Lessees News

Recent changes have opened up the Capital Construction Fund program to owners and operators of vessels on the U.S. inland waterways.Among the programs offered by the U.S. Department of Transportation through the Maritime Administration (MARAD) to promote the growth and modernization of the U.S. maritime industry, the Capital Construction Fund (CCF) program is one that has remained largely unavailable to the owners and operators of vessels on the inland waterways—until now.Created by the Merchant Marine Act of 1936…

National Ocean Industries Association (NOIA) President Erik Milito has said that the Bureau of Ocean Energy Management (BOEM) issue of a Notice to Lessees (NTL) with recommended restrictions on ongoing industry activities within the expanded Rice's Whale habitat area imposes “unwarranted restrictions on U.S. energy production at a time of continued inflation with prices rising at the pump for consumers.”With likely fewer than 100 individuals remaining, Rice's whales are one of the most endangered whales in the world.

The U.S. administration on Wednesday proposed the first-ever offshore wind lease sale in the Gulf of Mexico, as part of the government's plan to spur offshore wind deployment beyond the East Coast.The proposed sale is part of the leasing path announced by Secretary Haaland in 2021 to meet the Biden-Harris administration’s goal to deploy 30 gigawatts (GW) of offshore wind energy capacity by 2030 and follows the Department’s approval of the nation's first two commercial-scale offshore wind projects.The Proposed Sale Notice (PSN) announced Wednesday includes a 102…

The U.S. will hold a wind energy auction for two lease areas offshore the Carolinas on May 11, the U.S. Department of the Interior said Friday, as the Bureau of Ocean Energy Management (BOEM) has completed its environmental review.The lease areas cover 110,091 acres in the Carolina Long Bay area that, if developed, could result in at least 1.3 gigawatts of offshore wind energy, enough to power nearly 500,000 homes, the Department of the Interior said."The Biden-Harris administration is committed to supporting a robust clean energy economy…

Now that the United States finally can envision steady winds blowing from the Atlantic Seaboard due to a pipeline of offshore wind farms on the horizon, the maritime industry can finally step up and earn some of the benefits. This includes shipbuilding, port construction, and worker training. This article reviews the key developments and forecasts the growth in maritime jobs.The federal and state governments share responsibility for developing offshore wind farms and bringing the wind into the power grid and…

Some positive market indicators could presage an investment revival in the U.S. Gulf of Mexico – and beyond. The good news, reported by Bloomberg, is that in the third quarter of 2016, the largest oil companies increased cash from operations by nearly $26 billion. This reflects a 67 percent increase from the previous quarter and more than twice the amount of the first quarter of 2016. Exxon Mobil, Royal Dutch Shell, Chevron, Total and BP indicated that the increase was due to lower spending, increased output and rising crude prices, although the numbers were still below last year’s numbers.

A new international accounting standard dealing with leases could have major implications for companies in the shipping and offshore maritime sectors, and particularly for time charterers, according to international accountant and shipping adviser Moore Stephens. The new standard, IFRS 16, is effective for periods beginning on or after January 1, 2019, although early adoption is allowed. It covers all leases, whether the company acts as a lessor or a lessee. Michael Simms, a partner in the shipping and transport group at Moore Stephens…

BSEE is providing updated guidance for the current and future hurricane seasons through a Notice to Lessees (NTL) released July 27, 2015. NTL 2015-G02 clarifies reporting requirements related to personnel evacuation, production curtailment, and shut-in activity. These reports are received and processed within BSEE’s hurricane response team and is required to help mitigate risks associated with hurricanes and tropical storms on the Outer Continental Shelf (OCS). Offshore oil and gas operators determine when to activate their severe weather plans for their drilling rigs and production platforms. Once activated, operators are required to report daily to BSEE’s hurricane response team.

The Bureau of Ocean Energy Management (BOEM) today issued an Advanced Notice of Proposed Rulemaking (ANPR) on Risk Management, Financial Assurance, and Loss Prevention to seek public input as it considers modernizing its risk management program and bonding regulations for offshore oil and gas operations on the Outer Continental Shelf. This first step initiates a dialogue about BOEM’s existing regulations, which are approximately 20 years old and have not kept pace with offshore infrastructure developments, including deepwater operations, current industry practices, and the growing costs of decommissioning. “We would like to work with industry and others to determine how to improve our regulatory regime to better align with the realities of aging offshore infrastructure…

The Bureau of Ocean Energy Management (BOEM) announced today the publication of its Final Rule to extend time requirements for submitting a Site Assessment Plan (SAP) or a General Activities Plan (GAP) for renewable energy development on the Outer Continental Shelf (OCS). Effective 30 days after Federal Register publication, all OCS renewable energy lessees and grantees will have 12 months from lease or grant issuance in which to submit a SAP or GAP. Previously, BOEM regulations required lessees and grantees to submit a SAP or a GAP either 60 days after BOEM determined there was no competitive interest in the lease or grant, or six months after the lease or grant was issued competitively. "Renewable energy is an important part of our nation's energy strategy," said BOEM Director Tommy P.

Container leasing company, Textainer Group Holdings Limited, say that their their fleet surpassed 3 million TEU representing a major milestone for the company as well as the industry. “We are very proud to be the first leasing company to reach 3 million TEU,” commented Philip K. Brewer, President and Chief Executive Officer of Textainer. “Reaching a fleet size of 3 million TEU confirms the confidence that our customers have placed in us since our founding almost 35 years ago.

It has been over three years since the tragic accident occurred aboard the Deepwater Horizon on April 20, 2010. The industry and the relevant federal agencies have done much to put in place improved safeguards to prevent such an accident – which left 11 dead and 17 injured – from happening again. Congress, on the other hand, has done little to intervene to force new requirements on either the federal government or industry. Meanwhile, energy-related work in the Gulf of Mexico is rapidly increasing and forecasts are that it will remain busy for the next few years.

FSL Trust, in its second quarter of 2013 financial report ending 30, June 2013, records a drop in revenue & a higher loss due mainly to default in lease payments for 2 crude oil tankers. During the quarter, the lessees of the Trust’s two crude oil tankers defaulted on their lease payments. Nevertheless, the Trust’s other 23 vessels were fully employed, generating revenue from long-term bareboat charters, time charters and pool employment. FSL Trust recorded an operating loss of US$1.0 million compared with an operating profit of US$4.0 million in the corresponding period last year. After taking into account net finance expenses, the Trust incurred a net loss of US$7.2 million in 2QFY13.

FSL Trust Management Pte. Ltd. (FSLTM), as trustee-manager of First Ship Lease Trust (FSL Trust), wishes to announce that the lessees of its two crude oil tankers, namely, Aqua and Action, have defaulted on their lease payments and FSLTM has demanded the redelivery of these vessels. The lessees are wholly-owned subsidiaries of Geden Holdings Ltd. FSLTM had been in restructuring discussions with Geden since the end of 2012. However, as of the date of this announcement, the lessees have failed to pay the agreed lease payments due for Aqua and Action. The obligations of the lessees are guaranteed by Geden pursuant to the deeds of guarantee.

FSL Trust Management Pte. Ltd. (FSLTM), as trustee-manager of First Ship Lease Trust, announced the financial results of FSL Trust for the quarter ended 31 March 2013. Revenue for 1QFY13 declined by 11.6% to $23.0 million (USD) compared to the corresponding quarter last year. In 1QFY13, all the trust’s vessels continued to generate revenue from their respective employments on bareboat charters and time charters as well as in the ‘Nordic Tankers 19,000 Stainless Steel Pool’ (Nordic Pool). On a bareboat charter/bareboat charter equivalent (BBCE) basis, revenue fell 4.0% to $19.9 million compared to 1QFY12. The rentals received from 20 vessels leased on long-term bareboat charters continued to support the overall earnings of FSL Trust.

Singapore’s First Ship Lease Trust (FSL) report US$ 8.4-million loss for 2012, revenue slipped 4.2%. Philip Clausius, CEO, said:  “2012 has been very challenging, but the trust’s disciplined approach and wide network have helped to deploy our spot vessels to longer term arrangements within a relatively short time frame. Mr. Philip Clausius, Chief Executive Officer of FSLTM said: “2012 has been very challenging, but the Trust’s disciplined approach and wide network have helped to deploy our spot vessels to longer term arrangements within a relatively short time frame. This has enhanced our revenue visibility and improved our operational profile. However, the prolonged crisis has taken a toll onmany shipping companies.

The Department of the Interior’s Bureau of Ocean Energy Management announced that its Western Gulf of Mexico Oil and Gas Lease Sale 218, held today in New Orleans, attracted $337,688,341 in high bids and included 20 companies submitting 241 bids on 191 tracts comprising over a million acres offshore Texas. The sum of all bids received totaled $712,725,998. This announcement is consistent with steps President Obama announced in May 2011 to expand domestic oil and gas production safely and responsibly. “Today’s lease sale, the first since the tragic events of Deepwater Horizon, continues the Obama administration’s commitment to a balanced and comprehensive energy plan,” said Secretary of the Interior Ken Salazar, who attended the sale and provided opening remarks.

The Bureau of Ocean Energy Management (BOEM) and the Bureau of Safety and Environmental Enforcement (BSEE) has issued guidance to oil and gas companies operating in the Gulf of Mexico Outer Continental Shelf (OCS) extending existing guidance on how to conduct archaeological resources surveys and prepare archaeological reports, and adding certain additional areas for examination based on new information about the likely location of historical resources. “There are more than 2,100 historic shipwrecks in the Federal waters of the Gulf of Mexico…

FSL Trust Management Pte. Ltd., as trustee-manager of First Ship Lease Trust reportes that it has sent notices to its lessees, wholly-owned subsidiaries of PT Berlian Laju Tanker Tbk, to demand for the redelivery of its three chemical tankers, Pertiwi, Prita Dewi and Pujawati, in accordance with the terms of the lease agreements between the Lessees and FSL Trust. This is in addition to the demand for payment stated in the notice of default issued to the Lessees on 7 February 2012.

Bureau of Safety and Environmental Enforcement Director James A. Watson delivered remarks today at the Offshore Technology Conference in Houston, Texas. Director Watson discussed recent recruitment incentives, BSEE's offshore safety focus and regulatory priorities. Good morning. Thank you for the opportunity to talk about the Bureau of Safety and Environmental Enforcement’s continued efforts to enhance safety offshore. This is my first time at OTC, and I have been extremely impressed by the scientific and technical know-how on display…

The Bureau of Ocean Energy Management (BOEM) announced that it has launched a new Web-based tool that provides oil and gas industry users with the ability to submit online requests for company, qualification, merger and bonding information for review and approval. Before a company can bid on, hold, or operate an oil and gas lease, it must submit certain information and documents to BOEM to establish that it is qualified to be a lessee. The Technical Information Management System (TIMS) Company and Bonding applications are Web-based programs that will help expedite the process. The Company processes within the system are comprised of Qualification, Qualification Update, Change of Name, Business Conversion and Merger.

The Bureau of Safety and Environmental Enforcement (“BSEE”) issued three significant documents addressing response, enforcement, and safety issues related to offshore operations in August 2012. Specifically, BSEE issued (1) new guidance concerning regional Oil Spill Response Plans (“OSRPs”), (2) formalized policy addressing direct enforcement actions against contractors engaged in offshore activities, and (3) a Final Rule implementing new safety measures related to well control operations occurring on the outer continental shelf (“OCS”). The following is a summary of these new developments.

Deploys all redelivered vessels on longer term employment. FSL Trust Management Pte. Ltd. (“FSLTM”), as trustee-manager of First Ship Lease Trust (“FSL Trust” or the “Trust”), has announced  the financial results of FSL Trust for the third quarter ended 30 September 2012 (“3QFY12”). In 3QFY12, FSL Trust successfully delivered its three chemical tankers into the ‘Nordic Siva’ pool as well as a second product tanker, FSL Hamburg, to Petròleo Brasileiro S.A. (“Petrobras”) for the commencement of her three-year time charter. Prior to their redeployment, these vessels were trading in the spot market where earnings were more volatile. Revenue declined 6.5% to US$26.7 million against the same period last year.