GLOBAL OIL MARKETS IN UNCHARTED TERRITORY - APRIL 2020 - Seabrokers
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
APRIL 2020 GLOBAL OIL MARKETS IN UNCHARTED TERRITORY
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, Facili-
7 MONTHLY OSV SPOT RATES - ties Management, Construction, Sea Surveillance,
Harbour Cranes and Safe Lifting Operations.
NORTH SEA 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.
10 SUBSEA Seabrokers Chartering AS and Seabrokers Ltd are
certified by DNV GL in line with Management
System Standard ISO 9001:2015.
13 RENEWABLES
14 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
Seabreeze, email: YACHTING HARBOUR CRANES
chartering@seabrokers.co.uk
The Seabreeze Monthly Market Report OUR OFFICES:
is distributed worldwide through STAVANGER BERGEN SKIEN
our offices in Aberdeen, Stavanger and
ABERDEEN RIO DE JANEIRO
Rio de Janeiro.
© Seabrokers Group 2020 www.seabrokers-group.com
OSV MARKET ROUND-UP
ROCK BOTTOM SPOT UNCHARTED TERRITORY FOR OIL MARKETS
RATES IN NORTH SEA The knock-on effects from the forcing downward pressure on
coronavirus pandemic have vessel rates as they grapple to
The slowdown in the North been been wreaking havoc on control their costs.
Sea spot market has been more the oil markets, with oil demand
dramatic over the last four to six this quarter reduced by tens of The response from owners has
weeks than any of us could have millions of barrels per day. The also been significant. Having
imagined. It was inevitable that price of Brent Crude recently only recently started to make
there would be a reduction in fell to levels that have not been some headway following the
offshore activity this year and seen for more than 20 years, previous downturn, many
that any previous forecasts for while trading conditions have owners have no desire to repeat
vessel demand could be thrown been even more dramatic in the experience of sending vessels
out of the window. the States, where WTI prices out on hire at day rates that do
turned negative for the first time not even cover their operating
However, the lack of spot in history (as low as -USD 40) expenses. Owners have been
requirements in recent weeks as sellers had to pay to have oil laying up vessels in their droves
will have shocked even the taken off their hands. as their demand expectations
most pessimistic of owners. At for 2020 have suddenly been
no point during the previous The immediate impact on the obliterated. In the North Sea
downturn did we experience OSV market has been dramatic, alone, at least 30 PSVs and AHTS
anywhere near as many vessels with charterers cancelling vessels have been laid up since
being laid up in such a short projects around the globe and mid-March (see p.5 for details).
timeframe, and even that hasn’t
prevented spot PSV fixture rates
dropping as low as GBP 3,000 in HORNBECK SEEKS CHAPTER 11 PROTECTION
the UK sector and NOK 40,000
in Norway. It did not take long for the first with secured lenders holding
OSV casualty of the coronavirus approximately 83% of the
In the AHTS sector, the pool of downturn to materialise, with company’s aggregate secured
active vessels is comparatively Hornbeck Offshore seeking indebtedness, and unsecured
smaller than the PSV market. Chapter 11 protection in the noteholders holding around
This means vessel availability United States. 79% of the company’s aggregate
can still tighten much faster in unsecured outstanding notes.
this sector. However, the drastic Hornbeck has entered into an
reduction in activity levels has agreement for a comprehensive Hornbeck Offshore hopes to
obviously had a detrimental restructuring of its balance conclude the Chapter 11 process
impact on rates in the AHTS sheet. The deal with lenders before the end of the second
market as well. In the UK sector, and noteholders will provide quarter of 2020. The company
the majority of recent charters the company with USD 100 has emphasised that this process
have been agreed with rates of million of new capital upon will not impact its ability to
less than GBP 10,000 per day. its emergence from Chapter 11 operate in the ordinary course
In Norway, only a handful of bankruptcy protection. of business, and there should be
fixtures have involved owners no disruption to its customers,
managing to break the NOK Hornbeck has entered into this vendors or workforce.
100,000 threshold. restructuring support agreement
SEABREEZE 3
OSV MARKET ROUND-UP
AGREEMENT FOR HAVILA RESTRUCTURING
Havila Commander (c/o R. Haugen)
Havila Shipping has entered into
an agreement with its lenders
for a debt restructuring. The
agreement runs until December
31, 2024. Each lender can extend
this by an additional year.
At the beginning of 2020,
Havila’s outstanding debt stood
at NOK 4.22 billion (USD 412
million). For each vessel, this
debt will be apportioned into an
interest-bearing tranche and a
non interest-bearing tranche.
The size of the interest-bearing
tranche is based on the expected (USD 109 million) remaining as In terms of recent chartering
debt service capacity of each non interest-bearing debt. At the activity, Havila has secured a
vessel during the restructuring end of the restructuring period, new 18-month contract for PSV
period. This makes the total all interest-bearing debt will fall Havila Commander with Total
amount of interest-bearing due, and non interest-bearing E&P UK. The new term started
debt NOK 3.1 billion (USD 303 debt will be converted to shares in April, in direct continuation
million), with NOK 1.12 billion in the company. of her previous charter.
MULTI-YEAR DEAL FOR FLETCHER
With new term contracts Fletcher has also recently taken
in short supply recently, the on the management services for
Fletcher Group will be delighted another PSV, the World Peridot.
to have secured a three-year firm Following a reactivation process,
contract for PSV FS Abergeldie. Fletcher has already picked up a
The vessel will provide wind first charter for the Peridot, also
farm support for TenneT in the in the renewables sector, with
FS Abergeldie (pictured c/o P. Gowen) German sector. Meanwhile, Rhenus Logistics.
HERMIT PSV FOR PETROFAC AND HESS
Having recently concluded her wells’ options contract for the
previous term contract with PSV with Petrofac. The vessel
Team Marine UK earlier than will be providing support for
expected, it hasn’t taken long a P&A campaign that Petrofac
for the Hermit Fighter to be will be performing with semi
snapped up for another term WilPhoenix on behalf of Hess
fixture. Hermitage Offshore has UK at the Renee and Rubie fields
secured a three-well plus three in the Central North Sea. Hermit Fighter (pictured c/o George58)
4 SEABREEZE
OSV MARKET ROUND-UP
EQUINOR KEEPS VEGA
Skandi Vega (c/o H. Otneim)
In a sure sign of a vessel and her
crew performing to extremely
high standards, Equinor has
awarded DOF another contract
to keep AHTS vessel Skandi
Vega on hire for at least six more
months. The vessel has worked
exclusively for Equinor since
her delivery in 2010, and the
charterer holds options to keep
the Vega on hire for six more
months beyond the end of the
firm period in November 2020.
Furthermore, Equinor has an
option to convert the contract to
a firm two or three-year period trading update, the owner noted Several of DOF’s vessels will
within the next four months. a sharp decline in tendering conclude contracts over the
activity, with a limited number course of 2020, and the owner
However, it is by no means plain of contract opportunities visible has warned that many of these
sailing for DOF. In a recent for the foreseeable future. vessels may have to be laid up.
VICTORY IN BARENTS SEA
Island Offshore has deployed the end customer. The scope of
its installation/anchor handling work includes the installation of
vessel Island Victory in the subsea manifolds plus extensive
Barents Sea to fulfil a 60-90 day survey and subsea activity at
contract with Ocean Installer at Askeladd, using the vessel’s two
the Askeladd and Johan Castberg work ROVs as well as her 250t
fields. The vessel, which was offshore crane. The Victory will
delivered earlier this year, is also install a complete mooring
Island Victory (pictured c/o O. Halland) completing work for Equinor as system at Johan Castberg.
OWNERS LAYING UP PSVS IN THEIR DROVES
Pending the confirmation of a Bourbon, DOF, Golden Energy,
couple of cases, there have now Havila, Hermitage, Hoyland,
been (at least) 30 PSVs or AHTS Island, Møkster, Olympic,
vessels laid up in the North Sea Opielok, Seacosco, Solstad,
region since mid-March. The list Sverre Farstad, Tidewater and
consists almost entirely of PSVs Vroon. Other owners, such as
apart from a pair of DOF anchor Fletcher, have also brought
handlers. The list of owners to PSVs in house temporarily until OOC Cougar (c/o D. Dodds): one of the
have stacked vessels includes trading conditions improve. PSVs that has recently been laid up
SEABREEZE 5
OSV RATES & UTILISATION
APRIL 2020 - DAILY NORTH SEA OSV AVAILABILITY
PSV 2020 PSV 2019 AHTS 2020 AHTS 2019
32
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
RATES & UTILISATION
NORTH SEA SPOT AVERAGE UTILISATION APR 2020
TYPE APR 2020 MAR 2020 FEB 2020 JAN 2020 DEC 2019 NOV 2019
MED PSV 47% 66% 63% 59% 66% 67%
LARGE PSV 24% 58% 74% 65% 80% 68%
MED AHTS 37% 51% 38% 13% 62% 51%
LARGE AHTS 46% 67% 57% 36% 63% 62%
NORTH SEA AVERAGE RATES APR 2020
AVERAGE RATE AVERAGE RATE
CATEGORY % CHANGE MINIMUM MAXIMUM
APR 2020 APR 2019
SUPPLY DUTIES PSVS < 900M2 £3,485 £15,340 -77.28% £3,000 £5,500
SUPPLY DUTIES PSVS > 900M 2
£3,733 £16,587 -77.49% £3,000 £5,500
AHTS DUTIES AHTS < 22,000 BHP £7,087 £15,703 -54.87% £5,000 £12,266
AHTS DUTIES AHTS > 22,000 BHP £8,141 £16,775 -51.47% £5,000 £15,463
SPOT MARKET ARRIVALS & DEPARTURES - APRIL 2020
ARRIVALS - NORTH SEA SPOT DEPARTURES - NORTH SEA SPOT
ALP FORWARD EX NORTH ATLANTIC PRINCESS CANADA
PACIFIC DISCOVERY EX WEST 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
£17,500
PSVs < 900m²
£15,000 All Cargo Runs
£30,000
£12,500
£10,000
£20,000
£7,500
£5,000
£10,000
£2,500
£-
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 £5,299 £8,789 £9,473 £15,340 £14,573 £10,224 £10,639 £8,420 £11,161 £5,916 £8,398 £7,918
2020 £5,257 £6,308 £8,863 £3,485 £- £- £- £- £- £- £- £-
£20,000
£17,500
PSVsPSVs
> 900m²
< 900M²
900M2
£15,000
£15,000
£12,500
£10,000
£10,000
£7,500
£5,000
£5,000
£2,500
£-
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 £5,280 £11,076 £13,339 £16,587 £15,422 £11,039 £11,928 £10,646 £10,434 £6,940 £8,007 £9,683
2020 £6,810 £8,014 £7,132 £3,733 £- £- £- £- £- £- £- £-
£40,000
£40,000 AHTS < 22,000 bhp
£35,000
PSVs > 900M²
900M2
£30,000
£30,000
£25,000
£20,000
£20,000
£15,000
£10,000
£5,000
£-
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 £29,143 £14,899 £19,848 £15,703 £21,629 £24,750 £20,533 £16,124 £35,871 £34,305 £24,346 £21,707
2020 £7,959 £18,562 £25,486 £7,087 £- £- £- £- £- £- £- £-
£40,000
£35,000
AHTS > 22,000 bhp
Rig Moves
£30,000
£25,000
£20,000
£15,000
£10,000
£5,000
£-
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 £16,134 £20,987 £20,592 £16,775 £26,482 £25,687 £23,150 £32,237 £33,057 £29,220 £24,610 £34,702
2020 £9,203 £16,901 £21,268 £8,141 £- £- £- £- £- £- £- £-
£25,000
£25,000
Average
Average Day Rates Day Rates
To Month (AprilTo Month (June 2013)
2020)
£20,000
£20,000
£15,000
£10,000
£5,000
£-
PSVs < 900m² PSVs > 900m² AHTS < 22,000 bhp AHTS > 22,000 bhp
2019 £10,580
£9,586 £11,873
£11,514 £20,992
£20,166 £21,687
£18,471
2020 £6,208
£- £6,867
£- £16,319
£- £14,615
£-
SEABREEZE 7
FEATURE VESSEL
VARD 4 19 DESIGN SOV
Vard has signed a contract with Ta San Shang Marine for the
design and construction of Taiwan’s first Service Operation Vessel.
This marks Vard’s first entry The vessel will be prepared to
into the renewable energy operate without fossil fuels, and
sector. The vessel, to be built to will feature an optimised hull
the VARD 4 19 design, has been design and battery-hybrid setup
chartered by Ørsted on a 15-year to reduce fuel consumption
contract. She will be working and to decrease her carbon VARD 4 19 SPECS:
at the Greater Changhua wind footprint. The SOV will feature a
farms offshore Taiwan. motion-compensated gangway, Yard: Vard Vung Tau, Vietnam
dynamic positioning and a 3D Design: Vard 4 19
The Taiwanese-flagged SOV motion-compensated crane. LOA: 84.4m
will be built at the Vard Vung Breadth: 19.5m
Tau Shipyard in Vietnam with Ørsted will finish constructing Flag: Taiwan
delivery scheduled in 2022. the 900 MW Greater Changhua Propulsion: Diesel-electric
The vessel will have a length of 1 and 2a wind farms between Accommodation: 87 persons in
84.4m and a beam of 19.5m. She 2021 and 2022. Ørsted also holds single cabins
will be able to accommodate the rights to build another 920 Gangway: Motion compensated
87 people in single cabins, with MW at its Greater Changhua 2b gangway with elevator system
space for up to 60 technicians & 4 sites subject to a FID which Crane: 3D-compensated crane
plus crew. is scheduled for 2023.
8 SEABREEZE
NEWBUILDS, CONVERSIONS, S&P
SEA TRIALS COMPLETE FOR SWS NEWBUILD
Sea trials have been completed the construction of the PSVs was
on a newbuild PSV that has been placed by Pacific Radiance. The
built by Shanghai Waigaoqiao other vessels are now known as
Shipbuilding (SWS) for Tianjin Guo Hai Min Fu, Guo Hai Min
CSSC Jianxin/SinoOcean. Sheng and Guo Hai Min Xing.
Built to the Ulstein PX 121 In addition to operating as PSVs,
design, the Guo Hai Min Qiang the 83m vessels will also be
is one of four sister vessels that equipped for the installation of
have been built to the PX 121 ROVs for inspection, repair and
design - the original order for maintenance (IRM) work. Guo Hai Min Qiang
SK ARCTIK LAUNCHED IN MALAYSIA
Nam Cheong recently held a The SK Arctik is a DP 2 vessel
launching ceremony for the with a length of 64.8m, breadth
SK Arctik, a newbuild AHTS of 16m and a clear deck area of
vessel that has been built at 420m². The vessel has a bollard
Nam Cheong’s Miri shipyard in pull of 80t and accommodation
Sarawak, Malaysia. for 50 persons. The vessel’s main
This is the tenth vessel built propulsion will be supplied by
to the NC80E design by Nam two Rolls-Royce US 255P30CP
Cheong since 2015. stern azimuth thrusters.
ERRINGTON TIDE SOLD TO EGYPTIAN OWNERS
Tidewater recently sold the The Errington Tide/Sea Bird
Errington Tide AHTS vessel to is a DP1 vessel with a length
Egyptian owner Ships & Boats of 60.1m, breadth of 16m and
Oil Services. a deck area of 390m². She has
The 2009-built vessel, which a main engine output of 5,000
had been cold-stacked in Egypt bhp, providing a bollard pull of
for several months prior to the more than 60t. The vessel has an
sale, has been renamed as the accommodation capacity for 26
Sea Bird. persons.
RAWABI VALLIANZ TAKES OWNERSHIP OF NEWBUILD AHTS
Rawabi Vallianz Offshore has as the Rawabi 30. This is one of
taken over the ownership of the three vessels that were ordered
newbuild AHTS vessel that was by Swissco Offshore back in 2016
formerly known as the Swissco but later cancelled. The shipyard
Peridot. has indicated that all equipment
The 6,400 bhp vessel was built can be installed and tested
at the Xin Yue Feng Shipyard in within eight months upon new
China. She has been renamed sale agreements being finalised.
SEABREEZE 9
SUBSEA
SUBSEA MARKET ROUND-UP
Following on from last month’s headwinds encountered would Meanwhile, TechnipFMC has
Seabreeze where the focus halt the pace of new awards cut capex by 30% and revised
was placed on E&P companies that would have been required its dividend policy for 2020,
delaying projects to reign in to meet its prior guidance. The but will recommence quarterly
spending, this month the focus measures being taken around instalments beginning in April
has firmly been placed on subsea the world to contain the virus, 2021. They also booked a USD
companies. In recent weeks, such as travel restrictions for 3.2 billion write-down for subsea
several have withdrawn their crew and country lockdowns and surface technologies. USD
previously announced financial impacting dockings, may impact 2.74 billion of this stemmed from
guidance and outlook for the the company’s ability to execute the subsea segment, and the cost
year ahead because of the existing contracts and recognise reduction target has risen from
uncertainty surrounding the revenue in 2020. USD 130+ million to USD 350+
coronavirus pandemic and the million by the end of 2020.
collapse in commodity prices. Other companies have also
made similar statements, with It isn’t all negative news for
Subsea 7 reacted first with the Fugro also withdrawing its 2020 April though, as we have seen
news that it was retracting its guidance and implementing cost several contracts awarded
guidance for 2020 because the saving measures. during the month…
PERENCO AWARDS SHARP CONTRACT
over the next 18 months. Rever spool installation and subsea
will install a rigid riser and tie-in plus installation, as well
complete the pipeline tie-in as the pre-commissioning
diverting production from the engineering and topside support
…Perenco has awarded Rever Leman AC Platform to the work to tie-in the platform
Offshore a contract for its Leman AP Platform, in addition piping infrastructure.
SHARP (Southern Hub Area to pre-commissioning work. Engineering work has already
Redevelopment Project) in the The work scope covers the commenced and the first
Southern North Sea. fabrication of the riser, the riser offshore phase will take place
The contract comprises of two hang-off arrangement, platform during the third quarter of this
campaigns that will take place leg clamps, topside and subsea year.
SUBSEA 7 TO PERFORM INSTALLATIONS ON ANCHOR
Subsea 7 has secured Chevron’s production flowlines, risers, production unit.
subsea installation services umbilicals, flying leads and OneSubsea will deliver a subsea
contract relating to the Anchor jumpers. Offshore operations production and multiphase
development, which was just will take place in 2022 and 2023, boosting system, while Aker
sanctioned last December. while first oil is expected in Solutions will provide 24km of
The contract covers the project 2024. The Anchor field, located umbilicals for the project.
management, engineering, in the Green Canyon area of
procurement, construction and the US Gulf, will consist of
installation of SURF component seven subsea wells connected
equipment consisting of the to a semisubmersible floating
10 SEABREEZESUBSEA
TECHNIPFMC TO WORK ON LAMBERT DEEP
subsea equipment, including This will entail the drilling of
the subsea production system, four new production wells that
flexible flowlines and umbilicals will be tied-back to existing
Woodside has awarded Technip for connection to the Angel subsea infrastructure via subsea
FMC an integrated Engineering, platform in permit area WA-3-L. trees, flexible flowlines, pro-
Procurement, Construction, and Woodside announced the FID duction manifolds and service
Installation (iEPCI) contract for Lambert Deep and GWF-3 umbilicals.
to cover the development of in January. The operator will Offshore activities are planned
Lambert Deep and Phase 3 of produce hydrocarbons from the to start during the first quarter
the Greater Western Flank fields Goodwyn GH Reservoir and of 2021, which will include the
offshore North West Australia. Lambert Deep field to support Lambert Deep well, the three
TechnipFMC will design, ongoing production from the GWF-3 wells and related subsea
manufacture, deliver and install North West Shelf Project. installation.
FUGRO TO SERVICE WELL-SAFE
Fugro has been awarded a three- Guardian for executing subsea centre in Aberdeen, Scotland.
year contract with Well-Safe well decommissioning work. Remote access via the onshore
Solutions, a decommissioning Fugro will be responsible for the team will reduce the number
service provider. supply and support of the ROV of Fugro personnel required
The contract will see Fugro services, rig positioning and onboard the Well-Safe Guardian
provide its integrated marine- remote operations. asset to both improve efficiency
based solution onboard the Technical support will come and maximise safety.
semisubmersible rig Well-Safe from Fugro’s remote operations
HELIX TO LAYUP VESSELS
Helix has announced that its clients regarding future work work on five wells. Helix also
2019-built semisubmersible well this year are ongoing. The warm announced that its 1987-built
intervention vessel Q7000 is layup comes after the Q7000 well intervention vessel Seawell
en route to the Canary Islands completed her maiden contract at will be “lukewarm” stacked
where she will enter warm ExxonMobil’s Erha field offshore while discussions continue with
layup, while discussions with Nigeria, where she completed clients over deferred work.
ISLAND SPIRIT SOLD
Island Offshore has sold the UT currently disassembling some treatment of salmon. Prior to the
755LN designed IMR vessel equipment, such as the ROV sale, the 74m vessel had been
Island Spirit to Hydrolicer Drift. mezzanine decks, ROV winch, laid up since late 2017.
The new owners took delivery A-frame & housing module so
of the 2006-built vessel in the vessel can be converted
mid-April and have renamed her to operate in the aquaculture
as the Hydro Patriot under the industry. This work will take 11
management of Hydro Shipping weeks to complete, including the
AS. The new owners are installation of hydrolicers for lice
SEABREEZE 11SUBSEA
TOTAL DELAYS SAFE CALEDONIA CHARTER
Total and Prosafe have agreed commence the charter on the
to delay Total’s 2020 North Sea Elgin development during the
campaign which the 454-bed latter part of the first quarter of
accommodation semi Safe 2021.
Caledonia had been scheduled to The charter was originally due to
undertake. start in April 2020. The contract
The agreement will see the start remains as 162 days with one 30-
date deferred for one year and day option. Prosafe will receive a
will see the 1982-built semi deferral fee from Total.
FLOATEL VICTORY CHARTER DELAYED UNTIL 2021
Ineos and Floatel International delayed until April 2021. The rig
have also agreed to postpone a will be working at Ineos’ Unity
contract into 2021. platform in the UK sector.
This delay will see the start date The four-month work scope was
of the contract for the 500-bed originally due to start in May
semisubmersible Floatel Victory 2020.
EQUINOR KEEPS FLOATEL ENDURANCE
Unlike other accommodation further extend the charter. The
contracts that we have reported contract was originally due to
recently, Equinor has recently expire at the end of June 2020.
extended its contract with the The Floatel Endurance, built in
semisubmersible rig Floatel 2015, has a length of 106m. She
Endurance. is capable of accommodating
The operator will now retain its 440 persons in single cabins and
services at the Martin Linge field is equipped with a telescopic
until the end of January 2021. gangway and a maximum lift of
Equinor also has an option to 100 tonnes.
MERMAID INVOKES FORCE MAJEURE
Mermaid Maritime has invoked Middle East which prompted special surveys which resulted
force majeure on one of its difficulties with crew changes. in them departing their country
contracts due to the lockdowns The owner had to charter in a of operation.
in force in the Middle East. replacement vessel to fulfil its Mermaid Subsea Services
One of the main factors for contractual obligations until the secured an USD 8 million loan
this decision came after one of original vessel returned. facility with Export-Import
the company’s vessels was late Mermaid did not name the Bank of Thailand to finance
returning from a dry docking country or operator but both the the mandatory SPS for its DP2
due to government-imposed 2010-built Mermaid Endurer diving support vessels Mermaid
restrictions, as well as travel and Mermaid Asiana have Endurer and Mermaid Asiana.
restrictions encountered in the recently completed five-year
12 SEABREEZERENEWABLES
TENNET OPENS CONSULTATIONS ON SUBSEA CABLING
TenneT has commenced are scheduled for 2021. responsibility, scheduling and
market consultations focused TenneT is planning to build two tender resources. The 700MW
on the subsea cabling tenders 700 MW substation platforms Hollandse Kust (west) Beta will
for its Hollandse Kust (west) each connected to shore by two be commissioned in 2025, while
Beta and Ten Noorden van de three-core 220 kV AC cables. the 700MW Ten Noorden pro-
Waddeneilanden offshore wind The project team wants to ject will be online in 2026. The
farm transmission projects. The engage the market in relation to total subsea export cable length
market consultation will run technical feasibility, production under the projects are expected
until June 2020 and the tenders capacity, corporate social to be in excess of 200km.
CWIND AWARDED MAINTENANCE CONTRACT
CWind has been awarded a 8.2 million, also includes two surveys, corrective maintenance
three-year maintenance contract one-year options for extension. and pre-engineering studies.
by ScottishPower Renewables The work scope will involve The 714 MW wind farm is
for the East Anglia One wind CWind providing subsea expected to be fully operational
farm offshore the UK. maintenance of the foundations this year.
The contract, worth up to GBP and offshore substation, subsea
EDDA WIND SECURES MULTI-YEAR DEALS
Østensjø Group’s offshore during the first quarter of 2021. equipped with a battery hybrid
wind division, Edda Wind, has MHI Vestas has contracted a propulsion system that reduces
signed long-term contracts with newbuild SOV while Ocean the emission of greenhouse gases
MHI Vestas and Ocean Breeze Breeze will charter a CSOV and by at least 30%. They will also
Energy for two of its four Salt utilise a front runner until the be prepared for zero emission
Ship newbuilds that are under newbuild vessel is delivered hydrogen technology to be
construction at Spanish yards. during the first quarter of 2022. installed. The Astilleros Gondan
MHI Vestas has chartered an The CSOVs have a length of yard is building two CSOVs,
SOV for 15 years, which will 88.3m and accommodation for while two SOVs are being built
commence during the second 120 persons, while the SOVs at the Astilleros Balenciaga yard.
quarter of 2022. Meanwhile, have a length of 82.4m and an The last two newbuilds will be
Ocean Breeze has signed an accommodation capacity for 60 delivered in the fourth quarter of
11-year contract which will start persons. The newbuilds will be 2022.
VATTENFALL LOOKS TO SEAWAY 7
Vattenfall has awarded Subsea 140 monopile foundations and The contract is subject to
7 a transport and installation 315km of 66 kV inner-array Vattenfall’s final investment
contract covering the developer’s cables. decision. Based on the current
four offshore wind farms at the Subsea 7 will utilise Seaway 7’s schedule, all of the Hollandse
Hollandse Kust Zuid zone in the heavy lift, cable lay and support Kust Zuid wind farms will be up
Netherlands. vessels for the operation which and running at the end of 2022
Under the contract, Subsea 7 will take place during 2021 and or early in 2023.
will transport and install around 2022.
SEABREEZE 13RIGS
DIAMOND FILES FOR BANKRUPTCY PROTECTION
The unprecedented impact of regarding a comprehensive Exchange that the company’s
Covid-19 has already claimed restructuring plan to address the shares were to be delisted.
its first victim in the offshore organisation’s capital structure. Diamond’s common stock has
drilling market, with Diamond Diamond has stated that it since begun trading on the OTC
Offshore filing for Chapter 11 has “sufficient capital to fund Pink markets.
bankruptcy protection in the its global operations... and to
United States. The contractor make continued investments in
intends to use the proceeds from safety and reliability” while the
the process to restructure and restructuring process is ongoing.
strengthen its balance sheet and There is not a requirement for
achieve a “more sustainable debt postpetition financing at this
profile.” time.
Diamond and its advisors are In the wake of this development,
pursuing negotiations with the Diamond received notification
company’s key stakeholders from the New York Stock
TRANSOCEAN SCRAPPING FOUR MORE SEMIS
Transocean recently issued a of years. As the global response Transocean commented on how
letter to its shareholders ahead of to the coronavirus pandemic the company was continuing to
the company’s upcoming AGM, has wiped out oil demand to the enhance its fleet by focusing on
warning them of the market tune of tens of millions of barrels high-specification assets. Six rigs
disruption that was about to per day this quarter, Transocean were removed from Transocean’s
unravel this year. referenced the steep decline in fleet last year, and so far in 2020
While the company rightly oil prices that has been recorded the company has confirmed
acknowledged the significant this year, with Brent Crude plans to dispose of four more
market improvements that had currently trading in the mid cold-stacked North Sea semis:
materialised in 2019, this was USD 20s. This will “likely delay the Polar Pioneer, Sedco 711,
overshadowed by the reality that offshore projects that were being Sedco 714 and Songa Dee.
the global outbreak of Covid-19 contemplated when oil prices
was likely to derail the progress were closer to USD 60.”
that had been made by drilling As this translates into reduced
contractors over the last couple demand for offshore drilling rigs,
MAERSK TO STACK NORTH SEA RIGS
The bad news is drastically reducing its offshore crew pool,
outweighing the good for rig with 250-300 redundancies in
owners, and with tenders Denmark, Norway and the UK.
and projects being delayed In more positive news, however,
or cancelled, Maersk Drilling Maersk has secured a four-well
intends to stack “a number of extension with Equinor for the
the company’s North Sea rigs” Maersk Intrepid. Estimated at 11
Maersk Reacher will soon be released due to the commercial outlook. months, this extension will run
from contract by Aker BP in Norway Consequently, Maersk will be until July/August 2021.
14 SEABREEZERIGS
OIL PRICE VS RIG UTILISATION
100% $75
INACTIVE RIGS NORTHWEST EUROPE
NAME TYPE STATUS
$70
$71.20 $70.53 BIDEFORD DOLPHIN SS WARM STACK
90% $65
$65.85
$63.30 $64.00 $62.33 $62.74 $63.60 81.4% 81.7% 81.8% $60 BLACKFORD DOLPHIN SS WARM STACK
$59.25 $59.37 78.5%
80% 75.4% 76.2% 75.1% 74.2% 74.2% 75.9% 75.7%
$55
72.6% 73.9% $55.00
$50 COSLINNOVATOR SS WARM STACK
75.2% 74.9% $45
70% 73.9% 72.9% 73.2% 73.6%
72.4% 71.8% 71.5% $40 DEEPSEA BERGEN SS WARM STACK
65.9% $35
60% 63.3% 62.3% 62.5% ISLAND INNOVATOR SS WARM STACK
$32.98 $30
$27.38 $25 LEIV EIRIKSSON SS WARM STACK
50% $20
50.8% 50.0%
48.8% 50.1% $15 MAERSK GALLANT JU COLD STACK
46.8% 47.4%
40% 44.7% 44.2%
43.2% 43.8% 43.9% 44.0% $10
40.8% MAERSK INTERCEPTOR JU WARM STACK
$5
30% $0
Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 MAERSK RESILIENT JU WARM STACK
Average Brent Crude US$ / Bbl Northwest Europe Rig Utilisation
South America Rig Utilisation US Gulf Rig Utilisation
MAERSK RESOLUTE JU WARM STACK
MSS1 SS WARM STACK
SAUDI ARAMCO REQUESTING RATE CUTS NOBLE HANS DEUL JU WARM STACK
Noble Corporation, which has Whitstine, Noble Roger Lewis NOBLE HOUSTON COLBERT JU WARM STACK
four of its jackups on hire to and Noble Scott Marks are all NOBLE SAM HARTLEY JU WARM STACK
Saudi Aramco, has revealed contracted to Saudi Aramco
NOBLE SAM TURNER JU WARM STACK
that the charterer has requested until 2022.
operating day rate reductions Noble has indicated that the rate OCEAN GREATWHITE SS WARM STACK
for the rigs it has on hire. The reduction request is currently PROSPECTOR 5 JU WARM STACK
Noble Joe White, Noble Johnny under review. SCARABEO 8 SS WARM STACK
BORR ADDS ONE JACKUP BUT SELLS TWO STENA SPEY
SWIFT 10
SS
JU
WARM STACK
WARM STACK
Keppel Offshore and Marine Borr. Separately, Borr has just
TRANSOCEAN 712 SS COLD STACK
has delivered another newbuild sold two standard jackups, the
jackup to Borr Drilling in Dhabi II and Paragon B152, for VALARIS JU-70 JU COLD STACK
Singapore. The Hild, built to the total cash proceeds of USD 15.8 VALARIS JU-71 JU COLD STACK
KFELS Super B Class design, is million, including the associated VALARIS JU-100 JU WARM STACK
the sixth of 11 jackup rigs that backlog for the rigs effective
VALARIS JU-121 JU WARM STACK
Keppel has been building for from April 1, 2020.
VALARIS JU-123 JU WARM STACK
RIG UTILISATION AND DAY RATES VALARIS JU-249 JU WARM STACK
APR APR APR APR APR WEST ALPHA SS COLD STACK
UTILISATION
2020 2019 2018 2017 2016
WEST EPSILON JU COLD STACK
NORTHWEST EUROPE 71.5% 72.6% 61.9% 51.5% 68.2%
WEST LEO SS COLD STACK
SOUTH AMERICA 81.8% 63.3% 65.4% 72.2% 78.6%
US GULF 40.8% 46.8% 40.6% 29.7% 38.5% WEST NAVIGATOR DS COLD STACK
WEST PEGASUS SS COLD STACK
RECENT DAY RATE BENCHMARKS LOW (USD) HIGH (USD)
WEST TAURUS SS COLD STACK
UK HARSH HIGH SPEC JACKUPS 75,000 120,000
NORWAY HARSH HIGH SPEC JACKUPS 272,500 275,000 WEST VENTURE SS COLD STACK
UK HARSH HIGH SPEC SEMISUBS 160,000 205,000 WILHUNTER SS COLD STACK
GLOBAL ULTRA-DEEPWATER SEMISUBS 140,000 180,950 WILPHOENIX SS WARM STACK
GLOBAL ULTRA-DEEPWATER DRILLSHIPS 220,000 250,000
Source: IHS-Petrodata
SEABREEZE 15CONUNDRUM CORNER,
DUTY PHONES
VALARIS TO DIVEST MORE RIGS THE SEABREEZE ARCHIVE
In the wake of the coronavirus carnage that has For the current or archive copies of Seabreeze go
spread through certain sectors of the market, to: http://www.seabrokers.co.uk/ - see under
Valaris has reported a quarterly net loss of USD Shipbroking / Market Reports. If you wish to
3.01 billion. The results for the first quarter of 2020 Subscribe or Unsubscribe please contact:
included a non-cash asset impairment of USD 2.81 chartering@seabrokers.co.uk
billion related to three drillships (VALARIS DS-3,
DS-5 and DS-6), three semis (VALARIS 8500, 8501
and 8502) and seven jackups (VALARIS JU-71, JU-
75, JU-87, JU-100, JU-104, JU-105 and JU-109). In SEABROKERS GROUP CONTACTS
response to the challenges that are prevalent in the
market today, Valaris has stated that it expects to SEABROKERS HEAD OFFICE
Forusbeen 78 - 4033 Stavanger - Norway
“stack certain uncontracted rigs and remove others Tel: (+47) 51 80 00 00
from our fleet, including three drillships and four Internet: www.seabrokers-group.com
semisubmersibles.” The seven specific floating rigs
to be divested have not yet been specified. SEABROKERS CHARTERING AS - STAVANGER
Duty Telephone ++47 51 815400 (24 Hrs)
E-mail chartering@seabrokers.no
CONUNDRUM CORNER SEABROKERS LTD - ABERDEEN
Duty Telephone ++44 1224 747744 (24 Hrs)
Duty Mobile ++44 7802 304129
Last month’s answer :- E-Mail chartering@seabrokers.co.uk
What numbers should replace the question marks? SEABROKERS BRAZIL LTDA - RIO DE JANEIRO
Duty Telephone ++55 21 3505 4200 (24 Hrs)
E-mail chartering@seabrokers.com.br
- 14 70 19
- 23 92 27 SECURALIFT AS - STAVANGER
- 19 57 22 Telephone ++47 51 800000
- 48 ?? ?? E-mail stig@seabrokers.no
SEA SURVEILLANCE AS - BERGEN
The answer was :- 96 and 50 (Row 1 = first
number x 5 and first number + 5; Row 2 = first HEADING
Telephone ++47 55 136500
E-mail info@seasurv.net
number x 4 and first number + 4; Row 3 = first
SEABROKERS EIENDOM AS - STAVANGER
number x 3 and first number +3; therefore Quiatis imaximilitem num enis porum ne dolles
Telephone ++47 51 800000
Row 4 = first number x 2 and first number + 2). quiE-mail
rerum id minrolf.aarthun@seabrokers.no
corepta dolo quo conet il id
quisto que voluptatus eatis re ventur? Hilibust
This month, our poser is as follows: SEABROKERS
quis as minciasSERVICES AS -qui
peribustis STAVANGER
dolorit officatus
Telephone ++47 51 800000
aut preiumquas qui iuscimu sapelest, esto odio.
E-mail lars.hagen@seabrokers.no
A generous boy wanted to give sweets to his Itatecum cus acerum ipidunture corporpores et int
classmates. He offered 9 sweets to each boy and faccum remperi
SEABROKERS onsequi
FUNDAMENTERING AS - STAVANGER
12 sweets to each girl. One third of the boys in the Telephone ++47 51 800000
class accepted the sweets but only one quarter E-mail fundamentering@seabrokers.no
of the girls had the sweets. If the boy gave out 87 SEABROKERS HAVNEKRANER AS - STAVANGER
sweets, how many classmates did he have? Telephone ++47 51 800000
E-mail havnekraner@seabrokers.no
Answers back to chartering@seabrokers.co.uk.
16 SEABREEZEYou can also read
