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BRAEMAR SEASCOPE OFFSHORE QUARTERLY MAGAZINE March 2012 ISSUE: 7

MARKET NEWS & ANALYSIS VESSEL DAYRATE CHARTS CORPORATE NEWS

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Subsea Market Latest

Welcome to the latest edition of the Braemar Seascope Offshore Renewables Vessel Report. The last few months have seen the renewables market continue in the strong trend that has been present over the past years.

The continued faith in the market by investors, operators and ship owners has seen a number of newbuild orders placed. These range from Scaldis’ plans for a new crane ship, Rambiz II, through to new Flotels and Crew Boats.

The European Union has also reasserted its backing for low-carbon policies including plans to dramatically reduce the dependence on fossil fuels by 2050 along with targets for CO2 reduction by

40% by 2030 and 80% by 2050.

On the International front, studies have shown that India could have much greater potential for wind energy than previously thought and the USA has streamlined applications for offshore wind farms.

With the increasing crossover between the renewables, oil and gas and subsea markets we have also included a couple of pages of recent subsea market news and charts showing vessel dayrates for the oil and gas fleet.

Sean Bate Market Analysis Manager research@seascope.co.uk

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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.

Latest News

Nexans Takes On Seacat Services Vessels

Seacat Services has announced the signing of operational contracts for two 21m DNV class multi-purpose windfarm support vessels. The Seacat Endeavour and Seacat Reliance will be commencing operations at Dong Energy’s Anholt windfarm in Denmark for Nexans. The vessels will be used to transfer two teams of jointers and their equipment for cable termination and testing. The vessels have capacity for 12 passengers including 2/3 crew.

Sirius Offshore Orders Pair of Flotels A pair of newbuild semi-submersible flotels have been ordered by a Norwegian start-up company Sirius Offshore Accommodation. The vessels, which are understood to have a price tag of USD 315M , will have capacity for 490 workers and have a 30-year life span. The orders which have been placed with Dalian Shipbuilding will be ready from the fourth quarter of 2014. The company has been formed by Erland Bassoe and former Prosafe executives Bjorn Henriksen and Roy Hallaas.

Riffgat Work for Fred Olsen Windcarrier Fred Olsen Windcarrier has been awarded a contract for installation of 30 wind turbines and associated equipment at the Riffgat offshore windfarm in Germany. The work at the EWE facility will be carried out by either the Brave Tern or Bold Tern installation vessels from March 2013.

Both vessels are currently under construction at the Lamprell shipyard in Dubai. The vessels will be equipped with 800t cranes, accommodation for 80 personnel and will be able to operate in up to 45 metres of water.

Mobile Met Mast Plan for E.On E.on is planning on putting a new mobile met mast which will be based on MarCon Wind Power’s Mark II foundation in position at its Södra Midsjöbankarna site in the Baltic Sea. The mast platform will be equipped with 48 metre legs and will have the advantage of being useable elsewhere thereby reducing the cost and the environmental footprint. The long-term aim of MarCon is to see the platform’s used for wind turbines offshore. ©Copyright Braemar Seascope Offshore 2011

Renewables

Stril Explorer To Carry Out Humber Work

Enquest has contracted Canyon Offshore in order to utilise the DP2 vessel Stril Explorer and ROVDrill services for its geotechnical borehole work on the Alma Galia development in the North Sea. The geotechnical survey work at the Humber Gateway wind farm will take 55 days from late May and will investigate soil conditions for foundation design calculation and anchor pile foundation installation analysis. The Stril Explorer is a multi-purpose DP2 vessel with a 60t crane and accommodation for 70.

London Array Work Continues The wind turbine installation jack-up Sea Worker and assist tugs Sea Alfa and Sea Echo are working on the London array Offshore wind farm. Construction of Phase One will consist of 175 wind turbines installed on two sandbanks in water depths between 0 and 25m. The export cable installation vessel Stemat Spirit is continuing to lay the second of four export cables. The Stemat Spirit will be assisted by the Coastal Vanguard tug and multicats Yvonne W and Coastal Discovery.

Excalibur Installing Met Mast at Rampion Fugro Seacore’s jack-up barge Excalibur has been contracted by E.On to carry out the installation of a metrological mast at the site of the proposed site of the Rampion wind farm. The vessel is expected to mobilise from Newhaven during week 13 and the installation is due to be carried out the following week with the pile being floated out to Excalibur. Excalibur is an eight-legged jackup capable of working water depths of up to 40m.

Diving Work at Walney Offshore Wind Farm The two dive support vessels HBC Performer and HBC Supporter are currently on location at Walney 1 where all 51 wind turbines are installed. The HBC Performer will also be carrying out a four-point mooring diver assisted survey along the Walney 2 export cable route. The small survey vessel Aquadynamics has also been on site to carry out a benthic sampling survey and a beam trawl survey at the proposed Walney Wind Farm Extension. ŠCopyright Braemar Seascope Offshore 2011

Renewables

New Vattenfall Wave Energy Project at EMEC

Vattenfall has invested in a new wave energy test project at the European Marine Energy Centre (EMEC) in the Orkney Islands. This represents the company’s second scheme following a similar venture off the coast of the Shetland Islands last year. Vattenfall already has a joint venture with Pelamis, Aegir Wave Power and plans to eventually have 11 Pelamis wave energy converters installed off Shetland. The AHTS Highland Valour has recently been utilised to carry out work for Pelamis at EMEC.

Acquisitions of Survey Firms Osiris & Emu Bibby Marine has finalised the acquisition of hydrographic and geophysical survey firm Osiris following a two-year relationship with the companies. Meanwhile, independent marine survey and environmental consultancy EMU has been acquired by Fugro. Emu carries out ecological, geophysical and hydrological surveys for oil and gas and renewables clients. The firm currently has a fleet of seven vessels including the 32 metre Shannon with accommodation for 17 on board.

REpower to Build 54 Turbines for Gode Wind PNE Wind AG and REpower Systems SE have signed a contract for 54 offshore wind turbines for the Gode Wind I wind farm. The turbines will provide 6,150 kW of power for the project which is based around 35 km off the East Frisian Islands. The turbines are set to be installed in water depths between 28 and 34 metres during 2015. The turbines are already in use at the Belgian Thornton Bank wind project.

P&O Ferry in Renewables Role P&O Ferries has chartered one of its large freight ships on a three to four month charter with Centrica Renewable Energy. The 180-metre European Seaway will be acting as an accommodation vessel for technicians working at the Lynn and Inner Dowsing Wind Farm Array from April. The vessel, which usually acts as a freighter between Dover and Calais, will be stationed seven kilometres off Skegness. ŠCopyright Braemar Seascope Offshore 2011

Renewables

MPI Adventure at London Array

The Wind Turbine Installation Vessel MPI Adventure is currently working on the London Array Offshore Windfarm. The vessel is currently installing foundation pieces for phase one of the project which will consist of 175 wind turbine, installed on two sandbanks. The Stemat Spirit is also at the site carrying out cable installation from around January 20th.

JB-114 Carries Out Construction at Lincs The monohull jack-up barge JB-114 is carrying out drilling works for foundations at the Lincs Offshore Windfarm.

The MPI Resolution is also at the site performing foundation installations. The vessels are being supported by the Marineco Toomai and the Union Fighter. Guard vessels are also currently on site along the route of the export cable.

Last Export Cable for Greater Gabbard Cable lay barge ASV pioneer is performing the installation of the third and final export cable at the Greater Gabbard offshore wind farm. The barge is being supported by the tugs Thorax, EMS and Zwerver 3. A number of construction vessels including the Topaz Commander, Deep Cygnus, Relume, Seajacks Leviathan and Polar Prince have also been working on the project.

Swiber Else Marie in Renewables Role The Swiber Else Marie AHTS is currently working on the Walney 1 and 2 offshore wind farms. The vessel is understood to have recently completed burial of the infield and inter-array cables at the site and has carried out survey and mattress laying work. It is shortly expected to demobilise from the project before joining the Ormonde wind farm where work on the export cable route is scheduled to start in mid February. ŠCopyright Braemar Seascope Offshore 2011

Renewables Newbuilds

Rambiz II Plans Announced

Scaldis has ordered a large USD 100M crane ship with a 4,000 tonne hoisting capacity from STX Offshore. The vessel, which has been provisionally named Rambiz II, is set for delivery in Spring 2014. It will have two Huisman cranes each with a lifting capacity of 2,000 tonnes, it will also have DP2, accommodation for 78 and a moonpool.

Scaldis plans to market the vessel for renewable installation work and decommissioning of oil and gas platform.

Fred Olsen Expands Crew Boat Fleet Fred Olsen Windcarrier has declared an option on three new crew boats. The deal follows on from a contract for four sister ships that were ordered in February 2011.

Three of the original order have been delivered with the fourth expected before Easter. All four will be working for Siemens on the London Array later this year. The three new vessels will deliver between October 2012 and February 2013.

A2SEA Orders Installation Jack-Up A2SEA has signed a new contract with COSCO shipyard for construction of a new wind turbine installation jack-up vessel. The contract, which has a value of around USD 155 million, is for a sister ship to the Sea Installer. However the new vessel will vary slightly with the inclusion of a longer crane capable of lifting up to 900 tonnes. The new vessel is expected to be operable in water depths of 45 metres and will be delivered in 2014. It is expected to be targeted at the North European renewables market.

Van Oord Gets Newbuild Multicat Van Oord has taken delivery of its newbuild multicat Oceanus. The 3213 designed vessel which was built by Damen shipyards is the first of its type. The vessel has an LOA of 32.68 metres, a draft of 3 metres and a bollard pull of 30.2. The Oceanus has a 340 tonne fore crane and an 80 tonne aft crane. The vessels will also be able to supply water and fuel oil. Sister vessel to the Oceanus, Cronus, is set to be delivered in April. ŠCopyright Braemar Seascope Offshore 2011

Corporate

Plan for Normandy Offshore Wind

A consortium has come together over the plan for bids to site a 3,000 MW wind farm off France’s coast starting in 2015. The group, which is formed of GDF Suez, VINCI, CDC Infrastructure and AREVA, have highlighted their economic and social plan for the project. The scheme will include three zones in Normandy and could potentially generate more than 400 skilled jobs and create a sustainable manufacturing industry in the region.

Gamesa Announces Port of Leith Plan Gamesa has announced plans to potentially set up a facility in the Port of Leith as its UK manufacturing base. The plan could see about 800 new jobs and an investment of around EUR 150 million. Gamesa is involved in the design, construction and installation of wind turbines and is in the process of moving its global offshore wind headquarters to its new London offices.

EMEC to Support Japanese Centre The European Marine Energy Centre has announced a collaboration to develop Japan’s first marine energy test centre. EMEC in Orkney is the only accredited wave and tidal test centre for marine renewable energy and will provide advice and support on the design set up and operation of the Japanese Marine Energy Centre. EMEC has 14 fullscale test berths and also has smaller test facilities for small scale wave and tidal devices.

Japanese Investors to Acquire Seajacks Marubeni Corporation and the Innovation Network Corporation of Japan have agreed to acquire Seajacks International from Riverstone Holdings. The sale, which is expected to close at the end of April, is understood to be for around USD 850 million. Riverstone Holdings originally acquired Seajacks in January 2010 for circa USD 207 million. Seajacks has the self propelled jack-up installation vessels Kraken, Leviathan and also the Zaratan which is currently under construction. ©Copyright Braemar Seascope Offshore 2011

International

India Wind Study Reveals Greater Potential

A new assessment of the potential for wind energy in India has indicated that the country could have up to 30 times greater capacities than previously thought. The projects carried out by Lawrence Berkeley National Laboratory takes a variety of different factors into account that could dramatically alter the perception of the Indian renewables market. The study focuses on on-shore sites however there are also implications for offshore development and the renewables industry as a whole in India.

Ezion Vessel For Four-Year China Charter Ezion Holdings has secured a contract to provide a liftboat to support a four-year contract offshore China. The USD 65.7 million deal will see the vessel working in the Yellow Sea in the third quarter of 2013. It is understood the vessel, which is now under construction, will be working on a state-linked wind power project. Ezion Holdings subsidiary Teras Offshore has a series of offshore self-elevating liftboats including the Conquest 1-5.

US Streamlines Offshore Wind Applications A series of potential offshore wind farm sites in the Atlantic have moved significantly forward following an environmental review. Sites off Maryland, Virginia, New Jersey and Delaware have all progressed and there has been streamlining in the renewable energy leases. Legislation that would add a fee to bills to subsidise development of the Maryland project has also recently been passed. It is thought the Outer Continental Shelf can ultimately support around 1,000 MW of capacity.

Japan Plans Floating Turbine Project An experimental floating wind turbine project has been launched by the Japenese Government. The scheme, which will be undertaken by a consortium headed up by Marubeni, will see three floating wind turbines and a floating power sub-station planned for off the coast of Fukushima. Initially a 2MW floating turbine, a 66kV floating sub-station and cabling will be aimed to be put in place during 2012. Two further 7MW wind turbines could then be added in 2013 and 2015. ŠCopyright Braemar Seascope Offshore 2011

Subsea

Geoships Take Delivery of Loch Roag

Geoships has confirmed it has now taken delivery of the MPSV Loch Roag. The vessel is currently in Singapore where it is being marketed for potential work in Southeast Asia however it is possible that the vessel could depart the region for the North Sea if nothing is confirmed. The Loch Roag could potentially be available for charter in the North Sea from early April. The Loch Roag is an MT 6009 L MKII DP2 vessel equipped with a 50t crane. The vessel is being marketed for ROV, Diving and Gangway work.

Polar Prince Gets Xcite Work The Polar Prince has been awarded work for Xcite Energy on the Bentley field. The construction support vessel will be carrying out installation of a flexible line from the Rowan Norway rig to shuttle tankers. The Polar Prince is a multifunctional DP2 vessel equipped to carry out IRM, light construction and cable lay operations. The vessel has a 150t seabed crane, work class ROV, moonpool and 100t A-Frame. The Bentley workscope is to commence in April.

GSP Falcon Secures Pipelay Role Grup Servicii Petroliere (GSP) has been awarded a contract for pipelay work with Wintershall in the North Sea. The pipelay vessel GSP Falcon will be carrying out the installation of a 10-in 30km pipeline in the Dutch sector from around June. The GSP Falcon is a DP2 flexlay and jlay pipelay vessel capable of installing rigid pipelines, flexible flowlines and umbilicals. The vessel can carry out j-lay of up to 14-in diameter pipe, has two work class ROVs and accommodation for 145 personnel.

Skandi Bergen Heads to Australia The Australian Ministry of Defence has bought the offshore support vessel Skandi Bergen for humanitarian and disaster relief work. The vessel, which was bought for slightly under USD 130 million, may also undertake surveillance and apprehension of illegally operating vessels.

The Skandi Bergen is a sister ship to the ACV Ocean Protector (pictured) already with Australian customs force.

DOF has also ordered a new OSCV11 design vessel which is expected to be delivered in May 2013. ŠCopyright Braemar Seascope Offshore 2011

Subsea

Apache II & Orelia to Work at Golden Eagle

Nexen has awarded a USD 135 subsea construction contract on its Golden Eagle development to Technip. The programme, which will include export, production, gas lift and water injection lines as well as control umbilicals is expected to be carried out by the Apache II pipelay vessel and the DSV Orelia. The workscope is due to be completed during the second or third quarter of 2014.

Gulmar Condor to Remain in West Africa Subsea 7 has chartered the DP2 diving and construction vessel Gulmar Condor for work in Nigeria. The vessel has recently completed a three-month pipe-laying and air diving project for Perenco in Gabon. The vessel will be onhire until around early April working on the MPN Satellite Project and the contract is also understood to include further options beyond the 50 day initial period.

Technip Keep North Sea Giant to End 2013 The large offshore construction support vessel North Sea Giant has had its current contract with Technip Norge AS extended until around the end of 2013. The vessel will be working on flex-lay duties at the Goliat project in the Barents Sea. Technip still hold options on the vessel for 2014 and 2015. The North Sea Giant is equipped with a 400t offshore crane, DP3 and a deck area of around 2,900 square metres. It is capable of carrying out cable lay, pipelay, dredging and ROV support duties.

Subsea Market Summary Latest 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: aberdeen@seascope.co.uk

ŠCopyright Braemar Seascope Offshore 2011

AHTS Dayrates

Average North Sea Spot AHTS Rates 2011 2011--2012

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SPECS BOX

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

£140,000

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SPECS BOX

£40,000

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Average North Sea Spot PSV Rates 2004 2004--2012

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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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