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Friday, October 20, 2017

Big Oil

India's Oil Imports from Iran top 500,000 bpd in 2016/17

 India's Iran oil imports jumped to a record high in 2016/17 topping half-a-million barrels per day (bpd) as refiners boosted purchases after lifting of some Western sanctions against Tehran last year. India, Iran's biggest oil buyer after China, was among a handful of countries that continued to deal with Tehran despite Western sanctions over its nuclear programme. Refiners shipped in about 541,000 bpd of Iranian oil in the fiscal year to March, a growth of about 115 percent over the previous year, ship tracking data obtained from sources and data compiled by Thomson Reuters Oil Research & Forecasts showed. Iran was India's second biggest oil supplier - a position now belonging to Iraq - before economic sanctions aimed at Iran's nuclear programme hampered its trade relations, forcing the South Asian nation to tap alternative suppliers. Purchases by Indian refiners, including Reliance Industries that resumed imports last year after a multi-year lay-off, helped Iran regain some of the lost market share. Imports from Iran could ease in this fiscal year as state-refiners have agreed to cut their annual imports deal with Iran by a fifth to put pressure on Tehran to award the Farzad B gas field to an Indian consortium. Iran, in turn has decided to cut the credit period on oil sales to 60 days from 90 days and cut freight discounts from 80 percent to 60 percent.

World's Biggest Oil Platform May Sink

The world's biggest oil platform, owned by Brazil's state oil giant Petrobras, may sink, sending the death toll to 10 after two powerful explosions rocked the rig earlier Thursday, Petrobras president said. Petrobras President Henri Philippe Reichstul also said the nine workers missing since the blasts have little chance of survival, which would bring the death toll to 10. "The platform is listing 30 degrees and could sink," Reichstul told a press conference in Macae

Petrobras Sends 20 Ships To Monitor Oil Spill

Petrobras moved about 200 men and 20 ships to monitor oil spilled offshore after the world's biggest rig was rocked by blasts and sank earlier this month. On March 15, three blasts ripped through Petrobras' 40-storey platform, the world's biggest oil rig, killing 11 and spilling about 11,000 gallons of diesel oil. Petrobras has mobilized 11,000 m of retaining barriers, 21 oil collecting units, 18 suction pumps and 40

A.P. Moeller Profits Fly Orange

A.P. Moeller, operator of the world's leading container line and a big oil producer, posted sharply higher first-half profits on Thursday and said full year profits would improve considerably on 1999. Consolidated operating profit before depreciation rose 54 percent to $910 million and net profit surged 92 percent to 2.63 billion crowns. The results were slightly below forecasts in a Reuters poll of analysts. Moeller's shares -- up some 28 percent in the past four weeks for a 2001 earnings

ONGC to Finalize Shipbuilding Contract

According to a June 25 report on livemint.com, India’s biggest oil exploration company, the state-owned Oil and Natural Gas Corp. Ltd (ONGC), is expected to name within a week the winner of a tender to build 12 ships that will support its oil drilling operations. It was reported that Pipavav Shipyard Ltd, India’s newest private sector shipbuilder, has submitted the lowest bid. However, the winner will not be named ahead of a formal announcement by ONGC.

Single-Hull Tanker Traffic to Saudi Ports Dwindles

A Dec. 25, 2009 report from Gulf News, said the number of single-hull supertankers bound for Saudi Arabia, the world's biggest oil-producer, fell 50 percent over the past month, according to ship-tracking data compiled by Bloomberg. Trading of single-hull tankers will become more restricted next year under International Maritime Organization regulations. The vessels will require inspections to prove their seaworthiness. (Source: www.gulfnews.com)

Saudi Aramco To Turn Back Some Tankers

Saudi Arabia's state oil company has informed shipping agents at the Gulf state's ports that it will turn back tankers that are not prepared for the Y2K potential computer glitch, an industry source said. Experts on Gulf oil industries say Saudi Arabia -- the world's biggest oil producer -- is the best prepared in the Gulf for Y2K. Saudi Aramco is requiring ship captains to fill out questionnaires to determine if their vessel is Y2K compliant, the industry source said

Exxon Mobil Plans to Drill Wells in Indonesia

Exxon Mobil plans to drill three exploratory wells in an Indonesian offshore oil block over the next three years, a company official said on Wednesday. Exxon Mobil signed an oil contract with the Indonesian government last month 2,062 sq mile of the offshore Surumana block in the Makassar Straits. The government had said that in the case of Surumana, any oil find would be split 65:35 percent between government and contractor. Meanwhile, any gas find would be split 60:40 percent.

Royal Dutch/Shell Workers Held Hostage In Nigeria

It was reported that militant youths in Nigeria's Niger Delta are holding 12 Royal Dutch/Shell workers hostage, to press for compensation for an oil spill in their area. Shell officials in Lagos said they were not aware of the kidnapping, which the youths said was to forced the oil company pay $1.5 million compensation for a 1989 oil spillage. Sources said the oil workers, mainly Nigerians, were seized by youths from Arhavwarien community in Ugheli South Local Council in southern Delta

MISC Proposes $973m Deal for Ramunia

MISChas proposed a $973m deal to merge its shipbuilding business with Ramunia Holdings, an oil services company. The merger would expand MISC’s plans to create a regional business building oil rigs to compete against neighbouring Singapore, which is the world’s largest producer of offshore energy platforms. The deal would be a reverse takeover that could allow MISC to list its Malaysia Marine and Heavy Engineering unit under the Ramunia name in hopes of copying the success of Keppel Corp

Borr Drilling Aims to Expand Fleet, Keep Costs Low

Borr Drilling, the Norwegian drilling start-up, which listed on the Oslo exchange on Wednesday, said it aimed to expand its fleet, taking advantage of its low cost base. The start-up, launched last year and backed by the world's biggest oil service firm Schlumberger, said it aimed to have the lowest cash break-even costs in the industry and would take advantage of current low prices for rigs. "We have no debt

NAT Wins TC Contract with BP

Photo:  Nordic American Tankers

 Nordic American Tankers Limited (NAT) has entered into a 2 year time charter (TC)  with British Petroleum (BP). This follow's NAT's TC arrangements with Shell, ExxonMobil and other major oil companies both in the West and in the East.    "The minimum rate is well above our cash break-even level with an index linked formula providing for upside potential to NAT. Commencement is mid September; i.e. in about 10 days," said a statement from the company.  

CGG Wins Creditor Support for Chapter 11 Plan

Photo: CGG

 CGG SA announces that all creditor classes entitled to vote on the chapter 11 plan proposed in the chapter 11 cases commenced on 14 June 2017 in the US Bankruptcy Court for the Southern District of New York by CGG SA’s 14 main foreign, direct and indirect subsidiaries, each a borrower or guarantor in respect of CGG Group’s funded financial indebtedness, have accepted the plan overwhelmingly.  

Oil Rallies on Chinese Import Boost and Mideast Tensions

© prathaan / Adobe Stock

Oil prices firmed on Friday as bullish news from strong Chinese oil imports to turmoil in the Middle East put Brent on track for a nearly 3 percent weekly gain. The developments added to other signs that the market was finally rebalancing after years of excess, but analysts warned that the 2018 balance was still shaky. Brent was at $57.20 at 1335 GMT, up 95 cents. U.S. West Texas Intermediate (WTI) crude was at $51.44 per barrel, up 84 cents from its last settlement.

US Oil Drillers Add Rigs for 5th Week in 6

U.S. drillers this week added oil rigs for a fifth week in six, according to a closely followed report Friday, prompting analysts to predict the rig count has bottomed and production will start to edge up early next year.   Drillers added 10 oil rigs in the week to July 8, bringing the total rig count up to 351, compared with 645 a year ago, energy services firm Baker Hughes Inc said.   Before this week, drillers added oil rigs in only five out of 26 weeks this year

Oil Extends Rally on Possible Producer Action

Oil prices were up about 1 percent on Friday, on track for their biggest weekly gains since May, after a short covering rally was triggered by comments from Saudi Arabia's oil minister in the previous session about possible action to help stabilize the market.   The market, however, pared some gains after data showed U.S. oil drillers added rigs for a seventh straight week, the longest recovery in the rig count in over two years. They added 17 rigs, the biggest increase since December.

Big Tankers' Need for Retrofit Slows Use of New Panama Canal

Photo: Panama Canal Authority

The promise that some oil traders and brokers saw for an expanded Panama Canal to become a new route for large tankers will take longer to realize than expected because many ships must first undergo inconvenient retrofits to transit through the new locks, shipping industry experts said.   The modifications to these bigger oil carriers - which mostly involve fittings such as chocks and bollards that secure the ship's dock and tow lines - are needed because the new locks that opened in

Hellenic Petroleum Profits Rise on Higher Exports

Hellenic Petroleum, Greece's biggest oil refiner, posted a 20 percent rise in second-quarter core profit on Thursday, with higher exports offseting lower refining margins.   The company, which exports diesel and gasoline to markets in the southeastern Mediterranean and the Balkans, saw refining margins fall as much as 35 percent from $7.3 per barrel and a marginal decline of demand in the domestic market, it said.  

Keppel Shuts Down Three Yards in Singapore

Photo: Keppel Offshore & Marine

 Keppel Corp, the world's biggest oil rig builder, is still hard hit by the downturn in the oil industry and will now shut down three yards in its homeland.   Singapore-based offshore company Keppel reduced its direct work force by about one third. The workforce has been reduced by 2,620 employees in the fourth quarter a cut of 11.8%.    For 2016 as a whole Keppel reduced its direct workforce by 10,600, some 3,800, and about 6,800 overseas

Despite Sanctions Relief, Shell Still Cool on Iranian Oil Buys

Royal Dutch Shell has bought only three cargoes of Iranian oil since sanctions were eased a year ago, a small fraction of what it used to buy and an indication of the legal difficulties and high prices that still hamper the trade. The Anglo-Dutch firm did not give a reason for the drop in purchases, which were disclosed in its annual report, and the company declined to comment further. But oil trading sources say Iranian oil is often too expensive and in any case remaining sanctions make

Nigeria Oil Exports Continue to Climb

Nigeria issued its first Forcados oil loading plan since 2016, putting the nation's June oil exports on track to hit thier highest level in at least 15 months. The plan, if realised, would return loadings by Nigeria, normally West Africa's biggest oil exporter, to levels not seen since militant attacks in the oil-rich Niger Delta first shut down Forcados exports in early 2016. It is also likely to put more downward pressure on oil prices

Iran Raises Oil Exports to West, Almost on Par with Asia

© Evren Kalinbacak / Adobe Stock

Iran's oil exports to the West surged in May to their highest level since the lifting of sanctions in early 2016 and almost caught up with volumes exported to Asia, a source familiar with Iranian oil exports said. Iran, which used to be OPEC's second biggest oil exporter, has been raising output since 2016 to recoup market share lost to regional rivals including Saudi Arabia and Iraq. While many Asian nations continued to purchase oil from Iran during sanctions

CGG Files for Bankruptcy

CGG Oceanic Sirius  Photo:  CGG

 French geosciences giant CGG has filed for bankruptcy as part of financial restructuring process to reduce its $3 billion debt.    "CGG has begun legal processes to implement a comprehensive pre-arranged restructuring, with the opening of a safeguard proceeding in France and Chapter 11 and Chapter 15 filings in the US," said a statement from the company.   CGG has executed the legally binding agreements in support of the terms of the agreement-in-principle

India's Largest Box Port Hit by Cyber Attack

File Image: CREDIT Trelleborg

Operations at one of three terminals at India's largest container port JNPT, near the commercial hub of Mumbai, have been disrupted by the global ransomware attack, the port said on Wednesday.   The affected terminal is operated by Danish shipping giant AP Moller-Maersk, which said on Tuesday that the cyber attack had caused outages in its computer systems globally.   Clients were notified on Wednesday morning that vessel operations at the terminal would be hit and that the

NAT Time Charter with Oil Firm

Photo:  Nordic American Tankers

 Nordic American Tankers Limited (NAT) announced that it has entered into two Time Charter arrangements (TCs) with Shell Oil for a period of 18 months for each vessel, commencing in August/September this year.   The terms of the confidential contracts include upside for both parties as well as downside protection. NAT now has three TCs with Shell.     NAT has six TC arrangements with large oil companies - from three months up to 18 months.     

Maritime Reporter Magazine Cover Oct 2017 - The Marine Design Annual

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