agreement, Cobalt has POLAR PIONEER SS COLD STACK ROWAN GORILLA VII JU WARM STACK with drillship Rowan Reliance committed to using Rowan as ROWAN NORWAY JU WARM STACK in the US Gulf. The contract its exclusive provider of global ROWAN STAVANGER JU WARM STACK was due to expire on February 1, drilling services for the next five SEDCO 711 SS COLD STACK 2018, however the amendment years at market rates. SEDCO 712 SS WARM STACK SEDCO 714 SS COLD STACK RIG UTILISATION AND DAY RATES SERTAO DS COLD STACK SONGA DEE SS WARM STACK SEP SEP SEP SEP SEP UTILISATION SONGA TRYM SS WARM STACK 2016 2015 2014 2013 2012 SWIFT 10 JU WARM STACK NORTHWEST EUROPE 57.3% 79.6% 95.9% 97.5% 96.5% TRANSOCEAN BARENTS SS WARM STACK SOUTH AMERICA 74.3% 85.0% 93.8% 96.5% 97.9% TRANSOCEAN PROSPECT SS COLD STACK US GULF 35.0% 45.5% 65.8% 72.4% 70.7% TRANSOCEAN SEARCHER SS COLD STACK RECENT DAY RATE BENCHMARKS LOW (USD) HIGH (USD) WEST ALPHA SS WARM STACK WEST HERCULES SS WARM STACK UK HARSH HIGH SPEC JACKUPS 88,600 88,600 WEST NAVIGATOR DS COLD STACK UK HARSH STANDARD SEMISUBS 110,000 150,000 WEST PHOENIX SS WARM STACK SOUTH AMERICA DEEPWATER SEMISUBS 175,000 275,000 WEST VENTURE SS COLD STACK GLOBAL ULTRA-DEEPWATER SEMISUBS 230,000 308,000 WILHUNTER SS WARM STACK GLOBAL ULTRA-DEEPWATER DRILLSHIPS 180,000 350,000 Source: IHS-Petrodata

SEABREEZE 15 CONUNDRUM CORNER, DUTY PHONES

HERCULES SELLS THREE JACKUPS THE SEABREEZE ARCHIVE

Hercules Offshore Middle East Ltd has entered For the current or archive copies of Seabreeze go into an agreement to sell three drilling jackups to: http://www.seabrokers.co.uk/ - see under to Egyptian company Advanced Energy Systems Shipbroking / Market Reports. If you wish to (ADES) S.A.E for a total price of USD 65,088,800. Subscribe or Unsubscribe please contact: [email protected] The jackups being sold are Hercules 261, Hercules 262 and Hercules 266. The transaction is expected to close within 60 days from the execution date of August 31st, subject to certain closing conditions SEABROKERS GROUP CONTACTS including the novation of drilling contracts related to the rigs. All three are currently working for SEABROKERS HEAD OFFICE Forusbeen 78 - 4033 Stavanger - Norway Saudi Aramco. Tel: (+47) 51 80 00 00 Internet: www.seabrokers-group.com The rigs are all 250ft IC jackups, built to the Marathon LeTourneau Class 82-SD-C design. SEABROKERS CHARTERING AS - STAVANGER Duty Telephone ++47 51 815400 (24 Hrs) The Hercules 261 and 262 were built by Davies E-mail [email protected] Shipbuilding in Canada and delivered in 1979 and 1982 respectively. The Hercules 266 was built by SEABROKERS LTD - ABERDEEN Marathon LeTourneau in Brownsville, USA, and Duty Telephone ++44 1224 747744 (24 Hrs) Duty Mobile ++44 7802 304129 delivered in 1979. E-Mail [email protected]

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

The answer to last month’s teaser :- SEABROKERS PTE LTD -SINGAPORE Telephone ++65 6224 6062 or 0951 Decipher the code below to find the names of six E-mail [email protected] world class footballers. Who are they? SECURALIFT AS - STAVANGER Telephone ++47 51 800000 NFTTJ SPOBMEP DPTUB HEADINGE-mail [email protected] SJCFSZ OFVFS QPHCB QuiatisSEA SURVEILLANCE imaximilitem AS num - BERGEN enis porum ne dolles Telephone ++47 55 136500 The correct answer was :- MESSI, RONALDO, quiE-mail rerum id min [email protected] dolo quo conet il id COSTA, RIBERY, NEUER and POGBA quisto que voluptatus eatis re ventur? Hilibust quisSEABROKERS as mincias EIENDOM 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 What number should replace the question mark in faccumSEABROKERS remperi SERVICES onsequi AS - STAVANGER this sequence? Telephone ++47 51 800000 E-mail [email protected]

2 4 12 48 ? 1440 SEABROKERS ENTREPRENØR SERVICE AS - STAVANGER Telephone ++47 51 800000 Answers back to [email protected] for E-mail [email protected] a chance to win a bottle of wine. SEABROKERS KRAN & TRANSPORT AS - STAVANGER Telephone ++47 51 800000 E-mail [email protected] 16 SEABREEZE