JUNE 2015 SHELL PREPARING FOR ALASKA START

JUNE 2015 SHELL PREPARING FOR ALASKA START

CONTENTS 3 OSV MARKET ROUND-UP 6 OSV AVAILABILITY, RATES & UTILISATION - NORTH SEA 7 MONTHLY OSV SPOT RATES - NORTH SEA 8 FEATURE VESSEL 9 OSV NEWBUILDINGS, CONVERSIONS, SALE & PURCHASE 12 SUBSEA 15 RIGS 16 CONUNDRUM CORNER & DUTY PHONES ABOUT SEABROKERS GROUP The Seabrokers Group was established in 1982. We provide a unique and varied range of services to clients. The Seabrokers Group has an experienced workforce within Shipbroking, Real Estate, Facilities Management, Construction, Cranes & Transportation, Sea Surveillance and Safe Lifting Operations. Our head office is situated in Stavanger, but we also have offices in Aberdeen, Bergen, Rio de Janeiro and Singapore. The Seabrokers Group is different and we are proud of this fact. Our information, experience and knowledge provide us with the ability to perform in our diverse business areas. Seabrokers Chartering AS and Seabrokers Ltd are certified by DNV GL in line with Management System Standard ISO 9001; 2008. SHIPBROKING REAL ESTATE Production and Administration: Seabrokers Ltd, Aberdeen For your free copy of Seabreeze, email: chartering@seabrokers.co.uk SECURALIFT SEA SURVEILLANCE YACHTING FACILITY MANAGEMENT ENTREPRENEUR CRANES & TRANSPORTATION The Seabreeze Monthly Market Report is distributed worldwide through our offices in Aberdeen, Stavanger, Singapore and Rio de Janeiro. Seabrokers Group 2015 OUR OFFICES: STAVANGER BERGEN SKIEN ABERDEEN RIO DE JANEIRO SINGAPORE www.seabrokers-group.com

OSV MARKET ROUND-UP OVERSUPPLY OF VESSELS DICTATES NORTH SEA MARKET Fixture rates within the North Sea spot market improved marginally in June, although realistically they could hardly have got any worse for owners. In the PSV sector, owners have been striving to move the supplydemand balance more in their favour by laying up vessels in their droves; there are now more than 30 PSVs stacked in Northwest Europe. This has tightened the market enough to allow a slight upward momentum in rates, with the average spot fixture rate for large vessels rising to more than GBP 4,000 in June. However, this has to be taken into context - average spot rates for large PSVs trading the North Sea spot market were around GBP 10,000-15,000 in summer 2014, and north of GBP 20,000 in summer 2013. Owners have been faring slightly better within the AHTS market, which has not suffered from quite the same level of oversupply as the PSV market. Average fixture rates for June came in at around GBP 25,000 for large vessels (18,000+ bhp), and just short of GBP 20,000 for smaller vessels. Owners will be hoping rates can continue to rise over the summer, although the number of rigs scheduled to be released from contract over the second half of the year will be causing them concern. ALASKA DRILLING ON THE HORIZON Shell has indicated that it could commence drilling offshore Alaska as early as the third week of July. The operator is waiting for the final regulatory permits to be approved, and for the sea ice in the Chukchi Sea to clear sufficiently for drilling to begin. Shell is planning to drill with two rigs: Transocean semisubmersible Polar Pioneer (pictured on the front cover), and Noble Corporation drillship Noble Discoverer. Polar Pioneer has already arrived in Alaska, while Noble Discoverer departed the Port of Everett in Washington State on June 30th to commence her journey north to Alaska. The rigs will be supported by a support fleet of at least 25 vessels for the campaign. This follows a protracted period of intense scrutiny while Shell has been waiting for regulatory approval to be granted. While it now appears highly likely that drilling will commence in the near future, there are still obstacles to be overcome, even at this late stage. Shell s plan was for both rigs to be drilling exploration wells at its Burger prospect, some 8-9 miles apart. However, the operator has just been informed by authorities that there must be at least a 15-mile buffer between any two rigs that are drilling simultaneously due to regulations overseeing the protection of walrus and polar bear populations. PETROBRAS CUTS SPENDING BY 37% Petrobras has released its 2015-2019 Business and Management Plan, revealing a 37% reduction in investment from its previous guidance. The latest plan projects total CAPEX of USD 130.3 billion over the five-year period, of which USD 108.6 billion will be spent on exploration and production. This will consist of 86% for production development, 11% for exploration, and 3% for operational support. Petrobras plan prioritises domestic E&P activities, particularly at its pre-salt acreage. However, exploration activities within Brazil will merely be concentrated on meeting the minimum exploratory requirements for individual blocks. The impact of this reduction in spending is a significant decrease to Petrobras projected oil and gas production. In its previous Business Plan, Petrobras had projected production (both domestic and international) of 5.3 million barrels of oil equivalent per day (boed) by 2020; this target has now been reduced to 3.7 million boed. One of the assumptions detailed by Petrobras in its Business Plan was an average Brent Crude price of USD 60 per barrel for 2015, and USD 70 per barrel for the period from 2016-2019. SEABREEZE 3

OSV MARKET ROUND-UP TERM FIXTURES FOR MØKSTER Simon Møkster Shipping has been awarded two new term fixtures recently, with AHTS/Field Support vessel Strilborg awarded a charter offshore Norway, and MPSV Stril Server receiving a new commitment offshore the Netherlands. Kystverket (the Norwegian Coastal Administration) has awarded a one-year plus one-year option contract to Strilborg, with a scheduled commencement early in 2016. This will see the vessel brought out of layup; she has been idle in Stavanger since April. Stril Server (pictured) has been awarded a 10-week firm contract with Acta Marine Offshore, with five weekly options available. Stril Server will be acting as a front-runner prior to the delivery of Acta Marine s newbuild vessel Acta Orion, and will be working at the Gemini Wind Farm offshore the Netherlands. Stril Server will have an Ampelmann walk-to-work system installed so she can be used for accommodation purposes. Work will commence in August. PETERSON RETAINS ISLAND VESSELS Peterson has awarded contract extensions to Island Offshore to retain the services of two PSVs that are supporting its Southern North Sea Pool. The Island Endeavour and Island Earl (pictured) are both now committed until at least January 2017. The vessels have been working for Peterson since August 2008 and January 2009 respectively. Island Endeavour and Island Earl are both Rolls Royce UT 755 LN vessels that were delivered in 2008. PREMIER PICKS CRUSADER Premier Oil UK has awarded a fixture to Havila Shipping to charter PSV Havila Crusader for a two-year plus one-year option contract. Operations are scheduled to commence in July 2015. Although term fixture rates have dropped significantly in recent months with multi-year requirements in short supply, Havila has seized the opportunity to remove a vessel from the weak North Sea spot market for the foreseeable future. Havila Crusader is a 2010-built VS 485 CD PSV with a length of 85.0m, breadth of 20.0m and deck area of 1,005m². 4 SEABREEZE

OSV MARKET ROUND-UP EXXONMOBIL KEEPS REM PSVS Rem Offshore ASA has received two term contract extensions from ExxonMobil Exploration and Production Norge AS. The charterer has extended its commitments with PSVs Rem Server and Rem Supporter (pictured c/o H Valderhaug) until June 2016 and August 2016 respectively. Both vessels are working for ExxonMobil offshore Norway, but have also recently been utilised by ExxonMobil, in collaboration with its partner Rosneft, for a drilling campaign in the Kara Sea offshore Russia in 2014. Both vessels are of the STX (VARD) PSV 06 CD design, giving them a length of 94.2m, breadth of 20.0m, deck area of 1,075m² and a deadweight of 5,300 tons. ROSNEFT CONCLUDES ARCTIC EXPEDITION Rosneft has completed its Kara-Winter-2015 expedition, a scientific-exploratory campaign that took place offshore northern Russia. The programme was conducted over a period of 10 weeks with the nuclear-powered icebreaker Yamal. Work was performed in the Barents Sea, East Siberian Sea, Kara Sea and Laptev Sea, and in the Franz Josef Land, Novaya Zemlya and Severnaya Zemlya archipelagos and Novosibirsk islands. The purpose of the expedition was to identify safe locations for future exploration and production, and determine potential routes for installation of pipelines and transportation of hydrocarbons. E.R. OFFSHORE OBTAINS EBN LICENCE IN BRAZIL E.R. Offshore s sister company in Brazil is now registered as an independent ship management firm under Brazilian law. E.R. Offshore Navegação Ltda. is now officially recognised as an Empresa Brasileira de Navegação (EBN), thereby strengthening E.R. s position in the Brazilian offshore market. Six of the offshore vessels in the fleet of 13 operated by E.R. Offshore have been in service for Petrobras since 2010. All six are currently operating in the Campos Basin offshore Brazil. SEABREEZE 5

OSV RATES & UTILISATION JUNE 2015 - DAILY NORTH SEA OSV AVAILABILITY 26 24 22 20 18 16 14 12 10 8 6 4 2 0 RATES & UTILISATION PSV 2015 PSV 2014 AHTS 2015 AHTS 2014 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 NORTH SEA SPOT AVERAGE UTILISATION JUNE 2015 TYPE JUN 2015 MAY 2015 APR 2015 MAR 2015 FEB 2015 JAN 2015 MED PSV 66% 49% 50% 53% 72% 68% LARGE PSV 75% 73% 71% 76% 78% 76% MED AHTS 65% 60% 55% 59% 47% 69% LARGE AHTS 72% 77% 63% 73% 71% 61% NORTH SEA AVERAGE RATES JUNE 2015 CATEGORY AVERAGE RATE JUN 2015 AVERAGE RATE JUN 2014 % CHANGE MINIMUM MAXIMUM SUPPLY DUTIES PSVS < 900M 2 3,746 10,682-64.93% 2,200 8,901 SUPPLY DUTIES PSVS > 900M 2 4,455 9,112-51.11% 2,500 8,092 AHTS DUTIES AHTS < 18,000 BHP 19,513 14,485 +34.71% 10,000 40,000 AHTS DUTIES AHTS > 18,000 BHP 25,046 18,967 +32.05% 7,283 68,786 SPOT MARKET ARRIVALS & DEPARTURES JUNE 2015 ARRIVALS - NORTH SEA SPOT ALP ACE BLUSTER BOA JARL REM ARCTIC EX WEST AFRICA EX CHINA NEWBUILD NEWBUILD DEPARTURES - NORTH SEA SPOT CARLO MARTELLO OLYMPIC ZEUS * Vessels arriving in or departing from the North Sea term market are not included here. MEDITERRANEAN WEST AFRICA 6 SEABREEZE

NORTH SEA AVERAGE SPOT RATES NORTH SEA AVERAGE SPOT MONTHLY RATES 40,000 20,000 PSVs < 900m² All Cargo Runs 30,000 15,000 20,000 10,000 10,000 5,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 9,813 15,165 9,746 8,597 11,296 10,682 10,595 11,421 11,609 9,784 8,521 5,502 2015 5,091 5,389 3,687 2,818 2,478 3,746 - - - - - - 25,000 20,000 PSVs < > 900M² 900M2 900m² 15,000 10,000 5,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 12,653 20,559 12,136 11,409 12,840 9,112 11,583 14,432 13,712 10,278 9,949 5,639 2015 6,141 6,429 4,886 3,699 2,921 4,455 - - - - - - 80,000 70,000 70,000 AHTS < 18,000 bhp 60,000 PSVs > 900M² 900M2 60,000 50,000 50,000 40,000 40,000 30,000 30,000 20,000 10,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 29,925 22,073 10,505 28,314 12,190 14,485 16,551 68,689 53,533 32,724 30,803 6,708 2015 12,541 10,497 15,578 9,332 13,101 19,513 - - - - - - 80,000 70,000 AHTS Rig > Moves 18,000 bhp 60,000 50,000 40,000 30,000 20,000 10,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 35,129 26,271 17,553 39,977 21,758 18,967 28,759 73,541 68,657 52,724 28,222 8,547 2015 20,863 16,171 18,184 13,617 19,461 25,046 - - - - - - 30,000 Average Day Rates Average To Day Month Rates (June To 2015) Month (June 2013) 25,000 20,000 15,000 10,000 5,000 - PSVs < 900m² PSVs > 900m² AHTS < 18,000 bhp AHTS > 18,000 bhp 2014 10,833 12,591 20,252 27,835 2015 3,902 4,767 13,617 19,343 SEABREEZE 7

FEATURE VESSEL ESVAGT - HAVYARD 931 CCV Havyard Design & Solutions AS has signed a contract with Astilleros Zamakona S.A. to provide a design and equipment package for a newbuild Havyard 931 Crew Change Vessel (CCV) for ESVAGT. This will be the fourth vessel designed for ESVAGT by Havyard; the first three are of the Havyard 832 SOV (Service Operations) design. Esvagt Faraday and Esvagt Froude recently commenced operations with Siemens Wind Power offshore Germany, while the third is due for delivery in autumn 2016; she is already contracted to Statoil for a five-year charter at the Dudgeon Wind Farm off the east coast of England. This latest Havyard 931 vessel will be built by Astilleros Zamakona in Spain, with delivery scheduled for May 2017. This design has been specially developed for ESVAGT, with a focus on low fuel consumption with stringent requirements for stability and accommodation. ESVAGT will use the unit to conduct crew changes on its fleet of vessels, thereby making the process more cost efficient by transferring crew while at sea. VESSEL SPECS: Design: Havyard 931 CCV Length: 88.4m Breadth: 15m Speed: 18 knots Accomodation: 75 persons Power: Hybrid diesel-electric propulsion system with batteries 8 SEABREEZE

OSV NEWBUILDINGS, S&P BOA JARL ENTERS NORTH SEA MARKET A naming ceremony was held on June 10th at Noryards Fosen, Norway, for newbuild AHTS vessel Boa Jarl. The vessel is a sister unit to Boa Bison, which was delivered by Noryards Fosen in June 2014. Boa Jarl is owned by NFDS Offshore 2 AS, a subsidiary of Det Nordenfjeldske, and she will operate under the management of Boa Offshore. She has entered the North Sea spot market. Boa Jarl was built to the VS 491 CD design, giving her a length of 91m, breadth of 22m and a deck area of 828m². She has a bollard pull of 267 tonnes and an ROV supplied by Oceaneering. HAI YANG SHI YOU 641 DELIVERED TO COSL The COSCO (Guangdong) Shipyard in China, a subsidiary of COSCO Corporation (Singapore) Ltd, has delivered newbuild AHTS vessel Hai Yang Shi You 641 to COSL. Hai Yang Shi You 641 has an overall length of 73.8m, breadth of 16.0m and depth of 7.4m. She has a design draft of 4.8m, a maximum loading capacity of 2,150 tonnes and engine power of 8,000 bhp. She has an accommodation capacity for 100 persons. This is the first of two sister vessels that COSCO (Guangdong) is building for COSL. GREATSHIP SELLS ANCHOR HANDLER Greatship, a subsidiary of Great Eastern Shipping, has sold its AHTS vessel Greatship Akhila to PetroVietnam. The vessel has since been renamed as PTSC Tien Phong. The 7,080 bhp anchor handler, delivered in Indonesia in 2009, comes equipped with DP 2 station keeping. She has an overall length of 63m and breadth of 15m. Following this sale, Greatship now operates a fleet of five PSVs, eight AHTS vessels and four jackup rigs. PetroVietnam now operates a fleet of 23 vessels. PetroVietnam plans to increase its fleet to 100 vessels by 2025. TWO NEWBUILD PSVS FOR SWIRE PACIFIC Japan Marine United Corporation (JMU) has delivered newbuild PSV Pacific Gosling (pictured) to Swire Pacific Offshore. IHS-Petrodata has reported that another PSV, Pacific Liberty, was also recently delivered to Swire Pacific by JMU. Pacific Gosling is the third of eight IMT 984 PSVs being built for Swire by JMU. She has a deck area of 810m² and deadweight of 4,078 tonnes. Pacific Liberty is the last of four IMT 997 PSVs to be built for Swire by JMU. She has a deck area of 912m² and deadweight of around 5,250 tonnes. SEABREEZE 9

OSV NEWBUILDINGS, S&P STARNAV DRACO DELIVERED IN BRAZIL Starnav has accepted delivery of newbuild PSV Starnav Draco from the Detroit Brasil Shipyard in Itajai, Brazil. During the fourth round of Petrobras fleet renewal process (Prorefam) in 2013, Starnav was awarded contracts to build and operate four PSVs for eight-year plus options contracts with Petrobras. Starnav Draco is one of those vessels. Built to Guido Perla & Associates GPA 688 SC design, Starnav Draco has an overall length of 90m, breadth of 19m and a deck area of 844m². She has a deadweight of 4,500t and accommodation for 30 persons. SIMEK NEWBUILD (FS SCORPIUS) SOLD TO EDISON CHOUEST Edison Chouest Offshore has acquired a newbuild PSV that is in the final stages of construction at Simek Shipyard in Norway. The vessel had been expected to go on long-term bareboat charter to Fletcher Shipping under the name of FS Scorpius following her delivery (as a sister vessel to FS Cygnus). However, she will now be repainted into Edison Chouest colours and renamed, and she will be modified to support a FiFi system. The vessel has been built to Rolls Royce s UT 755 LC design, giving her a length of 76.4m, breadth of 16.0m and deck area of 764m². TWO MORE NEWBUILDS DELIVERED TO VROON Vroon has accepted delivery of two more newbuild vessels in China. VOS Famous, a 50m ERRV, was delivered by Jiangsu Islands Shipbuilding Industry, while VOS Grace, a 60m ERRV, was delivered by Fujian Southeast Shipyard. These are the seventh and eighth units of a ten-vessel newbuilding programme for Vroon, consisting of six 50m and four 60m ERRVs. VOS Famous and VOS Grace will now be mobilised to the North Sea, where they will join VOS Gorgeous (pictured c/o O Halland), a sister vessel of VOS Grace which recently arrived in the UK. NAMING CEREMONY FOR ESVAGT CHASTINE Esvagt held a naming ceremony on June 18th for its newbuild ERRV Esvagt Chastine (pictured c/o A Noorland). The Group 2 ERRV was recently delivered by the ASL Shipyard in Singapore, and has since mobilised to Norway. She has been contracted by Lundin Petroleum for standby and emergency response duties at the Edvarg Grieg production platform in the Norwegian North Sea. Esvagt Chastine is the fifteenth C-type ERRV in Esvagt s fleet. She has a length of 45.8m, breadth of 11.5m and deadweight of 640 tons. 10 SEABREEZE

OSV NEWBUILDINGS, S&P ERRV DELIVERED TO TOPAZ Topaz Energy and Marine has welcomed a newbuild ERRV, Topaz Responder, to its fleet. The vessel was built by Topaz Energy and Marine s sister company, Topaz Engineering, in Mussafah, Abu Dhabi. Topaz Responder is the fourth ERRV in Topaz s fleet. She is equipped with onboard medical equipment, firefighting and oil recovery capabilities, and two 15-man Fast Rapid Deployment Craft. The vessel has a length of 51m, breadth of 13m, and a total onboard survivor capacity for 300 persons. LADY TIERNEY DELIVERED IN USA Incat Crowther and Halimar Shipyard in the USA have announced the successful delivery of Lady Tierney to Sea Supply Inc, a subsidiary of B&J Martin Inc. Lady Tierney is a 62m monohull, DP2 crew supply vessel that is certified by the US Coast Guard. For transportation of supplies, the vessel has a deck area of 367m² with a capacity of 450LT. The aft deck also contains two 5,300 gpm fire monitors for emergency fire extinguishing. Forward of the cargo deck, there is a main cabin featuring seating for 50 passengers. TIDEWATER SELLS CREW/SUPPLY VESSEL Tidewater has sold the 1999-built crew/supply vessel Merlin Tide to private European owners for continued operations in the oilfield service sector. Built by Swiftships Shipbuilders LLC in Louisiana, USA, the vessel has a length of 44.2m, breadth of 8.1m and draft of 1.7m. Merlin Tide had been working in West Africa for Sonatide Marine Services Ltd of Angola, but she was lying idle in Walvis Bay, Namibia, at the time of the sale. RECENT DELIVERIES OF NEWBUILD OSVS NAME TYPE/DESIGN OWNER/ MANAGER COMMITMENT BOA JARL VS 491 CD AHTS BOA OFFSHORE NORTH SEA SPOT ESVAGT CHASTINE GROUP 2 ERRV ESVAGT NORTH SEA TERM HAI YANG SHI YOU 641 74M AHTS COSL FAR EAST LADY TIERNEY DP2 CSV SEA SUPPLY, INC. US GULF PACIFIC GOSLING IMT 984 PSV SWIRE PACIFIC OFFSHORE TBC PACIFIC LIBERTY IMT 997 PSV SWIRE PACIFIC OFFSHORE TBC STARNAV DRACO GPA 688 SC PSV STARNAV SOUTH AMERICA TERM TOPAZ RESPONDER 51M ERRV TOPAZ ENERGY AND MARINE TBC VOS FAMOUS 50M ERRV VROON NORTH SEA VOS GRACE 60M ERRV VROON NORTH SEA SEABREEZE 11

SUBSEA SUBSEA MARKET ROUND-UP It goes without saying that the first half of 2015 has been a difficult time for many companies and individuals. Looking at the subsea market, we have seen Cal Dive, Calecore, Reef Subsea, Specialist Subsea Services and X-Subsea all enter administration. However, on the flip side these downfalls have created opportunities for other companies to strengthen their position by securing new acquisitions at good rates. KREUZ SUBSEA ORDERS DSV Kreuz Subsea has contracted Vard to design and construct a diving support vessel, with delivery scheduled from Vard Søviknes in Norway during the second quarter of 2017. The list does not end with the five organisations identified above, as the latest subsea company to enter administration is Red7 Marine Group, the owners of the 1976-built IMR support vessel Red7 Reel, the 1983-built IMR support vessel Red7 Tonjer, and the 1984-built diving support vessel Red7 Alliance. Ernst & Young has been appointed administrators for the process. Red7 Marine Group, which is a provider of offshore oil and gas services, marine renewables, maritime inland subsea engineering and marine engineering services, operates across two trading divisions; Inland & Coastal (I&C) and Offshore. Shortly after Ernst The DP2-enabled newbuild, of VARD 3 17 design, will have a total length of 91.2 metres and a beam of 21.5 metres. The SPS coded vessel will be equipped with a 100-tonne active heave compensated offshore crane and prepared for ROVs. Vard will build the vessel for diving support and subsea construction duties. The design work will be undertaken by Vard Design in Ålesund, Norway, while hull & Young s appointment, they concluded the sale of I&C to I&C Limited, a new entity backed by a private investor, preserving 54 jobs. However, the offshore part of the group did not form part of this sale, which resulted in 47 redundancies. Tom Jack, joint administrator of the group, commented: In the period leading up to the administration, the group s cash flows came under significant strain due to falling demand for the group s services as a result of the collapse of the oil price, ongoing investment in the group s fleet, and a number of unexpected charges. construction is set to take place at Vard Tulcea in Romania. The diving system features a single bell system for a maximum of 12 divers, and can operate in water depths of up to 300 metres with a surface diving spread suitable for air diving to a 50-metre depth. The diving accommodation is divided into three saturation living chambers, and the vessel has an accommodation capacity for 105 persons. SEA TRUCKS RECEIVES FIRST BRAZILIAN CONTRACT Sea Trucks Group has announced that it has been awarded its first contract in Brazil. Sea Trucks will provide accommodation support services to Saipem for 300 POB, including lifting operations, storage support and logistic support services for modification works of an FPSO. The DP3 accommodation support barge Jascon 28 will carry out this work. The barge is equipped with a 270t main crane, and will be connected to the FPSO via its 42.5m hydraulic heave compensated telescopic gangway. The work is scheduled to commence during the third quarter of 2015. The contract has a minimum duration of four months. 12 SEABREEZE

SUBSEA CAL DIVE FINDS BUYER Cal Dive reports that it has found a buyer for its Australian business unit. The contractor has received court approval for a USD 17 million bid from Shelf Subsea Services to purchase the business segment. Shelf Subsea Services will set the bid floor for Cal Dive s Eastern Hemisphere assets. Cal Dive operates 10 surface diving systems and three diving support vessels in Australia. Additionally, Cal Dive has sold the 1982-built derrick barge Atlantic to Weeks Marine for a reported USD 4.5 million. After filing for Chapter 11 Bankruptcy protection, Cal Dive has had prospective buyers looking at all of its vessels. Cal Dive has a preference to sell off its cold stacked assets. The Atlantic, which has not worked since April 2014, is the first vessel sold since the company filed for bankruptcy protection. The 128m long barge will require at least USD 3.7 million in repairs to pass a Coast Guard inspection. Weeks Marine plans on using the barge on an infrastructure project this summer. ADDITIONAL DECOM WORK FOR OIS Offshore Installation Services (OIS) has been awarded two decommissioning contracts in the North Sea. Antrim Energy awarded the first contract to OIS to permanently plug and abandon Antrim s four suspended subsea wells in the central North Sea. Three of the wells will be on the Fyne licence while the last well will be suspended on the Erne licence. Additionally, Centrica Energy has issued the company a contract to plug six wells, which will include complete offshore and onshore project management, vessel charter, equipment and personnel. OIS will utilise the IMR vessel Island Valiant for the summer campaign. OIS is currently decommissioning 10 subsea wells within the UK continental shelf. Since 1996, MCDERMOTT AWARDED EPIC CONTRACTS LLOG Exploration Offshore has awarded McDermott a lump sum EPIC contract for the Otis project in Mississippi Canyon Block 79, in the Gulf of Mexico. The scope includes project management; engineering, fabrication, and installation of a 75,000ft insulated rigid flowline and insulated steel catenary riser with associated pipeline end termination and jumper; and pre-commissioning. Installation will be carried out by McDermott s Lay Vessel North Ocean 105 in early 2016. The Otis field is being developed via subsea tie-back to the Delta House FPS in the Mississippi Canyon area. Additionally, Pemex has awarded the contractor an EPIC contract for the Ayatsil-C replacement jacket and associated deck installation. This is the fourth contract McDermott has OIS has successfully completed more than 118 well decommissioning projects without a single lost-time incident. been awarded for the Ayatsil field, which is located in the Bay of Campeche. McDermott estimates completion for this assignment during the fourth quarter of 2016. During previous campaigns on the Ayatsil field, the contractor utilised the 1986-built Derrick Barge 50. The DP2 barge has a length of 151m, accommodation for 320 persons and a max lift of 3,992 tonnes. SEABREEZE 13

SUBSEA BALDER WORK FOR OCEAN INSTALLER Ocean Installer has been awarded its first call-off contract under a framework agreement with ExxonMobil, covering subsea operations at the Balder field offshore Norway. The call-off will cover subsea well tie-back, engineering, IRM, ROV and associated services. The agreement will also include fabrication and installation of an electrical distribution unit mud mat, transportation and installation of an 8-inch production flexible jumper with a 2.5-inch gas lift jumper, and several hydraulic and electrical flying leads. The contract has an option to include similar work during the second quarter of 2016. Offshore preparations began in mid-april and offshore work will commence in July using 2002-built BG ISSUES FIVE-YEAR CHARTER TO DEEPOCEAN BG has awarded DeepOcean a five-year inspection, maintenance and repair contract. The contract covers all ROV based IMR work for BG on UK and IMR support vessel Normand Normand Mermaid, which has a max lift of 100t and accommodation for 70 persons. Norwegian subsea assets. DeepOcean will utilise vessels from its North Sea based fleet to cover the requirement. ASTREA TAKES DELIVERY OF POLAR PRINCE GC Rieber has completed the sale of IMR support vessel Polar Prince to Astrea. The new owner has taken delivery of the vessel and has renamed the 94m-long unit Aethra. The Aethra was built by the Norwegian Flekkefjord Yard in 1999 and is equipped with a 150t crane and an ROV, and she has accommodation for 70 persons. Q7000 DELIVERY DELAYED Helix and Jurong Shipyard have confirmed an agreement to delay the delivery of the USD 346 million well intervention semi-submersible Q7000 until July 2017, from its original delivery in June 2016. The delay will allow Helix to defer a substantial amount of CapEx from 2016 into 2017. It has been reported that the delay could cost Helix as much as USD 14.5 million, including an USD 8.5 million delay fee. EUROPEAN BUILT SUBSEA DELIVERIES (NEXT THREE MONTHS) SHIP OWNER NAME CHARTERER SHIP YARD TYPE DESIGN MONTH ALLSEAS PIONEERING SPIRIT TALISMAN FINAL OUTFITTING DERRICK PIPELAY - JUL CEONA CEONA AMAZON - HUISMAN SCHIEDAM OCV - JUL FARSTAD FAR SENTINEL FARSTAD VARD LANGSTEN OCV VARD 3 07 JUL OLYMPIC SHIPPING OLYMPIC DELTA DELTA SUBSEA KLEVEN VERFT IMR MT 6021 JUL DOF SUBSEA SKANDI AFRICA TECHNIP VARD SOEVIKNES OCV OSCV 12 AUG 14 SEABREEZE

RIGS OIL PRICE VS RIG UTILISATION 100% 90% 80% 70% 60% 50% 40% 67.5% 65.8% 98.3% 97.3% 95.8% 95.9% 95.3% 94.3% 95.4% 94.9% 93.6% 92.2% 91.8% 90.2% 94.1% 94.2% 94.2% 93.8% 94.5% 94.8% 93.3% 92.8% 93.5% 93.5% 86.4% $111.87 91.3% $106.98 89.2% $101.92 $97.34 83.3% $87.27 71.1% 70.8% $78.44 63.0% 62.9% 61.2% $62.16 58.1% 53.8% 54.9% 53.5% $64.56 $63.76 $57.93 $55.79 $59.39 52.3% 53.2% $48.42 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Average Brent Crude US$ / Bbl Northwest Europe Rig Utilisation South America Rig Utilisation US Gulf Rig Utilisation $120 $110 $100 $90 $80 $70 $60 $50 $40 STATOIL CONTRACTS FOR ODFJELL Statoil has awarded a contract to Odfjell Drilling for a three-year charter of semisubmersible Deepsea Atlantic from March 2016. The rig will be used to drill production wells at the Johan Sverdrup field offshore Norway. The contract has LOCATION JUN 2015 JUN 2014 a firm value of around USD 330 million, with six further six-month options available. Odfjell has also received a four-year contract to provide drilling services on the Johan Sverdrup Drilling Platform from the fourth quarter of 2018. TRANSOCEAN DELAYS DRILLSHIPS Transocean has amended its construction contracts with Jurong Shipyard, a subsidiary of Sembcorp Marine, to delay the deliveries of two newbuild drillships. The delivery dates for both rigs have been pushed back RIG UTILISATION JUN 2010 NORTHWEST EUROPE 86.4% 98.3% 91.9% SOUTH AMERICA 83.3% 94.1% 96.1% US GULF 53.2% 71.1% 62.2% RIG TYPE AVERAGE RATES US$ SEMISUBMERSIBLE < 1,500 FT WD 298,000 SEMISUBMERSIBLE > 1,500 FT WD 358,000 SEMISUBMERSIBLE 4,000 FT + WD 440,000 DRILLSHIP 4,000 FT + WD 517,000 JACKUP IC 300 FT WD 105,000 JACKUP IC 300 FT + WD 174,000 INACTIVE RIGS NORTHWEST EUROPE by 24 months, with the drillships now scheduled for completion in the second quarter of 2019 and first quarter of 2020. The ultra-deepwater drillships are being built to the Jurong Espadon III design. NAME TYPE STATUS LOCATION BORGNY DOLPHIN SS COLD STACKED BELFAST COSLPIONEER SS WARM STACKED CCB, AGOTNES ENERGY ENDEAVOUR JU COLD STACKED ROTTERDAM ENSCO 70 JU WARM STACKED TEESSIDE ENSCO 102 JU WARM STACKED TEESSIDE GSF GALAXY III JU COLD STACKED INVERGORDON GSF MONARCH JU COLD STACKED INVERGORDON HERCULES TRIUMPH JU WARM STACKED ROTTERDAM MAERSK RESILIENT JU WARM STACKED INVERGORDON OCEAN NOMAD SS COLD STACKED INVERGORDON OCEAN PRINCESS SS COLD STACKED INVERGORDON OCEAN VANGUARD SS COLD STACKED INVERGORDON SEDCO 712 SS WARM STACKED INVERGORDON TRANSOCEAN SPITSBERGEN SS WARM STACKED KRISTIANSUND WEST NAVIGATOR DS COLD STACKED SLOVAG WILHUNTER SS WARM STACKED INVERGORDON SEABREEZE 15

CONUNDRUM CORNER, DUTY PHONES NORTHERN OFFSHORE TO BE SOLD The boards of directors of Northern Offshore Ltd and Shandong Offshore International Company Ltd have reached agreement on the terms of a recommended cash acquisition of Northern Offshore by Shandong. The acquisition price is to be NOK 7.59 per Northern Offshore share, valuing the company s entire issued share capital at around NOK 1.3 billion (USD 165 million). The transaction is expected to close in the first half of August 2015. Northern Offshore has two LeTourneau Super 116E jackups being built in China, to add to an active fleet of two harsh-environment jackups, one drillship, one semisubersible and one floating production platform. Shandong also owns Blue Ocean Drilling, which has four high-specification jackups under construction in China. CONUNDRUM CORNER The answer to last month s teaser :- How many four sided figures are in this diagram? The correct answer was:- 25 16 SEABREEZE A) 15 B) 20 C) 25 D) 30 This month, our poser is as follows: When you need me, you throw me away. But when you re done with me, you bring me back. What am I? Answers back to chartering@seabrokers.co.uk for a chance to win a bottle of wine. 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 SEABROKERS GROUP CONTACTS SEABROKERS HEAD OFFICE Forusbeen 78-4033 Stavanger - Norway Tel: (+47) 51 80 00 00 Internet: www.seabrokers-group.com SEABROKERS CHARTERING AS - STAVANGER Duty Telephone ++47 51 815400 (24 Hrs) E-mail chartering@seabrokers.no SEABROKERS LTD - ABERDEEN Duty Telephone ++44 1224 747744 (24 Hrs) Duty Mobile ++44 7802 304129 E-Mail chartering@seabrokers.co.uk SEABROKERS BRAZIL LTDA - RIO DE JANEIRO Duty Telephone ++55 21 3505 4200 (24 Hrs) E-mail chartering@seabrokers.com.br SEABROKERS PTE LTD -SINGAPORE Telephone ++65 6224 6062 or 0951 E-mail chartering@seabrokers.sg SECURALIFT AS - STAVANGER Telephone ++47 51 800000 Jostein.Okland@seabrokers-group.com HEADING E-mail SEA SURVEILLANCE AS - BERGEN Quiatis imaximilitem num enis porum ne dolles Telephone ++47 55 136500 qui E-mail rerum id min info@seasurv.net corepta dolo quo conet il id quisto que voluptatus eatis re ventur? Hilibust quis SEABROKERS as mincias EIENDOM peribustis AS - qui STAVANGER dolorit officatus Telephone ++47 51 800000 aut preiumquas qui iuscimu sapelest, esto odio. E-mail frode.albretsen@seabrokers.no Itatecum cus acerum ipidunture corporpores et int faccum SEABROKERS remperi SERVICES onsequi AS - STAVANGER Telephone ++47 51 800000 E-mail eli@seabrokers.no SEABROKERS ENTREPRENØR SERVICE AS - STAVANGER Telephone ++47 51 800000 E-mail entreprenor@seabrokers.no SEABROKERS KRAN & TRANSPORT AS - STAVANGER Telephone ++47 51 800000 E-mail kranogtransport@seabrokers.no