OCTOBER 2016

DECOMMISSIONING
PRESENTS OPPORTUNITIES
FOR OWNERS

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

DECOMMISSIONING
WORK BRINGS NEW
DEMAND TO MARKET
The North Sea spot market
remained firmly in charterers
favour in October, with the
limited demand and low rates
prompting owners to send yet
more vessels into layup. With
some fixtures coming in as low
as GBP 6,000 (NOK 60,000) in
the AHTS market and GBP 2,000
(NOK 20,000) in the PSV sector,
it is hardly surprising that some
owners have decided to remove
more tonnage from the supply
count.
However, some oil & gas
companies have now determined
that the time is right to take
advantage of the rock-bottom
rates that are available for rigs
and support vessels. There has
been a noticeable increase in
the number of rig requirements
emerging and contracts being
awarded, with many plug
& abandonment (P&A) and
decommisioning campaigns
in particular now getting the
green light. The likes of Fairfield
Energy and Maersk Oil have
term PSV tenders outstanding
to support upcoming P&A
campaigns in the UK sector, and
vessel owners will be hoping
that continued growth in this
sector may lead to an increase
in term vessel utilisation next
year. For more details on the
decommissioning market, turn to
our Subsea roundup on page 11.

UK LICENSING ROUND DRAWS 29 APPLICATIONS

The United Kingdoms Oil
and Gas Authority (OGA) has
received 29 applications for
113 blocks in its latest offshore
licensing round, which targeted
under-explored areas of the UK
Continental Shelf (UKCS). There
were 1,261 blocks on offer.
The 29th offshore licensing
round is the first in two decades
to focus on frontier areas of
the UKCS. The OGA received
applications from 24 companies,
ranging from multinationals to
new country entrants. Awards
are expected early in 2017.
The acreage available in this
round included the Rockall
Trough and Mid-North Sea High
areas and the East Shetland

Platform, which were the focus

of a 2015 UK government-funded
seismic acquisition programme.
The next licensing round will
cover mature areas of the UK
Continental Shelf, however
the recently completed 2016
government-funded seismic
acquisition programme, which
focused on South West Britain
and the East Shetland Platform,
will contribute to future frontier
licensing exercises.
Following the latest acquisition
campaign, more than 13,500km
of new seismic data, plus
approximately 20,000km of
reprocessed legacy seismic data,
is scheduled to be released to
industry in the second or third
quarter of 2017.

BRAZIL OPENING UP PRE-SALT ACREAGE

Brazils Congress has voted to
open up its pre-salt oil fields to
allow them to be operated by
foreign companies. This change
will remove the onerous legal
obligation for Petrobras to be
the sole operator of all pre-salt
acreage with a stake of at least
30% in each licence.
It is hoped that this change will
encourage fresh investment in
Brazils offshore industry by
allowing other international
oil & gas companies to take on
the role of pre-salt operatorship
following future licensing
rounds.

This should prompt increased

activity by reducing the burden
on Petrobras, with the heavilyindebted operator forced to
delay many pre-salt projects in
recent months and years due to
financial constraints. However,
according to the new legislation,
the state-controlled Petrobras
will still be granted the first pick
of pre-salt fields in future.
This news will be welcomed
by international OSV owners,
with swathes of vessels forced to
depart Brazil in recent times due
to the significant reduction in
offshore activity.
SEABREEZE 3

OSV MARKET ROUND-UP

AKER BP RETAINS MKSTER PSV
Aker BP, the entity created via
the merger of BP Norge and Det
Norske, has extended its charter
with Simon Mkster PSV Stril
Mariner for another year.
The Stril Mariner (pictured)
was delivered in 2009. She was
built to the Havyard 832 CD-RS
design, but modified to a field
support vessel in 2012. She is
NOFO 2009 certified with FiFi 1,
and her oil recovery equipment
is embedded and sheltered. She
is equipped with a Daughter
Craft, and carries oil detection
radar and dispersant equipment.
Mkster has also been successful
recently in securing new term
work for another couple of its

vessels. The Stril Power has been

fixed to Statoil for two months
plus options to provide ERRV
duties; while the Stril Polar PSV
has been fixed to SPD for one-

K LINE PSV SUPPORTING CONOCO CAMPAIGN

K Line PSV KL Barentsfjord

has been chartered to Team
Marine until around February
2017. The vessel (pictured c/o P
Gowen) has been contracted to
support ConocoPhillips drilling
campaign with Transocean
semisubmersible Sedco 712 in
the UK sector.

well plus options to support

Hurricane Energys ongoing
drilling campaign with semisubmersible Transocean Spitsbergen
west of Shetland.

The rigs next contract following

the completion of this charter is
a 16-well plug & abandonment
campaign for Fairfield Energy.
Fairfield has an outstanding
requirement to charter a PSV
for one-year firm plus options
to provide support for this
programme.

REPSOL SINOPEC CHARTERS ESVAGT ERRV FOR CLAYMORE

Repsol Sinopec has contracted
ERRV Esvagt Kappa for three
years plus options to provide
standby and rescue support in
the UK sector of the North Sea.
The vessel has been chartered by
Repsol Sinopec for operations at
the Claymore field.
4 SEABREEZE

The Esvagt Kappa is a Class

B ERRV with the capacity to
rescue up to 300 survivors. Built
in 2002, the vessel has a length
of 47.1m, beam of 11.0m and
draught of 6.3m. She has an aft
deck area of around 110m with a
deadweight in excess of 500t.

OSV MARKET ROUND-UP

FLETCHER AND GULFMARK SUPPORTING PERENCO
Perenco has chartered PSVs from
Fletcher Shipping and GulfMark
to support a one-well plus onewell option drilling campaign
with jackup Rowan Gorilla VII
in the southern North Sea.
The FS Kristiansand (a 2005built VS 470 MkII vessel) and the
Highland Princess (a 2014-built
UT 755 XL PSV) are due to go on
charter around mid-November.
The Rowan Gorilla VII has been
contracted by Perenco to drill a
well at the Villages Complex near
Ravenspurn North in the UK
sector, with the vessels expected
to be kept occupied into the first
quarter of 2017.

The FS Kristiansand (pictured

c/o A Jamieson) is a new addition
to the Fletcher Shipping fleet.
Following two recent transactions, five former E.R. Offshore

AUSTRALIA EXTENSIONS FOR DESS PSVS

Deep Sea Supply has received

seven-month extensions to the
bareboat contracts for its PSVs
Sea Tortuga and Sea Triumph
(pictured). The vessels are
currently working for Chevron
offshore Australia. Their
contracts started at the end of
March 2015, and the bareboat

vessels (the Arendal, Bergen,

Haugesund, Kristiansand and
Tromsoe) are all now operating
under the management of
Fletcher (see p.10 for details).

agreements have now been

extended until the end of April
2017 with 130 days of options
available for both units.
The Sea Tortuga and Triumph
are STX PSV 05L CD vessels that
were delivered in 2014 by the
Cochin Shipyard in India.

LAST TWO WWS VESSELS RELEASED BY PETROBRAS

World Wide Supply (WWS)
has informed that the last two
vessels it had on charter to
Petrobras have been released
from contract. The World
Emerald is now laid up in Cadiz,
Spain, while the World Sapphire
(pictured c/o J Bartels) is en
route to the same location. This

means that all six PSVs owned

by WWS are out of work, with
the other four laid up in Norway.
Meanwhile, the Cadiz-based
vessels, both built in 2013 to the
Damen PSV 3300 CD design,
will now be commercially and
technically managed by Tschudi
Ship Management AS.

SEABREEZE 5

OSV RATES & UTILISATION

OCTOBER 2016 - DAILY NORTH SEA OSV AVAILABILITY
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 31

RATES & UTILISATION

NORTH SEA SPOT AVERAGE UTILISATION OCTOBER 2016

TYPE

OCT 2016

SEP 2016

AUG 2016

JUL 2016

JUN 2016

MAY 2016

MED PSV

66%

60%

68%

73%

80%

81%

LARGE PSV

76%

76%

85%

87%

96%

86%

MED AHTS

42%

51%

68%

64%

66%

46%

LARGE AHTS

50%

65%

71%

79%

76%

56%

NORTH SEA AVERAGE RATES OCTOBER 2016

AVERAGE RATE
OCT 2016

AVERAGE RATE
OCT 2015

% CHANGE

MINIMUM

MAXIMUM

SUPPLY DUTIES PSVS < 900M2

5,695

3,336

+70.71%

2,000

12,000

SUPPLY DUTIES PSVS > 900M2

3,920

3,185

+23.08%

2,000

7,214

AHTS DUTIES AHTS < 18,000 BHP

7,150

5,148

+38.89%

5,900

8,000

AHTS DUTIES AHTS > 18,000 BHP

9,696

6,035

+60.66%

6,000

32,500

CATEGORY

SPOT MARKET ARRIVALS & DEPARTURES OCTOBER 2016

ARRIVALS - NORTH SEA SPOT

ARRIVALS (CONTINUED)

DEPARTURES - NORTH SEA SPOT

BEN NEVIS

EX BLACK SEA

OLYMPUS

EX BLACK SEA

UNION BEAR

AFRICA

MAKALU

EX BLACK SEA

PACIFIC CHAMPION

EX AFRICA

UNION LYNX

AFRICA

OLYMPIC HERCULES

EX AFRICA

UOS VOYAGER

EX CENTRAL AMERICA

UNION MANTA

AFRICA

OLYMPIC PEGASUS

EX AFRICA

UNION PRINCESS

AFRICA

UNION SOVEREIGN

AFRICA

* 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

5,695

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

3,920

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

7,150

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

9,696

25,000
20,000

Rates
To Month
(June 2013)
Average Day Average
Rates ToDay
Month
(October
2016)

15,000
10,000
5,000
-

PSVs < 900m

PSVs > 900m

AHTS < 18,000 bhp

AHTS > 18,000 bhp

2015

3,902
4,071

4,767
4,702

13,617
11,189

19,343
16,574

2016

5,998
5,697

5,397
5,331

16,401
15,799

22,718
23,420

SEABREEZE 7

FEATURE VESSEL
NORMANN & POMOR

A double naming ceremony was held at Havyard Ship Technology

in Norway on October 15th for the Femco Groups newbuild
icebreaking AHTS vessels Normann and Pomor.
The Normann (pictured above
c/o A K Aaseb) and Pomor are
the second and third in a series
of three Femco vessels built to
the Havyard 843 ICE design.
They are sister vessels to the
Aleut, which was delivered by
Havyard in November 2015.
The Normann and Pomor are
designed to operate in extremely
challenging conditions. They
were constructed according to
DNVs Ice-10 Icebreaker Class,
which demands the ability to
break one-year old ice up to 1m
in thickness. The vessels also
carry the Winterized Cold (-30)
8 SEABREEZE

notation, meaning they can

work in temperatures as low as
-30C without freezing up.
The vessels have a length of
86.7m, breadth of 19.5m and a
cargo deck area of 600m. They
have a bollard pull of more than
200 tons and an accommodation
capacity for 53 persons.
The Normann and Pomor will
now be mobilised to eastern
Russia where they will provide
icebreaking escort services
together with anchor-handling,
towing and supply services in
the oilfields offshore Sakhalin.

NORMANN & POMOR SPECS:

Design: Havyard 843 ICE AHTS
Overall Length: 86.7m
Moulded Breadth: 19.5m
Max Draft: 7.25m
Ice Class: Ice 10 Icebreaker
Bollard Pull: 204mt
Cargo Deck Area: 600m
Accommodation: 53 persons
Firefighting: FiFi 1
Maximum Speed: 16 knots
Economical Speed: 12 knots

OSV NEWBUILDINGS, S&P

SECOND DAMEN PSV 5000 FOR WILSON SONS

Wilson Sons UltraTug Offshore

has accepted delivery in Brazil
of the second of two vessels built
to the Damen PSV 5000 design.
The Pinguim (pictured) is a sister
vessel to the Larus, which was
delivered in July. Both were
built at Wilson Sons shipyard in
Guaruj in the state of So Paulo.

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. The
vessels have a length of 82.25m,
breadth of 19m, deck area of
920m and deadweight of 5,000t.

FAFNIR DELAYS DELIVERY OF SECOND PSV

Havyard Ship Technologies has
agreed to delay the delivery of
newbuild PSV Fafnir Viking
until April 2019. The order for
the Havyard 833 WE ICE vessel
was placed by Fafnir Offshore
in April 2014, with delivery at
that time envisaged for July 2015.
However, the scheduled delivery

has been pushed back again

because the Icelandic owner has
been unable to secure long-term
work for the vessel due to the
downturn in the market.
The Fafnir Viking will be the
second PSV in Fafnirs fleet,
following the 2014 delivery of
the Polarsyssel.

WUCHANG DELIVERS THREE AHTS VESSELS TO COSL

The Wuchang Shipbuilding
Industry Group in China has
recently delivered three new
Wrtsil-designed AHTS vessels
to COSL.
The Hai Yang Shi You 677, 678
and 679 were built to the VS 4612
design. COSL originally ordered
six Wrtsil-designed vessels in

December 2012: AHTS vessels

Hai Yang Shi You 670, 671, 672
and 673, and PSVs Hai Yang Shi
You 660 and 661 (pictured). This
was followed up in December
2014 with an order for three
more AHTS vessels; the Hai
Yang Shi You 677, 678 and 679
are the three additional vessels.

LNG-POWERED ICEBREAKER DELIVERED IN FINLAND

The Arctech Helsinki Shipyard
in Finland has delivered the
icebreaker Polaris to the Finnish
Transport Agency.
The Polaris is a prototype vessel
designed to serve for at least 50
years in icebreaking, oil recovery
and sea rescue operations. She is
the worlds first LNG-powered

icebreaker, capable of operating

with either LNG or low sulphur
diesel oil as fuel.
The Polaris has a length of 110m,
breadth of 24.4m, deadweight of
3,000t and a bollard pull of 214t.
She is capable of breaking ice of
up to 1.8m thickness at a speed
of 3.5 knots.

SEABREEZE 9

OSV NEWBUILDINGS, S&P

FLETCHER TAKES CONTROL OF TWO MORE PSVS

Having acquired a 20% stake in

PSV Opportunity I DIS (the owners of FS Arendal, FS Bergen and
FS Kristiansand), S.D Standard
Drilling has now invested USD
2.7 million to acquire 20% of PSV
Opportunity II DIS, the owners of

UT 755 LN PSVs E.R. Haugesund

(pictured c/o D Dodds) and E.R.
Tromsoe. The vessels will operate
under the technical and commercial management of Fletcher
Shipping, and will be renamed FS
Aberdour and FS Abergeldie.

HAVILA PRINCESS SOLD INTO AQUAFARMING MARKET

Havila Shipping has agreed to
sell the 2005-built PSV Havila
Princess to P/F Bakkafrost in the
Faroe Islands. The vessel will
leave the OSV market and be
converted to operate within the
aquafarming industry.

Bakkafrost intends to equip

the vessel with a system for the
delousing of salmon using warm
seawater. The Havila Princess
will be renamed Martin, and
should be ready to start working
for her new owners early in 2017.

MAERSK SELLS TWO MORE TO KARADENIZ

Maersk Supply Service has sold

two more PSVs to Karadeniz
Holding, with Maersk Feeder
and Fighter (pictured) to be
renamed KPS Goktay Bey and
KPS Metin Bey respectively.

This follows the sales earlier this

year of PSVs Maersk Finder (KPS
Koray Bey) and Forwarder (KPS
Nezih Bey), and AHTS vessels
Maersk Puncher (KPS Faruk Bey)
and Provider (KPS Arda Bey).

CONVERSION FOR OCEAN RESPONSE

Atlantic Offshore, together with
Statoil, has decided to convert
the Ocean Response to act as
a full oil recovery and oil spill
vessel within the NOFO 2009
regulations. Following the

completion of modifications at
the Hellesy Verft shipyard in
Norway, the 2013-built Ocean
Response will have more flexibility to serve as an emergency
response vessel.

RECENT DELIVERIES OF NEWBUILD OSVS

NAME

TYPE/DESIGN

OWNER/ MANAGER

COMMITMENT

HAI YANG SHI YOU 677, 678 & 679

WRTSIL VS 4612 AHTS

COSL

FAR EAST

NORMANN

HAVYARD 843 ICE AHTS

FEMCO

RUSSIA

PINGUIM

DAMEN 5000 PSV

WILSON SONS ULTRATUG OFFSHORE

SOUTH AMERICA

POLARIS

110M LNG ICEBREAKER

FINNISH TRANSPORT AGENCY

BALTIC SEA

POMOR

HAVYARD 843 ICE AHTS

FEMCO

RUSSIA

10 SEABREEZE

SUBSEA
SUBSEA MARKET ROUND-UP
The offshore market has cried
wolf about decommissioning in
the past, but recent data released
from an array of sources suggest
that this sector of the oil &
gas industry is poised to grow
significantly.
Jee Ltd, an oil and gas consultancy firm, has advised that they
have experienced a 50% growth
in requests for information over
the last six months alone. They
see demand continuing to grow
for at least the next couple of
years.

Confirming this theory is IHS

Markit, who have advised that
91 fixed platforms in Europe are
scheduled for removal by 2024.
Furthermore, Wood Mackenzie
has stated that a total of 151 fields
are expected to cease production
on the UK Continental Shelf
over the next five years, with a
total decommissioning cost of
USD 21.4 billion.
Wood Mackenzie expects decommissioning costs to overtake
development spend in 2022, as
activity in the mature UKCS will

become more focused towards

decommissioning within the
next decade. More than USD 87
billion is expected to be spent on
decommissioning activity within
the UKCS alone over the next 30
years.
We have seen several decommissioning tenders out in the
market this year, with some
still outstanding, including
BGs subsea removal scope on
the Atlantic & Cromarty fields,
and Fairfields Dunlin cluster
campaign, all in UK waters.

DOF SUBSEA SELECTED FOR PHASE ONE DECOMMISSIONING AT ATHENA

Ithaca Energy has awarded DOF

Subsea a contract for the first
phase of decommissioning at its

Athena field in the UK sector of

the North Sea.
DOF Subsea will utilise the
107m-long OCV Skandi Skansen
for the campaign to remove the
buoy, risers and mid-water arch
from the Athena field.
Robert Gillespie, MD of DOF
UK, commented: This is a
very important project for us.
Conditions in the industry are

SUBSEA 7 TO WORK ON ATOLL FIELD

Subsea 7 has been awarded

an EPIC contract worth more
than USD 150 million with the
Pharaonic Petroleum Company
for the Atoll field offshore Egypt.
Subsea 7 will provide the engineering, procurement, installation and construction of more
than 40km of rigid pipelines
and associated structures for the
new field, tying into the existing
Taurt field.

Additionally, Subsea 7 will also

install a 105km umbilical to
connect the Atoll field to shore.
The offshore campaigns will
take place during the second half
of 2017 and the early months of
2018. The contractor will utilise
the derrick pipelay vessel Seven
Borealis (which is equipped
with a 600t tensioner for S-lay
and a 937t top tension for J-lay)
and the newbuild Seven Arctic

challenging, but the North Sea

decommissioning sector is active
and we are well positioned to
deliver in this market.
Ithaca ceased production from
the Athena field in January and
terminated its contract for BW
Offshores FPSO BW Athena,
which was demobilised in
February 2016.

(which is under construction

at Hyundai Heavy Industries
in South Korea), as well as the
multiservice vessel Seven Eagle
for the campaign.

SEABREEZE 11

SUBSEA
DCN DIVING CHARTERS NORMAND BALTIC

DCN Diving has chartered Solstad Offshores STX PSV/ROV 06

CD-designed Normand Baltic for
subsea duties in the Middle East
and Asia. The DP2, 94m-long
vessel, which has a max lift of
100t and accommodation for
69 persons, will be fitted with a

9-man saturation dive system

to perform IMR work. She will
also be utilised for saturation
diving for construction support,
ongoing field maintenance and
call-out repair. DCN Diving has
options to add a work-class or
observation class ROV on-board.

MORE LAYUPS FOR PROSAFE

During the third quarter of 2016,

Prosafe laid up two additional
flotels. The 1982-built Safe
Caledonia was laid up in the UK
after completing her operations
with BP in August, where she
had been providing accommodation support on the Operators
Eastern Trough Area Project
since mid-2015.

Additionally, the 1982-built

Safe Regency was relocated
from Aruba and was laid up
in Curaao during the third
quarter. Prosafe has already got
the Safe Bristolia cold-stacked in
Norway, the Safe Astoria coldstacked in Indonesia, and the
Safe Lancia cold-stacked in Port
Isabel, USA.

TECHNIP SECURES SAMARANG CONTRACT

Petronas Carigali has awarded

Technip a subsea contract for
phase two of the EOR (enhanced
oil recovery) project for the
Samarang redevelopment
offshore Malaysia. Technip will
perform the engineering, supply,
construction, installation and

commissioning of flexible pipelines, as well as EPCIC of associated platform I-tubes. Technip

will mobilise its own vessels for
offshore installation works in the
first half of 2017. The contract is
scheduled for completion during
the third quarter of 2017.

KREUZ CHALLENGER UNDERGOES FINAL OUTFITTING

Kreuz Subseas newbuild Dive
Support Vessel Kreuz Challenger
was mobilised from VARDs
yard in Tulcea, Romania, where
her hull was built, to VARDs
yard in Soviknes, Norway.
The 91.2 metre-long newbuild
will be outfitted with DP3, a
100-tonne active heave compensated offshore crane and

12 SEABREEZE

accommodation for up to 105

persons.
She also features a 12-man
saturation diving system, with
an operating capacity for water
depths of up to 300m, with a
surface diving spread suitable
for air diving in up to 50m water
depth. Upon delivery in the
second quarter of 2017, Kreuz

Challenger is expected to depart

for a five-year charter with
Brunei Shell Petroleum.

SUBSEA
STEP CLOSER TO TURKSTREAM
The Government of the Russian
Federation and the Government
of the Turkish Republic have
signed an agreement on the
TurkStream project.
The document covers the
construction of two gas pipelines
from Russia to Turkey across the

Black Sea, as well as an onshore

string for gas transit to Turkeys
border with neighbouring countries. The 660km pipeline will
run along the old route of South
Stream and cover 250km of a
new route towards the European
part of Turkey.

OCEANEERING ACQUIRES BLUE OCEAN TECHNOLOGIES

Ocean Technologies LLC for
around USD 30 million in cash.
Blue Ocean is a privately held
riserless light well intervention
services company. The acquisition includes all three of Blue
Oceans RLWI systems, includ-

Oceaneering International
has acquired the assets of Blue

DEA STARTS TO AWARD DVALIN CONTRACTS

DEA Norge has awarded Technip

the Engineering, Procurement,
Construction and Installation
contract for the smaller structures and pipelines, as well as the
subsea installation work for the
Dvalin development off Norway.
Under the contract, Technip will
fabricate the 12/16-inch pipein-pipe production flowline and
the 12-inch gas export pipeline,
and will install the pipelines as
well as all subsea structures and
umbilicals for the field.
It is understood that Technip
will utilise the 2013-built pipelay
vessel Deep Energy, which can

lay both flexible and rigid pipe

for the flowline installation, and
the 2014-built North Sea Atlantic,
which is fitted with a 550-tonne
active heave compensated crane
and a 2,000-tonne below deck
carousel for the umbilical installation.
DEA has already awarded a contract to Aker Solutions to deliver
the subsea production system,
maintenance and services at the
Dvalin natural gas development.
The operator has also awarded
a contract to Aibel for the modification assignment to ready the
Heidrun platform to receive the

ing two systems currently under

construction, which are due to
be delivered by mid-2017.
Oceaneering expects to invest
USD 10 million towards completing the construction of the
two systems.

production from the Dvalin field.

Production is due to start from
the field in 2020 and the cost of
the development is estimated to
be USD 1.22 billion.

EUROPEAN BUILT SUBSEA DELIVERIES (NEXT THREE MONTHS)

SHIP OWNER

NAME

CHARTERER

SHIP YARD

TYPE

DESIGN

MONTH

TECHNIP

DEEP EXPLORER

VARD LANGSTEN

DSV

VARD 3 06

NOV

TECHNIP

SKANDI BUZIOS

PETROBRAS

VARD SOEVIKNES

PIPELAY

VARD 3 05

NOV

SUBSEA 7

SEVEN CRUZEIRO

PETROBRAS

MERWEDE

PIPELAY

DEC

SEABREEZE 13

RENEWABLES
GAMESA SHAREHOLDERS APPROVE MERGER WITH SIEMENS

Gamesas shareholders have

approved the merger with
Siemens Wind Power during an
Extraordinary General Meeting
held in Zamudio, Spain.
Under the deal, Gamesa will ab-

sorb Siemens wind power assets

in exchange for newly issued
shares in Gamesa. Siemens will
own 59% of the new company,
while Iberdrola will retain an
8% interest.
Following the approval, the next
stage is to secure confirmation
from the Spanish securities
market regulator that Siemens
has exemption from having to

launch a public takeover bid and

then obtain authorisation from
the anti-trust authorities.
The enlarged company would
have worldwide capacity of
around 70 GW, an order book
valued at EUR 21 billion,
revenue of around EUR 10
billion, adjusted EBIT of EUR
915 million, and roughly 22,000
employees around the globe.

BOSKALIS TO INSTALL FOUNDATIONS AT HORNSEA ONE

DONG Energy Wind Power has
awarded Royal Boskalis Westminster a contract to transport
and install the foundations for a
part of the Hornsea One windfarm offshore the north-east
coast of the UK.
Boskalis will deploy a new
crane vessel, which an existing

F-class heavy transport vessel

is currently being converted
into, for the transportation and
installation of the foundations.
The vessel will be equipped with
a 3,000-tonne mast crane, DP2
and additional accommodation
for up to 150 persons.

SAL TO TRANSPORT EQUIPMENT TO WALNEY EXTENSION

SAL Heavy Lift has signed a contract with Van Oord to deliver
cargo for the foundations and
support of the 660MW Walney
Extension offshore wind project
in the UK.
MV heavy-lift vessel Svenja has

BARGE MASTER GANGWAY FOR VROON

Vroon has placed an order

with Barge Master to install a
gangway on the newbuild walkto-work vessel VOS Start. The
vessel is currently under construction at the Fujian Southeast
shipyard in China, with delivery
scheduled for the second quarter
of 2017.
14 SEABREEZE

VOS Starts first campaign will

be providing offshore logistics
support, accommodation and
walk-to-work services to MHI
Vestas Offshore Wind on DONG
Energys 330MW Walney
Extension West offshore wind
farm.

been chartered for 30 voyages

to transport 87 monopiles from
Rostock, Germany to Belfast,
Northern Ireland; and 47 transition pieces from Aalborg, Denmark and 40 transition pieces
from Teesside, UK to Belfast.

RIGS
OIL PRICE VS RIG UTILISATION

INACTIVE RIGS NORTHWEST EUROPE

100%
90%

60%

85.1% 84.6% 84.0% 83.2% 83.1%

82.3%

76.9% 75.4% 75.9%

30%

74.2% 72.9%

78.6% 77.1%

$44.42

46.9%

$47.13

44.4%

44.5% $37.72

42.5%

75.1% 74.3% 74.8%

69.2% 68.2% 68.0%

66.3% 64.6%

$48.12

50%
40%

TYPE

STATUS

BORGLAND DOLPHIN

SS

WARM STACK

BORGSTEN DOLPHIN

TR

COLD STACK

$70

BREDFORD DOLPHIN

SS

COLD STACK

$65

BYFORD DOLPHIN

SS

WARM STACK

$60

COSLINNOVATOR

SS

WARM STACK

$55

COSLPIONEER

SS

WARM STACK

DEEPSEA METRO II

DS

COLD STACK

DEEPSEA STAVANGER

SS

WARM STACK

ENERGY ENDEAVOUR

JU

COLD STACK

ENERGY ENHANCER

JU

COLD STACK

$35

ENSCO 70

JU

COLD STACK

$30

ENSCO 72

JU

WARM STACK

$25

ENSCO 101

JU

WARM STACK

ENSCO 120

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 GUARDIAN

SS

WARM STACK

OCEAN NOMAD

SS

COLD STACK

OCEAN PRINCESS

SS

COLD STACK

OCEAN VANGUARD

SS

COLD 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

PARAGON MSS1

SS

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 714

SS

COLD STACK

SERTAO

DS

COLD STACK

SONGA DEE

SS

WARM STACK

$75

80%
70%

NAME

$80

$48.48

$42.25

39.2%

60.5%

76.3% 76.4%

57.4% 57.7%

$46.19 $51.20
$45.07 $46.14

$39.07

$33.20 39.1%
$30.80

39.9%

38.2% 37.2%
36.4% 35.5% 35.1% 35.6%

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

$50
$45
$40

CANADA CONTRACT FOR TRANSOCEAN

Suncor Energy has awarded a
contract to Transocean for a
15-month charter of its ultradeepwater semisubmersible
Transocean Barents offshore
Canada. The charter is due to
commence in the third quarter
of 2017 following the rigs arrival

from Norway, where she has

been stacked since the third
quarter of 2015. The contract
comes with a day rate of USD
260,000, providing Transocean
with an estimated backlog,
excluding mobilisation, of USD
119 million.

ENSCO SECURES MULTI-YEAR SAUDI CHARTERS

Ensco has recently signed two
multi-year jackup contracts,
with a combined duration of
eight years, with Saudi Aramco.
ENSCO 84 has been firmly
contracted until August 2021
with a day rate in the low USD

70,000s.
Meanwhile, ENSCO 88 is now
firmly committed to Saudi
Aramco until December 2019,
with her three-year extension
coming with a day rate in the
mid USD 60,000s.

RIG UTILISATION AND DAY RATES

UTILISATION

OCT
2016

OCT
2015

OCT
2014

OCT
2013

OCT
2012

SONGA TRYM

SS

WARM STACK

SWIFT 10

JU

WARM STACK

NORTHWEST EUROPE

57.7%

76.9%

95.3%

97.8%

96.4%

TRANSOCEAN BARENTS

SS

WARM STACK

SOUTH AMERICA

76.4%

85.1%

94.5%

95.9%

96.6%

TRANSOCEAN PROSPECT

SS

COLD STACK

70.9%

TRANSOCEAN SEARCHER

SS

COLD STACK

WEST ALPHA

SS

WARM STACK

WEST EPSILON

JU

WARM STACK

US GULF

35.6%

46.9%

63.0%

72.4%

RECENT DAY RATE BENCHMARKS

LOW (USD)

HIGH (USD)

UK HARSH HIGH SPEC JACKUPS

80,000

104,000

WEST HERCULES

SS

WARM STACK

WEST NAVIGATOR

DS

COLD STACK

WEST PHOENIX

SS

WARM STACK

WEST VENTURE

SS

COLD STACK

WILHUNTER

SS

COLD STACK

UK HARSH STANDARD SEMISUBS

100,000

110,000

SOUTH AMERICA DEEPWATER SEMISUBS

240,000

275,000

GLOBAL ULTRA-DEEPWATER SEMISUBS

230,000

308,000

GLOBAL ULTRA-DEEPWATER DRILLSHIPS

180,000

350,000

Source: IHS-Petrodata

SEABREEZE 15

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DUTY PHONES
CONUNDRUM CORNER

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