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    Seabrokers give the low down on DOF deal with Shell

    Contracts, Tenders and Rates // August 20, 2004
    As Seabrokers reports in its latest monthly report, July saw District Offshore (DOF) and Shell do a 'Double DOF Deal' deal for the change out of two vessels for two new vessels.

    Firstly, DOF will give Shell the MT6009 Skandi Captain to replace the UT755L Skandi Waveney. This change out will take effect at the end of this year.

    "But why would DOF give Shell a higher specification vessel, asked Seabrokers?

    "Shell has agreed to extend the firm period, so DOF now have a firm Skandi Waveney contract until January 2009 for the Skandi Captain. The Skandi Captain will support Shell operations ex-Aberdeen.

    "The Skandi Captain is the first MT design of it's kind. Until now 'MT' vesselshave had a deck area of greater than 900m2, but the Skandi Captain is of the MT6009 variety with a deck area of 684m2, but with all the usual attributes of alarger MT vessel, this new sized MT will launch a strong assault on the medium sized PSV sector," noted Seabrokers.

    The second change out being made by DOF is that a larger newbuild MT6000 will replace the UT755 Skandi Yare currently working out of Gt Yarmouth.

    The newbuild vessel will deliver to Shell in circa June/July 2005. Again the question posed is why would DOF give Shell a large higher specification vessel?

    Again Shell extended the firm period for DOF on this vessel until January 2009. But is a longer contract worth the change out alone?

    "Well, as an added sweetener, Shell has also extended the contracts on the DOF's PSV UT705 Skandi Falcon until May 2006 and the PSV MT6000 Skandi Marstein until June 2006," Seabrokers explained.

    Unlike the outgoing Skandi Yare the newbuild MT6000 will support Shell operations ex Aberdeen. Shell are reported to be very happy at this change out,as it increases their total fleet deck area, and raises the proportion of diesel electric units within Shell's fleet to 62.5 per cent.

    Shell realises substantial cost savings using diesel electric, as the vessels don't burn so much fuel, which also has the added benefit of reducingemissions to the environment.

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