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Contents Market Commentary

p.3

Chartering

p.4

Renewables/Corporate

p.8

Sale & Purchase

p.9

Subsea

p.10

Rig News

p.11

Bunker Price/Oil Price

p.13

Standby/ERRV p.14

Welcome

AHTS/PSV Charts

p.15

Welcome to the latest edition of the Braemar Seascope Offshore North Sea Vessel Report. Its been another slow month in the North Sea following the busy summer as spot rates and vessel utilisation continue to fall. However, a new Statoil tender and a fixing spree by ExxonMobil has increased owners optimism for next year. The next edition of the North Sea Vessel Report will be out on December 6th. In the meantime, please ensure that you have our contact details.

Our Subsea Market Report For the latest on the subsea construction and survey vessel availabilities please contact us for a copy of our Subsea Vessel Market Summary. We are constantly monitoring the requirements, fixtures and availability of the North Sea fleet. For more information please email us.

ÂŠ Braemar Seascope Offshore 2013

Aberdeen: offshore.aberdeen@braemar.com London: offshore.london@braemar.com Singapore: offshore.singapore@braemar.com Perth: offshore.perth@braemar.com Research: offshore.research@braemar.com We hope you find the latest edition of our report useful and look forward to hearing your feedback and comments. Ani Bablanian Researcher

BROKER COMMENTARY By Jack Richards London Office

Email: offshore.london@braemar.com or Tel: +44 (0) 20 7903 2700

The North Sea spot market has seemingly put a busy summer behind it with another month of relatively low utilisation, particularly on the UK side. The hustle and bustle of the preceding months was nowhere to be seen in October as Charterers were more often than not afforded a diverse selection of ad hoc tonnage at very short notice and we are now seeing some Owners use the weak market as an opportunity to perform general maintenance and upgrades. The month began with 31 prompt ships spread across the UK and Norway; 70% of which were in Aberdeen or Aberdeen Bay. The highest rates for PSVs were achieved on the Norwegian side where availability tightened quite significantly around the middle of the month. However, AHTS vessels in Norway along with a bountiful supply of tonnage in Aberdeen ensured that any excess demand would be absorbed. A flurry of rig moves in week 41, notably the TO Searcher and Maersk Giant, provided the catalyst for a small spike in the AHTS market in Norway, however this was short-lived due in part to a crowded Aberdeen Harbour. In the UK, AHTS availability has generally remained good throughout the month which has added further pressure to the PSV sector as a number of anchor handlers have picked up supply work at 'fill-in' rates as Owners look to maximise utilisation during lulls in rig move activity.

within this time so it’s uncertain if there will be a net increase in the number of vessels. Earlier this year, Statoil surprised everyone but themselves by fixing 15 PSVs for periods ranging from 4 - 6 months firm + opts and this no doubt played a major part in determining the direction of the market in the months that followed. The outcome of this tender therefore may well give us some indication as to how the market will play out in 2014. Statoil are also looking for a PSV and a standby vessel for the completion of the Brugdan II well in the Faroe Islands. The estimated duration for this is 70 days with a one well option of 90 days commencing in Q1 or Q2 next year. Elsewhere, ExxonMobil have fixed a number of vessels for work in the Kara Sea supporting the semi-submersible rig West Alpha which is being winterised to operate in Siberia for 90 - 120 days in both 2014 and 2015 with options for 2016 and 2017. The spread of vessels includes at least 7 AHTS and 3 PSVs currently trading the North Sea spot market. This, along with the result of the Statoil tender, is therefore likely to have a direct impact on the market next year.

In the UK, AHTS availability has generally remained good throughout the month

In terms of significant market developments during the month of October, Statoil issued a tender for an unknown number of PSVs for various periods ranging from 3 and 6 months firm + opts to 2 years firm + opts commencing between 1st January – 1st June 2014. Statoil currently have a dozen or so vessels finishing medium/long term charters © Braemar Seascope Offshore 2013

October also saw the arrival of 4 newbuild PSVs, namely the MMC 887 design Highland Guardian, STX PSV 09 CD design Demarest Tide, DAMEN 3300 CD design World Pearl and UT717 CD design Island Duchess. The Highland Guardian is due to commence a 5 year charter with Shell UK from early next year however, at the time of writing, the latter three remain uncommitted in the long term. In terms of other additions to the North Sea spot market in October, the MT6009 design PSV Skandi Texel arrived from the Mediterranean having completed her charter in Egypt while the Husky-Type AHTS Maersk Chignecto joined the southern North Sea market having spent a number of years working out of St John's in Newfoundland, Canada.

LONG TERM REQUIREMENTS 1 x PSV / EnQuest / 1, 2 or 3 years + options / Oct 2013 1 x PSV / Shell UK / 5 years + options / Jan 2014 Multiple vessels / Statoil / 3 months, 6 months or 2 years + opts / Jan-June 2014

MEDIUM TERM REQUIREMENTS 1 x PSV / GDF / 2 wells + 2 x 1 well opt / Early Dec 1-2 x PSV / Statoil / 1 well + 1 well option / 22.02.2014 - 01.05.2014 (Faroe Islands)

CHARTERING Scandinavian Tonnage Chartered for Kara Sea Viking Supply Ships / Siem Offshore / REM Maritime have reportedly secured contracts for a total of nine ships between them to support a drilling programme in the Kara Sea with the West Alpha for ExxonMobil / Rosneft. The vessels have been chartered for 2014 and 2015 with options for 2016 and 2017. The seasonal drilling campaign will commence in the 2nd quarter each year for approximately three to four months. The vessels involved are the Balder Viking, Loke Viking, Brage Viking, Magne Viking, Siem Topaz, Siem Amethyst and the large PSVs REM Supporter, REM Server and Siem Pilot. We expect further announcements of additional tonnage over the next month or two.

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GDF Charter the Portosalvo and Extend the Maersk Feeder The Portosalvo managed by Gulf Offshore has been on charter since October 10th supporting the rig GSF Monarch on the Juliet Field in the south North Sea. The fixture is to GDF and is scheduled to be complete by March 1st 2014. The 2005 built PSV vessel has a deck area of 689 square metres and 6,310 BHP. In addition GDF Suez have recently extended the Maersk Feeder for three years, which is a 1993 built PSV of Maersk’s own F-Type design.

Brage Trader on Supply Support for the GSF Arctic III Simon Mokster Shipping has been awarded a contract for the charter of their PSV the Brage Trader by SPD for approximately 2-3 months. She will be supporting Transocean’s semi-submersible GSF Arctic III for a one well program, which will commence on November 5th this year. The STX PSV 09 design vessel has been performing supply duties on the Spot Market.

Nexen Extends Contract for Two Vessels Doing Pool Support Nexen has extended the contract for Farstad’s Far Server and Gulf Offshore’s Highland Star. Both vessels began their charters in July this year and their extension will be for two months with four one week options undertaking pool support. The Far Server is a 2010 built vessel of Havyard 832 CD design with a deck area of 800 square metres, whereas the Highland Star was built in 1991 and is a UT-705 design with a deck area of 883 square metres.

Team Fix the Olympic Princess for Pool Support Team has chartered the Olympic Princess for pool support. The Multipurpose Offshore Vessel is owned by Olympic Ship AS and will be on charter for six months with eight one week options. She was built in 1999 and her design is MT 6000 with a deck area of 912 square metres.

Olympic Electra & Havila Fortune on Rig Support The Olympic Electra (MT 6009 L design) and the Havila Fortune (MT 6009 MK II design) have both been chartered by Centrica for rig support. The Olympic Electra is covering the Noble Julie Robertson rig, for a firm period until March 2016. The Havila Fortune is supporting the Noble Byron Welliver for a two well program with options for four more wells. Market sources suggest each vessel to be a rate of around GBP 15,500-16,000 per day. The Olympic Electra and the Havila Fortune both have DP2 and a deck area of 745 and 683 square metres respectively.

Skandi Texel and the Maersk Tracer are back in the North Sea The Skandi Texel and the Maersk Tracer are back in the North Sea. The Skandi Texel arrived from working for Burullus in Egypt and has started trading on the North Sea Spot Market. Meanwhile, the Maersk Tracer arrived from a term charter with Noble Energy in Nicaragua and a yard stay in Portugal. She is currently working for Team Marine. The Skandi Texel is a 2006 built PSV vessel of MT 6009-S design and the Maersk Tracer is an AHTS vessel of Maerskâ&#x20AC;&#x2122;s own T-Type design built in 2009.

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Peterson Den Helder extends Three PSVs for Pool Operations Peterson Den Helder BV has extended the contracts for three PSVs. The VOS Power (own design), VOS Base (DAMEN design) and Troms Fjord will commence their extension end of 2013. All vessels are medium size PSVs and will be supporting the South North Sea Pool operations for 12 months. The Troms Fjord (VS 470 MK II design) was built in 2005, VOS Power was built in 2006 and the VOS Base in 2008. Peterson Den Helder BV have 16 PSVs on long term charter supporting the Dutch and the UK South North Sea operations of Centrica, Chevron, Dana Petroleum, GDF Suez, Nam - Shell, Oranje-Nassau Energie, TAQA, Total and Wintershall.

Island Earl Awarded a Twelve Month Contract Recently the Island Earl (UT 755 LN design) was awarded a 12 month contract by Peterson Den Helder BV. The medium size PSV built in 2008 will be supporting the South North Sea Pool operations, commencing in January 2014.

Enquest Charters PSVs for Pool Support Enquest have chartered the SBS Typhoon (VS 470 MK II design) which recently commenced a three months firm contract with a further three one month options. Earlier this year Enquest also extended the Sea Trout (VS 470 design) for another year and still have an outstanding PSV requirement for 12 months commencing November 2013. The ER Kristiansand (VS 470 MK II design) is also in Enquest's long term fleet.

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RENEWABLES UK Government Announces Scheme for Offshore Wind Projects Two offshore wind projects will receive part of the GBP 40 billion government infrastructure guarantee scheme available from the UK government. Able Marine Energy Park are supporting the manufacture, assemble and installation of Offshore Wind Farms on the Humberside and the Neart na Gaoithe in the Firth of Forth. The two pre-qualified projects to

receive the scheme are set to produce enough electricity to power 325,000 homes.

Tidal Transit Awarded Second Contract for NB Ginny Louise Market reports have indicated that after the 18 month contract was awarded for the Tia Elizabeth, Tidal Transit confirmed a second contract for their newbuild Ginny Louise. Both Crew transfer vessels will be working together servicing the operation and maintenance of the 88 offshore wind turbines at the Sheringham Shoal Offshore Wind Farm, located off the coast of North Norfolk.

CORPORATE RWE Dea UK Begins Gas Production at Breagh Gas Field The Breagh gas field in the Southern North Sea has started gas production from three wells. The rate the wells are producing at the moment is reported to be 2.75 million cubic metres of gas per day. The operator of the Field is RWE Dea UK who have announced an estimated 19.8 billion cubic metres as the total reserves of the Breagh field. RWE Dea UK is the operator and own 70 percent of the licence whilst the 30 percent remaining belongs to Sterling Resources UK.

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SALE & PURCHASE Nordic American Tankers Creates New Offshore Company The company Nordic American Tankers (NYSE:NAT) have announced they will create a new company called Nordic American Offshore Ltd (NAO) after acquiring six PSVs from Ulstein Shipbuilding vehicle Blue Invest. The Blue Protector / Guardian / Thunder / Power / Prosper / Fighter are of the PX 121 design and are managed by Remoy Shipping and Atlantic Offshore. The six vessels are valued at NOK 270 million each (approximately USD 45.3 million each).

Cecon Pride Launched and Scheduled Delivery for Early 2014 Chantier Davie a Canadian Shipbuilding company has successfully launched Ceconâ&#x20AC;&#x2122;s advanced multipurpose subsea construction vessel the Cecon Pride on the 19th October. The vessel is the first of three VS 4220 design ships being built at the Canadian shipyard and is expected to be delivered in week 8 of 2014. The Cecon Pride has been built to withstand harsh environments in deepwater operations and includes DP3, a 250t AHC crane and a deck area of 2,000 square metres.

Chellsea Holdings Order up to Eight Newbuilds from COSCO Chellsea Holdings have ordered two UT 771 WP design vessels (plus six options) at the COSCO (Guangdong) Shipyard in China. The DP2 vessels will be built according to the SPS code and be equipped with a wave piercing bow / 50 accommodation and 800 metre clear deck. The first vessels in the series are scheduled for delivery in 2015.

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SUBSEA Newbuild Order with Five Years Contract to DeepOcean Østensjø Rederi has ordered a large construction vessel that was designed by Salt Ship Design with input from Østensjø Rederi and DeepOcean. The total value of the construction contract is NOK 1,400 million. The newbuild will be built at the Kleven Shipyard and is specifically designed to suit the North Sea Market. Once she is delivered, which is expected to be in March 2016, she will commence a charter to

DeepOcean for a five and a half year contract with four one year options. The vessel will have 2,300 square metres of deck area, a moonpool and a 400t (AHC) knuckle boom crane.

Jumbo Maritime launched K3000 vessel Jumbo Maritime launched their new K3000 the Jumbo Kinetic in September this year, a first of two heavy lifting vessels with a 1A Finish Swedish Ice Class for Artic operations. The K3000 has a 3,000t lift capacity using two 1,500t mast cranes that can reach 20 metres and has a deck area of 3,250 square metres. For launch video see page 12.

Dof Subsea Charters the Normand Reach for a 2 Year Contract Dof Subsea has chartered the Normand Reach from Reach Subsea for a 2 year contract with two one year options. The charter agreement includes two Reach Subsea WROV’s and personnel. The MPSV newbuild vessel is still under construction and scheduled for delivery end of May 2014. The vessel is owned by Solstad Offshore and is working under a five year contract for Reach Subsea which will commence next year.

RIG ANALYSIS

Higher Drilling Activity Expected in 2014 and going forward as more Semi Submersibles and Jack Up Rigs Head to the North Sea Picture Courtesy of Awilco Drilling

It has been reported the number of rigs in the North Sea could rise to 100 by the year 2016. Currently the figure is 88 but with more rigs moving into the North Sea the number is certain to rise. Diamond Offshore’s Ocean Patriot will soon make her way to commence her three years firm and two year options contract with Shell which is scheduled to commence around June 2014 and is at a dayrate believed to be USD 400,000.

third quarter of 2014, already has a fixture lined up in the North Sea and is expected to commence in the fourth quarter of 2014. Another rig recently extended is understood to be the WilPhoenix as Awilco Drilling has recently announced they have signed a Letter of Award with Premier Oil for 250 day options for the semi submersible rig. The WilPhoenix has commitments to Premier Oil and Apache/TAQA until at least 2017.

There are eighteen newbuild rigs fixed for North Sea Drilling, half of which are expected to arrive by the end of July 2014.

Newbuilds are not the only rigs moving into the North Sea. Transocean’s Sedco 712 has been reactivated to work for Talisman at Enoch after about five years being stacked at Invergordon. The semi submersible rig is on contract to Talisman for three years.

Also market reports have indicated that Ensco’s under-construction jack up Ensco 122, which is expected to be delivered in the

RIG CHART Norway UK/Irl

Denmark Netherlands

Stacked without future contract

Stacked with future contract

Total

Drillship

Jackup

Semi-Sub

Total

MONTHLY VIDEO VIDEO LAUNCH OF JUMBO KINETIC– Built at Brodosplit Shipyard in Split, Croatia and was Launched on 19th September. For more information see page 10.

BUNKER PRICE IN ABERDEEN 2011 TO PRESENT

Price courtesy of Scandinavian Bunkering, subject to supply method, volume and market fluctuations.

OIL PRICE BRENT CRUDE 2005-2013

Price courtesy of US Energy Information Administration ÂŠ Braemar Seascope Offshore 2013

STANDBY (ERRV) Outstanding Long Term Tenders Another long term tender has been circulated recently. GDF Suez has tendered for an ERRV or MRV to support the Cygnus field for 3-5 years plus options from the 2nd or 3rd quarter of 2014. ConocoPhillips remain outstanding for a range of MRVs or ERRVs for 5-9 years from April 2014 for support of various installations and drilling

programmes in the South North Sea, Central North Sea and West Coast including the J Block, Loggs and Viking fields. The requirements are effectively against the 1976 built Putford Viking, 1975 built Putford Apollo, 1970 built Putford Puffin, 2003 built Putford Saviour and the 1999 built VOS Provider.

The Grampian Frontier to Support TAQAâ&#x20AC;&#x2122;s Harding Field TAQA are believed to have agreed a long term deal with North Star for the charter of the ERRV / tanker assist vessel Grampian Frontier from January 2014. The vessel will support the Harding Field, which was previously operated by BP, in the Northern North Sea. The Grampian Frontier is currently contracted to BP for support of their installations West of Shetlands on a charter that originally commenced in 1997 when the vessel was delivered from the shipyard in Hull.

Esvagt Cassiopeia Supports the GSF Arctic III SPD have fixed up the Esvagt Cassiopeia to support a one well (circa 60 days) programme with the GSF Arctic III from the first half November. Esvagt currently operate a further three vessels in the UKCS, namely the Esvagt Sigma (Enquest - Ocean Princess), Esvagt Celina (Shell - Seawell) and the Esvagt Observer (Apache - Beryl field).

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AHTS DAYRATES AVERAGE NORTH SEA SPOT 2011/12/13

PSV DAYRATES AVERAGE NORTH SEA SPOT 2011/12/13

AHTS DAYRATES AVERAGE NORTH SEA SPOT

PSV DAYRATES AVERAGE NORTH SEA SPOT 2004-2013

OUR SERVICES Please click below for our October report.

NEW RESEARCHER

Braemar Seacope is pleased introduce Ani Bablanian as our new Offshore Researcher.

Braemar Seascope Offshore is a division of Braemar Shipping Services PLC, a leading integrated provider of brokering and consultancy services to the shipping industry. At Braemar Seascope Offshore our aim is to provide cost effective solutions to our clients' offshore programmes. Regular advances in technology mean our work is a direct response to constantly changing market needs. From offices in London, Aberdeen and Singapore we specialise in the worldwide offshore market. OUR SERVICES INCLUDE:  Spot and period chartering

CONTACT US Ani Bablanian Researcher 35 Cosway Street London NW1 5BT UK Phone: +44 (0)20 7903 2628 E-mail: offshore.research@braemar.com

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