Page 45: of Maritime Reporter Magazine (June 2020)

2020 Yearbook

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Global Markets: offsHore 2020 yearbook

Market: Offshore robert Day, Head of offshore, VesselsValue choing the same sentiment as last year, Offshore mark long term layup units in Sunderland UK. Price ‘as newbuild numbers remain non-existent. Over is’ $125/LDT to Turkish demolition buyer.

supply still haunts the sector and full recovery to

Ea market that can sustain newbuild activity is a Tidewater Sunderland Demolition sales long way away. Most banks are also reluctant to provide • PSV Highland Eagle, Bugler, Rover 3,200 DWT, blt finance to the offshore sector, especially newbuilds, due 2003/2002/1998, Vard Brattvaag to the losses incurred during the current downturn and • PSV Highland Challenger 3,100 DWT, blt 1997, the poor future market outlook for the sector. Vard Soviknes

It has been another strong year for sale and purchase • AHTS Highland Courage, Endurance and Valour activity within the offshore sector (see graph below). 16,300 BHP, 2002/2003, Vard Soviknes

The industry saw the influx of non-offshore players tak- ing advantage of depressed asset prices and picking up The Rig Market cheap tonnage, good quality tonnage for use outside of Covid 19 has affected the rig sector heavily, the ag- the oil and gas industry. Example PSV Highland Navi- gressive reduction in oil price and oil demand has forced gator (4,500 DWT, blt 2002, Vard Soviknes was sold most oil majors to decrease CAPEX with a significant to Baltmed Reefer Services for usd 2.2 mil. VV Value emphasis on reducing exploration and production invest- usd 2.1 mil. Vessel to be converted for charitable beach ment. This has inevitably filtered through to the MODU cleaning operations in Greece. Tidewater also continued sector and several MODU owners have experienced ear- its fleet overhaul and sold several vintage, out of class ly contract terminations, full cancellations or rigs idled. and/ or laid up units. Applying huge pressure on the already fragile sector.

Within the sale and purchase market, the most notable

Tidewater PSV sales transaction was Magni Partners agreeing with Sete Bra- • Highland Monarch 3,100 DWT, blt 2003 Vard Brat- sil and Petrobras to purchase the two incomplete semi tvag sold Raj Shipping agencies for $800k. VV value submersibles and two incomplete drillships (outlined $1.95 mil. below) for $296 mil with a ten-year charter agreement • Highland Fortress 3,200 DWT, blt 2001, Vard So- with Petrobras, at a rate of $299,000 a day. VV value viknes sold to IT International Telecon Canada for $0.5 02/01/2020 $ 896 mil. VV Value today (28/05/2020) mil. VV value $1.45 mil. $703.1 mil. • North Stream 4,600 DWT, blt 1998, Vard Soviknes • Semi-submersible, Urca and Frade, 10,000 ft, blt sold to Hoyland Offshore for $1.1 mil, for conversion to 2020, Brasfels

ERRV. VV value $1.3 mil. • Drillship, Guarapari and Arpoador, 10,000 ft, blt

Tidewater AHTS sales 2020, EJA • Errington Tide 5,000 BHP, blt 2009, ASL Marine However, the deal has been delayed due to the Covid sold to Ships and Boats Oil Services (Egypt) for $1.3 19 pandemic and an extension granted till July 2020. mil. VV value $1.4 mil. Market rumours suggest the deal could fail or the pur- • Stricklin Tide 5,000 BHP, blt 2009, ASL Marine chase price renegotiated lower by Magni Partners.

sold to Petromarine Offshore Projects (Egypt) for $1.3 The most lucrative deal of the year was the purchase of mil. VV value $1.2 mil. the Vitoria 10,000, blt 2010, Samsung, originally bought in October 2019 by demolition cash buyer Best Oasis

Scrapping for $15.05 mil. It was then resold five months later by

Scrapping numbers slightly less but still strong when best Oasis to Allseas group for $24.5 mil. A c. usd 10 compared to historical figures. Notable scrapping deal mil profit! The rig will be converted to a deepsea mining of 2020 was Tidewater finally disposing of the ex Gulf- vessel. © AndSus/AdobeStock www.marinelink.com 45

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