Braemar Seascope Offshore - Asia & Australia Report Asia & Australia Report - October 2013
October 2013
MARKET NEWS & ANALYSIS MARKET COMMENTARY RIG NEWS
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Subsea Market Report
Welcome to the latest edition of the Braemar Seascope Offshore Asia & Australia Report. Offshore Asia and Australia is still growing and utilisation remains strong for owners. The AHTS market is in constant use with long and short term charters being filled by 8,000BHP and 10,000BHP vessels. Whereas, PSVs continue to be delivered among the newbuilds being ordered and delivered are vessels for Otto Marine, Vroon and Deep Sea Supply. The latter has recently fixed its latest delivery the Sea Frost. Meanwhile, in Australia a new Government has begun to implement changes with a New Minister of Industry and drilling for the Prelude FLNG has started.
Please ensure that you have our new contact details. Aberdeen: offshore.aberdeen@braemar.com London: offshore.london@braemar.com Singapore: offshore.singapore@braemar.com Perth: offshore.perth@braemar.com Sale & Purchase offshore.snp@braemar.com Research: offshore.research@braemar.com We hope you find the latest edition of our report useful and look forward to hearing your feedback and comments.
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Market Commentary
A
s we near the end of the fourth monsoon is at this moment better than other quarter of 2013, we start to see the AHTS vessels on the market. fixture rates slow up but utilisation The 16,000 BHP vessels continue to be of a still remains strong for many owners. concern in the region, as vessels have There is little change with the 5,000 BHP AHTS as redelivered from term contracts and the vessels are working but again more vessels deliver. This combined for the same rates as earlier in the “ Malaysia Has Been with concerns about Niko Energy year. There are a few vessels starting to be redelivered from Soaking Up the Majority of in Indonesia which currently has three large vessels on contract means October onwards, where it will be the PSV Vessels in the overnight the region could be flooded difficult to secure consistent work Region� with these large vessels. though the Monsoon. The requirements have only trickled in this quarter and the outlook for fourth quarter is much the same. PSV vessels continue to deliver but at the moment there is still an appetite for them. Medium sized (600 square metres) PSVs have remained in short supply while the larger (900 square metres) PSVs have competed in that sector.
The 8,000 BHP AHTS vessels have seen some competition in recent weeks with as many as four vessels available at a time ex Singapore. In the second quarter this year we have seen some good term requirements, at times leaving no availability. However, this year as a whole there has been limited term contracts outstanding. The 8,000 BHP vessels and the 10,000 BHP vessels have followed similar paths in terms of market and availability. Nevertheless, the only difference for the two types of vessels is the term of the contracts. The 8,000 BHP vessels have fixed long term work whereas the 10,000 BHP have secured more short term contracts, meaning in October and November there will be a large number of 10,000 BHP redeliveries. The 12,000 BHP AHTS vessels remain strong in the third quarter with limited availability. The overall outlook for the 12,000 BHP vessels through the
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Malaysia has been soaking up the majority of the PSV vessels in the region but recent tenders have shown that the market is opening up and as the monsoon hits and the boats will continue to pour out of China we do not expect that to change until the peak period next year.
Southeast Asia
AHTS Extensions for Salamander Energy
Salamander Energy has extended both Swire Pacific’s 8,000 BHP AHTS Pacific Valkyrie and POSH Semco’s 8,000 BHP AHTS the POSH Virtue for a further 12 months. Both vessels are to continue supporting Atwood Oceanics’ Drilling Rig the Atwood Mako in Thailand.
VOS Vessels Head to Thailand The Vos Atlas and the Vos Achilles have completed a charter with PTTEP offshore Myanmar. They are now in Singapore ready to head off Thailand for a fixture of three months with Chevron. Also joining them is the Vos Triton firstly returning to Singapore, then heading to Thailand. All three vessels will be contracted until the first quarter of 2014 on support duties for various rigs and operations. Both ships are 5,150 BHP AHTS vessels.
Substitute Work for Greatship Roopa The Greatship Roopa is chartered with Reliance after completing work with ONGC. The Seatech designed PSV is acting as a substitute for the Greatship Dhriti which is en route to India. The Greatship Dhriti has been fixed on a contract with Reliance for one year with four yearly options. The Greatship Roopa was built in 2012 and has a deck area of 726 square metres. Whereas the Greatship Dhriti is a UT-755LN designed vessel built in 2008 with a deck area of 680 square metres.
Sea Flyer Heads to the North Sea The Sea Flyer, from Deep Sea Supply, is currently fixed on a short term charter with Mubadala in Malaysia. It is understood that 2013 built PSV vessel will eventually head to the North Sea, where it is fixed on a term charter. The PSV vessel is a PX-105 CD design ship with a deck area of 1,000 square metres.
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Australia / New Zealand
First Charter for Mermaid Inscription
The Mermaid Inscription has secured her first charter with Allseas. The Mermaid Inscription is a 2013 PSV built in Fujian Mawei yard in March and is currently working offshore Australia on a 15 month charter with Allseas. The charter is expected to be completed in the middle of 2014.
Farstad Secures Series of Australian Charters Farstad has announced a series of fixtures offshore Australia. The AHTS vessels Far Sky and Far Grip have been fixed to ENI Australia for 5 months firm plus 5 months of options to support the Ensco 104 rig at the Evans Shoal gas field. In addition the AHTS vessels Far Sword and Far Sound are set to support the Jack Bates semi-submersible rig for three wells firm. Furthermore the AHTS Far Sabre and Far Scimitar are working for Woodside off North Western Australia.
Britoil 81 Fixed for Bareboat Charter Britoil 81 is currently in Indonesia, but at the end of September was set to sail to Australia for a fixture on a bareboat charter with Mermaid Marine for one year, where the ultimate charterer is Chevron. Britoil 81 is a 2009 built AHT vessel with a bollard pull of 110t.
Farstad PSV & AHTS for Australia Work After a charter with ConocoPhilips in Australia, the Far Starling has been fixed on a forward charter for up to two months from mid November. Whereas, the Far Saltire after completing a charter to Shell Australia will be on its way by the end of September to support the semi Nanhai VI in Australia for BHP Billiton. The AHTS is a 2002-built vessel with a deck area of 490 square metres and a bollard pull of 180t.
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S&P Newbuilds Naming Ceremony for Go Pheonix
Otto Marine recently held a naming ceremony for their newbuild Go Phoenix. The Go Phoenix is a VS-491 DP2 designed vessel with a bollard pull of 260t. Otto Marine has scheduled to build four units of the VS-491 where the next two will be completed by 2014.
Total of Ten PSVs on Order for Vroon Vroon has ordered a further two platform supply vessels, which makes a total of ten under construction, at the COSCO Guangdong Shipyard in China. Four PX-121 design PSVs are being built at Guangdong, whereas the remaining six KCM design vessels will be built at Fujian Southeast Shipyard. All the ships are scheduled to be delivered during 2015.
Pacific Radiance Orders PSVs from Ulstein Pacific Radiance has ordered two platform supply vessels from Ulstein, both of which are PX-121 designed vessels. The construction of these vessels is happening in a Chinese shipyard and they are estimated to be delivered by Q3 2015. The contract also has the option of two more of the 840 square metre decked vessels that can accommodate up to thirty.
Cosco Secures Orders Over USD 200 Million Cosco has secured Offshore contracts of USD 200 million to build PSV vessels. The Cosco Guangdong Shipyard has secured two contracts, firstly to build two PSVs with an option of two more additional PSVs for a Norwegian company, the vessels should be delivered by 2015. There is also a second contract for a another two PSVs for a Singapore based company with an option of six more PSVs. Cosco has also secured the order of a semi-submersible flotel called the Axis Vega for Axis Offshore, the delivery of this new vessel is expected by the end of 2015. ŠCopyright Braemar Seascope Offshore 2013
S&P Newbuilds Carlotta Offshore Order a VARD PSV Vessel
Carlotta Offshore has ordered a 4,000 DWT PSV from the Vard Vung Tau yard in Vietnam. The vessel ordered is a VARD 1 08 design and is expected to be delivered late 2014.
Jaya Scout Renamed Scout by Trelco Marine
Second Hand S&P
The Jaya Scout has been renamed by the new owners Trelco Marine Services to Scout. The 4,750 BHP AHTS vessel is reportedly fixed with Oxy in Qatar until 2017. The Scout was built in 2005 and was previously owned by Jaya Holdings.
Mermaid Sells the Mermaid Performer
Mermaid Maritime has sold their vessel the Mermaid Performer to Prospect Marine Limited. The AHT vessel is a 3,000 BHP with a clear deck space of 136 square metres and accommodation available for 30.
Armada Tuah 303 Delivered to Bumi Armada Bumi Armada received the delivery of the first of four PSVs ordered from Sentinel Offshore at Xiamen Shipyard in China. All four PSVs are worth a total of USD 80 million. The delivered vessel named the Armada Tuah 303 is a KCM 75M design with DP2 and has a deck area of 700 square metres. The next PSV is expected in the third quarter of this year while the two remaining are expected in the fourth. ŠCopyright Braemar Seascope Offshore 2013
Constrution & Subsea Harkand Harmony Secures Three Year Fixture Harkand has invested in a newbuild ROV support vessel the Harkand Harmony, which has been secured by a three-year hire purchase deal. The ASL Marine Holdings built vessel has integrated DP2, 580 square metre main deck and a 4.5m moonpool. The Harkand Harmony along with two new Triton XLX ROVs which will be delivered in August, are to help Harkand progress its Asia Pacific development plan.
Asia Excavation Work for Reef Subsea Reef Subsea has secured three new contracts. In Singapore the contract involves the usage of their T8000 excavation tool, which is designed for seabed excavation of depths to 300m. Their second contract is at the Dai Hung Oil Field located in Vietnam and involves seabed preparation for Seadrill’s West Tucana Rig. The third contract is with COOEC Subsea Technologies on the Li Wan 3-1 Gas Field in the South China Sea. The company also a recently completed a contract for Shell, where Reef Subsea worked on a pipeline repair project off Bukom Island for Leighton Offshore.
Sigma Offshore Secures GBP 40M Contract Sigma Offshore has secured a contract for a project in the Indian Ocean, where engineering support will be provided to Bumi Armada for over GBP 40 million for a turret mooring system for an FPSO vessel in the Cluster-7 field in India. The Project is part of a charter contract potentially worth GBP 707 million that has been awarded to Bumi Armada and Shapoorji Pallonji (SPCL) as a 50:50 joint venture to provide an FPSO to India’s Oil and Natural Gas Corporation Limited’s (ONGC) Cluster-7 field.
IKM Subsea Awarded Two ROV Contracts Two ROV contracts have been awarded to IKM Subsea Singapore from the same client. The first contract will be using the Merlin WR200 Workclass ROV with all the required personnel and toolings, the contract will be complete by the end of October. The second contract shall use a similar system and will also be mobilised with personnel and toolings. ©Copyright Braemar Seascope Offshore 2013
Rig News
SGD 190M FPSO Contracts for Keppel
Keppel has secured a pair of contracts for two FPSO conversions worth a combined total of around SGD 190 million. The deals, which are with SBM Offshore and M3nergy Offshore, will see the units prepared for work on the Stones ultra deepwater development by Shell in the Gulf of Mexico and on the Bukit Tua field in Ketapang Block in Indonesia for PT Trasmudra Usaha Sejahtera respectively.
190M FPSOinContracts for Keppel Otto SGD Energy Drilling Galoc Oilfield Continues The two development wells Galoc-5H and Galoc-6H, operated by Otto Energy in the Galoc oilfield, located offshore Palawan Island are being drilled within the existing producing field commissioned in 2008. Drilling is expected to take approximately 115 days including flowing of the wells for clean up. The DOF operated Skandia Skansen construction vessel will be used to install subsea equipment after both wells have been drilled. The vessel will also hook-up both wells to the FPSO Rubicon Intrepid.
Vantage’s Progress of Tungsten Explorer
Vantage Drilling’s Ultra-deepwater drillship, the Tungsten Explorer, has begun its initial operations in Southeast Asia. Their Jack-up rig the Sapphire Driller has received a Letter of Intent for a two year contract with options to work in West Africa.
Manora Development in Thailand Approved Mubadala Petroleum has approved development of the Manora field in the Gulf of Thailand following a successful appraisal program that occurred in 2010. The development concept was selected in 2011 where a central processing platform will produce into a floating storage and offloading vessel (FSO). The development will include 10 production wells and five water injection wells targeting the primary reservoir. The expected reserves recoverable is estimated to be 20.2 million barrels (gross). ©Copyright Braemar Seascope Offshore 2013
Governmental Issues
New Minister for Industry in Australia
The Australian Government has abolished the Department of Resources, Energy and Tourism and has established the new Department of Industry. The Hon Ian Macfarlane MP will be the new Minister for Industry after being sworn in following recent elections in Australia. He will be supported by the Hon Bob Baldwin MP who will be Parliamentary Secretary to the Minister for Industry.
New Zealand Discusses Exploration Proposals New Zealand is discussing the possibility of opening a further 434,000 square kilometres for oil and gas exploration in 2014. Energy and Resources Minister Simon Bridges said the government was starting a consultation with the local governments and iwi (Maori tribal groups) on the possible five offshore areas for a block offer which will occur in 2014.
Investments
China Invests in Oil and Gas Exploration
China is to invest 80 billion Yuan in oil and gas exploration this year. The investment is to reduce the dependence on imports and ensure security of energy supply. From 2008 up to 2011, around 5 billion tonnes of petroleum and approximately 3 trillion cubic metres of gas were discovered.
Woodside Opts for FLNG at Browse
LNG
Woodside has recommended the use of a floating LNG unit to develop and commercialise the three Browse gas fields offshore Australia. The decision follows the evaluation of alternative concepts after a plan for an onshore development at James Price Point was dropped earlier this year. This recommendation will use Shell’s FLNG technology and Woodside’s offshore development expertise for the Browse LNG development.
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International
Russia Arctic Exploration Investment
Recently Russia has reportedly announced the allocation of RUB 20 billion on exploration in the Arctic. Deputy Minister of Resources and Environment Denis Kharamov made the announcement at RAO/ CIS Offshore 2013.
UK Helicopter Investigations Underway A series of investigations and inquiries are to be held in the UK into the safety of Super Puma helicopters following a fatal crash off Shetland earlier in the year. The incident caused the temporary grounding of the UK Super Puma fleet and forced oil companies to utilise AHTS and PSVs to carry out crew transfers. This additional demand on top of the usual seasonal spike in North Sea vessel requirements temporarily pushed dayrates to high levels.
Naming for Aegir Before off to Mexico The Heerema Vessel the Aegir had its official naming ceremony at the end of September before departing to Mexico to commence its first assignment. The SOC 5000 (DP3) Ulstein designed deepwater construction vessel is equipped with 32 inch radius pipelay equipment and deep water lowering to 3,500m.
Mexico Announces Plans for Oil Sector Reform Mexican President Enrique Pena Nieto has proposed reforms to the Mexican oil industry that could see it opened up to private investment. The plans have been held back from going as far as privatisation as no oil concessions will be sold off although there has been opposition over the move from opposition political parties. According to Mexican Government figures Mexico faces becoming a net oil importer as early as 2018 if major new oil projects are not developed. ŠCopyright Braemar Seascope Offshore 2013
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Bunker Price GBP/MT
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Bunker Price in Aberdeen 2011 to Present
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Price courtesy of Scandinavian Bunkering, subject to supply method, volume and market fluctuations.
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Contact Us Braemar Seascope Offshore is a division of Our services include: Braemar Shipping Services PLC, a leading Spot and period chartering integrated provider of brokering and consultancy services to the shipping industry. Short sea and ocean towage At Braemar Seascope Offshore our aim is Newbuild and second hand sale & to provide cost effective solutions to our purchase clients' offshore programmes. Regular advances in technology mean our Bespoke research and reports work is a direct response to constantly Corporate mergers, acquisitions & changing market needs.
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