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25 March 2023 - Year XXVII
Independent journal on economy and transport policy
21:46 GMT+1
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FORUM of Shipping
and Logistics



Offshore support vessels 
Ice-breakers
Underwater construction and installation ' IRM Market
The seismic market 
Drilling market

Production market (surface systems)
Dredging
Conclusion 



The offshore and specialised ships markets
 in 2004

 
The year 2004 will remain unique in the history of the oil and gas industry for two reasons: first, world oil demand (excluding gas) reached its highest level ever and second, the price of oil also registered a peak at around $ 50 per barrel.

The offshore sector at last is feeling the initial benefits of the surge in prices and oil companies are again targeting to increase their proven reserves of oil and gas. About $ 125 billion was spent on exploration and oil production in 2004. This level, comparable to that achieved in 2001, should increase to $ 135 billion in 2005. This figure excludes Russian and Chinese projects, but includes the Kashagan and Kazakhstan projects in the Caspian Sea. This drive will be a stimulus in the first instance to the development of traditional offshore equipment in shallow waters, but also to very deep-sea offshore equipment, which comprise a number of drilling units used at the limit of their capacities. Geophysical offshore exploration will see a certain stability, even with some expansion in India. The increase in offshore drilling expenses in 2004 illustrates the upward trend and the best indicator of this growth being the percentage of jack-up rigs operating, which has gone from 75 % at the beginning of the year to 90 % at the end.


 
Kaori
Port tug, delivered by President Shipyard in 2004, operated by CMC Noumea (New Caledonia)
Offshore Support Vessels

Most of the major companies in this branch of the offshore market decided this year to order a large number of Platform Supply Vessels (PSV) as well as Anchor Handling Tug-Supply (AHTS). The order pattern was mainly:

' at the beginning of the year, for PSVs in the size range of 3 000 tdw or more, ' for mid-size AHTS, with 60 to 120 t bollard pull, dynamic positioning and equipped with fire-fighting systems.

The majority of orders were placed with Far Eastern shipyards, currently favoured for their cheap labour costs as well as the weakness of the dollar. The other significant trend of this market is the halt on the ever-growing size of PSVs and of the engine power of AHTS.

Our explanation for these phenomena is triple: there are few orders coming from Norwegian owners as the North Sea market has remained flat for most part of 2004, oil companies' needs have been concentrated on production in deep waters and finally, owners are following the general movement towards cost cutting.

It is worth noting an inversion of trend during the course of the year for Norwegian shipyards, which have filled their orderbooks, even though they were limited by their Polish or Romanian sub-contractors production capacities to build the hulls.

This general demand from charterers to reduce 'logistics' costs in the exploration/production process, passed onto owners, has resulted in an effort to standardise ships with more orders for series and the research into more optimised designs coming also from the Far East. In this respect, the diesel-electric engine solutions mainly developed by Norwegian manufacturers incorporate true advantages, particularly in relationship with dynamic positioning equipment compatibility, which is now a standard feature on most new ships, for a reduced price.

The choice of diesel-electric propulsion, combined with the installation of azimutal propulsion sets, has also contributed to reduce construction costs by simplifying the hull forms.

In 2004 both PSVs and AHTS delivered by the yards found employment, even if charter rates were not always at levels hoped for by the owners.

The North Sea market was the catalyst in the recovery of the offshore market. As an example, an AHTS of 200 t bollard pull chartered out on the spot market at the beginning of the year at 15,000 $ per day, obtained 45,000 $ per day in December. It was the same for the Gulf of Mexico where the employment rates of vessels finally saw an increase after four very poor years. Egypt, the Middle and Far East also saw chartering rates on the rise by employing more powerful AHTS.

At the end of 2004 several important owners no longer had any modern units to charter out, which leads us to be relatively optimistic as to the market's ability to absorb the large number of PSVs and AHTS that are due for delivery in 2005.

There has been a rapid increase in the already substantial fleets operated by Singapore owners. As an example we can cite Jaya, which had 21 AHTS, 2 PSVs and 6 other ships under construction at the end of 2004. Fleets that are in the hands of Middle East owners have also seen a significant development with, for instance, Maridive in Egypt which controls nearly 50 ships including 7 under construction in India.

Western owners have started or boosted their fleet renewal programmes.

Groupe Bourbon has ordered 8 PSVs (GPA 670 type) and 4 AHTS (Conan Wu type of 70 and 80 tons bollard pull) in China. There are also 4 AHTS (120 t bollard pull, Conan Wu design) with Keppel Singmarine in Singapore, as well as 2 fast supply ships in aluminium based on an innovative French concept (Mauric design) with the Piriou shipyard. The Bourbon Group is continuing to expand and hopes to conquer new markets.
 


 
Bourbon Helios
Platform supply vessel, GPA design, 3,300 dwt, to be delivered by Zhejiang in 2005, will be operated by Groupe Bourbon Offshore division

We can mention the example of Tidewater, which has ordered 8 AHTS, 4 PSVs and half a dozen of smaller units. They have ordered these ships with the intention of replacing some older units and thus avoid important expenses to keep them in proper running condition and getting them re-classified.

Edison Chouest Offshore has ordered 7 offshore vessels and 4 fast supply ships.

In 2004, Seabulk Offshore contracted with Labroy shipyard of Singapore 8 AHT/AHTS mainly for the West African market.

Swire Pacific Offshore has 9 AHTS on order in the Far East, of which 7 of the UT 780 type - 4,800 bhp with Labroy.

Delivery of new units ordered in Asia are spread out until 2006.

Beside these PSV and AHTS fleets, we have seen a noticeable increase in the demand for fast craft, over 20 knots, built of aluminium, 40 metres long or more, designed to carry dozens of passengers and some cargo on deck. In the future, under deck bulk capacities are also being envisaged. At last a new market has emerged concerning small, specific units aimed at providing security protection for offshore oil fields capable of carrying armed men aboard.

In addition, several governments, particularly in Europe, have launched programmes to renew or to complete their fleets for assistance or intervention as well as anti-pollution surveillance ships. These building programmes are benefiting essentially European shipyards.
 


 
Ice-breakers

The opening of the Russian market, giving access to the Arctic, from the Barents Sea to the Bering Straits, has stimulated orders for the offshore markets, but also to serve the exports terminals of the 'on-shore' production.

Amongst these we can mention:

 ' Swire Pacific / Primorsk with an order for three UT 758 of 90 meters, ice-breaker, at Aker Yards for 500 million Norwegian kroner. ' Rieber Shipping / Primorsk with an order for a ice-breaker / tug, at Aker Langsten for 351 million Norwegian kroner. ' Sevmorneftegaz / Fesco with an order for two ice-breakers at the Havyard Leirvik shipyard for 53 million euros.
 

Underwater construction and installation ' IRM Market (Inspection Repairs and Maintenance)

The year 2004 was characterised by a marked revival in the underwater construction activity and also with the happy resolution of financial crisis of Stolt Offshore, who managed to transform its debts into capital and was able to win contracts at more favourable conditions. The Stolt Nielsen group sold its interests in Stolt Offshore thus ending an historic participation in the sector. McDermott has strengthened its presence with an expansion programme.

This industry has continued its consolidation of which one of the stages was the repurchase by Siem Industries Inc. of the remaining 50 % share of Subsea 7 previously controlled by Halliburton. It appears also that Torch Offshore is in a particularly precarious situation and is likely to dispose of a number of ships especially the 'Midnight Express'.

European underwater contractors are in a better shape than their American rivals, with the exception of Cal Dive and Global Industries. The revival of so-called traditional offshore activities in shallow water in the Gulf of Mexico, should help contribute to their improved situation.

The start of large installation projects in West Africa, Egypt, and Brazil is helping to bolster activity, to the point that some operators are announcing that they have almost none of their main ships available until 2008. The Far East, traditionally in low profile, will also absorb some ships in 2005. Subsea 7 has made a remarkable break-through in West Africa, a market up until now shared essentially between Technip Offshore, Saibos and Stolt Offshore.

The possibility to have the right vessel at the right time is a key to success in the underwater construction market, but it should be appreciated that the fleet is ageing. In practice, with the exception of several units coming into service at the initiative of owners of supply vessels, such as the 'Boa Deep C 1', the 'Normand Cutter' (a converted cable-layer chartered to Sonsub) the barge-laying 'Jascon 5' and the construction of the future 'Normand Installer' (a joint project between SBM and Solstad), no major project has been launched or realised in 2004.

Consequently 2005 should see the launching of several significant projects by the Majors, namely large laying and installation ships (150 m x 30 m or more) capable of laying pipes of 16 to18 inches at a depth of over 2,000 metres. The major concern will be the response capability of the shipbuilding market, which has never seen such a level of activity.

The recovery of the underwater construction market both in the area of new developments and in the area of the maintenance of new fields, has logically helped sustain and stimulate the activity of supply vessels such as the MPSV (Multi-Purpose Supply Vessels) fitted with a strong lifting capacity (more than 100 tons at sea-level). They are also employed in light construction works and more generally in the IRM market of which the main players remain the owners of supply ships mentioned in the previous chapter.
 

The seismic market

The four principal operators, WesternGeco, Veritas, Petroleum Geo Service (PGS) and Compagnie G'n'rale de G'ophysique (CGG) have also benefited from a surge in activity. Hardened pessimists have been obliged to revise their opinion about the future of this activity, which particularly suffered over the past four years. CGG seems to have abandoned its ambition to merge with PGS after its offer was declined by the latter's shareholders. Nonetheless, a new consolidation would benefit this sector. At the start of 2005, operators are working already on the programme for 2006, which is exceptional given the average duration of seismic acquisition contracts.

Technologies continue to improve the quality but also the range of seismic work, since it is now possible to detect oil or gas up to a depth of 6,000 meters. These gains will incite operators to improve their marine logistics globally and probably to charter more specific supply ships for longer periods.
 

Drilling market

The offshore drilling industry is undergoing a real change in situation which began at the start of 2004, with an increased level of utilisation of jack-up rigs to drill in shallow waters.

At the end of 2004, few units of the 300 feet jack-up rigs type remained available in the short term. Freight rates for deep-water drilling rigs are heading toward the $ 300,000 per day level. The second generation semi-submersibles, which drill at 1,500/2,000 feet depths, are benefiting from the rebound in the North Sea market and obtain more than $ 100,000 per day for short term contracts.

The industry continues to gravitate around the fleets controlled by the six American majors, Pride, Diamond, Ensco, GlobalSantaF' (GSF), Noble, Transocean and by four competitors of substantially smaller size namely Stena Drilling, Maersk Drilling, Atwood and Rowan. By and large, the drilling companies dedicated 2004 to consolidating their balance sheets. Pride should probably sell some supplementary assets, with a view to be in a better position for new investments over the coming 2005 / 2006 period. As to GSF, they anticipated the change in the market and fixed four units which are being completed in Singapore (2 semi-submersibles and 2 jack-ups).

Opportunities to convert, modernise and build new drilling rigs will be possible as soon as the oil companies offer long term charter opportunities. It is worth mentioning the order of three jack-up rigs in Singapore on a speculative basis by a group of Norwegian investors, as well as another unit ordered by the Norwegian Odfjell.

In this sector, the Keppel Fels group plays a predominant part, which is based on its world-wide network of yards for repairs and shipbuilding, on its capacity to offer the market standard jack-up rigs, also adaptable to specific needs for drilling, and finally on its role as a speculative investor.

The Sembawang group for its part maintains a share of the market due to the specific expertise of PPL Shipyard. Finally Chinese builders, such as Dalian, have emerged but remain principally concentrated on their domestic market.
 



 
Production market (surface systems)

This year has seen Stolt Offshore shed itself of engineering, construction project, and integrated production systems by the sale of its affiliate Paragon. The leaders, who are Saipem and Technip, obtained some prestigious but high resource-consuming contracts, linked to developments in West Africa but also in the Persian Gulf (Qatar project) and the Caspian Sea (Kashagan phase 1).

Despite the small number of contracts recently awarded (of which SBM with Petrobras of Brazil and Bergesen with Woodside in Mauritania), the number of tenders open or due to come out in 2005 for leasing FPSOs has considerably increased. These tenders are primarily related to West Africa, Brazil, South East Asia and Australia. These projects require storage ship hulls of two million barrels, except for the last two zones, which regularly require Suezmax size units. In the second-hand market, which is somewhat overvalued, it is obvious that the number of available ships has become considerably reduced. In addition, oil companies are more and more reluctant to accept hulls over 20 years old. As from now, charterers of FPSOs are proposing either to use modern ships or to build new hulls to meet their standards, in line with the order placed by Modec (Mitsui group) and awarded to Samsung.
 

The dredging market

From the point of view of contractors, the sector has continued to consolidate. 2004 saw the final absorption of Ballast-Ham by Van Oord. Despite a difficult context due to the halt of the huge Singaporian projects, a revival in world demand in volume is expected for 2005. Current projects in the Persian Gulf, China and the Sakhalin Islands have continued to keep the contractors busy.

Jan de Nul is pursuing his modernisation programme and the expansion of his fleet. It's the only Major that has built up his investments in an original and audacious strategy, by ordering small sized dredgers in China. These orders have demonstrated Jan de Nul's know-how in engineering and project management.

In France, DTM has confirmed the order of a 2,200 cbm sand-dredger with the Barkmeijer shipyard in the Netherlands, for delivery in 2005. GIE Dragages-Ports has concentrated on restructuring and rationalising its fleet. It should confirm in 2005 an order for a 700 cbm grab hopper dredger fitted with a dredge pipe.

Finally, there has been the U-turn of the IHC group, which has finally abandoned its shipyards, including the famous IHC Holland, designer and builder of dredgers. The expertise of Dutch dredging specialists tends to be concentrated in the engineering work and the manufacturing of dredging equipment.
 


 
Goenisio Barroso
Anchor-handling tug supply, delivered in 2004 by Fels Setal, operated by Delba Maritima (Brazil)
Conclusion

A lot of uncertainty has been removed by the outcome of the American elections. In addition the forecast is for a new increase in world oil and gas demand.

Oil companies today possess very important financial capacities. Exploration has been considerably reduced these last few years, whereas the increase in proven reserves is now a strategic target.

These circumstances augur well for the offshore industry as a whole for the year 2005 and should apply to all geographical zones.
 



Shipping and Shipbuilding Markets in 2004

I N D E X

›››File
FROM THE HOME PAGE
Austria's Gebrüder Weiss has inaugurated a new logistics terminal in Tyrol
Reutte / Lauterach
It is located in Reutte, near the border between Austria and Germany
Maersk-SIPG agreement for bunkering of green methanol in the port of Shanghai
Shanghai
Expected supply from ship to ship of the new container ships ordered by the Danish company
ESPO, ships should use cold ironing systems in ports, if available, already before 2030
Brussels
Ryckbost : It is hoped that the requirements for ships related to when to use electricity at berth clarify the matter
ECSA, EU agreement on ship fuel gives strong political signal and provides clear climate goals and guidance for industry
Brussels / Rome
Assshipowners, welcome our main instances
T&E, today's EU decision marks the beginning of the end of dirty fuels in the shipping industry
Brussels
The organisation highlighted the need to prevent the agreed standards from presenting loopholes
Agreement of the Parliament and of the EU Council on the use of fuels for decarbonisation of shipping
Agreement of the Parliament and of the EU Council on the use of fuels for decarbonisation of shipping
Brussels
From 2034, the share of renewable fuel will have to be more than 2% percent. Emissions will have to be reduced by 2% percent by 2025 and by 80% percent by 2050. From 2030 container ships and passenger ships will have to use ground electricity in major European ports
Subscribed to the contract to sell the yards Hellenic Shipyards to the Greek shipowner Prokopiou
Athens
The tender had been won with an offer worth 62.5 million euros.
ESPO presses why the ports that play a significant role in the EU's energy supply are also admitted to the TEN-T network
Brussels
According to the association, it is necessary to also take into account their role in the acceleration of the spread of renewable energies
In 2022 OOIL achieved record economic results
Hong Kong
In 2022 OOIL achieved record economic results
Drop in performance in the second half of the year
In 2022 French ports handled 293.7 million tonnes of cargo (+ 5.1%)
Ports
The figure is -6.0% percent lower than that of the pre-pandemic year of 2019.
Grimaldi signs agreement for the 67% acquisition of the Igoumenitsa Portuale Authority
Athens
Grimaldi signs agreement for the 67% acquisition of the Igoumenitsa Portuale Authority
"Our goal is to make the Greek airport realize its full potential for the benefit of all stakeholders, from shipping, transport and tourism to the local community," said Emanuele Grimaldi, who is also the first person to be able to make the Greek government.
Fedespedi, in 2022 container traffic in Italian ports increased by 2.4%
Milan
Overall decline of -1.0% of volumes in other container ports in the Mediterranean
In 2022 the port of Hamburg recorded a new record of goods from and for Austria
Hamburg
They amounted to 6.3 million tonnes (+ 12%)
Assshipowners represented to the EU the instances of Italian shipping on decarbonisation
Assshipowners represented to the EU the instances of Italian shipping on decarbonisation
Brussels
Messina : the new IMO CII, as it is thought today, leads to opposite effects compared to environmental safeguards, penning precisely the Italian navige
Protocol to develop the Alexandria Smisting stopover in an intermodal freight hub
Alexandria
By the end of 2024, the masterplan will be defined for the realization of a modal interchange pole
Ferretti group buys the Ravennate shipyard of the Rosetti Marino
Forlì
The acquisition has envisaged an initial investment of around 40 million euros.
A.P. Møller-Mærsk will sell the Maersk Supply Service to the parent company A.P. Møller Holding
Copenhagen
A.P. Møller-Mærsk will sell the Maersk Supply Service to the parent company A.P. Møller Holding
Transaction of the value of 685 million
Joint venture TX Logistik-Samskip-duisport to manage the intermodal terminal logport III in Duisburg
Joint venture TX Logistik-Samskip-duisport to manage the intermodal terminal logport III in Duisburg
Duisburg
It has an annual traffic capacity equal to 250mila units of cargo
Abu Dhabi Ports initiates a series of agreements to carry out port terminals for goods and cruise liners in Egypt
Abu Dhabi Ports initiates a series of agreements to carry out port terminals for goods and cruise liners in Egypt
Abu Dhabi
Signed the concession contract for the multipurpose terminal in Safaga
In February -43.1% of container traffic in the port of Los Angeles confirms the crisis phase of California's ports
Los Angeles
In February -43.1% of container traffic in the port of Los Angeles confirms the crisis phase of California's ports
They also suffer from the East Coast port scans. Expect a modest recovery starting in March
Freudenberg, Meyer Werft and Royal Caribbean are realizing a new fuel cell system for the naval sector
Papenburg
Freudenberg, Meyer Werft and Royal Caribbean are realizing a new fuel cell system for the naval sector
The first exemplar could be installed on the new "Silver Nova" cruise ship that will be completed in the next few months.
FEPORT satisfied with changes to the EU general exemption rules by category
Brussels
The federation continues to cover public investment of up to 150 million euros in ports, including those for cold ironing, the federation said.
Liberty Lines orders three more monocarena naval vehicles at Spanish shipyard Armon
Belrose
Liberty Lines orders three more monocarena naval vehicles at Spanish shipyard Armon
They will add to the nine already commissioned
Ceremony of laying of the keel of the Silver Ray by Silversea Cruises
Papenburg
The luxury cruise ship is under construction at Meyer Werft
Launched in China the first of two LNG Small Scale & Bunker ships for Fratelli Cosulich
Genoa
Will be taken in delivery in September
The CDA of Interporto Padova unanimously approved the draft budget 2022
Padova
Profit after taxes in line with that of the previous financial year
In Genoa, a centre for the development of new technologies for decarbonisation of shipping has been inaugurated.
Genoa
CapLab will be managed by Ecospray Technologies and the DICCA of the University of Genoa
Collaboration Agreement between the AdSP of the South Tyrreno and Ionian Seas and the University of Calabria
Cowithout
The agreement covers several areas of activity and expertise
In 2022 the transits of trucks through the Swiss Alps decreased by -1.7% percent. Stagnation of rail transport
Bern
In 2022 the transits of trucks through the Swiss Alps decreased by -1.7% percent.  Stagnation of rail transport
Still far away the goal of the transfer of the loads from the road to the rail
In the only fourth quarter of 2022, HHLA Group revenues grew by 4.9%
Hamburg
Operating profit fell by -8.8%
Touax closes 2022 with record revenue
Paris
Expected in 2023 normalization of the container market
E-fuel should only be reserved for air and sea transport
Rome
It highlights an analysis of Transport & Environment, which considers them not useful to decarbonisation of road transport
Agreement between five international organisations to increase the safe transport of cargo in containers
London
Memorandum of understanding subscribed by CINS, CHIRP, COA, ICHCA and SMDG
The port of Livorno initiates an agreement with the Uruguayan ANP for the development of traffics, in particular of forest
Livorno
The port of Livorno initiates an agreement with the Uruguayan ANP for the development of traffics, in particular of forest
In 2022, the labronic climber handled 2.13 million tonnes.
SAILING LIST
Visual Sailing List
Departure ports
Arrival ports by:
- alphabetical order
- country
- geographical areas
Rixi reassures on the implementation of the sea rollover of the Fincantieri shipyard of Sestri Ponente
Genoa
Rixi reassures on the implementation of the sea rollover of the Fincantieri shipyard of Sestri Ponente
MIT will launch the discussion with Italian Railway Network for moving the railway line
Maersk Air Cargo inaugurates an aeromerci service Europe-China
Copenhagen
Maersk Air Cargo inaugurates an aeromerci service Europe-China
It is the first air link for the transportation of goods between Denmark and Asia
In 2022, rail transport to and from the port of Livorno grew by 35.8%
Livorno
Drop of -35.4% in the Piombino stopover
In February, drop in freight traffic in the ports of Algeciras and Barcelona
Algeciras / Barcelona
Decreases of -12.3% and -11.6% respectively
PSA stores 2022 with record financial performance
PSA stores 2022 with record financial performance
Singapore
Revenue up 71.2%
Seabourn has sold the luxury cruise ship Seabourn Odyssey at MOL
Seattle
It was built by the yard T. Mariotti
Fine of $950mila at Taiwanese Wan Hai Lines
Washington
Transactive agreement with US federal agency FMC
In the third quarter of 2022, the traffic of goods in Greek ports fell by -3.1% percent.
In the third quarter of 2022, the traffic of goods in Greek ports fell by -3.1% percent.
Pyreo
Passenger in growth of 19.2%
Anti-piracy exercise in the Gulf of Guinea
Rome
Anti-piracy exercise in the Gulf of Guinea
It involved the ship "Commander Foscari" of the Navy and the mercantile "Great Luanda" of the Grimaldi
A Eurosceptic Federagents looks to South
Rome
Opportunities from the industrial, logistical and commercial activism of the MENA area countries
AD Ports initiates a letter of intent for the realization of a multipurpose terminal in the port of Pointe-Noire
AD Ports initiates a letter of intent for the realization of a multipurpose terminal in the port of Pointe-Noire
Abu Dhabi
The agreement has the duration of one year
ONE orders ten more new container ships from 13,700 teu
Singapore
They will be taken in delivery in 2025 and 2026
Tarlazzi (Uiltransport) : detach contract increases to avoid tensions in the world of work
Rome
"The government has a responsibility to avoid the transport of people and goods," he said.
PORTS
Italian Ports:
Ancona Genoa Ravenna
Augusta Gioia Tauro Salerno
Bari La Spezia Savona
Brindisi Leghorn Taranto
Cagliari Naples Trapani
Carrara Palermo Trieste
Civitavecchia Piombino Venice
Italian Interports: list World Ports: map
DATABASE
ShipownersShipbuilding and Shiprepairing Yards
ForwardersShip Suppliers
Shipping AgentsTruckers
MEETINGS
On April 18 Assiterminal will be confronted with politicians and practitioners on the challenges of portugal
Genoa
Meeting at the headquarters of the Federation of the Sea in Rome
On April 13 at Ancona a conference on health and safety at work in the port of port
Ancona
It is organized by Inail Marche in collaboration with the Central Adriatic Sea AdSP
››› Meetings File
PRESS REVIEW
Pressure grows on shipping industry to accept carbon levy
(The Guardian)
Leith Docks: 25 injured after research ship Petrel topples over in 'terrifying' 'major incident' in dry dock
(The Scotsman)
››› Press Review File
FORUM of Shipping
and Logistics
Relazione del presidente Daniele Rossi
Napoli, 30 settembre 2020
››› File
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Editor in chief: Bruno Bellio
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