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Thursday, December 13, 2018

Low Oil News

5000th Ship Installed Inmarsat Fleet Xpress

Image: Inmarsat

The 5,000th ship installation of Inmarsat Fleet Xpress, the world’s only high-speed, globally-available Ka-band VSAT service designed for mobility and available from a single operator, is set to be completed by the close of the month.Following its launch in March 2016, Fleet Xpress has emerged as the market-leading pathway to digital transformation as shipping companies seek to deliver improved vessel and fleet efficiency, boost profitability and enhance seafarer wellbeing.The latest data compiled by the respected…

New Fuel Rules Push Shipowners to Go Green with LNG

El Coquí, one of the world’s first ConRos powered by LNG (Photo: Crowley)

Tough new rules on marine fuel are forcing shipowners to explore liquefied natural gas as a cleaner alternative and ports such as Gibraltar are preparing to offer upgraded refueling facilities in the shipping industry's biggest shake-up in decades.From 2020, International Maritime Organization rules will ban ships from using fuels with a sulphur content above 0.5 percent, compared with 3.5 percent now, unless they are equipped to clean up sulphur emissions. This will be enforced…

Tightening Noose: Venezuela's Crisis Deepens

© Anatoly Menzhiliy / Adobe Stock

The news that Venezuela's PDVSA has diverted a crude tanker from Curacao after ConocoPhillips moves to satisfy a $2 billion arbitration award signals that worst may be yet to come. Reuters is reporting that Venezuela's state-run PDVSA ordered a tanker waiting to discharge at its Curacao terminal to divert to Venezuelan waters after ConocoPhillips introduced an order in a Caribbean court to seize its inventories and other assets in the island, according to a shipper and Reuters data on Tuesday.

Conrad Industries Announces 2017 Results and Backlog

Johnny Conrad (Photo: Conrad Industries)

Conrad Industries, Inc. (OTC Pink: CNRD) has announced its fourth quarter and twelve months 2017 results and backlog. For the quarter ended December 31, 2017, Conrad had net loss of $3.4 million and loss per diluted share of $0.67 compared to net loss of $836,000 and loss per diluted share of $0.15 during the fourth quarter of 2016. The company had net loss of $2.1 million and loss per diluted share of $0.42 for the twelve months ended December 31, 2017 compared to net loss of $1.7 million and loss per diluted share of $0.33 for the twelve months ended December 31, 2016.

Sharp Contrasts in Markets Impact Van Oord

Photo: Van Oord

The year 2017 was dominated by the difficult market conditions in the dredging and oil & gas sectors, says Pieter van Oord, CEO, Van Oord, the Dutch contracting company that specializes in dredging and land reclamation. The global contractor specialising in dredging, marine engineering and offshore projects (oil, gas and wind) said that the volume of work in offshore wind was stable, and the market dynamic in the offshore wind sector will generate a lot of opportunities for years to come.

Trump Aims to Open Nearly All US Offshore to Oil Drilling

© wanfahmy / Adobe Stock

The Trump administration on Thursday proposed opening nearly all U.S. offshore waters to oil and gas drilling, a move aimed at boosting domestic energy production that sparked protests from coastal states, environmentalists and the tourism industry. The effort to open previously off-limits acreage in the Atlantic, Arctic and Pacific oceans comes less than eight years after BP Plc's Deepwater Horizon oil spill in the Gulf of Mexico - the largest in American history. The disaster…

HHI Group to List Oilbank

File Image (CREDIT: AdobeStock / (c) Burnel11)

IPO seen improving group's financial soundness, transparency; Group sees shipbuilding recovery starting 2019. South Korea's Hyundai Heavy Industries Group plans to list its refining arm Hyundai Oilbank in an IPO in 2018 and raise about $1.2 billion via a share issue by shipbuilder Hyundai Heavy Industries, in a move to bolster its finances. Hyundai Heavy Industries, the flagship company of South Korea's ninth-largest conglomerate, said on Tuesday that Hyundai Robotics, the group's holding company…

Metal Shark's Next-Generation Damen Fast Crew Supplier

 The all-aluminum monohull FCS 7011 (image: Metal Shark)

As an extension of its existing relationship with Netherlands-based Damen Shipyards, Louisiana-based shipbuilder Metal Shark has announced the availability of the new Damen FCS 7011 for the U.S. market. Developed by Damen in response to feedback from leaders in the offshore oil and gas sector, the FCS 7011 has been designed to reduce logistical cost and increase efficiencies in an era of low oil prices. The all-aluminum monohull FCS 7011 is a fast and comfortable crew supply solution for offshore production facilities.

Voices: Paulo Cesar P. Freitas, Norsul

(Photo: Norsul)

To better understand the challenges faced by ship operators in Brazil, Maritime Reporter’s correspondent in Brazil spoke to Paulo Cesar P. Freitas, Fleet Manager for Norsul Shipping company, one of the major shipping operators in Brazil. Established in 1963 and operating continuously ever since, “Companhia de Navegação Norsul”, as it is called in Portuguese, is one of the leading private maritime commerce companies in Brazil. Norsul specializes in dry-bulk, neo-bulk cargoes, general cargo…

Glencore Sees Record Oil Trading Volumes as Margins Shrink

Glencore looks set to cement its position as the world's second-largest oil trader as it tries to offset low volatility and tight margins with record volumes this year, its global head of oil, Alex Beard, told Reuters. The London-listed commodities trader and miner will shift around 6 million barrels per day (bpd) of crude and refined product this year, up 25 percent from last year. The figure represents around 6 percent of global supply and only rival Vitol trades more oil, at some 7 million bpd. Most merchants are being forced to ramp up volumes to protect profits in an environment of low volatility. "We don’t set targets in terms of volumes," Beard told the annual Reuters Global Commodities Summit.

IUMI: Offshore Energy Insurance Market “Sinking”

Photo: International Union of Marine Insurance

At annual IUMI (International Union of Marine Insurance) conference in Tokyo, James McDonald, chairman of IUMI’s Offshore Energy Committee warned that the sector was “sinking”. His warning was based on declining total premium income set alongside upstream energy large losses for 2015-16 of USD 4.8 billion. McDonald explained: “In recent years it would appear that claims have exceeded the global premium base and the last two underwriting years have seen significant losses. The…

Korean Shipyards Still in Rough Sea

File photo: Hyundai Heavy Industries

South Korean shipyards are still struggling to cut costs through unpaid leave for their workers and shutting down dry docks idled amid a lack of orders, Yonhap reported quoting industry sources. The report said that for decades, the shipbuilding sector has been one of the key growth drivers for Asia's fourth-largest economy. The top three shipyards in the country - Hyundai Heavy Industries Co (HHI), Samsung Heavy Industries Co. (SHI) and Daewoo Shipbuilding & Marine Engineering Co.

Latest Gulf of Mexico Auction Signals Offshore Return

© Mike Mareen / Adobe Stock

Major oil producers pushed up high bids at a Gulf of Mexico offshore auction to $121 million on Wednesday, a nearly seven-fold increase from a year ago, as their return to deep water exploration gained momentum. This compared with $18 million in high bids at the Bureau of Ocean Energy Management's (BOEM) Outer Continental Shelf auction last summer. Winners will be announced after a 90-day review. Some producers have signaled that they expect Gulf of Mexico projects to become more profitable now that they have trimmed operations to adapt to low oil prices.

Fog Lifts as Maersk CEO Remains Upbeat

File Image: The Madrid Maersk, one of Maersk's largest boxships. CREDIT: Maersk

Container shipping fundamentals at best since 2010 - CEO. Denmark's A.P. Moller Maersk gave an upbeat outlook for container shipping on Wednesday, lifting its shares by more than 4.5 percent as investors looked beyond one-off second-quarter charges. Maersk has been hit by low oil prices at its energy arm and sliding prices in its shipping business in recent years due to lacklustre global trade and a glut of available ships for hire. But its chief executive Soren Skou, who has staked his future on Maersk as a transport business…

NAT Says Tanker Market is Volatile

Photo: Nordic American Tankers

Nordic American Tankers Limited (NAT) claims to enjoy the advantages of a homogeneous Suezmax fleet. Operationally, strategically and financially, NAT and its worldwide customers and shareholders benefit from having 30 identical vessels on the water with excellent quality. The development of the world economy affects the tanker industry and the demand for oil. A low oil price is positive for the tanker industry. The strength of the Far Eastern economies, including China and India, is often underestimated by observers in the Western world.

Trump Administration Approves Eni Plan to Drill Offshore Alaska

Image of sea ice in the Beaufort Sea, acquired on 3 June 2017 by the Moderate Resolution Imaging Spectroradiometer (MODIS) instrument, on board the Aqua satellite. (Photo: NASA)

Eni US will become the first energy company allowed to explore for oil in federal waters off Alaska since 2015 after the Trump administration this week approved a drilling plan on leases the company has been sitting on for 10 years. The approval is conditional on Eni getting other state and federal permits, which in past cases are generally granted once BOEM gives the green light. "We know there are vast oil and gas resources under the Beaufort Sea, and we look forward to working with Eni in their efforts to tap into this energy potential," said BOEM's acting Director Walter Cruickshank.

Rolls-Royce & the Future Tech 'Reality'

Rolls-Royce and Finland’s Tampere University of Technology are working on the support systems necessary for autonomous navigation. The systems will be developed and tested using a purpose-built autonomous ship simulator located at the University. (Photo: Rolls-Royce)

Rolls-Royce. The words have been used by many to signify excellence – though not with the company’s permission, of course. Rolls-Royce Marine is taking a leading position in developing and introducing the systems and technologies needed for the running of a successful business in the maritime industry of the 21st century. At a company presentation held in London earlier this year, Mikael Mäkinen, President of Rolls-Royce Marine, outlined the company’s vision for the future and its strategies to put these new systems based on new technologies into place.

Asia Tankers-VLCC Rates Plateau, Could Edge Higher

File Image: CREDIT EuroNav

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.

VLCC Rates Steady Ahead of Possible Rebound

© rob3rt82 / Adobe Stock

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.

Saudi Aramco Inks Deals to Build Gulf's Biggest Shipyard

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

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

Russia Wants to Sell Sovcomflot to Small-stake Investors

Photo: Sovcomflot

Russia plans to sell part of state shipping firm Sovcomflot next month, hoping to draw in a wide range of small-stake investors rather than a strategic buyer who could threaten Moscow's control of the group, banking and industry sources say. The current era of low tanker market prices is far from the ideal time for Sovcomflot to raise revenue with a share offer, as freight rates were at their highs in 2015. Sovcomflot operates the world's second largest fleet of oil tankers. But…

Maersk: Shipping Recovery Coming

File Image: Credit Maersk

Maersk Line posts loss, but company sees improvement. A.P. Moller-Maersk beat first-quarter net profit forecasts on Thursday, boosted by the energy business it plans to spin off, but also reported signs of improvement at its long-suffering container shipping business. Shares in the Danish conglomerate climbed almost 5 percent after it said a gradual recovery in freight rates should boost earnings at Maersk Line, the world's biggest container shipping business, over the rest of the year.

Daewoo Shipbuilding unlocks $2.6 bln Bailout

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

Bondholders at final meetings agree to debt-to-equity swap; shipbuilder needs about $400 mln in operating funds by April-end. South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd has won near unanimous agreement from bondholders to swap their debt for equity, meeting a condition that unlocks a $2.6 billion bank bailout for the world's biggest shipbuilder. Daewoo won approval from over 96 percent of bondholders at two meetings on Tuesday and three on Monday, with attendance exceeding 78 percent.

Maritime Reporter Magazine Cover Dec 2018 - Great Ships of 2018

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

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