BRAEMAR SEASCOPE OFFSHORE

MONTHLY MAGAZINE

April/May 2012 ISSUE: 53

©Braemar Seascope Offshore

MARKET NEWS &

ANALYSIS

VESSEL DAYRATE

CHARTS

RIG NEWS

Welcome to the latest edition of the

Braemar Seascope Offshore North Sea

Vessel Report. We are now seeing a

pause in the market as rig utilisation has

tightened but vessel rates have re-

mained relatively stable due to an immi-

nent batch of newbuilds and the availa-

bility of sublets. Surprisingly, the spot

market has slipped away a touch and

we have noted a lack of term require-

ments and a high volume of speculative

tonnage due to deliver in coming

months.

Around eight new PSVs are expected to

join the spot market in the coming

weeks and there will also be AHTS ves-

sels returning from term work and boats

being reactivated following lay-up.

In other news, Simek, is currently carry-

ing out work to install a hangar and

work boat daughter craft and NOFO

equipment on the Havyard 832 CD Stril

Mariner. Meanwhile, Total is continuing

with its efforts to stem the gas leak at

the Elgin field.

Average dayrates for spot AHTS fixtures

in April were GBP 39,722 and GBP

30,900 for large and medium vessels

respectively. Meanwhile, PSV rates

were GBP 19,585 and GBP 15,827. How-

ever these figures could dip in the com-

ing weeks.

Sean Bate

Market Analysis Manager

research@seascope.co.uk

Click Here to go to

Online Version

Subsea

Market

Latest

For the latest on the subsea con-struction and sur-vey vessel availabili-ties please contact us for a copy of our Subsea Vessel Mar-ket Summary. We are constantly mon-itoring the require-ments, fixtures and availability of the North Sea fleet. For more information please email us.

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T here are a series of newbuild vessels poised to

deliver on the North Sea market in the coming

weeks. In total there are eight PSVs set to de-

liver between now and the middle of July. In

addition, the Ocean Scout, which has been in lay-up

since the last quarter of 2011, is set to rejoin the North

Sea spot market before the end of May. The UT-706

designed vessel was built in 1976 and has a deck space

of around 550 square metres.

The newbuild vessels include two STX PSV 09 designed

vessels—the Brage Trader and the Troms Sirius. The

Brage Trader is due to arrive in Aberdeen before the

middle of May and will be available for charter until

around the beginning of June when she is expected to

undertake term work. There are also a pair of STX O8

CD vessels expected by the middle of June. The Viking

Fighter and the Far Scotsman will both have DP2 and

deck areas of around 810 square metres. In addition,

there will be the UT-755L FD Incomparable and the

large vessels Vestland Mistral and Island Crusader

which will have deck areas of 1,018 and 1,000 square

metres respectively and are due in late June and July.

The Havyard 832L designed Torborg is the final vessel

expected before the end of July. The DP2 boat will have

a deck of just over 900 square metres and is currently

expected by mid-July.

Meanwhile, the AHTS Far Sabre is expected to arrive

back in the North Sea by the middle of May. The UT-

712L vessel is en-route to Aberdeen from Brazil. The

vessel was chartered on a term contract with Shell Bra-

zil last year and it had continued to trade on the Brazili-

an spot market on conclusion of the period work.

Far Sabre

Built: Aker Yards Brevik

Bollard Pull: 178t

BHP: 15,900

Clear Deck: 540 square metres

DP: 2

Fresh Water: 741m³

Fuel Oil: 1087m³

Mud: 538m³

Accom: 28

Click here for full spec

SPEC BOX

Far SabreFar SabreFar Sabre

New ArrivalsNew ArrivalsNew Arrivals

The Malaviya 20 is currently working on a three month plus six one month options charter with Enquest. Original-ly the Malaviya 19 was fixed for the work and the vessel commenced the contract before being sold to Eidesvik and renamed the Viking Nereus. The vessel is currently undergoing in-house work before joining the North Sea spot market.

There are seven outstanding long-term requirements 1 x PSV/Talisman /6-9 months / comm June 2012 1 x PSV/Shell UK/ 5 yr + 5 x 1 yr opt / comm Jan-Mar 2013 TBC PSV/Statoil/3 or 6 years + 3 x 1 yr opts / 2013-2014 1 x PSV/MLS/Total N / 4 yrs + 4 x 1 yr opt / comm 2014 1 x PSV /ERRV / Leiv Eriksson Consortium / 15 wells /comm Dec 2012 Jan 2013 2-3 AHTS / Exxon Canada / 2 yrs + 3 x 1 yrs / 2012-2013 1 x AHTS Chevron Canada / 150-180 days / comm July

Heerema has fixed the medium sized PSV Rem Provider for two months firm. The UT-755 LC designed vessel will be carrying out . The vessel is continuing to trade on the North Sea spot market until it commences the workscope around July. The DP2 vessel has a deck area of around 688 square metres.

There are five outstanding medium-term requirements: 1 x PSV / Shell UK / 2 months / comm 1st June 1 x AHTS / Centrica / 3-5 wells / comm 1st June 1 x PSV / Senergy / 1 well / comm Mid June 1 x PSV / ADTI / 1 well / comm June 1 x PSV / Polarcus / 3 months + opt / comm July Polarcus is a Seismic Vessel Owner - further details can be found by clicking here.

Medium-Term Requirements

Long-Term Requirements

Heerema Charter for Rem Provider

Enquest Takes on Malaviya 20 & 19 Sold

©Copyright Braemar Seascope Offshore 2011

CharteringCharteringChartering

The medium PSV Power Express has been fixed on a five month charter with Peterson SBS. The Dutch-flagged 2006-built vessel has a deck area of around 663 square metres and is expected to be used in a pool sup-port role. Earlier in the year Peterson SBS also secured the services of the medium PSV Rem Star on an 18-month contract for a mix of walk to work and supply duties.

The large PSV Normand Skipper has been chartered for 100 days to MLS. The VS4220 designed vessel was fixed at a rate of around GBP 25,000. The Normand Skipper has a deck area of around 1,280 square metres, DP2 and ac-commodation for 23. The vessel has previously been working on long term contracts for Statoil since she was delivered in 2005. The vessel’s previous rate was under-stood to be around NOK 130,000.

Statoil has taken the AHTS vessels Island Vanguard and KL Sandefjord for four months plus four monthly options. The vessel’s, which have been chartered on All Duties workroles, were fixed at GBP 35,000 and GBP 36,900 re-spectively. The UT-787 CD Island Vanguard has already begun work with Statoil and is due back in October. The KL Sandefjord is currently carrying out the rig move of the West Alpha for BP and is expected to do prelay work for the Polar Pioneer before commencing with Statoil.

Nexen has taken the medium PSV Far Server on charter for three months firm plus one monthly option. The 2010-built vessel will be carrying out general pool support work. The vessel completed a year-long contract with ConocoPhillips earlier in the year. The Far Server is a Havyard 832 CD designed vessel with a deck area of around 799 square metres and DP2.

Far Server Fixed by Nexen

MLS Takes Normand Skipper for 100 Days

Power Express to Peterson SBS

©Copyright Braemar Seascope Offshore 2011

CharteringCharteringChartering

Statoil Charters AHTS Duo for 4 Months

The UT-705 designed PSV North Vanguard has secured a four month charter with Team. The vessel charterer also hold eight one-week options on the vessel after the firm period. The North Vanguard is a 1990-built vessel with a deck area of around 844 square metres and DP1. The ves-sel, which will be carrying out general pool support work, is understood to have been fixed for GBP 17,500.

Total and Elf Exploration UK have awarded a five-year contract to the large PSVs Normand Aurora and Havila Commander. The large Solstad vessel was chartered at a rate of around GBP 16,500 for the firm period although the contract also includes options to extend the contract by two one year options. EDT Offshore Egypt has also re-cently chartered the standby vessel Normand Draupne on a one-year firm plus one-year option contract from April this year.

Centrica has taken on the Far Grimshader for six months firm plus one six month option. The 1983-built UT-706L designed vessel is expected to be on charter until around October. The vessel has recently been working on the north Sea sport market for a variety of charterers includ-ing Maersk Oil, Peterson SBS, Asco and Gaz de France. The Far Grimshader has a deck area of around 780 square me-tres.

The UT-705 designed Highland Pride and VS-485 designed Solvik Supplier commenced minimum one year contacts during April supporting Talisman's increased drilling activ-ity with the Sedco 704 and Sedco 711 rigs. These addi-tions will augment their existing term fleet of three PSV's - namely the Grampian Talisman, SBS Tempest and the FS Aquarius.

Two Vessels for Talisman 1-Year Charters

5-Year Total Contract for Normand Aurora

Centrica Work for Far Grimshader

North Vanguard Fixed to Team

©Copyright Braemar Seascope Offshore 2012

CharteringCharteringChartering

Vestland Offshore are currently recruiting qualified crew for their newbuild vessels the Vestland Mistral and the Vestland Mira. The VS-485 designed Vestland Mistral is due to be delivered from the Hellesøy Verft shipyard in late June. The vessel will have DP2 and a deck area of around 1,000 square metres. The Vestland Mira is a Havyard 832 L which is currently expected to be complet-ed in October.

The newbuild STX PSV 09 L CD designed Troms Sirius is expected to join the North Sea spot market by around the end of May. The vessel, which will be equipped with DP2 and a deck area of around 1020 square metres, is current-ly charter free upon arrival on the market in Stavanger. The vessel is also equipped for Oil Rec and NOFO 2009. Troms also has a sister ship which is currently under con-struction that is due for delivery in March 2013.

Farstad’s latest newbuild PSV is set for a June delivery date. The PSV 08 CD designed vessel is currently under construction at the STX yard in Tomrefjord (Langsten). The Far Scotsman will have a deck area of around 810 square metres, DP2 and total capacity for 30 personnel. Farstad also has five further PSV 08 CD designed vessels: Far Skim-mer, Far Solitaire, Far Stella, Far Spica and Far Starling due out in September, October, February 2013, March 2013 and May 2013.

Fratelli D’Amato’s newbuild UT-755 XL vessel FD Incompa-rable is expected to be delivered in June. The vessel is a sister ship to the FD Indomitable, FD Honorable and FD Remarkable. The vessels, which have all been built at the Rosetti Marino yard in Italy, are equipped with deck areas of around 716 square metres, DP2 and Oil Rec. The FD Honorable is also currently working on the North Sea spot market and most recently carrying out a charter for Taqa.

FD Incomparable Delivers Mid June

Troms Sirius Due End of May

First of Farstad PSV 08 CD Newbuilds

Late June for Vestland Mistral

©Copyright Braemar Seascope Offshore 2011

NewbuildNewbuildNewbuild

The rig market in the North Sea contin-

ues to be strong with jack-up utilisation

being reported to have reached a three-

year high. At the end of April it was esti-

mated to have hit 97%. The Transocean

GSF Galaxy I was the only inactive unit

however it is currently undergoing reac-

tivation to commence a one-year char-

ter with Nexen.

On the Semi-submersible market utilisa-

tion is around 92% with three inactive

units; the Ocean Guardian, JW McLean

and Sedco 712. The Ocean Guardian is

being readied for a contract with Shell

from July although the other two are

presently stacked.

Meanwhile, Premier has signed a long-

term contract with Awilco that will see

the WilPhoenix chartered until the end

of February 2014 with options for an

additional 250 days that could see the

rig remain fixed until late in the fourth

quarter of 2012. The programme will

start in direct continuation of the cur-

rent contract with Premier.

In the Barents Sea, Rosneft and Statoil

have agreed to jointly explore offshore

fields in the Russian sections of the Bar-

ents Sea and Sea of Okhotsk. The deal

has also seen the partner announce

intention to place orders with Russian

shipyards for the construction of ice-

class vessels and drilling platforms.

Total

Plans

Elgin fix

Total has announced that

it has reached an im-

portant stage in stopping

the leak on the G4 well at

the Elgin complex. The

West Phoenix rig has

moved into the exclusion

zone to act as the support

vessel for pumping heavy

mud in to the well. In addi-

tion to this, drilling of the

fist back-up relief well by

the Sedco 714 is still pro-

gressing according to To-

tal’s plan. Further details

here and a video can be

found on the next page.

Norway UK/Irl Denmark Netherlands Stacked without future contract

Stacked with future contract Total

Drillship 1 1 2

Jackup 8 16 5 6 1 3 39

Semi-Sub 21 16 2 3 42

Total 30 33 5 6 3 6 83

ChartChart Rig Rig Rig

Rig Activity by Type and Country

Video of Total Planned Solution

for Elgin Gas Leak

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Oil Oil Oil

PricePrice BunkerBunkerBunker

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

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Bunker Price in Aberdeen 2011 to Present

Full details of the UK and Irish Standby Market are availa-ble in the Braemar Seascope Offshore Standby Market Summary. The next edition of the report, which is due out soon, contains an extensive commentary from our bro-kers who deal with the Standby market on a daily basis. There are also full fleet listings of Standby owners and an overview of the newbuild and fleet replacement pro-grammes. For further details email: research@seascope.co.uk

Talisman Energy has chartered the Vos Dee for 1 year to sup-port a drilling programme with the Sedco 711 in the Central North Sea from July. Meanwhile, Nexen has recently taken delivery of the Vos Ranger for support of a nine-month drill-ing programme with the GSF Arctic II. Nexen already has a further three Vroon operated vessels on long-term charter namely the Vos Don, Vos Lismore and the Vos Victory.

Charterers are increasingly fixing modern/newbuild tonnage at premium rates this is evidenced by the news that North Star now have commitments for all four IMT950 units deliver-ing from Balenciaga in 2012. The Grampian Don & Grampian Dee are already on charter to BG & SPD respectively and the last two (Grampian Discovery/Grampian Defiance) are fixed from delivery with Shell UK & Dong. The Grampian Defiance will support DONG's one well (circa 90 days) programme West of Shetlands with the West Navigator from September.

In the South North Sea, the 1967 built Putford Sky has re-cently been released by BP on completion of a multi-year contract supporting the Amethyst field. The vessel has been withdrawn from service with BP chartering the 2007 built Vos Tracker for a minimum of two years as a replacement. Senergy has recently taken delivery of the Vos Patrol to sup-port a one well (circa 75 days) programme on Dana’s Platy-pus field with the Ensco 80. Petrofac has also confirmed the charter of the Vos Raasay for 5 months on ATP’s Kilmar field.

Southern North Sea Chartering

Vos Dee Fixed for 1-Year to Talisman

Modern Newbuilds in Demand

Standby Market Summary

©Copyright Braemar Seascope Offshore 2011

Standby/ERRVStandby/ERRVStandby/ERRV

For the latest on the subsea construction and survey ves-sel 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

Talisman has contracted the two new subsea construction support vessels Reef Larissa and Reef Despina. The con-tract covers 230 working days in total for both vessels plus additional options. Reef Despina and Reef Larissa were chartered last November from Neptune Offshore AS for five years. The vessels have an LOA of 98.6m, accommo-dation for 75 personnel and 150t offshore cranes. The vessels also have 844 square metre decks, two work class ROVs and a moonpool.

Ocean Installer has been awarded a contract by ExxonMo-bil Exploration and Production Norway AS (EEPNAS) for survey and intervention work at the Balder field. The work will be carried out in mid May by the chartered vessel Normand Clipper. The Normand Clipper is a DP2 subsea construction vessel with two permanently installed work-class ROVs. The vessel is also equipped with a VLS for in-stallation of flexible pipelines, umbilicals and risers.

The ex Rem Fortune which was sold to Marine Platforms has been renamed African Vision and has been undergo-ing work in Aberdeen ahead of a long-term contract with ChevronTexaco in Nigeria. Marine Platform is an indige-nous Nigerian Company offering Oil and Gas Services in-cluding completion, subsea services and vessel chartering.

African Vision Prepares for Nigeria Role

Reef Subsea Secures Talisman Work

Balder Field Charter for Normand Clipper

Subsea Market Summary Latest

©Copyright Braemar Seascope Offshore 2011

SubseaSubseaSubsea

For further details of the recent movements in the renew-ables market please see the latest edition of our Renewa-bles Report which can be viewed online by clicking here. If you would like to be included on the distribution list for this report please email research@seascope.co.uk . Our brokers are dealing with an increasing amount of work in the Renewables market, please feel free to get in touch with your requirements or to discuss the market in gen-eral.

Dutch floating accommodation provider C-Bed has ac-quired the M/S Julia from Irish Shipping Ltd Barry. The vessel, which will change its name to Wind Perfection, will become the third floating hotel in the company’s fleet. All the C-Bed ships are classed as traditional ro/pax ferries but have been rebuilt for offshore accommodation roles. The other vessels in the fleet are Wind Solution and Wind Ambition which are currently operating in the North Sea. The new vessel is expected to work for Siemens in 2013.

The Swiber Else-Marie has been carrying out work on the Walney Offshore Windfarm performing burial of infield and inter-array cables. The vessel has also been surveying mattress laid at a telephone cable crossing. Upon comple-tion of the workrole the Swiber Else-Marie will demobilise in Barrow and join the Ormonde Windfarm to carry out completion work on cable burials there.

The jack-up vessel Sea Jack is carrying out installation of foundation monopoles at the Teeside Offshore Windfarm. The vessel is being supported by the Leslay Hay and Alisa as well as the Sea Golf and Sea Beaver. The Teeside Off-shore Wind Farm will consist of 27 Siemens 2.3 MW tur-bines located around 1.5km off the coast of Redcar in Cleveland. Work at the site is expected to be completed by November.

Sea Jack Carrying Out Teeside Installation

C-Bed Extends Accommodation Fleet

Swiber Else-Marie at Walney Windfarm

Renewables Report

©Copyright Braemar Seascope Offshore 2011

RenewablesRenewablesRenewables

DayratesDayrates PSV PSV PSV

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DayratesDayrates AHTS AHTS AHTS Average North Sea Spot Average North Sea Spot Average North Sea Spot

AHTS Rates 2011/12AHTS Rates 2011/12AHTS Rates 2011/12

Average North Sea Spot Average North Sea Spot Average North Sea Spot

PSV Rates 2011/12PSV Rates 2011/12PSV Rates 2011/12

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DayratesDayrates AHTS AHTS AHTS

Average North Sea Spot Average North Sea Spot Average North Sea Spot

AHTS Rates 2004AHTS Rates 2004AHTS Rates 2004---201220122012

Average North Sea Spot Average North Sea Spot Average North Sea Spot

PSV Rates 2004PSV Rates 2004PSV Rates 2004---201220122012

Braemar Seascope Offshore is a division of

Braemar Shipping Services PLC, a leading

integrated provider of brokering and con-

sultancy services to the shipping industry.

At Braemar Seascope Offshore our aim is

to provide cost effective solutions to our

clients' offshore programmes.

Regular advances in technology mean our

work is a direct response to constantly

changing market needs.

From offices in London, Aberdeen and Sin-

gapore we specialise in the worldwide off-

shore market.

Our services include:

Spot and period chartering

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purchase

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Contact

Us 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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