BOURBON EMERGES FROM RESTRUCTURING AS SIEM NEARS DEAL - JANUARY 2021
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JANUARY 2021 BOURBON EMERGES FROM RESTRUCTURING AS SIEM NEARS DEAL
CONTENTS
3 OSV MARKET ROUND-UP ABOUT SEABROKERS GROUP
6 OSV AVAILABILITY, RATES & The Seabrokers Group was established in 1982. We
provide a unique and varied range of services to
UTILISATION - NORTH SEA clients. The Seabrokers Group has an experienced
workforce within Shipbroking, Real Estate,
7 MONTHLY OSV SPOT RATES - Facilities Management, Construction, Sea
Surveillance, Harbour Cranes and Safe Lifting
NORTH SEA Operations. Our head office is located in Stavanger,
but we also have offices in Aberdeen, Bergen and
Rio de Janeiro.
8 FEATURE VESSEL
The Seabrokers Group is different – and we are
9 OSV NEWBUILDINGS, CONVERSIONS, proud of this fact. Our information, experience and
knowledge provide us with the ability to perform
SALE & PURCHASE in our diverse business areas.
11 SUBSEA Seabrokers Chartering AS and Seabrokers Ltd are
certified by DNV GL in line with Management
System Standard ISO 9001:2015.
14 RENEWABLES
15 RIGS
16 CONUNDRUM CORNER
& DUTY PHONES
SHIPBROKING REAL ESTATE
SECURALIFT FACILITY MANAGEMENT
Production and Administration:
Seabrokers Ltd, Aberdeen SEA SURVEILLANCE FOUNDATIONS
For your free copy of
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© Seabrokers Group 2021 www.seabrokers-group.com
OSV MARKET ROUND-UP
SLOW START FOR SIEM FOLLOWING BOURBON’S RESTRUCTURING
AHTS OWNERS Not long after Bourbon Maritime to EUR 150 million also provided
emerged from its financial (repayable over three years).
It has been an extremely slow recovery plan, Siem Offshore has
start to 2021 for North Sea AHTS announced that a deal may be in It appears that Siem Offshore
owners. This should be taken sight for its own restructuring. might be following in Bourbon’s
in context because it is by no wake, with a bondholders’
means unusual for January to be Bourbon’s refinancing process meeting scheduled for February
a quiet month. However, given was concluded in mid-December 5th. Siem is in the final stages of
what owners endured in 2020, with the owner’s debt burden negotiations with its European
this is nothing like the start they reduced by more than EUR 1.5 banks with a formal term sheet
had been hoping for in the New billion (USD 1.8 billion). The expected to be signed for the
Year. Only one fixture in the UK debt figure has been reduced restructuring of the Group’s
sector broke the GBP 10,000 from EUR 2.648 billion to EUR credit agreements imminently.
barrier (USD 13,705) in January, 1.065 billion, including EUR 228 This would entail the total
while in Norway (excluding million in bonds redeemable equitisation of around USD 268
call-off fixtures) there was only for shares. The conversion of a million of debt. Based on the
one charter with a rate of more significant proportion of debt 2020 year-end financial figures,
than NOK 130,000 (USD 15,185). into equity has significantly the existing Siem shares are only
Things should undoubtedly strengthened Bourbon’s balance expected to represent 4% of the
pick up with several idle rigs sheet, with new financing of up shares in the restructured entity.
scheduled to go on hire over the
next few months, particularly
in Norway. This should bring NORWAY AWARDS 61 PRODUCTION LICENCES
utilisation and rates up to a more
acceptable level for owners. The Norwegian Ministry of Of the 61 production licences
Petroleum and Energy has awarded from this latest round,
Charterers have been exposed awarded 61 production licences 34 are located in the North Sea,
to less favourable conditions on from the Awards in Predefined 24 are in the Norwegian Sea
the PSV spot market, with spells Areas (APA) 2020 process. A and three are in the Barents
of limited vessel availability in total of 30 different companies Sea. Twelve of the licences are
January. It wasn’t necessarily were awarded ownership stakes additional acreage to existing
a busier month than expected in licences. Applications had production licences.
but the extent of the layup been received from 33 different
momentum from 2020 has left companies. Despite the difficult Eighteen companies will take the
a restricted pool of supply. As trading conditions that have role of operator from the latest
the year progresses, PSV owners been experienced in the offshore awards. This includes Equinor
may collectively dictate their industry, such strong interest in (operator of 10), Aker BP (8),
own fate for the spot market. If new licences reflects positively Lundin (7), Var Energi (5), DNO
too many vessels are reactivated, on the future for the Norwegian (4), OKEA (4), Wintershall DEA
this may stunt rate momentum sector, with the response to this (4), Chrysaor (3), ConocoPhillips
but charterers may be exposed to round comparing favourably to (3), Neptune (3), OMV (3), INEOS
higher rates if there is collective last year. Last year, a total of 28 (1), Inpex (1), MOL (1), Norske
discipline from owners with companies were awarded stakes Shell (1), Petrolia NOCO (1), Sval
regards to laid up tonnage. in 69 licences from APA 2019. (1) and Wellesley (1).
SEABREEZE 3
OSV MARKET ROUND-UP
REMØY FIXES AWAY HALF THE PEARL BIDCO FLEET Hermit Galaxy (c/o O. Halland)
Remøy Shipping has managed to
secure term charters for half the
Pearl Bidco PSV fleet since the
start of the year.
After Hermitage Offshore filed
for Chapter 11 last year, the
company’s 10 PSVs ended up in
the hands of Hermitage’s former
lenders: DNB and SEB. The new
owning entity for the vessels,
Pearl Bidco AS, appointed
Remøy Shipping to manage the
vessels on its behalf.
Prior to the end of 2020, Remøy
managed to pick up a one-year
firm charter for the Hermit term charter. The Hermit respectively. In Norway, the
Power with Premier Oil UK. Guardian, Prosper and Protector Hermit Galaxy and Horizon
Since the turn of the year, the have all been fixed for one-year have been fixed to Chrysaor for
arrangement has gone from plus two one-year options a two-well plus one-well option
strength to strength with five contracts - with Peterson SNS, campaign to support the COSL
more of the PSVs fixed up on Ithaca and Dana Petroleum Innovator semisubmersible.
SHELL & BP FIX FIVE
In an active fixing spell in the Each charter has two one-year
UK, Shell and BP have secured options with start dates between
five PSVs on term charter. Shell February and May 2021. BP has
awarded one-year contracts to awarded three-year contracts
DOF and the Skandi Kvitsoy, the to two Vestland Offshore PSVs,
Fletcher Group for the Standard the Vestland Artemis and Solvik
Viking, and Simon Møkster Supplier. The charters will start
Skandi Kvitsoy (pictured c/o H. Otneim) Shipping with the Stril Odin. in May and August respectively.
SEVERAL MORE UK FIXTURES
It has become quite a common to Solstad Offshore for the Sea
occurrence for UK charterers Forth, while CNOOC has has
to fix up vessels on one-year done likewise for the North
firm charters with two further Promise from Tidewater. In
one-year options available. In other developments, the Far
addition to the contract awards Spica has had her charter with
mentioned above, EnQuest has Repsol Sinopec extended for at
awarded an equivalent deal least one more year. North Promise (pictured c/o S. Sinclair)
4 SEABREEZE
OSV MARKET ROUND-UP
NEPTUNE CHARTERS NORTH SEA TRIO Siddis Mariner (pictured c/o G. Vinnes)
Another charterer that has been
busy is Neptune Energy, with
three long-term PSV contracts
awarded in December.
In the UK sector, Solstad picked
up a four-well firm contract for
the Normand Surfer to support
Neptune’s development drilling
campaign at the Seagull field
in the central North Sea. The
Valaris JU-248 has just gone
on hire to Neptune, with the
four firm wells estimated to
take around 550 days to drill.
There are two further one-well
options available for both the rig
contract and the Normand Surfer picked up a ten-month contract contract for the Stril Orion. The
contract. extension for the Siddis Mariner; Orion is scheduled to go on hire
the vessel is now committed in February. Both vessels will be
In the Norwegian sector, two until at least October 2021. providing support for Neptune’s
PSVs have been tied up on term Meanwhile, Simon Møkster drilling campaign with the
contracts. O.H. Meling & Co Shipping secured a 14-month Deepsea Yantai.
PSV DUO TO SUPPORT DNO
Staying in the Norwegian sector, North Pomor and Stril Luna for
Well Expertise has chartered a two firm wells plus a one-well
pair of PSVs to provide support option from March. Elsewhere,
for DNO’s drilling programme Eidesvik PSV Viking Prince will
with the Borgland Dolphin be going on hire to support Aker
semisubmersible. Tidewater BP’s drilling campaign with the
and Simon Møkster Shipping Deepsea Stavanger for up to 120
Stril Luna (c/o O. Halland) were awarded contracts for the days from April.
BRAZIL FRAME AGREEMENT FOR SOLSTAD
Outside of the North Sea, the first call-off has been enacted
Solstad Offshore has entered for the Normand Swift PSV to
into a Frame Agreement with go on hire to Exxon for three
ExxonMobil to provide supply months; the vessel commenced
vessels in support of Exxon’s operations in December. Exxon
exploration activities offshore has just spudded its Opal-1
Brazil. The agreement is for a wildcat in the Campos Basin
firm period of three years, and with the West Saturn drillship.
SEABREEZE 5
OSV RATES & UTILISATION
JANUARY 2021 - DAILY NORTH SEA OSV AVAILABILITY
PSV 2021 PSV 2020 AHTS 2021 AHTS 2020
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
RATES & UTILISATION
NORTH SEA SPOT AVERAGE UTILISATION JANUARY 2021
TYPE JAN 2021 DEC 2020 NOV 2020 OCT 2020 SEP 2020 AUG 2020
MED PSV 66% 69% 72% 67% 84% 71%
LARGE PSV 77% 66% 65% 76% 82% 61%
MED AHTS 39% 45% 40% 39% 72% 56%
LARGE AHTS 40% 58% 65% 53% 74% 63%
NORTH SEA AVERAGE RATES JANUARY 2021
AVERAGE RATE AVERAGE RATE
CATEGORY % CHANGE MINIMUM MAXIMUM
JAN 2021 JAN 2020
SUPPLY DUTIES PSVS < 900M2 £6,774 £5,257 +28.86% £4,304 £14,500
SUPPLY DUTIES PSVS > 900M2 £5,818 £6,810 -14.57% £2,500 £12,000
AHTS DUTIES AHTS < 22,000 BHP £8,656 £7,959 +8.76% £5,595 £11,500
AHTS DUTIES AHTS > 22,000 BHP £8,442 £9,203 -8.27% £5,165 £24,102
SPOT MARKET ARRIVALS & DEPARTURES: MID-DEC 2020 TO JAN 2021
ARRIVALS - NORTH SEA SPOT DEPARTURES - NORTH SEA SPOT
ATLANTIC KESTREL EX CANADA CBO SUPPORTER SOUTH AMERICA
ISLAND VICTORY EX US GULF
NORMAND DROTT EX SOUTH AFRICA
NORMAND PROSPER EX SOUTH AFRICA
* Vessels arriving in or departing from the North Sea term/layup market are not included here.
6 SEABREEZE
NORTH SEA AVERAGE SPOT RATES
£40,000
£10,000
PSVsAll
< 900m²
Cargo Runs
£30,000
£7,500
£20,000
£5,000
£10,000
£2,500
£-
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2020 £5,257 £6,308 £8,863 £3,485 £3,751 £4,485 £4,650 £7,529 £8,872 £6,651 £3,854 £7,618
2021 £6,774 £- £- £- £- £- £- £- £- £- £- £-
£15,000
£10,000
PSVs
PSVs < 900M²
900M2
> 900m²
£7,500
£10,000
£5,000
£5,000
£2,500
£-
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2020 £6,810 £8,014 £7,132 £3,733 £4,370 £4,769 £4,310 £4,175 £9,651 £6,664 £4,890 £5,542
2021 £5,818 £- £- £- £- £- £- £- £- £- £- £-
£35,000
£40,000
AHTS < 22,000 bhp
£30,000
PSVs > 900M²
900M2
£30,000
£25,000
£20,000
£20,000
£15,000
£10,000
£10,000
£5,000
£-
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2020 £7,959 £18,562 £25,486 £7,087 £10,745 £16,898 £16,961 £32,250 £23,271 £12,042 £9,100 £12,526
2021 £8,656 £- £- £- £- £- £- £- £- £- £- £-
£40,000
£35,000
AHTS > 22,000 bhp
Rig Moves
£30,000
£30,000
£25,000
£20,000
£20,000
£15,000
£10,000
£10,000
£5,000
£-
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2020 £9,203 £16,901 £21,268 £8,141 £13,100 £17,197 £18,132 £32,256 £29,683 £9,585 £13,013 £11,762
2021 £8,442 £- £- £- £- £- £- £- £- £- £- £-
£10,000
£20,000
Average Day Rates
Average
2021Day
v 2020
Rates To Month (June 2013)
£8,000
£15,000
£6,000
£10,000
£4,000
£5,000
£2,000
£-
PSVs < 900m² PSVs > 900m² AHTS < 22,000 bhp AHTS > 22,000 bhp
2020 £5,850
£5,257 £6,064
£6,810 £15,599
£7,959 £14,760
£9,203
2021 £6,774
£- £5,818
£- £8,656
£- £8,442
£-
SEABREEZE 7
FEATURE VESSEL
REM ENERGY
The walk-to-work market continues to attract vessel owners with
Rem Offshore acquiring a newbuild PSV to convert into an SOV
for the offshore wind market.
The vessel will be named the zero emission operations with
Rem Energy, and Rem Offshore fuel cells and a 12,000 kWh
has already secured a five-year battery pack.
contract for her with Siemens
Gamesa Renewable Energy for The vessel will also feature a
maintenance on various wind weather deck and an automated Rem Energy Specs:
farms in the German sector. warehouse below deck for
spare parts and goods. SMST Builder: Green Yard Kleven
The Green Yard Kleven shipyard will deliver an access and cargo Design: Havyard 833 WE
in Norway will convert the tower with elevator, a motion Delivery: 2021
Havyard 833 WE vessel into an compensated gangway and a 3D LOA: 89.7m
SOV. She should be ready during motion compensated crane. Beam: 19.6m
the fourth quarter of 2021. Accommodation: 99 persons
Rem Inspector will perform Gangway: SMST
The Rem Energy will be as a frontrunner prior to the Crane: 3 x cranes including
equipped with accommodation Rem Energy’s delivery. Having SMST 3D motion compensated
for 99 persons, an SMST walk- worked on the Global Tech 1 Prepared for: Zero emission
to-work gangway and three wind farm for two seasons, she operations with fuel cells and a
cranes. She will be prepared for will now return for most of 2021. 12,000 kWh battery pack.
8 SEABREEZE
NEWBUILDS, CONVERSIONS, S&P
REMONTOWA DELIVERS COEY VIKING
Newbuild PSV Coey Viking has VS4411 DF design, the Coey
been delivered by Remontowa Viking can be fuelled either
Shipbuilding in Gdansk, Poland. by LNG or MGO. She is also
The Coey Viking is the first of equipped with a battery pack
two sister vessels that were solution. The Coey Viking is
acquired by Viking Supply Ships now being mobilised to Norway,
in October 2019 in partnership where Viking Supply Ships has
with funds managed by Borealis already picked up a term charter
Maritime. Built to Wärtsilä’s for her with Wintershall Dea.
BOURBON FLEET TRIMMED
Four former Bourbon Offshore 280,000-400,000 per unit.
PSVs have eventually been sold Several former Bourbon vessels
at auction in China, reportedly have changed hands recently,
at the sixth time of asking after with other notable transactions
a series of price reductions. The including the sale of the Bourbon
Bourbon Liberty 101, 106, 107 Pearl to Oceanpact, the Bourbon
and 109 (all 2008-built) have Emerald to Alliance LLC Russia
been sold to undisclosed buyers and the Bourbon Liberty 122 to
with prices ranging from USD MSH Ship Management. Bourbon Liberty 101
WILSON BERING FOLLOWS BALTIC TO ASIA
PSV Wilson Bering is following The Bering is a 25 year-old
the Wilson Baltic from the North PSV, built to the UT 745 design.
Sea to Asia. It was reported in She was previously owned by
late 2020 that Wilson Offshore Maersk Supply Service as the
had sold the Wilson Baltic to FM Maersk Nascopie, and has also
Corporation China Ltd, and it previously been known as the
has since been confirmed that a Odin Express. The vessel is
similar transaction took place for currently being mobilised to east
Wilson Bering (pictured c/o C. Kohne) the Wilson Bering. Asia via the Suez Canal.
ZVEZDA LAUNCHES FIRST OF FOUR ICE-CLASS MPSVS
The Zvezda Shipbuilding drilling platforms, as well as
Complex in eastern Russia the provision of icebreaking
has launched the first of four and towage assistance. Named
ice-class supply vessels that it as Katerina Velikaya, this is
is building for Rosnefteflot JSC. the lead ship of the IBSV10022
The 106m multipurpose vessels Icebreaker 7 project. This is a
have been designed to undertake pilot project for Zvezda Marine
various roles including the Technologies, a joint venture
transport of supplies to offshore between Rosneft and Damen.
SEABREEZE 9
NEWBUILDS, CONVERSIONS, S&P
DOF DIVESTS VESSEL DUO
DOF has offloaded two more she will soon be relocated to
vessels recently. Firstly, the South America from Norway.
24,000 bhp AHTS vessel Skandi Separately, DOF has also sold the
Bergen was sold to Grupo CBO 2002-built PSV Skandi Buchan
in Brazil. The 11 year-old unit, to undisclosed international
built to the UT 731 CD design, buyers. DOF has registered a
has been renamed as the CBO gain of around NOK 16 million
Endeavour; it is expected that (USD 1.9 million) from this sale. Skandi Bergen (c/o L. Johannes)
SEVNOR SNAGS ATLANTIC HAWK
Atlantic Towing has sold its 21 did spend a period in the North
year-old AHTS vessel Atlantic Sea early in her working life.
Hawk to Sevnor. The UT 722 Her most recent long-term
unit has been renamed as the commitment with Husky
Sayan Jarl. Energy in eastern Canada ended
The vessel has spent most of in November 2020. Sevnor is
her time in service working in expected to relocate the Sayan
Atlantic Hawk (pictured c/o W. Pretty) eastern Canada although she Jarl to Russia.
INDIAN OWNERS FOR VENTURE SEA
Following the news that Secunda Sea, a 1998-built vessel, has
had sold its AHTS vessel Venture been renamed as the Jarvis.
Sea, it has since emerged that She departed Canada earlier in
the new owners are India-based January, and has made a stop in
Virgo Ships Limited, with the Gibraltar before she is expected
vessel to be managed by Hermes to continue her onward journey
Maritime Services. The Venture to India.
SWIRE SELLS VIGOUR
Swire Pacific Offshore has sold been relocated to Vietnam. The
its AHTS vessel Pacific Vigour TC Vigour is a a 66m vessel with
to new Vietnamese owners. a bollard pull of 120t. While
The 2010-built vessel has been under Swire ownership, she
acquired by Tan Cang Offshore spent time working in Southeast
Services and renamed as the TC Asia, Australia, the Indian Ocean
Vigour. The vessel has already and the Middle East.
RECENT DELIVERIES OF NEWBUILD OSVS
NAME TYPE/DESIGN OWNER/ MANAGER COMMITMENT
COEY VIKING WÄRTSILÄ VS 4411 DF PSV VIKING SUPPLY SHIPS NORTHWEST EUROPE
10 SEABREEZESUBSEA
SUBSEA MARKET ROUND-UP
DNV GL has released a new Meanwhile, only 21% expect expecting more demergers,
report entitled “Turmoil and to increase investment in oil divestments and spin-offs.
Transformation: the outlook for projects in 2021 as the sector In the last edition of Seabreeze,
the oil and gas industry in 2021.” increasingly comes to terms we highlighted a stark report
The report concludes that the oil with the notion that the world’s from Rystad Energy highlighting
and gas industry is expected to demand for oil has peaked or the risks from a sustained
significantly boost investment in will peak in the short to medium lack of oil & gas exploration in
the energy systems of the future term. Expectations for rising recent years. Unless this trend
as companies seek to transform. natural gas investment remain is reversed, we may be at risk
DNV GL highlights that a steady at 37%. of potentially running out of
record 66% of senior oil and gas The report has highlighted sufficient oil supplies to meet
professionals report that their that priorities are changing for our global demand through
organisation is actively adapting investors, and the oil and gas 2050. Rystad stated that at least
to a less carbon-intensive energy professionals who completed USD 3 trillion will be required to
mix in 2021, up from 44% in the survey expect that shifts in ensure sufficient supplies for the
2018. According to the survey, investment will lead to a wider next 30 years.
57% plan to increase investment reshaping of the industry. Most You can certainly feel that the
in renewables, up from 44% last respondents expect increased tides are turning as more vessel
year, while nearly half (48%) consolidation in the year ahead owners announce conversions to
expect to increase investment which could involve asset cleaner energy or modify their
in green or decarbonised gas. and business sales, with 63% business plans to suit.
REACH LAUNCHES NEW SUBSEA MODEL
unmanned surface vehicles ROV for survey and inspection
(USVs) that will be dedicated tasks, as well as hull-mounted
to survey, inspection and light survey sensors. The current
repair projects. The company design is based on a redundant
aims to have its first two USVs hybrid electric configuration
ready for the market in 2022, and will be capable of 30 days
with the aim of providing a full or more endurance for most
Reach Subsea has announced portfolio of subsea services from operations. Reach said the
a new subsea service model to a low-emission, cost-effective USVs would offer more than
embrace and drive forward the remote and autonomous fleet a 90% reduction in CO2 and
step change we are seeing in the by 2025. The USVs will feature NOx emissions compared to
oil and gas industry. The new both real-time operator control traditional survey operations, as
model will future-proof and offer and autonomous operations, as well as “significant reductions”
a sustainable solution for subsea well as hybrid modes blending in the cost of subsea survey and
services. Named Reach Remote, remote and semi-autonomous inspection services.
the project is a cooperation with control. Financing of the construction
industrial partners Kongsberg The company is targeting both part of Reach Remote is being
and Massterly, with support oil & gas and offshore wind evaluated and may involve new
from Innovation Norway. markets with the service. The equity, new debt, industrial
The first stage of Reach Remote USVs will be 25m in length and partnerships or a combination of
will see the introduction of will have a semi-autonomous these factors.
SEABREEZE 11SUBSEA BOSKALIS ACQUIRES ADDITIONAL DSVS Boskalis has acquired all the side the 2011-built sister vessels which was not part of the shares of Rever Offshore’s Boka Atlantis and Boka da Vinci. Boskalis acquisition and remains subsea services business. This In temrs of fleet size, this makes cold stacked under Rever’s will see Boskalis add two diving Boskalis the dominant player control. Boskalis, Subsea 7 and support vessels to its fleet: the in the region as things stand TechnipFMC all have additional 1999-built Rever Polaris which today, with Subsea 7 operating SAT DSVs operating outside of is fully owned, and the chartered three vessels in the North Sea the North Sea. ST-256L-designed Rever Topaz. and TechnipFMC operating two. Focusing on the North Sea fleet The only other purpose-built of saturation dive vessels, this sat DSV in the region is Rever’s will double Boskalis’ fleet along- 2005-built Rever Sapphire, ENERGEAN MOVES AHEAD WITH FIDS Energean has awarded an gean expects first gas from NEA/ away. Production from the first engineering, procurement, NI during the second quarter of Karish North well is expected commissioning and installation 2022. Total capital expenditure to be achieved in the second contract to TechnipFMC will be around USD 235 million, half of 2023 with an estimated following its announcement of with the majority expected to be production of around 3 bcm/yr a final investment decision for incurred in 2022. or 300 mmscf/d. The operator the North El Amirya (NEA) and Energean has also mad a final will also carry out exploration North Idku (NI) tieback project investment decision for the and appraisal drilling of up to offshore Egypt. Karish North gas development five wells by early 2022. The NEA concession consists of offshore Israel. The Karish the Yazzi and Python gas fields, North development will be tied while the NI project contains back to the Energean Power four discovered gas fields. Ener- FPSO, which is located 5.4km SOLSTAD OFF TO A GOOD START Since the beginning of the year, 90-day cable lay contract, with UK-based oil company starting Solstad Offshore has secured options available through the during the second half of May. four contract awards for three of remainder of 2021. The charter In addition to a previously its subsea construction vessels. will start in April/May. awarded contract for Ørsted to The VS 4220-designed OCV DeepOcean has chartered the utilise the Jarstein on a four- Normand Energy has been MT6022L-designed Normand month contract for operations awarded a five-month contract Jarstein to work in West Africa. at the Hornsea Two wind farm to support a client, understood The two-month contract started from the third quarter of 2021, to be DEME, in the Pacific in January, with DeepOcean the vessel will now be kept Ocean. The five-month period holding an option that could active for most of the year. In includes mobilisation and extend the charter by a further the latter stages of 2020, Bahia demobilisation, with the charter month. Additionally, the Grande also exercised options on starting in February 2021. 2014-built Normand Jarstein the Normand Commander that Meanwhile, the 2009-built OCV has been awarded a two-month will keep the IMR vessel busy in Far Samson was awarded a contract with an undisclosed Argentina until October 2026. 12 SEABREEZE
SUBSEA
HAVILA PHOENIX RISES AGAIN WITH NEXANS
Havila Shipping has entered into Phoenix in December 2020. The 2009-built vessel had been
a charter contract with Nexans The settlement agreement with DeepOcean since 2013
Norway for the subsea vessel includes both cash settlement and was due to remain with the
Havila Phoenix. The contract and acquisition of ownership of contractor until May 2023 with
has a firm duration of 90 days the A-frame, trencher and ROVs further options.
with 90 further days of options. previously owned by DeepOcean
The charter will begin during onboard the vessel.
April. Meanwhile, Havila and Havila Shipping terminated
DeepOcean have reached a its charter of the OCV Havila
mutual agreement following Phoenix from DeepOcean in
the contract termination of the December due to a breach of
Havyard 858-designed Havila contractual obligations.
JSD 600 LAUNCHED
215.9m and a 49m beam. She EPCI projects. She will also have
has been towed to Changxing accommodation for 399 persons.
for the installation of J-lay and In 2018, Petrofac sold the JSD
S-lay pipelay systems and a 6000 to ZPMC for USD 190
5,000-tonne crane. Sea trials million. Delivery of the deep
and commissioning for the JSD water multi-purpose vessel was
6000 will also take place at initially scheduled for 2017 but
At the end of 2020, the Shanghai Changxing. Petrofac terminated its contract
Zhenhua Heavy Industries Co. The newbuild vessel will be able with ZPMC in October 2015,
(ZPMC) in China launched the to install pipelines of 6 to 60 citing performance issues.
Ulstein-designed JSD 6000 deep inches diameter in maximum Nevertheless, Petrofac continues
water heavy lift pipelay vessel at water depths of 3,000m, as well to provide technical support for
its Qidong facility. as servicing deepwater SURF the construction of the vessel,
The DP3 vessel has a length of projects and shallow water expected to complete in 2022.
SUBSEA 7 AWARDED NORTHERN LIGHTS CONTRACT
Equinor has selected Subsea 7 pipelines will take plae at Subsea is part of Norway’s full-scale
for the engineering, fabrication 7’s spoolbase at Vigra, Norway. carbon capture and storage
and installation of a 100km Meanwhile, Aibel was awarded project Langskip, which consists
CO2 pipeline for the Northern the EPCI contract covering the of the transportation, receipt
Lights project in Norway. The subsea control system at the and permanent storage of CO2
pipeline will run from Øygarden Oseberg A platform. The scope in a North Sea reservoir. The
to the CO2 storage complex, of work includes all necessary CO2 receiving terminal will be
and Subsea 7 will also install the upgrades at Oseberg A to pull located in Øygarden in Western
umbilicals and undertake the in and operate the umbilical Norway.
tie-in and pre-commissioning system that will connect the
activities. Offshore operations platform and the Northern
will be executed in 2022 and Lights subsea facilities.
2023 while fabrication of the The Northern Lights project
SEABREEZE 13RENEWABLES
W2W CAMPAIGN FOR REM TRADER
Continuing with Rem Offshore’s offshore France. The Rem
success in securing a long-term Trader will start its campaign
contract for the Rem Energy in March/April this year and
with Siemens (see p.8), the will be firmly committed until
owner has also secured a new at least October with further
contract for the Rem Trader PSV options available to extend into
to be utilised in 2021 and 2022 in November. The 2022 campaign
the walk-to-work market. will begin in February with a
Van Oord will utilise the vessel firm commitment until October
at the Saint Brieuc wind farm with further options available. Rem Trader (pictured c/o D. Dodds)
ACERGY VIKING TO REMAIN IN WIND SECTOR
Siemens Gamesa Renewable Acergy Viking had operated in
Energy. The contract will the North Sea and West Africa
start in direct continuation of for various oil and gas operators.
the vessel’s current contract, Originally built to service the
committing her until January oil and gas market as an IMR
2027. The Acergy Viking has vessel, by the time this contract
been working for Siemens since ends in early 2027 the vessel will
Eidesvik’s 2007-built Acergy August 2016. Prior to starting have spent more of her life in the
Viking has been awarded a her initial contract in the renewables market than in the
multi-year time charter with renewables market in 2016, the oil and gas sector.
ESVAGT SCHELDE BEGINS BORSSELE WORK
Havyard delivered the newbuild units have a length of 70.5m and series will be delivered later in
SOV Esvagt Schelde to Esvagt they will all be equipped with an 2021. They will be operating
in mid-December. The vessel SMST walk-to-work gangway at the Borssele 3-4 wind farms
has now commenced a term and accommodation for 60 offshore the Netherlands, at
contract servicing MHI Vestas’ persons. Northwester 2 offshore Belgium,
Borssele 3 and 4 wind project The hulls of the three vessels and at Triton Knoll and Moray
offshore the Netherlands. are being built at the Cemre East, both offshore the UK. In
The Havyard 831L-designed Shipyard in Turkey before they total they will contribute to
Esvagt Schelde is the first in are transported to Norway to delivering more than 2,500 MW
a series of three SOVs under be completed by Havyard. The of green energy from 2021 up to
construction at the yard. The second and third vessels in the fifteen years onwards.
DESPINA AWARDED FUGRO CHARTER
Golden Energy Offshore has at various North Sea projects. the Dutch sector undertaking
been awarded a 150-day plus The vast majority of the work geotechnical site investigations
options contract with Fugro for under the deal will be at offshore at a Dutch wind farm. The
its SX 130-designed IMR vessel wind farms. The 2011-built unit contract includes several months
Despina. The vessel will be used has already carried out work in of options.
14 SEABREEZERIGS
OIL PRICE VS CONTRACTED RIG UTILISATION
100% $75
INACTIVE RIGS NORTHWEST EUROPE
NAME TYPE STATUS
$70 BIDEFORD DOLPHIN SS WARM STACK
90% $65
$63.60 $60 BOLETTE DOLPHIN DS COLD STACK
80% $55
$55.00 $55.23 BORGLAND DOLPHIN SS WARM STACK
$50
$50.29
$45 COSLINNOVATOR SS HOT STACK
70%
62.9% $42.81 $44.26 $43.23 $40
60.2% 61.6% $39.93 $41.09 $40.47 COSLPIONEER SS WARM STACK
56.2% $35
60%
$32.98 $31.02
54.3% 54.3% $30 DEEPSEA ABERDEEN SS HOT STACK
51.6% 50.7% 51.1% 50.0%
49.2% 48.3% $25
50% 53.2% 53.5% $23.34 53.7% $20 ISLAND INNOVATOR SS WARM STACK
50.7%
$15
LEIV EIRIKSSON SS COLD STACK
40% 42.4% 42.5% $10
40.7% 40.8% 39.3% 40.8%
38.0% 38.8% $5 MAERSK GALLANT JU COLD STACK
36.1% 36.2%
30% $0
Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 MAERSK INNOVATOR JU WARM STACK
Average Brent Crude US$ / Bbl Northwest Europe Rig Utilisation US Gulf Rig Utilisation MAERSK INTERCEPTOR JU WARM STACK
PETROBRAS AWARDS TERM CONTRACTS MAERSK REACHER
MAERSK RESOLUTE
JU
JU
WARM STACK
WARM STACK
SacAnb Offshore and Ocyan commence in mid-2021. Ocyan,
MAERSK RESOLVE JU WARM STACK
both secured term contracts meanwhile, picked up a 425-day
NOBLE HANS DEUL JU WARM STACK
with Petrobras in recent weeks. contract for its ultra-deepwater
NOBLE HOUSTON COLBERT JU WARM STACK
SacAnb scooped a three-year drillship Norbe VIII. The charter
contract for ultra-deepwater is due to commence in July in NOBLE SAM TURNER JU WARM STACK
cylindrical rig Sevan Developer; continuation of the rig’s current OCEAN VALIANT SS COLD STACK
this charter is scheduled to contract with Petrobras. RAN JU WARM STACK
SPACEX BUYS TWO SEMIS STENA DON
STENA SPEY
SS
SS
WARM STACK
WARM STACK
Elon Musk’s SpaceX has bought of USD 3.5 million per rig. The
SWIFT 10 JU COLD STACK
two semisubmersible drilling two units have been renamed
TRANSOCEAN BARENTS SS WARM STACK
rigs from Valaris. The 2008-built as Deimos and Phobos, after
TRANSOCEAN LEADER SS COLD STACK
Valaris 8500 and 2009-built two of the moons of Mars, and
Valaris 8501 were acquired by SpaceX intends to convert them VALARIS DS-4 DS COLD STACK
Lone Star Mineral Development, into floating launch pads for its VALARIS DS-8 DS COLD STACK
an affiliate of SpaceX, for a price Starship rocket. VALARIS JU-100 JU COLD STACK
CONTRACTED RIG UTILISATION AND DAY RATES VALARIS JU-101
VALARIS JU-121
JU
JU
WARM STACK
WARM STACK
JAN JAN JAN JAN JAN
UTILISATION VALARIS JU-247 JU WARM STACK
2021 2020 2019 2018 2017
NORTH SEA 48.3% 71.4% 70.4% 58.4% 52.3% VALARIS JU-249 JU WARM STACK
SOUTH AMERICA 65.2% 84.1% 65.8% 72.9% 74.4% WEST ALPHA SS COLD STACK
US GULF 36.2% 43.8% 46.0% 34.7% 31.8%
WEST LEO SS COLD STACK
CURRENT ESTIMATED FIXTURE RATES (SOURCE: BASSOE OFFSHORE) WEST NAVIGATOR DS COLD STACK
PREMIUM HARSH ENVIRONMENT JACKUP (EX CJ 70) USD 90,000 WEST PEGASUS SS COLD STACK
VINTAGE HARSH ENVIRONMENT JACKUP USD 75,000
WEST PHOENIX SS WARM STACK
SIXTH GENERATION HARSH ENVIRONMENT SEMISUBMERSIBLE USD 300,000
WEST TAURUS SS COLD STACK
VINTAGE HARSH ENVIRONMENT SEMISUBMERSIBLE USD 170,000
WEST VENTURE SS COLD STACK
SIXTH GENERATION INTERNATIONAL SEMISUBMERSIBLE USD 165,000
SIXTH / SEVENTH GENERATION INTERNATIONAL DRILLSHIP USD 190,000 WILHUNTER SS COLD STACK
SEABREEZE 15CONUNDRUM CORNER,
DUTY PHONES
RIG OWNERS RESTRUCTURE THE SEABREEZE ARCHIVE
It has been a tough time for everyone involved For the current or archive copies of Seabreeze go
in the offshore industry and the drilling market to: http://www.seabrokers.co.uk/ - see under
has been one of the hardest hit sectors. Three rig Shipbroking / Market Reports. If you wish to
contractors may be entering 2021 in better shape Subscribe or Unsubscribe please contact:
however, after significant progress was made for chartering@seabrokers.co.uk
their restructuring efforts. Pacific Drilling emerged
from its refinancing at the end of December with
USD 1 billion of debt eliminated. However, all of
the company’s outstanding common shares were SEABROKERS GROUP CONTACTS
deemed to have no value. Following Pacific’s lead,
Diamond Offshore has entered into an agreement SEABROKERS HEAD OFFICE
Forusbeen 78 - 4033 Stavanger - Norway
with the holders of more than 70% of its senior Tel: (+47) 51 80 00 00
unsecured notes and revolving credit facility loans Internet: www.seabrokers-group.com
to reduce the company’s indebtedness by more
than USD 2.1 billion. Diamond orginally filed for SEABROKERS CHARTERING AS - STAVANGER
Duty Telephone ++47 51 815400 (24 Hrs)
Chapter 11 in April 2020. Similarly, the liquidity E-mail chartering@seabrokers.no
improvement plan that Borr Drilling announced in
December has received support from its creditors. SEABROKERS LTD - ABERDEEN
As part of this plan, the delivery dates for five Duty Telephone ++44 1224 747744 (24 Hrs)
Duty Mobile ++44 7802 304129
newbuild jackups have been delayed until 2023. E-Mail chartering@seabrokers.co.uk
SEABROKERS BRAZIL LTDA - RIO DE JANEIRO
CONUNDRUM CORNER Duty Telephone ++55 21 3505 4200 (24 Hrs)
E-mail chartering@seabrokers.com.br
Last month’s answer :- SECURALIFT AS - STAVANGER
Telephone ++47 51 800000
What number is missing in this sequence? E-mail stig@seabrokers.no
SEA SURVEILLANCE AS - BERGEN
25 125 500 1,500 ? 3,000
HEADING
Telephone ++47 55 136500
E-mail info@seasurv.net
The answer was :- 3,000 (multiply the first
SEABROKERS EIENDOM AS - STAVANGER
number by 5; the second number by 4; the third Quiatis imaximilitem num enis porum ne dolles
Telephone ++47 51 800000
number by 3; the fourth number by 2; and the fifth quiE-mail
rerum id minrolf.aarthun@seabrokers.no
corepta dolo quo conet il id
number by 1) quisto que voluptatus eatis re ventur? Hilibust
SEABROKERS
quis as minciasSERVICES AS -qui
peribustis STAVANGER
dolorit officatus
This month, our poser is: Telephone ++47 51 800000
aut preiumquas qui iuscimu sapelest, esto odio.
E-mail lars.hagen@seabrokers.no
Itatecum cus acerum ipidunture corporpores et int
In their gardens, Leona sees a blackbird, Paul sees faccum remperi
SEABROKERS onsequi
FUNDAMENTERING AS - STAVANGER
a sparrow, Abdul sees a magpie and Olga sees a Telephone ++47 51 800000
robin. E-mail fundamentering@seabrokers.no
SEABROKERS HAVNEKRANER AS - STAVANGER
Does Heather see a thrush or a finch? Telephone ++47 51 800000
E-mail havnekraner@seabrokers.no
Answers back to chartering@seabrokers.co.uk.
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