Marine Link
Monday, January 23, 2017

World Energy Trends: What’s New in Floating Production

Where FPSOs are Being Planned. (Source: IMA/World Energy Reports)

Oil pricing continues to hover in the mid-$50s, market confidence is slowly returning and the production floater fabrication market is stirring. A major order for a production semi was placed in early January -- with Samsung receiving a contract to build the production semi for BP's Mad Dog Phase 2 project. The $1.27 billion unit will have capability to produce 110,000 b/d oil from 14 production wells. It will be used to develop further oil discoveries near the original Mad Dog Spar in the Green Canyon area of the GOM.

Oil and Trump: Russians Full of Optimism in Davos

What a difference a year makes. Twelve months ago, the mood of the Russian delegation at the World Economic Forum in Davos was distinctly gloomy, with oil prices near 12-year lows below $30 per barrel and Western sanctions depressing their economy and financial markets. Since then, however, Russian stock and bond markets have risen about 50 percent, boosted by rebounding oil and - more recently - expectations the new U.S. presidency of Donald Trump will ease the sanctions imposed over Moscow's actions in Ukraine. Russian officials and company executives at the forum attended by the world's political and business elites in the Swiss Alps this week were far more bullish, with many predicting the markets rally would continue this year.

Singapore Exchange to Open LNG Index

Image: Singapore Exchange Ltd

Singapore Exchange (SGX) is developing a spot pricing index for the Middle East and India liquefied natural gas markets (LNG) in collaboration with inter-dealer broker Tullett Prebon, says WSJ. The index is aimed at market participants who are forced to rely on tenders for setting up prices due to the lack of an accepted price marker. The deal is aimed at boosting Singapore's status as a key LNG hub providing storage, trading, shipping and price discovery activities. The new index aims to provide a credible…

DNV GL: First AiP for Scrubber Manufacturer in China

Liu Xiaofeng, Head of Dept. Noise & Vibration, Mechanical & System, DNV GL Maritime Advisory Services Greater China, Jacky Chow, Chief Operating Officer  Shanghai Bluesoul, sign the advisory service contract. Photo DNV GL

DNV GL has awarded the Chinese scrubber manufacturer Shanghai Bluesoul Environmental Technology with an Approval in Principle (AiP) in recognition of the technical feasibility of the BlueSulf scrubber system. The AiP is the first of its kind for a scrubber according to the new DNV GL rule set, and the first for a Chinese scrubber manufacturer. DNV GL will also provide advisory services to Bluesoul, including hardware-in-the-loop testing, simulations using the DNV GL COSMOSS tool and analyses using computational fluid dynamics (CFD).

Teekay Contemplates Norwegian Bond Issuance

Photo Teekay LNG

Teekay LNG Partners L.P. (Teekay LNG or the Partnership) (NYSE:TGP) announces that it intends to issue new senior unsecured bonds in the Norwegian bond market through an add-on to its existing Norwegian bonds due in October 2021 (TKLNG04 - ISIN: NO0010777089). The net proceeds from the bonds are expected to be used for refinancing of existing bonds and/or general partnership purposes, which may include funding installment payments on future newbuilding deliveries. A portion of…

Petrogas Hires jack-up Maersk Resolute

Courtesy Maersk Drilling

Maersk Drilling has been awarded a new contract with Petrogas E&P Netherlands B.V. for the High Efficiency jack-up, Maersk Resolute. The firm contract covers the drilling of the two wells, A8 and A9 in the A12 block of the Dutch continental shelf. The drilling of the two wells is estimated to have a duration of 75 days. Furthermore, an option to extend the contract for up to five additional wells exist. Operations are expected to commence in June 2017 in the Dutch Sector of the North Sea.

InterDam Debuts fire, blast resistant panel for Offshore

Test being conducted on the new pre-fabricated fire and blast resistant panel Photo InterDam

InterDam, supplier of fire and blast doors, walls and windows to the offshore Oil & Gas and Renewable sectors, is in the final stages of testing a new pre-fabricated fire and blast resistant panel. Called the Generation V, this new product comes hot on the heels of the company’s Generation IV fire-resistant sandwich wall system developed in response to the industry’s desire for using fully fit-for-purpose prefabricated walls that fit modular and standardized building designs. “Our customers are very concerned with safety,” said InterDam’s Managing Director Berend Groeneveld.

Norway Awards 4 APA Licensing to MOL

Photo: MOL Group

The Norwegian Ministry of Petroleum and Energy has announced the results of the APA (Award in Pre-Defined Areas) licensing round, which granted four licences to MOL Norge on the Norwegian Continental Shelf. MOL Group’s Norwegian subsidiary, MOL Norge participated in the second APA licensing round since MOL Group entered Norway in 2015. The awarded licences are located in MOL Norge core areas. “MOL Group unveiled a 2030 long-term strategy that targets that Exploration and Production should be a self funding and value generating business even in a low oil price environment.

SBM Offshore Shares Gain on Hopes of Brazilian Settlement

Shares in Dutch offshore oil industry services company SBM Offshore rose on Friday on a media report the company was close to settling a corruption probe with Brazilian authorities that has prevented it from bidding for work in a major market. The shares rose as much as 5.5 percent to a 17-day high of 15.29 euros after oil and gas magazine Upstream published an article indicating a deal was near, analysts said. SBM, which has been seeking a deal after being accused of paying bribes to executives of state-controlled oil company Petrobras, declined to comment. If it reaches a deal, SBM would be well placed to win a tender for the first floating production, storage and offloading (FPSO) platform for the giant Libra oil field offshore Brazil, KBC Securities analyst Tom Simonts said.

Asia Tankers-VLCC Rates Likely to Slide

File Image (CREDIT: AdobeStock)

Chartering activity could slow down in March due to refinery work; growth in tanker fleet could climb 6.5 pct, pressuring rates. Freight rates for very large crude carriers (VLCCs) are likely to fall next week as charter activity from China slows ahead of the Chinese New Year holiday, ship brokers said. Rates on the West Africa-to-Asia route have already started to slide probably because of the Chinese New Year impact, said Ashok Sharma, managing director, BRS Baxi Far East, Singapore. "I feel the Middle East has plateaued.

Ulstein Delivers Its Largest OCV

Island Venture steaming Photo Ulstein

'Island Venture', delivered on 17 January 2017, is so far the largest Offshore Construction Vessel (OCV) from Ulstein Verft, with a length of 160 metres and a beam of 30. The ship is designed by Ulstein Design & Solutions AS for Island Ventures 5 LLC. Vessel details OCV vessel for operations such as IMR, ROV services, well intervention and drilling. Max operational crane depth 4,000 m. Main moon pool opening 11.2 x 12 m, two work ROV moon pools. Extensive under-deck capacities for liquid and dry substances. Deck load capacity 9,000 t. Three separate engine rooms.  

Rotterdam port mull power-to-gas-plant development

Photo Port of Rotterdam Authority

Six Rotterdam-based parties will investigate how sustainably generated electricity, converted into hydrogen, can be used in the production of fuels. TNO, Stedin, Smartport, Uniper, BP Refinery Rotterdam and Port of Rotterdam Authority will investigate the technical and economic feasibility of a power-to-gas plant in the Rotterdam port area, as well as the necessary amendments to regulations. The parties above signed a cooperation agreement to this end on 18 January 2017. The construction…

EMGS Inks Charter for BOA Thalassa

BOA Thalassa Photo EMGS

Electromagnetic Geoservices ASA (EMGS) has signed a new charter agreement for the vessel BOA Thalassa with BOA SBL AS (owner of the vessel) at new and improved commercial terms. The new terms are valid through 1 October 2019 with an option to extend the new agreement through 1 April 2021. EMGS and the owners have agreed to a reduction of the charter hire rate by approximately 20%. EMGS and BOA SBL AS have also agreed to some additional flexibility during 2017. The new contract will have a firm start on 1 October 2017…

Norwegian Shipping Firm Denies Polisario Accusation of Illegal Shipment

A Norwegian shipping firm on Thursday denied a tanker it manages had violated a European court ruling after Western Sahara's Polisario movement accused it of illegally transporting an oil cargo through disputed territory it claims. The Polisario independence movement this week called on the European Union and French authorities to seize a France-bound cargo being transported on the Gibraltar-flagged Key Bay because the tanker had made a port call to Moroccan-controlled Laayoune on Jan. The Polisario said the tanker's call to Laayoune had rendered its cargo illegal as it had violated a ruling by the European Court of Justice last month that two trade deals between the EU and Morocco did not cover Western Sahara.

Israel Bolsters Navy to Protect Offshore Oil & Gas

An Israeli Navy boat patrolling in the Gulf of Eilat Israel (AdobeStock 067097)

Offshore energy platforms a potential target; Israel accepting bids on 24 new exploration blocks. Israel is boosting spending on its navy to better protect offshore oil and gas deposits and secure a large maritime zone that abuts that of its neighbour and enemy, Lebanon. The navy asked in 2013 for an increase in its budget of $700 million to build up its systems and $100 million annually to maintain them, though the defence ministry declines to say how much it has since received.

Van Oord inks Offshore Windfarm Deal

Map Courtesy Van Oord

Van Oord has been awarded the contract for East Anglia ONE offshore windfarm by ScottishPower Renewables (part of the Iberdrola Group) for the transport and installation of 102 three-legged jacket foundations. The East Anglia ONE offshore windfarm is located in the southern North Sea,  45 kilometers southeast of the town of Lowestoft, United Kingdom. The offshore wind farm will have 102 Siemens 7 MW wind turbines, with a total capacity of 714 MW. Once operational in 2020, the offshore wind farm will deliver sustainable energy to 500,000 households.

TechnipFMC Begins Operations Post-merger

Image: TechnipFMC

TechnipFMC has begun operating as a unified oil and gas services company following completion of the merger of Houston-based FMC Technologies and paris-based Technip. Now with a combined 44,000 employees, the new TechnipFMC will work on oil and gas projects, technologies, systems and services “from concept to project delivery and beyond” with headquarters in Houston, London and Paris. A key focus for TechnipFMC will be project economics across subsea, onshore/offshore and surface, the company said in a press release.

Shell Bolsters Offshore Wind Interests with Bid in U.S. Tender

Royal Dutch Shell has been shortlisted by the U.S. government to make a bid for an offshore wind project licence in the waters off North Carolina, as it comes under pressure from shareholders to diversify into green energy. Shell, as well as Norway's Statoil, qualified to participate in the upcoming leasing round offshore Kitty Hawk, the U.S. interior ministry said on Tuesday. The lease award is set for March 16. Shell's core business of producing oil and gas is reeling after more than two years of weak prices. The company has limited experience in building offshore wind farms but last month won a bid to build a 700-megawatt offshore wind farm in the Netherlands, together with more experienced partners.

Maersk CEO: Listing of Energy Unit Most Likely

A. P. Moller-Maersk's Chief Executive Soren Skou  (CREDIT: Maersk)

A. P. Moller-Maersk's Chief Executive Soren Skou sees a listing of the company's energy unit as the more likely option, he said in an interview with Bloomberg. He said that the company was still working on finding solutions for the energy unit and is looking at all options but that a stock exchange listing of the unit is probably "the more likely option". Skou replied "yes" when asked if a stock market listing looked as if it would make the most sense at the moment. Maersk, the world's biggest container shipper…

Feds to Offer 122K Acres Offshore NC for Wind

South Carolina Call Areas.

The Bureau of Ocean Energy Management (BOEM) announced that 122,405 acres offshore Kitty Hawk, North Carolina will be offered in a commercial wind lease sale on March 16, 2017. “Today’s announcement demonstrates how our collaborative efforts with Federal, state and local partners over the past eight years have built a foundation to harness the enormous potential of offshore wind energy,” said Secretary Jewell. The Kitty Hawk lease sale is the latest effort in the Obama Administration’s renewable energy program at the U.S.

Rotterdam Offshore Expands Operational Capabilities

ROG facilities in the Waalhaven. Photo Rotterdam Offshore

As of January 2017, Rotterdam Offshore Group has started to upgrade their facilities in the Waalhaven, Rotterdam. ROG has acquired the neighbouring land and buildings to their existing premises allowing the significant expansion of their quayside, storage as well as office capabilities. ROG will now be able to accommodate vessels up to 320 m in length where previously the maximum vessel length was 200 m. In March 2017, the project to demolish the existing company buildings will begin and the construction of the new state of the art office and workshop will start.

DNV GL Certifies Siemens’ 8 MW Offshore Wind Turbine

Photo: DNV GL

DNV GL has assessed the market’s new offshore turbine in development and awarded Siemens Wind Power with the Prototype Certificate for its 8 megawatt (MW) offshore wind turbine SWT-8.0-154. The prototype certification confirms all relevant safety features on the turbine according to the Danish Executive Order BEK 73:2013 and IEC 61400-22, allowing installation of the prototype to demonstrate its performance. By erecting the turbine at the test centre for wind turbines in Østerild…

Algerian Troubles Impact LNG Liftings for France

File Image: A typical LNG carrier underway at sea (CREDIT: QGTC)

French gas grid operator GRTgaz said a force majeure in Algeria and tensions in the global gas market were reducing deliveries of liquefied natural gas (LNG) to southern France, just as winter demand for heating intensifies. Deliveries to the Fos-sur-Mer terminal were at about 40 gigawatt-hour (GWh) per day, compared with the 70 GWh per day needed to meet increased winter demand for power and heating, GRTgaz chief executive Thierry Trouve told journalists on Tuesday. The low deliveries…

PDVSA Operations Impacted by Crude Spill

Shipping operations at one of three docks of Venezuela's main crude exporting port were halted after an oil spill occurred while loading a vessel bound for India, union and marine sources told Reuters on Tuesday.   The spill, which happened over the weekend and whose size has not yet been disclosed, also affected other vessels close to the very large crude carrier (VLCC) Nave Quasar, chartered by India's Reliance Industries, the sources added.   Venezuelan state oil company PDVSA, which operates the terminal, did not immediately respond to a request for comment.   Reporting by Marianna Parraga

Oil Steady; Record High Russian Output Forecast Offsets Weak Dollar

Oil prices were little changed on Tuesday as forecasts for record production out of Russia in 2017 helped offset earlier gains related to a decline in the U.S. dollar and Saudi Arabia saying it would adhere to OPEC's commitment to cut output. Brent futures were up 5 cents, or 0.1 percent, at $55.91 a barrel by 11:26 a.m. EST (1626 GMT), while U.S. West Texas Intermediate crude rose 32 cents, or 0.6 percent, to $52.69. Both contracts were up by $1 earlier Tuesday. Earlier gains were capped by forecasts for rising U.S. and Russian production and scepticism that the Organization of the Petroleum Exporting Countries (OPEC) as a whole would comply with its commitment to reduce supplies.

Pertamina Looks to U.S. for LPG

Indonesia expected to import 70 pct of LPG in 2017. Country seen shipping in around 5 mln T of LPG this year. Indonesian state energy company Pertamina expects to import liquefied petroleum gas from the United States to meet growing demand, with U.S shipments to Asia set to climb following transport developments like the extension of the Panama Canal. That comes as Southeast Asia's largest economy is expected to look overseas to meet at least 70 percent of its demand for LPG in 2017, said Daniel Purba, senior vice president of Pertamina's integrated supply chain unit. "In 2017, as we know with the commencement of operation of canals that can accommodate larger vessels…

Subsea 7 offer for Seaway Heavy Lifting

Courtesy Subsea 7 S.A.

Subsea 7 S.A. announced that one of its wholly owned subsidiaries has made an offer to acquire the 50% shareholding in Seaway Heavy Lifting Holding Limited currently owned by K&S Baltic Offshore (Cyprus) Limited. The terms of the offer are binding on Subsea 7 until 1 July 2017. During this period the Works Council representing the employees of Seaway Heavy Lifting in the Netherlands will be consulted in compliance with Dutch law. Jean Cahuzac, CEO, said: "Subsea 7's strong market…

Subsea 7 Loses Petrobras Contract

Photo: Subsea 7

Subsea 7 has received an early termination of the day-rate contract for its pipelay support vessel (PLSV) Seven Mar from the state-owned Brazilian firm Petrobras. The termination is effective January 16, 2017, the company informed. The contract was due to expire next year. The Brazilian government has reportedly withdrawn the operating license for the vessel to prioritise ships within its own fleet. As a result of early termination the group backlog has diminished by approximately $106 million, Subsea 7 said on Monday. Seven Mar is 145 meters in length and has a beam of 27 meters.

DOF Wins Petrobras Contract

Photo: DOF ASA

Norwegian offshore service company DOF has been awarded a charter contract by Brazilian energy major Petrobras for its pipe-laying support vessel Skandi Vitória. The contract will commence in January for 532 days. The vessel is owned through a joint venture with Technip. Skandi Vitoria is the first pipe-lay vessel built in Brazil, equipped with vertical and horizontal pipe-lay systems, a 250 mt crane and 2 ROVs. The vessel is capable of operating in water depths up to 3,000 meters.

Liu Joins Senior Shipping Figures at Nor-Shipping

Peggy Liu (Photo: Nor-Shipping)

Globally renowned green energy champion Peggy Liu has been announced as the latest speaker for Nor-Shipping 2017. Liu, the Chairperson of Joint US-CHINA Collaboration on Clean Energy (JUCCCE), is set to join a growing list of key shipping figures at the leading global maritime event week. Together they will deliver fresh perspectives on the challenges, opportunities and future evolution of the industry worldwide. Liu is a well-known figure throughout the business, political and media landscapes.

Bahri's Q4 Profit Dips 42 pct

File Image: A Bahri managed VLCC (Credit: Bahri)

Bahri, the exclusive oil shipper for Saudi Aramco made a net profit of 327.8 million riyals ($87.4 million) for the three months to Dec. 31, it said on Monday. That compares with 566.4 million riyals in the fourth quarter of 2015. Alistithmar Capital and Albilad Capital had forecast the company would make a quarterly net profit of 454.60 million riyals and 431.00 million riyals respectively. Saudi companies issue brief earnings statements early in the reporting period before publishing detailed results later.

Cyberhawk shortlisted for Offshore Achievement Awards

Cyberhawk team operating a drone offshore Photo Cyberhawk

Cyberhawk Innovations is delighted to be recognised as a finalist at the 2017 Offshore Achievement Awards for the categories Safety Innovation and Export Achievement. The world leader in aerial inspection and survey using Unmanned Aerial Vehicles (UAV), otherwise known as drones, continues to pioneer the use of this technology to conduct close up inspections of live and difficult to reach structures. The company has been named as a finalist for the Safety Innovation award as a…

Gener8 Adds New ECO VLCC

courtesy Gener8 Maritime

Gener8 Maritime announced that it took delivery of the "ECO" VLCC the Gener8 Hector on January 6, 2017 from Hanjin Heavy Industries and Construction Philippines. The Gener8 Hector represents the nineteenth of 21 "ECO" VLCCs expected to be delivered into Gener8 Maritime's fleet.  Upon delivery, the Gener8 Hector entered Navig8 Group's VL8 Pool.  

Royal IHC launches DEME’s LNG-powered TSHD

Launch ceremony SCHELDT RIVER Photo Royal IHC

The launch ceremony of DEME’s 7,950m3 dual fuel trailing suction hopper dredger (TSHD) –SCHELDT RIVER – took place on 14 January at Royal IHC's shipyard in Krimpen aan den IJssel, The Netherlands. “After the successful launch of the world’s first LNG-powered hopper MINERVA on 3 December, I am delighted to see SCHELDT RIVER – the second IHC-built TSHD capable of operating on LNG – nearing completion,” says IHC's Executive Director Shipbuilding, Arjan Klijnsoon. As a result of IHC’s continuous research effort on fuel saving and analysis of operational profiles…

Royal IHC wins multiple contracts for Dredgers

Easydredge 2700 DRAGADOS ARGENTINOS DASA S.A. Photo Royal IHC

In the last two months of 2016, IHC saw a substantial increase in the sale of its vessels, equipment and engineering packages. Almost half of the total order intake over 2016 was secured in this period. “We see market recovery in the dredging and renewables industry, and are positive that this will continue in 2017,” says IHC CEO Dave Vander Heyde. One of the highlights of the year end includes the sale of a trailing suction hopper dredger (TSHD) Easydredge 2700 from stock. Supported by the Argentinean bank BICE, the vessel was sold to Dragados Argentinos DASA S.A.

Prysmian: CNP-1 Subsea Link Launched in Philippines

Contract was awarded to Prysmian by the grid operating company NGCP Photo Prysmian Group

Prysmian Group, world leader in the energy and telecom cable systems industry, announces the successful commissioning of the submarine power cable link to connect Negros and Panay islands in the Philippines. This is the first stage of the project CNP-1 (Cebu-Negros-Panay phase 1), awarded to Prysmian Group by the Filipino grid operating company NGCP (National Grid Corporation of the Philippines). This project is part of a larger development plan provided by NGCP, to strengthen the Country’s power transmission network.

Chevron Hires Two New Offshore Vessel

Photo: Bram Offshore Todos os direitos reservados

The US company Chevron has entered into a deal with Brazil's Bram Offshore to hire two offshore support vessels: Campos Contender and Elizabeth C. The vessel owner is a Brazilian subsidiary of Edison Chouest, a U.S. based offshore vessel provider. The Campos Contender was built in 2009. It is 69m long and 17m deep. The Elizabeth C was completed in 2008 and has the same dimensions as Contender Fields. While the vessels might be similar, the contracts are different. The Campos Conteder will stay with Chevron for one year, while Elizabeth C has won a shorter, 8-month, term.

Asia Tankers-VLCC Rates to Hold Steady

File Image: A typical VLCC underway (CREDIT AdobeStock)

Unipec charters 20 VLCCs for West Africa, MidEast cargoes; China's oil demand to climb 3.4 pct this year - CNPC. Freight rates for very large crude carriers (VLCCs) are expected to remain stable next week as buoyant chartering activity from the Middle East is offset by the large number of supertankers available for charter, ship brokers said. "We're going to see rates holding at current levels," a European supertanker broker said on Friday. "Saudi Arabian cargoes for February loading should be out on Monday.

Fugro Bags Australian Subsea Contract

Fugro has been awarded a contract from INPEX Operations Australia Pty Ltd (INPEX) for subsea services to be executed across the Ichthys facilities in the Timor Sea, located approximately 220 kilometres from the coast of Western Australia. INPEX is Japan’s largest oil and gas exploration and production company. The five year contract encompasses field operations support, inspection, repair and maintenance (IRM) services and will run for five years, with options to extend. Fugro will provide all services through its office in Perth. The work will be performed under Fugro's QHSE system, which is in accordance with industry leading QHSE and operational standards.

Finalists for 2017 Offshore Achievement Awards Announced

Last year’s OAA winners Photo Society of Petroleum Engineers

Finalists for the 2017 Offshore Achievement Awards, sponsored by TAQA, have been announced today {Friday 13 January}. Hosted by the Society of Petroleum Engineers (SPE) Aberdeen Section, the annual awards recognise some of the industry’s most innovative technology developments as well as talented individuals and exceptional large and small company performance. This year’s shortlist comprises a wide cross-section of the offshore sector, with companies large and small, spanning a variety of sub-sectors, represented.

Boskalis Bags Netherlands Projects of EUR 200 mi

Courtesy Royal Boskalis

Royal Boskalis Westminster N.V. (Boskalis) has over the last couple of weeks acquired a number of medium sized and various smaller projects in the Netherlands with a combined contract value of more than EUR 200 million. Today, Boskalis was awarded the project for the expansion and doubling of the N62 road (Tractaatweg) in the province Zeeland. Preparations are due to start in spring 2017 and the project will be completed in the spring of 2019. The project carries a contract value of approximately EUR 30 million.

What's next from Maritime Reporter TV?

Jim McCaul, founder of International Maritime Associates, and Greg Trauthwein, Editor, Maritime Reporter & Engineering News (Photo: Eric Haun)

Jim McCaul, founder of International Maritime Associates, sat with Maritime Reporter TV's Greg Trauthwein in Washington, D.C. to discuss key market trends affecting the global energy and maritime sectors. With inimitable insight, McCaul offers a candid look into the state of U.S. shipbuilding, the condition of the floating production industry, potential for an energy sector rebound, and the incoming Trump administration. In the first segment, McCaul identifies signs of hope within the global energy markets and provides an update on the state of floating production.


Maritime Reporter Magazine Cover Jan 2017 - The Ship Repair & Conversion Edition

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