Marine Link
Thursday, February 23, 2017
Oil

Saudi Aramco Selects Lead Underwriters for $100 Bln IPO

Oil giant Saudi Aramco has selected JPMorgan Chase & Co, Morgan Stanley, and HSBC Holdings Plc as lead underwriters on the firm's planned initial public share offering, the Wall Street Journal reported on Tuesday, citing people familiar with the matter. Saudi Arabian Oil Co, known as Saudi Aramco, was not immediately available for comment. Saudi authorities are aiming to list up to 5 percent of the world's largest oil producer on both the Saudi stock exchange in Riyadh, the Tadawul, and one or more international markets in an IPO that could raise $100 billion. The listing is the centerpiece of a Saudi Arabian government plan to transform the kingdom by enticing investment and diversifying the economy away from reliance on oil.

Tanker Market Facing Test

Graph: Clarksons Research

The tanker market has certainly had some tumultuous times of late, points out a report by Clarksons Research. Crude tanker earnings picked up in 2014, averaging nearly $27,000/day, and surged to an annual average of around $50,000/day in 2015. Things started to cool off into 2016, but in the full year average earnings were still fairly healthy at just under $30,000/day. They say two’s company; and these positive conditions did seem to have been brought about by the fortuitous lining up of two key factors.

W. Africa Crude-Asian Tenders, Pending Export Plans Slow Trade

File Image (CREDIT: AdobeStock)

Physical trading in West Africa was muted as the market awaited tender results and the April-loading Angolan crude oil export plan. * The benchmark oil prices on which West Africa crude oil trades retraced some of Monday's losses as confidence in OPEC's cut plan rose. * Nigerian oil minister Emmanuel Ibe Kachikwu said the country lost up to $100 billion in oil revenues last year due to militant attacks. The vice president travelled to the oil-producing Delta this week to further talks with militants.

Aframaxes Taken for Short-term Time Charters in Asia

File photo: Tsuneishi Shipbuilding Company

The Asian Aframax market is currently stable but seems to be facing a more positive outlook on the back of short-term time charters as well as an increase in third decade cargoes. Rates for an Indonesia/Japan run basis 80 kt are hovering around w100 to w102.5, while rates for the AG/East route basis 80 kt stand at w115. Reflecting firmer owner sentiment, TD14 inched up steadily w-o-w to w100.78 which translates into daily earnings of around $8,700/day. At least three Aframaxes…

Singapore Fuel Oil Trading Heats Up

Singapore fuel oil trading volumes have soared after the 380-cst front-month time spreads widened by around $1 per tonne from the previous day's close, in what could develop into an aggressive trade strategy that occasionally rattles this market. The 380-cst March/April time spreads on the Intercontinental Exchange (ICE) saw about 700,000 tonnes in contracts trade after physical trading in the S&P Global Platts Market-on-Close (MOC) price assessments concluded at 0830 GMT on Tuesday. The flurry took the spreads to about $1.70 a tonne in post-European trade by 0400 GMT on Wednesday, from around plus 70 cents a tonne previously. Traders…

Iraq Plans to Acquire "Large Fleet" of Oil Tankers

File Image (CREDIT: AdobeStock)

Iraq plans to acquire a "large fleet" of oil tankers to transport the OPEC nation's crude to global markets, Oil Minister Jabar al-Luaibi said in a statement on Friday. The nation's tanker fleet was largely destroyed during the U.S.-led offensive to dislodge Iraq from Kuwait in 1991, according to the state-run Iraqi Oil Tankers Company's website. The company owned as many as 24 tankers in the 1980s. "The ministry is keen to restructure the company and develop its operations by building and buying a large fleet of tankers," Luaibi told the company's management, according to the statement.

US Drillers Continue to Add Oil Rigs

U.S. energy companies added oil rigs for a 14th week in the last 15, extending a nine-month recovery as drillers take advantage of crude prices that have held mostly over $50 a barrel since OPEC agreed to cut supplies in late November. Drillers added eight oil rigs in the week to Feb. 10, bringing the total count up to 591, the most since October 2015, energy services firm Baker Hughes Inc said on Friday. During the same week a year ago, there were 439 active oil rigs. Since crude prices first topped $50 a barrel in May after recovering from 13-year lows last February, drillers have added a total of 275 oil rigs in 33 of the past 37 weeks, the biggest recovery in rigs since a global oil glut crushed the market over two years starting in mid 2014.

Statoil Awards ERRV Contracts

Stril Poseidon Photo Statoil

Statoil awards Simon Møkster Shipping AS contracts for three emergency response and rescue vessels (ERRV), and Havila Shipping ASA for one ERRV. The contacts have a total value, included options, of NOK 2.7 billion. The vessels will be part of Statoil’s area-wide emergency response on the Norwegian continental shelf (NCS). The emergency response vessels play an important role in addressing government authorities’ and the company’s own requirements for rescue, hospital, fire-fighting, emergency towing and oil spill preparedness.

Top 10 Maritime Nations: Ranked by Value

(Image: VesselsValue.com)

The March 2017 edition of Maritime Reporter & Engineering News focuses on SINGAPORE, as this maritime powerhouse struggles to maintain balance and influence through the offshore oil and gas downturn. Looking at the "Top 10 Nations" ranked by value from VesselsValue.com, Singapore ranks #5 with 2,662 vessels, comprising 64.03 million GT and a $41.7 billion valuation, just behind the United States at #4 (2,399 vessels, 55.92m GT, $46.5 billion valuation).    

Venezuela Delays Crude Shipments amid Operational Mishaps, Low Output

Venezuelan state oil company PDVSA has delayed and canceled crude deliveries to commercial partners in recent months, according to documents seen by Reuters, a further sign of the steady production decline of the country's top export. From October through January, PDVSA canceled or delayed delivery of almost 7 million barrels of crude due to cargoes being rescheduled or skipped, often because it did not have enough oil available, according to internal company documents seen by Reuters. Most pending cargoes were supposed to be delivered to regular buyers including U.S. Phillips 66 and Thai TIPCO Asphalt. Other shipments were canceled even before being assigned to specific customers.

MES Delivers 66,000 DWT Bulk Carrier

22nd Ship of MES’s Eco-Ship neo66BC Photo MES

Mitsui Engineering & Shipbuilding Co., Ltd. (MES) completed and delivered a 60,000 dwt type bulk carrier M.V. "INDIGO BREEZE" (MES Hull No. 1926) at its Tamano Works on 22nd February, 2017 to ARIST MARITIME S.A., the Republic of Panama. This is the 22nd ship of our “neo60BC”, the third Eco-Ship line up of our “neo series”. Service Speed  abt. * The vessel has four (4) cranes and five (5) cargo holds, and keeps the superior usability of “Mitsui 56”. * The vessel achieves over 60,000 deadweight with Panamax beam and keeps our neo56’s compatibility for ports and trade routes.

Singapore Wants New Gas Projects

Arve Johan Kalleklev, regional manager, DNV GL – Oil & Gas South East Asia & Australia. Photo: DNV GL

New research by DNV GL, the technical advisor to the oil and gas industry, has revealed that more oil and gas professionals in Singapore (46%) than globally (31%) are looking for new gas projects. Nearly nine out of ten respondents (87%) believe that gas will become an increasingly important component in the global energy mix in the next ten years – ten percentage points higher than the global average. Short-term agility, long-term resilience is DNV GL’s seventh annual benchmark study on the outlook for the oil and gas industry…

Australian Energy Firms to Rebalance their Portfolios: DNV GL

Elisabeth Tørstad, CEO, DNV GL – Oil & Gas and Richard Palmer, Country Manager, DNV GL – Oil & Gas Australia. Photo: DNV GL

New research by DNV GL, the technical advisor to the oil and gas industry, shows oil and gas companies in Australia are seeking to rebalance their business portfolios and reorganize for a new era. In a period of drawn-out recovery, 45% of senior oil and gas professionals surveyed expect their business to diversify into, or invest more in, opportunities outside of oil and gas. Still, 85% believe gas will become an increasingly important component of the global energy mix over the next 10 years.

Oil Exports From Southern Iraq Down in January

Crude oil exports from southern Iraq in January fell to 3.275 million barrels per day (bpd) from 3.51 million bpd in December, as the country complied with an agreement with other producers to reduce output, two oil executives said on Tuesday. December's exports from the southern region, where Iraq produces most of its oil, set a record high. Iraq is OPEC's second-largest crude producer after Saudi Arabia. The group agreed in late November to cut production in order to support sagging oil prices. (Reporting by Aref Mohammed; writing by Maher Chmaytelli)

Middle East Gulf Exports Soar in January 2017

Middle East Gulf region crude oil exports by berth month and departure month from February 2016 to January 2017. (Image: Genscape)

During January – a month when all eyes were on oil production cuts – exports leaving the Middle East Gulf (MEG) region hit the highest level in at least two years, according to Genscape. At the end of November 2016, the Organization of the Petroleum Exporting Countries (OPEC) addressed the perceived global oversupply of oil and consequent low prices. OPEC members agreed that all countries, except Iran, would cut total production by 1.2 million barrels per day (bpd), starting on January 1.

Malaysian Oil Sector Rebalances Portfolios

Hernando Caceres, Country Manager Malaysia, DNV GL – Oil & Gas. Photo: DNV GL

New research by DNV GL, the technical advisor to the oil and gas industry, has revealed that confidence in growth in the Malaysian oil and gas sector has tumbled since 2014, from 96% to 21%, with tough, short-term, cost-cutting efforts expected to increase in 2017. Diversification will be a hallmark of 2017, with 49% of those surveyed looking to increase investment in, or diversify into, areas beyond oil and gas. Thirty-seven per cent of senior oil and gas professionals in Malaysia are actively looking for new gas projects as a result of falling oil prices, compared to 31% globally.

The Offshore Markets: 2016 In Review

Expectations at the start of the year that 2016 would be a tough one for the oil industry, and in particular for offshore, were on the whole fulfilled, says Clarksons Research report. Overall upstream E&P spending globally fell for the second successive year, and was down by in the region of 27% year-on-year in 2016. Cost-cutting has been a key focus, whether that be through pressure on the supply chain, M&A activity, job cuts or other means. Overall upstream E&P spending globally fell for the second successive year, and was down by in the region of 27% year-on-year in 2016. Cost-cutting has been a key focus, whether that be through pressure on the supply chain, M&A activity, job cuts or other means.

Pirates Kidnap Cargo Ship Crew Nigerian Waters

Pirates have kidnapped seven Russians and one Ukrainian after attacking the cargo ship the BBC Caribbean off the coast of Nigeria, the Russian embassy said on its official Twitter account. The embassy has asked Nigerian authorities to assist in locating the abducted people, it said late on Tuesday. The Nigerian navy and police were not immediately available for comment. The general cargo vessel BBC Caribbean is managed by Briese Schiffahrts. "The armed pirates approached (the vessel) in a boat, captured the crew and left on the boat at the direction of the Nigerian shores," said Pavel Fedulov, the director of a Briese Schiffahrts subsidiary in St Petersburg, according to Russian news organisation RBC. No firearms were used during the attack, he was quoted as saying.

Hyundai Global Services Enters into Eco-friendly Ship Services Business with KSS Line

Gas Star, 84,000cbm LPG carrier of KSS Line. The ship is going to be the first among KSS Line’s fleet to be retrofitted with Exhaust Gas Cleaning System. Photo: Hyundai Global Services

Hyundai Global Services (HGS), Hyundai Heavy Industries’ (HHI) newly spun-off company specializing in providing total marine services announced today it signed an MOU with KSS Line, a Korean shipping company, for entering into eco-friendly ship business. Under the MOU, two companies join forces to retrofit the medium-sized LPG carriers owned by KSS Line with Exhaust Gas Cleaning System. Ships equipped with the cleaning system will be able to meet the IMO’s sulfur emission cap of 0.5% even with bunker-c oil, cheaper than marine gas oil, and thus will significantly be able to lower fuel costs.

Chennai Oil Spill: DG Shipping Institutes Inquiry

Pon Radhakrishnan. Photo: Official Page in Twitter

Days after the unexpected cargo ships collision outside the Kamarajar Port in Chennai (Tamil Nadu State, India), the Directorate General (DG) of Shipping has instituted an inquiry regarding the same. Two vessels namely, M.T. BW Maple carrying LPG and M.T. Dawn Kanchipuram carrying Petrol and lube oil, collided while crossing each other at 03.45AM on January 28 outside the Kamrajar harbour. The Shipping Minister Shipping Pon. Radhakrishnan in Chennai today to take stock of Clean Up Operations, says a statement from the Press Information Bureau, Government of India.

Petrobras:P-66 leaves shipyard for Lula field

On Saturday (February 4), the floating production, storage and offloading vessel (FPSO) P-66 left the Brasfels shipyard in Angra dos Reis, Rio de Janeiro. It is now heading to the Lula Sul module in the Lula field, Santos Basin pre-salt, where it is expected to arrive in the next few days. The production system will come online after the vessel has been moored and the first production well has been connected. P-66 is the Lula Consortium’s first FPSO to be deployed in the Santos Basin pre-salt. It was assembled at the Brasfels shipyard in Angra dos Reis, where the equipment and systems were also tested. The FPSO will separate the oil from the gas and water during the production process, storing it in tanks, and finally transferring it into oil tankers, which will then transport it.

India Impounds Ships, Detains Crew Over Oil Spill

Port authorities in Chennai have impounded a BW LPG vessel and a local ship carrying heavy fuel oil, and detained their crews, a spokesman for the port said on Friday, after their collision last week caused an oil spill affecting marine life and local fishing. About 20 tonnes of heavy fuel oil leaked and a complete clean-up is expected to take eight to 10 days, according to an Indian coast guard spokesman. BW Maple, with a total capacity of 82,000 cubic metres of liquefied petroleum gas, was half full when it collided near Chennai with the Indian ship Dawn Kanchipuram on Saturday. The port spokesman said the sludge - a mixture of oil, water and sand - has travelled over 18 miles, polluting the Marina Beach, one of the world's longest.

ABB’s OCTOPUS for Greenland Heavylift Newbuilds

GPO Under Construction (Photo: ABB)

ABB’s OCTOPUS marine software was chosen for four new semi-submersible heavy lift vessels currently under construction at CSBC Corporation in Taiwan, with the first expected to go into service in 2017. The ships, owned by Greenland Heavylift Holdings, will transport gigantic cargoes such as oil rigs and jack-up rigs, with OCTOPUS providing a tailored route for each voyage that is updated with fresh weather data throughout the transportation. OCTOPUS is a vessel management software platform enabling ship owners to choose the modules most relevant to their operations.

Maritime Reporter Magazine Cover Feb 2017 - The Cruise Industry Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

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