March 2007 North Sea Market Report - Offshore Shipbrokers
March 2007 North Sea Market Report - Offshore Shipbrokers
March 2007 North Sea Market Report - Offshore Shipbrokers
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>March</strong> <strong>2007</strong> <strong>North</strong> <strong>Sea</strong> <strong>Market</strong> <strong>Report</strong><br />
DRILLING RIGS<br />
<strong>Report</strong>ed Fixtures<br />
BP, BG & Dong JU Maersk Guardian 510 days shared charter Mar-07<br />
GSPC SS Essar Wildcat 4 wells + 2 x 4 well opts May-07<br />
Norsk Hydro SS WilInnovator 5 –8 years on Troll Field June 09<br />
Norsk Hydro SS WilPromotor 5 –8 years on Troll Field June 10<br />
Marathon Oil SS Deepsea Bergen Extension - 8 months from Jan 08 Jan-08<br />
Oilexco SS Ocean Guardian Extension - 1 year from April 08 Apr-08<br />
Peak Group JU Ensco 100 1 year + 1 year opt Jul-07<br />
Peak Group SS Sedco 704 1 year multi client / multi well Jul-07<br />
Pemex SS Petrolia 932 days charter Oct-07<br />
Providence SS Petrolia 1 well sublet - East Ireland May-07<br />
Talisman JU Maersk Guardian 2 years Aug-08<br />
Venture JU Noble Kolskaya 1 well sublet on Chiswick field Oct-07<br />
Wintershall JU Noble George Sauvageau 1 year Jan-08<br />
Wintershall JU Noble Linda Bossler Extension - 6 months from Jan 08 Jan-08<br />
Operators with requirements for rigs<br />
Antrim Energy SS One development well Feb-08<br />
Chevron JU/SS 1 Year on Erskine location Jan-08<br />
CNR HDJU/SS HPHT well - 120 to 160 days Sep-08<br />
ENI Norway SS 3 wells Atlantic Margin Jan-08<br />
ENI Norway SS 3 or 5 years + opts in Barents <strong>Sea</strong> Jul-09<br />
EOG Resources JU 2 wells in East Irish <strong>Sea</strong> Jan-08<br />
Exxon Mobil JU 1 Well 80 - 100 days Jun-07<br />
Gaz De France HDJU 6 months HPHT work Jun-08<br />
Helix RDS JU 2 wells on behalf of ERT / Deltiac Sep-07<br />
Ithaca Energy SS 2 x SS for 2 development wells Jul-07<br />
Ithaca Energy JU JU for 1 exploration well Jul-07<br />
Maersk Oil UK JU 6 months + opts Aug-07<br />
Marathon Oil SS HPHT work - 2 years firm + opts Dec-08<br />
OMV UK JU 1 well circa 45 days Jan-08<br />
Perenco JU 3 Wells Apr-07<br />
Providence SS One well west of Ireland Mar-08<br />
Revus Energy SS 2 exploration wells Jan-10<br />
Rider Hunt SS 1 - 3 years, West of Shetland Feb-08<br />
Rider Hunt JU 1 - 3 years, Sourthern N <strong>Sea</strong> Feb-08<br />
13 Rubislaw Terrace<br />
Aberdeen AB10 1XE<br />
Telephone No +44 (0) 1224 628788<br />
aberdeen@offshore-shipbrokers.co.uk<br />
9 – 11 Folgate Street<br />
London E1 6BX<br />
Telephone No +44 (0) 207 3779774<br />
london@offshore-shipbrokers.co.uk
continued ….<br />
Senergy SS 1 year Jan-08<br />
Senergy JU 1 year Jan-08<br />
Shell Norway SS 4 years + opts Jan-09<br />
Statoil SS Newbuld Drilling rigs - 3 to 10 years Aug-07<br />
Statoil SS 13 wells (1035 days) + 3 well opts Dec-08<br />
Total E&P HDJU/SS Circa 170 days Victoria Field Apr-07<br />
Vermilion Exploration JU/SS 1 Well - Aquitaine Basin Sep-07<br />
SUPPORT VESSELS<br />
<strong>March</strong> was another excellent month for owners with the majority experiencing good utilisation of their vessels<br />
and buoyant dayrates being earned. It’s certainly beginning to look like the summer is going to be another<br />
scorcher however looking ahead at the longer term, there are some dark clouds starting to form on the<br />
horizon.<br />
At the beginning of the month the AHTS market was reasonably steady with the majority of vessels working<br />
and dayrates around the £50,000 level. By the end of the first week of <strong>March</strong> the rig move market had gone<br />
slightly quieter with dayrates dropping to the £40,000 level and a number of owners forced to turn to Cargo<br />
work to keep their vessels utilised.<br />
By the middle of the month the market had tightened once again with rates quickly doubling and by the 3 rd<br />
week of the month AHTS rates had reached £95,000. This was short lived however and by the end of <strong>March</strong><br />
AHTS rates had once again dropped off to the £40,000 levels where they remain at the time of writing.<br />
The PSV market was once again a far less turbulent affair with rate levels spending the majority of the month<br />
around the £30,000 - £40,000 levels. Looking ahead at April however we are expecting to see in the region<br />
of 10 PSV’s leaving the spot market for term charters which will only leave circa 13 PSV’s to service<br />
charterers needs. With virtually half the fleet leaving in such a short space of time you don’t have to be an<br />
economist to work out the likely effect of such a dramatic swing in the supply / demand equation!<br />
Getting back to the mention of dark clouds on the horizon, though it is now widely accepted that this summer<br />
is looking somewhat tight for PSV availability, this buoyant market is unlikely to last with in the region of 200<br />
newbuild vessels scheduled for delivery worldwide this year alone.<br />
This is in fact just the tip of the iceberg with circa 550-600 newbuild vessels now on order worldwide and<br />
scheduled for delivery between now and 2011.<br />
Though the majority of these vessels are not destined for the <strong>North</strong> <strong>Sea</strong> and many are in fact built against<br />
existing requirements, there is no doubt at all that a large number will undoubtedly find their way to the <strong>North</strong><br />
<strong>Sea</strong>.<br />
At a recent conference in London, a leading industry analyst gave their view of the impact of these deliveries<br />
which they expect will cause the worldwide fleet to grow by circa 40% whilst demand is only expected to<br />
grow by circa 6%, even taking into account the rapid growth seen in such regions as China and India.<br />
Of the <strong>North</strong> <strong>Sea</strong> demand, one of the leading charterers Statoil spoke of their requirement for the coming few<br />
years and in fact anticipate a reduction from 15000 vessel days to 13000 vessel days, a reduction of some<br />
13%. Given their impending merger with Norsk Hydro there is no doubt at all that we will see further<br />
reductions in vessel requirements from the two biggest Norwegian operators as they benefit from vessel<br />
sharing within each others term fleet.<br />
13 Rubislaw Terrace<br />
Aberdeen AB10 1XE<br />
Telephone No +44 (0) 1224 628788<br />
aberdeen@offshore-shipbrokers.co.uk<br />
9 – 11 Folgate Street<br />
London E1 6BX<br />
Telephone No +44 (0) 207 3779774<br />
london@offshore-shipbrokers.co.uk
continued ….<br />
It is therefore expected that as tonnage returns from project work and a steady stream of newbuild vessels<br />
have been delivered during <strong>2007</strong>, that Q4 of this year could start to see the beginnings of a downturn in the<br />
market. Though we don’t expect this to be a sudden crash we do expect to see a prolonged and steady<br />
decline in vessel dayrates as newbuild vessels continue to arrive in the <strong>North</strong> <strong>Sea</strong> and owners are forced to<br />
compete for utilisation.<br />
13 Rubislaw Terrace<br />
Aberdeen AB10 1XE<br />
Telephone No +44 (0) 1224 628788<br />
aberdeen@offshore-shipbrokers.co.uk<br />
Latest Fixtures - <strong>North</strong> <strong>Sea</strong><br />
Acergy - Norway AHTS Normand Progress All Duties - Circa 30 days <strong>March</strong> 07<br />
Acergy - Norway PSV Ocean Mainport Supply duties - circa 2 months May 07<br />
Supporting GSF Arctic II –<br />
ADTI PSV <strong>North</strong>ern Supporter<br />
Extended until May 07<br />
Extension<br />
ADTI PSV Rem Supplier Cargo Duties - 5 months firm + opts April 07<br />
Apache PSV Highland Citadel Supply Duties - Extended until <strong>March</strong> 09 Extension<br />
Apache PSV UP Safira<br />
General Cargo Duties –<br />
Extended until <strong>March</strong> 09<br />
Extension<br />
ATP PSV Gargano Support JU Ensco 70 - Circa 4 months April 07<br />
Bluestream PSV <strong>North</strong>ern River ROV / Dive support - 5 years May 07<br />
BP - UK PSV E.R Bergen General Cargo Duties - Circa 1 year <strong>March</strong> 07<br />
BP - UK AHT Taurus<br />
Support Duties on Schiehallion –<br />
Circa 3 months<br />
April 07<br />
CNR PSV UP Esmeralda Cargo Duties - Extended until May 07 Extension<br />
Dong PSV Boa Fortune<br />
E.ON Rurhgas PSV Lady Elizabeth<br />
Support of Noble George Savaugeau –<br />
Circa 2 months + opts<br />
Supporting GSF Labrador –<br />
Frontrun for F Grimshader.<br />
April 07<br />
<strong>March</strong> 07<br />
GB Diving PSV Vos Sympathy Support duties - Extended until Oct 07 Extension<br />
In House AHTS Anglian Earl In House - Extended until May 07 Extension<br />
Kuehne & Nagel AHT Granit Barge Tow - Circa 2 months <strong>March</strong> 07<br />
MLS / Statoil AHTS <strong>North</strong>ern Corona<br />
Supporting Erik Raude –<br />
Extended until Sept 07<br />
Extension<br />
Nexen Petroleum PSV Highland Navigator Supporting GSF Galaxy III - circa 10 months April 07<br />
Supporting GSF Galaxy III –<br />
Nexen Petroleum PSV <strong>North</strong> Mariner<br />
<strong>March</strong> 07<br />
Frontrunning for H Navigator<br />
Peterson PSV Rig Express Cargo Duties - Extended until end April 07 Extension<br />
Peterson PSV Sical Torino Pool Support Duties - 1 year + opts April 07<br />
Rovtech PSV Highland Eagle ROV duties - Extended until End <strong>2007</strong> Extension<br />
Saipem AHTS Blizzard<br />
Tow & Assist with Castoro 6 –<br />
Circa 3 months<br />
April 07<br />
Saipem AHTS Boulder Tow & Assist with Castoro 6 – Circa 3 months April 07<br />
<strong>Sea</strong>bird Exploration PSV/ROV Siem Mariner Siesmic Support Services – 5 years July 07<br />
Shell - UK PSV <strong>North</strong> Prince<br />
Supporting Sedco 711 –<br />
Extended until April 07<br />
Extension<br />
Statoil PSV Edda Frigg Pipehaul Duties - Circa 85 days. April 07<br />
Statoil AHTS Strilborg All Duties - Extended until July 07 Extension<br />
Statoil PSV Toisa Independent Pipe Haul - Circa 3 months April 07<br />
Subsea 7<br />
MSV/PSV Edda Fjord<br />
Support Duties –<br />
Extended until May 07 + opts<br />
Extension<br />
9 – 11 Folgate Street<br />
London E1 6BX<br />
Telephone No +44 (0) 207 3779774<br />
london@offshore-shipbrokers.co.uk
continued ….<br />
Talisman PSV Acadian <strong>Sea</strong> Supply Duties - Extended until April 08 Extension<br />
Team PSV Far Grimshader Cargo Duties - Extended until April 07 Extension<br />
Team PSV Island Patriot Cargo Duties - Extended until April 07 Extension<br />
Total E&P PSV <strong>North</strong>ern Mariner<br />
Support Duties –<br />
Frontrun for <strong>North</strong>ern Supporter<br />
April 07<br />
Total E&P PSV<br />
Support Duties until delivery<br />
<strong>North</strong>ern Supporter<br />
of <strong>North</strong>ern Wind<br />
May 07<br />
Total E&P PSV <strong>North</strong>ern Wind Support Duties - Circa 18 months Dec 07<br />
Acergy - West Africa AHTS <strong>Sea</strong> Cheetah<br />
Latest Fixtures - International<br />
All Duties –<br />
Extended until end Aug 07<br />
Extension Angola<br />
Blue Marine PSV Boa Rover Subsea Construction Work - 1 year <strong>March</strong> 07 Mexico<br />
General Support –<br />
BP - Egypt PSV Greatship Disha<br />
Extension Egypt<br />
Extended until End May 07<br />
Eni AHTS Maersk Mahone All Duties - Extended until end <strong>2007</strong> Extension Libya<br />
General support –<br />
Gazprom AHTS Boa Princess<br />
Extension India<br />
Extended until end June 07<br />
Pemex PSV Bourbon Himalaia Support duties <strong>March</strong> 07 Mexico<br />
Petrobras PSV Skandi Yare Pool Support Duties - 4 years firm Sept 07 Brazil<br />
Petrobras AHTS A.H.Genoa General Duties - Extended until Jan 08 Extension Brazil<br />
Petrobras<br />
Petrobras PSV Toisa Tiger<br />
Petrocanada<br />
Premier Oil<br />
AHTS Normand Hunter General Duties - Extended until July 07 Extension Brazil<br />
AHTS Burin <strong>Sea</strong><br />
AHTS Sudhaksha<br />
Exploration Support –<br />
Extended until May 07<br />
General support –<br />
Extended until end <strong>2007</strong><br />
Support Duties –<br />
Extended until end May 07<br />
Extension Brazil<br />
Extension Canada<br />
Extension India<br />
Prosafe AHTS Toisa Dauntless Supporting Bristolia May 07 Sakhalin<br />
Reliance Industries AHTS Subhiksha Support Duties - 2 years + opts <strong>March</strong> 07 India<br />
Total Congo PSV <strong>Sea</strong> Halibut Cargo Duties - 6 months + opts May 07 Congo<br />
Outstanding Requirements - <strong>North</strong> <strong>Sea</strong><br />
Acergy 4-6 PSVs for Pipehaul duties Oct-08<br />
Apache PSV 10 – 15 years + opts Mid 08<br />
Island / ADTI AHTS 3 wells firm + opts Apr-07<br />
MLS AHTS for 2 years + opts Aug 08<br />
MLS 4 x PSV’s – 4 weeks firm + opts April 09<br />
Maersk Oile Og Gas 2 PSV’s – 1 or 2 years firm + opts June 07<br />
Peak 2 x PSV’s – Circa 6 months June-07<br />
Statoil AHTS Assist Acergy Piper – 70 days May-07<br />
Team PSV 1 – 3 years + opts June-07<br />
Total E&P 3 x PSV’s 5 years +opts June 07<br />
Venture / BG PSV 1 - 2 years June-07<br />
13 Rubislaw Terrace<br />
Aberdeen AB10 1XE<br />
Telephone No +44 (0) 1224 628788<br />
aberdeen@offshore-shipbrokers.co.uk<br />
9 – 11 Folgate Street<br />
London E1 6BX<br />
Telephone No +44 (0) 207 3779774<br />
london@offshore-shipbrokers.co.uk
Outstanding Requirements - International<br />
ONGC Up to 30 vessels, PSV's, AHTS & MSV's 1-5 years 2006-2008 India<br />
Petrocanada 2 x AHTS 12,000 BHP –4 wells + opts July 07 Trinidad<br />
Petrobras PSV – Circa 24 months April 07 Brazil<br />
Petrobras PSV – Circa 24 months June 07 Brazil<br />
Rana Diving DPII DSV with Helideck, 50t crane – 60days + opts April 07 Italy<br />
Saipem 3 – 4 Pipehaul vessels – 3 months June 07 Singapore<br />
Santos 2xAHTS supporting Ocean Patriot - 1 year + opts May-07 Austrailia<br />
Saudi Aramco 24 AHTS – 5000bhp– 5 years firm Jan-July 07 Med<br />
Shell Nigeria 2 x PSV’s – 3 years firm Aug-07 Nigeria<br />
Shell Pakistan PSV – 1 well April 07 Pakistan<br />
Statoil 2 Vessels to Support Drilling ops – 2 years Aug 07 Nigeria<br />
Total MPSV, AHTS, PSV – Multiple periods & workroles June-07 Congo<br />
ERRV VESSELS<br />
<strong>March</strong> was another extremely buoyant month for ERRV owners with vessel availability once again extremely<br />
tight. Last month, many owners were of the opinion that they would see improved availability from <strong>March</strong><br />
onwards however this situation has changed somewhat with a steady stream of requirements coming to the<br />
market and ongoing delays in BP’s Jigsaw programme.<br />
It is now expected that Jigsaw will now not become active in the central <strong>North</strong> <strong>Sea</strong> until around late April /<br />
early May time and BP have extended a number of ongoing ERRV charters to cover this. This has now left<br />
availability extremely limited for the coming months with both spot and terms rate remaining firm, one<br />
charterer during <strong>March</strong> in fact is reported to have paid £20,000 per day for a 21 day ERRV fixture!<br />
Fixtures<br />
ADTI / Island Viking Supporter 3 wells + 1 well opt April 07<br />
Oilexco Esvagt Supporter 1 year + 2 x 1 year opt April 07<br />
Statoi Ocean Tern 9 months + 6 x 1 opts May 07<br />
Statoi Normand Draupne Extended until June 2008 Extension<br />
Venture Viking Vedette 60 days + 60 daily opts April 07<br />
Outstanding Requirements<br />
BG / Venture ERRV 2 years supporting NTVL June 07<br />
BP ERRV for 5years, 15 years or life of field Late 07<br />
Chervron UK ERRV 95t Bp Supporting Alba – 5 years + opts <strong>March</strong> 08<br />
Nexen ERRV 130 days supporting John Shaw June 07<br />
Nexen ERRV 1 year firm + 2 x 1 year opts July 07<br />
Statoil ERRV 90 days + opts June 07<br />
Total E&P ERRV 1 well (circa 60 days) May 07<br />
Venture ERRV 60 days + 60 daily opts April 07<br />
13 Rubislaw Terrace<br />
Aberdeen AB10 1XE<br />
Telephone No +44 (0) 1224 628788<br />
aberdeen@offshore-shipbrokers.co.uk<br />
9 – 11 Folgate Street<br />
London E1 6BX<br />
Telephone No +44 (0) 207 3779774<br />
london@offshore-shipbrokers.co.uk
SALE & PURCHASE<br />
Newbuildings<br />
Wilson & Sons have signed a contract with Damen Shipyards to build eight PSVs with delivery by 2010. Six<br />
will be of Damen 7216 deign with a deadweight of around 3,000 tonnes whilst the two larger PSVs of Damen<br />
8816 design will have a deadweight of around 4,500 tonnes. All vessels are contracted to Petrobras.<br />
Gulf <strong>Offshore</strong> has signed a contract with Aker Yards for two PSVs of Aker PSV 09 CD design at a contract<br />
price of approximately NOK 530 million. Delivery is scheduled to be in the fourth quarter 2009 and second<br />
quarter 2010. They will be 86.6 metres long, have a breadth of 19 metres and a deadweight of 4,850 tonnes.<br />
The vessels will be equipped with DP, diesel electric propulsion and will have clean class notation.<br />
GDV Shipping AS in Arendal has signed a contract with Aker Yards for a PSV of Aker ROV 06 CD design at<br />
a contract price of approximately NOK 400 million. The vessel is scheduled to deliver in the fourth quarter of<br />
2009. There is also an option for a similar vessel for delivery in the second quarter of 2010.<br />
Hartmann Logistik has ordered another four AHTS of Moss 424 design from the Fincantieri shipyard in Italy.<br />
They will have 16,000 bhp and are scheduled to deliver in October and November 2009 and February and<br />
May 2010.<br />
Secondhand<br />
Scotsman <strong>Sea</strong> (Blt.1982 - 6760BHP) has been sold and delivered to Ocean Scotsman Limited (Sartor<br />
Shipping Limited) on private terms.<br />
Nomis Shipping has purchased the survey vessel Ocean Service (Blt.1981) and renamed it Dea Surveyor.<br />
The vessel was handed over during early <strong>March</strong> and is currently uncommitted and en route to Singapore.<br />
13 Rubislaw Terrace<br />
Aberdeen AB10 1XE<br />
Telephone No +44 (0) 1224 628788<br />
aberdeen@offshore-shipbrokers.co.uk<br />
9 – 11 Folgate Street<br />
London E1 6BX<br />
Telephone No +44 (0) 207 3779774<br />
london@offshore-shipbrokers.co.uk
Tel: +44 (0) 1224 628788<br />
Fax: +44 (0) 1224 628782<br />
aberdeen@offshore-shipbrokers.co.uk<br />
www.offshore-shipbrokers.co.uk<br />
<strong>North</strong> <strong>Sea</strong> Spot Rate Analysis <strong>March</strong> <strong>2007</strong><br />
<strong>2007</strong><br />
2006<br />
2005<br />
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec<br />
Avg £ £53,573 £60,799 £68,034<br />
No. Fix 26 25 39<br />
Avg £ £11,593 £19,550 £37,551 £41,482 £37,001 £54,161 £61,413 £75,717 £59,790 £76,652 £49,037 £104,778<br />
No. Fix 28 28 19 28 49 34 44 54 32 61 24 21<br />
Avg £ £32,177 £26,708 £25,108 £14,276 £31,677 £31,144 £17,166 £22,778 £29,237 £32,506 £18,777 £30,567<br />
No. Fix 15 41 34 19 43 36 21 41 30 29 30 39<br />
Yr Avg<br />
£61,847<br />
90<br />
£54,878<br />
422<br />
£26,602<br />
378<br />
<strong>2007</strong><br />
2006<br />
2005<br />
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec<br />
Avg £ £20,886 £26,479 £25,383<br />
No. Fix 6 7 8<br />
Avg £ £9,423 £8,504 £20,014 £25,970 £28,452 £17,875 £27,333 £- £- £19,250 £17,700 £14,232<br />
No. Fix 9 5 2 12 7 4 3 - - 2 5 2<br />
Avg £ £10,694 £9,560 £11,200 £9,307 £13,908 £20,941 £12,332 £10,000 £16,875 £- £- £15,128<br />
No. Fix 7 7 10 12 15 2 6 1 4 - - 8<br />
Yr Avg<br />
£24,463<br />
21<br />
£19,355<br />
51<br />
£12,340<br />
72
<strong>2007</strong><br />
2006<br />
2005<br />
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec<br />
Avg £ £18,819 £24,403 £27,383<br />
No. Fix 26 11 19<br />
Avg £ £8,773 £11,659 £17,435 £25,085 £23,903 £25,294 £33,456 £39,095 £29,544 £13,212 £19,951 £38,508<br />
No. Fix 34 41 39 21 26 15 9 12 17 19 19 21<br />
Avg £ £18,943 £13,612 £12,141 £11,856 £24,085 £22,627 £15,407 £14,747 £17,113 £19,460 £9,538 £14,052<br />
No. Fix 28 34 22 39 22 22 37 27 28 24 25 26<br />
Yr Avg<br />
£22,822<br />
56<br />
£20,862<br />
273<br />
£15,774<br />
334<br />
<strong>2007</strong><br />
2006<br />
2005<br />
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec<br />
Avg £ £19,613 £32,049 £34,436<br />
No. Fix 19 13 18<br />
Avg £ £10,115 £11,984 £19,761 £27,959 £23,078 £26,878 £28,818 £- £27,824 £17,000 £20,450 £24,752<br />
No. Fix 15 9 13 13 10 10 11 - 5 21 26 12<br />
Avg £ £20,147 £15,717 £14,975 £12,547 £21,613 £20,371 £14,833 £15,344 £16,326 £22,605 £9,416 £14,269<br />
No. Fix 24 23 31 22 20 19 9 16 30 19 30 14<br />
Yr Avg<br />
£28,182<br />
50<br />
£20,837<br />
145<br />
£16,284<br />
257<br />
Note:<br />
1) "AHTS Semi Sub Rig Moves" includes all AHTS irrespective of size<br />
2) Only fixtures where rates are reported can be analysed therefore the number of fixtures shown does not necessarily<br />
reflect the total number of fixtures on the market.<br />
3) Actual rates are believed to be correct but not guaranteed