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Island Commander to be laid up in Ulsteinvik

Island Commander laid up in Ulsteinvik
Island Commander laid up in Ulsteinvik

Island Offshore has decided to lay up the platform supply vessel Island Commander in Ulsteinvik. The vessel has been offered in the spot market since June this year, but has not been granted any tender since the beginning of September.

“The PSV market has developed negatively throughout the fall, and it is sad to see that this fantastic vessel is not able to secure any work. We see no other option than to take Island Commander out of operation,” says Håvard Ulstein, Managing Director of Island Offshore Management AS.

The Island Commander will still be offered to the market on long-term contracts, and will be put in back in operation if the vessel secures a contract.

With this Island Offshore has seven vessels laid up; three of them only for the winter.

 

3rd quarter financial report for island offshore shipholding lp

 

 

The 3rd Quarter Financial Report for Island Offshore Shipholding LP is now released.

 

 

For more information, please contact:

 

Mr. Henning Sundet, Chief Financial Officer: hsundet@borgstein.no, +47 913 65 735

islandoffshore_q3_financialreport_2015.pdf
Island Spirit laid up for the winter
Island Spirit laid up for the winter
Island Spirit laid up for the winter

Island Offshore has decided to lay up the ROV and survey vessel Island Spirit for the winter season. Typical duties performed by Island Spirit are IMR work, survey work and ROV operations but the activity in this segment is expected to decrease in the coming months.


“We are working on relocating some of the crew, but unfortunately there will be some temporary lay-offs. Our hope is that the vessel will be fully operative in the beginning of 2016 with the same crew on board,” says Managing Director in Island Offshore Management AS, Håvard Ulstein.


With this Island Offshore has got six vessels laid up: Three platform supply vessels (PSV), two light well intervention vessels (RLWI) and one survey vessel. The three latter vessels are only laid up only for the winter months.

 

Open water coil tubing; a game changer in the offshore industry

Pilot hole drilled by Island Constructor
Pilot hole drilled by Island Constructor

Island Offshore recently made history when they successfully drilled a pilot hole for Centrica Energy by means of open water coil tubing. This technology has never been utilized in the offshore industry before and proves to be a safer and cheaper alternative to traditional drilling using a rig.

MOU Island Constructor was given the assignment to drill a shallow gas pilot hole down to 360 meters below mud line at the BUTCH PL 405-field, north of Ekofisk, to log for gas, and plug the pilot hole with cement if gas was discovered. Pilot holes are drilled to reveal shallow gas in the formations in advance of the actual drilling of the production wells. Shallow gas can be described as hidden gas pockets encountered at a depth close to the surface or mudline which can lead to blowout in the early stages of drilling.

“To use a rig for pilot hole drilling is much more costly than using a mobile offshore unit like the Island Constructor. Should one come across gas and the hole needs to be plugged, it will imply large costs to move the rig to a new location for a possible new pilot hole. The risk involved with using a rig compared to a vessel is also considerable as it will need far more time to move away should a blowout occur,” explains Anders Olsen, Project Manager in Island Offshore.

“In addition the coil tube’s flexibility makes the vessel able to keep pumping mud down the well to stop a potential shallow gas blowout, while moving to a secure area,” Olsen continues.

No riser

Instead of using a marine riser, the coil tube is kept in tension between the vessel and the subsea injector by means of a second injector installed on board. The actual tube does not rotate, only pressurized fluid inside the coil activates a hydraulic motor which makes the bit rotate. The subsea injector pushes and pulls the coil tube in and out of the well.

“We have aimed for this since 2009. With coil tubing one can perform heavy maintenance to increase production and squeeze more oil and gas out of the wells,” says Dept. Manager Top hole drilling in Island Offshore, Per Buset.

Today these operations are performed by using a marine riser from a rig, which one can feed the coil tube down into. This is both expensive and time-consuming.

Island Offshore owns and operates three light well intervention vessels in the North Sea. Traditionally these vessels run wireline down the wells. One can perform some maintenance with wireline technology today, but with coil tubing one can do considerably more. Pumping fluid down the well and perform heavier maintenance such as scale removal in the production tubing to achieve original dimension of the tube is one example.

Pioneering in several markets

Last year this innovative technology was applied for the very first time in a totally different setting: It was used to drill core samples for what is to be the longest and deepest subsea road tunnel in the world, named Rogfast. The contracting company was the Norwegian Public Road Administration.

“We are now taking the next step with coil tubing. To apply this technology in pilot hole drilling is pioneering. This is a challenging and exciting project which receives great attention with our customer and the industry in general. In addition to be significantly safer and cheaper than using drilling rigs, emissions to the environment are also reduced with 50% compared to conventional drilling,” says Project Manager Olsen.

“After finishing the Rogfast-project with great success our technology was now qualified, and the oil companies started realizing that the same technology could be used to drill the topmost part of a well to log for shallow gas. Centrica Energy took the plunge and became the first company in the world to use this kind of technology for offshore purposes,” says Top hole drilling Manager Buset.       

The operation was planned to last for seven days on the field, but it was finished in just over four days without finding shallow gas. With that the drilling rig could start drilling the production wells and be sure that it is gas free.

“Moving a rig and other equipment on the seabed due to shallow gas are very costly; several hundred million NOK in a worst case scenario. By using our alternative method Centrica has, according to their calculations, saved roughly 30-50% compared to using a rig. In addition the risk level is dramatically reduced,” Buset continues.

Developed and owned by Island Offshore

Island Offshore is the developer and the owner of the technology which is integrated with Baker Hughes’ topside equipment. The aim is to use the same principle within light well intervention, plug and abandonment as well as other types of well intervention.

In August this Year Island Offshore received a technology award for this exact technology during the Deepwater Intervention Forum in Galveston, Texas.

“To receive this award is a confirmation to us that the industry believes in our technology. The Butch-project gives Island Offshore the chance to develop the open water coil tubing technology, and with that expand the range of services within an exciting market where innovation, low production costs and operational flexibility is vital,” Olsen concludes.

 

For more information, please contact Island Offshore:

 

Håvard Ulstein, Managing Director

Mob.: +47 99 23 50 39

Email: havard@islandoffshore.com

Or

Per Buset, Dept. Manager Top Hole Drilling and P&A Activities

Mob.: +47 91 83 92 89

Email: per.buset@islandoffshore.com

q2 financial report island offshore shipholding lp

The Q2 financial report for Island Offshore Shipholding LP is now available.

 

For more information, please contact:

 

Mr. Henning Sundet, Chief Financial Officer: hsundet@borgstein.no, +47 913 65 735

islandoffshore_q2_financialreport_2015.pdf

Subjects lifted for Island Navigator contract

Subjects lifted for Island Navigator contract!
Subjects lifted for Island Navigator contract!

Island Offshore has today lifted the remaining subjects in the shipbuilding contract with Kawasaki Heavy Industries for delivery of the Island Navigator. The vessel is a combined well intervention- and tophole drilling vessel with equipment and capacity to perform a series of complicated subsea- and well operations.

“This is yet another milestone for Island Offshore. We have worked on the design of this vessel for three years; a project that benefit from our experience and competence within well intervention operations through the last nine years,” says Managing Director of Island Offshore Management AS Håvard Ulstein.

Island Navigator will be 169 metres long, with significant operational regularity due to the specific design of the vessel. The helicopter deck is moved towards the middle of the vessel to secure optimal landing conditions in rough weather, in such a way that crew changes are performed as planned and the operation is continued. Island Navigator will also be equipped with a built-in handling tower which secures a safe working environment during operations in harsh conditions. In addition the vessels holds the highest dynamic positioning class, ice class (ICE-1B) as well as the highest possible comfort class.

“This vessel will be a significant contribution to our service range and to Island Offshore as a company. We have great confidence in this project,” says Ulstein.

Island Navigator is designed by Rolls-Royce and is of design type UT 777. It will be built according to Mobile Offshore Unit regulations and is per definition a mobile installation.

The vessel is fully financed through Japanese finance institutions, with expected delivery in 2018/2019.

 

 

For more information please contact Island Offshore Management AS:

Tommy Walaunet, Deputy Managing Director

Email: tommy@islandoffshore.com +47 70400022

Marianne Hovden, Communications Manager

Email: marianneh@islandoffshore.com +47 70400060

Reduced working hours for land based employees in Island Offshore

As a contribution to reducing costs, Island Offshore is introducing reduced working hours for all office employees in Ulsteinvik, with effect from 1st of August 2015. This is done to mitigate the implications of the weak offshore market, lay up of vessels as well as postponed new building deliveries. Island Offshore has chosen a collective solution to avoid lay- offs and dismissals.

“It is important to us to stand together in this. This way we also retain the significant competence we have built up over time. We know that we are asking for a lot of our employees, hence it is very nice to see that everyone support this solution,” says Håvard Ulstein, managing director of Island Offshore Management AS.

The working hours will be reduced with 10%, and the arrangement will be continuously assessed in light of the market situation.

 

 

Arbeidstidsreduksjon for dei landtilsette i Island Offshore                        

Som eit ledd i å få ned kostnadane for reiarlaget, innfører Island Offshore redusert arbeidstid for alle kontortilsette i Ulsteinvik med virkning frå 01. august 2015. Bakgrunnen for reduksjonen er den svake marknadssituasjonen, opplag av fartøy samt utsatt byggeprogram. Reiarlaget har valt ei kollektiv løysing for å unngå permitteringar og oppseiingar av tilsette.

  • Det er viktig for oss å stå samla i dette, og det er også ein måte å halde på den gode kompetansen vi har bygd opp over tid. Vi veit at vi krev mykje av dei tilsette, difor er det ekstra godt å sjå at alle stiller seg bak denne kollektive løysinga, seier Håvard Ulstein, administrerande direktør i Island Offshore Management AS.

Arbeidstida vil verte redusert med 10%, og ordninga vert fortløpande vurdert i forhold til marknadssituasjonen.

 

 

For more information please contact Island Offshore Management:

Håvard Ulstein, Managing Director

Tel. (47) 70 00 86 21/ 99235039

E-mail: havard@islandoffshore.com

 

 

Extended charter period for Island endeavour and Island earl
Island Endeavour and Island Earl awarded contract extensions!
Island Endeavour and Island Earl awarded contract extensions!

The two offshore supply vessels Island Endeavour and Island Earl have been awarded contract extensions with their existing charterer.

Based in Den Helder in the Netherlands, the two vessels have been on time charter to Peterson supporting the SNS Pool in the southern sector respectively since August 2008 and January 2009. The extensions cover a firm charter period throughout January 2017 for both vessels.

“This contract extension is important to Island Offshore in such challenging times. We are very pleased to see that our vessels are preferred, and we look forward to future co-operations with Peterson and the SNS Pool,” says managing director of Island Offshore Management AS Håvard Ulstein.

 

For further information, please contact Island Offshore Management:

Håvard Ulstein, Managing Director Tel. (47) 70 40 00 21

E-mail: havard@islandoffshore.com

or

Hallgeir Reitan, Chartering Manager Tel. (47) 70 40 00 23

E-mail: hallgeir@islandoffshore.com

 

Q1 financial report Island Offshore Shipholding LP

The Q1 financial report for Island Offshore Shipholding LP is now available.

 

For more information, please contact:

 

Mr. Henning Sundet, Chief Financial Officer: hsundet@borgstein.no, +47 913 65 735

 

islandoffshore_q1_financialreport_2015.pdf

Extended charter period for Ocean Intervention III

Oceaneering is extending the contract period for Ocean Intervention III!
Oceaneering is extending the contract period for Ocean Intervention III!

Island Offshore is pleased to announce that Oceaneering International GmbH has extended the charter period for Ocean Intervention III with one year. Options for further extensions are included in the contract.

Ocean Intervention III is performing subsea IMR work in Angola, and has been in service for Oceaneering since 2007.

“We are very pleased with this extension and look forward to continue the good cooperation with Oceaneering in the year to come,” says Managing Director in Island Offshore, Håvard Ulstein.

 

For more information, please contact:

 

Håvard Ulstein, Managing Director

Tel. (47) 70 00 86 21, E-mail: havard@islandoffshore.com

or

Hallgeir Reitan, Chartering Manager

Tel. (47) 70 00 86 23, E-mail: hallgeir@islandoffshore.com

 

Island CHampion has secured a one year extension with team marine

Island Champion has been awarded a one year contract extension with Team Marine.
Island Champion has been awarded a one year contract extension with Team Marine.

Island Offshore is pleased to announce that Island Champion has secured a one year extension on their contract with Team Marine (Chevron). Island Champion has been on contract with Team Marine since 2007, and is part of a pool of PSV’s based in Aberdeen.

Island Offshore looks forward to continue the great cooperation with Team Marine.

 

For more information, please contact:

 

Hallgeir Reitan, Chartering Manager
Tel. (47) 70 00 86 23
E-mail: hallgeir@islandoffshore.com

Island Valiant has secured P&A job
Island Valiant to perform P&A for OIS!
Island Valiant to perform P&A for OIS!

Island Valiant has secured a contract with Offshore Installation Services Ltd performing plug and abandonment; a long-term priority area for Island Offshore. The job is on the UK sector, commencing between 10th of June and 12th of July, and is 28 days firm with an option on 28 more days.

Island Clipper’s first contract secured

Island Clipper has secured it's first contract!
Island Clipper has secured it's first contract!

Despite a challenging spot and term market, Island Offshore is pleased to announce a 3 month contract for Island Clipper. This will be Island Clipper’s first job since Island Offshore took delivery of the vessel earlier this month.

 

The work period will commence 10th of May and the work mode is well stimulation in the UK sector. Charterer has the option to extend the work period with 3x1 wells, each with an estimated work period of 2-3 months.

 

Contact information:

Håvard Ulstein, Managing Director, +47 99 23 50 39

Island OFFSHORE with top score on Environmental Ship index
Island Chieftain with lowest emissions to air!
Island Chieftain with lowest emissions to air!

In the World Port Climate Initiative, the world’s key ports have committed themselves to reducing their air pollutant and greenhouse gas emissions whilst continuing their role as transportation and economic centres.

In order to effectuate one of the missions of the WPCI, some leading ports have started to provide discounts on harbour dues to the cleanest ships calling at their port, on the basis of the Environmental Ship Index (ESI).

With seven vessels among top 15 of 3484 ships (April 2015), Island Offshore stands out compared to other ship owners. Due to large investments in purification plants Island Chieftain and Island Condor top the list and the five other registered vessels are right behind.

It is particularly the low NOx emissions that make Island Offshore exceptional as this depends on either good purification plants or LNG as fuel. Even the powerful anchor handlers Island Vanguard and Island Valiant enter the list with great results.  Island Offshore’s emission of SOx is more equal to the emission of other similar vessels close to the top of the ESI index as this depends on the amount of sulphur in the fuel the vessels use. This is regulated and the same regulations apply for our competitors as well.

An important contributor in the fight against NOx emissions is the Norwegian NOx-fund. This is a Dutch treat where companies pay a voluntary NOx fee to the fund, and in return the companies can apply the fund for subsidiaries when introducing measures to reduce NOx emissions.

Island Offshore has a continuous focus on the environment and are currently testing new systems to improve even more.

 

Link to ESI: http://www.environmentalshipindex.org/Public/Ships

Island Offshore has taken delivery of Island Clipper
Island Clipper is delivered to Island Offshore!
Island Clipper is delivered to Island Offshore!

On Thursday 09.04.15 at 13.05 Island Offshore took delivery of Island Clipper from Vard Brevik.

Island Clipper is a platform supply vessel which will perform duties such as carriage of general cargo, pipe cargo on deck, cement/barrite and liquid cargo to and from offshore installations. In addition Island Clipper is equipped with special product tanks for chemicals. The vessel is also prepared for oil recovery and stand-by duties, and is winterized with a "deice" class notation.


Island Clipper is 97 metres long, with a width of 20 meters and a cargo deck area of 1000m2.The vessel's accomodation area is extra isolated to reduce noice and is arranged with 41 single cabins.

Historical result for Island Offshore

The Island Offshore Group reports 2014 revenue of NOK 2.732 mill which is 25% higher than 2013. Fleet utilization was 91% in 2014 which is satisfactory considering completion of a significant maintenance and modification program and a disappointing spot market. A total of 5 new vessels was added to the fleet in 2014 and 2 vessels were sold during the year.

EBITDA for the year totals NOK 1.270 mill, up from NOK 885 mill in 2013. 2014 figures include a sales gain of NOK 277 mill.

2014 profit before tax is NOK 406 mill including unrealized disagio of NOK 210 mill related to conversion of USD denominated loans.

In addition to strong financial results, significant improvement in important QHSE figures was achieved during 2014, hereto reduced personnel injury frequency rate and reduction of the fleet’s emission of CO2.

Our strategy remains firm with focus on securing long term commitment with strategically preferred clients. The Group’s order backlog is still strong and totals NOK 6.4 billion which equals approximately 2.4 times 2014 revenue. Contract coverage for 2015 is approximately 80%.

 

A copy of the fourth quarter financial report is attached:

 

 

 

islandoffshore_q4_financialreport_2014.pdf

Island Offshore has resolved to lay up two PSV vessels

Island Offshore has resolved to lay up the two PSV vessels Island Duke
and Island Duchess for an indefinite period.

The lay-up of vessels is due to a worsening of market conditions following
reduced activity in the oil companies, especially in the North Sea but also
in other markets. As of today there is significant oversupply of vessels in
the market.


“The reduced activity level expected also in 2016 may worsen market
conditions further unless ship owners take responsibility to reduce the
supply of vessels”, states Mr. Håvard Ulstein, Managing Director of Island
Offshore Management AS.


The resolution will not have any short term implications for the crew as
they will be offered alternative employment within the fleet.


Contact information:


Håvard Ulstein, Managing Director, +47 99 23 50 39
Marianne Hovden, Communications Manager, +47 95 14 39 30

Island Crown- Contract award
Walk-to-work contract for Island Crown!
Walk-to-work contract for Island Crown!

Maersk Oil North Sea UK Limited has awarded a contract to Island Offshore covering the time charter of the purpose built walk-to-work, subsea support vessel Island Crown.

The duration of the contract is 100 days, with options to extend the contracts further. The vessel will commence the contract 01 June 2015, and the vessel is contracted to perform walk-to-work services on the UK continental shelf.

Since delivery in 2013 the vessel has successfully performed more than 500 connections to offshore installations and offshore service vessels by use of its fully integrated walk-to-work gangway, at heights between 10 and 25 meters above the water level in the North- and the Kara Sea.

 

For more information, please contact:

Hallgeir Reitan, Chartering Manager
Tel. (47) 70 00 86 23
E-mail: hallgeir@islandoffshore.com