MARCH 2016 OSV OWNERS EYE ALTERNATIVE MARKETS€¦ · drilling operations with Ocean Rig...

MARCH 2016

OSV OWNERS EYEALTERNATIVE MARKETS

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-UPOSV OWNERS LOOKING TO DIVERSIFY The North Sea spot market was largely uneventful in March, with conditions remaining in charterers’ favour. There were sporadic rate spikes in the AHTS market - due to the number of vessels in layup, it only takes a small number of requirements to materialise in quick succession for the market to tighten. However, those spikes were short-lived, with average rates coming in around the GBP 16,000-17,000 level.

The PSV market remained subdued. There are more than 80 PSVs laid up in Europe, but the market remains oversupplied. With the majority of fixtures coming in around the GBP 3,000-5,000 level, it is nigh on impossible for owners to make any sort of profit on spot charters.

This problem is by no means exclusive to the North Sea, with OSV owners struggling around the globe. For this reason, many are now looking to diversify. Bourbon Offshore, for example, has made a major investment in ethane gas transportation by acquiring the ethane activities of JACCAR Holdings, a private equity firm and major shareholder of Bourbon. The renewables sector is also drawing interest from OSV owners, particularly the offshore wind market. This edition of Seabreeze includes a new Renewables section (see p.14 for details).

OIL PRICES MAY “HAVE BOTTOMED OUT”

NORWAY LAUNCHES APA 2016Norway’s Ministry of Petroleum and Energy has launched its latest licensing round for mature areas on the Norwegian Continental Shelf: the Awards in Predefined Areas (APA) 2016.

The predefined area for this latest round has been expanded with 24 new blocks in the Norwegian Sea and 32 additional blocks in the Barents Sea. There are several blocks available around the Aasta Hansteen field in the Norwegian Sea, with the blocks on offer in the Barents Sea primarily located around the Alta, Gotha and Johan Castberg discoveries. Applications are due in September 2016, with new

production licences expected to be awarded early in 2017.

Interest in acreage offshore Norway remains strong, despite 2015 turning out to be one of the poorest on record in terms of exploration success. Bloomberg analysis has suggested that less than 5 million barrels of oil and gas were discovered on average for each exploration well drilled last year, the lowest ratio since 2006. Nevertheless, the Barents Sea continues to draw significant interest, with Lundin CEO Alex Schneiter concluding that the “blocks are probably the best acreage being offered in Norway since the 1990s.”

At long last, there may be some light at the end of the tunnel for stakeholders in the offshore oil & gas industry. Neil Atkinson (the head of the International Energy Agency’s Oil Market Division) has projected the view that “oil prices appear to have bottomed out.”

His rationale was expanded with the suggestion that prices are “expected to grow throughout 2016 and into 2017, reflecting expectations that the market is going back into balance in 2017.”

This view was tempered by the recognition that any price rally may be capped if U.S. shale

drillers ramp up production again if oil remains above USD 40-50 per barrel for a sustained period of time. Nevertheless, it makes a pleasant change to see some positivity returning to the market, with the IEA projecting that oil prices are expected to reach USD 80 per barrel again by 2020.

This notion of the market bottoming out was mirrored by Bourbon Offshore, whose recent market outlook suggested that “2016 will likely see a low point in the cycle for the demand of offshore vessels with a slight rebound in the second half of the year.”

4 SEABREEZE

OSV MARKET ROUND-UP

Total E&P has awarded contract extensions to Eidesvik Offshore that will keep PSVs Viking Lady (pictured c/o H. Otneim) and Viking Athene occupied offshore Norway for an additional 150 days and 45 days respectively.

The vessels were previously

providing support for Total’s drilling operations with Ocean Rig semisubmersible Leiv Eiriksson. They have now been kept on by Total to support its drilling operations with jackup Maersk Gallant at the Solaris wildcat exploration well in the Norwegian North Sea.

Island Offshore has confirmed that PSV Island Commander will be replacing the Island Dragon for the remainder of a long-term contract with Lundin Norway at the Edvard Grieg field. The contract, which has a minimum duration of 900 days, commenced following the delivery of Island Dragon in June 2014, with a scheduled end date in December 2016.

The vessel change was initiated to accommodate Lundin’s requirement for a vessel with a larger deck area. The Island Commander (pictured c/o S. Boulter) has a deck area of 1,008m² while the Island Dragon has a deck area of 800m². The

Island Commander has now been equipped with firefighting equipment and prepared for standby duties. Due to the weak

trading conditions in the PSV market, the Island Dragon (as well as the Island Duchess) has now been laid up indefinitely.

EIDESVIK DUO KEPT ON BY TOTAL

ISLAND COMMANDER TAKING OVER LUNDIN CHARTER

Zennor Petroleum has selected PSV E.R. Georgina to provide support for a one-well plus two one-well options drilling cam-paign offshore the UK. Zennor is planning to spud the firm well of the programme with Transocean semisubmersible Sedco 704 in

April. This will be an appraisal well at the Finlaggan discovery.

E.R. Georgina (pictured c/o P. Grimes) is a 2010-built UT 776 CD PSV. She has a deck area of 1,000m², deadweight of 4,488t and accommodation for 25 persons.

ZENNOR SELECTS E.R. OFFSHORE PSV

SEABREEZE 5

OSV MARKET ROUND-UP

Topaz Energy & Marine has been awarded contract extensions with BP Exploration (Caspian Sea) Limited for the long-term charter of 14 vessels.

The contracts are for a firm period of five years with two further one-year options, and

will potentially see the vessels continue working for BP until 2023 if the options are exercised.

The vessels will primarily be providing support for BP at the Azeri-Chirag-Gunashli (ACG) and Shaz Deniz II fields offshore Azerbaijan.

Global Offshore PSV Olympus has departed the North Sea spot market, and she has been mobilised to the Black Sea. The vessel will be providing term support alongside two other Global Offshore PSVs (Ben Nevis and Makalu) for Total offshore Bulgaria.

Total is preparing to commence a drilling campaign with drill-ship Noble Globetrotter II under sublet from Shell. The Ben Nevis and Makalu PSVs had previously been providing support to this rig while it was working for Shell in West Africa.

Woodside Energy Ltd. has awarded contracts to Siem Offshore and Farstad for the long-term charter of two AHTS vessels offshore Australia.

Siem received an 18-month plus options contract for Siem Topaz. Operations are scheduled to commence in May 2016. This fixture has seen the vessel depart the North Sea spot market; she is currently en route to Australia.

Meanwhile, Farstad received a 17-month plus options contract for Far Senator (pictured c/o O. Halland). This charter will begin in June 2016. The Far Senator is currently in Singapore.

The Siem Topaz is a 2010-built VS 491 CD vessel. She has a bollard pull of 306t and accom-modation for 60 persons.

The Far Senator is a 2013-built UT 731 CD vessel. She has a bollard pull of 258t and accom-modation for 40 persons.

GLOBAL OFFSHORE TRIO SUPPORTING BLACK SEA CAMPAIGN

BP AWARDS TERM CONTRACTS TO 14 TOPAZ VESSELS

SIEM AND FARSTAD VESSELS HEADING FOR AUSTRALIA

6 SEABREEZE

OSV RATES & UTILISATION

NORTH SEA SPOT AVERAGE UTILISATION MARCH 2016

TYPE MAR 2016 FEB 2016 JAN 2016 DEC 2015 NOV 2015 OCT 2015

MED PSV 70% 72% 65% 78% 77% 63%

LARGE PSV 67% 80% 73% 85% 78% 70%

MED AHTS 42% 29% 45% 62% 33% 38%

LARGE AHTS 62% 55% 57% 69% 67% 49%

MARCH 2016 - DAILY NORTH SEA OSV AVAILABILITY

NORTH SEA AVERAGE RATES MARCH 2016

CATEGORYAVERAGE RATE

MARCH 2016AVERAGE RATE

MARCH 2015% CHANGE MINIMUM MAXIMUM

SUPPLY DUTIES PSVS < 900M2 £4,183 £3,687 +13.45% £2,900 £8,000

SUPPLY DUTIES PSVS > 900M2 £4,104 £4,886 -16.00% £2,916 £6,000

AHTS DUTIES AHTS < 18,000 BHP £16,000 £15,578 +2.71% £7,750 £50,000

AHTS DUTIES AHTS > 18,000 BHP £16,607 £18,184 -8.67% £7,750 £40,000

RATES & UTILISATION

DEPARTURES - NORTH SEA SPOT

BOULDER MEDITERRANEAN

FAIRMOUNT ALPINE SOUTH AMERICA

OLYMPUS BLACK SEA

SIEM TOPAZ AUSTRALIA

SPOT MARKET ARRIVALS & DEPARTURES MARCH 2016

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

ARRIVALS - NORTH SEA SPOT

CARLO MARTELLO EX WEST AFRICA

HAVILA BORG EX WEST AFRICA

STRIL MAR NEWBUILD

VOS PARTNER NEWBUILD

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1012141618202224262830323436

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

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 £- £- £- £- £- £- £- £- £-

Rig Moves

£-

£10,000

£20,000

£30,000

£40,000


PSVs > 900M2

£-

£5,000

£10,000


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 £- £- £- £-

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


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


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


PSVs > 900m²

£-

£2,500

£5,000

£7,500

£10,000


PSVs < 900m²

£-

£5,000

£10,000

£15,000

£20,000

£25,000

£30,000

PSVs < 900m² PSVs > 900m² AHTS < 18,000 bhp AHTS > 18,000 bhp2015 £4,701 £5,800 £12,665 £18,4122016 £4,803 £4,529 £18,821 £25,577

Average Day Rates To Month (March 2016)

8 SEABREEZE

FEATURE VESSEL

Simon Møkster Shipping has accepted delivery of newbuild PSV Stril Mar from the Astilleros Gondán Shipyard in northern Spain.

STRIL MAR SPECS:

Design: UT 776 WP PSVOverall Length: 92.8mBreadth: 20.0mDeck Area: 1,030m²Deadweight: Approx 5,000tDeck Cargo: 2,700tDeck Strength: 10 t/m²Accommodation: 25 persons

STRIL MAR

The vessel was built to Rolls Royce’s UT 776 WP (Wave Piercing) design. This is the same design as the Stril Luna, but the Stril Mar also comes with a FiFi II system with monitors installed at the stern.

Stril Mar (pictured c/o Møkster above and O. Halland to the right) has a length of 92.8m, breadth of 20.0m and deck area of 1,030m². She has a deadweight of 5,000t and accommodation for 25 persons. The vessel can operate in harsh

environments, with Winterization and Ice 1C notations. She is also classed as a Standby vessel, equipped to rescue up to 150 survi-vors in the event of an emergency.

The Stril Mar has now been mobilised to Norway. Her maiden work scope was to replace another Møkster vessel, the Strilmøy, supporting ExxonMobil for a couple of weeks. She has also been awarded a term charter to provide supply and standby support to Eni in the Barents Sea from June.

SEABREEZE 9

OSV NEWBUILDINGS, S&P

Wilson Sons is mobilising a newbuild PSV from China to Brazil following her recent delivery by POET Shipbuilding & Engineering PTE Ltd.The DP2 vessel, to be named Pardela, was designed by Focal Marine & Offshore. She has a length of 76.0m, a breadth of

17.6m and a deck area of 700m². Pardela has a deadweight of 3,570t and an accommodation capacity for 48 persons, and she is equipped with two 570 kW Kawasaki bow thrusters.Pardela is expected to conclude her mobilisation from China to Brazil in April.

Vroon Offshore has accepted delivery of newbuild PSV VOS Prince from the Fujian Southeast Shipyard in China.Built to a KCM design, the VOS Prince is the fourth of eight sister vessels being built for Vroon at Fujian Southeast. The vessels have SPS notation and are

equipped with full under-deck supply capabilities, including stainless steel tanks for the transport of methanol.VOS Prince has a length of 80.0m, breadth of 18.4m and a deck area of 720m². She has a deadweight of 3,750t and accom-modation for 52 persons.

Construction of GulfMark Offshore’s newbuild PSV North Barents has now concluded at the Simek Shipyard in Norway, and the vessel commenced sea trials in March.However, the North Barents will be laid up at Simek until GulfMark are ready to accept

delivery. The estimated delivery date is currently scheduled for January 2017, however this remains subject to change.The North Barents was built to the ST-216 Arctic design. She has Ice-1B notation, a deadweight of more than 5,000t and a deck area of more than 1,000m².

WILSON SONS NEWBUILD EN ROUTE TO BRAZIL

VOS PRINCE DELIVERED IN CHINA

CONSTRUCTION OF NORTH BARENTS COMPLETE

Grupo CBO held a naming ceremony in Itajaí, Brazil, on March 9th for newbuild PSV CBO Oceana.Built to Ulstein’s PX 105 design at Estaleiro Oceana, CBO Oceana fulfils the criteria for Petrobras’ PSV 4500 requirements. The vessel was ordered following the

sixth round of Petrobras’ Fleet Renewal process (Prorefam); she has been contracted by Petrobras for a firm period of six years.CBO Oceana has a length of 90.0m, a breadth of 19.0m, a deadweight of 4,700 tonnes and accommodation capacity for 23 persons.

CBO OCEANA CHRISTENED IN ITAJAÍ

10 SEABREEZE

OSV NEWBUILDINGS, S&P

North Star Shipping, part of the Craig Group, has mobilised new-build ERRV Grampian Fortress to the North Sea following her delivery by Astillero Balenciaga in northern Spain.The Grampian Fortress is the first of two sister vessels being built to the IMT 958 design, with

the Grampian Freedom to follow later this year.The two vessels are equipped with daughter craft and fast rescue craft. They are also able to transfer and store limited deck cargo, and can provide offshore installations with fresh water and fuel if required.

Sentinel Marine has accepted delivery of newbuild ERRV Forties Sentinel from the Fujian Southeast Shipyard in China.Forties Sentinel is the last of four sister vessels that Fujian was building for Sentinel, with the Cygnus Sentinel, Fastnet Sentinel and Lundy Sentinel all

currently working in the North Sea.Forties Sentinel has a length of 61m, a breadth of 15m and a clear deck area of 320m². She has an accommodation capacity for 25 persons, and comes equipped with daughter craft and fast rescue craft.

GRAMPIAN FORTRESS MOBILISED TO NORTH SEA

FORTIES SENTINEL DELIVERED IN CHINA

The Tersan Shipyard in Turkey has launched Troms Polaris, an MPSV that it is building for Tidewater.The vessel, which will be operated by Troms Offshore, is being built to Wärtsilä’s VS 4530 design. She will have a deck area of 1,040m² and accommodation

for 60 persons. She will have Ice-1A and De-Ice notations, making her suitable for operations in the Barents Sea and other Arctic areas. The vessel will also be prepared for advanced subsea operations, with a helideck and 150t active heave compensated crane easily fitted when required.

TROMS MPSV LAUNCHED IN TURKEY

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

CBO OCEANA ULSTEIN PX 105 PSV GRUPO CBO SOUTH AMERICA

FORTIES SENTINEL 61M KCM MULTI ROLE ERRV SENTINEL MARINE TBC

GRAMPIAN FORTRESS IMT 958 ERRV NORTH STAR SHIPPING TBC

PARDELA 76M FOCAL MARINE PSV WILSON SONS ULTRATUG OFFSHORE TBC

STRIL MAR ROLLS ROYCE UT 776 WP PSV SIMON MØKSTER SHIPPING NORTH SEA

VOS PRINCE 80M KCM PSV VROON OFFSHORE TBC

SEABREEZE 11

SUBSEA

Det norske Oljeselskap is potentially walking away from a second field offshore Norway, following its recent decision to decommission the Jette field after just three years of production.The operator is now also contem-plating scrapping its development plan for Vette (Bream), which was acquired by Det Norske when it purchased Premier Oil’s

Norwegian business in December 2015 for USD 120 million.Premier had previously envi-sioned a field development with an FPSO for Vette. However, due to the sharp decline in oil prices, the final investment decision (FID) had been delayed until the end of 2015. This FID did not materialise due to Det Norske’s acquisition of Premier.

Det norske has now put the field development in doubt, citing the low oil price and a lower reservoir potential at Vette for the potential cancellation of the project.Det norske is the operator of Vette with a 50% stake, with Kufpec (30%) and Tullow (20%) holding the remaining interests in the field.

NEWBUILD HAVYARD SUBSEA VESSEL CANCELLED

SUBSEA MARKET ROUND-UP

The Norwegian Petroleum Safety Authority (PSA) has given

Det norske Oljeselskap per-mission to undertake manned underwater operations offshore Norway between January 1 and December 31, 2016. The consent covers work at Bøyla, Boa, Volund, Øst Kamele-on, Viper Kobra and the Alvheim FPSO. Under the framework

agreement, Technip & Susbea 7 will carry out the work. Technip will utilise diving support vessel Deep Arctic and light diving craft Seahunter, while Subsea 7 will be using dive support vessels Seven Falcon and Seven Atlantic. The consent applies to operations down to 130m.

DET NORSKE RECEIVES PSA APPROVAL

The Havyard Group has con-firmed that an unconfirmed buyer, rumoured to be Marine Platforms, has cancelled its order for a Havy-ard 858 L WE subsea vessel due to the challenging offshore market. The NOK 700 million order for the design and construction of the vessel was originally placed in

July 2015 with delivery scheduled for second quarter 2017. Delivery was then delayed in October 2015 until the second quarter of 2018, with an option to cancel in March 2016. The order was cancelled on March 9th, with a compensation payment made to Havyard.The newbuild was due to be

equipped with DP3, accommoda-tion for 140 persons, and 250t & 30t cranes.

NORMAND SUBSEA TO REMAIN WITH SUBSEA 7Subsea 7 has declared an option on its charter agreement with Solstad Offshore for its IMR support vessel Normand Subsea, keeping it on hire until at least December 2019. The three-and-a-half year

extension will commence in June 2016, with an option for Subsea 7 to extend by an additional two years. Subsea 7 has had the 2009-built vessel on charter since its delivery from the Flekkefjord yard in Norway.

The 113m long vessel is currently on charter to Shell under a long-term IMR framework agreement, which will keep it busy in the North Sea until the third quarter of 2018.

12 SEABREEZE

SUBSEA

Boa Offshore has secured two contracts offshore West Africa, worth up to 130 days of work including options.The OCV Boa Subsea will be utilised for both campaigns, with the first new contract commencing at the end of March. Under this charter the

VS 4201-designed vessel is undertaking a mooring chain replacement on Total’s Unity FSO, offshore Nigeria, on behalf of EMAS AMC.Furthemore, the 2004-built Boa Deep C was also awarded a seven-month contract (including options) in South America which

began in early March. The Boa Deep C has a max lift of 250t and accomodation for 100 persons.

BOA SECURES TRIO OF FIXTURES

Statoil has exercised an option with Ocean Installer for flexible jumper replacement at the Vigdis field offshore Norway.The exercised option covers the previous agreement between the two companies known as the SLMP Marine Installation contract, which was signed in

December 2015 to cover riser re-placement operations at the Troll C field. The derrick pipelay vessel Normand Vision will be used for the campaign with offshore work scheduled to take place in June.The VARD 306 L-designed vessel was built in 2014 and is equipped with a 3,000t carousel, 150t

vertical lay spread system and a 400t AHC crane.

OCEAN INSTALLER TO WORK ON VIGDIS

NPCC LOOKS TO BOSKALIS FOR DREDGINGThe National Petroleum Construc-tion Company (NPCC) has award-ed Boskalis a dredging contract, which recently commenced offshore Abu Dhabi in the UAE.The work scope covers dredging and backfilling, relating to the

installation of an offshore gas pipeline of the Abu Dhabi National Oil Company, as well as to an existing offshore gas pipeline. The work will be carried out in phases and completion is expected during the second half of 2017.

SUBSEA 7 CONTINUES WITH FLEET RESIZING

Subsea 7 continues with its fleet reduction programme where

they originally planned to re-move 12 vessels from their active fleet by early 2016.By the end of March, they had removed 13, an increase of one from the original target. Of the 13, the seven owned vessels which are stacked include Seven Navica, Seven Discovery, Rockwater-1, Seven Inagha, Seven Petrel, Seven Antares and Seven Waves,

which is currently undergoing repairs to its lay tower. Mean-while, the five chartered vessels returned to owners include the DOF-owned Skandi Neptune, Skandi Seven and Skandi Skansen, Havila-owned Havila Subsea, and Eidesvik-owned Acergy Viking. Additionally, Subsea 7 have scrapped the 1979-built Seven Polaris.

SEABREEZE 13

SUBSEA

BP has awarded Subsea 7 a two-year extension to its existing agreement for the provision of subsea construction and IMR services in the North Sea. The contract is now firm until 2019 and Subsea 7 will provide

maintenance at the Schiehallion, Loyal, Foinaven and East Foina-ven fields west of Shetland. Project management and engi-neering work will be managed from Subsea 7’s Aberdeen office.

Harkand has been awarded a multi-million pound contract with Maersk Oil to provide subsea support services, in-cluding commissioning support for the operator’s Flyndre oil field development in the UK North Sea. Harkand will utilise diving support vessels Harkand

Atlantis and Harkand da Vinci to carry out choke valve replace-ment work and umbilical tie-in operations.The MT 6022 XL-designed sister vessels are equipped with twin bell 18-man saturation dive systems, with accommodation for 120, and a 140t AHC crane.

HARKAND TO SUPPORT MAERSK OIL

BP RETAINS SUBSEA 7 FOR IMR SERVICES

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

FTAI IES PIONEER IES ENERGY - KLEVEN VERFT IMR MT 6015 APR

ISLAND VENTURES II ISLAND VENTURE - ULSTEIN OCV SX165 APR

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

SUBSEA 7 SEVEN SUN PETROBRAS MERWEDE PIPELAY 550 APR

TECHNIP SKANDI ACU PETROBRAS VARD SOEVIKNES PIPELAY VARD 3 05 APR

VOLSTAD GRAND CANYON III HELIX KLEVEN VERFT OCV ST-259-CD MAY

SAPURAKENCANA SAPURA ESMERALDA PETROBRAS MERWEDE PIPELAY - MAY

SIEM OFFSHORE SIEM HELIX 2 PETROBRAS FLENSBURGER WELL INT SALT 307 MAY

MCDERMOTT WINS MIDDLE EAST PROJECTMcDermott has secured a contract with an upstream oil and gas operator for an offshore project in the Middle East. The work scope includes engineering, procure-

ment, fabrication, transportation and installation of offshore pipe-lines. The project is expected to finish by the end of 2016. Market sources suggest that the contract

is in relation to ADMA-OPCO’s (Abu Dhabi Marine Operating Company) Umm Shaif pipeline replacement project, offshore Abu Dhabi in the UAE.

MAERSK OIL SECURES OLYMPIC ELECTRAMaersk Oil has awarded Olympic Shipping a 100-day accommo-dation contract commencing in

early April. Olympic Shipping will utilise PSV/IMR vessel Olympic Electra for the campaign. The

operator has additional options to extend the contract past the 100-day firm period.

14 SEABREEZE

RENEWABLES

Saltwater Engineering has designed a new purpose-built SOV for the offshore wind market, having been contracted by Off-shore Marine Management and Rederij Groen, which formed a partnership to bring a new O&M vessel to the market.The SOV design can deliver both topside preventative maintenance

services and subsea cable repair, with accommodation for a total of 60 persons, a heave compensated deck crane, two daughter crafts and workshops to provide service of the in-built diving spread equipment and the in-built ROV control and personnel. Additionally, it will have the ability to carry over 10 containers for

spares and supplies to potential offshore accommodation stations. The new SOV is scheduled to be delivered in late 2017.

SALTWATER DESIGNS NEW SOV

V. GROUP ACQUIRES BIBBY SHIP MANAGEMENTConsolidation in ship management has taken place with V.Group ac-quiring Bibby Ship Management, part of the Bibby Line Group.Bibby Ship Management services all types of vessels, mainly in

the offshore vessel market. It also provides extensive crew management solutions, technical support services, marine travel, marine surveying, training and recruitment services.

BOSKALIS TO BUY VOLKERWESSELS’ OFFSHORE BUSINESS

Boskalis has signed a letter of intent to acquire VolkerWessels’ maritime and offshore wind energy related activities.

The deal will include the brands VBMS (which is a 50/50 joint venture between Boskalis & VolkerWessels), Stemat and Volker Stevin International (VSL). Stemat has specialist vessels including a cable-laying vessel and multipurpose vessels, while VSL focuses on construction of offshore foundations and maritime constructions. The deal is expected to close during the second quarter

of 2016. VSL & Boskalis acquired two large offshore wind park projects, Wikinger and Veja Mate respectively in a joint venture, resulting in Boskalis going forward as the sole owner of the projects.Peter Berdowski, CEO of Boskalis, commented: “For the coming years, we expect demand for offshore wind energy to further increase both in Northwest Europe and beyond.”

SIEM SECURES W2W CAMPAIGNOcean Breeze GmbH has awarded Siem Offshore a contract for walk-to-work service operations on the Bard Offshore 1 wind farm within the German Bight sector of the North Sea. Siem will deploy the IRM vessel Siem Marlin followed by the PSV

Siddis Mariner for the W2W campaign. The firm charter period is 700 days, with additional options to extend the charter period by up to three years.Bard Offshore 1 comprises 80 wind turbines with a total capacity of 400MW.

SEABREEZE 15

RIGS

Ocean Rig has received a contract from Lundin Norway AS for a three-well plus options charter of semisubmersible Leiv Eiriksson.The rig, which is currently being put through its five-yearly SPS in

Ølen, is scheduled to commence operations with Lundin in the Barents Sea in the third quarter of 2016.This contract will provide Ocean Rig with an estimated backlog of approximately USD 23.6 million.

OIL PRICE VS RIG UTILISATION

RIG UTILISATION AND DAY RATESUTILISATION

MAR 2016

MAR 2015

MAR 2014

MAR 2013

MAR 2012

NORTHWEST EUROPE 69.2% 92.2% 98.9% 97.8% 94.3%

SOUTH AMERICA 83.4% 93.5% 96.4% 97.8% 97.7%

US GULF 39.4% 54.9% 71.2% 71.7% 66.2%

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

UK HARSH HIGH SPEC JACKUPS 100,000 180,000

UK HARSH STANDARD SEMISUBS 150,000 160,000

NORWAY HARSH HIGH SPEC SEMISUBS 170,000 179,000

SOUTH AMERICA DEEPWATER DRILLSHIPS 235,000 367,000

GLOBAL ULTRA-DEEPWATER SEMISUBS 250,000 380,000

GLOBAL ULTRA-DEEPWATER DRILLSHIPS 230,000 367,000

INACTIVE RIGS NORTHWEST EUROPE

NAME TYPE STATUSBORGNY 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

GSF GALAXY II JU COLD STACK

GSF GALAXY III JU COLD STACK

GSF MONARCH JU COLD STACK

GSP SATURN JU WARM STACK

HERCULES TRIUMPH JU WARM STACK

ISLAND INNOVATOR SS WARM STACK

NOBLE REGINA ALLEN JU WARM STACK

OCEAN NOMAD SS COLD STACK

OCEAN PRINCESS SS COLD STACK

OCEAN VANGUARD SS COLD STACK

PARAGON C20052 JU WARM STACK

PARAGON C462 JU WARM STACK

POLAR PIONEER SS COLD STACK

ROWAN STAVANGER JU WARM STACK

SCARABEO 5 SS WARM STACK

SEDCO 711 SS COLD STACK

SEDCO 714 SS COLD STACK

SERTAO DS COLD STACK

SONGA TRYM SS WARM STACK

TRANSOCEAN ARCTIC SS WARM STACK

TRANSOCEAN BARENTS SS WARM STACK

TRANSOCEAN JOHN SHAW SS COLD STACK

TRANSOCEAN PROSPECT SS COLD STACK

TRANSOCEAN SEARCHER SS COLD STACK

WEST NAVIGATOR DS COLD STACK

WEST VENTURE SS COLD STACK

WILHUNTER SS WARM STACK

LUNDIN PICKS LEIV EIRIKSSON

PETROBRAS EXTENDS SEADRILL CONTRACTPetrobras has awarded an 18-month contract extension to Seadrill rig West Tellus. The extension period will commence in April 2018, keeping the ultra-deepwater drillship con-tracted offshore Brazil until at

least October 2019.The extension, which came with an associated agreement to reduce the day rate on the rig’s current contract period, adds approximately USD 32 million to Seadrill’s backlog.

Source: IHS-Petrodata

$55.79$59.39

$64.56$62.35

$55.87

$46.99 $47.23 $48.12$44.42

$37.72

$30.80$33.20

$39.76

92.2% 91.8%

90.1%87.7%

84.5%81.9%

79.6%76.9% 75.4% 75.9%

74.2% 72.9%69.2%

93.5% 93.5%

89.5%84.4%

85.2% 85.7% 85.0% 85.1% 84.6% 84.0% 83.2% 83.1% 83.4%

54.9% 53.4% 51.9% 52.0% 52.5%47.9%

45.5% 46.9%44.5%

44.4% 42.4%39.2%

39.4%$25

$30

$35

$40

$45

$50

$55

$60

$65

$70

$75

$80

30%

40%

50%

60%

70%

80%

90%

100%

Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 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

USD 210 MILLION DRILLSHIP SALEUltra-deepwater drillship Deepsea Metro II has been sold by creditors at auction for just USD 210 million. The 2011-built Gusto MSC P10000 rig has been acquired by Chalfont Shipping Ltd. Deepsea Metro II has been stacked in Curacao in the Caribbean since the summer of 2015 following the completion of a Petrobras contract offshore Brazil. She had been owned by Chloe Marine Corporation Ltd before first priority lenders took possession in November.

CONUNDRUM CORNERThe answer to last month’s teaser :-

The letters of a precious metal and two precious stones are merged together below. What are they?

The correct answer was :- Platinum, Amethyst and Sapphire

This month, our poser is as follows:

The sum of each two adjacent squares gives the number above. What number should replace the question mark?

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

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MARCH 2016 OSV OWNERS EYE ALTERNATIVE MARKETS€¦ · drilling operations with Ocean Rig...

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