SEPTEMBER 2016

MORE VESSELS TO BE
SOLD OR SCRAPPED AS
OVERSUPPLY PERSISTS

CONTENTS
3

OSV MARKET ROUND-UP

ABOUT SEABROKERS GROUP

OSV AVAILABILITY, RATES &

UTILISATION - NORTH SEA

MONTHLY OSV SPOT RATES -

NORTH SEA

FEATURE VESSEL

The Seabrokers Group was established in 1982. We

provide a unique and varied range of services to
clients. The Seabrokers Group has an experienced
workforce within Shipbroking, Real Estate,
Facilities Management, Construction, Cranes &
Transportation, Sea Surveillance and Safe Lifting
Operations. Our head office is situated in Stavanger, but we also have offices in Aberdeen, Bergen,
Rio de Janeiro and Singapore.

9 OSV NEWBUILDINGS, CONVERSIONS,

SALE & PURCHASE
11 SUBSEA
14 RENEWABLES

The Seabrokers Group is different and we are

proud of this fact. Our information, experience and
knowledge provide us with the ability to perform
in our diverse business areas.
Seabrokers Chartering AS and Seabrokers Ltd are
certified by DNV GL in line with Management
System Standard ISO 9001:2008.

15 RIGS
16 CONUNDRUM CORNER

& DUTY PHONES

Production and Administration:

Seabrokers Ltd, Aberdeen
For your free copy of
Seabreeze, email:
chartering@seabrokers.co.uk

SHIPBROKING

REAL ESTATE

SECURALIFT

FACILITY MANAGEMENT

SEA SURVEILLANCE

ENTREPRENEUR

YACHTING

CRANES & TRANSPORTATION

The Seabreeze Monthly Market Report

is distributed worldwide through
our offices in Aberdeen, Stavanger,
Singapore and Rio de Janeiro.

OUR OFFICES:
STAVANGER BERGEN
ABERDEEN
RIO DE JANEIRO

Seabrokers Group 2016

www.seabrokers-group.com

SKIEN
SINGAPORE

OSV MARKET ROUND-UP

SPOT RATES BACK
BELOW BREAK-EVEN
IN NORTH SEA

PETROBRAS RELEASES LATEST STRATEGIC PLAN

Spot rates in the North Sea PSV

market dropped back below
vessel operating costs for many
of Septembers fixtures, with
an increase in availability
prompting owners to drastically
reduce their rates. The painful
sight of fixtures coming in below
GBP 3,000 (NOK 30,750) was an
all-too-common occurrence.

For the first indicator, Petrobras

has set a target to reduce its
Reportable Accident Rate from
2.2 accidents per one million
man hours in 2015, to 1.4 over
the next two years, and dropping
further to 1 accident per one
million man hours in 2021.

There are now circa 90 PSVs

laid up across Northwest
Europe but the market remains
oversupplied, and this has
worsened as we move towards
the winter months. In terms of
regional drilling activity, there
were 18 less rigs under contract
in September 2016 (58) than there
were in September 2015 (76),
which was already a reduction of
10 rigs from September 2014 (86),
and there is simply not enough
work left to occupy the number
of vessels in the market.
There have been some positive
signs recently, with an increase
in the number of tenders
for future drilling or plug
& abandoment campaigns.
However, any OSV market
recovery will be a slow process
due to the vast oversupply.
Unfortunately, many vessels may
have to be scrapped or sold into
other sectors to bring the market
back into balance in the mediumterm.

Petrobras has released its 20172021 Strategic Plan, with a focus

on two main indicators.

Secondly, Petrobras financial

target determines that the
companys net debt should be
equivalent to 2.5 times its cash
generation in 2018. For its 2015
balance sheet, Petrobras net debt
was 5.3 times its cash generation
levels. In order to achieve this,
Petrobras will maintain an
intense pace of partnerships
and divestitures.

Within its latest Strategic Plan,

Petrobras has indicated that it is
planning to invest a total of USD
74.1 billion over the 2017-2021
period, a 25% reduction from the
USD 98.4 billion projection that
had been laid out in its 2015-2019
Strategic Plan.
Of the USD 74.1 billion capital
expenditures identified in this
latest projection, 82% (USD
60.6 billion) will be allocated
to exploration and production
(E&P).
Around two-thirds of Petrobras
E&P activities will be targeted
at its pre-salt concessions,
prioritising the development of
deep-water production with a
focus on strategic partnerships,
combining technical competencies and technologies.

MAERSK TO SPLIT INTO TWO DIVISIONS

A.P. Mller Mrsk A/S is to split
its operations into two distinct
entities: 1. Transport & Logistics,
and 2. Energy.
A.P. Mller Mrsk A/S will
become an integrated transport
and logistics company with
digitalised and individualised
customer solutions, while the
companys oil and oil related
businesses, either individually
or in combination, will all be
separated from A.P. Mller
Mrsk A/S in the form of
joint-ventures, mergers or

listing. Depending on market

developments and structural
opportunities, Maersks objective
is to find solutions for its oil and
oil related businesses within the
next 24 months.
The Energy division will consist
of Maersk Oil, Maersk Drilling,
Maersk Supply Service and
Maersk Tankers. Maersk Oil
will focus on optimising and
strengthening its strong position
in the Danish, British and Norwegian sectors of the North Sea.

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
working for Shell off eastern
Canada for around six more
months, occupying her until the
end of the first quarter of 2017.

In Argentina, Total Austral has

retained AHTS vessel Skandi
Mgster for six more months
from October 2016. DOF has
indicated that its assumed

ENQUEST EXTENDS K LINE PSV

K Line PSV KL Brisfjord will

continue working for EnQuest
in the UK sector into the new
year, with the vessels contract
recently extended until at least
January.
The KL Brisfjord (pictured

average EBITDA per day from

the three contracts works out
at approximately NOK 40,00045,000 (USD 5,023-5,651) per
vessel.

c/o D Dodds) was built to the

STX/VARD PSV 06 CD design
and delivered in 2011. She has
been working for EnQuest
since February 2016, providing
support to the charterers drilling
campaign with semisubmersible
rig Transocean Leader.

FINARGE VESSELS TOWING TRANSOCEAN RIG TO MALTA

Transocean has contracted the
services of Finarge AHTS vessels
A.H. Varazze and A.H. Valletta
to tow its semisubmersible rig
Sedco 704 from Burghead in the
UK to Malta. The rig has left the
North Sea market following the
conclusion of a recent charter
with Independent Oil & Gas in
4 SEABREEZE

the UK sector in August.

The A.H. Varazze and A.H.

Valletta (pictured c/o O Halland),
both 19,000 bhp vessels, only
joined the AHTS market in the
North Sea earlier this year. They
are scheduled to conclude the
Transocean tow in early October.

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
sub-contractors who will be
supporting the engineering, ROV

work and waste management

aspects of the project. Maersk
has estimated that the project is

ALLSEAS BRASIL CHARTERS BRAVANTE QUARTET

Allseas Brasil has contracted four
Bravante Group PSVs on term
charters to support pipe-lay
operations offshore Brazil.
The Bravante V, Bravante VI,
Bravante VII and Bravante VIII
have all been chartered for a firm
period of 130 days plus options

likely to take until the summer of

2018 to complete.

from November 2016.

The Bravante V, VI, VII and VIII
are 4,500t deadweight vessels
built to the STX/VARD SV290
design. They were constructed
by the Eastern Shipbuilding
Group in the USA and delivered
in 2013 and 2014.

FARSTAD CONCENTRATES AUSTRALIA ACTIVITIES

Farstad Shipping has decided
to concentrate its oil service
activities in Australia to its
Perth office in the west of the
country. This will see the closure
of Farstads Melbourne office in
Victoria, south Australia, and the
owners onshore organisation
will be reduced from 65 to

around 30 employees.

Farstads Perth office will now

facilitate both its Australia
headquarters and its regional
operational centre, in addition
to the companys training and
offshore simulation centre.

SEABREEZE 5

OSV RATES & UTILISATION

SEPTEMBER 2016 - DAILY NORTH SEA OSV AVAILABILITY
36
34
32
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
0

PSV 2016

PSV 2015

AHTS 2016

AHTS 2015

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
SEP 2016

AVERAGE RATE
SEP 2015

% CHANGE

MINIMUM

MAXIMUM

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

CATEGORY

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 < 900m

All Cargo Runs

10,000
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 <
900M2
> 900M
900m

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

PSVs > 900M
900M2

30,000
30,000
25,000
20,000
20,000
15,000
10,000
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
> Moves
18,000 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
25,000
20,000
20,000
15,000
15,000
10,000
10,000
5,000
5,000
-

Rates
To Month2016)
(June 2013)
Average Day Average
Rates ToDay
Month
(September

PSVs < 900m

PSVs > 900m

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
delivery during the second
quarter of 2017. Her maiden
campaign will see her mobilised
to the Merkur offshore wind
farm in Germany, where she
will install inter array cables at
the wind farm.
The newbuild vessel has also
been awarded work to install
cables at the worlds largest
offshore wind farm, Hornsea
Project One in the UK.
The Living Stone will provide
support for transport and
installation projects, as well as
offshore power cable installations and interconnectors for the
future European Supergrid.
The Tideway operated-vessel
8 SEABREEZE

will be equipped with DP3

station keeping, and she has dual
fuel engines with LNG used as
its prime fuel. She is capable of
accommodating a crew of up to
100 persons.
LIVING STONE SPECS:
The Living Stone will feature a
total loading capacity of 12,500t,
and two large 5,000t cable/
umbilical carousels which are
arranged below deck to allow
for a free deck area of around
3,500m. This will accommodate
the modular cable/umbilical
handling systems, remotely
operated vehicles (ROVs), the
subsea trenching tool CBT 1100
and the fall-pipe system. A 7.7m
by 7.7m moon pool and a 600t
crane for subsea installation and
removal will also be installed.

Overall Length: 161m

Moulded Breadth: 32m
Max Draft: 6.5m
Cargo Deck Area: 3,500m
Accommodation: 100 persons
Main Crane: 600t
Second Crane: 65t
Trenching Tool: CBT 1100
Dynamic Positioning: DP3
Loading Capacity: 12,500t
Cable Carrousels: 5,000t
Moon pool: 7.7m x 7.7m
Ship yard: LaNaval

OSV NEWBUILDINGS, S&P

ALP STRIKER DELIVERED IN JAPAN

ALP Maritime has accepted

delivery of ALP Striker from the
Niigata Shipyard in Japan.
The ALP Striker is the first of
four ultra-long distance towing
and anchor handling vessels
being built to Ulsteins SX-157
design. She has a length of 88.9m,
breadth of 21.0m, a deadweight of

4,250 tonnes and accommodation

for 35 persons. During sea trials,
the Striker achieved a continuous
bollard pull of 309.6MT. She has
a maximum speed of 19 knots
and a service speed of 13 knots.
The second vessel in the series,
ALP Defender, is scheduled for
delivery in November.

VROON ADDS CHAMPION TO AHTS FLEET

The Fujian Southeast Shipyard
in China has delivered AHTS
vessel VOS Champion to Vroon
Offshore. This is the second of
six sister vessels that Fujian is
building for Vroon to a Khiam
Chuan Marine design, following
the delivery earlier this year of
VOS Challenge. The remaining

four vessels in the series, named

VOS Chance, VOS Character,
VOS Charisma and VOS Charm,
are all due for delivery later in
2016 or in 2017.
The VOS Champion has a length
of 65m, breadth of 16.4m, a deck
area of 425m and a bollard pull
of 85 tonnes.

MPFSV DELIVERED TO HARVEY GULF

The Eastern Shipbuilding Group

in Florida, USA, has delivered
a newbuild multi-purpose field
support vessel to Harvey Gulf
International Marine.
The Harvey Stone was built to
Robert Allan Ltds RAmpage
6400 MPFSV design. She has a
length of 65m, breadth of 18m,

total engine power of 9,374 bhp

and a bollard pull of 121 short
tons.
The Eastern Shipbuilding Group
is also currently completing the
Harvey Sub-Sea and Harvey
Blue-Sea, two sister MPSVs. The
Harvey Sub-Sea is scheduled for
delivery before the end of 2016.

CHINA-BUILT MUTAWA PSV MOBILISED TO MIDDLE EAST

Newbuild PSV Mutawa 306 has
mobilised to the Middle East
following her recent delivery
from Guangzhou Shunhai
Shipbuilding in China.
The vessel was built for UAEbased owner Mutawa Marine
Works. She has a length of
56.2m, a breadth of 13.8m, a

depth of 5.5m and a maximum

draft of 4.75m.
The Mutawa 306 has a clear
deck area of 329m, deadweight
of 1,400t and a cargo capacity of
500t. She has an accommodation
capacity for 38 persons in a
combination of 1, 2 and 4-berth
cabins.

SEABREEZE 9

OSV NEWBUILDINGS, S&P

AUSTAL DELIVERS CREW TRANSFER VESSEL TO CASPIAN MARINE
Austal Limited in western
Australia has delivered an
Incat-Crowther designed large
crew transfer vessel to Caspian
Marine Services Limited of
Azerbaijan.
The Rashid Behbudov is a 70m

catamaran, featuring DP2 station

keeping and an Ampelmann
walk-to-work gangway. She
has a cargo deck area of more
than 400m, and can carry 150
passengers (plus 16 crew) 400
nautical miles at 30 knots.

ROSNEFT SIGNS ICEBREAKING MPSV CONTRACTS

Rosneft has signed contracts
with the Far Eastern Shipbuilding and Ship Repair Center
(FESRC) for the construction
of two more Icebreaker 7 class
multi-purpose supply vessels,
raising its order for this class

of vessel to four units. The first

two vessels, being built at the
Zvezda Shipyard in Bolshoi
Kamen in south-eastern Russia,
are due for delivery at the end of
2019 and in the first half of 2020
respectively.

EIDESVIK, FARSTAD AND MAERSK SELL TONNAGE

Given the difficult trading

conditions in the global OSV
market, Eidesvik Offshore,
Farstad Shipping and Maersk
Supply Service have entered
into agreements recently to sell
vessels that are deemed surplus

to fleet requirements.
Eidesvik has agreed to sell PSV
Viking Nereus, with the transaction dependent on the buyers
technical acceptance of the
vessel in the fourth quarter of
2016. Eidesvik will record a NOK
55 million (USD 6.9 million)
impairment loss on the vessel in
its third quarter accounts. The
Viking Nereus (pictured) is a
2004-built UT 755L PSV.
Meanwhile, Farstad has sold
AHTS Lady Sandra, a 1998-built
KMAR 404 vessel. Following

an impairment charge of NOK

11 million (USD 1.4 million) in
its second quarter accounts, the
sale of the vessel will result in an
immaterial accounting effect in
Farstads third quarter results.
Finally, Maersk Supply Service
has offloaded another vessel,
selling its 1992-built PSV Maersk
Forwarder. Maersk recently
announced its intention to
reduce its fleet by 20 vessels over
the next 18 months, with the
majority to be either recycled or
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
and Subsea 7 are to form an
integrated project management
team under an alliance aimed
at saving time and costs on Det
Norskes Norwegian subsea
developments.
Det Norske advised that they
will utilise Aker Solutions expertise in front-end engineering,
brownfield modifications and
subsea systems, and Subsea 7s
capabilities in the engineering,
procurement, installation and
commissioning of subsea umbilicals, risers and flowlines (SURF)
under the agreement.
The alliance follows the award of

USD 332 million worth of contracts in June for the Alvheim

area, including subsea trees
to Aker Solutions, and subsea
umbilicals, risers and flowlines
(SURF) to Subsea 7, under a
four-year framework agreement.
Det Norske has stated that the
industry needs to find new, more
sustainable ways of working
on oil and gas developments
and that this alliance enables
a holistic approach to subsea
developments that will promote
an effective re-use of solutions
and best practices across the
portfolio to significantly save
time and reduce costs.

The scope of the framework

contracts has a total potential
value of around NOK 2.8 billion,
of which around NOK 800
million is Aker Solutions share
and NOK 2 billion is Subsea
7s portion. These values may
change depending on how much
work the operator calls for under
the contracts.
Overall management of the alliance will be through a steering
committee comprised of senior
management from each company. The project management
team will be led by a manager
from Det Norske.

GOLDEN ENERGY TO MANAGE LARISSA & DESPINA

Golden Energy Offshore
Management has entered into a
contract with Neptune Subsea
to manage the 2011-built IMR
vessels Larissa and Despina,
covering general and commercial management.
The Larissa is currently working
for SNEPCO (Shell Nigeria),
while the Despina is in lay-up

SEA TRUCKS SECURES WORK INTO 2017

Permaducto S.A. de C.V.

(Protexa) has awarded Sea
Trucks a contract to utilise its
accommodation barge Jascon 31
for accommodation and heavy
lift services offshore Mexico.
The barge will support repair
works at Pemex Line 221 at the
Abkatun-A Platform in the Gulf
of Mexico for a period of 50 days,
followed by a similar work scope

at Pemex Lines 63a and 65 in

the Ku-Maloob-Zaap field for 42
days plus options.
Offshore activities are scheduled
to start early in October 2016.
The 2010-built DP3 barge has
a length of 111m, and she is
equipped with a 400-tonne
heave compensated main crane,
accommodation for 408 persons,
a heave compensated gangway,

in Lyngdal, Norway. The SX

131-designed sister vessels are
98m in length, and are equipped
with DP 2, 150t AHC cranes, and
accommodation for 69 persons.
Additionally, the moonpool is
arranged with a three part hatch,
and is arranged with interface
and necessary enforcements for
a Module Handling Tower.

and 1,300m of unobstructed

deck space.

SEABREEZE 11

SUBSEA
MERMAID AUSANA CLOSE TO BEING SOLD?

Mermaid Maritime is currently

evaluating bids and options it
has received from third parties
regarding the potential purchase

or lease of DP2 multipurpose

subsea DSCV Mermaid Ausana.
It was rumoured in early September that Ultra Deep Solutions
had purchased the newbuild, but
Mermaid has confirmed that no
final decision has been made yet.
It was further rumoured that
Ultra Deep would rename the
Marin Teknikk MT6024 vessel
as Lichtenstein.
Mermaid and the vessel builder
China Merchants Heavy

KREUZ SUBSEA NAMES NEWBUILD

Kreuz Subsea has named its

newbuild Vard 3 17 DSV Kreuz
Challenger, with delivery
scheduled in the second quarter
of 2017 from Vard Soeviknes in
Norway.
The DP2 Kreuz Challenger is
fitted with a 100-tonne active
heave compensated offshore
crane, and she can accommodate
up to 105 persons. Additionally,
she is also equipped with a 12man saturation diving system for
operations in water depths down

to 300m with a surface diving

spread suitable for air diving
down to 50m. Upon delivery,
the newbuild will commence a
multi-year contract in Brunei.
As previously reported in
Seabreeze, Kreuz Subsea was
awarded a seven-year IRM
contract with BSP (Brunei
Shell Petroleum). The contract
commenced in 2015 and will
run until 2022. The IRM project
consists of air diving and observation class ROV work for 240

NORTH ENERGY INCREASES STAKE IN REACH

North Energy Capital has

acquired an additional stake in
Reach Subsea, making them the
12 SEABREEZE

second largest shareholder in the

Norwegian contractor.
After the acquisition of an
additional 4,619,014 shares, this
has increased their stake in the
company to 9.8 per cent of the
issued shares and voting rights.
Meanwhile, West Supply II
Operation has divested its 5.5
per cent of outstanding shares
in Reach Subsea, and no longer
holds any shares in Reach.

Industry have mutually agreed

to extend the delivery date for
Mermaid Ausana until 30 June
2017.
The 121m-long vessel will be
equipped with an 18-man twin
bell saturation diving system for
operation down to 300m, two
150 HP WROVs, two self-powered hyperbaric lifeboats, and
accommodation for up to 130
persons.

days per year (firm) plus options

for 30 days per year of saturation
diving. Kreuz Subsea chartered
Bourbon Offshores IMR support
vessel Bourbon Supporter to
front-run for the newbuild.

As per June 29, 2016, Accello

Partners is the largest shareholder with 30.3 per cent, followed
by North Energy Capital (after
the recent purchase) with 9.8 per
cent and Joso Invest with 7.9 per
cent in third place.
During the second quarter of
2016, Reach Subsea generated a
net profit of NOK 3.3 million on
revenues of NOK 89.5 million.

SUBSEA
AXIS NOVA DELAYED

Axis Offshore has entered into an

agreement with Cosco shipyard to
further postpone the delivery of its
newbuild flotel Axis Nova.
Following the completion of sea
trials, the accommodation rig
will be laid-up at the yard until
August 20, 2017, but Axis can
take delivery of the newbuild at
any time with short notice.

This is an extension to the

current agreement they have
with the yard which expired on
September 30, 2016. The rig was
originally scheduled for delivery
in the first quarter of 2015.
The DP3 GM500A-designed Axis
Nova has a length of 105 metres,
a max lift of 110 tonnes and
accommodation for 500 persons.

MERMAID SECURES ADDITIONAL WORK

Middle East. The total value

of the contracts is estimated
at a potential USD 5.1 million.
The first contract will see DP2
diving support vessel Mermaid
Nusantara carry out a 30-day
installation project, involving
heavy duty work-class ROVs in
the Natuna Sea, Indonesia. The
contract is due to commence
no later than the first quarter of
2017.
The second contract is to

Seascape Surveys has been

awarded subsea contracts in
Southeast Asia with an undisclosed client, and has received
a contract extension in the

TOPAZ NAMES NEWBUILDS

Topaz Energy and Marine has

held a christening ceremony for
its two newbuild IMR support
vessels. Topaz has named the
VARD 3 08 designed newbuilds
as Topaz Tiamat and Topaz
Tangaroa. The vessels are due

for delivery from Vard Brattvaag

in Norway during the third
and fourth quarters of 2017
respectively. The DP2 newbuilds
will have a length of 98m, and
they will be equipped with a
120t active-heave compensated

provide survey and inspection

services to a third-party diving
vessel for around 45 days in
Malaysian waters. Work for this
contract has alrady commenced.
Additionally, an EPC contractor
in the Middle East has extended
its contract with DP2 DSV
Mermaid Endurer by a further
month, together with additional
standalone saturation diving
support equipment and services.

crane, two ROVs which will

be deployed via Launch and
Recovery Systems (LARS) over
the side, and accommodation
for 82 persons. Topaz also has
options for a further two VARD
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

multi-million pound investment
in Grimsby to create the UKs
largest offshore wind operations
and maintenance hub.
Subject to planning approval, the
hub will support the Westermost
Rough, Race Bank and Hornsea
Project One offshore wind farms,
with the capacity to support
other east coast wind farms in
DONG Energys future development pipeline from the Royal
Dock.

A marine coordination centre

capable of providing 24-7 service
to offshore operations across the
UK and beyond will be included
in the investment. The facility
will be served by vessels capable
of accommodating up to 60 crew
and technicians while remaining
at sea for long periods. SOVs,
supplied by Ostensjo Rederi and
designed by Rolls-Royce, are
being chartered to operate from
the new hub.
The first vessel will arrive late

VOS START TO PROVIDE W2W ON WALNEY

MHI Vestas Offshore Wind has

awarded a contract to Vroon
Offshore Services for the provision of offshore logistics support,
accommodation and walkto-work services during the

construction of DONG Energys

Walney Extension West offshore
wind project.
Vroon will deploy its newbuild
subsea support vessel VOS Start,
which is due to be delivered by
Fujian Southeast Shipbuilding
in China ready to commence
operations in the 2017 season.
The vessel will provide accommodation and work space for up
to 60 client personnel after the
installation of a motion-compensated gangway to safely

in 2017 to support a phased

activation on the new hub. The
vessel will initially support the
operation and maintenance of
Race Bank, DONG Energys
580MW offshore wind farm
currently under construction.

transfer personnel, equipment

and spare parts to wind turbines
during commissioning. The VOS
Start will also have the ability
to perform mother-ship duties
for crew-transfer vessels. The
300MW Walney Extension
West will be the first phase of
the 660MW Walney Extension
offshore wind farm project.
Construction is due to begin
during the summer of 2017,
while the wind farm is due to be
fully commissioned in 2018.

WORLD MARINE SECURES WORK FOR NEWBUILDS

Iberdrola Renovables Offshore

has awarded World Marine
Offshore a contract to provide
crew transfer vessels (CTVs) for
operations and maintenance
at the 350MW Wikinger wind
farm offshore Germany. World
Marine will utilise two 32-metre
newbuilds, which are due to be
delivered during 2017, for the
campaign.
14 SEABREEZE

The vessels will feature a combined diesel electric and battery

propulsion system and will
have the ability to carry 20 tons
of cargo on the foredeck. The
Wikinger wind farm is located
in water depths of around 3040m, and will consist of 70 5MW
wind turbines and one offshore
substation, scheduled to be
operational by the end of 2017.

RIGS
OIL PRICE VS RIG UTILISATION

INACTIVE RIGS NORTHWEST EUROPE

NAME

TYPE

STATUS

BORGLAND DOLPHIN

SS

WARM STACK

BORGNY DOLPHIN

SS

COLD STACK

$70

BREDFORD DOLPHIN

SS

COLD STACK

$65

COSLINNOVATOR

SS

WARM STACK

$60

COSLPIONEER

SS

WARM STACK

$55

DEEPSEA METRO II

DS

COLD STACK

57.3%

$50

DEEPSEA STAVANGER

SS

WARM STACK

$47.15
$45.07 $46.14

$45

ENERGY ENDEAVOUR

JU

COLD STACK

ENERGY ENHANCER

JU

COLD STACK

ENSCO 70

JU

COLD STACK

ENSCO 72

JU

WARM STACK

ENSCO 101

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 GALLANT

JU

WARM STACK

MAERSK REACHER

JU

WARM STACK

MAERSK RESOLUTE

JU

WARM STACK

OCEAN NOMAD

SS

COLD STACK

OCEAN PRINCESS

SS

COLD STACK

OCEAN VALIANT

SS

WARM STACK

OCEAN VANGUARD

SS

COLD STACK

PARAGON B391

JU

WARM STACK

PARAGON C462

JU

COLD STACK

PARAGON C463

JU

COLD STACK

PARAGON C20051

JU

WARM STACK

PARAGON C20052

JU

COLD STACK

PARAGON HZ1

JU

WARM 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 DEE

SS

WARM STACK

SONGA TRYM

SS

WARM STACK

SWIFT 10

JU

WARM STACK

TRANSOCEAN BARENTS

SS

WARM STACK

TRANSOCEAN PROSPECT

SS

COLD STACK

TRANSOCEAN SEARCHER

SS

COLD STACK

WEST ALPHA

SS

WARM STACK

WEST HERCULES

SS

WARM STACK

WEST NAVIGATOR

DS

COLD STACK

WEST PHOENIX

SS

WARM STACK

WEST VENTURE

SS

COLD STACK

WILHUNTER

SS

WARM STACK

100%
90%

$75
85.0% 85.1% 84.6% 84.0% 83.2% 83.1%
82.3%

80%
79.6%

70%
60%

76.9% 75.4% 75.9%

$47.23 $48.12

50%
40%
30%

$80

$44.42

74.2% 72.9%

78.6% 77.1%

69.2% 68.2% 68.0%

$47.13
$42.25

44.4%

45.5% 46.9% 44.5% $37.72

42.5%
$30.80

39.2%
$33.20

75.1% 74.3% 74.6% 74.3%

66.3% 64.6%
$48.48

60.5%

$39.07

$40
$35

39.1% 39.9% 38.2%

37.2% 36.4%
35.5% 35.0%

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
South America Rig Utilisation
US Gulf Rig Utilisation

$30
$25

MAERSK OIL AWARDS P&A CONTRACTS

Maersk Oil has awarded new
contracts to Diamond Offshore
and Maersk Drilling for two
separate plug and abandonment
(P&A) campaigns in the UK
sector of the North Sea.
Diamond semisubmersible

Ocean Valiant has been chartered

to P&A 13 wells at the Janice
field from November 2016, while
jackup Maersk Gallant has been
contracted for 230 days from
February 2017 for P&A work at
the Leadon and James fields.

COBALT SHORTENS DRILLSHIP COMMITMENT

Cobalt International Energy has
amended its contract with Rowan Companies to allow for an
early termination of its charter
with drillship Rowan Reliance
in the US Gulf. The contract
was due to expire on February 1,
2018, however the amendment

allows for a termination date of

March 31, 2017. Cobalt will incur
a fee of USD 96 million. As part
of the agreement, Cobalt has
committed to using Rowan as
its exclusive provider of global
drilling services for the next five
years at market rates.

RIG UTILISATION AND DAY RATES

SEP
2016

SEP
2015

SEP
2014

SEP
2013

SEP
2012

NORTHWEST EUROPE

57.3%

79.6%

95.9%

97.5%

96.5%

SOUTH AMERICA

74.3%

85.0%

93.8%

96.5%

97.9%

US GULF

35.0%

45.5%

65.8%

72.4%

70.7%

UTILISATION

RECENT DAY RATE BENCHMARKS

LOW (USD)

HIGH (USD)

UK HARSH HIGH SPEC JACKUPS

88,600

88,600

UK HARSH STANDARD SEMISUBS

110,000

150,000

SOUTH AMERICA DEEPWATER SEMISUBS

175,000

275,000

GLOBAL ULTRA-DEEPWATER SEMISUBS

230,000

308,000

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

into an agreement to sell three drilling jackups
to Egyptian company Advanced Energy Systems
(ADES) S.A.E for a total price of USD 65,088,800.

For 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:
chartering@seabrokers.co.uk

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
including the novation of drilling contracts related
to the rigs. All three are currently working for
Saudi Aramco.
The rigs are all 250ft IC jackups, built to the
Marathon LeTourneau Class 82-SD-C design.
The Hercules 261 and 262 were built by Davies
Shipbuilding in Canada and delivered in 1979 and
1982 respectively. The Hercules 266 was built by
Marathon LeTourneau in Brownsville, USA, and
delivered in 1979.

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