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    Standby vessel market remains "extremely tight"

    News // December 9, 2005

    Broker Seascope Offshore says the ERRV/standby market in the North Sea remains "extremely tight" with all owners effectively reporting no availability until
    the end of the year at least, although availability may ease marginally in the first quarter of 2006 as up to four ‘older’ vessels could enter the market after conversion.

    "The current availability of UK compliant vessels means that rate levels for short/medium term requirements are continuing to strengthen although there is very little tendering activity as the majority of deals are being concluded ‘off market’ or via call off agreements," Seascope explained in its newly published October-November report on the market.

    For a recent ConocoPhillips tender to support a one well (circa 75 days) programme in the South North Sea with Ensco 92 from end December / early January there were only 1-2 bidders and consequently rates levels for UK compliant vessels are reportedly in the £7,000-9,000 range.

    Seascope noted that Nomis have purchased two vessels from Tidewater – namely Cole Tide and Needham Tide – which will be modified for work in the UK sector. They will be renamed Dea Siren and Dea Ocean respectively and as a consequence their standby fleet will increase to 18 units.

     

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