January 2012

As we enter 2012, it is sale season on the high street, but are there some bargains to be had in the offshore market ...

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SEABREEZE JANUARY 2012

January Sales
2012 has got off to a bit of a bang, with multiple newbuilds either being announced or delivered as well as a frenzy of term charter activity. Average north sea spot rates might not be too much of a bargain for charterers compared to the same period last year, however charterers had some cheer at the sustained steady high price of oil. There are still a number of term charters outstanding so we are sure there will be more vessels snapped up in the months to come. Read on for more details in this bumper 16 page edition of Seabreeze.

Contents:
Market Round-Up Feature Vessel Daily Availability -Rates & Utilisation North Sea Newbuildings, Conversions, Sale & Purchase Rig FPSO, Field and Oil company news. Conundrum Corner, Duty Phones Monthly Rates 1,2,4 3 5 6-10 11-14 15 16

Blue Fighter Is A Knockout !

The Blue Fighter 4200 dwt PSV has now been delivered by the Ulstein Verft shipyard. The Ulstein PX121 design PSV, owned by Blue Ship Invest, is the first of two medium to large sized platform supply vessels of the new design. After a brief spell on the spot market the Blue Fighter was taken by Apache for a long term charter in the North Sea, which will begin in early February 2012. The ship has a length of 83.4m and a beam of 18m. She has a cargo deck area of 875m2 and a total deadweight of 4,200 tons. Featuring the unmistakeable Ulstein X Bow, the Blue Fighter meets the requirements of DNVs Clean Design, has a maximum speed of 15 knots and accommodation for 24 personnel. This vessel sets a new standard in fuel efficiency and environmental impact.

The Seabreeze Monthly Market Report is distributed worldwide through our offices in Aberdeen, Stavanger, Singapore and Rio de Janeiro. Production and Administration: Seabrokers Ltd, Aberdeen For your free copy of Seabreeze, email: chartering@seabrokers.co.uk

Peterson pair
The UT755L Skandi Waveney has been fixed to Peterson Den Helder BV on a one year firm contract plus two one year options. The 2001 built PSV owned by DOF has commenced the contract in the Dutch sector. Peterson were also busy chartering the Portosalvo for one year firm plus one year option. The Gulf Offshore managed PSV commenced the work at the start of 2012 shortly after finishing its last term contract with GDF Suez at the end of last year. The 2005 built Portosalvo will be carrying out supply duties for Peterson in the southern sector of the North Sea.

Allseas take 5
Allseas have chartered a handful of vessels for their Laggan Pipehaul project. Duration is expected to be about 50 days and commencement is expected to be April 2012 :- Bourbon Front, Brage Supplier, Edda Freya, Edda Frigg and Ocean Pride are the PSVs fixed for this. Seabrokers Group was established in 1982. We work in the areas of shipbroking, development and facility management of property, radar based sea tracking, man-free decks and Entrepreneur Services. Our head office is situated in Stavanger, but we also have offices in Bergen, Aberdeen, Rio de Janeiro and Singapore. Please visit www.seabrokers-group.com for more information. 2

Seabrokers Group Forusbeen 78 4033 Stavanger Norway

DESIGN FEATURE: PAGE 3 STUNNA

Page 3 Stunna...

Normand Arctic

DEPARTURES & ARRIVALS Dec /Jan Arrivals - North Sea Spot Solstad Offshore ASA (SOFF) has taken delivery of Normand Arctic from STX OSV AS, Langsten. She was christened by the godmother Jorunn Dysvik Christensen on Saturday 19th November at the dock in the shipyard. The Normand Arctic is a large LNG fuelled platform supply vessel (STX PSV12 LNG). She will be trading in the North Sea for Statoil for a firm period of 3 months with an additional 6 monthly options. This will be the 6th PSV with LNG propulsion that Statoil has under current term operation. Spec Details:Length Overall: Length between pp: Breadth moulded: Depth main deck: Deck area: Main propulsion: propulsion, output 1200 rpm 94.3m 84.9m 20m 8.3m 1000m2 2 x electric motors for 2200 kw, 690v, 60Hz, Laid Up - North Sea
Clywd Supporter North Truck Ocean Mainport Sunderland Sunderland (March reactivation) Brage Viking FD Remarkable Olympic Commander Newbuild newbuild Newbuild

Departures - North Sea Spot

Adinath One Siem Louisa Sophie Siem SBS Typhoon To West Africa, ENI To West Africa, ENI To RWE DEA

Northern Crusader

Leith

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MARKET ROUNDUP

Durga Devi supporting ENSCO 70

The Durga Devi has been chartered by RWE-DEA to support the jackup ENSCO 70 on a supply duties programme lasting four wells firm, plus five wells of options. The 2010 built PSV is expected to commence the charter around March. In the meantime she will be carrying out work on the spot market for RWE -DEA.

All the good girls marry a sailor..

The 1997 built UT722 AHTS Far Sailor has been contracted by Petrobras until the end of February 2012 and will replace the Far Scouts two year contract awarded by Petrobras in November 2011 (reported in the last edition of Seabreeze). Far Sailor will therefore be in service for Petrobras in Brazil for an additional 2 year period.

DeepOcean Group charters construction vessel

Subsea engineering and trenching services provider DeepOcean Group Holding AS announced a new long term charter agreement with REM Ship AS for the multi purpose offshore construction vessel Rem Forza. DeepOcean says the charter marks an important step in its strategy to strengthen its position as a leading global subsea provider. The agreement is for three years with an option for an additional two years.

Statoil fix two newbuilds

Statoil has fixed the newbuild vessels Normand Arctic (a 4900 dwt PSV) and the VS485CD Troms Artemis on term charters lasting three months firm plus additional monthly options. The Normand Arctic was delivered from the STX Langsten yard in mid December (see also p3) and has already commenced its work with the charterer offshore Norway. The Troms Artemis, which was delivered from the Hellesoy Verft yard at the start of the December, began its charter with Statoil on December 20th in direct continuation of its spot fixture with the same charterer.

Demand for offshore supply ships will rise 10%

Frankfurt based analysts from DVB Bank advised they expect demand for anchor handing tug supply (AHTS)vessels to increase by 9.5% year-on-year in 2012 and 2013, to reach 1381 vessels. PSV demand from a current fleet of 2108 vessels is forecast to increase by 10% in 2012 and 2013. Both vessel groups are expected to see annual fleet growth rates of around 9% during the same period. AHTS vessels with more than 10,000 brake horsepower are set to gain the most in utilisation rates, the analysts said, forecasting a return to 2008 levels by 2013 with a more moderate growth rate expected for smaller vessels.

SBS Typhoon fixes to RWE Dea

VS470 MKII SBS Typhoon has been fixed on a term charter with RWE Dea lasting three wells firm plus three well options. The 3800 dwt PSV commenced the contract in mid January with the firm period expected to last until September 2012. The 2006 built SBS Typhoon will be supporting the jackup ENSCO 92.

Siem Louisa and Sophie Siem head to West Africa

ENI in Ghana have fixed the Siem Louisa and Sophie Siem PSVs on term charters and both vessels are currently en route to the West Africa region. The Siem Louisa is fixed for 100 days and the Sophie Siem for 180 days while ENI has further options available on both of the 2006 built PSVs. Once the vessels arrive in Ghana the charter will commence. Both vessels had been trading the North Sea spot market since returning from term work in Greenland. 2 4

DAILY AVAILABILITY - RATES & UTILISATION NORTH SEA

North Sea Vessel Utilisation

January
28 26
24

PSV 2012 AHT S 2012

PSV 2011 AHT S 2011

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 Jan 2012
Type Jan 2012 Dec 2011 Nov 2011 Oct 2011 Sept 2011 Aug 2011

Med PSV Large PSV Med AHTS Large AHTS

75% 88% 74% 70%

71% 83% 63% 81%

83% 79% 57% 46%

87% 77% 73% 87%

80% 86% 74% 85%

82% 91% 78% 86%

North Sea Average Rates Jan 2012

Category Average Rate Jan 2012 Average Rate Jan 2011 % Change

North Sea Day Rate Levels - Spot Market Jan 2012

Category Minimum Maximum

All Cargo Runs Cargo Runs

PSVs up to 800M2

8,425 7,833 9,032 16,803

4,101 3,536 7,639 6,826

105.4% 121.5% 18.2% 146.2%

All Cargo Runs Cargo Runs

PSVs up to 800M2

5,150 5,150 5,250 9,500

21,400 13,700 21,400 33,000

Cargo Runs
PSVs over 800M2

Cargo Runs
PSVs over 800M2

CNS/NNS/WoS Rig Moves

Rig Moves
Excluding Southern Sector

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NEWBUILDINGS, CONVERSIONS, SALE & PURCHASE

Skandi Feistein delivers

The Skandi Feistein has been delivered to owner PSV Invest I AS from STX OSV Aukra. The STX PSV 09 CD will be operated by DOF Management AS and has commenced a 6 year contract with Conoco Phillips Scandinavia AS.

First PSV of PX106 design named in Brazil

The naming ceremony of the first PSV of the PX106 design from ULSTEIN ever built has taken place in Rio de Janeiro, Brazil. The vessel CBO Atlantico is the first in a series of 6 PSVs with X-Bow hull line design from ULSTEIN to be constructed at Estaleiro Alianca shipyard for Brazilian shipowner CBO ( Companhia Brasileira Offshore). CBO, which already has two PSV of P106 design from ULSTEIN in its fleet, is the first shipowner to order X -Bow vessels in Brazil. CBO ordered two PX106 and two PX105 designs from ULSTEIN at the end of 2009 and an additional two PX105 designs in April 2011. The contracts include delivery of design, engineering, main equipment and building follow-up. The second PX106 is to be delivered at the beginning of 2012 while the four PSVs of PX105 design will be delivered during 20122013. The CBO Atlantico entered into an 8 year contract with Brazilian state oil company Petrobras in December 2010.

VOS Ares delivered to Vroon Offshore Services

Vroon Offshore Services (VOS) have taken delivery of a new addition to their offshore fleet. The VOS Ares is an A class AHTS and she was delivered from the Fujian Southeast Shipyard in China. She is the fifth in a series of six vessels being built at this yard for Vroon, with the last vessel also scheduled for delivery this month. These A Class vessels are slightly more advanced than the H-type and T-type AHTS vessels also operated by Vroon, having a bigger bow thruster (8mt) and stern thruster (6mt). Consequently they have improved manoeuvring and station keeping capabilities and they have DP1 notation. VOS Ares left the yard early January and is to be operated by Vroon Offshore Services Pte Ltd in Singapore.

Northern River Sold

The UT745L multi purpose support vessel Northern River has been successfully delivered to her new owners Serco Ltd. The 1998 built DPII MPSV had until recently been trading in the North Sea subsea projects market under ownership of Deep Ocean Shipping AS.

New contract signed with Shinan Heavy Ind Co Ltd

Marin Teknikk AS has signed an agreement with Shinan Heavy Ind Co Ltd in Korea for design and engineering of the companys new PSV vessel. The vessel is a multipurpose Field Supply Vessel & Pipe carrier of MT6015 PSV design with diesel electric frequency controlled propulsion, highly efficient azimuth thrusters and a dynamic positioning system DPII. The vessel has a large under deck tank capacity, a length of 93.8m and a breadth of 20m with accommodation capacity for 25 persons. The cargo deck area is 1060 m2 and has capacity to carry 5 pipe lengths. Delivery is planned for the first quarter of 2013. 6 5

NEWBUILDINGS, CONVERSIONS, SALE & PURCHASE

Fugro signs contract with Wilson Sons

Fugro Brasil has signed a contract with Wilson Sons to build a DP -2 ROV Support Vessel in Brazil. The vessels total length is 83m with a main deck space of 520 m2, gross tonnage of 4,400 tonnes and accommodation for 60 personnel. The vessel will be built at Wilson Sons shipyard in Guaruja in Sao Paula State. It meets all operational requirements of the Brazilian market, will be classified under Lloyds Register, be Brazilian flagged and is scheduled for delivery in February 2014.

Deep Sea Supply takes delivery of Sea Stoat

Deep Sea Supply have taken delivery of the newbuilding AHTS Sea Stoat from ABG Shipyard, India. The Sea Stoat is a 6800bhp AHTS of Seatech P -729 design and is the ninth anchor handler delivered from ABG, concluding the series of vessels from ABG to Deep Sea Supply. The Deep Sea Supply fleet now consists of 15 AHTS and 8 PSVs.

Caballo Xanthus delivered

Shipyard De Hoop has now delivered the vessel Caballo Xanthus. This is the 3rd of De Hoops KISS -design and she is now on her way to Mexico. Once in Mexico the final components of a mud -plant shall be installed and then the vessel shall commence her contract in the Mexican Gulf with PEMEX. The PSV / KISS -design is an environmentally friendly vessel with diesel electric propulsion. With its simple and unique construction the vessel is purposely designed for offshore supply operations. It can accommodate up to 30 personnel and has a navigation bridge with a 360 degree view. NEWBUILDS (PREDOMINANTLY EUROPEAN) Main Spec:DELIVERED JANUARY 2012 Length Overall :- 67m Vessel Type/Design Owner / Manager Commitment Length Between p.p :- 61.91m Length Waterline :- 64.496m FD Remarkable UT755XL Fratelli North Sea Spot Beam Moulded :- 12.8m Depth Moulded :- 5.5m STX Normand Arctic Solstad Statoil Draught :- 4.63m PSV12LNG Work Deck Area :- 422 m2
Skandi Feistein VOS Ares Blue Fighter Brage Viking Olympic Commander Pacific Python Greatship Vidya STX PSV09 AHTS PX121 AHTS MT6015 AHTS AHTS DOF Management AS CCP Scandanavia AS Unknown Apache North Sea Spot North Sea Spot Unknown Unknown Vroon Offshore Serv. Blue Ship Invest TransAtlantic OIympic Shipping Swire Pacific Offshore GIL

NEWBUILDINGS, CONVERSIONS, SALE & PURCHASE

Remarkable new delivery

The FD Remarkable was delivered on the 7th January 2012 approximately 12 months after building commenced. The Rosetti Marino yard in Ravenna, Italy delivered the PSV to Fratelli DAmato. Like her predecessors she has a length of 75m, breadth of 16m and a deadweight of over 3000 tonnes. The vessel is a UT755XL and is the 7th of 755 origin to be delivered to Fratelli DAmato by the yard. The 2950 dwt PSV will mobilise to the North Sea where it is expected to be available for charter early February. Fratelli has a sister vessel on order at the same yard, the FD Incomparable, which is due to deliver in June.

Brage Viking delivers

TransAtlantic has taken delivery of the Brage Viking, an AHTS vessel from the Astilleros Zamakona S.A shipyard in Spain. The vessel will be flagged up in the Danish register of ships, DIS. Brage Viking is the last new-build ship in a series of four all of which have been built at the Spanish shipyard. The vessel series is specifically designed to meet demands for efficient, safe and environmentally friendly offshore management in areas with severe ice conditions such as the Barents sea. We already have a strong operational presence in these waters and expect a continued increasing demand for our services, says Christian W. Berg, Head of Business Area Offshore/Icebreaking. Brage Viking has the following technical data: AHTS, ice 1A, stand by vessel, oilrec, clean design. Deck area 750 m2, length 85 m, beam 22 m, 4,500 deadweight tons and complies with the most up-to-date regulations pertaining to oil recovery.

Olympic Commander named

Kleven yard's first delivery in a series of three to Olympic Shipping has now arrived. The MT 6015 multipurpose platform supply vessel Olympic Commander features a 60 man accommodation and a crane foundation for 150 tons. The internal subdivision of the hull is tailor made as the vessel is designed to comply with the latest SPS regulations. Just aft of the superstructure she has a foldable Mezzanine deck installed for ROV operations. With main dimensions of 93x21m she offers 1060m2 of cargo deck, and amongst others holds a capacity of not less than 2380m3 of recovered oil (way above the NOFO 2009 requirements). The next two vessels in this series designed by Marin Teknikk are due for delivery later this year, and will also feature additional Ice strengthening (1B) and De-Ice notation. Hundreds of people took the opportunity to embark the vessel as an open ship was held during the naming ceremony in lesund on January 14th. And it was quite clear to the visitors that Olympic Shipping had ensured that the crew was to have the utmost comfort level whilst being away from home.

NEWBUILDINGS, CONVERSIONS, SALE & PURCHASE

Oceanic 5000 delivers

UAE based Oceanic Marine Contractors (OMC) has taken delivery of its state of the art Oceanic 5000 which will serve the offshore oil and gas construction sector. The vessel is the largest of its type in the region and is designed for worldwide operations and will focus on the installation and removal of subsea pipelines and offshore structures. The multi purpose GL classed vessel recently arrived in the UAE where it is being prepared for its first project installing jackets, topsides and subsea pipelines in the Gulf. Oceanic 5000 was built at the ZPMC shipyard in Changxing. The Oceanic 5000 is capable of laying pipes of up to 60 inches in diameter and in water depths of up to 300 metres with a lifting capability of 4400mt.

Boa sells two vessels

The Boa Mighty and the Boa Magnitor, both 7000 bhp AHTs, have been sold by Boa Offshore to undisclosed buyers. It is thought that the 2006 built Boa Magnitor has been sold to Valentine Maritime and renamed VM Legend. The vessels have now been delivered to their new owners as both had previously spent the majority of the winter months laid up off Hirtshals, Denmark.

Pacific Python delivers to Swire Pacific Offshore

Swire Pacific Offshore have taken delivery of the Pacific Python which is the last of the eight new P Class AHTS vessels built by Quingdao Qianjim Shipyard. This marks the successful completion of the major part of an ongoing fleet replacement programme and follows on from the delivery of her sister vessel Pacific Porpoise at the beginning of November. Equipped with a 150 tonne line pull winch, both vessels are IMT957 design with 5000 bhp and a bollard pull of 64 tonnes. The versatile, fuel efficient vessels are well suited to perform a wide range of offshore support activities.

Siem Danis sold

Siem Offshore has sold the VS470 MKII Siem Danis to an undisclosed buyer for USD 34 million. The 2006 built PSV will be delivered to its new owner during the first quarter of 2012, with the sale representing a gain of USD 14 million for Siem Offshore. The Siem Danis is currently available for charter on the North Sea spot market having just returned from work off Greenland. In a statement to the Norwegian Stock Exchange Siem said The sales proceeds will be used to repay debt of approximately USD 20 million and to strengthen the companys cash position for business development purposes.

NEWBUILDINGS, CONVERSIONS, SALE & PURCHASE

Rem Offshore sells Fortune

The MT6012 Rem Fortune has been sold by Rem Offshore to Nigeria based Marine Platforms Limited with the Norwegian company recording a booked profit of NOK 110 million (USD 18.5 million) on the deal. The 2010 built vessel which has been trading the North Sea spot market since October, is currently undergoing modifications ahead of the handover to its new owners. The Rem Fortune is expected to mobilise to West Africa after the work is completed where she will operate as a subsea vessel. Marine Platforms Limited are expected to take delivery of the 4600 dwt PSV during the first quarter of 2012.

Mainport to invest $36m on survey supply ship

Marine Services firm Mainport is investing $36 million to build three supply vessels which will support seismic survey ships searching for oil and gas deposits. The bulk of the financing for the construction of the ships has been provided by Dutch bank ABN Amro with a syndicate of Irish investors assembled by Westboro Finance in Cork providing $5 million in short term financing. The three ships, which will provide support services for an unnamed client carrying out offshore seismic surveys around the world, are being constructed at Shin Yang Shipyards in Malaysia and will be delivered in mid 2013.

Jurong Shipyard breaks ground for new facility

Singapore group Sembcorp Marine reports that its subsidiary Jurong Shipyard has broken ground at its Estaleiro Jurong Aracruz facility, the Groups first overseas integrated new yard in Espirito Santo, Brazil. Sembcorp says that the construction and development of Estaleiro Jurong Aracruz, a wholly -owned, locally incorporated new Brazilian shipyard, is in line with its global hub strategy to further strengthen its foothold in Brazil. The country was chosen as a strategic growth hub due to its recent oil and gas discoveries in the offshore pre -salt fields, Petrobras' investment plan for its exploration and production sector, the requirement to have Brazilian local content in its offshore platforms projects as well as its close proximity to the oil and gas fields of the Atlantic, Gulf of Mexico and West African sectors. Strategically placed close to the oil and gas Basin of Espirito Santo, one of Brazil's pre-salt reservoirs, Estaleiro Jurong Aracruz is situated on an 82.5 hectare site with 1.6 km of coastline in the municipality of Aracruz in the state of Espirito Santo - Brazils second largest oil producer. Estaleiro Jurong Aracruz has successfully obtained the environmental license, a pre -requisite for the commencement of shipyard construction in Brazil. The facility will be developed over a period of three years and in stages with full completion scheduled for end 2014. Planned shipyard facilities include a 120m x 380m drydock, a 1km berthing quay as well as ancillary piping facilities and steel fabrication workshops. Estaleiro Jurong Aracruz will have capabilities to undertake construction of drillships, semi-submersible and jackup rigs, platforms, supply vessels, the integration of FPSOs and topside modules fabrication, in addition to the traditional activities of drilling rig repairs, ship repairs and modification/upgrade works. The ground-breaking ceremony, held on 19 December 2011 in Brazil to mark the commencement of Estaleiro Jurong Aracruz construction works, was officiated by the Governor of Espirito Santo, HE Renato Casagrande. The occasion was witnessed by Sembcorp Marines chairman Goh Geok Ling as well as directors Tan Sri Mohd Hassan Marican, Lim Ah Doo and Ron Foo. Wong Weng Sun, president and CEO of Sembcorp Marine and managing director of Jurong Shipyard, who was also present at the ground -breaking ceremony, said: "We are here at the right place and right time. The ground -breaking for the development of Estaleiro Jurong Aracruz will provide a clear signal to the Brazilian oil and gas market that Sembcorp Marine is completely committed to continue its services to them, in their country. With our two decades of experience servicing the Brazilian oil and gas Industries, Estaleiro Jurong Aracruz will substantially strengthen our ability to meet our major clients' needs especially in developing the recently discovered giant pre-salt oil and gas reservoirs. The Brazilian oil and gas market considers us a major player there." The preliminary projection of the development costs of the new yard is estimated to be around $550 million. It will be funded through a combination of debt and internal funds generated from operations of existing shipyards.

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NEWBUILDINGS, CONVERSIONS, SALE & PURCHASE

Greatship Vidya AHTS delivers

Greatship (India) Limited (GIL), a subsidiary of The Great Eastern Shipping Company Limited has taken delivery of Greatship Vidya, a 150T Anchor Handling Tug / Supply Vessel, from Drydocks World -Singapore Pte. Ltd. Singapore. Greatship Vidya is a Class II DP vessel equipped with Fire Fighting Capability and has been built complying with the new SPS Code 2008. With the delivery of Greatship Vidya, GIL and its subsidiaries currently own and operate four PSVs, eight AHTSVs, three MPSSVs, three ROVSVs and two jack up rigs. GIL and its subsidiaries also have an order book of five vessels - one MSV in India, three ROVSVs in Sri Lanka and one 150 TBP AHTSV in Singapore as well as one 350 feet jack up rig in Dubai.

Maersk Supply Service orders two multi purpose AHTS

Maersk Supply Service has ordered two AHTS vessels to be built at the Asenav yard in Chile at a cost of almost USD 100 million each. The Danish owner also has options to order up to four more vessels of the same design at the yard. The 15,000 bhp AHTS will have a bollard pull of 150 tonnes and has been designed for operations in Canada including iceberg management and standby duties. Delivery of the two newbuilds is expected in February 2014 and January 2015 respectively.

Shipyard secures a US$140m contract

Sembcorp Marines subsidiary Sembawang Shipyard has secured a US$140 million contract from Equinox Offshore Accommodation Limited to convert a ropax vessel into a DP2 Accommodation and Repair Vessel (ARV). To be named ARV3 the vessel arrived in the shipyard in January 2012 for the conversion and modification works. The completed ARV3 will be a diesel electric DP2 high specification vessel uniquely designed and equipped to provide extensive accommodation and workshop facilities to support and service offshore facilities and projects in deep water areas. ARV3 will have accommodation facilities to comfortably house a complement of 450 persons. Upon completion in the 4th quarter 2012 the ARV3 will be deployed to support offshore works in Brazil for five years under a contract with Petrobras.

Stanford Hobby ready

Stanford Marine are due to take delivery of the new build MMC 887 design DP2 PSV Stanford Hobby shortly . The vessel is ready so as soon as the Chinese New Year holidays are over, expected to be the first week of February 2012, she will be delivered. The sister vessel delivered in November 2011 has entered into a long term contract on delivery with an oil major in East Africa.

Gulf take the option to build another PSV

Gulf has taken an option to build another ST 216 Arctic PSV at Simek yard in Norway. The vessel is identical to the first vessel contracted in September and will be delivered in November 2013. The price is reported to be in the region on NOK 350 -360m.

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RIG FPSO, FIELD AND OIL COMPANY NEWS

Norway hits the well wall

The Norwegian Petroleum Directorate (NPD) expect the number of exploration and appraisal wells to be drilled off Norway in 2012 will remain flat compared with the 54 completed last year as a shortage hits drilling capacity and costs. This compared with an increase in wells drilled last year from 41 in 2010 resulting in notable discoveries such as Avaldsnes-Aldous in the North Sea as well as Skrugard and Norvarg in the frontier Barents Sea where the latest Havis find has further raised prospectivity. The country achieved a find rate of 51% last year making a total of 22 discoveries across the North, Norwegian and Barents seas. The NPD director issued a stern reminder to Norwegian operators to maximise the resource potential of existing fields rather than focus on exploration in new and exciting frontier areas such as the Barents in presenting the agencys annual review on Monday. The agency aims to arrest declining Norwegian production over the coming years through boosting recovery from existing mature fields exploiting marginal finds in established areas making new discoveries and opening new area for exploration. The countrys exploration drive remains hampered by a dearth of rigs available to meet stringent regulations for operating off Norway and the Oil & Energy Ministry has established an expert group to look into ways of alleviating the rig bottleneck.

60 new offshore licences offered

Sixty new exploration licences have been offered by the Ministry of Petroleum and Energy to a total of forty two companies in Norways APA 2011 licensing round. Of those sixty ,thirty four have been awarded in the North Sea, twenty two in the Norwegian Sea and four in the Barents Sea. Licensing periods vary from five to eight years with work obligations including acquisition of, or reprocessing existing seismic data. Drill or drop options are offered on some of the blocks awarded with further obligations to reach development decisions within seven years of the licence being awarded.

Statoil oil discovery in Barents Sea

Statoil ASA has together with its partners Eni Norge AS and Petoro AS made a substantial oil discovery in the Havis prospect in the same licence as Skrugard (PL532) in the Barents Sea. Well 7220/7-1 drilled by the drilling rig Aker Barents has proved a 48 metre gas column and a 238 metre oil column. Statoil estimates the volumes in Havis to be between 200 and 300 million barrels of recoverable oil equivalents. The provisional updated total volume estimate for the Skrugard and Havis discoveries in PL532 is in the region of 400-600 million barrels of recoverable oil. Havis lies approximately 7 kilometres southwest of the Skrugard discovery made in April 2011 and within the same production licence but forms an independent structure.

Avaldsnes probe falls short

The latest appraisal drilled at the Avaldsnes discovery in the North Sea fell short of expectations for Swedish explorer Lundin Petroleum and looks set to hit resource estimates. The 16/5-2S well intended to delineate the southern flank of the find struck 15 metre Jurassic pay zone of which the upper eight metres was of excellent reservoir quality. Unfortunately they added Good hydrocarbon shows were observed below the oil -water contact but were currently evaluated as not producible hydrocarbons. The well was the first appraisal to be drilled in the southern part of Avaldsnes which Lundin had previously estimated could hold 300 million barrels of oil equivalent that would have boosted the finds current volume estimate of 800 million to 1.8 billion boe. The well was drilled by Fred.Olsen semi submersible Bredford Dolphin to a total depth of 2042 metres in a water depth of 111 metres. It was the first of at least four appraisals planned by Lundin this year on the licence and after the current well is permanently abandoned the rig will move to drill the next probe 16/2 -11. A revised resource estimate will be released after completion of the next appraisal according to the company.

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RIG FPSO, FIELD AND OIL COMPANY NEWS

Seven Havila claims world record for a DSV

The DSV Seven Havila recently achieved a world first for the number of divers working on the seabed from a single vessel. The diving test took place near Stavanger, Norway in a water depth of 30m. Seven Havila had eight divers on the seabed during the test. Both diving bells were in action together and while one diver stayed inside each diving bell, three divers from each diving bell worked outside.

Scarabeo 9 rig arrives in Cuba

A Chinese-built drilling rig that will be used in Cubas new push into offshore oil exploration has arrived in Cuba after visiting Trinidad and Tobago for its inspection by officials. Cuba hopes the oil project, which is due to begin this year, will breathe new life into its troubled economy. The new venture has aroused opposition in neighbouring Florida where officials worry any drilling for oil poses environmental risks. The Scarabeo 9s inspection by officials from the US Coast Guard and Interior Department lasted three to four days. Now the rig has arrived in Cuba it will be used at a well site north of Havana.

Prosafe to build new support rig

Prosafe will invest $350 million in the construction of a new harsh environment support rig based on belief in the long term offshore maintenance market in the North Sea. Jurong Shipyard in Singapore has been chosen to build a new semi submersible which is to be built to a GVA 3000E design and will be equipped with DP3 dynamic positioning system and 12 point mooring. It will be equipped with up to 450 single cabins for offshore support personnel. Delivery of the unit is scheduled for the 2nd quarter 2014 at a cost of US $350 million. Rig Utilisation
Location North Sea/Europe US Gulf Jan 2012 Jan 2011 Jan 2007

90.7% 61.9%

78.3% 47.3%

99% 83.9%

Rig Type
Semi Sub < 1,500 ft WD Semi Sub > 1,500 ft WD Semi Sub 4,000 ft + WD Drill Ship 4,000 ft + WD Jackup IC 300 ft WD Jackup IC 300 ft + WD Jackup MC 200 ft + WD

Average Rates US$

$240,000 $300,000 $412,000 $459,000 $89,000 $147,000 $55,000

Aibel orders in Dubai

Drydocks World has entered into a contract with Aibel, a Norwegian provider of services to the energy industry, that will see the Dubai shipyard build a Wind Power Offshore Platform to receive power generated from offshore wind farms. The project will be implemented at the Dubai shipyard. The platform named DolWin beta will be built for the large DolWin offshore wind farm cluster near Dollart in the German sector of the North Sea. The length of the platform is 92.3m and breadth is 72.8m. The fabrication of the GBS (Gravity Base Structure) Platform will start in July 2012 and it is expected to be delivered in December 2013. The accommodation structure for 16 personnel will be to NORSOK standards and will be fabricated and installed along with the heli-deck.

Inactive Rigs Northwest Europe

Name Sedco 712 JW McLean Stena Spey Energy Exerter GSF Galaxy I GSP Britannia Ex GSF Britannia Type SS SS SS JU JU JU Status Cold Stacked Cold Stacked Warm Stacked * Mid Feb / March conttract Likely re-activation Cold Stacked Being re-activated Location Cromarty Firth Cromarty Firth Invergordon Rotterdam Cromarty Firth Teeside

9 13

RIG FPSO, FIELD AND OIL COMPANY NEWS

Oil Price vs Rig Utilisation

100% $130
86.8% 88.6% 88.8% 87.9% 88.0% 88.9% 90.7% 90.7%

90%
80% 70% 60%
$96.53 78.3%

82.9%

83.5%

$123.15 83.6%

84.3%

$120
$116.84 $116.88 $110.02 $110.71 $107.65 60.2% 61.9% $100 $111.12

$114.50

$114.25 $109.22 $108.60

$110

$103.06
55.6% 56.0% 52.5% 53.7% 50.4% 56.0% 52.6% 58.6%

50% 40% 30%

52.4%

53.3%

47.3%

$90

$80

$70 20% 10% 0%

Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12

$60

$50

Average Brent Crude US$ / Bbl

European Rig Utilisation

US Gulf Rig Utilisation

ASCO secures UK contracts worth $139m

Aberdeen based logistics company Asco has secured renewals on three long term North Sea contracts worth more than $139million. Two of the contracts with Nexen are for offshore logistics, shore base services and marine gas oil provision in the central and northern North Sea. Worth around $29.4 million combined per year the contracts each run for four years with a further two one year extension options. The provision of materials management, logistics management, storage and warehousing, marine services, waste management, transport services and the provision of marine gas oil to Nexen chartered vessels are all part of the double contract deal. The Centrica Energy contract covers the provision of logistics management , transport, waste management, fuel and port services. The new Centrica Energy Upstream contract now covers the players northern North Sea drilling operations for the first time.

Cyprus finds Gas

Cyprus has approximately $129 billion (EUR 100 billion) worth of natural gas which will satisfy its electricity production needs for 210 years. Noble Energy have also discovered between 5 trillion and 8 trillion cubic feet of natural gas in the Block 12 Aphrodite field. Noble has the right to carry out exploratory drilling in a second part of block 12 while Cyprus has a total of 13 blocks in its EEZ. The gas could arrive in Cyprus in three to four years for domestic consumption.

Odfjell Drilling wins $1.2 billion contract

Norwegian rig contractor Odfjell Drilling has beaten rival Seadrill to win a prestigious contract worth $1.2 billion to build a custom made semi submersible for BPs Quadrant 204 project in the UKs West of Shetland region. The sixth generation newbuild unit will be built by South Korean yard Daewoo Shipbuilding & Marine Engineering and will be used for drilling as part of the redevelopment project on the Schiehallion and Loyal fields as well as in the Haltenbanken province off Norway. The contract, which is still subject to approval by the Quad 204 partnership, has a fixed duration of seven years with an additional three one year options. The $1.2 billion contract value for the fixed period would yield a dayrate of around $470,000 with the rig due to start operations in the fourth quarter of 2014. Construction engineering on the rig has started with keel laying scheduled for March 2013. 10 14

CONUNDRUM CORNER, DUTY PHONES

30 and still going strong

The Seabreeze archive

For the current or archive copies of Seabreeze go to: http:// www.seabrokers.co.uk/ - see under Shipbroking / Market Reports. If you wish to Subscribe or Unsubscribe please contact : chartering@seabrokers.co.uk

HAPPY BIRTHDAY SEABROKERS!

This year the Seabrokers group are celebrating 30 years of successful business. We would like to thank all our clients both old and new for their continued support and we are looking forward to the next 30 years!

Seabrokers Office Contacts

Seabrokers Limited - Aberdeen
Seabrokers House, Prospect Road Arnhall Business Park, Westhill Aberdeenshire AB32 6FE, Scotland Duty Telephone ++44 1224 747744 (24 Hrs) Duty Mobile ++44 7802 304129 Internet www.seabrokers-group.com E-Mail chartering@seabrokers.co.uk

Seabrokers Chartering AS - Stavanger

Forusbeen 78 - 4033 Stavanger - Norway Duty Telephone ++47 51 815400 (24 Hrs) Internet www.seabrokers-group.com E-mail chartering@seabrokers.no

Conundrum Corner
Last months teaser : A man travels by car to a destination 25 miles away. The journey was in rush hour so the roads were busy and progress slow. The journey took 75 minutes which means the average speed was 20 mph. He took the same route on the return and travelling at lunch time made much better time this journey only taking 25 minutes meaning the average speed for the return journey was 60 mph. What was the average speed for the two journeys combined? The correct answer is 30mph. Add the distances then adding the times, and then calculating a new average ie. 25 miles + 25 miles = total distance of 50 miles. 75 minutes and 25 minutes = total time of 100 minutes. 100 minutes = 1.6666 hrs. 50 miles divided by 1.6666 hrs = 30mph. And the winner is :- Peter Meyer This month, our poser is as follows : A man was regaling his recent adventures in the arctic to his two friends. The man said he had an amazing time, that he saw the Northern Lights, watched as an iceberg slipped off a glacier into the sea. He told of battling through snow storms, watching captivated as a polar bear devoured a penguin and smiling at the cuteness of the baby sealsHis friend then said to the man, you werent actually there were you?. The man gave in and eventually admitted he had been making it all up? How did his friend know he was lying ? Answers back to chartering@seabrokers.co.uk for a chance to win a bottle of wine.

Seabrokers Brasil Ltda - Rio de Janeiro

Rua Lauro Muller no 116, Sala 1404, Edificio Rio Sul Center Cep: 22.290-160, Botafogo, RJ - Rio de Janeiro, Brazil Duty Telephone ++55 21 3505 4224 (24 Hrs) Internet www.seabrokers-group.com E-mail rio@seabrokers-group.com

Seabrokers Pte Ltd - Singapore

165 B Telok Ayer Street, Singapore 068618 Telephone ++65 6224 6062 or 0951 Internet www.seabrokers-group.com E-mail chartering@seabrokers.sg

Securalift AS - Stavanger
Forusbeen 80 - 4033 Stavanger - Norway Telephone ++47 51 815400 Internet www.securalift.com

Sea Surveillance AS - Bergen

Lnningsflaten 28 5258 Blomsterdalen, Norway Telephone ++47 55 136500 Internet www.seabrokers-group.com

11 15

NORTH SEA AVERAGE SPOT MONTHLY RATES

40,000 30,000 20,000 10,000 2011 2012 25,000 20,000 15,000 10,000 5,000 2011 2012 30,000 Jan 3,536 7,833 Feb 5,412 Mar 8,465 Apr 10,355 May 10,923 Jun 19,838 Jul 16,574 Aug 13,828 Sep 16,894 Oct 13,023 Nov 10,870 Dec 8,448 Jan 4,101 8,425 Feb 5,814 Mar 8,871 Apr 10,705 May 12,771 Jun 20,450 Jul 17,940 Aug 15,823 Sep 19,222 Oct 15,427 Nov 12,337 Dec 9,820 -

All Cargo Runs

PSVs < 800M2

PSVs > 800M2

20,000 10,000 2011 2012 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 2011 2012 20,000

Jan 7,639 9,032

Feb 6,396 -

Mar 9,514 -

Apr 11,330 -

May 16,813 -

Jun 20,208 -

Jul 20,309 -

Aug 19,922 -

Sep 19,834 -

Oct 17,263 -

Nov 12,735 -

Dec 9,704 -

Rig Moves

Jan 6,826 16,803

Feb 10,187 -

Mar 15,347 -

Apr 23,803 -

May 17,260 -

Jun 40,000 -

Jul 30,356 -

Aug 44,280 -

Sep 39,295 -

Oct 71,964 -

Nov 20,967 -

Dec 22,655 -

Average Day Rates To Month (Jan 2012)

15,000 10,000 5,000 2011 2012 All Cargo Runs 4,101 8,425 PSV's <800M2 3,536 7,833 PSVs >800M2 7,639 9,032 Rig Moves 6,826 16,803

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