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Braemar Seascope Offshore - Asia & Australia Report Asia & Australia Report - May 2013

MARKET NEWS & ANALYSIS RIG NEWS COMMENTARY

Dry Cargo

Tankers

Email: offshore.singapore@braemar.com

Containers

Tel: London +44 (0)20 7903 2700

Offshore

Aberdeen: +44 (0)1224 628 470

LNG - Specialist - LPG

Sale & Purchase

Singapore: +65 6410 9013 www.braemarseascope.com

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New Email Details

Welcome to the latest edition of the Braemar Seascope Offshore Asia & Australia Report. Vessel demand across the region has steadily continued throughout the past weeks with a series of longterm fixtures.

New acreage is opening in the form of Myanmar’s latest offering and rumours of a further Indonesian licencing round.

In addition, it is understood that BP is seeking environmental approvals from the Australian federal government for USD 600M exploration programme around the Great Australian Bight. Sale and Purchase activity in the region is also active with the latest deals including Nam Cheong selling five vessels for a total of over USD 110M.

Please ensure that you have our new email addresses as follows.

Our new contact details are: 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 look forward to hearing your feedback and comments.

Sean Bate Market Analysis Manager offshore.research@braemar.com

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Please take note we have changed email addresses and update your contact directories as appropriate. For your records the new email addresses can be found opposite and on the back page of this report.

Please note our old email addresses will go offline in the next few weeks. We will also be emailing our new details.

Southeast Asia

POSH Duo Chartered to Gazprom

Gazprom has fixed the POSH Champion and the POSH Concorde on a four-month charter in Sakhalin. These 16,000bhp AHTS vessels will be supporting the Semisubmersible rig, Severnoye Siyaniye. The Executive Pride and the Executive Honour, both 147t BP, have also been fixed by the operator on a four-month contract. This scope of work is to tow the 1984 built Semisubmersible rig, Doo Sung, from Singapore to Sakhiln, via Busan. The vessels will stay with the rig for the duration of the campaign until the end of the season.

Pacific Battler Heads to Philippines The UT-720 designed AHTS Pacific Battler is understood to have completed its charter with Indemitsu in Vietnam and is now expected to go to the Philippines to perform work for Galoc Production. This latest charter is expected to see the vessel occupied until September. The Pacific Battler is an AHTS with a bollard pull of around 147t. The vessel also has clear deck area of 410 square metres.

Newfield Gas Discovery Offshore Malaysia Newfield Exploration has made a significant gas discovery 50 miles offshore Sarawak. Recoverable estimates at the discovery are estimated to be approximately 265 Bcf and will be developed in conjunction with the B-14 discovery.

According to Newfield CEO Lee K. Boothby it represents the largest conventional exploratory success the Newfield has made in its 25-year history.

Sentinel Marine Orders 4+4 ERRVs for UK There will be a new player in the UK ERRV market by the third quarter of 2014. Sentinel Marine, majority owned by Rory Deans has ordered 4 (plus 4 options) multi-role vessels from the Fujian shipyard in China. The 61m vessels will be equipped with 300 square metre decks, DP1, a daughter craft and FRC. Rory Deans was previously a part owner in Nomis Shipping and operated over 30 standby vessels in the UK and smaller AHTS in SE Asia before the company was sold to Vroon over 5 years ago. ŠCopyright Braemar Seascope Offshore 2013

Southeast Asia

Bourbon Vessels in Thailand

The Bourbon Liberty 254 and the Bourbon Liberty 219 are understood to be currently working with Chevron offshore Thailand. The pair of AHTS vessels began work with the jack-up rig Transocean Andaman around early May. The vessels will be supporting work being carried out on the Erawan field. The Bourbon Liberty 254 had previously been performing work at the Gorgon field offshore Australia.

Yuexin Secures New AHTS Order Yuexin Shipbuilding has signed a contract with an Indonesian ship owner for the construction of two AHTS vessels. The Focal Marine designed DP2 units will have an LOA of 65 metres, bollard pull of 80t and will be capable of producing 6,000 bhp. The vessels will also have the capacity for 570 m3 of fuel oil, 300 m3 of fresh water and 170 m3 of dry bulk. As well as the two firm contracts there are options for a further two vessels at the yard.

ONGC Charters Short-Term Quartet ONGC has fixed a quartet of vessels including two AHTS and tow PSVs. The vessels are currently carrying out fillin work to carry out immediate requirements until a currently outstanding tender for 14 vessels is finalised. The vessels will be on charter until around the end of May. The PSVs are the Ocean Amethyst and the PFS Supplier, meanwhile the AHTS are the PFS Brave and PFS Courage.

Nam Cheong Sells 5 Newbuilds Nam Cheong has struck a deal for five vessels worth a total of over USD 110 million. The contracts include the sale of a 12,000 BHP AHTS to an Indonesian company and four PSVs to an existing customer which carries out oilfield services work. The vessels are scheduled for delivery in the second quarter of 2013 and the first quarter of 2014. The company has sold 13 vessels since the start of the year including two AHTS, four ERRVs and two accommodation barges. ŠCopyright Braemar Seascope Offshore 2013

Southeast Asia

Setia Gigih Secures Malaysian Term Work

The Setia Gigih has been fixed by Petronas Carigali for five years firm plus an additional option for a further year. The 2009-built vessel will be working offshore Malaysia. The Setia Gigih has 5,520 BHP and a bollard pull of around 66t.

In addition, the Setia Gagah is understood to have also been chartered by Petronas Carigali on a short term contract that will see it working in Malaysia until around the end of April. The Setia Gagah is a 2003-built 4,750 BHP AHTS with a bollard pull of around 47t.

SMS Endeavour Delivered to Martens Marine Martens Marine has taken delivery of the third in a series of vessels from Guangdong Yuexin Ocean Engineering.

The SMS Endeavour is an AHTS vessel designed for operations in shallow waters around Asia, West Africa and the Middle East. The E 65T Series vessel has DP1 and has 5,150 BHP. The vessel also features a bridge area with a larger working space to conventional 5150s. The vessel is currently heading for Southeast Asia.

POSH Shearwater Named Ahead of Contract The latest addition to the POSH fleet was named in the middle of April. The POSH Shearwater is the first of four sister vessels which are being built by PaxOcean Engineering Zhuhai shipyard in Guangdong, China. The vessel is expected to shortly commence a two year term contract in Southeast Asia. The UT-755 designed vessel is equipped with DP2, a deck area of around 670 square metres and accommodation for 26 personnel.

Myanmar Opens Bidding on Offshore Blocks The Myanmar Ministry of Energy has opened bidding on 30 offshore blocks on a production sharing basis. The areas cover shallow and deepwater blocks. Letters of Expression of Interest may be submitted by June 14th.

The potential bidders must cooperate with a minimum of one Myanmar national owned company registered at the Energy Planning Department, Ministry of Energy.

ŠCopyright Braemar Seascope Offshore 2013

Australia/New Zealand

Normand Clough Now Heading for China

The subsea support vessel Normand Clough which has recently been on Origin Energy’s Otway Basin project offshore Australia is now expected to head to China.

The 117m-vessel, equipped with a dive system and two ROVs as wells as a 250t crane, is understood to have completed its workrole in late April. The Otway Basin is in South West Victoria.

Fugro TSM Extends Phoenix & Harmony Havila Shipping has extended the charters of the Havila Harmony and Havila Phoenix with Fugro TSM in Perth, Australia. The deals are for four years plus two one-year options and five months respectively. The Havila Phoenix will now be on contract until November 21 2013 before being docked for reconstruction for the next charterer. Meanwhile, the Havila Harmony will be working in Malaysia until around the end of April 2017.

New Zealand 2013 E&P Licencing Round New Zealand has launched its new licencing round for frontier acreage west-northwest of the North Island and southeast of the South Island, as well as in the proven Taranaki basin. In total there is an area of 189,000 km2 on offer. Bidding is set to open on 24 May and end on 26 September, with awards expected in December. The new graticular methodology allows bidders to define and bid for pieces of 250 km2 each, up to a total of 2,500km2 in Taranaki and 10,000km2 in the frontier basins.

CSV Southern Ocean at Montara Oceanteam’s DP2 construction support and installation vessel is currently working on the PTTEP-operated Montara field. The vessel, which is equipped with a 250t and a 100t crane, is carrying out hook-up and commissioning works. The vessel is expected to be on-site for around 30 days. The CSV Southern Ocean is designed to carry out field support, construction, installation and IRM (inspection repair and maintenance) roles. ©Copyright Braemar Seascope Offshore 2013

Australia/New Zealand

Pair of Vessels Working on Longtom

The dive support vessel Skandi Singapore and the AHTS vessel Mermaid Vision are currently working on the Nexus Longtom project in the Gippsland Basin offshore Southeast Australia. The vessels commenced work in early May and are expected to take around two or three weeks. The Skandi Singapore is a purpose built DSV equipped with a moonpool, two ROVs and a 140t crane.

Skandi Hawk & Hercules at Jabiru The ROV Construction support vessel Skandi Hawk is currently working on the decommissioning of the Jabiru field in the Timor Sea. The vessel is expected to be supported later on by the 350t Bollard Pull AHTS Skandi Hercules in May. The overall workscope of the vessels is expected to take around 30 days. The Skandi Hercules is a 2012-built STX PSV 09 designed vessel.

Woolybutt Decommissioning Tendering The work for the decommissioning at ENI’s Woollybutt field has been tendered and the market is currently awaiting awards announcements. The field was closed last year after production fell due to natural decline. Production had been based around the Four Rainbow FPSO which was last upgraded in 2009. The field is located in the Carnarvon Basin off the North West coast of Australia.

Gorgon Work for Toisa Paladin The Toisa Paladin has been carrying out umbilical tie-in work for Subsea 7 at the Gorgon site. In total the Gorgon field includes 5km of parallel umbilical, monoethylene glycol (MEG) and service pipelines. The Toisa Paladin is currently being managed and operated by Cal Dive. The dive support vessel is capable of carrying out subsea installation, ROV work and well intervention. The vessel has a 140t crane and accommodation for 100. ŠCopyright Braemar Seascope Offshore 2013

Australia/New Zealand

GO Canopus Fixed to McDermott

McDermott Australia has secured the GO Canopus on a fixed term charter to tow the Derrick Barge (DB30) from Singapore to Dampier in Australia. Once it reaches the location the unit will carry out the installation of manifolds, pipeline and umbilicals for the Macedon gas field.

The DB30 is a 1975-built 128m barge equipped with a 2,794 MT crane, accommodation for 303 and is capable of 60-inch pipelay.

Woodside to Consider FLNG at Browse Woodside is understood to be considering a floating liquefied natural gas (FLNG) unit at its Browse project offshore Western Australia. The operator has shelved plans for an onshore solution over economics with figures indicating an FLNG option could save around 20 per cent on the project’s capex. There were also environmental and indigenous objections to James Price Point, which was to be the original site for onshore plans.

New Vessel to Replace Ashmore Guardian The Australian arm of Gardline has ordered a new 40 metre vessel with Strategic Marine which will be deployed in its long term contract with the Australian Government.

Once delivered the vessel will be deployed at Ashmore Island and will replace the incumbent smaller vessel Ashmore Guardian. The Ashmore Guardian has been working in the remote areas off North-Western Australia carrying out environmental protection and preventing smuggling and illegal fishing.

Farstad Newbuild Heads to Australia The medium sized PSV Far Sitella has been delivered to Farstad after being built at STX OSV Vung Tau in Vietnam. Upon delivery the vessel headed for Australia where it has commenced a long-term charter with Shell on the company’s Prelude drilling campaign. The STX PSV 08 CD designed vessel is equipped with DP2, a deck area of around 810 square metres and has Clean Deisgn and Oilrec. ©Copyright Braemar Seascope Offshore 2013

Rigs

Transocean Contracts in Australia

Transocean has been awarded a series of new contracts including a pair of significant contracts offshore Australia.

The Deepwater Millennium will be carrying out a two-year contract at a dayrate of around USD 605,000. Meanwhile, the Jack Bates will be carrying out a three-well contract offshore Australia at a dayrate of USD 525,000. The Jack Bates is a Friede & Goldman L-1020 Trendsetter Deepwater Floater originally built in 1986 and upgraded in 1997.

Timor-Leste/Australia Drilling Planned ConocoPhillips and its joint-venture partners Eni, Santos, Inpex and TEPCO-Gas are preparing to drill several wells in block JDPA 03-13 of the BayuUndan gas and condensate field shared by TimorLeste and Australia. It is understood the company is currently focussing on securing a semisubmersible rig for a drilling campaign in the second quarter of 2014.

Talisman Planning Malaysia Campaign Talisman Energy is expected to commence its first exploration well in the Sabah province of Malaysia later this year. The company owns exploration blocks SB 309 and SB 310 in the region and is understood to be planning to execute two wells this year with further drilling in 2014. Any discoveries could be developed via tie-back to the nearby infrastructure associated with the Kinabalu oilfield which is operated by Talisman.

Fairmount Summit Tows Rig to Angola The long-distance anchor handling tug Fairmount Summit has delivered the semisubmersible rig SSV Catarina offshore Angola. The newbuild sixth generation drilling rig was towed from Okpo in South Korea, via the Strait of Malacca and the Cape of Good Hope, to Angola. The pair covered a distance of over 10,000 miles with an average towing speed of 6.9 knots. The Fairmount Summit has 16,320 BHP and a 205 ton Bollard Pull. ŠCopyright Braemar Seascope Offshore 2013

Highlights of the Armada Sterling Conversion

The Deepwater Construction Vessel Seven Borealis

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Bunker Price GBP/MT

700

Bunker Price in Aberdeen 2011 to Present

650

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Price courtesy of Scandinavian Bunkering, subject to supply method, volume and market fluctuations.

$140

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Large - AHTS (16,000+ BHP)

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Medium - AHTS (12-15,999 BHP)

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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.

fleet sales

From offices in London, Aberdeen and Singapore we specialise in the worldwide off- Valuation services shore market.

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Sean Bate Market Analysis Manager 35 Cosway Street London NW1 5BT UK Phone: +44 (0)20 7903 2736 E-mail: offshore.research @braemar.com

CONTACT US London:

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Offshore - Sale & Purchase

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UK

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