Government May News

Dutch energy company VTTI said on Monday it plans to build a new floating liquefied natural gas (LNG) terminal in the Netherlands with capacity to import 5 billion cubic meters of gas annually. On Friday the Dutch government said it was in talks with two different groups over new LNG terminals to increase Dutch import capacity by 5-8 billion cubic meters (bcm) annually as it seeks to ensure the country's energy security. Rotterdam-based VTTI said in a statement it was "striving"…

Mauritian volunteers fished dead eels from oily waters on Tuesday as they tried to clean up damage to the Indian Ocean island's most pristine beaches after a Japanese bulk carrier leaked an estimated 1,000 tonnes of oil.The ship, MV Wakashio, owned by Nagashiki Shipping and operated by Mitsui OSK Lines Ltd, struck a coral reef on Mauritius' southeast coast on July 25 and began leaking oil last week, raising fears of a major ecological crisis.Activists told Reuters that dead eels were floating in the water and dead starfish were marked by the sticky black liquid.

China is set to release its first-ever quotas to export very low sulphur fuel oil (VLSFO) with total volumes of 10 million tonnes for this year, six industry officials with knowledge of the matter said on Tuesday.The quotas, which came in the wake of Beijing’s policy in January to offer tax sweeteners to boost local production of the fuel, paves the way for Chinese refiners to almost fully cover the demand from its coastal bonded marine fuel market of 12-14 million tonnes annually.The quotas will be issued to four state-run firms - Sinopec Group, CNPC, China National Offshore Oil Company (CNOO

A cruise ship linked to a third of Australia’s coronavirus deaths has left the country after a month docked in local waters, the authorities said on Friday, as an emergency cabinet meeting was expected to ease some social distancing measures.The Ruby Princess, owned by Carnival Corp, has become a flashpoint of public anger after being allowed to unload thousands of passengers in Sydney without health checks on March 19.Hundreds of its passengers later tested positive to COVID-19, about 10% of the country’s roughly 6,600 infections, and a third of the country’s 77 coronavirus deaths have been traced to the ship.Separate criminal, coronial…

A cruise industry trade association has hit back at reports speculating that the U.S. government may move to discourage some travelers from taking cruises as part of a broader Trump administration effort to limit the spread of coronavirus."Any action to restrict cruising is unwarranted, and at odds with the World Health Organization which 'continues to advise against the application of travel or trade restrictions to countries experiencing COVID-19 outbreaks'," the Cruise Lines International Association (CLIA) said in a statement on Friday.U.S.

The Strait of Hormuz, the narrow shipping lane between Iran and Oman named after the fabulously wealthy ancient kingdom of Ormus, has fascinated oil traders since the Iranian revolution in 1979. Iran has periodically threatened to close the strait to enemy shipping, while the United States and its allies have pledged to keep it open and maintain freedom of navigation, by force if necessary.The strait has become a symbolic flashpoint in the region-wide confrontation and indirect…

Mixed Government Support for U.S. Shipbuilding.It has been a busy start to the 116th Congress for the U.S. shipbuilding industry, with three congressional hearings in early March focused on the industry’s role as a critical component of the U.S. national security industrial base. In addition, the Consolidated Appropriations Act, 2019, which was signed into law on February 15, contained mixed news for shipbuilding programs. Through the congressional hearings and enacted legislation, two opposing themes have emerged.

The UK Chamber of Shipping said that the UK Government’s plans to charter in ships to bring in supplies in an event of a No-Deal Brexit would not help.Responding to reports that Government may charter ships in the event of a No-Deal Brexit, UK Chamber of Shipping CEO Bob Sanguinetti said: “It is not clear how Government chartering ships would really help. I don’t see how Government itself can move goods faster or more efficiently than the private sector, particularly as those goods will still need to go through the same customs procedures in ports – which is where the real problem would be."“We must not sensationalise. We are a flexible industry and the shipping market can adapt to meet the needs of our national economy just as it always has done…

U.K. based marine services contractor Inchcape Shipping Services Holdings Limited and several of its subsidiaries have agreed to pay $20 million to resolve allegations that they violated the False Claims Act by knowingly overbilling the U.S. Navy under contracts for ship husbanding services, the U.S. Department of Justice announced.Inchcape provided goods and services, including food and other subsistence items, waste removal, telephone services, ship-to-shore transportation, force protection services and local transportation…

Egypt seeking to defer up to 25 LNG cargoes this year-trade; talks with trade houses and producers ongoing. Egypt is holding talks with its liquefied natural gas (LNG) suppliers to defer contracted shipments this year and aims to cut back on purchases in 2018, as surging domestic gas production squeezes out demand for costly foreign imports. Cairo's desire for gas self-sufficiency by the end of 2018 bodes ill for traders having to reshuffle LNG out of the country amid concern over the impact on global gas prices if replacement markets for the world's eighth-biggest importer of the super-cooled fuel are not found fast enough. State-run importer EGAS aims to defer dozens of liquefied natural gas (LNG) cargoes due this year, analyst, trade and industry sources say.

Brazil may allow companies besides Petrobras to bid for the right to produce extra oil from areas it sold to the state-led oil company in 2010, the head of the exploration and production policy at the energy ministry, Jose Botelho, said on Wednesday.   Botelho also said the government may allow Petroleo Brasileiro SA, as Petrobras is formally known, to pay with oil for adjustments in the price of the maximum 5 billion barrels of oil and equivalent natural gas it is allowed to produce in the areas.     (Reporting by Marta Nogueira, writing by Jeb Blount; Editing by Daniel Flynn)

Whether driven by treasure hunting or environmental protection, the days of forgotten wrecks, even at great depths, is past. It seems like every month we see reports of long-lost maritime wrecks being discovered on the ocean bottom and treasures being salvaged from great depths. We also hear regularly of oil being recovered from sunken wrecks. There is now no practical limit to the ability to recover objects from the sea floor, regardless of depth, currents, weather, or other obstacles. The only existing obstacle seems to be financing - and costs are decreasing regularly.

Japanese buyers of Iranian crude will have to keep using special sovereign shipping insurance to import oil for the foreseeable future, despite the lifting of sanctions against Tehran, industry and government sources said on Monday. Shippers face uncertainty over whether they can get coverage from U.S. insurers after sanctions were lifted and it means the Japanese government may have to get parliamentary approval to extend the scheme beyond March. Tokyo stepped in to help its oil importers after Western sanctions imposed over Tehran's disputed nuclear programme curbed the ability of private insurers to provide tanker cover. The U.S.

The government has announced  that it has joined a lawsuit alleging that Inchcape Shipping Services Holdings Limited and certain of its subsidiaries (collectively, Inchcape) violated the False Claims Act by knowingly overbilling the U.S. Navy for ship husbanding services from years 2005 to 2014. Inchcape is a marine services contractor headquartered in the United Kingdom. As a ship husbanding services provider, Inchcape arranged for the provision of goods and services to Navy ships at ports in several regions throughout the world, including southwest Asia, Africa, Panama, North America, South America and Mexico. Inchcape’s services typically included the provision of food and other subsistence items…

Australia’s newest military capability, the Amphibious Ready Element, has demonstrated its capacity in waters off the North Queensland coast during the Sea Series of exercises. Conducted by the Brisbane-based Deployable Joint Force Headquarters, under command of Major General Stuart Smith, the Sea Series of exercises enabled the amphibious force to achieve an interim operational capability. The Sea Series of exercises involved about 1100 embarked forces and crew on board HMAS Canberra with medium lift helicopters, landing craft and small boats, trucks, troop carriers and other vehicles. The embarked force included major elements from the 2nd Battalion, the Royal Australian Regiment, and 5th Aviation Regiment supported by HMAS Stuart, Air Force assets as well as other government agencies.

The Australian Defence Force is testing its newest amphibious capability ahead of the upcoming cyclone season. Exercise SEA RAIDER in Far North Queensland involves some 1400 troops embarked in HMAS Canberra with medium lift helicopters, landing craft and small boats, trucks, troop carriers and other vehicles. Conducted by the Brisbane based Deployable Joint Force Headquarters, under command of Major General Stuart Smith, Exercise SEA RAIDER is supported by HMAS Stuart, Air Force assets and Commando forces as well as other Government agencies. The ADF works closely with the Department of Foreign Affairs and Trade as the lead agency for Australian Government responses to overseas emergencies.

Should Russia occupy more Ukrainian soil and sustain the already tense relations with the West, the U.S. government may decide to release crude from its Strategic Petroleum Reserve (SPR) – perhaps 500,000-700,000 barrels per day as suggested by the Financial Times. Such a move would undoubtedly hurt Moscow economically – not to mention several of the U.S.’ allies (notably Saudi Arabia) – as crude oil prices would probably drop below the $100 per barrel mark. But how would this affect the U.S.’ own oil production, especially the capital-heavy Gulf of Mexico?

Drilling and deal activity on the UK Continental Shelf (UKCS) will remain at ‘a steady low’ for at least the next year, suggests a new report from business advisory firm Deloitte. Poor weather and high costs have already had an impact on the amount of exploration and appraisal (E&A) work conducted by operators in the region during the first quarter. The report, which details activity across North West Europe over the first three months of 2014 and was compiled by Deloitte’s Petroleum Services Group (PSG), found a total of 12 E&A wells were drilled on the UK Continental Shelf (UKCS). Although that represents an increase of five wells compared with Q4 2013, it is a decrease of one well on the same period last year.

After an uneven couple of years punctuated by struggling economic factors worldwide, maturing markets and some highly publicized accidents and illnesses, the cruise industry is hoping to find a little “double happiness” from the rapidly growing Chinese market – enhanced profits and renewed market growth for both operators and builders. For its part, the Chinese government is betting on a triple payout:  it hopes to serve a growing middle class (estimated at a potential 300 million market) and its desire for cruising vacations…

India's Ministry of Shipping has chalked out a plan to raise a trillion India Rupees to develop ports, build ships and improve inland waterways, says a report in the Business Standard. The money will help the shipping ministry, which floated the proposal, help finance port and maritime-related infrastructure projects. The amount would be raised in the dollar equivalent at an interest of three per cent. For, the government may set up a dedicated company by pooling the future income of the 12 ports it directly owns. The company set up specifically for this purpose—a special purpose vehicle or SPV—will leverage the pooled income of the dollar receivables of the 12 ports to borrow from overseas insurance and pension funds which seek good returns for their capital.

Reuters - Bulgaria, heavily dependant on Russia for gas and oil, will estimate its own reserves and seek alternatives to cope with any worsening of the Ukrainian crisis, it said on Tuesday. "Several key threats can be outlined that can pose risks to Bulgarian security. They are mainly economic," Deputy Prime Minister Tsvetin Yovchev said after a meeting of the government's security council over Ukraine. It meets over 85 percent of its gas needs with imports from Russia's Gazprom through only one route that passes Ukraine. Its only oil refinery, run by Russia's LUKOIL, that supplies over 60 percent of the its refined fuel in the country, gets its crude through an Ukrainian Black Sea port.

Is Thailand about to realize its long-deferred dream of acquiring submarines? Thailand’s Military backed Government may look to procure two or three submarines as part of an increased 2016 defense budget, finally giving the country a capability it has lacked for more than sixty years, The Bangkok Post reported Friday. According to a source from Thailand’s defense ministry, the Royal Thai Navy (RTN) is expected to propose the procurement of two to three submarines in the 2016 budget, with the country’s Defense Minister Retired Gen Prawit Wongsuwon already backing the plan in principle pending cost considerations. The navy has been considering submarines from various sources, but the South Korean Chang Bogo Class submarine is reportedly the least expensive at around $330 million each.

Jonas Bjork, commercial manager Maersk Drilling Denmark, a subsidiary of Maersk Group, says that Israel is in his radar in the near future and hinted that his company targets Leviathan contracts, reports Globes. Bjork added that the Israeli government may make things difficult, but it is also willing to listen and to learn. His impression is that the regulation in Israel in the natural gas sector is difficult, but the government is prepared to study the energy field, is open to change, and is flexible. According to Bjork, he came to Israel to investigate whether there is a market for drilling here. He knows that the Leviathan reservoir will need rigs for both drilling and production of gas and oil, he pointed out. The expectation is that 8 wells will be drilled at Leviathan.