Russia, China, Iran start IO Naval Drills
Iran, China and Russia began joint naval drills on Friday in the Indian Ocean and Gulf of Oman, in what Moscow said was an unprecedented exercise in naval cooperation and training.Waters around Iran have become a focus for international tensions, with the United States exerting pressure for Iranian crude oil sales and other trade ties to be cut off."The message of this exercise is peace, friendship and lasting security through cooperation and unity... and its result will be to show that Iran cannot be isolated…
U.S. Considers Venezuela Oil Sanctions
The Trump administration is considering sanctioning a Venezuelan military-run oil services company and restricting insurance coverage for Venezuelan oil shipments to ratchet up pressure on socialist President Nicolas Maduro, a U.S. official said. With Maduro running for another term in an April election that Washington and its allies oppose as a sham, the United States is weighing sanctions that would target Venezuela’s vital oil sector beyond what has been done before, the official told Reuters on Wednesday. Some measures could come before the vote and others could be imposed afterwards.
Venezuelan Crude Sales to the US Down in March
Venezuelan crude oil sales to the United States declined in March for the third month in a row this year to 651,710 barrels per day due to falling exports of main grade Merey, according to Thomson Reuters trade flows data. Venezuela's crude output fell in 2016 to its lowest level in 23 years. Analysts expect another decline in 2017 due to lack of investment and to cash flow problems affecting state-run oil firm PDVSA, which controls more than 40 joint ventures for exploration and production. The volume of Venezuelan crude that PDVSA and its joint ventures exported in March was down by 2.3 percent from February and by 18 percent from a year earlier.
Nigeria to Pursue peace in restive Oil-producing Delta Region
Nigeria's government will seek a lasting peace settlement with militants in the oil-producing southern Niger Delta region in 2017, President Muhammadu Buhari said in a New Year's message on Saturday. Attacks on oil facilities in Nigeria's energy hub, coupled with low oil prices, helped push Africa's biggest economy into recession - the first in 25 years - in the second quarter. Crude oil sales account for two-thirds of government revenue in the OPEC member country. Attacks by militants…
Turkey’s Role for the Tanker Market
Even though the coup attempt in Turkey failed and the transportation situation normalized quickly thereafter, Poten & Partners take a look at the importance of Turkey to the tanker market. Turkey is not a large oil or gas producer; according to JODI its crude oil production amounts to about 48 thousand barrels per day (Kb/d) of crude oil and almost 400 million m3 of natural gas in 2015. The country’s oil consumption averaged about 927 Kb/d in 2015, about 1% of the global consumption. Neither of these statistics would make the country an important energy market player.
Venezuelan Crude Sales to the US Jump 4% in May
Venezuelan crude oil sales to the United States rose nearly 4 percent in May to 762,000 barrels per day (bpd) after declining since January amid falling output and delays at the country's main oil port, according to Thomson Reuters data on Tuesday. The United States last month received 47 cargoes of Venezuelan crude, a 3.7 percent increase versus the previous month, but still a 2 percent decline versus May 2015, according to trade flows data made with preliminary figures. A larger number of shipments of diluted crude oil (DCO) and Merey blend received by PDVSA's customers, including its refining unit Citgo Petroleum, Valero Energy and Phillips 66, contributed to the growth.
Bahri Orders VLCC Newbuilds
The National Shipping Company of Saudi Arabia (Bahri) today signed an agreement with Hyundai Samho Heavy Industries (HSHI) Co. Ltd. to build five very large crude carriers (VLCC), plus an option for five more VLCCs. The signing ceremony was attended by Eng. Ibrahim Abdulrahman Al-Omar, Bahri’s Chief Executive Officer and Mr. S. H. Ka, Hyundai’s Member of the Board & Chief Operating Officer. Eng. Al-Omar, stated that this agreement is in line with Bahri’s plans to renew and expand its fleet to meet the requirements of both local and international markets. The first five VLCCs are due for delivery during 2017. Bahri noted that these carriers are designed to the latest international technical specifications and are fitted with environment friendly and fuel efficient engines. Eng.
Bahri Inks Contracts with Hyundai to Build 5 VLCCs
The National Shipping Co. of Saudi Arabia (Bahri) signed contracts on Thursday with Hyundai Samho Heavy Industries (HSHI) to build five very large crude carriers (VLCCs), with an option for additional five more vessels, the company said in a bourse statement. The carriers will be delivered in 2017, and the relevant financial impact will materialize after the delivery. The VLCCs are designed in-line with the latest international technical specifications, with a capacity of 300,000 DWT per carrier. Eng.
Oil Price Rebound Means Big Gains for Oil Producers
The third quarter proved to be a prosperous one for oil companies, as most of our sampling realized substantial gains in net income and net operating income for the period, as compared to 1998's third quarter. A higher average worldwide crude oil price was chiefly responsible for the increases, although in some cases, cost-cutting measures also contributed heavily to the financial results. Exploration and production net operating income was up, nearly across the board. However, for the first nine months of 1999, earnings and net income are still down from the same period in 1998. Phillips Petroleum Company reported third-quarter net income of $221 million up from $46 million for the same period last year. Total revenues were $3.8 billion, versus $2.9 billion a year ago.
Quarter and Year-End Earnings
Once again, quarter and year-end earnings reported in the offshore market reflected a familiar trend: oil majors saw gains - sometimes significant; while oilfield service companies continued to struggle, compared to the year-earlier marks. Unocal Corporation reported fourth quarter 1999 preliminary unaudited net earnings of $97 million and adjusted net earnings (excluding special items) of $77 million. The fourth quarter results compare with a reported loss of $29 million for the same period a year ago. Adjusted net earnings for the fourth quarter 1998 were $28 million. The fourth quarter earnings reflect higher oil and gas prices, offset partially by lower net oil and gas sales volumes and a higher international tax rate.