OSV ORDERING INCREASES

Is an OSV ordering boom on the way? Maybe boom is too strong a word, but already we are seeing indications of a readiness by leading operators to renew their fleets, either by buying recent tonnage or, if necessary, placing newbuilding orders.

This is certainly the case in the deepwater sector of the market.
Tidewater has announced a $300 newbuild program that includes four 260 ft U.S.-flag vessels, two of which have already been awarded to its own Quality Shipyards. It has just announced orders for eight vessels to be built in the Far East: five large 280-foot anchor handling towing supply vessels with greater than 20,000 horsepower and three 260-foot platform supply vessels.

In Europe, meantime Maersk Supply Service has ordered two multipurpose anchor handling tug supply vessels from Volkswerft Stralsund, Germany for delivery first half of 2003. The two vessels will be sister vessels to Maersk Assister and Maersk Attender, which were delivered from Volkswerft Stralsund last year.
Maersk Supply Service has also ordered two 17,500 BHP UT722L type anchor handling tug supply vessels from Langsten AS, Norway for delivery first half of 2002.

Rolls-Royce has been profiting nicely from the UT design licenses since it acquired the former Ulstein Group.UT-Designs and packages of equipment from Rolls-Royce have been selected for 53 offshore service vessels over the past year.

Meantime, interestingly, the Ulstein shipyard, Ulstein Verft, which was left "orphaned" when the Ulstein Group was acquired, now has its own design department and its own designs (if your browser is functioning, you'll see one of them spinning around at the top of this page)

In December Ulstein Verft AS released the news that the yard had signed a contract with K/S Explorer I and K/S Explorer II to build two vessels of the yard's own designs; ULSTEIN P101 (Multifunctional Platform Supply Vessel) and ULSTEIN A101 (Anchor Handling Tug Supply Vessel).

For Ulstein the contracts are worth about NOK 700 million. Coupled with contracts previously signed with Solstad and Olympic Shipping the yard has an order book with a value of NOK 2 billion. The ships will be delivered in April and September 2002. This will keep everyone at Ulstein Verft fully employed through medio 2002.

Back on this side of the Atlantic, Hornbeck Offshore Services, a unit of Hornbeck-Leevac Marine Services, Mandeville, La., has embarked on a newbuilding program “to significantly increase the size of its seven-vessel, state-of-the-art OSV fleet.” It has signed a contract with Leevac Shipyards for construction of two ultra deepwater vessels with four to follow. The first will be delivered in February 2001. All are expected to be completed within the next 20 months.

The new boats will be 260-280 ft platform support vessels in the $18 million to $20 million a copy price range.

Hornbeck followed this order with an order on Atlantic Marine's Alabama Shipyard for construction of two 260 ft, DP-equipped supply boats.

STRETCHES
Ensco is in the middle of a program that involves stretching six 180 ft supply boats to 230 ft, at a cost of $5 million a boat.

Stretches are also part of a continuing expansion plan by Edison Chouest Offshore (ECO), Galliano, La. In December, it announced plans to continue a newbuilding program that has already produced over fifty new generation offshore vessels servicing the deepwater oil and gas industry.

Chouest has committed to an aggressive new program that will produce a number of new generation vessels over the next few years—including the world’s largest anchor handling vessel. The program also includes six 260 ft new generation deepwater supply vessels, two 165 ft fast supply vessels, as well as the conversion of an existing vessel into the largest offshore supply vessel in the U.S. market,

ECO’s affiliated shipyards in south Louisiana, North American Shipbuilding in Larose and North American Fabricators in Houma, will not only perform all construction work on the various newbuild projects, but will also perform modifications on several Chouest seismic vessels being converted to offshore supply vessels.
The reasons for the aggressive newbuilding program are quite simple, according to ECO’s vice president of business development, Roger White.

“We have a reputation of providing tomorrow’s equipment today, and once again Chouest is leading the industry in servicing our deepwater customers,” noted White. “These additional new vessels, along with the conversions, are all designed to service our customers’ requirements.”
ECO’s yards have already begun construction on the first four of six 260 ft new generation deepwater supply vessels, the first to be delivered within the next few months. Delivery is also expected during calendar year 2001 on the two additional 165 ft fast supply vessels.
North American Shipbuilding is preparing to convert the Margaret B. Chouest, currently the largest vessel in the Chouest fleet at 320 ft, to the largest offshore supply vessel in the U.S. market. The vessel was constructed in 1995 as a container cargo vessel, and has recently returned from its service requirements with the U.S. Navy.
The impressive vessel has approximately 5,000 tons of deadweight capacity, and will be modified to carry 12,000 barrels of liquid mud as a dynamically positioned class 2 (DP2) offshore service vessel (OSV). The vessel is capable of maintaining 17 knots speed in a sea state 3 fully laden.

The record breaking newbuild in the Chouest program will be the construction of a 347 ft long by 72 ft beam vessel with a deadweight of 6,500 tons—the largest anchor handling vessel in the world. The vessel will be equipped with the largest winch system ever installed on an anchor handling vessel, producing a 600 ton pull. A bollard pull of 360 tons is anticipated from the vessel whose installed power rating will be 30,000 horsepower and capable of operating in depths of up to 12,000 feet.

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