Seabreeze May

MAY 2015
RAY OF LIGHT FOR
AHTS OWNERS
CONTENTS
3
OSV MARKET ROUND-UP
ABOUT SEABROKERS GROUP
6
OSV AVAILABILITY, RATES &
UTILISATION - NORTH SEA 7
MONTHLY OSV SPOT RATES -
NORTH SEA
8
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.
9OSV NEWBUILDINGS, CONVERSIONS,
SALE & PURCHASE
12SUBSEA
15 RIG, FIELD & OIL COMPANY NEWS
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.
16 CONUNDRUM CORNER
& DUTY PHONES
Production and Administration:
Seabrokers Ltd, Aberdeen
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SKIEN
SINGAPORE
OSV MARKET ROUND-UP
PSV LAYUPS CONTINUE OWNERS DOWNBEAT ON OSV MARKET
BUT AHTS MARKET
The financial reporting season
positive rise in oil prices since
has been back upon us in recent
the start of the year, but came to
BRIGHTER FOR OWNERS weeks, with numerous OSV
the conclusion that “no improveThe PSV market is continuing
to prove troublesome for vessel
owners in the North Sea. The
majority of spot fixtures are
coming in with rates of just GBP
2,000 - 4,000, prompting many
owners to remove tonnage from
the market via layups. There
are now more than 20 North
Sea PSVs laid up, with more to
follow in the coming weeks. The
list of owners who have either
laid up PSVs already, or who
are preparing to lay up vessels,
includes Atlantic Offshore, Blue
Ship Invest, Bourbon Offshore,
COG Offshore, Deep Ocean,
Deep Sea Supply, DOF, Eidesvik,
Farstad, GulfMark, Island
Offshore, Rem Offshore, Simon
Møkster Shipping, Solstad
Offshore, Ultrapetrol, Vestland
and World Wide Supply.
On a brighter note for North
Sea owners, conditions within
the AHTS market have been
considerably better this month,
with a number of rig moves
hitting the market in quick
succession. This has left the
market much tighter than it
has been in previous months,
with very few vessels available
for charterers to choose from,
especially those seeking a vessel
with an ROV. This has allowed
some owners to push rates up
into the high GBP 20,000s and
GBP 30,000s (see p.6-7).
owners remaining downbeat on
their outlook for the remainder
of 2015. The reality being faced
by owners is a market where
the reduction in commodity
prices and associated decrease in
offshore activity has left a significant oversupply of vessels.
Vestland Offshore surmised the
market with the evaluation that
“a challenging period is expected
ahead; and the development in
the oil price will be decisive on
the activity of the oil companies.”
Deep Sea Supply noted the
ment... is expected in the short
to medium term” due to the
cost-cutting from oil companies
that has led to many projects
being delayed. Further concerns
were raised regarding the effect
of political sanctions on Russia,
and the difficulties being faced in
Brazil following the corruption
allegations there. However, there
were some positive reflections,
with Viking Supply Ships
remaining confident about the
long-term outlook for the niche
Arctic and harsh-environment
markets in particular.
OIL MAJORS EYEING UP MEXICO
The National Hydrocarbons
Commission of Mexico (CNH)
has prequalified 26 parties to bid
for 14 shallow water exploration
blocks in its first licensing
round. The opening of Mexico’s
oil and gas sector has been met
with great interest from international oil and gas companies,
who are keen on gaining access
to a market that was previously
exclusive to Mexican state oil
company Pemex.
The list of 26 prequalified parties
consists of seven consortium
groups and 19 individual companies. The list of individual
companies that have been prequalified includes Atlantic Rim
Mexico, BHP Billiton, Chevron,
Cobalt Energy, CEPSA, ExxonMobil, Hess, Hunt Overseas,
Lukoil, Maersk Oil, Marathon,
Nexen, ONGC, Pacific Rubiales,
Pemex, Plains Acquisition Corp,
Premier Oil, Statoil and Total.
The seven consortium groups
included BG with Galp Energia;
Eni with Noble Energy and
CASA Exploration; Murphy Oil
with Ecopetrol, Petronas Carigali and PTTEP; Pan American
Energy with EP Hidrocarburos
y Servicios; Talos Energy with
Sierra Oil & Gas and Glencore
E&P; Tullow Oil with Petrobal;
and Woodside Energy with
Diavaz Offshore and Pluspetrol.
Winning bids are scheduled to
be announced on July 15, 2015.
SEABREEZE 3
OSV MARKET ROUND-UP
ENERGY STORAGE SYSTEM FOR VIKING QUEEN
Eidesvik Offshore has entered
into an agreement to have an
Energy Storage System (battery
solution) installed onboard PSV
Viking Queen, the first time an
offshore vessel has had such a
system installed retrospectively.
Eidesvik has indicated that
this solution can provide a fuel
saving of approximately 18%
for the vessel, while NOx and
Greenhouse Gas (CO2e) emissions can be reduced by as much
as 25%.
In relation to this development,
Lundin Norway AS has extended
the firm period of its contract
with Viking Queen (pictured)
from 900 to 1,200 days. This will
keep the vessel occupied until at
least the first quarter of 2018.
Meanwhile, Eidesvik has also
recently received a contract
from Chevron UK for the longterm charter of its PSV Viking
MAERSK OIL RETAINS HAVILA FORTUNE
Maersk Oil has exercised the first
one-year option on its contract
with PSV Havila Fortune. The
vessel was initially contracted
for a firm period of one year
plus three one-year options. She
is now firmly committed until
August 2016, with two options
Princess. The vessel has been
chartered for a firm period of
19 months from June/July 2015,
with four further six-month
options available.
still available.
Havila Fortune (pictured c/o D.
Dodds) is working for Maersk
Oil offshore Denmark, and this
charter involves the provision of
a walk-to-work system. Havila
Fortune is an MT 6009 Mk II
PSV that was delivered in 2009.
STATOIL DECLARES OPTIONS ON MØKSTER VESSELS
Statoil has declared options
on its contracts with Simon
Møkster vessels Stril Pioner
(pictured) and Stril Poseidon.
The Stril Pioner PSV is now
firmly committed to Statoil until
at least July 2017, with one more
two-year option still available
on the contract. The VS-4403
4 SEABREEZE
(LNG) vessel has been working
for Statoil since her delivery in
2003.
Stril Poseidon, a VS-483 field
support and rescue vessel, is also
firmly committed to Statoil until
July 2017 following the exercise
of a two-year option on her
contract.
OSV MARKET ROUND-UP
SIEM PILOT TO PROVIDE SEARCH & RESCUE SUPPORT IN MED
The Norwegian Ministry of
Justice and Public Security has
awarded a contract to Siem
Meling Offshore to use one of
its PSVs for border control and
search and rescue operations in
the Mediterranean Sea. The Siem
Pilot PSV has been chartered for
a firm period of six months, with
further options available.
The vessel will be utilised under
the joint operation “Triton”, and
will take part in relief efforts to
rescue refugees attempting to
enter Europe by crossing the
Mediterranean Sea from North
Africa.
The Siem Pilot was selected
because she has sufficient dimensions to take on board as many
ATLANTIC OFFSHORE VESSELS KEPT BUSY
Atlantic Offshore has confirmed
that three of its vessels are being
retained on a long-term basis by
their North Sea charterers.
Nexen has exercised a one-year
option on its contract with ERRV
Ocean Tay, which will keep the
vessel busy until at least December 2016. Statoil has declared one
of the six-month options on its
as 500 refugees, she has a towing
winch, and she will be able to
deploy two fast rescue craft.
charter with AHTS vessel Ocean
King. She is now committed
until January 2016, with a sixmonth option and a 12-month
option still available. Finally,
Ithaca Energy has declared an
18-month option on its charter of
Ocean Sprite (pictured), committing the PSV/Standby/Rescue
vessel until July 2016.
GREEN LIGHT FOR SAIPEM
South Stream Transport, which
is controlled by Gazprom, has
lifted its suspension on activities
in the Black Sea. In turn, Saipem
has been given the green light to
commence work on the pipeline
that will be used to carry gas from
Russia to Turkey. Initially, the
South Stream pipeline was to run
from Russia to Bulgaria, but work
was suspended due to opposition
from the EU and sanctions
imposed on Russia. Following a
period of suspension, the end destination for the pipeline has been
changed to Turkey and Saipem
will now be able to commence
operations.
Saipem had originally chartered
a range of OSVs to support the
project, including PSVs Normand
Carrier, Normand Corona,
Normand Flipper, Sea Spark, Sea
Spider, Sea Springer, Toisa Independent and Toisa Invincible, and
AHTS vessels Maersk Tracer and
Maersk Transporter and Sea Lynx.
SEABREEZE 5
OSV RATES & UTILISATION
MAY 2015 - DAILY NORTH SEA OSV AVAILABILITY
38
36
34
32
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
0
PSV 2015
PSV 2014
AHTS 2015
AHTS 2014
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 MAY 2015
TYPE
MAY 2015
APR 2015
MAR 2015
FEB 2015
JAN 2015
DEC 2014
MED PSV
49%
50%
53%
72%
68%
72%
LARGE PSV
73%
71%
76%
78%
76%
78%
MED AHTS
60%
55%
59%
47%
69%
45%
LARGE AHTS
77%
63%
73%
71%
61%
42%
NORTH SEA AVERAGE RATES MAY 2015
CATEGORY
AVERAGE RATE
MAY 2015
AVERAGE RATE
MAY 2014
% CHANGE
MINIMUM
MAXIMUM
SUPPLY DUTIES PSVS < 900M2
£2,478
£11,296
-78.06%
£1,900
£3,861
SUPPLY DUTIES PSVS > 900M2
£2,921
£12,840
-77.25%
£1,711
£5,148
AHTS DUTIES AHTS < 18,000 BHP
£13,101
£12,190
+7.47%
£3,750
£24,000
AHTS DUTIES AHTS > 18,000 BHP
£19,461
£21,758
-10.56%
£6,000
£40,000
SPOT MARKET ARRIVALS & DEPARTURES MAY 2015
ARRIVALS - NORTH SEA SPOT
DEPARTURES - NORTH SEA SPOT
BALDER VIKING
EX RUSSIA
SEA LYNX
MEDITERRANEAN
BOULDER
EX USA
SIEM PILOT
MEDITERRANEAN
NORMAND BORG
EX BRAZIL
OLYMPIC PEGASUS
EX WEST AFRICA
PACIFIC DUCHESS
EX MEDITERRANEAN
VESTLAND CYGNUS
NEWBUILD
* Vessels arriving in or departing from the North Sea term market are not included here.
6 SEABREEZE
NORTH SEA AVERAGE SPOT RATES
NORTH SEA AVERAGE SPOT MONTHLY RATES
£40,000
£20,000
PSVs < 900m²
All Cargo Runs
£30,000
£15,000
£20,000
£10,000
£10,000
£5,000
£-
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2014
£9,813
£15,165
£9,746
£8,597
£11,296
£10,682
£10,595
£11,421
£11,609
£9,784
£8,521
£5,502
2015
£5,091
£5,389
£3,687
£2,818
£2,478
£-
£-
£-
£-
£-
£-
£-
£25,000
PSVs <
> 900M²
900M2
900m²
£20,000
£15,000
£10,000
£5,000
£-
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2014
£12,653
£20,559
£12,136
£11,409
£12,840
£9,112
£11,583
£14,432
£13,712
£10,278
£9,949
£5,639
2015
£6,141
£6,429
£4,886
£3,699
£2,921
£-
£-
£-
£-
£-
£-
£-
£70,000
£80,000
£70,000
£60,000
£60,000
£50,000
£50,000
£40,000
£40,000
£30,000
£30,000
£20,000
£20,000
£10,000
£-
AHTS < 18,000 bhp
PSVs > 900M²
900M2
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2014
£29,925
£22,073
£10,505
£28,314
£12,190
£14,485
£16,551
£68,689
£53,533
£32,724
£30,803
£6,708
2015
£12,541
£10,497
£15,578
£9,332
£13,101
£-
£-
£-
£-
£-
£-
£-
£80,000
£70,000
£60,000
£50,000
£40,000
£30,000
£20,000
£10,000
£-
AHTS
18,000 bhp
Rig> Moves
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2014
£35,129
£26,271
£17,553
£39,977
£21,758
£18,967
£28,759
£73,541
£68,657
£52,724
£28,222
£8,547
2015
£20,863
£16,171
£18,184
£13,617
£19,461
£-
£-
£-
£-
£-
£-
£-
£30,000
£25,000
Average Day Rates
Average
To Day
Month
Rates
(May
To2015)
Month (June 2013)
£20,000
£15,000
£10,000
£5,000
£-
PSVs < 900m²
PSVs > 900m²
AHTS < 18,000 bhp
AHTS > 18,000 bhp
2014
£10,833
£10,867
£12,591
£13,193
£20,252
£21,517
£27,835
£29,086
2015
£3,927
£-
£4,823
£-
£12,159
£-
£17,898
£-
SEABREEZE 7
FEATURE VESSEL
OLYMPIC BIBBY
Olympic Shipping’s recently delivered IMR support vessel
Olympic Bibby (pictured above c/o D. Dodds) has commenced a
six-week charter with Centrica.
The DP2 vessel was built to
Marin Teknikk’s 6021 design, and
was delivered from the Kleven
Shipyard in Norway in April.
Bibby Offshore has chartered the
Olympic Bibby for a firm period
of three years with a further
two-year option available.
Bibby has since chartered the
vessel out to Centrica, which has
a six-week inspection campaign
8 SEABREEZE
covering various locations in the
North Sea.
The Olympic Bibby (pictured
right c/o O. Dale) has a length of
87.75m, a 60-ton active-heave
compensated crane, and accommodation for 68 persons. She has
a deck area of 820m², and comes
equipped with one 150 bhp
Quasar MkII work-class ROV
and one Seaeye Lynx inspection
class ROV.
VESSEL SPECS:
Design: MT 6021
Length: 87.75m
Breadth: 19m
Main Crane Lift: 60 tons
Helideck: Sikorsky 92
Accomodation: 68 persons
OSV NEWBUILDINGS, S&P
REM ARCTIC DELIVERED IN NORWAY
Rem Offshore held a naming
ceremony for its newbuild PSV
Rem Arctic in Fosnavåg, Norway, on May 22nd.
The vessel (pictured c/o T. E.
Kvalsvik) was constructed at
the Kleven Verft shipyard in
Ulsteinvik. She was built to
Wärtsilä’s VS 485 MK III Arctic
design, which includes a number
of features for ice prevention and
de-icing. The vessel’s hull and
propulsion systems have ICE-1B
classification.
Rem Arctic will now enter the
North Sea spot market. She has a
deck area of around 1,000m² and
accommodation for 23 persons.
TIDEWATER ACCEPTS ONE NEWBUILD PSV BUT DELAYS TWO
The Jiangsu Zhenjiang Shipyard
in China has delivered Monty Orr
Tide, the fourth of six PSVs it is
building to the VARD 1 08 design
for Tidewater.
However, in another development
Tidewater has delayed the deliveries of two PSVs that are being
built at the COSCO (Guangdong)
Shipyard in China. Tidewater can
now elect to take delivery of one
or both of the vessels at any time
prior to June 30, 2016. Being built
to the Rolls Royce UT 771 CD L
design, these units will be sister
vessels to the Chauvin Tide and
Terry Tide (pictured), which were
also built at COSCO (Guangdong).
FIRST OF FOUR HAVYARD PSVS FOR COSL
China Oilfield Services Limited
(COSL) has accepted delivery of
Hai Yang Shi You 615 from the
Huangpu Wenchong Shipyard
in China. This is the first of four
PSVs that are being built for
COSL to the Havyard 832 design
at Huangpu Wenchong. These
vessels form part of COSL’s fleet
renewal programme.
Hai Yang Shi You 615 has a
length of 79m, breadth of 17.6m,
a maximum speed of 14 knots,
a deck area of 790m², and an
accommodation capacity for 23
persons. She has DP 2 station
keeping and comes with FiFi-1
notation.
ISLAND DISCOVERER LAUNCHED IN ROMANIA
The Vard Braila Shipyard in
Romania has launched a newbuild PSV for Island Offshore.
The Island Discoverer is being
built to Rolls Royce’s UT 717
CDX design, with final outfitting
to take place at the Vard Brevik
Shipyard in Norway. Delivery is
scheduled for April 2016.
Island Discoverer will be the
sixth PSV in Island Offshore’s
fleet built to the UT 717 design.
She has a deadweight of 4,200t,
a deck area of 900m² and an
accommodation capacity for 26
persons.
SEABREEZE 9
OSV NEWBUILDINGS, S&P
SINOPACIFIC LAUNCHES TWO SPP17A PSVS
The SINOPACIFIC Shipbuilding
Group has launched two SPP17A
PSVs at its Zhejiang Shipyard in
China.
The vessels are the first two
in a series of three that are
being built for Naviera Petrolera
Integral. The units will be chartered by Pemex, and will mark
the first entry of SINOPACIFIC’s
SP brand of offshore vessels into
the Mexican market. Designed
by Shanghai Design Associates,
a branch of SINOPACIFIC, the
SPP17A vessels use an all-electric
propulsion system and they
have a deadweight of more than
1,700mt.
SKANDI ANGRA DELIVERED IN BRAZIL
Norskan Offshore, a subsidiary
of DOF, has accepted delivery of
its newbuild AHTS vessel Skandi
Angra in Brazil.
The vessel was built to the VARD
2 11 design at the Vard Niterói
shipyard. She is the second of
three sister vessels being built
for Norskan, with Skandi Urca
delivered in 2014 and Skandi
Paraty to follow early in 2016.
Skandi Angra has now gone
onhire with Petrobras for an
eight-year firm contract. She
has a length of 93.5m, breadth
of 22.0m, bollard pull of 280
tons, and accommodation for 30
persons.
ICEBREAKER EN ROUTE TO NORWAY
The hull of Aleut, FEMCO’s
newbuild icebreaking AHTS
vessel, was launched at the Cemre
Shipyard in Turkey on May 16th.
The hull is now being towed to
the Havyard Leirvik Shipyard in
Norway, where final outfitting will
take place.
Aleut is the first of three FEMCO
OCEAN FALCON READY FOR SHELL
A naming ceremony was held on
May 29th in Aberdeen, Scotland,
for Atlantic Offshore’s newbuild
MRV Ocean Falcon.
The vessel was constructed by
Zamakona Yards at its facility in
San Sebastian in northern Spain.
Ocean Falcon is the last of three
vessels that have been built to
10 SEABREEZE
the Havyard 820 design for Atlantic Offshore at Zamakona. She
has a length of 66.8m, breadth
of 16m and a rescue capacity for
300 persons.
Ocean Falcon has been chartered
to Shell UK for a five-year firm
contract, with options to extend
for an additional five years.
vessels that are being built to the
Havyard 843 Ice design. She is
scheduled for delivery in the fourth
quarter of 2015, with her sister
vessels (Normann and Pomor)
to follow in fourth quarter 2016.
They will have a length of 86.7m,
breadth of 19.5m, bollard pull of
185 tonnes and Ice 10 notation.
OSV NEWBUILDINGS, S&P
SEISMIC VESSEL POLAR EMPRESS DELIVERED
GC Rieber Shipping has taken
delivery of its newbuild seismic
vessel Polar Empress. She was
built at Kleven’s Myklebust Verft
Shipyard in Norway.
Polar Empress is a 3D seismic
vessel with ice class 1A notation.
She has a length of 113m, breadth
of 21.5m and accommodation
capacity for 70 persons. With a
high bollard pull, Polar Empress
can tow up to 22 streamers.
GC Rieber Shipping’s cost for
Polar Empress was around NOK
700 million (USD 90.56 million).
She has been chartered to Dolphin Geophysical for a five-year
contract.
FIRST DAMEN TWIN AXE ORDER FOR OFFSHORE OIL & GAS
Damen Shipyards has received
an order from Groen Offshore,
Guard & Support for the first
Damen Twin Axe Fast Crew
Supplier 2610 vessel that will be
customised for offshore oil & gas
standby capabilities. The Damen
Twin Axe FCS 2610 design is
already popular in Europe’s
Offshore Wind construction and
maintenance sector but this will
mark its first entry into oil & gas.
The vessel will be utilised for
operations offshore Denmark following her quick delivery from
stock this summer from Damen
Maaskant Shipyards Stellendam
in the Netherlands.
VESSEL SALE ACTIVITY RAMPS UP
With tough times being endured
in the offshore oil & gas sector,
a number of vessel owners are
now looking to move on some of
their older tonnage. This has led
to a significant increase in sale &
purchase activity.
Among others, Atlantic Offshore
recently sold its 1972-built
ERRV Ocean Sun, Farstad has
sold its 1990-built PSV Far
Superior, Siem Offshore has sold
its 2005-built PSV Siem Sasha
(pictured c/o P Gowen), while
Solstad Offshore has sold its
1985-built AHTS vessel Normand
Jarl. Solstad has also recently
entered into a Memorandum of
Agreement to sell its 1986-built
AHTS vessel Normand Skarven.
RECENT DELIVERIES OF NEWBUILD OSVS
NAME
TYPE/DESIGN
OWNER/ MANAGER
COMMITMENT
HAI YANG SHI YOU 615
HAVYARD 832 PSV
COSL
TBC
MONTY ORR TIDE
VARD 1 08 PSV
TIDEWATER
TBC
OCEAN FALCON
HAVYARD 820 MRV
ATLANTIC OFFSHORE
NORTH SEA TERM
POLAR EMPRESS
ST-324 SEISMIC VESSEL
GC RIEBER SHIPPING
TERM
REM ARCTIC
VS 485 MK III ARCTIC PSV
REM OFFSHORE
NORTH SEA SPOT
SKANDI ANGRA
VARD 2 11 AHTS
DOF
SOUTH AMERICA TERM
SEABREEZE 11
SUBSEA
SUBSEA MARKET ROUND-UP
Even during a slowdown there
are opportunities out there for
some companies who are cash
rich, and James Fisher & Sons is
one of those companies.
The last few weeks has seen
James Fisher strengthen its
position and capabilities with
the purchase of assets and
companies. Earlier in May,
they announced that they had
reached an agreement with
KPMG to acquire a number of
subsea assets from Specialist
Subsea Services. Specialist Subsea Services’ key assets were five
ROVs and a significant amount
of subsea survey equipment.
However, not content with just
extending their capabilities in
the subsea sector, James Fisher
then finalised the GBP 3.2m
acquisition of Mojo Maritime
to strengthen the service they
provide to the offshore industry.
More recently, the copmany has
paid GBP 14.8m for the assets
and intellectual property rights
of X-Subsea, a designer and
operator of specialised excavation, trenching and dredging
equipment. X-Subsea went into
administration on April 27, 2015
after the collapse of parent company Reef Subsea. They were the
main competitor of James Fisher
Mass Flow Excavation.
SENER DEVELOPS SUBSEA SUPPORT VESSEL
Spanish ship Design Company
SENER is developing a new
IMR vessel specially designed for
subsea ROV light construction
duties, for worldwide service.
The ship will have an overall
length of more than 112m,
breadth of 22m and accommodation for 110 persons. The vessel
will be equipped with a 40t deck
crane, with an option for a 250t
crane and the capability to work
in a water depth of 4,000m. The
design also offers an optional
600t cable carousel, while the
main deck will be reinforced for
heavy loads, and the vessel will
have an integrated moonpool
and a helicopter deck.
FAIRFIELD TO DECOMMISSION DUNLIN
Fairfield Energy has confirmed
plans to start a decommissioning
programme for the Dunlin field
cluster in the northern North
Sea, subject to the necessary
regulatory approvals.
A phased decommissioning
process is expected to take a
number of years, with high
offshore activity levels maintained throughout, as a total
of 16 subsea wells will need to
be plugged-and-abandoned.
Fairfield chief executive David
Peattie said: “Taking into
account the asset’s lifecycle, the
depressed oil price and challeng-
12 SEABREEZE
ing operational conditions in the
North Sea, starting the decommissioning process is the most
appropriate action. Production
from all Dunlin cluster fields
will shut down in mid-June
2015, prior to the start of a full
decommissioning process. The
costs associated with decommissioning the Dunlin cluster fields
will be approximately GBP 400
million.
The Dunlin Alpha platform will
remain fully manned and operational, continuing to export third
party oil into the Brent system
pipeline in the meantime. The
Dunlin field came on production
in August 1978 and has produced
over 522 million barrels over its
37 years of operation, extending
the platform’s original 25-year
design life by 12 years to secure
substantially more reserves.
SUBSEA
TECHNIP AND CANYON SIGN MASTER CHARTER AGREEMENT
Canyon Offshore has entered
into a three-year plus options
Master Charter Agreement with
Technip.
The agreement will see Canyon
provide light construction
vessels, ROV services and tooling to support Technip’s subsea
construction projects in the US
Gulf of Mexico. Canyon will
have a range of vessel options
to use in the projects, including
OCV Rem Installer, IMR
support vessel Deep Cygnus, as
well as the OCV Grand Canyon
(pictured c/o A.Svenning) series
of ROV support vessels. In
addition, Canyon will supply
tooling, personnel, and ROV
project support to Technip.
ULSTEIN INTRODUCES NEW HEAVY LIFT DESIGNS
Ulstein has designed the first
two X-Bow heavy-lift vessels, the
HX103 and HX104 designs, for
the construction market.
The fully SPS compliant, DP3
vessels will have a large open
deck space and accommodation
for 350 and 500 persons respectively, and they will be capable
of worldwide operations. The
HX103 design will have a length
of 146m, and comes with a crane
with 1,000t lift at 26m outreach
revolving and 320t at 68m, in
addition to a deck crane of 50t
at 24m outreach. The larger
HX104-design vessel (pictured)
will have a length of 174m, heavylift capability of 2,000t at 30m
radius and 685t at 74m outreach.
MARIA AWARDED TO SUBSEA 7
Subsea 7 has secured the engineering, procurement, construc-
tion and installation contract on
Wintershall’s USD 2.25 billion
Maria field, offshore Norway.
Project management and the
engineering has commenced
on the project, which is valued
at around USD 300 million.
Offshore activities, which is due
to commence in 2016, will utilise
a variety of Subsea 7’s vessels,
including the newbuild VS4285
HCV-designed Seven Artic,
which is due to be delivered
from the Hyundai Heavy Industries yard in South Korea in
2016. Subsea 7’s offshore campaign is due to finish in 2017.
DELTA SUBSEA SECURES NEWBUILD
Delta SubSea has signed an
agreement with Olympic Shipping for newbuild IMR support
vessel Olympic Delta, formerly
known as Olympic Nike.
The vessel will be equipped
with two Delta SubSea Schilling
HD 150 HP work-class ROVs.
Additionally, the newbuild has
a length of 94 metres and an
80-tonne active-heave compensated crane. The vessel is due for
delivery from the Kleven Verft
shipyard in Norway in July.
SEABREEZE 13
SUBSEA
Q5000 DELIVERED TO HELIX
Helix Energy Solutions accepted
delivery of semisubmersible
well intervention vessel Q5000
from Sembcorp Marine’s Jurong
shipyard on May 5. The vessel is
now en route to the US Gulf.
The semi has a length of 70m,
max lift of 399-tonnes and
accommodation for 140 persons.
She is designed to perform a
wide variety of tasks, including
subsea well intervention, field
and well decommissioning,
installation and recovery of
subsea equipment, well testing
and emergency well containment. Helix and BP have agreed
to amend their existing 2013
agreement to defer the commencement of well intervention
services in the US Gulf of Mexico
to April 1, 2016, from its original
start date of the third quarter
of 2015. The contract period
IMR CONTRACT FOR DEEPOCEAN
GDF Suez E&P Norge has
awarded DeepOcean a four-year
inspection, maintenance and
repair contract to cover all ROV
based work on the Gjøa field and
associated subsea assets.
DeepOcean will utilise vessels
from its North Sea-based fleet for
the campaign. DeepOcean currently has nine vessels operating
in the North Sea, in addition to
the Salt 304 OCV-designed Edda
Freya, which is currently under
construction at the Kleven Verft
COST REDUCTION PLANS FOR SUBSEA 7
Due to the difficult business and
economic conditions in the oil and
gas market and declining workload, Subsea 7 will begin a cost
reduction programme to reduce
the size of its fleet and workforce.
Subsea 7 advise that the workforce will reduce by 2,500 down
from the current 13,000. Consultation with employees both
in Norway and in the UK have
started. As previously highlighted by Subsea 7, they also plan
to reduce the size of their global
fleet by up to 11 vessels over the
next 12 months. The reduction
remains at five years (with two
one-year extensions) with a
minimum of 270 days annually.
Yard, Norway. The DP3 vessel,
which has a length of 149.8m
and a 600t AHC crane is ,due for
delivery in 2016.
GDF SUEZ has chosen to
combine the previous separate
contracts for Inspection scope and
the Maintenance and Repair work
into this single IMR contract.
in the fleet will be achieved
by the non-renewal of charter
vessels and either the disposal or
stacking of owned vessels. At the
end of 2014, the fleet consisted
of 39 vessels with a further five
under construction.
EUROPEAN BUILT SUBSEA DELIVERIES (NEXT THREE MONTHS)
SHIP OWNER
NAME
CHARTERER
SHIP YARD
TYPE
DESIGN
MONTH
ALLSEAS
PIONEERING SPIRIT
TALISMAN
FINAL OUTFITTING
DERRICK PIPELAY
-
JUN
CEONA
CEONA AMAZON
-
HUISMAN SCHIEDAM
OCV
-
JUN
FARSTAD
FAR SENTINEL
FARSTAD
VARD LANGSTEN
OCV
VARD 3 07
JUL
OLYMPIC SHIPPING
OLYMPIC DELTA
DELTA SUBSEA
KLEVEN VERFT
IMR
MT 6021
JUL
DOF SUBSEA
SKANDI AFRICA
TECHNIP
VARD SOEVIKNES
OCV
OSCV 12
AUG
14 SEABREEZE
RIG, FIELD & OIL COMPANY NEWS
OIL PRICE
VS RIG
UTILISATION
100%
90%
98.9% 98.3% 97.3%
95.8% 95.9%
94.4% 94.1% 94.2% 94.2% 93.8% 94.5% 94.8% 93.3%
$109.68
$111.87
$120
95.3% 94.3% 95.4% 94.9%
93.6%
$106.98
92.2% 91.8%
92.8% 93.2% 92.3%
91.3%
$101.92
80%
70%
90.1%
$110
90.0%
$100
$97.34
$90
$87.27
71.6% 71.1% 70.8%
60%
67.5%
$80
$78.44
65.8%
$70
63.0% 62.9% 61.2%
$62.16
53.8% 54.9% 53.5% $65.84
58.1%
$57.93
50%
$55.79
$59.39
$60
51.6%
$50
$48.42
40%
May 14 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 May 15
Average Brent Crude US$ / Bbl
Northwest Europe Rig Utilisation
South America Rig Utilisation
US Gulf Rig Utilisation
$40
MIDDLE EAST CONTRACTS FOR ENSCO JACKUPS
NDC has awarded contracts to
Ensco to charter jackups ENSCO
104 (pictured) and ENSCO 110,
each for a period of three years.
Work will take place offshore
the United Arab Emirates, with
newbuild jackup ENSCO 110 al-
ready under contract to NDC and
ENSCO 104 due to commence
operations around late June. Both
rigs can work in water depths of
400ft, and they will command a
day rate of USD 114,000 during
their respective charters.
TOTAL RETAINS ROWAN JACKUP IN NORTH SEA
New rig fixtures have been few
and far between in the North
Sea in recent months, especially
those of any significant duration,
so contractors will be happy
to see Total retain incumbent
jackup Rowan Gorilla V. The rig
RIG UTILISATION
INACTIVE RIGS NORTHWEST EUROPE
MAY
2015
MAY
2014
MAY
2010
NORTHWEST EUROPE
90.1%
98.9%
92.0%
SOUTH AMERICA
90.0%
94.4%
95.9%
US GULF
51.6%
71.6%
65.0%
LOCATION
RIG TYPE
is now contracted to Total UK
until August 2016 as opposed to
August 2015. The charter day
rate has been revised from USD
274,000 to USD 170,000 effective
from January 2015; this will rise
to USD 175,000 in January 2016.
AVERAGE RATES US$
SEMISUBMERSIBLE < 1,500 FT WD
296,000
SEMISUBMERSIBLE > 1,500 FT WD
354,000
SEMISUBMERSIBLE 4,000 FT + WD
435,000
DRILLSHIP 4,000 FT + WD
522,000
JACKUP IC 300 FT WD
110,000
JACKUP IC 300 FT + WD
175,000
NAME
TYPE
STATUS
LOCATION
BORGNY DOLPHIN
SS
COLD STACKED
BELFAST
COSLPIONEER
SS
TEMP STACKED
CCB, AGOTNES
ENERGY ENDEAVOUR
JU
COLD STACKED
ROTTERDAM
ENSCO 70
JU
WARM STACKED
TEESSIDE
GSF GALAXY III
JU
COLD STACKED
INVERGORDON
HERCULES TRIUMPH
JU
WARM STACKED
ROTTERDAM
MAERSK RESILIENT
JU
WARM STACKED
INVERGORDON
OCEAN NOMAD
SS
COLD STACKED
INVERGORDON
OCEAN PRINCESS
SS
COLD STACKED
INVERGORDON
OCEAN VANGUARD
SS
COLD STACKED
INVERGORDON
SEDCO 712
SS
TEMP STACKED
INVERGORDON
TRANSOCEAN SEARCHER
SS
TEMP STACKED
KRISTIANSUND
WEST NAVIGATOR
DS
COLD STACKED
SLOVAG
SEABREEZE 15
CONUNDRUM CORNER,
DUTY PHONES
ULTRA-DEEPWATER FIXTURES
THE SEABREEZE ARCHIVE
Ocean Rig and Eni, through an Omnibus Agreement, have formally signed a contract to extend
drillship Ocean Rig Poseidon’s charter offshore
Angola by one additional year. The rig is now
firmly committed until the second quarter of 2017,
with a total contract backlog of USD 367 million.
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 :
[email protected]
In a sign that operators may now be looking to
take advantage of the reductions in day rates,
Ocean Rig has also recently secured a contract
from Eni Angola for another of its drillships,
Ocean Rig Olympia. This unit has been chartered
for a minimum period of eight months, with a total
contract backlog of around USD 91 million. Operations will commence in the third quarter of 2015.
CONUNDRUM CORNER
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What film is represented by the symbols below?
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The correct answer was:- Ocean’s Eleven
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D) 30
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16 SEABREEZE
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