March 2007 North Sea Market Report - Offshore Shipbrokers

March 2007 North Sea Market Report
DRILLING RIGS
Reported Fixtures
BP, BG & Dong JU Maersk Guardian 510 days shared charter Mar-07
GSPC SS Essar Wildcat 4 wells + 2 x 4 well opts May-07
Norsk Hydro SS WilInnovator 5 –8 years on Troll Field June 09
Norsk Hydro SS WilPromotor 5 –8 years on Troll Field June 10
Marathon Oil SS Deepsea Bergen Extension - 8 months from Jan 08 Jan-08
Oilexco SS Ocean Guardian Extension - 1 year from April 08 Apr-08
Peak Group JU Ensco 100 1 year + 1 year opt Jul-07
Peak Group SS Sedco 704 1 year multi client / multi well Jul-07
Pemex SS Petrolia 932 days charter Oct-07
Providence SS Petrolia 1 well sublet - East Ireland May-07
Talisman JU Maersk Guardian 2 years Aug-08
Venture JU Noble Kolskaya 1 well sublet on Chiswick field Oct-07
Wintershall JU Noble George Sauvageau 1 year Jan-08
Wintershall JU Noble Linda Bossler Extension - 6 months from Jan 08 Jan-08
Operators with requirements for rigs
Antrim Energy SS One development well Feb-08
Chevron JU/SS 1 Year on Erskine location Jan-08
CNR HDJU/SS HPHT well - 120 to 160 days Sep-08
ENI Norway SS 3 wells Atlantic Margin Jan-08
ENI Norway SS 3 or 5 years + opts in Barents Sea Jul-09
EOG Resources JU 2 wells in East Irish Sea Jan-08
Exxon Mobil JU 1 Well 80 - 100 days Jun-07
Gaz De France HDJU 6 months HPHT work Jun-08
Helix RDS JU 2 wells on behalf of ERT / Deltiac Sep-07
Ithaca Energy SS 2 x SS for 2 development wells Jul-07
Ithaca Energy JU JU for 1 exploration well Jul-07
Maersk Oil UK JU 6 months + opts Aug-07
Marathon Oil SS HPHT work - 2 years firm + opts Dec-08
OMV UK JU 1 well circa 45 days Jan-08
Perenco JU 3 Wells Apr-07
Providence SS One well west of Ireland Mar-08
Revus Energy SS 2 exploration wells Jan-10
Rider Hunt SS 1 - 3 years, West of Shetland Feb-08
Rider Hunt JU 1 - 3 years, Sourthern N Sea Feb-08
13 Rubislaw Terrace
Aberdeen AB10 1XE
Telephone No +44 (0) 1224 628788
aberdeen@offshore-shipbrokers.co.uk
9 – 11 Folgate Street
London E1 6BX
Telephone No +44 (0) 207 3779774
london@offshore-shipbrokers.co.uk

continued ….
Senergy SS 1 year Jan-08
Senergy JU 1 year Jan-08
Shell Norway SS 4 years + opts Jan-09
Statoil SS Newbuld Drilling rigs - 3 to 10 years Aug-07
Statoil SS 13 wells (1035 days) + 3 well opts Dec-08
Total E&P HDJU/SS Circa 170 days Victoria Field Apr-07
Vermilion Exploration JU/SS 1 Well - Aquitaine Basin Sep-07
SUPPORT VESSELS
March was another excellent month for owners with the majority experiencing good utilisation of their vessels
and buoyant dayrates being earned. It’s certainly beginning to look like the summer is going to be another
scorcher however looking ahead at the longer term, there are some dark clouds starting to form on the
horizon.
At the beginning of the month the AHTS market was reasonably steady with the majority of vessels working
and dayrates around the £50,000 level. By the end of the first week of March the rig move market had gone
slightly quieter with dayrates dropping to the £40,000 level and a number of owners forced to turn to Cargo
work to keep their vessels utilised.
By the middle of the month the market had tightened once again with rates quickly doubling and by the 3 rd
week of the month AHTS rates had reached £95,000. This was short lived however and by the end of March
AHTS rates had once again dropped off to the £40,000 levels where they remain at the time of writing.
The PSV market was once again a far less turbulent affair with rate levels spending the majority of the month
around the £30,000 - £40,000 levels. Looking ahead at April however we are expecting to see in the region
of 10 PSV’s leaving the spot market for term charters which will only leave circa 13 PSV’s to service
charterers needs. With virtually half the fleet leaving in such a short space of time you don’t have to be an
economist to work out the likely effect of such a dramatic swing in the supply / demand equation!
Getting back to the mention of dark clouds on the horizon, though it is now widely accepted that this summer
is looking somewhat tight for PSV availability, this buoyant market is unlikely to last with in the region of 200
newbuild vessels scheduled for delivery worldwide this year alone.
This is in fact just the tip of the iceberg with circa 550-600 newbuild vessels now on order worldwide and
scheduled for delivery between now and 2011.
Though the majority of these vessels are not destined for the North Sea and many are in fact built against
existing requirements, there is no doubt at all that a large number will undoubtedly find their way to the North
Sea.
At a recent conference in London, a leading industry analyst gave their view of the impact of these deliveries
which they expect will cause the worldwide fleet to grow by circa 40% whilst demand is only expected to
grow by circa 6%, even taking into account the rapid growth seen in such regions as China and India.
Of the North Sea demand, one of the leading charterers Statoil spoke of their requirement for the coming few
years and in fact anticipate a reduction from 15000 vessel days to 13000 vessel days, a reduction of some
13%. Given their impending merger with Norsk Hydro there is no doubt at all that we will see further
reductions in vessel requirements from the two biggest Norwegian operators as they benefit from vessel
sharing within each others term fleet.
13 Rubislaw Terrace
Aberdeen AB10 1XE
Telephone No +44 (0) 1224 628788
aberdeen@offshore-shipbrokers.co.uk
9 – 11 Folgate Street
London E1 6BX
Telephone No +44 (0) 207 3779774
london@offshore-shipbrokers.co.uk

continued ….
It is therefore expected that as tonnage returns from project work and a steady stream of newbuild vessels
have been delivered during 2007, that Q4 of this year could start to see the beginnings of a downturn in the
market. Though we don’t expect this to be a sudden crash we do expect to see a prolonged and steady
decline in vessel dayrates as newbuild vessels continue to arrive in the North Sea and owners are forced to
compete for utilisation.
13 Rubislaw Terrace
Aberdeen AB10 1XE
Telephone No +44 (0) 1224 628788
aberdeen@offshore-shipbrokers.co.uk
Latest Fixtures - North Sea
Acergy - Norway AHTS Normand Progress All Duties - Circa 30 days March 07
Acergy - Norway PSV Ocean Mainport Supply duties - circa 2 months May 07
Supporting GSF Arctic II –
ADTI PSV Northern Supporter
Extended until May 07
Extension
ADTI PSV Rem Supplier Cargo Duties - 5 months firm + opts April 07
Apache PSV Highland Citadel Supply Duties - Extended until March 09 Extension
Apache PSV UP Safira
General Cargo Duties –
Extended until March 09
Extension
ATP PSV Gargano Support JU Ensco 70 - Circa 4 months April 07
Bluestream PSV Northern River ROV / Dive support - 5 years May 07
BP - UK PSV E.R Bergen General Cargo Duties - Circa 1 year March 07
BP - UK AHT Taurus
Support Duties on Schiehallion –
Circa 3 months
April 07
CNR PSV UP Esmeralda Cargo Duties - Extended until May 07 Extension
Dong PSV Boa Fortune
E.ON Rurhgas PSV Lady Elizabeth
Support of Noble George Savaugeau –
Circa 2 months + opts
Supporting GSF Labrador –
Frontrun for F Grimshader.
April 07
March 07
GB Diving PSV Vos Sympathy Support duties - Extended until Oct 07 Extension
In House AHTS Anglian Earl In House - Extended until May 07 Extension
Kuehne & Nagel AHT Granit Barge Tow - Circa 2 months March 07
MLS / Statoil AHTS Northern Corona
Supporting Erik Raude –
Extended until Sept 07
Extension
Nexen Petroleum PSV Highland Navigator Supporting GSF Galaxy III - circa 10 months April 07
Supporting GSF Galaxy III –
Nexen Petroleum PSV North Mariner
March 07
Frontrunning for H Navigator
Peterson PSV Rig Express Cargo Duties - Extended until end April 07 Extension
Peterson PSV Sical Torino Pool Support Duties - 1 year + opts April 07
Rovtech PSV Highland Eagle ROV duties - Extended until End 2007 Extension
Saipem AHTS Blizzard
Tow & Assist with Castoro 6 –
Circa 3 months
April 07
Saipem AHTS Boulder Tow & Assist with Castoro 6 – Circa 3 months April 07
Seabird Exploration PSV/ROV Siem Mariner Siesmic Support Services – 5 years July 07
Shell - UK PSV North Prince
Supporting Sedco 711 –
Extended until April 07
Extension
Statoil PSV Edda Frigg Pipehaul Duties - Circa 85 days. April 07
Statoil AHTS Strilborg All Duties - Extended until July 07 Extension
Statoil PSV Toisa Independent Pipe Haul - Circa 3 months April 07
Subsea 7
MSV/PSV Edda Fjord
Support Duties –
Extended until May 07 + opts
Extension
9 – 11 Folgate Street
London E1 6BX
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continued ….
Talisman PSV Acadian Sea Supply Duties - Extended until April 08 Extension
Team PSV Far Grimshader Cargo Duties - Extended until April 07 Extension
Team PSV Island Patriot Cargo Duties - Extended until April 07 Extension
Total E&P PSV Northern Mariner
Support Duties –
Frontrun for Northern Supporter
April 07
Total E&P PSV
Support Duties until delivery
Northern Supporter
of Northern Wind
May 07
Total E&P PSV Northern Wind Support Duties - Circa 18 months Dec 07
Acergy - West Africa AHTS Sea Cheetah
Latest Fixtures - International
All Duties –
Extended until end Aug 07
Extension Angola
Blue Marine PSV Boa Rover Subsea Construction Work - 1 year March 07 Mexico
General Support –
BP - Egypt PSV Greatship Disha
Extension Egypt
Extended until End May 07
Eni AHTS Maersk Mahone All Duties - Extended until end 2007 Extension Libya
General support –
Gazprom AHTS Boa Princess
Extension India
Extended until end June 07
Pemex PSV Bourbon Himalaia Support duties March 07 Mexico
Petrobras PSV Skandi Yare Pool Support Duties - 4 years firm Sept 07 Brazil
Petrobras AHTS A.H.Genoa General Duties - Extended until Jan 08 Extension Brazil
Petrobras
Petrobras PSV Toisa Tiger
Petrocanada
Premier Oil
AHTS Normand Hunter General Duties - Extended until July 07 Extension Brazil
AHTS Burin Sea
AHTS Sudhaksha
Exploration Support –
Extended until May 07
General support –
Extended until end 2007
Support Duties –
Extended until end May 07
Extension Brazil
Extension Canada
Extension India
Prosafe AHTS Toisa Dauntless Supporting Bristolia May 07 Sakhalin
Reliance Industries AHTS Subhiksha Support Duties - 2 years + opts March 07 India
Total Congo PSV Sea Halibut Cargo Duties - 6 months + opts May 07 Congo
Outstanding Requirements - North Sea
Acergy 4-6 PSVs for Pipehaul duties Oct-08
Apache PSV 10 – 15 years + opts Mid 08
Island / ADTI AHTS 3 wells firm + opts Apr-07
MLS AHTS for 2 years + opts Aug 08
MLS 4 x PSV’s – 4 weeks firm + opts April 09
Maersk Oile Og Gas 2 PSV’s – 1 or 2 years firm + opts June 07
Peak 2 x PSV’s – Circa 6 months June-07
Statoil AHTS Assist Acergy Piper – 70 days May-07
Team PSV 1 – 3 years + opts June-07
Total E&P 3 x PSV’s 5 years +opts June 07
Venture / BG PSV 1 - 2 years June-07
13 Rubislaw Terrace
Aberdeen AB10 1XE
Telephone No +44 (0) 1224 628788
aberdeen@offshore-shipbrokers.co.uk
9 – 11 Folgate Street
London E1 6BX
Telephone No +44 (0) 207 3779774
london@offshore-shipbrokers.co.uk

Outstanding Requirements - International
ONGC Up to 30 vessels, PSV's, AHTS & MSV's 1-5 years 2006-2008 India
Petrocanada 2 x AHTS 12,000 BHP –4 wells + opts July 07 Trinidad
Petrobras PSV – Circa 24 months April 07 Brazil
Petrobras PSV – Circa 24 months June 07 Brazil
Rana Diving DPII DSV with Helideck, 50t crane – 60days + opts April 07 Italy
Saipem 3 – 4 Pipehaul vessels – 3 months June 07 Singapore
Santos 2xAHTS supporting Ocean Patriot - 1 year + opts May-07 Austrailia
Saudi Aramco 24 AHTS – 5000bhp– 5 years firm Jan-July 07 Med
Shell Nigeria 2 x PSV’s – 3 years firm Aug-07 Nigeria
Shell Pakistan PSV – 1 well April 07 Pakistan
Statoil 2 Vessels to Support Drilling ops – 2 years Aug 07 Nigeria
Total MPSV, AHTS, PSV – Multiple periods & workroles June-07 Congo
ERRV VESSELS
March was another extremely buoyant month for ERRV owners with vessel availability once again extremely
tight. Last month, many owners were of the opinion that they would see improved availability from March
onwards however this situation has changed somewhat with a steady stream of requirements coming to the
market and ongoing delays in BP’s Jigsaw programme.
It is now expected that Jigsaw will now not become active in the central North Sea until around late April /
early May time and BP have extended a number of ongoing ERRV charters to cover this. This has now left
availability extremely limited for the coming months with both spot and terms rate remaining firm, one
charterer during March in fact is reported to have paid £20,000 per day for a 21 day ERRV fixture!
Fixtures
ADTI / Island Viking Supporter 3 wells + 1 well opt April 07
Oilexco Esvagt Supporter 1 year + 2 x 1 year opt April 07
Statoi Ocean Tern 9 months + 6 x 1 opts May 07
Statoi Normand Draupne Extended until June 2008 Extension
Venture Viking Vedette 60 days + 60 daily opts April 07
Outstanding Requirements
BG / Venture ERRV 2 years supporting NTVL June 07
BP ERRV for 5years, 15 years or life of field Late 07
Chervron UK ERRV 95t Bp Supporting Alba – 5 years + opts March 08
Nexen ERRV 130 days supporting John Shaw June 07
Nexen ERRV 1 year firm + 2 x 1 year opts July 07
Statoil ERRV 90 days + opts June 07
Total E&P ERRV 1 well (circa 60 days) May 07
Venture ERRV 60 days + 60 daily opts April 07
13 Rubislaw Terrace
Aberdeen AB10 1XE
Telephone No +44 (0) 1224 628788
aberdeen@offshore-shipbrokers.co.uk
9 – 11 Folgate Street
London E1 6BX
Telephone No +44 (0) 207 3779774
london@offshore-shipbrokers.co.uk

SALE & PURCHASE
Newbuildings
Wilson & Sons have signed a contract with Damen Shipyards to build eight PSVs with delivery by 2010. Six
will be of Damen 7216 deign with a deadweight of around 3,000 tonnes whilst the two larger PSVs of Damen
8816 design will have a deadweight of around 4,500 tonnes. All vessels are contracted to Petrobras.
Gulf Offshore has signed a contract with Aker Yards for two PSVs of Aker PSV 09 CD design at a contract
price of approximately NOK 530 million. Delivery is scheduled to be in the fourth quarter 2009 and second
quarter 2010. They will be 86.6 metres long, have a breadth of 19 metres and a deadweight of 4,850 tonnes.
The vessels will be equipped with DP, diesel electric propulsion and will have clean class notation.
GDV Shipping AS in Arendal has signed a contract with Aker Yards for a PSV of Aker ROV 06 CD design at
a contract price of approximately NOK 400 million. The vessel is scheduled to deliver in the fourth quarter of
2009. There is also an option for a similar vessel for delivery in the second quarter of 2010.
Hartmann Logistik has ordered another four AHTS of Moss 424 design from the Fincantieri shipyard in Italy.
They will have 16,000 bhp and are scheduled to deliver in October and November 2009 and February and
May 2010.
Secondhand
Scotsman Sea (Blt.1982 - 6760BHP) has been sold and delivered to Ocean Scotsman Limited (Sartor
Shipping Limited) on private terms.
Nomis Shipping has purchased the survey vessel Ocean Service (Blt.1981) and renamed it Dea Surveyor.
The vessel was handed over during early March and is currently uncommitted and en route to Singapore.
13 Rubislaw Terrace
Aberdeen AB10 1XE
Telephone No +44 (0) 1224 628788
aberdeen@offshore-shipbrokers.co.uk
9 – 11 Folgate Street
London E1 6BX
Telephone No +44 (0) 207 3779774
london@offshore-shipbrokers.co.uk

Tel: +44 (0) 1224 628788
Fax: +44 (0) 1224 628782
aberdeen@offshore-shipbrokers.co.uk
www.offshore-shipbrokers.co.uk
North Sea Spot Rate Analysis March 2007
2007
2006
2005
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Avg £ £53,573 £60,799 £68,034
No. Fix 26 25 39
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
No. Fix 28 28 19 28 49 34 44 54 32 61 24 21
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
No. Fix 15 41 34 19 43 36 21 41 30 29 30 39
Yr Avg
£61,847
90
£54,878
422
£26,602
378
2007
2006
2005
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Avg £ £20,886 £26,479 £25,383
No. Fix 6 7 8
Avg £ £9,423 £8,504 £20,014 £25,970 £28,452 £17,875 £27,333 £- £- £19,250 £17,700 £14,232
No. Fix 9 5 2 12 7 4 3 - - 2 5 2
Avg £ £10,694 £9,560 £11,200 £9,307 £13,908 £20,941 £12,332 £10,000 £16,875 £- £- £15,128
No. Fix 7 7 10 12 15 2 6 1 4 - - 8
Yr Avg
£24,463
21
£19,355
51
£12,340
72

2007
2006
2005
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Avg £ £18,819 £24,403 £27,383
No. Fix 26 11 19
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
No. Fix 34 41 39 21 26 15 9 12 17 19 19 21
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
No. Fix 28 34 22 39 22 22 37 27 28 24 25 26
Yr Avg
£22,822
56
£20,862
273
£15,774
334
2007
2006
2005
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Avg £ £19,613 £32,049 £34,436
No. Fix 19 13 18
Avg £ £10,115 £11,984 £19,761 £27,959 £23,078 £26,878 £28,818 £- £27,824 £17,000 £20,450 £24,752
No. Fix 15 9 13 13 10 10 11 - 5 21 26 12
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
No. Fix 24 23 31 22 20 19 9 16 30 19 30 14
Yr Avg
£28,182
50
£20,837
145
£16,284
257
Note:
1) "AHTS Semi Sub Rig Moves" includes all AHTS irrespective of size
2) Only fixtures where rates are reported can be analysed therefore the number of fixtures shown does not necessarily
reflect the total number of fixtures on the market.
3) Actual rates are believed to be correct but not guaranteed