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BRAEMAR SEASCOPE OFFSHORE Second Quarter 2012

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Broker Joins Team

Welcome to the latest edition of the Braemar Seascope Offshore Asia & Australia Vessel Report. As the year progresses we have seen a number of longterm fixtures for both AHTS and PSVs in the region. Newbuilding orders have also been flooding in for vessels both for the international and domestic markets.

Bidding rounds are also ongoing for interesting potential exploration blocks both in New Zealand but also further rehabilitation of the Myanmar regime has seen a number of deals done there in recent weeks with a further round of licensing on the cards. In another interesting move in Vietnam, ENI has secured operatorship and is planning exploration activities.

The subsea market has been very active with vessels and developments continuing to be popular across Southeast Asia and Australia.

Farstad has recently secured more long term work in Australia and the region continues to see tonnage in high demand. Recent rumblings on potential skills shortages for future work have highlighted the increasing strains on securing suitable crews for Australian workscopes.

We hope you enjoy. Please get in touch with your questions and comments.

Braemar Seascope Offshore is delighted to announce that Nicola Troup has joined our team of brokers in our office in Singapore. Nicola can be contacted on: Tel: +65 6410 9013

Best regards, Sean Bate Market Analysis Manager

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offshore@seascope.com.sg

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Chartering

ExxonMobil Malaysia Jobs For Jasa Merin

Jasa Merin's parent company SILK Holdings has announced that ExxonMobil Malaysia has chartered two AHTS vessels for 18 months firm with an optional 12 months. The contracts are both due to start from the middle of July. The value of the contracts is around RM 35 million combined. Jasa Merin has a fleet of 13 AHTS vessels including two 10,888 BHP, 120t bollard pull vessels the JM Samudera and JM Setia.

Vroon Takes Delivery of Vos Athos Vroon Offshore Services has announced that it has taken delivery of the VOS Athos 5,150 BHP AHTS. The vessel, which was under construction at the Fujian Southeast Shipyard in China. The vessel is a 59m AHTS and is equipped with 66.2t bollard pull and DP1. The vessel is the first of three vessels under construction at the yard.

The vessel is expected to leave the yard shortly and will be operated by Vroon Offshore Services Pte Ltd in Singapore.

Farstad Secures Australian Charters Farstad Shipping has fixed contracts in Australia with Total E&P and Santos that will see the AHTS Far Sound and the AHTS Far Sword fixed for around 12 months. The vessels will be supporting the drilling operations on the Jack Bates rig. In addition Mobil Australia Resources Company has awarded a 680 day contract to the PSV Far Swan for support of their Jansz operations and Apache has declared options on the AHTS Far Sky and the AHTS Lady Astrid for 12 months to mid 2013.

Vessel Availability Insight Our Singapore Office is constantly working to ensure our clients are kept up to speed with the market movements and the availability of vessels to meet their needs. With this in mind our team puts together a brief weekly insight on the availability of tonnage in the region. If you would like to be added to our mailing list please do not hesitate to contact any of our expert brokers in the Singapore office by calling +65 6410 9013 or email: offshore@seascope.com.sg ŠCopyright Braemar Seascope Offshore 2012

Chartering

UOS Endeavour on 900 Day Charter

Apache has awarded a 900 day charter to the AHTS UOS Endeavour. The vessel will be supporting the drilling campaigns of the Ensco 104, Atwood Eagle and Atwood Falcon. The UOS Endeavour was delivered in 2010 and is a Moss 424 AHTS equipped with a bollard pull of around 200t and a deck area of 600 square metres. The Atwood Falcon is on contract with Apache Australia until November 2014 and the Ensco 104 is chartered until May 2013 with the same operator.

Vessels Leave Southeast Asia for Brazil A number of vessels have been departing the region to take up work for Petrobras offshore Brazil. The latest vessels to take up long-term work there are the PSV Toisa Serenade and Deep Sea Supply’s Sea Fox. The 2008-built DP2 large PSV is expected to commence a four-year charter with Petrobras from the middle of December. The AHTS Sea Fox has already arrived in Brazil and has begun its 4 year term. Sea Fox is 2011-built with DP1 and 94t BP.

Fairmount Sherpa Tows Drillship The Fairmount Sherpa tug has recently delivered the drillship Peregrine 1 to Singapore after towing the vessel from Salvador in Brazil. The 9,100 mile voyage was completed at an average speed of 8.5 knots with a bunker stop in Mauritius. The 1982-built drillship Peregrine 1 will be undergoing repairs and modification in Singapore. The 2005built Fairmount Sherpa is now expected to go to Port Louis in Mauritius.

Swiber Secures USD 830 Million Contracts Swiber has announced that it has been awarded a series of contracts for offshore construction projects and vessel chartering in the Asia Pacific region as well as an award to charter out a spread of support vessels in the Middle East.

The work in the Asia Pacific region will include installation of pipelines, umbilicals and subsea systems with work commencing immediately and running through to 2014.

The schedule in the Middle East will see vessels committed for three years plus options for two more. ŠCopyright Braemar Seascope Offshore 2012

Chartering

Vroon Vessels Secure Vietnam Work

Two of Vroon’s 5150 BHP AHTS vessels have secured work in Vietnam that will see them chartered through to the middle of August. The VOS Apollo, which was formerly working with Shell in Brunei , is now working for Chevron.

Meanwhile, the VOS Thalia, which was delivered from Fujian Southeast shipyard in China in April, is currently working for another operator in Vietnam. The vessels have Bollard Pulls of between 67 and 69t.

Britoil Vessels Supporting Saipem Britoil has mobilised two AHTS vessels to Vietnam to support Saipem construction work in the region. The vessels, namely the Britoil 121 and the Britoil 61 are expected to commence 40-day charters from around the end of July which will see them fixed until around the middle of August. The Britoil 121 is a 12,240 BHP AHTS with a bollard pull of around 155t and the Britoil 61 is a 10,500 BHP AHTS with a bollard pull of around 130t.

Lewek Merlin with Ensco 8504 in Brunei The 8,000 BHP AHTS Lewek Merlin has chartered to support a three well drilling campaign with Shell in Brunei.

The vessel, which is expected to be on charter until around the end of September, will be working at the Ensco 8504 alongside the Lewek Aries, Bourbon Himalaya and the Greatship Dhriti. The rig is currently on a sublet to Shell Brunei from Total. The Lewek Merlin is a DP2 AHTS equipped with a deck area of 425 square metres and a bollard pull around 105t.

Sealink 161 Carrying Out Seismic Support The support vessel Sealink 161 has been chartered to work in a seismic support role with Polarcus in Australia.

The vessel is expected to continue in the role until around the end of October although it is understood there are further options that could see the charter extended. The Sealink 161 is a Conan Wu designed offshore support vessel that specialises in Chase Support. The 5150 BHP vessel has accommodation for 42 and can take a max deck cargo of 500t. ŠCopyright Braemar Seascope Offshore 2012

Australia/New Zealand

Po Valley Secures Offshore Permit

Australian energy firm Po Valley Energy has been awarded its first offshore exploration permit. It is located in the shallow waters of the Adriatic Sea offshore Italy and contains two connected gas discoveries that were drilled and tested by the former operator ENI. Po Valley is now expected to purchase 3D Seismic data on the permit and work on a field development programme.

Tendering for 23 Offshore NZ Blocks The latest details from the New Zealand government’s Ministry of Economic Development have confirmed that programme bids will have to be submitted by mid October and exploration permits to be awarded by the end of 2012. The permits will be awarded for five years to allow for investigation of the potential for oil and gas development. The blocks include offshore areas in the East Coast, Pegasus, Canterbury, Great South and Taranaki Basins.

Apache Awards Balnaves Work to Technip Technip will carry out subsea installation work on the Balnaves field in the Carnarvon Basin offshore North Western Australia. The contract which will include, 7 km of flowlines and risers, 3 km of umbilicals, manifold, spools, flying leads and jumpers as well as a mooring system and riser column. The offshore installation campaign will use the Deep Orient vessel during 2013 with scheduled completion in the second half of that year. The Balnaves development is adjacent to the Brunello gas field.

Lady Gerda Sold to TAG Offshore Farstad has agreed the sale of the 1987-built AHTS Lady Gerda. The 8,700 BHP vessel was originally expected to be sold alongside the 9,500 BHP AHTS Lady Cynthia however whilst the deal with the first vessel was completed the agreement on the second vessel was cancelled. The buyer of the vessel is understood to be Tag Offshore. The vessel, which has previously carried out a number of term charters in Australia, has now been reflagged to Indian flag and renamed TAG 11. ŠCopyright Braemar Seascope Offshore 2012

Newbuilds & Sales

Jaya Supreme AHTS Sold to Atlantic Towing

It is understood Atlantic Towing has bought the newbuild AHTS Jaya Supreme from Jaya Holdings. The 16,000 BHP vessel is being built to Ice Class 1A standard and has also been designed to Norwegian Directorate standards and Clean Design. The 180t Bollard Pull vessel is of VS-4622 design and is expected to be delivered in September this year and will be followed by a sister vessel which is scheduled for completion in May 2013.

Wartsila Engines for 2 PSVs & AHTS Wärtsilä is to provide power propulsion systems for three offshore vessels being built for Pacific Radiance ltd. The orders are for systems on board two 86 metre, PSVs to be built at the Huang Pu shipyard in China and a hybrid 210t bollard pull AHTS at Zhenjiang shipyard, also in China. The vessels are due to be delivered to Pacific Radiance during the first half of 2014. The PSVs will utilise the Wärtsilä Low Loss Concept (LLC) power distribution system.

OSD Designs PSV for Yard in Jiangsu China Offshore Ship Designers has been awarded a contract for a design of a modified IMT 982 PSV that will be built at Honghua Offshore Oil & Gas Equipment’s new shipyard in Jiangsu, China. The vessel will have an LOA of 83.2m and a deck area of around 900 square metres. It will also be able to carry 1,330 cubic metres of fuel oil, 800 cubic metres of potable water, 980 cubic metres of mud/brine and 1,350 cubic metres of drill water. In addition it will have DP2 and accommodation for 28.

Swire Pacific Offshore Orders Six PSVs Swire Pacific Offshore has announced a newbuild order for six PSVs plus options for a further four vessels. The vessels will be built at Universal Shipbuilding Corporation (USC) in Japan at the Keihin yard. The first of the 3,700 DWT vessels will be delivered in the third quarter of 2014.

Swire Pacific Offshore now has a total of 29 vessels on order including four 5,800 DWT PSVs ordered from Universal Shipbuilding Corporation in late 2011. ©Copyright Braemar Seascope Offshore 2012

Corporate

Myanmar Opens Up A Further 23 Blocks

Myanmar (formerly Burma) has opened up 23 new offshore blocks for oil and gas exploration. The area includes 17 deep water and six shallow water blocks in the Bay of Bengal and Andaman Sea. Under the conditions foreign companies will be required to partner with local firms.

Initially the blocks will be awarded under a six-year exploration period followed by a three-year tax holiday. The country’s authorities have already signed nine oil and gas exploration deals since March.

ENI Acquires Block in Vietnam Eni has signed a deal to secure operatorship of exploration block 114 in Vietnam's Song Hong Basin.

Planned exploration activities in the block include the acquisition of a 3D seismic survey and the drilling of two wells. The agreement, which has been signed with the Indian company Essar, is subject to the approval of the Vietnamese authorities.

Thailand Investment for Aker Solutions Aker Solutions has announced a new workshop for lifecycles services and refurbishment in Thailand. According to Aker Solutions president of the Asia Pacific subsea business Dave Hutchinson, the service base has been set up in response to new orders and in recognition of growing market demand in the region. Aker Solutions also has service bases in Vietnam, Indonesia, Perth and Mumbai.

Sanko Files for Bankruptcy Relief The Sanko Steamship Company has filed for relief under Chapter 15 of the United States Bankruptcy Code in New York. According to Sanko ‘The formal proceedings will stabilise the situation without Sanko being required to prefer certain creditors over others. This will allow Sanko the necessary breathing room to formulate and propose a plan of reorganisation that will allow Sanko to return to profitability and maximize value for creditors’. ©Copyright Braemar Seascope Offshore 2012

Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12

Oil Price Oil Price Jan 2011 2011–– Jun 2012

$140

$120

$100

$80

$60

$40

$20

$0 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12

Oil Price 2005 2005--2012

$140

$120

$100

$80

$60

$40

$20

$0

£0

Jan-04

Large PSVs (700m2+ Clear Deck)

Medium PSVs (500-700m2 Clear Deck)

May-12

Mar-12

Jan-12

Nov-11

Sep-11

Jul-11

May-11

Mar-11

Jan-11

Nov-10

Sep-10

Jul-10

May-10

Mar-10

Jan-10

Nov-09

Sep-09

Jul-09

May-09

Mar-09

Jan-09

PSV Dayrates

Nov-08

Sep-08

May-12

Mar-12

Jan-12

Nov-11

Sep-11

Jul-11

May-11

Mar-11

Jan-11

Nov-10

Sep-10

Jul-10

May-10

Mar-10

Jan-10

Nov-09

Sep-09

Jul-09

May-09

Mar-09

Jan-09

Nov-08

Sep-08

Jul-08

May-08

£60,000

Jul-08

Mar-08

Jan-08

Nov-07

Sep-07

Jul-07

May-07

Mar-07

Jan-07

Nov-06

Sep-06

Jul-06

May-06

Mar-06

Jan-06

Nov-05

Sep-05

Jul-05

May-05

Mar-05

Jan-05

Nov-04

Sep-04

Jul-04

May-04

£80,000

May-08

Large - AHTS (16,000+ BHP)

Mar-08

Jan-08

Nov-07

Sep-07

Jul-07

May-07

Mar-07

Jan-07

Nov-06

Sep-06

Jul-06

May-06

Mar-06

Jan-06

Nov-05

Sep-05

Jul-05

May-05

Mar-05

Jan-05

Nov-04

Sep-04

Jul-04

May-04

Mar-04

Jan-04

£0

Mar-04

AHTS Dayrates Average North Sea Spot AHTS Rates 2004 2004--2012

£140,000

£120,000

£100,000

SPECS BOX

£40,000

£20,000

Medium - AHTS (12-15,999 BHP)

Average North Sea Spot PSV Rates 2004 2004--2012

£40,000

£35,000

£30,000

£25,000

£20,000

£15,000

£10,000

£5,000

The Renewables Vessels Newsletter

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Sean Bate Market Analysis Manager 25 Carden Place Aberdeen AB10 1UQ UK Phone: +44 (0)1224 628470 Fax: +44 (0)1224 621444 E-mail: research @seascope.co.uk

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