nsrv18

Braemar Seascope Offshore - North Sea Vessel Report North Sea Vessel Report - Issue 62: May 2013

MARKET NEWS & ANALYSIS May 2013

VESSEL DAYRATE CHARTS

ISSUE: 62

RIG NEWS MARKET COMMENTARY

Island Crown Images courtesy of Island Offshore

Dry Cargo

Tankers

Email: offshore.aberdeen@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

Click Here to go to Online Version

New Email Details

Welcome to the latest edition of the Braemar Seascope Offshore North Sea Vessel Report.

The market has been particularly active in the past few days seeing rates spike temporarily at around GBP 100,000 for AHTS vessels. The average dayrates for spot AHTS fixtures in April were GBP 37,500 and GBP 22,471 for large and medium vessels respectively. Meanwhile, PSV rates were GBP 14,313 and GBP 10,723.

The next edition of the North Sea Vessel Report will be out on June 6th. 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.

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

Click here to leave Feedback

Please take note we have changed email addresses and update your contact directories as appropriate. 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 before the end of the year.

We will also be emailing our new details.

Market Commentary

T

he past thirty days or so have demonstrated just how volatile and unpredictable the North Sea spot market can be. The month began with a plethora of anchor handlers to choose from, particularly in Aberdeen, but as the weather warmed up, so did the market and as the month drew to a close, vessels were reportedly being fixed around GBP 100k per day for the first time since early 2013.

It has been a similar story for platform supply vessels. An overcrowded market in the early part of the month meant that rates generally remained below GBP 10k per day, but a spate of activity around the middle of the month, including a handful of two to four week short term fixtures with prompt commencements, seemed to provide the catalyst for an entirely different market in the latter part of the month when PSVs in the UK and Norway were regularly being fixed in the mid to high teens and in some cases above GBP 20k per day. We also witnessed an increase in ‘off market’ ac-

JACK RICHARDS

(MICS)

Shipbroker

Click Here to Email Jack offshore.london@braemar.com Tel: +44 (0)20 7903 2700

could be some keen rates on offer tivity as Charterers looked to se“As the weather as those Owners with vessels with cure vessels ‘under the radar’.

Earlier in April, Brazilian oil giant warmed up, so did the forward commitments look to minimise downtime.

Petrobras announced the results market with some of its recent tender which included a couple of vessels from the vessels fixed at GBP We are also expecting several newbuild PSVs to enter the picture North Sea which are expected to 100K per day” over the next few weeks which will depart imminently. There have be welcome news for Charterers as also been some adwe approach the traditionally busier sumditional longer term mer season. fixtures announced while we await the It’s also worth noting that while the situaresults of various tion facing helicopters in the North Sea apother outstanding pears to have improved, there still seems to medium and long be a shortage of aircraft and Charterers are term tenders. likely to continue to look at alternative opDespite the recent tions for passenger transfers, particularly flurry of activity in those vessels that are SPS compliant. the North Sea, there

Chartering

Long-Term Requirements

There are four outstanding long-term requirements: 1 x PSV / Centrica / 1 well +4 x 1well opts / June-Jul 2013 1 x PSV / Shell N / 1,3 or 5 years / comm 15th July 1 x PSV / Peterson SBS / 1 year + 2x1yr opts / Aug 2013 2 x PSV / Shell UK / 5 years + opts / Q2 2013+Jan 2014

Medium-Term Requirements

There are three outstanding medium-term requirements: 1 x AHTS / Maersk Drilling / Chain Work-Egypt 90 days / May 1 x PSV / E.On / 3 months+6x1 wk opts + D/D14 / May 1 x PSV / ConocoPhillips N / 32 days + D/D14 comm 30.5

ADTI Takes on Two PSVs ADTI has chartered two PSVs to support work being carried

by Ensco rigs in the North Sea. Both are due to commence in late May/early June after brief yard visits to Hartlepool.

The Malaviya 7 has been fixed for a period of four wells firm to support the Ensco 100 rig at the Stella location. The contract which is expected to last for at least 360 days also includes options for three additional wells. In addition, the Rem Provider has been fixed to support a well by the Ensco 101 for around 120 days.

Stril Neptun Fixed for 86 Days ConocoPhillips Norway has chartered the medium sized PSV for at least 86 days. The VS-470 designed vessel is currently working for Statoil and is expected to switch across to the new contract next week where it will be working in a Standby role. In addition to the firm period, the charterer will also hold options to extend the fixture by a further two one-week periods. The Stril Neptun is a DP2 vessel equipped with a deck area of around 580 square metres. ŠCopyright Braemar Seascope Offshore 2013

Chartering

Allseas Takes on Pair of PSVs

Allseas has fixed a pair of large PSVs including the recently delivered Fanning Tide. The STX PSV 09 CD designed vessel has been chartered along with the UP Jasper to carry out pipehaul work. The modern vessels are equipped with DP2 and deck areas of over 1,000 m2. Both vessels have been chartered for 50 to 65 days and will commence the work West of Shetland around the end of May before progressing to the Central North Sea to assist other projects.

5-Year Deal for Blue Power BG Group has chartered the Blue Power on a five year firm deal with options for a further two years. The vessel is the third of a series of six medium sized PX121 designed vessels built for Blue Ship Invest which is a wholly company of the Ulstein Group. The vessels are being managed by Atlantic Offshore. Meanwhile, the hull of the Blue Protector was launched last month at the Zaliv Shipyard. The dayrate for the vessel is rumoured to be GBP 16,000.

Brage Trader Supporting GAIII The Brage Trader has been fixed to support the work of the GAIII rig for SPD. The vessel has been chartered for between 60 and 90 days at a rate of around GBP 18,500. The Brage Trader is an STX PSV 09 CD designed vessel equipped with DP2 and a deck area of around 1,000m2. The vessel is currently working on the North Sea spot market for Maersk Oil UK and is expected to commence the contract for SPD in late June or July. The Brage Trader will then return to the spot market at some point between August and October.

ConocoPhillips N Fixes Rem Fortune The large PSV Rem Fortune has secured a two year charter with ConocoPhillips Norway. The newbuild vessel scheduled for delivery in May and is expected join the North Sea spot market before commencing the term contract in July which is also includes an additional oneyear option. The VS-485 MKIII designed vessel will be equipped with DP2 and a deck area of around 1,004 m2.

The dayrate for the term work is understood to be around GBP 19,000. ŠCopyright Braemar Seascope Offshore 2013

Chartering

CNR Work for Toisa Intrepid

The large PSV Toisa Intrepid has been fixed by CNR for at least three years firm and a further three one-year options. The 1998-built Toisa Intrepid has a deck area of around 936 square metres and has accommodation for up to 27 personnel. The vessel will be utilised in a general pool support role in the UK North Sea. The charter commenced last week after a lengthy tender process.

BP UK Takes on Quartet of Vessels A total of four vessel have been chartered on medium or long-term charters by BP UK in the past few weeks. These include the IMT-98 designed medium sized PSV Grampian Talisker for 5-years, the VOS Precious for 2 years , the SBS Tempest for around nine months and the Idun Viking which has been fixed for 14 months plus options. All of the vessels will be carrying out general pool support duties.

BG Norge Charters Skansi Offshore PSV Skansi Offshore’s newbuild large PSV has been fixed by BG Norge on a one-year firm contract with options for further year and four three-month period. The vessel is a Havyard 833 design that was originally ordered by a different owner and is set for delivery in June 2013 when it will commence the charter. The vessel is currently being built at the Leirvik shipyard in Sogn, Norway. It will have and LOA of 86.8m, breadth of 19.6m and a deck area of around 1,000m2.

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 email us.

ŠCopyright Braemar Seascope Offshore 2013

Newbuilds

Vard Signs LOI with Simon Mokster

Vard has signed a Letter of Intent with Simon Mokster Shipping for design and construction of a platform supply vessel. The PSV 06 LNG designed vessel is scheduled for delivery in the first quarter of 2015 from Vard in Norway although the hull will be delivered from Vard in Romania. The vessel will be a Clean Design environmentally friendly dual fuel LNG/diesel electric ship.

New Cable Vessel Announced Orange subsidiary France Telecom Marine has announced the order of a new cable ship that will be operational in the summer of 2014. The vessel, which will be called Pierre de Fermat, will be designed to manage the installation and maintenance of all kinds of submarine cables including fibre optic and energy cables. The vessel will also be equipped with an ROV and have DP2, accommodation for 80 and a 80t Bollard Pull. France Telecom has commissioned VARD for the project.

Ulstein Pair for Kuma Kuma Shipping has ordered two PSVs from Ulstein. The vessels, which are of the new P128 design, will be aimed at serving the general support market related to workover barges and jackup rigs. They will have an LOA of 71.5m by 15m with a deadweight of approximately 3,000 tonnes.

The deck areas will be around 610m2 and able to accommodate four lengths of 12m casing pipes. The vessels will be constructed a Chinese shipyard with delivery planned for 2014.

SCI Takes Delivery of Newbuild AHTS The Shipping Corporation of India (SCI) has taken delivery of its latest newbuild AHTS vessel SCI Urja. The vessel is the last of a series of 120t bollard pull sister ships and is equipped with DP1, Fifi and is UKOOA (c) compliant. The vessel will be used to support the Indian offshore sector. The SCI Urja is an AH-03 designed vessel with an LOA of 65.2m. The vessel will be registered under Indian Flag with Mumbai as the home port. ŠCopyright Braemar Seascope Offshore 2013

Corporate

Kosmos to Take on Ireland Operatorships

Kosmos Energy has entered into two farm-in agreements in Ireland. The deal sees the company acquire a 75 per cent participating interest and operatorship in Licensing Option 11/5 and an 85 per cent operating interest in Licensing Options 11/7 and 11/8. Contingent upon an election by Kosmos and Europa to enter a subsequent exploration drilling phase on one or more of the blocks, Kosmos will also fund 100 per cent of the costs of the first exploration well on each block.

NPD Stats Show 76 Producing Fields Norwegian Petroleum Directorate releases details of exploration and production activities on the Norwegian Continental shelf. According to the figures there were 76 producing fields on the shelf including six new fields which started production in 2012 and a further thirteen which are undergoing development. In total there are 30 filed and discoveries which are in the planning phase and 12 which are currently shut down.

Government Approval for Cladhan Plan Taqa has received Government approval for its Cladhan field development plan. The initial phase of the development will consist of two producer wells and one injection well with production tied back to Taqa’s Tern Alpha platform 17.5km away. According Taqa Managing Director Leo Koot “Developing Cladhan as a tie back to Tern supports Taqa’s strategy to invest in our infrastructure as we recognise the crucial part it plays in allowing us to maximise recovery from the northern North Sea.”

Huntington Production Starts Premier Oil has announced that first oil production from the Huntington field has commenced. The field, in the central North Sea, which utilises the Voyageur Spirit FPSO, a six well subsea drilling template and a 12 kilometre gas export pipeline connected to the BP CATS transportation system. The field is located around 230km offshore in a water depth of around 90m. ©Copyright Braemar Seascope Offshore 2013

Premier Oil Find Images courtesy of Awilco Drilling

The seasonal activity spike in the North Sea has begun with the usual flurry of rig moves coinciding to cause a surge of demand on the AHTS market. This can be expected to slow down in the medium term as units are positioned for their summer campaigns however with such high utilisation in the rig market there could be a constant steady demad for vessels to carry out moves in the coming months.

The Transocean Prospect has had its contract with Nexen extended for a further six months for work in the UK sector of the North Sea. The rig is currently on charter with Endeavour via a Nexen sublet and is due to go to ConocPhillips in February next year. In addition the

Transocean Arctic has also been extended for a further five-wells for work in the Norwegian North Sea. The rig is currently working for Wintershall.

Hurricane Energy has struck a deal for the GSF Arctic III semisubmersible rig for a one well slot. SPD will manage the rig while it is used to drill and test the company’s Lancaster oil discovery.

The semisubmersible Ocean Princess is set to undergo a two half-year special survey after completing a charter with Enquest in August. The rig is then expected to be one of the few units without forward commitments when it returns to the market in November.

Premier Oil has announced that an exploration well at its Bonneville prospect and a sidetrack have discovered oil. The prospect is located 4km south of the Burgman discovery on the Catcher licence in the UK Central North Sea. It is expected that the field will be developed via tie-back to the Catcher field.

The WilPhoenix rig, which carried out the drilling, will now move to the West of Shetland.

Rig Activity by Type and Country Norway UK/Irl

Drillship Jackup Semi-Sub Total

1

1

10

16

24

17

35

34

Denmark Netherlands

Stacked without future contract

Stacked with future contract Total 2

7

7

4

4

3

41

1

4

46

1

7

88

Armada Sterling FPSO Conversion Highlights

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

Results of BP 5 ERRV Tender

BP has officially announced the outcome of their five vessel ERRV tender and, as expected, the status quo has been effectively retained. North Star has secured three contracts and Vroon Offshore has two. It is understood all five contracts are for 5-10 years and commence in Q3 2013. North star will provide the tanker assist vessel Grampian Frontier which has been on charter to BP since delivery in 1997. Grampian Conquest and the Grampian Dee have also been fixed along with an option for fourth vessel. The PSV Grampian Talisker has also been extender for a similar period.

Extensions for Pair of Vroon Vessels Vroon has secured an extension for two existing vessel, namely the Class B VOS Venturer and the Class A VOS Vigilant. One of these field support vessel will be replaced by a newbuilding that is currently under construction in China.

These contract awards effectively cover BP’s ERRV requirements for installation that are not covered by Project Jigsaw. Project Jigsaw commenced in 2006 with the deployment of four large 93m PSVs (IMT 992 design) each equipped with twin autonomous rescue and recover craft.

Market Tightness Continues in Medium Term Centrica is currently tendering for a vessel to support a one to five well contract (of up to 400 days or more) for a drilling programme in the Greater Markham area in the South North Sea with the Noble Byron Welliver. The rig is currently undergoing repairs, upgrades and maintenance in Rotterdam. Talisman also remains outstanding for a vessel for six to twelve months from late May for support of the Rowan Stavanger rig in the Central North Sea. Teekay Petrojarl Production is also tendering for a vessel from Sept/Oct to the end of 2014 for support of the Banff field FPSO. Interestingly, at a time when vessel availability is extremely tight, these outstanding requirements will effectively increase ‘net’ demand as there is no incumbent vessel currently supporting these installations. This suggests Charterers can expect little respite from prevailing market conditions in the medium term.

Enquest Awards Contact to North Star Enquest has awarded a minimum five year contract to North Star for the provision of a vessel to support their Central North Sea operations from later this year. The same operator is now tendering for a vessel for two to three years to support the Stena Spey from late May. The rig is currently undergoing repairs, maintenance and upgrades in Rotterdam.

©Copyright Braemar Seascope Offshore 2013

Renewables

Additional Work for Seacat Services

Seacat Services has secured a number contracts for work on five separate windfamr projects. The deals include work at projects at Meerwind, West of Duddon Sands and Greater Gabbard. The company has also confirmed the redeployment of the Seacat Reliance and Seacat Endeavour at Greater Gabbard where they were originally placed on a three – month charter agreement.

First Electricity from Teeside Windfarm The first electricity has been produced by the EDF’s Teeside Offshore Windfarm. The first of three wind turbine generators have now been fully commissioned.

The 27 wind turbine project will provide around 62MW of power once complete. The MPI Adventure jackup installation vessel has so far installed 18 turbines.

GMS Jackups Active on Contracts Gulf Marine Services has won three new contracts worth a total of around USD 46 million. The work covers transformer installation in the German offshore sector and will utilise the jack-up barge GMS Endeavour. The vessel has previously been working on wind farm installations and maintenance contracts and has work through to the second quarter of 2014. Meanwhile, the sister barge GMS Endurance has recently begun a new contract with ConocoPhillips in the Southern North Sea.

Met Mast Installation for Brave Tern The jackup vessel Brave Tern is expected to install the Meteorological Mast for the Firth of Forth windfarm in the coming days. The vessel, which is operated by Fred Olsen Windcarrier, will be working for around three weeks in total. The vessel is expected to take around four days to carry out foundation installation with a further two weeks for topside installation and commissioning.

The mast will have a maximum height of 120m. ©Copyright Braemar Seascope Offshore 2013

£90,000

£80,000

£70,000

Average Spot Dayrate

£60,000

£50,000

£40,000

£30,000

£20,000

£10,000

£0 Jan

Feb Mar Apr Large - AHTS (16,000+ BHP) 2011

May Jun Jul Medium - AHTS (12-15,999 BHP) 2011

Aug Sep Oct 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

Nov

Dec

£25,000

Average Spot Dayrate

£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

Large - AHTS (16,000+ BHP)

Large PSVs (700m2+ Clear Deck)

Medium PSVs (500-700m2 Clear Deck) 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

Oct-04

Jul-04

Apr-04

Jan-04

£0

Jan-04 Mar-04 May-04 Jul-04 Sep-04 Nov-04 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 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13

£140,000

£120,000

£100,000

£80,000

£60,000

£40,000

£20,000

Medium - AHTS (12-15,999 BHP)

£40,000

£35,000

£30,000

£25,000

£20,000

£15,000

£10,000

£5,000

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.

fleet sales

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

Click here to leave Feedback

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:

Singapore:

35 Cosway Street

1 Pickering Street

London NW1 5BT

#08-01

UK

Great Eastern Centre

WEBSITE www.braemarseascope.com

Singapore 048659 Tel+44 (0)20 7903 2700

Tel +65 6410 9013

Fax+44 (0)20 7903 2701

Fax +65 6410 9015

Email: offshore.london@braemar.com

Email:

Aberdeen:

Perth:

Offshore - Sale & Purchase

25 Carden Place

Unit 4 Churchill Court

35 Cosway Street

Aberdeen AB10 1UQ

335 Hay Street

London NW1 5BT

UK

Perth, Western Australia

UK

offshore.singapore@braemar.com

6008, Australia Tel +44 (0)1224 628470

Tel +61 8 9388 0536

Fax +44 (0)1224 621444 Email: offshore.aberdeen@braemar.com

Tel+44 (0)20 7903 2700 Fax+44 (0)20 7903 2701

Email: offshore.perth@braemar.com

Email: offshore.snp@braemar.com

London Office Andrew Williams Charles Cundall Mark Chesterfield Mark Malvisi Tobi Menzies Jack Richards Kevin Morrin Robbie Cook Sean Bate Michael Bates Candice Wu Sam Beynon

Aberdeen Office ~ MD/Shipbroker ~ Director/Shipbroker ~ Director/Shipbroker ~ Shipbroker ~ Shipbroker ~ Shipbroker ~ Shipbroker ~ Shipbroker (S&P) ~ Market Analysis ~ Shipbroker ~ Shipbroker ~ Administration

Telephone :0044 20 7903 2700 Fax :0044 20 7903 2701 Email: offshore.london@braemar.com Perth Office Mark North

Bruce Donaldson David Veitch Graeme Riddell Ross Finlayson Jamie Waterston Amy Henderson

~ Director/Shipbroker ~ Director/Shipbroker ~ Shipbroker ~ Shipbroker ~ Trainee Shipbroker ~ Office Manager

Telephone :0044 1224 628470 Fax :0044 1224 621444 Email: offshore.aberdeen@braemar.com

Singapore Office James Sherrard George Delamain Nicola Troup Nana Lai

~ Manager ~ Shipbroker ~ Shipbroker ~ Administration

~ Manager

Telephone :0061 89388 0536 Email: offshore.perth@braemar.com

Telephone :0065 6410 9013 Fax :0065 6410 9015 Email: offshore.singapore@braemar.com

ŠBraemar Seascope Offshore