Braemar Seascope Offshore - North Sea Vessel Report North Sea Vessel Report - Issue 67: October 2013
October 2013
Issue 67
MARKET NEWS & ANALYSIS VESSEL DAYRATE CHARTS RIG NEWS
Dry Cargo
Tankers
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Containers
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Offshore
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Sale & Purchase
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Subsea Market Report
Welcome to the latest edition of the Braemar Seascope Offshore North Sea Vessel Report. Rates on the North Sea Spot Market have seen a rise in both AHTS and PSV vessels. Average rates for September were GBP 51,455 for large AHTS vessels and GBP 38,455 for medium. Meanwhile PSVs were averaging GBP 19,586 for large and 19,600 for medium sized vessels. The next edition of the North Sea Vessel Report will be out on November 7th/8th. In the meantime, 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 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. Ani Bablanian Researcher
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For the latest on the subsea construction and survey vessel availabilities please contact us for a copy of our Subsea Vessel Market Summary. We are constantly monitoring the requirements, fixtures and availability of the North Sea fleet. For more information please email us.
Market Commentary
T
his month has seen a potentially significant change in various offshore markets, with the prospect of poorer fortunes for some Owners, at least in the short term. Weeks 39 and 40 marked a sudden end to various supply assignments for PSVs resulting in a handful of vessels rejoining the spot market ex Aberdeen. Rates here have dropped significantly as a result. Equally Norway, normally bereft of prompt supply vessels has also seen supply vessels prompt, for the first time in months. That said there has been fixing on the spot market, and a number of term PSV fixtures from the likes of Apache and Team in the UK. Most expect a quieter time on the term market at least in the coming weeks. On the anchor handling front, the past 7-10 days have seen a lull in rig move activity across UK and Norwegian waters, with owners again eager to fix what requirements there are. The weather remains unsettled which has created some demand for large vessels with WROV systems, especially for chain inspection, reinstatement and other project works. Some in Norway without such specialisation have been willing to fix for 2-3 weeks at lower levels, such has been the eagerness of some. Statoil in particular are now at the end of their busier rig move spell but most in Norway agree it will not be too long before they come back to the spot market again. On the subsea side, vessels remain at work but are soon to complete their seasonal work scopes. Some will likely remain alongside for some time but will be buoyed however by recent awards and talk of fresh projects for Q1/2 2014. Walk to work vessels have also commenced their demobs recently, and will soon get cast back into the Autumn / Winter spot market. There have been several significant vessel deliveries this month. The Ulstein Blue Protector delivered this month to the supply market, ŠCopyright Braemar Seascope Offshore 2013
GRAEME RIDDELL Offshore Shipbroker
Click Here to Email Graeme offshore.aberdeen@braemar.com Tel: +44 (0)122 628 470
MT6022 Olympic Ares to the subsea sector and Skandi Iceman to the AHTS and specialist sector. Skandi Iceman in her bollard pull test of the 2nd October achieved a decent 300t. The plan is that the high specification ice classed AHTS will join the spot market at least in the short-term. Notable exits are the Far Senator, departing for Shell Brazil (6 months + opts) and the two DOF AHTS Skandi Stord and Skandi Saigon away to the Mediterranean for 80 days plus 40 daily options for clients Total in Egypt.
Chartering
Long-Term Requirements
There are five outstanding long-term requirements: 1 x PSV / Centrica /12mth+ 1yr +1x6 mth opt or 2.5yrs firm 1 x PSV / Centrica / 2 wells (250 days)+4x1 well opts/ Nov 1 x PSV / EnQuest / 1,2 or 3 years + opts / comm. Oct 2013 1 x PSV / Shell UK / 5 yrs + opts / comm. Jan 2014 1 x PSV / Peterson Den Helder/1,2 or 3yrs + opts / Jan 2014
Medium-Term Requirements There is one outstanding medium-term requirement: 1 x PSV / Petrofac Germany / 3 months+3x2 mnth opt / Oct
Dina Star Supports Barents Rig Large PSV Dina Star has been fixed to MLS, on behalf of GDF, for a period of 1 firm well + 1 well option to support the ultra-deepwater DP semi Transocean Barents in the Norwegian Sector. Since delivery in April this year the MT-6015 Design PSV has been fixed onto a combination of project and straight supply charters, most notably to EMAS where she provided trenching support duties in Norway. Should the well option not be declared the vessel could be available again on the spot market as early as November.
MOG Extends Contract of Maersk Frontier
The Maersk Frontier has been extended with MOG for another 3 years plus options for pool support in the Danish sector. The PSV is Maersk's own F-type design based on the popular UT-745 model that has a 907 square metres deck and 7,200 BHP.
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Chartering
Far Senator Leaves the North Sea
Shell Brasil has sealed a 6 month contract with two months options for Far Senator. The vessel is a UT-731 CD design that has built up a good track record in the North Sea spot market since entering service in April this year. Farstad have also secured another two contracts in South America including the Far Swift which has been chartered by Total E&P for 6 months drilling support for the Noble Clyde Smith. Lastly Petrobras has taken the five month option for the AHTS Far Sailor in October. All three contracts are valued at a combined total of NOK 150 million, excluding options.
Maersk Chignecto Returns to North Sea The Maersk Chignecto has arrived in the North sea from St Johns, East Coast Canada having completed a long term commitment offshore Canada. The AHTS, which is being marketed as a specialist vessel for jack-up rig moves in the Southern North Sea, did not have to wait long for it's first charter after Shell UK picked the vessel up for the move of the Noble Al White. The 1983 AHTS is a Husky-type design vessel with a bollard pull of 120t and a deck area of 475 square metres.
Sea Flyer Heads to the North Sea PSV Sea Flyer, owned by Arendal based Ship Owner Deap Sea Supply, is working on a short term charter with Mubadala in Malaysia but will shortly be making its way to the North Sea where it will begin work for Apache on a term charter. The vessel, a PX-105 CD design with a 1000 square metres deck, has been chartered by Apache along with sister vessel Sea Forth for long term support duties in the North Sea. Apache also extended the Blue Prosper and Blue Fighter for one year plus one year option at the same time.
Toisa Invincible works for ADTI The Toisa Invincible is expected to commence a one well charter with ADTI during October having spent the last two months on the spot market. The vessel has been chartered to support the Ensco 92 in the Dutch sector and is expected to last around 90 days. The VS483 design was built in 1998 with DP2 and a deck area of 986 square metres. ŠCopyright Braemar Seascope Offshore 2013
Chartering
Two DOF Vessels Leave North Sea for Egypt
The Skandi Stord and the Skandi Saigon have left the North Sea in September for a fixture with Total Egypt. The two DOF vessels will be supporting the Noble Paul Romano rig for 80 days firm and 40 daily options. They are expected to be back on the spot market in January. The Skandi Stord vessel built in 1999 is a KMAR 404 design with a 184t bollard pull. Whereas, the Skandi Saigon was built in 2011 and is a STX-AH 08 design with a bollard pull of 196t.
Stril Neptun fixed by ConocoPhillips The multi-purpose supply/standby vessel the Stril Neptun has been chartered out to do supply work for ConocoPhillips. The duration of the charter will be for 40 days firm with a week and 21 daily options. The PSV is a VS-470 design built in 1999 with a deck area of 580 square metres.
Viking Prince Supports Well Campaign The Viking Prince LNG supply vessel has been fixed to support a well campaign of 12 wells with an option to drill eight more. The contract is between Eidesvik Offshore and AGR Petroleum Services, which will begin on October 1st and continue for approximately two years. The Viking Prince is a VS-489 design PSV built in 2012 with 1,021 square metres of deck area.
Subsea Market Summary For the latest on the subsea construction and survey vessel availabilities please contact us for a copy of our Subsea Vessel Market Summary. The list is put together weekly by Graeme Riddell who is based in our Aberdeen office. We are constantly monitoring the requirements, fixtures and availability of the North Sea fleet. For more information please email us.
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Renewables
Xodus Acquires Development Permission
Xodus has acquired development consent for the Meygen Tidal Energy project in the Pentland Firth. Europe's largest tidal energy project will begin phase one, where 61 tidal turbines will be built. Phase one alone will produce 86MW initially but could eventually yield up to 398MW.
South Boats and Seacat GBP10 Million Deal South Boats and Seacat Services signed a GBP 10 million deal for next generation Windboat orders on September 17th. According to Seacat Services this agreement will introduce the next generation of European workboats. South Boats will commit to deliver one 24-metre and two 26-metre vessels over the next 1824 months. The first order is the 24 metre Seacat Ranger, then the following two on order are still to be named. The 26 metre vessels represent some of the largest vessels yet built by the Isle of Wight Yard.
Corporate
New CEO for Ithaca Energy
Ithaca Energy has appointed a new CEO, Les Thomas who was a former director of John Wood Group Plc. He has over thirty years experience in the gas and oil industry, with previous experience as the main Board of Director of Wood Group and the Group Director responsible for HSE.
Siem Offshore Acquires 50% of Secunda Canada Siem Offshore recently announced the purchase of 50% ownership of Secunda Canada at a price of CAD 16.25 million cash. The fifty percent ownership in Secunda will give Siem Offshore a strategic position in Canada’s offshore east coast sector.
Sale & Purchase
GC Rieber Sells Second Vessel to MoD
GC Rieber Shipping has sold the HMS Protector to the UK Ministry of Defence (MoD), providing GC Rieber with an accounting gain of approximately NOK 370 million. The vessel has been on bareboat charter to the Ministry of Defence since spring 2011. HMS Protector is the second vessel the MoD has chartered and later purchased from GC Rieber Shipping where the first vessel was the HMS Endurance.
Sea Exploration could Purchase Hawk Explorer Sea Exploration plc will exercise a purchase option under the charter arrangement for the vessel Hawk Explorer. The option covers the ship and equipment for a value of USD 6.5 million and is expected to be delivered by the end of the lease term on the 31 August 2014.
Subsea
Havila Phoenix conversion for DeepOcean
Havyard is converting the Havila Phoenix for a contract with DeepOcean. The Havyard 858 design vessel was built in 2009. After the conversion the deck area of the vessel will be 1450 square metres and will be able to accommodate up to 140.
Bourbon Emerald on Survey Duties The Bourbon Emerald will be available from mid-October. The Vessel is currently doing project duties off the west coast of Norway for Reach Subsea. The UT75E design PSV includes DP2, a 950 square metre deck area and has accommodation available for 50.
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Woodside Secures Porcupine Acreage
Picture courtesy of Dolphin Drilling
The Semi Submersible Blackford Dolphin has been entered into a letter of intent for a nine month contract in the UK sector. The letter of intent is still subject to finalisation. The contract is expected to commence around the third quarter of 2014, for an estimated value of USD 115 million. Meanwhile, Prosafe has acquired contract extensions for the Safe Bristolia, Regalia and Safe Lancia. Prosafe and Elf Exploration has agreed to extend the contract for the Safe Bristolia accommodation unit by 61 days with a 14 day option. This extension will commence mid-October for USD 15.9 million.
Norske Shell has decided to use their two-week option, for Regalia. The extension will see operations finish on November 10th and is valued at USD 5 million to Prosafe. Finally Cotemar Group has also been awarded an extension which will be to mid-October. Maersk Drilling has signed a contract with DSME for a Jack-up Rig to be constructed at a value of approximately USD 530 million. The rig will be able to drill 12km up to 150m depths and is expected to be delivered in the middle of 2016.
Australian firm Woodside has secured operatorship in the Porcupine Basin offshore Ireland. Under a heads of agreement deal with Petrel Resources the company will gain operatorship and become 85% partner in the licences 11/4 and 11/6. The partners are proposing to carry out a comprehensive field work programme for a full Frontier Exploration Licence on the acreage.
Rig Activity by Type and Country Norway UK/Irl
Drillship Jackup Semi-Sub Total
Denmark Netherlands
Stacked without future contract
Stacked with future contract Total
1
1
9
17
26
14
36
31
6
6
4
4
1
4
41
1
4
45
2
8
87
Ampelmann Ship to Ship Transfer Operations
Jul-13
Apr-13
Jan-13
Oct-12
Jul-12
Apr-12
Jan-12
Oct-11
Jul-11
Apr-11
Jan-11
Oct-10
Jul-10
Apr-10
Jan-10
Oct-09
Jul-09
Apr-09
Jan-09
Oct-08
Jul-08
Apr-08
Jan-08
Oct-07
Jul-07
Apr-07
Jan-07
Oct-06
Jul-06
Apr-06
Jan-06
Oct-05
Jul-05
Apr-05
Jan-05
Bunker Price GBP/MT
700
Bunker Price in Aberdeen 2011 to Present
650
600
550
500
450
Price courtesy of Scandinavian Bunkering, subject to supply method, volume and market fluctuations.
$140
$120
$100
$80
$60
$40
$20
$0
Standby/ERRV
Tightness in Market Limited Availability
The market remains very tight with little prospect of any dramatic increase in vessel availability over the winter. Apart from the long term tenders still outstanding, several shorter term jobs have been circulated recently, commencing in the fourth quarter. However, only one or two contractors have been in a position to bid, illustrating the on-going challenge that operators continue to have to secure tonnage to cover their requirements.
Hess and Senergy outstanding for vessels
Talisman Sinopec has fixed up the VOS Islay for 3-4 weeks from mid October to support the well intervention vessel the Well Enhancer in the Central North Sea. Hess are outstanding for a vessel during mid November for 45-60 days to support another well intervention unit the Seawell. In addition, Senergy has circulated an enquiry for a vessel to support a 1-2 month drilling programme West of Shetlands with the Stena Carron from mid December. The drillship is currently located offshore Canada.
Recent Fixtures for Enquest and GDF Suez Enquest has chartered the Esvagt Sigma to support a one well programme in the Central North Sea with the Ocean Princess, commencing in the second half of October. The Glomar Patriot is due to commence a 6-18 month contract with GDF Suez shortly in the UK South North Sea, supporting the GSF Monarch after completing a refit / upgrade in Poland. Den Helder based Glomar Ship Management currently has two further UK certified vessels working in the Southern basin, namely the Glomar Commander & Allure G, that are contracted to Shell UK and Dana Petroleum respectively.
Outstanding Long Term Tenders Announcements are expected imminently in respect of the outstanding long term tenders circulated on behalf of Taqa (Harding field) & Nexen (Ensco 120). However, the outcome of the ConocoPhillips tender for numerous vessels to support installations / drilling programmes in the South North Sea / Central North & West Coast are not expected for another two months. The contract duration is 5-9 years from April 2014. ŠCopyright Braemar Seascope Offshore 2013
£90,000 £80,000
£70,000
Large - AHTS (16,000+ BHP) 2011
Medium - AHTS (12-15,999 BHP) 2011
Large - AHTS (16,000+ BHP) 2012
Medium - AHTS (12-15,999 BHP) 2012
Large - AHTS (16,000+ BHP) 2013
Medium - AHTS (12-15,999 BHP) 2013
£60,000 £50,000 £40,000 £30,000
£20,000 £10,000 £0 Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
£30,000
Average Spot Dayrate
£25,000 £20,000 £15,000 £10,000 £5,000
£0 Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Large PSVs (700m2+ Clear Deck) 2011
Medium PSVs (500-700m2 Clear Deck) 2011
Large PSVs (700m2+ Clear Deck) 2012
Medium PSVs (500-700m2 Clear Deck) 2012
Large PSVs (700m2+ Clear Deck) 2013
Medium PSVs (500-700m2 Clear Deck) 2013
Dec
£0
£0
Large - AHTS (16,000+ BHP) Large - AHTS (16,000+ BHP)
Large PSVs (700m2+ Clear Deck)
Medium - AHTS (12-15,999 BHP)
Medium - AHTS (12-15,999 BHP)
£40,000
£35,000
£30,000
£25,000
£20,000
£15,000
£10,000
£5,000
£0
Medium PSVs (500-700m2 Clear Deck)
Sep-13
Jan-04 Mar-04 May-04 Jan-04 Jul-04 Sep-04 May-04 Nov-04 Jan-05 Sep-04 Mar-05 May-05 Jan-05 Jul-05 Sep-05 May-05 Nov-05 Jan-06 Sep-05 Mar-06 May-06 Jan-06 Jul-06 Sep-06 May-06 Nov-06 Sep-06 Jan-07 Mar-07 Jan-07 May-07 Jul-07 May-07 Sep-07 Nov-07 Sep-07 Jan-08 Mar-08 Jan-08 May-08 Jul-08 May-08 Sep-08 Nov-08 Sep-08 Jan-09 Mar-09 Jan-09 May-09 Jul-09 May-09 Sep-09 Nov-09 Sep-09 Jan-10 Mar-10 Jan-10 May-10 Jul-10 May-10 Sep-10 Nov-10 Sep-10 Jan-11 Mar-11 Jan-11 May-11 Jul-11 May-11 Sep-11 Nov-11 Sep-11 Jan-12 Mar-12 Jan-12 May-12 Jul-12 May-12 Sep-12 Nov-12 Sep-12 Jan-13 Mar-13 Jan-13 May-13 Jul-13 May-13
£140,000 £140,000
£120,000 £120,000
£100,000 £100,000
£80,000 £80,000
£60,000 £60,000
£40,000 £40,000
£20,000
£20,000
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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Ani Bablanian Researcher 35 Cosway Street London NW1 5BT UK Phone: +44 (0)20 7903 2628 E-mail: offshore.research @braemar.com
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London Office Andrew Williams Charles Cundall Mark Chesterfield Mark Malvisi Jack Richards Kevin Morrin Robbie Cook Michael Bates Candice Wu Sandra BjĂśrck Ani Bablanian Sean Bate Sam Beynon
Aberdeen Office ~ MD/Shipbroker ~ Director/Shipbroker ~ Director/Shipbroker ~ Shipbroker ~ Shipbroker ~ Shipbroker (S&P) ~ Shipbroker (S&P) ~ Shipbroker ~ Shipbroker (S&P) ~ Shipbroker ~ Researcher ~ Market Analysis ~ Administration
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