Broker Seabrokers says the subsea market is beginning to see an increase in activity, not just in the number of tenders being issued, but more significantly in the number of long-term contracts being awarded.
In addition, the broker says that lengthy contract extensions are also being approved. An example is the recent contract extensions that Petrobras awarded Subsea 7 for three pipelay vessels that are working on multiyear day rate contracts offshore Brazil.
The firm contract periods for the sister vessels (2014-built Seven Waves, 2015-built Seven Rio and 2016-built Seven Sun) will now end during Q2 2021, Q3 2021 and Q2 2022 respectively.
Interestingly, rather than being awarded at lower rates than the original deals – as has often been the case in the last couple of years during the downturn – the extensions were awarded at the same day rates and on the same commercial terms as the original contracts and have a combined value of approximately US$250M.