SBM Offshore Awarded Liza FPSO Contract
SBM Offshore said it has secured contracts from ExxonMobil to construct, install, lease and operate a floating production, storage and offloading vessel (FPSO) for the next phase of the Liza project in Guyana. The contracts follow completion of front-end engineering studies and the final investment decision on the project by ExxonMobil. The Liza field is located in the Stabroek block, which covers almost 27,000 square kilometers, circa 200 kilometers offshore Guyana. Esso Exploration and Production Guyana Limited is the operator and holds a 45 percent interest in the Stabroek block. Hess Guyana Exploration Ltd. holds a 30 percent interest, and CNOOC Nexen Petroleum Guyana Limited holds a 25 percent interest.
India's LNG Market to Reach USD 30.7bln by 2025
India Natural Gas and LNG market is expected to grow from US$ 19.7 billion in 2015 to US$ 30.7 billion by 2025 at a CAGR of 5.06% between 2016 and 2025. According to a report by Research and Markets, natural gas including Regasified Liquefied Natural Gas (R-LNG) in India has been widely recognized as the fuel with multiple promising aspects. The present situation of the gas sector in India is going through multiple challenging phase. Due to its high macroeconomic growth visions and increasing population…
Statoil, AET Expand Shuttle Tankers Contract
Statoil ASA and petroleum and chemical tanker owners and operator AET are extending their partnership in the North Sea shuttle tanker sector. Statoil has, awarded a long-term contract to AET, a subsidiary of Malaysian energy shipping group, MISC Berhad, to operate two specialist DP2 offshore loading shuttle tankers (OLSTs) on long-term charter. These new vessels will be in addition to the two AET DP2 ships currently on charter, in the same area, for Statoil. These new vessels are in addition to the two AET DP2 ships currently on charter in the same area for Statoil.
Mexico's Pemex Sees Restart of Salina Cruz Refinery
Mexican state oil producer Pemex said on Thursday that it expects to restart operations on July 30 at Salina Cruz, its largest oil refinery, after it was hit last week hit by flooding and subsequent fire that forced a shutdown of the plant. The program contemplates three-way actions: Restarting operations; cleaning and rehabilitation of the affected site and general maintenance, taking advantage of the shutdown of the process. This last activity would allow for the advancement of the maintenance that was scheduled for next April…
Novatek Aims to Topple Qatar from LNG Top Spot
Russian gas producer Novatek aims to topple Qatar as the world's biggest exporter of liquefied natural gas as it gets closer to completing its first LNG project, a top executive said, batting away concerns about U.S. sanctions on the sector. The country's largest non-state gas producer is expected to start exporting LNG from the first phase of the Yamal project, situated far above the Arctic circle, towards the end of this year and may bring forward its final stage by six months, CFO Mark Gyetvay said.
KOGAS to Receive first Cheniere LNG Cargo
KOGAS to receive first LNG cargo from Cheniere in July; this marks start of 20-year supply contract. Korea Gas Corp (KOGAS) will early next month receive its first liquefied natural gas (LNG) cargo under a long-term supply deal with U.S. exporter Cheniere Energy, two sources at the South Korean company said on Friday. The 74,000-tonne LNG cargo was loaded from Cheniere's Sabine Pass export terminal in Louisiana and is scheduled to arrive at the port of Tongyeong, South Korea on July 2, one of the sources said. Both sources declined to be identified.
DNV GL Bags Maersk Oil's Tyra Verification Service Contract
DNV GL has won a major contract to provide independent verification services for the Maersk Oil redevelopment of the Tyra field, offshore Denmark. The Tyra field in the Danish North Sea has been at the centre of Denmark’s national energy infrastructure since 1984, providing 90% of the country’s gas production. The contract will be coordinated by DNV GL in Denmark, with teams of experts from multiple DNV GL offices supporting the construction in fabrication yards across the world over the next five years.
DNV GL, Goldwind in Wind Power Pact
Goldwind International and DNV GL has signed a Memorandum of Understanding (MoU) for optimizing offshore and onshore wind projects. DNV GL to be preferred independent third-party advisor for performance optimization of offshore and onshore wind projects. DNV GL, the world’s largest resource of independent energy experts and certification body, said in a statement that it has signed MoU with Goldwind International during the Norway-China Partnership for Low Carbon Energy Transition seminar organized by the Beijing Energy Club.
Golar, Delfin to Jointly Develop US FLNG Project
A joint development agreement between Delfin Midstream and Golar LNG Limited will see the two jointly develop the Delfin LNG project off the coast of Cameron Parish, La. The joint development agreement will facilitate the financing, marketing, construction, development and operation of Delfin LNG, the first and only permitted floating LNG (FLNG) export project in the U.S. Delfin LNG is a brownfield Deepwater Port requiring minimal additional infrastructure investment to support up to four FLNG vessels producing up to 13 million metric tons of LNG per annum. Delfin purchased the UTOS pipeline, the largest natural gas pipeline in the Gulf of Mexico, in 2014 and submitted its Deepwater Port license application in 2015.
Oil at 10-month Low after Biggest First Half Slide in 20 Years
Oil prices ended down more than 2 percent on Wednesday after hitting a 10-month low in volatile trade, as growing U.S. production and reduced Chinese refinery activity fed mounting concern over the stubborn global crude glut. U.S. crude futures settled at $42.53, down 98 cents or 2.3 percent, after touching a low of $42.13, the lowest intraday level since August 2016. Since peaking in late February, crude has dropped more than 20 percent, with only brief rallies. More than 1 million front-month crude contracts changed hands on Wednesday, far exceeding the daily average of 560,000 contracts.
GoM Rigs Evacuated ahead of Storm Cindy
Facing incoming Tropical Storm Cindy, offshore oil and gas operators in the Gulf of Mexico have begun evacuating platforms and rigs as the storm moves north-westward toward the U.S. Gulf Coast. Data from offshore operator reports submitted to the Bureau of Safety and Environmental Enforcement (BSEE) as of 11:30 CDT today indicate that personnel have been evacuated from a total of 40 production platforms, or 5.43 percent of the 737 manned platforms in the Gulf of Mexico. Personnel have been evacuated from one rig non-dynamically positioned (DP) rig…
Cindy's Remnants Drench Gulf Coast, Wreaking Havok
The remnants of Tropical Storm Cindy brought tornadoes and flooding to the U.S. Gulf Coast on Thursday and its heavy rains will drench much of the eastern United States in coming days, forecasters said. Flooding and road closures stretched from east Texas into northwestern Florida after Cindy made landfall early on Thursday near the Louisiana-Texas border and weakened to a tropical depression, the National Weather Service said. Cindy is expected to dump 3 to 6 inches (7.5 to 15 cm) of rain as it heads north and east into the Ohio Valley and the Appalachian Mountains through Saturday, said Brian Hurley, a weather service meteorologist. Totals could reach 9 inches (22.5 cm) in some areas. "We're looking at quite a bit of rain. That's going to be the main threat," he said.
Asia Tankers-VLCC Rates Supported by Floating Storage
Trafigura hires five VLCCs to store oil; short-term storage a profitable play. Freight rates for very large crude carriers (VLCCs) could creep higher as more ships are chartered for floating storage and crude oil shipments increase ahead of the northern winter, brokers said. "There might be a slow creep up towards 60 (on the Worldscale measure)," said Ashok Sharma, managing director of ship broker BRS Baxi in Singapore on Friday. "W60 is at least on the horizon. Rates from West Africa to China are already at W56," he added.
Cindy to Weaken this Morning - NHC
Tropical storm Cindy is expected to weaken while moving farther inland and become a tropical depression later Thursday morning, the U.S. National Hurricane Center (NHC) said in its latest advisory. "Continued weakening is forecast during the next 48 hours, and Cindy should weaken to a tropical depression later this morning, and become a remnant low tonight," the Miami-based weather forecaster said. Cindy, now located about 40 miles (65 km) northwest of Lake Charles, Louisiana with maximum sustained winds of 40 miles per hour (65 km/h), will likely move into southeastern Arkansas early Friday, and into Tennessee later that day. Reporting by Vijaykumar Vedala and Apeksha Nair
Faroe Islands Looks to Restart Hunt for Oil and Gas
Oil companies are interested in restarting the hunt for oil and gas in the scarcely explored seas off the Faroe Islands neighbouring the more mature UK North Sea, the head of the Faroese Geological Survey said. No economically viable discoveries have been made on the Faroese shelf but the tiny nation hopes to entice energy firms to restart exploration as it shows them new geological data in London on Wednesday. "Oil firms have in many ways shown interest. We are having meetings, they buy data from us, visit us on the Faroe Islands ... So there is an interest and they are looking at the possibilities," survey director Niels Christian Nolsoe said.
Tropical Storm Cindy Rolls in on US Gulf Coast
Tropical Storm Cindy is likely to hit the Gulf Coast near the Texas-Louisiana border on Wednesday night, threatening to bring flash floods from Texas to Florida, according to the National Hurricane Center. Cindy was located about 165 miles (265 km) south of Morgan City, Louisiana, early on Wednesday with maximum sustained winds of 60 miles (95 km) per hour, the NHC said. The storm was moving northwest at nearly 8 miles (13 km) per hour, and forecasters said they expected this motion to continue until it hits the coast.
Rosneft to Return to State Dividend Proposal
Igor Sechin, the head of Russian oil major Rosneft, said on Wednesday that his company would return to a government proposal for state-owned companies to pay out 50 percent of their profit in dividends for Rosneft's 2017 results. (Reporting by Denis Dyomkin; Writing by Jack Stubbs)
SLNG Terminal Performs Small Scale LNG Reload First Time
Singapore LNG Corporation Pte Ltd (SLNG) has successfully performed its first small scale Liquefied Natural Gas (LNG) Gas-Up/Cool-Down and Reload at its Terminal on Jurong Island. The operation was carried out from 18-20 June 2017 for the newly built, 6,500m3, Cardissa, an LNG bunker vessel owned by Shell and co-financed by the European Union’s Connecting Europe Facility that will serve customers in Northwest Europe. The operation was conducted at the SLNG Terminal’s Secondary Jetty, which is originally designed to accommodate LNG vessels from 60,000m3 to 265,000m3 in size.
ABS Approval for Chiyoda's Floating LNG Power Plant
“As the energy mix shifts and global demand for gas increases, concepts like this will reshape how energy is supplied,” said ABS Vice President for Global Gas Solutions, Patrick Janssens. This concept offers a new approach to delivering new sources of power to remote areas of the world. The conceptual design is based on existing LNG carriers which are converted into floating power plants with small (~72 MW) to medium (~400 MW) scale power generation capabilities. In reviewing Chiyoda’s floating LNG power plant concept, ABS said it applied its relevant Rules and Guides to confirm that the conceptual design meets the intent of applicable class requirements.
Energy-efficient Shipping in South African Curriculum
Maritime educators from South Africa are taking part in an International Maritime Organization (IMO) training workshop to introduce the topic of energy-efficient ship operation into their teaching curriculums. The workshop, taking place in Durban (19-20 June) was developed under the Organization’s GloMEEP project and supports maritime training institutes to deliver the IMO Model Course 4.05 to seafarers. The course consists of lectures, interactive exercises and videos to enhance the learning experience for crews being trained and…
Oil Traders Brace for US Gulf Coast Storm
Oil traders from Texas to Louisiana braced on Tuesday for supply disruptions as Tropical Storm Cindy, formed in the U.S. Gulf of Mexico, threatened to hit refining and production centers with wind and rain later this week. Cindy was located about 265 miles (430 km) south of Morgan City, Louisiana with maximum sustained winds of 45 miles (75 km) per hour. It is expected to approach the coast of southwest Louisiana late Wednesday or Wednesday night, and move inland over western Louisiana and eastern Texas on Thursday, the NHC said. The Louisiana Offshore Oil Port, the largest privately owned crude storage terminal in the United States…
Private Producer Aims to Ship Baltic's First Russian LNG Before Gazprom
LNG Gorskaya, a privately-owned Russian liquefied natural gas (LNG) producer, has launched a 340 million euro ($379 million) project to become the first LNG exporter from Russia's European coast, its CEO told Reuters. Russia expects to send LNG to Europe by the end of 2017 from its distant Arctic peninsula of Yamal but a plant on its Baltic coast could establish the country as a more immediate supplier of LNG in a region already dependent on piped Russian gas. The company will build a floating LNG plant off the port of Gorskaya, not far from Saint Petersburg, which will be fed by a 12 km pipeline from Gazprom. The LNG will then be shipped to seven Baltic ports outside Russia using three tankers already on order from Russia's United Shipbuilding Corporation.
Snam in Talks to Buy LNG Terminal Stake from Edison
Italian gas group Snam is in exclusive talks with EDF's Italian unit Edison to buy a stake in a liquefied natural gas terminal in northern Italy as part of plans to develop its LNG business, two sources said. Snam, controlled by state lender Cassa Depositi e Prestiti, is looking to buy Edison's 7.3 percent stake in Terminale LNG Adriatico and the gas pipeline that connects it to Italy's gas transmission backbone, the sources said. Adriatic LNG, which has a capacity of 8 billion cubic metres per year, is 70.7 percent owned by ExxonMobil and 22 percent by Qatar Petroleum.
Qatar Tells US It Will Maintain Stable LNG Exports
Qatar's finance minister told U.S. Treasury Secretary Steven Mnuchin during a trip to Washington last week that Qatar was committed to maintaining stability around its exports of liquefied natural gas to the global energy market, according to a statement by Qatar's government communication office. "They discussed Qatar’s efforts to counter terror financing ... and Qatar’s commitment to maintaining stability around its exports to the global energy market," the statement said. Saudi-led sanctions imposed two weeks ago on Qatar, the world largest exporter of LNG, have raised concerns about the Gulf state's energy output but officials have said Qatar's LNG exports have not been affected. (Reporting by Tom Finn)
Offshore Gas Safety atop the Agenda for Martek Marine
Maritime industry technology specialists Martek Marine say it is setting the bar high when it comes to offshore gas safety. The company has developed a first-of-its-kind gas sampling system for a new moored floating production unit, which forms part of the Jangkrik Complex gas fields development in Indonesia. The system has been developed to dramatically improve offshore crew safety through the use of advanced gas sampling technology. The worst offshore disaster in history, the Piper disaster on July 6…
Rolls-Royce, Svitzer Trial Remote Controlled Tug Operations
Earlier this year in Copenhagen Harbor, the 28-meter-long tug Svitzer Hermod berthed alongside the quay, undocked, turned 360 degrees and sailed back to Svitzer headquarters before docking again, all under remote operation while the captain was stationed quayside at the vessel’s remote base at Svitzer HQ. Though a captain and crew remained on board throughout to ensure safe operation in the event of a system failure, the remotely controlled maneuvers demonstrated a “world first” for a commercial vessel, according to project partners Rolls-Royce and global towage operator Svitzer.
US LNG Going Global
The U.S. liquified natural gas (LNG) market is ripe with opportunity, according to American Action Forum (AAF). "When coupled with the tension surrounding Qatar (the largest exporter of natural gas in the world), this makes U.S. LNG production a very attractive option," said Kimberly VanWyhe is the Director of Energy Policy at the AAF. In 2016, LNG exports from the U.S. totaled 184,141 million cubic feet with a value of roughly $564 million. Currently the U.S. is exporting LNG to 23 out of 35 countries that can accept LNG transport vessels, a sharp change from this time last year.
Charters Joins NOAI Staff
Tim Charters has joined the staff of the National Ocean Industries Association (NOIA) as Senior Director of Governmental and Political Affairs. Charters comes to NOIA from the National Stripper Well Association (NSWA) where he represented more than 18,000 small business men and women in America’s upstream energy industry as Vice President of Governmental and Regulatory Affairs. Charters brings nearly 20 years of Congressional experience to NOIA. From 2008-2015, he served as Staff Director of the Energy and Mineral Resources Subcommittee of the House Natural Resources Committee under Chairman Doc Hastings (R-Wash.). During his tenure…
Saudi Navy Detains IRGC Boat
The Saudi navy has captured three members of Iran's Revolutionary Guard Corps (IRGC) from a boat seized last week as it approached the kingdom's offshore Marjan oilfield, the Saudi information ministry said on Monday. Relations between the two countries are at their worst in years, with each accusing the other of subverting regional security and support opposite sides in conflicts in Syria, Yemen and Iraq. "This was one of three vessels which were intercepted by Saudi forces. It was captured with the three men on board, the other two escaped," a statement from the ministry's center for international communications said. "The three captured members of the Iranian Revolutionary Guard are now being questioned by Saudi authorities," it said, citing a Saudi official.
China Grants 22.92 Mln T of Oil Import Quotas
China has issued a second batch of oil import quotas that will allow independent refiners and some state companies to import a total of 91.73 million tonnes of crude (1.83 million barrels per day) in 2017, a document obtained by Reuters showed on Monday. The Ministry of Commerce approved a second batch of quotas of 22.92 million tonnes and added three companies to the list of recipients, that is mostly comprised of independent refiners, the document said. Company officials at five independent refiners told Reuters that they have received a second batch of crude import quotas.
Qatargas to Supply LNG to Shell
Qatargas and Shell have signed a memorandum of understanding (MOU) that will lead to the two companies jointly researching liquefied natural gas (LNG) logistics. Through this joint logistics research collaboration, Qatargas and Shell aim to develop new ways to optimize supply chains to deliver to LNG global markets. The research will be conducted at the Qatar Shell Research & Technology Centre at the Qatar Science & Technology Park. The MOU was signed by Faisal Al Suwaidi, Chairman and Chief Executive Officer of Qatargas Operating Company…
Wells Fargo Calls $100 Oil a 'Pipe Dream'
USD 100 per barrel oil is but a “pipe dream,” Wells Fargo said in a new investor note, reports MarketWatch. The report quoted Wells Fargo’s John LaForge saying that he’s doesn’t expect oil prices to climb anywhere near $100 a barrel over the next few years. Barrels price will bounce between $30 and $60 in the coming years, according to top bank’s diagnosis. “We continue to hear that big cutbacks are on the cusp of happening,” he said. “The evidence, however, implies otherwise. Shale production has caused American output to stand higher than it did in 2014, before the oil price crisis began.
Noble Drillship Bags New Contract
Noble Corporation has been awarded new contracts for one of its drillships under which the unit will operate in the U.S. Gulf of Mexico and later Suriname. The 2013-built drillship Noble Bob Douglas has been awarded a contract with Murphy Oil, which will last from early to late July. The rig’s dayrate has not been disclosed. After completion of the project, the ship will start a contract with Tullow Oil offshore Suriname from early October 2017 to early November 2017 again at an undisclosed rate.
CEFC Bags Bunker Licence for Zhoushan Free Trade Zone, China
CEFC China Energy was awarded a licence by Zhoushan Free Trade Zone for supply marine bunker fuel off the east coast of China to vessels on international voyages, reports Reuters. The report quoted two CEFC officials saying that the license is to supply bunker fuel from bonded storage to vessels that call at the Zhoushan area. The Zhoushan Free Trade Zone is in the coastal province of Zhejiang and is a new free trade zone the Chinese government approved earlier this year to boost commodities trade.
Exxon, Partners Set $4.4 Bln for Oil Project Offshore Guyana
Exxon Mobil Corp said on Friday it and partners would spend $4.4 billion to develop part of the Liza oilfield off the coast of Guyana, approving a megaproject at a time when the oil industry has grown obsessed with lower-cost shale. Exxon's decision shows that oil companies remain interested in large projects, especially offshore, even in an era of belt-tightening after two years of low crude prices. The Guyana announcement from Exxon and partners Hess Corp and CNOOC was the fifth deepwater project to gain approvals this year. BP Plc and Reliance Industries said on Thursday they would spend $6 billion to develop natural gas reserves off the Indian coast.
Frontline Expects VLCC Storage Play to Rise
Tanker firm Frontline, controlled by billionaire investor John Fredriksen, expects a growing number of supertankers to be used for storing crude in anticipation of higher oil prices, its chief executive told Reuters on Friday. While none of Frontline's own vessels are currently used for this purpose, independent shipbrokers estimate that around 10 of the world's very large crude carriers (VLCCs) have recently been contracted for oil storage. "It sounds correct, and the number is rising," Frontline Chief Executive Officer Robert Macleod said. "It's always an option," he added.
Mercuria, PetroChina Selling Offshore Stored Fuel Oil
Three to four tankers storing fuel oil, down from eight or nine. Independent trading house Mercuria and Chinese state oil giant PetroChina are selling fuel oil stored in vessels off Singapore and southern Malaysia on strong demand from the shipping and power sector, several trade sources said on Friday. The number of vessels storing fuel oil has halved from a month ago as Mercuria and PetroChina may have resold cargoes purchased over March to May, the sources said. Geneva-based…
Asia Tankers-VLCC Rates Plateau, Could Edge Higher
Floating storage, West Africa cargoes support rates; further storage charters may push rates to W60. Freight rates for very large crude carriers (VLCCs), which were supported this week by a shift to using older vessels for floating oil storage, have plateaued at current levels but could nudge higher on further storage plays, brokers said on Friday. Rates from the Middle East to Asia are currently around 50 on the Worldscale measure and W55 from West Africa to Asia depending on vessel age and actual destination, brokers said.
LR Verifies BP FPSO Glen Lyon
The Glen Lyon floating production storage and offloading (FPSO) vessel, BP’s newest North Sea asset, was awarded full-term classification certificates for service in the Schiehallion and Loyal fields, 175 km west of Shetland. Conditions west of Shetland are among the most severe in the UK and Glen Lyon must be capable of operating in extreme weather. Classification means the Glen Lyon FPSO has been verified for operation to the highest levels of safety and performance by LR. Glen Lyon is the world’s largest harsh water FPSO and formed part of BP’s multi-billion-pound Quad 204 project.
Statoil Aims To Triple Production in Brazil By 2030
Norwegian integrated energy player Statoil ASA intends to more than triple its oil and gas production in Brazil by 2030, reports Reuters. Statoil has also approved the Peregrino phase 2 development, which is expected to add 250 million barrels of reserves at a break-even price of below $45 a barrel, down from an original estimate of $70 a barrel. Statoil invested about $10 billion in Brazil and is currently the largest foreign offshore operator in the country. The company operates the Peregrino field in the Campos Basin offshore Brazil with a 60% stake.
Singapore May Marine Fuel Sales Fall
The port of Singapore recorded its first year-on-year decline in bunker sales of 2017 during the month of May, according to preliminary estimates released by the Maritime and Port Authority of Singapore (MPA). According to Reuters report, Sale of marine fuels in Singapore in May fell to 4.181 million tonnes, down 4.2 percent from the same period last year, the second lowest monthly sale by volumes this year. The May volumes were also down 1.7 percent from April, the data showed. The last time monthly sales were lower this year was in February.
TechnipFMC & the Future of 'Super-profit Oil'
TechnipFMC’s Andersen discusses the way forward now that “super-profit oil” is over. Ann Kristen Andersen heads up oilfield projects as offshore services and equipment supplier TechnipFMC’s managing director for Norway and Russia. She started her job on the first day of February 2017, a month after a merger that changed the company and has already partly changed an industry beginning to ramp up activity with the oil price buoyant at $55 per barrel. How has the merger that created TechnipFMC — which answered calls for lower offshore costs in tough times — changed the way you do things?
Egina FPSO to Arrive in Nigeria
On a recent visit to South Korea to inspect the Egina FPSO project, and FPSO scheduled to arrive in Nigeria in August 2017, Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dakuku Peterside said the ongoing construction of the multi-billion dollar Egina Floating Production Storage and Offloading (FPSO) project will increase the knowledge base of NIMASA as a safety administration and enhance its regulatory capacity. He made the statement during a meeting with the Samsung Executive Vice President Younsang Won…
Oil Supply Growth to Outpace Rise in Consumption in 2018
Growth in oil supply next year is expected to outpace an anticipated pick-up in demand that will push global consumption above 100 million barrels per day (bpd) for the first time, the International Energy Agency said on Wednesday. The Paris-based IEA said production outside the Organization of the Petroleum Exporting Countries would grow twice as quickly in 2018 as it will do this year, when OPEC and 11 partner nations have restrained output. "For total non-OPEC production, we expect production to grow by 700…
Asian Crude Storage Trend Impacts OPEC Cuts
Current markets make it profitable to store oil for future sale; many tankers sitting around Singapore storing oil. A 10-percent decline in oil prices since late May could push traders to keep crude in storage, looking to sell down the line when forward prices are higher. That would undermine the impact of supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC), which partly aimed to force traders holding oil in storage to sell to reduce bloated inventories that have sapped global prices .
BP in Talks with Sirius for Ororo Offtake
Nigeria's Sirius Petroleum has said that it is in talks with BP, regarding an offtake and pre-payment facility to support the financing of Sirius's proposed drilling programme on the Ororo field in Nigeria. According to the company, the discussion involves an offtake and pre-payment facility to support the financing of its planned drilling programme on the field. “Discussions with BP, and other parties regarding financing, are ongoing and there can be no certainty that Sirius will reach an agreement with BP regarding the proposed offtake and pre-payment,” it confirmed.
Petrobras Says Platform Fire Briefly Halted Production
A fire on a platform belonging to Brazilian state oil giant Petroleo Brasileiro SA briefly halted oil and gas production late on Sunday, the company said, adding that there had been no injuries or damage. The fire occurred in the Marlim field around 10:30 p.m. local time on Sunday and was put out four minutes later. Petrobras said on Monday that the accident may have been caused by a leak and would be investigated. An explosion on Friday on the NS-32 drillship, operated by Odebrecht Oil and Gas for Petrobas and also located in the Marlim field, killed three workers. (Reporting by Marta Nogueira; Editing by Paul Simao)
Hodge to Lead Pirie & Smith’s DP Division
Pirie & Smith, marine consultants and surveyors to the marine and energy sectors, has appointed Russell Hodge to head up its new Dynamic Positioning (DP) Engineering and Assurance Division. Hodge, who has more than 30 years’ experience on a global level, joins the company as Dynamic Positioning Technical Authority. He is an expert in the fields of DP, failure mode and effect analysis, DP trials and audits, accident investigation and the design of shipboard power and control systems.
Petrobras Reports Explosion on Drill Ship
Brazil's state-controlled oil company Petroleo Brasileiro SA on Friday reported an explosion on the NS 32 drill ship, which is operated by Odebrecht Óleo e Gás, a unit of Odebrecht SA, according to a statement. The explosion wounded four people, three of them with burns and one with mild injuries, according to the statement. There was no subsequent fire after the blast in the Marlim field, Campos basin, and the drill ship is in safe condition, said Petrobras, adding it will investigate the causes of the accident. (Reporting by Marta Nogueira; Writing by Ana Mano)
Iran Raises Oil Exports to West, Almost on Par with Asia
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, Western nations halted imports, halving Iran's overall exports to as little as one million barrels per day (bpd).
Asia Tankers-VLCC Rates Await Market Pointers
Gulf tensions fail to ignite VLCC market; owners waiting for July MidEast cargoes that could buoy rates. Freight rates for very large crude carriers (VLCCs) face an uncertain week, possibly coming under pressure from a dearth of new Middle East cargoes but they could also find support from geopolitical tensions over Qatar, brokers said on Friday. There is also continuing unpredictability over whether tankers could co-load Qatari crude with other grades and the impact on future trading activities if tankers did load Qatar crude. "No one is really sure what is going on.
Oil's Price Fall Stalls Despite Supply Glut
Brent down 12 pct since OPEC-led production cut extension. Oil prices steadied on Friday after steep falls earlier in the week under pressure from widespread evidence of a fuel glut despite efforts led by OPEC to tighten the market. Brent crude oil was up 10 cents at $47.96 a barrel by 1130 GMT, but still 12 percent below its opening level on May 25, when an OPEC promise to restrict production was extended into 2018. U.S. crude was 10 cents higher at $45.74. The Organization of…
GoodFuels Launches Sustainable Drop-in Marine Fuels Pilot
Heineken Netherlands, Nedcargo and sustainable fuel market-leader GoodFuels have launched a pilot to demonstrate a sustainable drop-in marine fuel on-board of the ‘For Ever’ – an inland barge dedicated to transport Heineken export beer, from the Heineken brewery in Zoeterwoude to the deep-sea terminals in Rotterdam. The advanced marine fuel supplied by GoodFuels contains 30% biofuel and thereby reduces CO2-emissions by more than 25%, whilst also sharply reducing local emissions as nitrogen and particulate matter.
GTT to Equip Samsung-built FLNG
GTT said it has received an order from Samsung Heavy Industries (SHI) to equip a new Floating Liquefied Natural Gas unit (FLNG), reportedly the second biggest in the world. The new FLNG, with a capacity of 238,700 m3, will integrate eight LNG tanks equipped with the Mark III membrane containment system. The unit will be built at SHI Shipyard, based in South Korea, on behalf of the Oil and Gas company ENI (Eni East Africa SpA) and its delivery is scheduled in 2021. This FLNG will be operated off the cost of Mozambique. In addition to this new order, the GTT membrane technology has been selected to equip the three FLNGs already ordered in the world. These units are being equipped with the NO96 system as well as the Mark III system.
Craig Joins Teekay Offshore Board
Teekay Offshore Partners L.P. announced that Ian Craig has accepted an invitation to join Teekay Offshore's Board of Directors, effective June 6, 2017. Craig has served in various executive positions in Shell, most recently in Nigeria where he was Executive Vice President for Sub-Saharan Africa, and in Russia where he was CEO of Sakhalin Energy, an incorporated joint venture of Gazprom, Shell, Mitsui and Mitsubishi. Prior to that, Craig was a Board member and Technical Director of Enterprise Oil plc until its acquisition by Shell in 2002. He had earlier held executive and management positions with other exploration and production (E&P) companies including Sun Oil and BP.
Shell Diverts U.S. LNG Cargo to Dubai
Royal Dutch Shell has sent a replacement cargo of liquefied natural gas (LNG) from the United States to Dubai, shipping data shows, after a diplomatic row disrupted typical trade routes from Qatar. Shell has a deal to supply the Dubai Supply Authority (DUSUP) with LNG which it typically sources from Qatar because of its proximity. But bans on Qatari vessels entering ports in the United Arab Emirates, imposed after top Arab powers severed diplomatic and transport links with Qatar on Monday, meant it had to source the LNG from elsewhere.
Shell Lifts 'force majeure' for Forcados Liftings
Royal Dutch Shell lifted force majeure on exports of Nigeria's Forcados crude oil, a spokeswoman said on Wednesday. The grade, which typically exports 200,000-240,000 barrels per day (bpd) had been under force majeure since February 2016 following a militant attack on the main export route, the Trans Forcados Pipeline. Last week Shell issued a loading programme for June exports that lifted planned exports from Nigeria to at least a 15-month high. Reporting by Libby George
Tankers Load Qatari Crude as Crisis Eases
Two VLCCs co-load Qatari, Abu Dhabi grades; impact of shipping restriction less severe than expected. Exports of Qatari crude oil have not been hindered by a port ban imposed by other Gulf states as tankers are loading Qatari grades along with cargoes from the United Arab Emirate, shipping data in Thomson Reuters Eikon showed on Wednesday. Two Very Large Crude Carriers (VLCC), which can each carry up to 2 million barrels of oil, successfully loaded Abu Dhabi grades on Wednesday…
Qatar LNG Not Affected by Arab States Tension -Exxon
Exxon Mobil Corp said on Tuesday that production and exports of liquefied natural gas from Qatar have not been affected by rising diplomatic tensions in the Middle East. Saudi Arabia, the United Arab Emirates, Bahrain and Egypt on Monday cut ties with Qatar, accusing the country of supporting extremism. Qatar denies the allegations. The growing diplomatic rift has raised concerns about global access to Qatar's LNG, especially after some regional ports in the Persian Gulf said they would not accept Qatari-flagged vessels. Commodities traders have grown concerned Qatar's LNG could be barred from Saudi Arabia or from traversing Egypt's Suez Canal, though so far no limitations have been imposed.
Meek Named IMCA President
Harke Jan Meek, chief commercial officer at Heerema Marine Contractors, has been named the new president and chairman of the board of the International Marine Contractors Association (IMCA). Meek succeeds Bruno Faure (TechnipFMC), who has stepped down as president of IMCA after completing his two-year term of office, in accordance with the association’s constitution. Faure remains on the board of the association. Iain Grainger, vice president commercial at McDermott International Inc. becomes the new IMCA vice president.
Oil Slips on Mideast Rift Worries
Group of Arab states cuts all ties with Qatar; tankers going to/from Qatar barred from Fujairah port. Oil prices slipped further below $50 a barrel on Tuesday on concerns that a diplomatic rift between Qatar and several Arab states including Saudi Arabia could undermine efforts by OPEC to tighten the market. Benchmark Brent crude oil was 10 cents a barrel lower at $49.37 by 1110 GMT, down around 8 percent from the open of futures trading on May 25, when an OPEC-led policy to cut oil output was extended into the first quarter of 2018. U.S. light crude was down 10 cents at $47.30.
Global Marine Group Keeping Busy in 2017
Offshore engineering firm the Global Marine Group (GMG) reported a busy first five months of 2017 with a strong outlook for the rest of the year. The company said all key assets from the GMG fleet are currently mobilized, either supporting maintenance zone agreements around the world, or on installation, maintenance or repair contracts. “As we head into the summer months, we are extremely pleased about our robust activity level, which we feel is a reflection of our high performance standards…
Battery Pioneers AKASOL , ZEM Set Sail Together
The German expert for lithium-ion battery systems AKASOL and the Norwegian pioneer of maritime energy storage solutions ZEM have worked together on the development of AKAZEM. The result is a unique autonomous IP 67 compliant liquid cooled modular system that can be combined in a “lego-like” fashion to meet smaller vessels’ space and power requirements up to a 2C power range at costs that opens many new applications. The first joint product, AKAZEM 15 OEM, is a self-contained modular battery unit specifically designed for work boats in the aquaculture industry…
BW Offshore CEO Sees Signs of Recovery
BW Offshore, which delivers floating production services to the oil and gas industry, sees signs of an improved market. "It's still early days but we definitely see a pick-up in discussions and tendering activity," CEO Carl Arnet said during the firm's first-quarter earnings presentation. Says Brazil will be important but also sees activity elsewhere. BW Offshore reported Q1 earnings below forecast on Monday. Regarding the FPSO Cidade de Sao Mateus, which has been off work since an explosion in February 2015: Insurance settlement gave a positive liquidity effect in Q1.
Baltic Index Continues Slide Across All Segments
The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Friday for the 14th straight session as rates across vessel segments continued to slide. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, was down 20 points, or 2.35 percent, at 830 points - its lowest level since Feb. 22. The capesize index lost 56 points, or 3.92 percent, at 1,374 points. Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $410 at $9,965.
VLCC Rates Steady Ahead of Possible Rebound
Five/six charterers are making storage inquiries; near-term pressure on tanker rates to continue - Frontline CEO. Freight rates for very large crude carriers (VLCCs) are set to hold around the current levels ahead of a possible bounce later this month on renewed crude buying from China, and more interest from charterers taking ships on short-term charter for floating storage, brokers said on Friday. That came as VLCC rates from the Middle East recovered slightly on Thursday from a near two-month low hit on Wednesday.
FPSO to Achieve First Oil from Libra Field in July
Teekay informs that the FPSO Pioneiro de Libra arrived May 17 in Brazilian territorial waters. The FPSO unit, owned through a 50/50 joint venture between Odebrecht Oil & Gas and Teekay Offshore, will be the first to produce oil in the Libra Block which covers more than 1,500 square kilometers in the Santos Basin and has estimated reserves of 8-12 billion barrels of recoverable oil. The first oil is scheduled for July. The unit can operate at water depths of up to 2,400 meters…
PA Pipeline Spat Could Upend International Oil Flows
Refiners from the Midwest United States are fighting for access to a vital Pennsylvania pipeline – a move that could cripple their East Coast competitors and redraw the map for international flows of crude and fuel into coveted coastal markets. The regulatory dispute centers on a proposal by pipeline operator Buckeye Partners’ to that state's Public Utilities Commission. The plan would reverse the flow of fuels on a section of Buckeye’s 350-mile Laurel Pipeline, which currently flows from the East Coast to Pittsburgh.
DNV GL Offshore Wind Standard for China
DNV GL is part of the consortium selected by the World Bank to support the development of 3 new standards in offshore wind turbine support structures, offshore substations, offshore wind farm power cables. DNV GL will also be advising the Chinese government on project financing and risk management as part of this project. “Offshore Wind is a very demanding technology. Standards are crucial to minimize the risks to acceptable and bankable levels, and learning from the international experience as this mandate is supporting…
Eni LNG Seal Raises Hopes of Mozambique Gas Boom
Italian energy company Eni signed a deal on Thursday to develop a huge gas field offshore Mozambique, the first of a series of projects that could transform the poor African nation into a major energy supplier to Asia. The Coral South field, discovered in May 2012, is within Area 4 of the Rovuma Basin and contains approximately 450 billion cubic meters (16 TCF) of gas in place. (Reporting by Manuel Mucari; Writing by Nqobile Dludla; Editing by Edmund Blair)
LNG Sellers, Asian Buyers Spar Over Contract Terms
A spat brewing between Qatar, the world's No.1 producer of liquefied natural gas (LNG), and its biggest customers in Japan underscores rising tensions between buyers and sellers of the super-chilled fuel as a supply glut unbalances the market. Importers of LNG having been pushing for greater benefits amid the surplus, signing new, cheaper contracts that give them more flexible terms, while exporters try to preserve long-term supply deals written in their favour during tighter markets.
Baltic Index Hits 14-Week Low
The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, dropped on Thursday to its lowest level in 14 weeks on falling rates across vessel segments. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, was down 28 points, or 3.19 percent, at 850 points - its lowest level since Feb. 23. The capesize index lost 81 points, or 5.36 percent, to end at 1,430 points. Average daily earnings for capesizes…
PBES Unveils Enhanced Marine Battery Systems
Plan B Energy Storage (PBES) has announced a revolutionary new solution for enhancing the lifecycle benefits of marine battery systems. ‘CellSwap’ uses a new cost-effective method of retrofitting battery systems by replacing battery cells while leaving the rest of the installation intact. The process, called ‘re-coring’, saves up to 60 per cent of the costs of installing a new battery after a five year cycle, greatly enhancing lifecycle value. CellSwap is a marine industry first that takes a ‘serviceable’ approach to battery components.
Marubeni Becomes SEA\LNG Member
SEA\LNG, the multi-sector industry coalition aiming to accelerate the widespread adoption of liquefied natural gas (LNG) as a marine fuel, has welcomed Japan-based Marubeni to its expanding membership. With the addition of Marubeni, the SEA\LNG coalition bolsters its efforts to drive forward LNG as a marine fuel, and to progress its vital role as a viable solution in the energy transition within shipping. Since its launch in July 2016, SEA\LNG’s membership has quickly grown from 13 to 25 members…
Maritime Security in Western Indian Ocean
The key International Maritime Organization (IMO) instrument helping to repress piracy and armed robbery against ships in the Western Indian Ocean and the Gulf of Aden – the Djibouti Code of Conduct – is part of discussions at an international conference in Morocco. The West African Coastal Surveillance and Maritime Security Summit 2017 (AFSEC 17), being held in Casablanca (30 May – 1 June) has heard IMO’s Chris Trelawny present the latest developments of the Code, which is part of IMO’s on-going maritime security work. Mr.
Seacat to Support Siemens Gamesa at Galloper
Seacat Services, and Siemens Gamesa Renewable Energy (Siemens Gamesa), have signed a two-year charter deal to support early Operations & Maintenance (O&M) activity at the 336MW Galloper Wind Farm. Seacat Services is an offshore energy support vessel (OESV) operator and Siemens Gamesa is a global offshore wind manufacturer and service provider. Having secured the 56-turbine supply deal for the multi-million pound project, currently under construction by innogy SE, Siemens Gamesa is now supporting the wind farm as it moves into the operational phase…
DNV GL Releases New Guidelines for Submarine Pipelines
Depending on the interaction between the pipe and soil, submarine pipelines, both exposed and buried, may be subject to severe displacements and impaired pipeline integrity. Soil characterization and pipe-soil interaction assessment are therefore important parts of any pipeline project. DNV GL now launches a new recommended practice (RP), DNVGL-RP-F114 ‘Pipe-soil interaction for submarine pipelines’, solely dedicated to the interaction between the pipeline and the soil. Pipe-soil…
Kotug Aids Allseas in Topsides Transport
Kotug International’s offshore division has assisted Allseas with the transfer and transport of Shell’s Brent Delta topsides after the record-setting removal of the structure by Pioneering Spirit. Kotug was mainly involved in the assistance of the cargo barge Iron Lady during the transfer of the topsides from the Pioneering Spirit to the Iron Lady and the ensuing tow of the barge to the Able UK decommissioning yard in Teesside, Northeast England. After the Pioneering Spirit lifted the Brent Delta platform…
Framo Delivers Pumping Systems to Höegh LNG
Framo has signed a contract with Höegh LNG for the delivery of pumping systems to their new Floating Storage Regasification Unit (FSRU). The contract is for one unit, with option for three more units which are currently being built at Samsung Heavy Industries in Korea. FSRU is a floating processing and terminal facility used when it is not profitable, or for other reasons not practical, to develop onshore terminals. By using an on-board regasification unit, the liquid gas carried by the LNG tanker is converted to gas prior to being brought ashore.
LNG: New Milestone for MAN Rollo
MAN Rollo will provide the crane vessel Werkendam with three LNG generator sets. International marine and offshore contractor Van Oord is currently building the ship at Neptune Shipyards in Hardinxveld-Giessendam. It is the first LNG powered vessel for both the yard and Van Oord. Engine supplier MAN Rollo is a pioneer when it comes to sustainable propulsion. Karel Schuurman, Sales Manager Marine Engines at MAN Rollo says, "We want to make a difference in the market for environmentally friendly applications.
MOL Mulls LNG Power Generation on Ships
Mitsui O.S.K. Lines (MOL) is exploring the possibilities to generate power from liquefied natural gas (LNG) aboard ships as a low-cost, environmentally friendly alternative to land-based plants. According to a report on Nikkei, MOL is looking to supply LNG to ship-based power generators to create electricity, delivering this to shore using underwater cables. This is a cheaper alternative to building shore-based power plants and could have particular appeal in emerging markets, Nikkei says. Compared with power plants on land, site acquisition and other initial costs can be kept low.
Energean Signs First Deal to Supply Gas to Israel
Greek developer Energean Oil & Gas has secured its first gas supply deals for Israel's Karish and Tanin reservoirs, Reuters reported. The deals were signed with Dalia Power, which operates Israel's largest private power station, and Or Power, which is planning to build new power plants, Energean said in a statement. The two firms will be purchasing an overall amount of up to 23 billion cubic meters (bcm) of gas to operate the Dalia power plant – Israel's largest private power station – as well as future such facilities to be built by Or, the partners announced on Sunday.
DNV GL Launches LNG Fuel Finder
Just in time for Nor-Shipping, DNV GL will launch the LNG Fuel Finder - a new tool on its LNG business intelligence portal LNGi. The new LNG Fuel Finder service will allow shipowners and charterers to register their interest in using LNG as a ship fuel free of charge, connecting them directly with LNG suppliers. DNV GL has also introduced the option of signing up to a new lean version, where interested parties can access some of LNGi’s services and data free of charge. The question…
IMO Workshops on Fouling
Biofouling – the build-up of aquatic organisms on a ship’s underwater hull and structures – was again on the agenda at the latest in a series of International Maritime Organization (IMO) workshops. The regional workshop in Accra, Ghana (24-26 May) was attended by participants from nine countries (Cabo Verde, Equatorial Guinea, Gambia, Ghana, Guinea Bissau, Liberia, Nigeria, Sao Tome & Principe and Sierra Leone). Participants gained a greater understanding of the requirements and implications of ratifying, implementing and enforcing the anti-fouling systems (AFS) convention and implementing biofouling guidelines. The AFS convention regulates anti-fouling systems in order to prevent adverse impacts from the use of anti-fouling systems and the biocides they may contain.
LUKOIL Marine Cylinder Oil Approved by MAN and WinGD
Ready for the 2020 sulphur cap? There is a big change in fuels ahead of us and the fuel suppliers are busy looking into several options. However, regardless of whether de-sulphurisation, MGO or distillate blends or any predominantly hydrocarbon blend with a maximum of 0.5 percent sulphur content or a 0.1 percent limit in ECA - “We are ready,” said Stefan Claussen, Technical and Marketing Director of LUKOIL Marine Lubricants. In order to offer the best possible lubricant solutions in the years leading up to 2020 and beyond…
Global Maritime Makes Two Hires in Asia Pacific
Global Maritime, a provider of marine warranty, dynamic positioning and engineering services to the offshore sector, has made two important hires to support its Asia Pacific (APAC) operations. Mei Ling Chan has been appointed as Regional Finance Manager for APAC where she will take responsibility for finance functions and reporting across the region; and Leong Weng Yoon has been named Global Maritime’s new HSEQ Manager for APAC. Leong Weng Yoon’s appointment reaffirms Global Maritime’s commitment to the highest health, safety, environmental and quality standards across its operations.
Urals Oil Exports From Baltic Ports to Fall in June
Russia's June Urals crude exports from the Baltic Sea ports are expected to fall by 15 percent compared with May on a daily basis to 5.51 million tonnes, a preliminary loading plan seen by Reuters showed on Thursday. Crude loadings from the port of Primorsk were set to fall by 30 percent to 2.71 million tonnes due to planned works on Baltic pipeline system. Supplies from the neighbouring Ust-Luga port are set at 2.8 million tonnes, up 100,000 tonnes from the May loading plan.
Baltic Index Falls to Lowest Since Early March
The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, on Thursday fell to its lowest since early March as demand slowed across all vessel segments. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, was down 16 points, or 1.71 percent, at 918 points. The capesize index lost 59 points, or 3.57 percent, at 1,595 points. Average daily earnings for capesizes, which typically transport 150,000-tonne cargo such as iron ore and coal, were down $427 to $11,750.
U.S. Freight Recovery Spurs Diesel Demand
U.S. freight movements have started increasing again, which should help boost consumption of distillate fuel oil in 2017 and 2018. The tonnage of freight moved by road, rail, barge, pipeline and air cargo has been increasing year on year since October, after stagnating for much of 2015/16 (http://tmsnrt.rs/2qSDLAJ). Freight movements hit a new record in February, before slipping slightly in March, according to the U.S. Bureau of Transportation Statistics (http://tmsnrt.rs/2rTVx58). Most freight is hauled by equipment that uses diesel engines, or jet turbines in the case of air cargo.
Hazard Map to Supplement 'Capt.'s DOSCA'
Mitsui O.S.K. Lines will add a hazard map to the Captain's Dynamic Operation System for Counter planning and Analysis (Capt.'s DOSCA), which is provided by Weathernews, and used onboard MOL ships when they are underway. MOL already uses the system on many of its operated vessels. The content of the hazard map includes past incidents involving operated vessel incidents with the objective to uphold lessons it has learned, incident information of other shipping companies' vessels with the objective of highlighting lessons learned and preventing similar occurrences…
A Flexible Workforce is Crucial Offshore
WRS CEO Mark Brown investigates the importance of marine and ship management companies’ utilization of a more flexible workforce. As offshore-focused businesses weather the unprecedented industry downturn, many companies servicing the sector are looking for ways to more efficiently manage costs in order to survive. Since the oil price started to contract in June 2014, radical cost reductions across all upstream businesses began in earnest as capital expenditures were slashed by 40 percent in the period up to 2016 (PWC).
Petrobras Sees Higher Oil Exports as Presalt Fields Develop
Brazilian government-controlled Petroleo Brasileiro SA expects higher oil exports this year than initial projections, Guilherme França, executive manager of trade and marketing, said Wednesday. Petrobras expects oil exports to reach 742,000 bpd by 2021 as the company advances development of its pre-salt oil reserves, which are capable of producing lighter varieties which are demanded internationally, França said. In March, França told Reuters in an interview that the company's oil exports would reach 450,000 bpd this year. That estimate has now been revised to 503,000 bpd, according to the executive. China is the company's main client, accounting for 56 percent of Petrobras's exports in the first quarter.
Seadrill Names Dibowitz CEO
Oslo-listed rig firm Seadrill named a new chief executive from within its own ranks on Wednesday and said its talks to restructure $14 billion of debt and liabilities had reached an advanced stage. Once the world's most valuable rig firm, Seadrill's business was hard hit when oil companies sharply cut investments and exploration in the wake of a 2014 crash in oil prices. Anton Dibowitz, current chief commercial officer, will take the top job from July 1, succeeding Per Wullf who will remain a board director, the company said. Dibowitz, a U.S. citizen, joined the company 10 years ago.
GE Completes HAZID Meetings for World’s First LPG-Fueled Ferry
GE’s Marine Solutions reports that the world’s first Liquid Propane Gas (LPG)-fueled ferry design to use GE’s COmbined Gas turbine Electric and Steam (COGES) system has successfully completed Hazard Identification (HAZID) meetings. The consortium of Youngsung Global, DINTEC, Korea LPG Industry Association, GE’s Marine Solutions and Far East Ship Design & Engineering Co. (FESDEC) signed a multilateral memorandum of understanding in November 2016 to cooperate on this unique ferry design.
Italian Maritime Robotics Expert Bags DNV GL Award
Marco Bibuli was announced as the winner of the DNV GL COMPIT Award 2017 for smart underwater robotics, which took place in Cardiff this year. The Italian maritime robotics expert, working at the Italian research center CNR-ISSIA in Genova, was honored for his work on team-capable smart robots. “The jury singled out Marco Bibuli, because his work brought advanced techniques of Artificial Intelligence to practical applications, representing innovative engineering at its finest.
Should OPEC Worry About Contango and Backwardation?
"Backwardation is the solution" to OPEC's problem of how to raise output and revenues without sparking another shale boom, according to the influential oil research team at Goldman Sachs. Backwardation would allow low-cost oil producers in OPEC to sell their output at a higher price linked to the spot market while curbing growth from shale firms that sell at prices linked to the forward curve. Goldman's strategy aims to "share growth" between OPEC and shale firms to avoid another repeat of boom and bust in oil prices ("Backwardation is the solution", Goldman Sachs, May 22). The plan exploits differences in pricing behaviour between low-cost producers in OPEC that do not hedge and higher-cost shale drillers that hedge a substantial portion of their output.
Norway Oil Ministry: No Plan to Cut Output
Norway has no plans to cut its oil output, the country's oil and energy ministry said on Tuesday. "The Ministry has a good dialogue with other countries about the oil market. We are not in a situation in which regulating production is on the agenda for Norway," the ministry said in a statement. Kuwait's oil minister said earlier on Tuesday that Saudi Arabia's oil minister had spoken to countries including Norway, Turkmenistan and Egypt which had signalled a willingness to join oil output cuts. (Reporting by Nerijus Adomaitis, editing by Gwladys Fouche)
OPEC Set to Prolong Oil Cuts
OPEC will likely agree to extend production cuts for another nine months, delegates said on Tuesday as the oil producer group meets this week to debate how to tackle a global glut of crude. OPEC's de facto leader, Saudi Arabia, favours extending the output curbs by nine months rather than the initially planned six months, as it seeks to speed up market rebalancing and prevent oil prices from sliding back below $50 per barrel. On Monday, Saudi Energy Minister Khalid al-Falih won support from OPEC's second-biggest and fastest-growing producer…
DNV GL Rolls Out Forecasting Platform
DNV GL has announced its launch of Forecaster NOW, the industry’s first forecast on-demand web portal with e-commerce enabled transactions. Forecaster NOW is part of a suite of DNV GL subscription-based short-term forecasting services which also includes: Forecaster Live, Forecaster Plus and Forecaster Solutions. “Power grids and markets will continue their rapid transformation to a low carbon system,” said Craig Collier, head of forecasting for the Americas at DNV GL. Forecaster NOW provides users with on-demand forecasts of select power markets with hourly resolution to seven days.
Angelle Named BSEE Director
Former Louisiana state official Scott A. Angelle will head-up the U.S. Bureau of Safety and Environmental Enforcement (BSEE). Angelle, who most recently served as Vice Chairman of the Louisiana Public Service Commission, will assume his new position May 23. “Scott Angelle brings a wealth of experience to BSEE, having spent many years working for the safe and efficient energy production of both Louisiana’s and our country’s offshore resources,” Secretary of the Interior Ryan Zinke said.
With New Project, BP Breathes Life into North Sea
BP has started production at an oilfield in the North Sea after a $5.7 billion redevelopment, one of the largest such projects there in recent years that will breathe new life into the ageing offshore basin. The Quad 204 project in the western Shetland region, also knows as Schiehallion, is expected to ramp up production throughout 2017 to reach a level of 130,000 barrels per day, BP said in a statement. The Schiehallion field was first developed in the mid-1990s. The 4.4 billion pound project, which was sanctioned in 2011, will unlock an estimated 450 million barrels of oil and gas, extending its life into 2035. The upgrade includes the construction of a giant floating…
Solstad CSV Serviced ahead of Australian Deployment
Gibraltar shipyard Gibdock said a surge in offshore vessel repair and maintenance work has included a special project for Norwegian offshore vessel owner and operator Solstad, to ensure that Normand Reach meets the hull cleanliness standards set by Australia’s National Biofouling Management Guidelines for commercial vessels. The 120.85-meter-long Solstad CSV entered the yard for a special wash and brush up on its way to Western Australia, where it has been reported as due to enter charter in the coming weeks to work in the Ichthys gas field development project.
Statoil's Digitalization Drive
Statoil is establishing a digital center of excellence and launching a roadmap with seven specific programs for digitalization in the company towards 2020. Towards 2020 Statoil expects to invest $120 to $240 million in new digital technologies, accelerating the digital roadmap work. Digital technologies will also be part of other Statoil technology and research projects. “Aiming to be a global digital leader within our core areas, we are now stepping up our efforts to capture opportunities provided by the rapid development within digital technologies,” said Eldar Sætre, Statoil’s CEO.
Pacific Radiance, Allianz JV in Middle East
Crest Offshore Marine (COM), the wholly owned subsidiary of Pacific Radiance, has entered into a Joint Venture (JV) Agreement with Allianz Offshore Middle East (AOME). According to JV agreement, both companies are jointly incorporating a company in Singapore known as Allianz Radiance (ARPL). ARPL has been incorporated on the same date. AOME is a company incorporated in Saint Vincent and The Grenadines. Under the terms of the JV Agreement, COM and AOME respectively will hold 51% and 49% equity interest in ARPL, making ARPL as indirect subsidiary of the Company.
Columbia Shipmanagement Receives DNV GL Certification
DNV GL has confirmed that Columbia Shipmanagement complies with the highest standards in energy and safety management. Torsten Schramm, President at DNV GL – Maritime, recently presented the ISO certification for the standards ISO 50001:2011 and OHSAS 18001:2007 to Carsten Sommerhage, Director of Columbia Shipmanagement (Deutschland) GmbH, at the shipping company’s offices in Hamburg. “These certifications highlight our efforts to perform a systematic energy management as well as maintaining the highest levels of health and safety through our company.
MOL Rolls Out Refined PBCF
Mitsui O.S.K. Lines has announced that its group company MOL Techno-Trade will start selling an upgraded version of its energy-saving Propeller Boss Cap Fins (PBCF). MOL Techno-Trade has sold more than 3,100 PBCFs to ship owners all over the world. The new type of PBCF was jointly developed by MOL, Akishima Laboratories (Mitsui Zosen), and MOL Techno-Trade. The new design enhances propeller thrust and reduces torque thanks to refinements in fin shape and height. Tests of the new…
BOEM Offers Cook Inlet Blocks Offshore Alaska
The Bureau of Ocean Energy Management (BOEM) announced it will offer approximately 1.09 million acres off Alaska’s southcentral coast in a lease sale scheduled for June 21. Cook Inlet Oil & Gas Lease Sale 244 will offer 224 blocks toward the northern part of the federal Cook Inlet Planning Area for leasing. The blocks stretch roughly from Kalgin Island in the north to Augustine Island in the south. “We conducted a robust environmental analysis and look forward to holding Alaska’s first OCS lease sale since 2008,” said Dr. Walter Cruickshank, BOEM’s acting director.
Innovative Subsea Crane Ordered for RSV Conversion
Brazilian ship owning company CBO’s vessel CBO Manoella is currently being retrofitted from an offshore platform supply vessel (PSV) into a ROV Support Vessel (RSV). As part of the conversion project, CBO has assigned Rolls-Royce to equip the vessel with a new patented hybrid dual draglink (DDC) subsea crane, marking the first installation of a subsea crane designed to be able to use either fiber or steel wire rope. Marcelo Martins, CBO, Technical Director said, “This is one of two vessels CBO is now retrofitting from PSVs to RSVs…
China Threatened War If Philippines Drills for Oil -Duterte
Philippine President Rodrigo Duterte said on Friday Chinese counterpart China Xi Jinping had warned him there would be war if Manila tried to enforce an arbitration ruling and drill for oil in a disputed part of the South China Sea. In remarks that could infuriate China, Duterte hit back at domestic critics who said he has gone soft on Beijing by refusing to push it to comply with an award last year by the Permanent Court of Arbitration in The Hague, which ruled largely in favor of the Philippines. Duterte said he discussed it with Xi when the two met in Beijing on Monday, and got a firm, but friendly warning. "We intend to drill oil there…
POSCO Seeks June LNG Cargo via Tender
South Korea's POSCO is seeking a liquefied natural gas (LNG) cargo for delivery on June 26 to 30 via tender, trade sources with knowledge of the tender said on Friday. The tender will close on May 22, the sources added. (Reporting by Mark Tay; Editing by Christian Schmollinger)
Full Tanks & Tankers: A Stubborn Oil Glut Despite OPEC Cuts
After the first OPEC oil production cut in eight years took effect in January, oil traders from Houston to Singapore started emptying millions of barrels of crude from storage tanks. Investors hailed the drawdowns as the beginning of the end of a two-year supply glut - raising hopes for steadily rising per-barrel prices. It hasn't worked out that way. Now, many of those same storage tanks are filling back up or draining more slowly than investors and oil firms had expected, according…
VLCC Rates to Fall Further in Well-supplied Market
Freight rates for very large crude carriers (VLCCs) are set to slide further next week, falling below tanker break even costs on routes from the Middle East, as too many ships chase too few cargoes, brokers said on Friday. "In today's market Middle East charter rates are around $15,000 a day. Charter rates are still falling, still sliding. I'm not sure where the bottom is," a European supertanker broker said on Friday. Break even costs for a VLCC are around $22,000 a day, according to leading tanker owner Frontline.
The New Offshore Reality
Swedbank’s chief economist, Harald Andreassen, isn’t “too hopeful” about the long-term prospects for the oil price, but then again, “I’m less certain of this than I’ve ever been as an economist,” he told a floating production conference in Oslo. After two-and-half years of oil-price collapse followed by layoffs in the thousands; stacked oil rigs and order freezes for offshore shipping, price insecurity itself is a partial expression of confidence. Beneath some palpable yet halting movements toward recovery in 2017…
US Crude Sails to Asia as OPEC Weighs More Cuts
Oil tankers carrying around 10 million barrels of U.S. crude are en route to Asia, according to shipping data and trade sources, as U.S. producers take advantage of favorable prices to ship to the region while OPEC ponders further supply cuts next week. At least eight tankers are in transit, sources said and the shipping data in Thomson Reuters Eikon showed, with one of them carrying the first ever cargo of Southern Green Canyon crude purchased by Japanese refiner Cosmo Energy. Another contains the first Alaskan North Slope cargo to arrive in Asia in eight months.
Keppel on Track to Deliver Rig for Caspian Drilling
Keppel Offshore & Marine Ltd (Keppel O&M) through its subsidiary in Azerbaijan, Caspian Shipyard Company (CSC), is on track to deliver a semisubmersible drilling rig to Caspian Drilling Company Ltd, a subsidiary of the State Oil Company of Azerbaijan Republic (SOCAR). The rig was named Heydar Aliyev at a ceremony in Azerbaijan today by the President of Azerbaijan, Ilham Aliyev. Built to Keppel FELS' proprietary DSSTM 38M design, the rig has been customized for the Caspian Sea's harsh environment condition. It is the first modern semisubmersible to be almost completely built in Azerbaijan.