july 2016 solstad & rem offshore merge as ...72, maersk reacher, rowan gorilla vii, safe...

JULY 2016

SOLSTAD & REM OFFSHORE MERGE AS CONSOLIDATION BEGINS

CONTENTS

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3 OSV MARKET ROUND-UP

6 OSV AVAILABILITY, RATES & UTILISATION - NORTH SEA

7 MONTHLY OSV SPOT RATES - NORTH SEA

8 FEATURE VESSEL

9 OSV NEWBUILDINGS, CONVERSIONS, SALE & PURCHASE

11 SUBSEA

14 RENEWABLES

15 RIGS

16 CONUNDRUM CORNER & DUTY PHONES

SHIPBROKING

SECURALIFT

SEA SURVEILLANCE

REAL ESTATE

ENTREPRENEUR

CRANES & TRANSPORTATIONYACHTING

FACILITY MANAGEMENT

SEABREEZE 3

OSV MARKET ROUND-UPBITTERSWEET JOY FOR AHTS OWNERS North Sea AHTS owners enjoyed a surprisingly lucrative spot market in July, with average fixture rates north of GBP 44,000 (USD 58,135) for large vessels (see p.6-7). This is a considerable improvement on the GBP 15,000-25,000 averages that have been prevalent in recent months.

However, the spike in rates was due to an increase in the number of rig moves last month, and the bittersweet nature of this must be acknowledged because a significant proportion of those moves were to transport active rigs into stacking locations. This involved the likes of the ENSCO 72, Maersk Reacher, Rowan Gorilla VII, Safe Bristolia, Sedco 712, Transocean Winner and West Alpha. With plenty more rigs due to come off contract this year, this scenario may play out again in the coming weeks and months, however it may be some time before these rigs come back into service so it does not necessarily mark the beginning of a prolonged market improvement for AHTS owners.

In the PSV market, average spot rates stayed above GBP 7,000 (USD 9,245) in July. Trading conditions have improved slightly in recent months, however with many fixtures still being recorded at GBP 5,000-6,000, times are still extremely difficult for North Sea owners.

REM OFFSHORE & SOLSTAD MERGE

UK OFFERS 1,200 OFFSHORE BLOCKSThe UK’s Oil and Gas Authority (OGA) has launched the 29th Offshore Licensing Round, with more than 1,200 blocks on offer. The deadline for applications is October 26, 2016.

New licences are available in a number of frontier areas of the UK Continental Shelf (UKCS). Some of these formed part of a GBP 20 million govern-ment-funded seismic campaign that was conducted in 2015 to promote underexplored areas offshore the UK. This focused on

the Rockall Trough and Mid-North Sea High regions.

In relation to this, contracts have been awarded for a second GBP 20 million government-funded seismic campaign to take place in the second half of this year. PGS and WesternGeco will acquire seismic data from the East Shetland Platform and South West Britain respectively. PGS vessel Nordic Explorer and WesternGeco vessel WG Magellan have been contracted for the work.

Norwegian vessel owners Solstad Offshore ASA and REM Offshore ASA have entered into an agreement whereby REM will be merged with a wholly-owned subsidiary of Solstad. The new entity will operate a fleet of 62 vessels, consisting of 44 from Solstad and 18 from REM (although Vard Holdings recently agreed in principle to terminate REM’s order for a newbuild offshore construction and anchor handling vessel).

Extraordinary shareholders’ meetings in Solstad and REM are expected to be held in Octo-ber, with the merger becoming effective on or around December 1, 2016. Solstad will retain its Skudeneshavn head office, from which the combined fleet of 43 Construction Support Vessels

will be operated. The combined fleet of 19 Platform Supply Vessels will be operated from REM’s current head office in Fosnavåg.

Commenting on the agreement, Lars Peder Solstad (CEO of Solstad) noted that “reduced spending across the upstream value chain has contributed to the current [OSV] overcapacity... with the industry’s fragmented structure further compounding these negative effects. Solstad and REM both see the need to create larger entities with finan-cial and operational strength to weather the downturn. The combination of Solstad and REM is one step in the right direction, but there remains a strong rationale for further consolida-tion.”

4 SEABREEZE

OSV MARKET ROUND-UP

As well as awarding term PSV charters, Statoil has been active on the AHTS front, exercising a one-year option on its contract with Solstad Offshore vessel Normand Ferking. The Ferking is now committed until at least September 2017, with two

further one-year options still available to Statoil.

The Normand Ferking is a 2007-built VS 490 AHTS. She has a bollard pull of 239t, a cargo deck area of 760m² and accom-modation for 32 persons.

Statoil has awarded contracts to Eidesvik Offshore and Rem Offshore for six-month firm charters of PSVs Viking Prince and Rem Leader. The Viking Prince (pictured c/o D. Dodds) will commence her contract in August following the conclusion of her current term charter with ENGIE offshore Norway. The Rem Leader was trading the North Sea spot market prior to the award of this fixture. Both of these contracts come with options which may see the terms extended by an additional six months.

Statoil has also extended its charter with GulfMark PSV North Purpose for at least three

more months. The 2010-built vessel has been working for Statoil since May 2013. The Viking Prince is a VS 489 LNG

vessel, the Rem Leader is a VS 499 LNG PSV, and the North Purpose is an STX (VARD) 09 CD vessel.

FERKING KEPT ON BY STATOIL

STATOIL AWARDS TRIO OF TERM PSV FIXTURES

Viking Supply Ships has received an early termination notice for AHTS vessel Njord Viking (pictured c/o M. Christiansen). The vessel has been working for Eni in the Barents Sea, and had been contracted until the end of 2016 with two further six-months options available.

Viking Supply Ships will be entitled to a termination fee of approximately USD 13,300 per day for the remainder of the firm period. Upon her release from Eni, the Njord Viking will trade the North Sea spot market while she is marketed for alternative term contracts.

CONTRACT TERMINATION FOR VIKING AHTS

SEABREEZE 5

OSV MARKET ROUND-UP

Royal Boskalis Westminster N.V. has decided to take 24 vessels out of service over the next two years due to deterio-rating market conditions and an expected prolonged period of low energy and commodity prices. Of the 24 vessels, 10 will be from its Dredging division,

and the other 14 will be from its Offshore Energy division. These will include trailing suction hopper dredgers, cutter suction dredgers, anchor handling tugs and heavy transport vessels. This will be implemented via the scrapping, sale and layup of vessels.

Petrobras has awarded a term contract to Bourbon Offshore for a one-year firm charter with AHTS vessel Haroldo Ramos offshore Brazil.

The 2004-built vessel has returned to Petrobras, having previously concluded another

term charter with the operator in April this year.

The Haroldo Ramos is a Brazil- flagged UT 722 L vessel. She has a length of 77.5m, breadth of 18.0m and a deck area of 615m². She has a bollard pull of 130t and accommodation for 30 persons.

Simon Møkster Shipping has received a contract extension from Det Norske Oljeselskap that will see its PSV Stril Orion remain with the operator for at least six more months.

The vessel, which has been working for Det Norske since 2012, is now contracted until February 2017 with 12 further one-month options available. She has recently been in Denmark where she has been undergoing her five-year class certification. Her sister vessel Stril Polar has been working for Det Norske while this has been taking place.

Delivered in 2011, the Stril Orion

(pictured) is an STX (VARD) PSV 09L CD vessel. She has a length of 93.5m, a breadth of 19.0m and

a deck area of 1,040m². She has an accommodation capacity for 24 persons.

PETROBRAS BOOKS BOURBON AHTS

BOSKALIS TAKING 14 OFFSHORE VESSELS OUT OF SERVICE

ORION STAYS WITH DET NORSKE

6 SEABREEZE

OSV RATES & UTILISATION

NORTH SEA SPOT AVERAGE UTILISATION JULY 2016

TYPE JUL 2016 JUN 2016 MAY 2016 APR 2016 MAR 2016 FEB 2016

MED PSV 73% 80% 81% 83% 70% 72%

LARGE PSV 87% 96% 86% 81% 67% 80%

MED AHTS 64% 66% 46% 37% 42% 29%

LARGE AHTS 79% 76% 56% 53% 62% 55%

JULY 2016 - DAILY NORTH SEA OSV AVAILABILITY

NORTH SEA AVERAGE RATES JULY 2016

CATEGORYAVERAGE RATE

JUL 2016AVERAGE RATE

JUL 2015% CHANGE MINIMUM MAXIMUM

SUPPLY DUTIES PSVS < 900M2 £7,203 £3,844 +87.38% £4,750 £15,000

SUPPLY DUTIES PSVS > 900M2 £7,355 £4,610 +59.54% £3,590 £14,362

AHTS DUTIES AHTS < 18,000 BHP £22,986 £10,783 +113.17% £6,752 £45,000

AHTS DUTIES AHTS > 18,000 BHP £44,098 £15,113 +191.79% £15,000 £75,000

RATES & UTILISATION

ARRIVALS CONTINUED

E.R. TRONDHEIM EX AFRICA

E.R. VITTORIA EX AFRICA

PACIFIC LEGEND EX SOUTH ATLANTIC

SKANDI PACIFIC EX SOUTH AMERICA

SPOT MARKET ARRIVALS & DEPARTURES JULY 2016

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

ARRIVALS - NORTH SEA SPOT

BOURBON BORGSTEIN EX MEDITERRANEAN

DEMAREST TIDE EX AFRICA

ERACLEA EX ASIA

E.R. LUISA EX USA

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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

PSV 2016 PSV 2015 AHTS 2016 AHTS 2015

DEPARTURES - NORTH SEA SPOT

SEABREEZE 7

NORTH SEA AVERAGE SPOT MONTHLY RATES

NORTH SEA AVERAGE SPOT RATES

£-

£10,000

£20,000

£30,000

£40,000

£50,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2015 £20,863 £16,171 £18,184 £13,617 £19,461 £25,046 £15,113 £12,176 £8,809 £6,035 £9,983 £45,3772016 £32,234 £27,884 £16,607 £24,405 £13,029 £22,921 £44,098 £- £- £- £- £-

Rig Moves

£-

£10,000

£20,000

£30,000

£40,000


PSVs > 900M2

£-

£5,000

£10,000

£15,000


PSVs < 900M2

£-

£10,000

£20,000

£30,000

£40,000


All Cargo Runs

£-

£5,000

£10,000

£15,000

£20,000

£25,000

PSVs < 900m² PSVs > 900m² AHTS < 18,000 bhp AHTS > 18,000 bhp2015 £3,902 £4,767 £13,617 £19,3432016 £5,998 £5,397 £16,401 £22,718

Average Day Rates To Month (June 2013)

£-

£10,000

£20,000

£30,000

£40,000

£50,000


Rig Moves

£-

£10,000

£20,000

£30,000

£40,000


PSVs > 900M²

£-

£5,000

£10,000

£15,000


PSVs < 900M²

£-

£10,000

£20,000

£30,000

£40,000


All Cargo Runs

£-

£5,000

£10,000

£15,000

£20,000

£25,000



£-

£10,000

£20,000

£30,000

£40,000

£50,000


Rig Moves

£-

£10,000

£20,000

£30,000

£40,000


PSVs > 900M2

£-

£5,000

£10,000

£15,000


PSVs < 900M2

£-

£10,000

£20,000

£30,000

£40,000


All Cargo Runs

£-

£5,000

£10,000

£15,000

£20,000

£25,000



£-

£10,000

£20,000

£30,000

£40,000

£50,000


AHTS > 18,000 bhp

£- £5,000

£10,000 £15,000 £20,000 £25,000 £30,000 £35,000


AHTS < 18,000 bhp

£-

£2,500

£5,000

£7,500

£10,000

£12,500


PSVs > 900m²

£-

£2,500

£5,000

£7,500

£10,000

£12,500


PSVs < 900m²

£-

£5,000

£10,000

£15,000

£20,000

£25,000

£30,000


Average Day Rates To Month (July 2016)

8 SEABREEZE

FEATURE VESSEL

Solstad Offshore held a christening ceremony for its newbuild OCV Normand Maximus (pictured c/o H. Valderhaug) at the Vard Brattvåg shipyard in Norway on July 15th.

NORMAND MAXIMUS SPECS:

Overall Length: 177.9mMoulded Breadth: 33mCargo Deck Area: 2,500m²Accommodation: 180 personsCrane: 900 tonne AHCHelideck: Sikorsky S92Dynamic Positioning: DP3Vertical Lay Tower: 500tTensioners: 2 x 275tReeled Rigid Pipe: Up to 16-in

NORMAND MAXIMUS

Saipem has already agreed to charter the 177.9m long vessel for a period of eight years plus options following her delivery. The vessel’s hull was built at Vard’s Romanian yard, while the outfitting was carried out in Norway.

The Normand Maximus, a Vard 3 19-designed vessel, is equipped with a 550-tonne top tension vertical lay system enabling the installation of large diameter flexible pipes in ultra-deepwater environments. She also comes

equipped with a 900-tonne active heave compensated offshore crane and a 4,000-tonne under-deck carousel for storage of flexible pipes, cables, and umbilicals.

Saipem will target the DP3 vessel for the execution of projects in the most challenging environments worldwide, with a particular focus on East and West Africa, Brazil, Australia, the North Atlantic and the Gulf of Mexico.

SEABREEZE 9

OSV NEWBUILDINGS, S&P

Newbuild PSV NAO Galaxy has been delivered to Nordic American Offshore (NAO) by the Vard Aukra shipyard in Norway. This follows the earlier delivery of sister vessel NAO Horizon (pictured c/o O Halland), which was delivered by Vard Aukra in April.

Built to the VARD 1 08 design, the vessels have a length of 81.7m, breadth of 18.0m, a deck area of 830m² and a deadweight of 4,100t. Due to the current weakness in the North Sea PSV market, NAO has elected to keep both vessels at the yard until trading conditions improve.

Wilson Sons UltraTug Offshore has taken delivery of newbuild PSV Larus in Brazil. She is the first of two sister vessels being built to the Damen PSV 5000 design at Wilson Sons’ shipyard in Guarujá, São Paulo state. The Larus has a deck area of 920m², with a travelling gantry crane

along the work deck to allow optimal storage and movement of deck cargo.The vessels were commissioned by Wilson Sons following the sixth round of Petrobras’ Fleet Renewal process (Prorefam). They have been contracted for a firm period of six years.

Grupo CBO has held a naming ceremony in Brazil for newbuild PSV CBO Itajai. This is the second CBO vessel to be built at the Oceana Estaleiro Shipyard, following the delivery earlier this year of sister vessel CBO Oceana.Both vessels were built to

Ulstein’s PX 105 design, giving them a length of 88.9m, a breadth of 19.0m and a dead-weight of 4,700 tons. They have been contracted by Petrobras for a firm period of six years. The CBO Itajai will operate for Petrobras in the Santos Basin offshore Brazil.

NAO GALAXY DELIVERED BY VARD

LARUS DELIVERED IN BRAZIL

OCEANA ESTALEIRO DELIVERS SECOND CBO PSV

Vroon Offshore is adding three new PSVs to its fleet, with the VOS Princess and VOS Principle delivered by the Fujian Southeast Shipyard in China, and a naming ceremony held for the VOS Passion at the Cosco Guangdong Shipyard, also in China, ahead of her delivery next month.

The VOS Passion is the fourth of six PSVs built to Ulstein’s PX 121 design; she has a deck area of 850m² and accommodation for 26 persons. The VOS Princess (pic-tured) and Principle are the fifth and sixth of eight KCM vessels. They have a deck area of 750m² with accommodation for 52.

THREE NEW PSVS FOR VROON

10 SEABREEZE

OSV NEWBUILDINGS, S&P

The SC Group in Thailand has taken delivery of two newbuild AHTS vessels that were built to Nam Cheong’s NCA80E design. The SC Bongkot (pictured) was built at the Wuhu Xinlian Shipyard in China, while the SC Winter was built at Nam

Cheong Dockyard in Malaysia. The vessels have a length of 64.8m, a bollard pull of 80 tonnes and they come with diesel electric propulsion. Both have been chartered by PTTEP for three-year firm contracts offshore Thailand.

The Cosco Dalian Shipyard in China has delivered Portland Sentinel, the first of four FOCAL 531 ERRVs for Sentinel Marine. The 62m multi-role ERRVs feature state-of-the-art rescue equipment, including a uniquely designed Daughter Craft.

The Portland Sentinel will now be mobilised to the North Sea, where it is understood she will act as a front-runner for a long-term charter with Statoil UK ahead of the delivery of another Sentinel newbuild, Mariner Sentinel, early in 2017.

TWO NAM CHEONG VESSELS FOR SC GROUP

PORTLAND SENTINEL HEADING FOR NORTH SEA

The Besiktas Shipyard in Turkey has launched the Dina Polaris, a newbuild MPSV it is building for Myklebusthaug Management.The Dina Polaris is scheduled for delivery in the first half of next year. She is being built to Rolls Royce’s UT 7521 design, giving her a length of 98.9m

and a breadth of 21.0m. She will have a deck area of 1,000m², a deadweight of 6,000t, and an accommodation capacity for 100 persons. The Dina Polaris will have port and starboard ROV hangars, and will be prepared to allow for a moon pool, a helideck and a 150t AHT crane.

DINA POLARIS LAUNCHED IN TURKEY

RECENT DELIVERIES OF NEWBUILD OSVSNAME TYPE/DESIGN OWNER/ MANAGER COMMITMENT

CBO ITAJAI ULSTEIN PX 105 PSV GRUPO CBO SOUTH AMERICA

LARUS 5,000 DWT PSV WILSON SONS ULTRATUG OFFSHORE SOUTH AMERICA

NAO GALAXY VARD 1 08 PSV NORDIC AMERICAN OFFSHORE -

PORTLAND SENTINEL FOCAL 531 ERRV SENTINEL MARINE NORTH SEA

SC BONGKOT NCA 80E AHTS SC GROUP SOUTHEAST ASIA

SC WINTER NCA 80E AHTS SC GROUP SOUTHEAST ASIA

VOS PRINCESS 80M KCM PSV VROON OFFSHORE TBC

VOS PRINCIPLE 80M KCM PSV VROON OFFSHORE TBC

SEABREEZE 11

SUBSEA

The renewables market contin-ues to attract subsea players and some of the largest vessels in the sector. OCV Aker Wayfarer commenced work at the Wave Hub site, offshore Cornwall in the UK, in mid-July.The 157m-long vessel will install 6km of cable, associated connec-tors, cable abrasion protection, rock bag cable stabilisation and surveys at the wave energy test site on behalf of James Fisher Marine Services. Offshore works

are scheduled for completion around mid-August.Prior to this campaign, the OSCV 06 WI-design vessel carried out the retrieval of a tidal turbine for French tidal energy developer Sabella. The operation was carried out at the Fromveur Strait off Ushant island, France.During the second half of 2016, the Aker Wayfarer is due to start a five-year firm plus five-year option contract with Petrobras. AKOFS Offshore & Petrobras are in discussions regarding the

start-up time of the multi-year contract and these discussions are due to conclude during the third quarter of 2016.The 2010-built vessel recently underwent a conversion for the installation of a fibre-rope de-ployment system, deck skidding systems and a subsea orientation equipment system, allowing it to install and retrieve subsea trees and modules, including subsea structures and manifolds for its campaign with Petrobras.

ARGENTINA CALLING JASCON 34

SUBSEA MARKET ROUND-UP

Petrobel, which is a joint venture between Eni and Egyptian General Petroleum Corporation (EGPC), has awarded Saipem a EUR 1.5 billion EPCI contract

for work on the Zohr gas field offshore Egypt. Saipem will install a 26-inch gas export trunkline and a 14-inch and 8-inch service trunkline at the supergiant field. Addition-ally, Saipem will conduct EPCI work on six wells and install umbilicals in water depths of up to 1,700m.Saipem will deploy the pipelay vessel Castorone, the semi-sub-

mersible pipelayer Castoro Sei, the trench/pipelay barge Castoro 10 and other specialised vessels. Work will commence in July and is due to be completed by the end of 2017.The Zohr field was discovered in August 2015 using the drillship Saipem 10000. It is the largest gas discovery in the Mediter-ranean region to date, with potential gas reserves of 30 Tcf.

SAIPEM TO WORK ON SUPERGIANT ZOHR FIELD

Sea Trucks has been awarded a pipelay construction and accom-modation services contract for work offshore Argentina in the fourth quarter of 2016.Sea Trucks will utilise the DP3 pipelay, construction and accommodation vessel Jascon 34 for the Enap Sipetrol campaign on the PIAM Project in the Magallanes field.The work scope will cover

engineering, project man-agement and installation of three pipelines of various sizes ranging from 6-inch to 14-inch, with one shore approach, as well as the installation of tie-in spools and risers.In addition, it includes the aban-donment of two existing lines and the recovery of flexibles. This is the second contract Sea Trucks has announced for the

Jascon 34 in less than a month, as reported in last month’s edition of Seabreeze.

12 SEABREEZE

SUBSEA

Eni has awarded Rana a contract to provide underwater inspection, maintenance and repair work on 17 platforms offshore Congo.For this campaign, the company has chartered the DSV Toisa Paladin. The MT 6016 L-designed

vessel has a length of 104 metres and is equipped with an 18-person dive system, a max lift of 140 tonnes and accommodation for 100 persons. The work scope is due to begin in early August with an estimated duration of six months.

RANA CHARTERS TOISA PALADIN

Damen Shipyards has targeted the growing decommissioning market by introducing its latest vessel concept, the Damen Decommis-sioning Series.The new vessels will focus on three areas of the oil and gas

decommissioning sector: topside decommissioning, offshore plat-form removal, and subsea cleaning and removal.The new designs will feature a split stern allowing them to reverse up to a jacket, where it will be bal-lasted to sink below the platform before deballasting and lifting the platform.Initial tests indicate that the vessel will be able to perform decommis-

sioning work of platforms up to 1,600 tonnes. Additionally, the vessel can be modified with modular additions like a crane, helideck, and an accommodation module for increased personnel capacity or a platform for a solid stern. Such a stern can be used for transporting and installing monopiles and foundations for the offshore wind industry.

DAMEN TARGETS DECOM MARKET

TECHNIP CHARTERS POLAR ONYXTechnip has chartered the GC Rieber-owned pipelay vessel Polar Onyx for up to two months for work offshore Angola.The SX121-designed vessel, which has a length of 130m, a maximum lift of 250t and

accommodation for 130 per-sons, will conduct SURF and construction work under the contract. Prior to this campaign the vessel was on charter with James Fisher for work offshore the UK.

BIBBY TO SUPPORT BP Bibby Offshore has won a 15-day contract with BP in the UK North Sea commencing in August. The ST-256-L-designed DSV Bibby Topaz will be used for the campaign on four BP operations across three of its North Sea assets. The platforms involved include Central North Sea-based asset

Bruce, east of Shetland-based Magnus, and the Mirren field, which is part of the Eastern Trough Area Project (ETAP). The work-scope includes the sup-ply of air and saturation diving support to perform operations including spool and flowline disconnection, evaluation and installation of conductor

clamp guides, alignment clamp installation and modifications to a gas lift system.

SEABREEZE 13

SUBSEA

Oceaneering International has entered into a master service agreement with Heerema Ma-rine Contractors to provide ROV systems and associated subsea tooling equipment.Oceaneering will provide up to 10 ROVs with associated subsea tooling, engineering and techni-cians under the contract which is firm until December 2020. The contract will support Heere-

ma’s global operations including fixed and floating platform installations, platform decom-missioning, subsea infrastruc-ture and pipeline installations. The ROVs will be installed on Heerema’s deepwater construc-tion vessels Aegir, Thialf and Balder, semisubmersible crane vessels Hermod and Sleipnir (which is due to be delivered from the Jurong shipyard in

late 2018), and other additional support vessels.

ONGC has awarded HAL Offshore a letter of intent for the charter of a multi-support vessel and an ROV for a period of three years.Under the agreement, HAL Offshore has chartered the vessel SEAMEC II, which is equipped

to provide S.B.M maintenance removal and installation services, platform, riser and pipeline repairs, subsea construction and maintenance operations on behalf of ONGC.The total contract value for the three years is USD 33.44 million.

HAL SECURES MULTI-YEAR CONTRACT

OCEANEERING SECURES HEEREMA DEAL

EUROPEAN BUILT SUBSEA DELIVERIES (NEXT THREE MONTHS)SHIP OWNER NAME CHARTERER SHIP YARD TYPE DESIGN MONTH

SIEM OFFSHORE SIEM HELIX 1 PETROBRAS FLENSBURGER WELL INT SALT 307 AUG

SOLSTAD NORMAND MAXIMUS SAIPEM VARD BRATTVAAG DERRICK PIPELAY VARD 319 AUG

TECHNIP DEEP EXPLORER - VARD LANGSTEN DSV VARD 3 06 AUG

SUBSEA 7 SEVEN SUN PETROBRAS MERWEDE PIPELAY 550 OCT

BRAZIL DUO DELAYED

Subsea 7 has announced that the delivery dates of its pipelay vessels Seven Sun and Seven

Cruzeiro have been deferred due to revised operational require-ments. The revised plan means that the Seven Sun is currently estimated to commence its five-year charter to Petrobras by the end of 2016 and the Seven Cruzeiro is expected to commence opera-tions in the first half of 2017. The vessels will work in Brazilian

fields under long-term charters for Petrobras.Initially, the Seven Sun (pictured c/o J Bartels) was due to start operations in the second quarter of 2016, while the Seven Cruzei-ro was expected to commence in the fourth quarter of 2016.Both vessels are equipped with a vertical lay system with a top tension capacity of 550 tonnes.

14 SEABREEZE

RENEWABLES

Prior to the abolition of the UK’s Department of Energy and Climate Change (DECC) in the wake of Teresa May becoming Prime Minister, DECC proposed amending the Contracts for Difference (CfD) Allocation Regulations set in 2014 to extend the delivery years for projects to 31 March 2026.Under the current regulations, allocation rounds and their

associated budgets can only be made available for projects commissioning by 31 March 2020.The proposed amendment would allow the UK Government to undertake allocation rounds for projects commissioning after 31 March 2020 and provide inves-tors with long-term foresight of the delivery framework.DECC advised that without

the amendment, they would be unable to open up allocation rounds for delivery years after 31 March 2020. The consultation, will close on August 8, 2016.Issues formerly dealt with by DECC are now covered by the new UK Department for Business, Energy and Industrial Strategy.

DECC TO AMEND CFD REGULATIONS

SEVEN-MONTH CAMPAIGN FOR POLAR QUEENGC Rieber Shipping has entered into a time charter agreement with Senvion GmbH for the IMR support vessel Polar Queen for a firm period of seven months with options to extend by an additional three months. The charter will commence in spring 2017 and will see the ST-

254-L-CD designed vessel support turbine commissioning by Senvion at the Nordsee One wind farm in the German North Sea. The vessel, which has a length of 111m, a max lift of 150t and ac-commodation for 112 persons, will provide transfer of personnel and cargoes. A motion compensated

gangway will be installed onto the vessel and boat landings in order to serve crew transfer vessels.

SCOTTISH COURT RULES IN FAVOUR OF RSPBThe Scottish Court of Session has ruled in favour of the Royal Society for the Protection of Birds (RSPB) in a legal challenge against four offshore wind projects in the Firth of Forth and Firth of Tay, which already received consent from Scottish ministers in 2014.

After a judicial review of the Scottish Ministers’ approval, the court ordered that they reconsid-er their decisions to approve the four wind farms – Inch Cape, Seagreen Alpha, Seagreen Bravo and Neart na Gaoithe – and address concerns raised by the RSPB.

The RSPB argued that the four projects, totalling 2.284GW of capacity, could have serious im-plications for the wildlife in the area, with thousands of gannets, puffins, kittiwakes and other seabirds predicted to die every year due to the wind farms.

FREEDOM TO RACE BANKSeacat Services’ most recent addition to its fleet, the 23m-long Seacat Freedom, has commenced its term contract on Dong’s Race Bank offshore wind project. The contract is part of a two-

year, four-workboat crew trans-fer agreement awarded to Seacat Services in April to support DONG Energy’s operations off the UK’s East coast.

SEABREEZE 15

RIGS

South Korea’s Hyundai Heavy Industries and Singapore’s Sembcorp Marine Ltd have recently delivered the world’s largest semisubmersible drilling rig and world’s largest jackup drilling rig respectively.

Diamond Offshore semi Ocean GreatWhite has been contracted by BP for a three-year firm charter offshore Australia; while jackup Noble Lloyd Noble has been contracted by Statoil for a four-year firm charter in the UK.

OIL PRICE VS RIG UTILISATION

RIG UTILISATION AND DAY RATESUTILISATION

JUL 2016

JUL 2015

JUL 2014

JUL 2013

JUL 2012

NORTHWEST EUROPE 64.0% 84.5% 97.3% 98.8% 95.5%

SOUTH AMERICA 75.0% 85.2% 94.2% 96.5% 97.9%

US GULF 35.5% 52.5% 70.8% 72.2% 70.0%

RECENT DAY RATE BENCHMARKS LOW (USD) HIGH (USD)

UK HARSH HIGH SPEC JACKUPS 88,600 100,000

UK HARSH STANDARD SEMISUBS 150,000 160,000

NORWAY HARSH HIGH SPEC SEMISUBS 179,000 179,000

SOUTH AMERICA DEEPWATER DRILLSHIPS 235,000 310,000

GLOBAL ULTRA-DEEPWATER SEMISUBS 265,000 308,000

GLOBAL ULTRA-DEEPWATER DRILLSHIPS 190,000 350,000

INACTIVE RIGS NORTHWEST EUROPE

NAME TYPE STATUSBIDEFORD DOLPHIN SS WARM STACK

BORGNY DOLPHIN SS COLD STACK

BREDFORD DOLPHIN SS COLD STACK

COSLINNOVATOR SS WARM STACK

COSLPIONEER SS WARM STACK

DEEPSEA STAVANGER SS WARM STACK

ENERGY ENDEAVOUR JU COLD STACK

ENERGY ENHANCER JU COLD STACK

ENSCO 70 JU COLD STACK

ENSCO 72 JU WARM STACK

GSF GALAXY II JU COLD STACK

GSF GALAXY III JU COLD STACK

GSF MONARCH JU COLD STACK

GSP SATURN JU COLD STACK

HERCULES TRIUMPH JU COLD STACK

ISLAND INNOVATOR SS COLD STACK

MAERSK REACHER JU WARM STACK

MAERSK RESOLUTE JU WARM STACK

NOBLE REGINA ALLEN JU WARM STACK

OCEAN NOMAD SS COLD STACK

OCEAN PRINCESS SS COLD STACK

OCEAN VANGUARD SS COLD STACK

PARAGON B391 JU WARM STACK

PARAGON C462 JU COLD STACK

PARAGON C463 JU WARM STACK

PARAGON C20052 JU COLD STACK

POLAR PIONEER SS COLD STACK

ROWAN GORILLA VII JU WARM STACK

ROWAN NORWAY JU WARM STACK

ROWAN STAVANGER JU WARM STACK

SEDCO 711 SS COLD STACK

SEDCO 712 SS WARM STACK

SEDCO 714 SS COLD STACK

SERTAO DS COLD STACK

SONGA TRYM SS WARM STACK

TRANSOCEAN BARENTS SS WARM STACK

TRANSOCEAN PROSPECT SS COLD STACK

TRANSOCEAN SEARCHER SS COLD STACK

TRANSOCEAN WINNER SS WARM STACK

WEST ALPHA SS WARM STACK

WEST HERCULES SS WARM STACK

WEST NAVIGATOR DS COLD STACK

WEST VENTURE SS COLD STACK

WILHUNTER SS WARM STACK

ASIAN YARDS DELIVER BEHEMOTHS

ENSCO SELLS SIX FOR SCRAPAs a result of the prolonged downturn in the offshore drilling market, Ensco has recently sold six of its rigs for scrap value. The contractor has sold semisubmersibles ENSCO 6003

and ENSCO 6004 (both built in 2004), drillships ENSCO DS-1 and ENSCO DS-2 (both built in 1999), and jackups ENSCO 91 and ENSCO 58 (built in 1980 and 1981 respectively).

Source: IHS-Petrodata

$55.87

$46.99 $47.23 $48.12$44.42

$37.72 $30.80 $33.20

$39.07$42.25

$47.13 $48.48$46.73

84.5%81.9%

79.6%76.9% 75.4% 75.9% 74.2%

72.9%69.2% 68.2% 68.0% 66.3% 64.0%

85.2% 85.7% 85.0% 85.1% 84.6% 84.0% 83.2% 83.1% 82.3%78.6% 77.1%

75.2% 75.0%

52.5%47.9%

45.5% 46.9%44.5% 44.4%

42.4%39.2%

39.1% 39.9% 38.1% 35.8% 35.5% $25

$30

$35

$40

$45

$50

$55

$60

$65

$70

$75

$80

30%

40%

50%

60%

70%

80%

90%

100%

Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16Average Brent Crude US$ / Bbl Northwest Europe Rig UtilisationSouth America Rig Utilisation US Gulf Rig Utilisation

HEADING Quiatis imaximilitem num enis porum ne dolles qui rerum id min corepta dolo quo conet il id quisto que voluptatus eatis re ventur? Hilibust quis as mincias peribustis qui dolorit officatus aut preiumquas qui iuscimu sapelest, esto odio. Itatecum cus acerum ipidunture corporpores et int faccum remperi onsequi

16 SEABREEZE

CONUNDRUM CORNERThe answer to last month’s teaser :-

The correct answer was :- 14

This month, our poser is as follows:

What are the most northern, southern, eastern and western U.S. States?

Answers back to [email protected] for a chance to win a bottle of wine.

THE SEABREEZE ARCHIVEFor the current or archive copies of Seabreeze go to: http://www.seabrokers.co.uk/ - see under Shipbroking / Market Reports. If you wish to Subscribe or Unsubscribe please contact: [email protected]

CONUNDRUM CORNER, DUTY PHONES

SEABROKERS GROUP CONTACTSSEABROKERS HEAD OFFICEForusbeen 78 - 4033 Stavanger - Norway Tel: (+47) 51 80 00 00 Internet: www.seabrokers-group.com SEABROKERS CHARTERING AS - STAVANGERDuty Telephone ++47 51 815400 (24 Hrs) E-mail [email protected]

SEABROKERS LTD - ABERDEENDuty Telephone ++44 1224 747744 (24 Hrs) Duty Mobile ++44 7802 304129E-Mail [email protected]

SEABROKERS BRAZIL LTDA - RIO DE JANEIRO Duty Telephone ++55 21 3505 4200 (24 Hrs) E-mail [email protected] SEABROKERS PTE LTD -SINGAPORE Telephone ++65 6224 6062 or 0951E-mail [email protected]

SECURALIFT AS - STAVANGERTelephone ++47 51 800000 E-mail [email protected]

SEA SURVEILLANCE AS - BERGEN Telephone ++47 55 136500E-mail [email protected]

SEABROKERS EIENDOM AS - STAVANGER Telephone ++47 51 800000 E-mail [email protected] SEABROKERS SERVICES AS - STAVANGER Telephone ++47 51 800000E-mail [email protected]

SEABROKERS ENTREPRENØR SERVICE AS - STAVANGERTelephone ++47 51 800000 E-mail [email protected]

SEABROKERS KRAN & TRANSPORT AS - STAVANGER Telephone ++47 51 800000E-mail [email protected]

THANKS TO NAOWe would like to thank Nordic American Offshore and the crew of the NAO Prosper for taking the time out to show our summer intern Laura Duthie around the vessel while they were berthed in Aberdeen recently.

Laura is a second year Naval Architecture stu-dent at the University of Strathclyde in Glasgow, and she is spending her summer with Seabrokers to expand her knowledge of offshore vessels. Laura will be with Seabrokers for three more weeks, so any further offers of ves-sel visits from North Sea owners would be greatly appreciated before she returns to her studies.

july 2016 solstad & rem offshore merge as ...72, maersk reacher, rowan gorilla vii, safe...

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