Marine Link
Saturday, October 21, 2017

Arabian Gulf

Despite Rising US Production, Saudi Crude Still Flows In

Saudi crude & the US market: Chart courtesy of Poten & Partners

Reported spot market activity from the Arabian Gulf remains on an upward trend since 2010 in spite of rising US crude production, reports Poten & Partners’ in their latest ‘Tanker Opinions’. Over the past few years US domestic crude oil production has supplanted foreign crude oil imports. To the extent that they possibly can, domestic refiners have shifted to local grades that have trended at an often significant price discount. Interestingly, however, fixture activity on the Arabian Gulf to US Gulf trade route remains robust. In efforts to remain competitive, Saudi Arabia has priced US-bound crude oil at a discount compared to prices posted to Asian customers. The chart (pictured) represents total reported spot fixture volume from the Arabian Gulf to the US Gulf. Citing information from EIA, Poten reports that Saudi Arabian exports to the US have followed a general upward trend since 2010. The drop in imports during the February to March time period appears to coincide with the refinery turnaround window in the US Gulf; normally between February and March. Crude inventory levels remain high in the US Gulf which has left the region short on spare storage. It remains to be seen if exports from Saudi Arabia continue to follow this trend, but for the time being, demand seems stable for its crude in the US Gulf. If the US imports start to decline, demand could soften in the VLCC tanker segment as tankers make shorter voyages to the Far East.

Navy's Efforts Focus on A-P Region & Arabian Gulf Says CNO

ADM Greenert at the Hearing: USN Photo

By operating from forward locations, the Navy and Marine Corps provide President Barack Obama with options to deal promptly with global contingencies, Navy Adm. Jonathan W. Greenert, the chief of naval operations (CNO) explained during a hearing of the House Appropriations Committee's defense sub-committee, adding that Marine Corps Commandant Gen. James F. Amos is "a great shipmate." "As we conclude over a decade of wars and bring our ground forces home from extended

Keppel FELS Completes Singaporean Project

It also delivers another jackup rig, WilBoss, ahead of schedule Keppel FELS Limited (Keppel FELS), a wholly-owned subsidiary of Keppel Offshore & Marine Limited (Keppel O&M), has completed the construction of its second jackup drilling rig for Gulf Drilling International Ltd (GDI), a joint venture between Qatar Petroleum (QP) and Japan Drilling Co., Ltd. (JDC). At a ceremony on 26 January 2008, the rig was named Al-Zubarah, after one of Qatar’s very important economic centres

ADSB and RR Set up Waterjet Support Service Center in Abu Dhabi

William Saltzer, ADSB’s Chief Executive Officer and Esa Uotinen, RR General Manager (Middle East) sign the Co-operation Agreement.

and Rolls-Royce Marine Middle East announced an agreement to set up a Waterjet Center of Excellence in to provide support services to its customers in the Arabian Gulf Region. ADSB is the only naval shipyard in the , providing both build and support services for all Gulf Co-operation Council (GCC) naval vessels. Rolls-Royce will work with ADSB to offer services such as training, maintenance, repairs and overhauls, spare parts and service contracts for waterjet customers

Mine Detection Robot Performs in Bahrain

(Photo: Northrop Grumman)

As the demand for naval technology rapidly escalates globally, the Middle East remains a hotspot for investment and innovation. To this end, Northrop Grumman Corporation (NYSE: NOC), in support of U.S. Naval Forces Central Command in Manama, Bahrain, announced the successful demonstration of an unmanned mine-hunting mission. In the demonstration, the Mine Hunting Unmanned Surface Vehicle (MHU) was used in tandem with Northrop Grumman's AQS-24A Mine Detecting Sensor System in the Arabian Gulf

ASRY in Maritime Deal with Relay

Relay & ASRY signs service agreement to provide direct services to vessels

  UK-based engineering firm signs service agreement to provide direct services to vessels in ASRY, expanding the list of the yard’s onsite specialist contractors. ASRY, the leading ship and rig repair yard in the Arabian Gulf, has signed a specialized Services Agreement with Relay Engineering Limited, a specialist engineering company based in the UK, to offer its expertise in electrical, mechanical and constructive engineering directly to ASRY’s customers from a dedicated

Hatsu Marine Another Vessel to Fleet

Evergreen Shipyard Corp in Nagasaki, Japan, has launched the U.K.-flag 1,618-TEU Hatsu Prima which, on delivery, will be the seventh ship in the fleet of the Evergreen Group's affiliate, Hatsu Marine Ltd. The first five Hatsu vessels were all 6,332-TEU E-type container vessels, the last of which was Hatsu Ethic, delivered in January 2003. The sixth was Hatsu Pride, delivered towards the end of the same month.

Crew Boats Building in Dubai

Following the success of the Friah 1 and Friah 2, delivered in 2004, Arabian Gulf Mechanical & Contracting Ltd. has placed an order for three sisterships. The builder, Grandweld of Dubai, has delivered Friah 3 and is currently building Friah 4 and Friah 5. The boats will be 30.5 m overall with a waterline length of 27.12 m and a 6.4-m beam. Each vessel will have a net weight of 107 tons and 25 ton cargo capacity. Open cargo deck area is 65 sq. m

United Defense Shipyard Wins Ship Repair Contract

United Defense Industries, Inc. announced today the U.S. Navy's award to Southwest Marine (SWM) of the advanced planning segment of the contract for dry docking and pier side work on the USS LAKE CHAMPLAIN (CG-57), a Ticonderoga-class Aegis cruiser home-ported in San Diego. Southwest Marine is a member of United States Marine Repair, Inc. (USMR), which was acquired by United Defense last month. The advanced planning segment of the contract is valued at $518,484

ADSB, Next Phase of Corvette Class Program

Photo courtesy ADSB

Abu Dhabi Ship Building (ADSB), the leading shipbuilder and naval support services provider in the Arabian Gulf region, has commenced the next phase of its Baynunah Corvette Class pride Program constructions for the UAE Navy. The Prime Contractor has moved the second vessel from the assembly hall where it will pass through its final systems outfitting in preparation for its launching sometimes later in this year where it will go through an intensive acceptance trials prior to the final

Nimitz Carrier Strike Group in Arabian Gulf

Photo: United States Navy

 The Nimitz Carrier Strike Group (CSG) is carrying out strike sorties from the Arabian Gulf in support of Operation Inherent Resolve (OIR).    The first aircraft launched from USS Nimitz (CVN 68) was an F/A-18E Super Hornet assigned to the "Argonauts" of Strike Fighter Squadron (VFA) 147. Accompanying Carrier Air Wing (CVW) 11 squadrons, part of that first flight include the "Black Knights" of VFA-154, the "Blue Diamonds" of VFA-146

Gulftainer Receives Maiden Call of CMA CGM Virginia

Photo: Gulftainer Company Limited

 Gulftainer, the largest privately owned independent port operator, has marked the maiden call of the CMA CGM Virginia vessel with a capacity of 5,095 twenty-foot equivalent units (TEU) at its flagship Khorfakkan Container Terminal (KCT).    The vessel call was completed in a record 5.6 hours, approximately 8.4 hours ahead of schedule.   CMA CGM, a leading worldwide shipping group, currently operates a diversified fleet of 445 vessels with a combined capacity of over

Newcastle Completes Operations with US 5th Fleet

USS Nimitz, USS Princeton, French Navy FS Jean Bart and Royal Australian Navy frigate HMAS Newcastle conduct a formation group sail demonstrating combined interoperability and multinational partnership in support of Commander, Task Force 50 operations in the Arabian Gulf. Photo:  Royal Australian Navy

 HMAS Newcastle has completed an attachment with the US Navy’s 5th Fleet in the Arabian Gulf while deployed on maritime security operations in the Middle East region.                                          During the two-week attachment supporting the USS Nimitz Carrier Strike Group (CSG-11), Newcastle conducted escort operations and a range of naval manoeuvres with USN ships

Bahri Reinforces Americas Commitment

(Photo: Bahri)

Reinforcing its three-decade-long presence in North America, transportation and logistics firm Bahri took part in Breakbulk Americas, being held from October 17-19, in Houston.   The Bahri booth at Breakbulk Americas was opened by Mr. Sultan bin Abdullah Al-Angari, Consul General of Saudi Arabia in Houston, during a ribbon-cutting ceremony on the first day of the annual event in the presence of Amal Al-Ruwaii, Director for Trade and Investment

US, UK and France Begin Exercise Alligator Dagger 17

Official U.S. Navy file photo of Alligator Dagger, Arta Beach, Djibouti (U.S. Marine Corps photo by Sgt. Xzavior T. McNeal/Released)

 U.S., U.K. and France began Exercise Alligator Dagger 17, April 5. The two-week multilateral amphibious exercise is taking place in international waters off the coast of Djibouti and in the vicinity of Djibouti and Arta Beach, April 5 - April 20.   Exercise Alligator Dagger 17, led by U.S. Naval Amphibious Forces, Task Force 51/5th Marine Expeditionary Brigade (51/5), is a multilateral amphibious exercise with the Bataan Amphibious Ready Group (ARG) and 24th Marine Expeditionary

Eisenhower Strike Group Ready for Action

Photo: United States Navy

 Approximately 6,000 Sailors from the Eisenhower Carrier Strike Group (Ike CSG) are conducting a sustainment exercise (SUSTEX) to maintain their readiness and capability to deploy anywhere in the world on short notice should the need arise.  "Ike CSG is doing a great job on SUSTEX. Sustaining the readiness of this strike group--so it is ready to respond to a crisis anywhere on the planet--is a bargain and an important part of what our Navy's Optimized Fleet Response Plan does

Demand for Arabian Gulf Crude Export Dips in Q1

© sarojmornparn / Adobe Stock

Seaborne demand for Arabian Gulf crude exports down 14 percent in first quarter 2017 in very large crude carriers (VLCC) and Suezmaxes.   In the first quarter of 2017, more than 2.5 trillion ton miles were completed by the global VLCC and Suezmax fleet. This was down 4.6 percent from the previous quarter with a reduction in VLCC work done being the major contributor at -5.42 percent.   Over 50 percent of seaborne demand for crude exports stems from the Arabian Gulf

OPTECH South 2017: Littoral Challenges in Colombia

Photo credit: Nicklas Gustafsson

Concepts and Technologies Examined at Sea and Ashore    Naval experts from around the world are meeting in Cartagena, Colombia, for the Operations and Technology (OPTECH) South 2017 conference.  The event is being conducted by the U.S. Naval Postgraduate School’s (NPS) Littoral Operations Center (LOC), supported by the Office of Naval Research-Global and the Colombian Naval Science and Technology Office and Swedish defense company Saab.  

Saqr Port Orders Damen ASD Tug

Photo: Damen

Saqr Port, part of Rash Al Khaimah (RAK) Ports, has signed a contract with the Damen Shipyards Group for the delivery of an ASD 2913 tug. The vessel will be built a short distance away at Albwardy Damen in Sharjah and will be delivered in time for the opening of the new bulk terminal at Saqr Port in mid-2018.   Saqr Port is a major bulk-handing port in the Middle East and a vital part of the regional economy. Located at the foot of the Hajar Mountains

Saudi Aramco Inks Deals to Build Gulf's Biggest Shipyard

File Image (CREDIT: AdobeStock / (c) Burnell11)

Bahri, Lamprell, Hyundai Heavy are partners and will build VLCC's starting in 2019.   Saudi Aramco plans to build the Gulf's largest shipyard through a joint venture with three companies that it announced on Wednesday, a $5.2 billion project aimed at helping reduce the economy's reliance on oil.   Low oil prices have drastically slowed Saudi Arabia's economy so it is trying to create manufacturing jobs and produce goods and services which traditionally it has imported.  

Jawar Al Khaleej Takes Delivery of Two Vessels

Damen FCS 5009 (Photo: Damen)

Jawar Al Khaleej Shipping LLC (JAK), a provider of specialist services to the offshore oil and gas sector in the Arabian Gulf, has taken delivery of a Damen Fast Crew Supplier (FCS) 5009 and an ASD 3213 tug for operations at the Al Basra (ABOT) and Khor Al Amaya (KAAOT ) oil terminals. Between them, these facilities handle more than 90 percent of Iraq’s crude oil exports.   The FCS 5009 is named the Jawar Abu Dhabi and the ASD 3213 is the Jawar Faw

UK, France, US Sign Trilateral Submarine Agreement

Vice Adm. Louis-Michel Guillaume, left, commander of French Submarine and Strategic Oceanic Forces, Vice Adm. Kevin M. Donegan, middle, commander of the U.S. Naval Forces Central Command, and Rear Adm. Robert K. Tarrant, commander Operations of the Royal Navy, sign an agreement to increase coordination for anti-submarine warfare activities between France, the U.S. and the United Kingdom.  Photo: United States Navy

 Naval leaders from the United Kingdom, France and the United States signed an agreement June 1, designed to increase coordination for anti-submarine warfare activities of the three countries as they operate in the 5th Fleet area of operations.   Commander, U.S. Naval Forces Central Command (NAVCENT) Vice Adm. Kevin M. Donegan signed the trilateral agreement with Vice Adm. Louis-Michel Guillaume, commander, French Submarine and Strategic Oceanic Forces (ALFOST) and Rear Adm

CMA CGM Launches INDIAMED

Map: CMA CGM

 CMA CGM has announced the launch starting July 2 of its new service between the East Mediterrane an, Djibouti, Arabian Gulf, Pakistan and India. The service is one of the fastest between these strategic zones and connects CMA CGM hubs in the Mediterranean and the Arabian Gulf.   INDIAMED will complement our MEGEM (East Mediterranean to/from Middle East) and MEDEX (West Mediterranean to/from Middle East & Indian Sub-Continent) offering synergies between services to allow an

APM Terminals Mumbai Adds New Arabian Gulf/Mediterranean Direct Service

Photo: APM Terminals Mumbai

 French based CMA-CGM, a member of the Ocean Alliance, began the new INDIAMED service to Mumbai with the arrival of the 5,009 TEU capacity CMA CGM Virginia at APM Terminals Mumbai.    The service, linking South Asia with ports in the Arabian Gulf and Mediterranean, was officially introduced on July 2nd, operating with vessels provided by CMA-CGM, its APL subsidiary, and Chinese-based Alliance partner COSCO.  

Modern VLCC Rates Under Pressure

File Image (CREDIT: AdobeStock / (c) Carabay)

Rates fall back after climbing earlier in the week. Overcapacity, OPEC cuts, little scrapping, summer lull weigh on market.   Owners of modern very large crude carriers (VLCCs) could see a gain in charter rates amid tightening vessel supply but freight rates, especially for older and newly delivered ships, will remain under pressure, brokers said on Friday.   That came as rates rebounded slightly earlier this week on routes from the Middle East only for them to fall back to

Maritime Reporter Magazine Cover Oct 2017 - The Marine Design Annual

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