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BRAEMAR SEASCOPE OFFSHORE Renewables Newsletter MARCH 2011

ISSUE: 6

LARGE FIRMS ANNOUNCE RENEWABLES PLANS MARKET NEWS & ANALYSIS VESSEL DAYRATE CHARTS

Picture Courtesy of Vroon Shipping Group

©Braemar Seascope Offshore

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look forward to hearing your feedback, comments and suggestions that will help to improve the experience of all of our readers further. Our more interactive feel will be adopted across our full suite of reports so please feel free to contact us.

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Market Commentary

T

he last few weeks have seen something of a shake-up in the renewable energy sector.

With smaller players struggling due to market turmoil, the large Subsea firms have made a move to stake a claim to a share of the future markets.

Subocean’s financial difficulties were well known in the industry prior to the decision by the firm to cease trading. However, Technip’s decision to step in and buy out the company was less anticipated. The big subsea players Technip and merged firms Acergy and Subsea 7 had seemed reluctant over the renewables market until now.

By acquiring Subocean Group Technip aims to develop a leading position in the renewables market in the coming years with a focus on offshore wind services. The firm has taken on 300 employees from the former company and plans to use the key contracts and workload backlog to become a leading player in the offshore wind cable installation field. Now it seems the company is planning to base the headquarters for its European Offshore Wind Projects in Aberdeen. Prior to this recent development Technip launched the Hywind full scale floating turbine.

In its latest advancement on turbine technology, Technip has launched the Vertiwind floating wind turbine project (pictured below). Vertiwind is a prototype vertical-axis offshore floating wind turbine. Technip will be responsible for the design of the floater, mooring system and connection cable of the turbine.

Subsea 7 has also launched its offshore renewables division in 2011. The new division has already signed a Memorandum of Understanding with Scottish and Southern Energy under which it will form an alliance with SSE, Siemens plc, Burntisland Fabrications and others to work together to reduce the cost of power from offshore wind farms.

The expertise these subsea companies will bring to the renewables sector is likely to see them become the favoured contractors in the sector and their global coverage and range of vessels, manpower and offshore knowledge will enable them to secure large chunks of future workscopes going forwards. The interest of these large firms is also something of a coming-of-age scenario for the renewables sector which can now be said to have graduated into the mainstream.

Big Names Move In

PICTURE: Vessels sit in Aberdeen Bay charter free in early February.

©Copyright Braemar Seascope Offshore 2011

New Arrivals

O

rders for windfarm installation vessels have continued to be placed with yards and a number of options for additional vessels have been executed. This stream of newbuildings has led one ship-owner, who has already placed an order for an installation vessel, to express concerns over potential over-supply going forwards.

Vroon’s MPI Offshore is ahead of the supply curve with its MPI Resolution and the recent delivery of the MPI Adventure (pictured below) with the MPI Discovery set to follow later this year. The namegiving ceremony for the 140m installation vessel took place at Cosco Qidong Shipyard in China earlier this year. The MPI Resolution has since been contracted to work on the London Array wind farm from April. The vessel will be used to install the foundations and turbines for the 1GW windfarm which will eventually incorporate 175 turbines. The MPI Adventure will be working alongside the A2Sea Sea Worker at the site.

Meanwhile, Swire Blue Ocean has taken up an option for a second vessel at the Samsung Heavy Industries yard in Korea. The Pacific Osprey will be the same specification as the Pacific Orca which is currently under construction at the yard. The vessels will be delivering in

2012 and early 2013 with the Pacific Orca now expected to take on installation work at the DanTysk offshore windfarm originally earmarked for the earlier vessel.

Beluga has also ordered a cable vessel and Van Oord ordered an installation vessel at the end of last year.

Combined with the heavy-lift vessels capable of carrying out installation work including the likes of the Samson (currently charter free) we are beginning to see the emergence of a strong fleet of renewables vessels.

SPEC BOX MPI Adventure Classification: Det Norske Veritas 1A1 Self Elevating Unit Legs: 6 @ 72.00 Metres Accom: 112 Personnel Main Cranel: 1,000t @ 25m Cargo Area: 3,600m² (approx.)

Transit Speed: 12.5 knots DP: 2 MPI Discovery to follow in Autumn2011: Full Spec Here

MPI Adventure

Picture Courtesy of Vroon Shipping Group

Chartering

Fluor Charters Normand Mermaid

Fluor has fixed the Normand Mermaid for 60 days firm plus additional options. The Ulstein P103-designed vessel is a DP3 multifunctional subsea support vessel with a helideck, 80t offshore crane and accommodation for 70 personnel. The vessel is understood to have been chartered at a dayrate of around GBP 25,000.

Sea Worker Carries Out London Array Work The installation jack-up barge Sea Worker has been carrying out work on the London Array Offshore windfarm. The first loadout of a monopole and transition piece took place in Harwich on March 2nd. The barge was accompanied by two tugs; the Sea Alfa and the Sea Echo. Phase one of the operation consists of 175 wind turbines in water depths ranging between 0 and 25 metres. A2SEA's Sea Worker has 73m legs and can work in 40m water depths.

Rambiz Working at Lincs Wind Farm The heavy lift vessel Rambiz has commenced installation of a steel jacket foundation at the Lincs Offshore Windfarm for the offshore substation at the site. This work will be followed by the securing of the foundation to the seabed via piling. Piling work will be carried out by the jackup vessel Excalibur and supported by the jack-up vessel Resolution. The work is expected to last around four weeks.

Brave Tern Contracted by Vestas Vestas Offshore Germany has entered into a contract to take the windfarm installation vessel Brave Tern on charter for six months firm with three one-month options. The vessel is currently under construction at the Lamprell shipyard in Dubai and is scheduled to deliver in the second quarter of 2012. The charter, which has been entered on certain subjects, is expected to commence in May 2013. ŠCopyright Braemar Seascope Offshore 2011

Chartering

Walney Windfarm Construction Update

All of the 51 wind turbine generators for the first phase of the Walney Offshore Windfarm are now installed. A number of vessels have been working at the site in recent weeks. The Trinity House vessel Patricia has been involved with carrying out buoy deployment and the survey vessel Fugro Commander has been undertaking seabed sampling. In addition the Vos Sympathy has carried out a survey of the export cable and an infield survey. The DSVs Hbc Performer and Hbc Supporter are also on site.

Gwynt y Mor Contract Award Seaway Heavy Lifting has been awarded a contract to transport and install two substation topsides at the Gwynt y Mor Offshore windfarm. Either the Stanislav Yudin or the Oleg Strashnov heavy lift vessel will be nominated closer to the scheduled workscope which is planned for the summer of 2012. The project will be executed on a lumpsum contract. Each substation consists of a piled jacket structure and a topside with a total weight of 1,500 metric tonnes. These will be installed in water depths of around 24 metres.

Normand Tonjer for Inter-Array Work A study by Blue Offshore and Integrated Subsea Services (ISS) has confirmed the feasability of using the multipurpose DP2 vessel Normand Tonjer for array cable installation on offshore windfarms. The companies looked into the development of deck layouts for cable installation and cable burial as well as adding equipment on top of the existing ROV, survey and air diving capabilities. The Normand Tonjer is on charter with ISS on a three-year contract with two one-year options that commenced in 2008.

‘Comfort At Sea’ Enters Accommodation Blue Water Shipping has signed an agreement to market International Shipping Partners (ISP) fleet of ferry, cruise and hotel vessels to the offshore accommodation sector.

The deal covers the 23-vessel fleet although it is expected to focus initially on five vessels. ISP's fleet has previously been used as accommodation in the Mexican gulf in the aftermath of hurricane Katrina and to house UN employees following the earthquake in Haiti. ©Copyright Braemar Seascope Offshore 2011

Chartering

Samson Marketed for Renewables

The large offshore construction vessel Samson is currently charter free and is being marketed for potential offshore wind-turbine foundation construction work. The multifunctional vessel is equipped with DP3, a 1,600 mt crane, saturation diving and accommodation for 296. The 2009built vessel also has a deck cargo area of around 5,000 square metres and two moonpools.

Windcat 101 Launched The Windcat 101 workboat has been launched in Holland. The Mark IV designed high-speed catamaran will be capable of carrying up to 50 personnel at speeds of up to 30 knots. The 27m Windcat 101 has been designed for work on windfarms and offshore oil and gas installations. The vessel’s foredeck is suitable for carrying one 20ft or two 10ft storage containers or other cargo. Windcat Workboats already has a fleet of vessels operating on windfarms across Europe. Click the image or here to see a video of the Windcat 3 in action.

MV Lone Christened SAL Heavy Lift Shipping has named its latest vessel MV Lone. The ceremony for the sister-ship of the MV Svenja was held at the Uberseebrucke bridge in Hamburg in mid March. The vessel has a lifting capacity of 2,000 tonnes, a speed of 20 knots and is equipped with DP2. SAL intends to market the vessel to assist in the installation of foundations for offshore windfarms as well as oil and gas installation works.

Sheringham Shoal Work Continues Trenching operations at Sheringham Shoal are expected to continue until around the end of March. The Dive support vessel Ocean Dragon and the trenching support vessel Forth Jouster have been at the site since around the end of January working on the 23km cable corridor to the main windfarm site. The windfarm, which is owned by Statoil and Statkraft, will eventually consist of 88 offshore wind turbines. ŠCopyright Braemar Seascope Offshore 2011

Newbuilds

Second Vessel for Swire Blue Ocean

Swire Blue Ocean has declared an option to build a second windfarm installation vessel with Samsung Heavy Industries in Korea. The vessel, which is scheduled to arrive in Europe in early 2013, will be named Pacific Osprey and will be utilised on the DanTysk windfarm in the German North Sea. The sister ship Pacific Orca, which was originally due to perform the DanTysk work, will be committed to another European project.

Beluga Orders Cable-Lay Vessel Beluga Group has ordered its first cable-lay vessel with Lloyd Werft. The deal, which still requires confirmation by the German Government, also includes an option for a second vessel. The first vessel will be named the Beluga Connection with delivery mid 2012. The 110.8m-vessel is to be utilised laying cable in the Wadden Sea for NKT Cables. Beluga Hochtief Offshore is also building a jack-up capable of installing 120m-high turbines in 50m of water.

Fred Olsen Orders Transfer Vessels Fred Olsen has signed a contract for four new crew boats from BĂĽtservice Mandal AS (Norway). The custom designed vessels will be used to transfer technicians to offshore wind turbine installations. They will have an LOA of 21m with a beam of 7m and will be capable of carrying 12 passengers with a max speed of 30 knots. The vessels will be delivered between October 2011 and February 2012.

By February 2012, Fred Olsen Windcarrier will have five crew vessels in operation and will hold six options.

Fiona F Delivered to GSS The newbuild multicat vessel Fiona F has been delivered to Gareloch Support Services (GSS) from Neptune Marine.

The vessel has undertaken sea trials and is understood to have commenced its first assignment. The 26.48 metre 2609-Euro Carrier design is expected to have a bollard pull of more than 30t and a forward crane of 240t and after crane of 140t. The Fiona F is the fourth in a series of vessels built for GSS and is expected to be followed shortly by a further two newbuilds. ŠCopyright Braemar Seascope Offshore 2011

Corporate

EastPort Assigned to Sheringham Shoal

EastPort UK has announced that the outer harbour at Great Yarmouth has been selected by A2Sea as the reloading base of the installation of wind turbines on the Sheringham Shoal offshore windfarm. The port will be used for around eight to ten months as the base for the work. The Sheringham Shoal windfarm is being developed

by Scira Offshore Energy, a joint company between Statoil and Statkraft, the project will consist of 88 wind turbines and two offshore substations.

Technip Acquires Subocean Group Technip has announced it has acquired all of the assets of the UK-based subsea cable and renewables company, Subocean Group. Technip will take on around 300 employees in addition to land-based assets and key contracts. The company believes the move will therefore make it a leading player in offshore wind cable installation. Technip's upfront investment will be around GBP 10 million.

Subsea 7 Launches Renewables Division Subsea 7 has launched an offshore renewables division.

The company plans to transfer its seabed-to-surface expertise to the emerging renewables market. Subsea 7 will provide project management, engineering and construction services to support offshore developments. The firm has already signed a deal with Scottish and Southern Energy plc (SSE) under which Subsea 7 will form an alliance with SSE, Siemens PLC, Siemens Transmission and Distribution Limited, Burntisland Fabrications Ltd and Atkins.

Technip Launches Wind Turbine Project Technip has launched a project to test a prototype vertical axis offshore floating wind turbine. The scheme is being worked on in association with Nenuphar, Converteam and EDF Energies nouvelles. The hope is that the new concept, known as Vertiwind, will be free from the constraints of foundations and will be used in countries around the Mediterranean basin, in Europe and the United States.

ŠCopyright Braemar Seascope Offshore 2011

Jan-04

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Jan-11

New Broker

Braemar Seascope Offshore’s Singapore department has recently moved into a new office space (pictured above).

The new office brings Braemar Seascope’s Singapore-based Offshore division under the same roof as the Tankers and Dry Cargo elements as well as the Braemar Falconer and Braemar Steege divisions that deal with technical and insurance aspects respectively.

For further details of the full range of services offered by Braemar Shipping Services - click here.

Please update any details that you hold accordingly. Please note that telephone numbers and email addresses will remain unchanged.

The new address for Braemar Seascope Offshore in Singapore is now: 1 Pickering Street #08-01 Great Eastern Centre Singapore 048659 We have a permanent staff of three offshore brokers in Singapore: James Sherrard, Søren Nielsen and Nana Lai. They are supported by our directors in London and Aberdeen and Candice Wu who frequently travels to the region.

The Singapore office deals with Sale and Purchase, Long Term and Short Term Vessel Chartering and Vessel Valuations throughout the Southeast Asia region.

Following Michael Bates move from the London office from Aberdeen, a new trainee has been brought on board. Ross Finlayson has been carrying out duties in the Aberdeen office. Ross is building on a good knowledge of the maritime industry having studied the business at university and spending a small amount of time offshore. Like all our trainees he will be undertaking the Institute of Chartered Ship Brokers examinations. We know you will give Ross a warm welcome to our team.

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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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