U.K. Drilling Activity 39 Percent Of 1998 Levels
U.K. offshore oil and gas appraisal and exploration drilling so far this year is only 39 percent of 1998 levels with no significant new drilling activity reported in the week ending Sept. 29, consultants Arthur Andersen said. They said in their weekly Well Report that only two new exploration wells were spudded in northwest Europe during the week in review. "This has created little change in the difference between drilling activity in 1998 and 1999," Arthur Andersen said of total drilling in northwest Europe for the year to date. The number of active oil and gas rigs operating in all sectors of northwest Europe during the week in review totaled 36. There were 19 wells drilling in the U.K. sector, 10 in Norway, three each in Denmark and the Netherlands and one in Ireland.
Oil Drilling In NW Europe On The Rise
Exploration and appraisal drilling in northwest Europe has shown a sharp increase in 2000 over year-ago levels, industry consultants Arthur Andersen said in a report. A total of 37 exploration wells have been spudded between January and July 19, with 18 appraisal wells started in the same period, representing an increase of 12 and 38 percent respectively on the level of spuds achieved in the same period of 1999, the report said. The northwest Europe area comprises activities in UK, Norwegian, Dutch and Danish waters.
Shell Loads First LNG Vessel at Gate Terminal
Shell loads first LNG vessel, using new LNG fuel infrastructure at Gate terminal. The new LNG fuel infrastructure included the construction of a new berth. This new berth has now started operations. The loading of Shell’s chartered LNG vessel, the Coral Methane happened on September 19th. In July 2014, Shell took the Final Investment Decision to buy capacity at the Gas Access to Europe (Gate) terminal, which enabled the investment in new, dedicated liquefied natural gas (LNG) fuel infrastructure. The new LNG fuel infrastructure included the construction of a new berth.
Russian Arctic LNG May Ship to Europe
The partners in Russia 's Yamal LNG project are in talks to ship cargoes to Britain & northwest Europe in winter, when heavy sea ice clogs routes to Asia. Under the plan, a fleet of around 14 LNG ice-breaking vessels will deliver Arctic gas from the project offshore northwest Siberia to northwest European terminals, either for eventual onward transport to Asia or for local consumption, reports Reuters. Existing Russian pipelines supply around a quarter of Europe's gas needs, but the planned Yamal LNG export plant was intended to supply Asian markets, which offer higher prices and have so far received relatively small amounts of Russian gas.
Broere Shipping Wins Dow Deal
Broere Shipping won a contract from Dow Benelux, a unit of U.S. group Dow Chemical Co., to transport 800,000 to 900,000 tons of fluid chemicals per year to various ports in Northwest Europe.
Dutch Offshore Activity On The Rise
Offshore oil and gas drilling continued to increase in the Dutch sector in the week ending June 9, with the rest of northwest Europe lagging behind last year’s levels, a report from consultants Arthur Andersen said. The number of wells started so far this year in the Netherlands was now just two less than the 10 spuds in the same period of 1998.
Europe Gasoline Cracks Strong on US Demand
Gasoline prompt cracks in northwest Europe slipped on Monday but remained at eight-month-highs supported by strong demand from the United States, where inventories are low and refinery maintenance has curbed supply. Stocks on the U.S. East Coast, a major export destination for European gasoline, fell more than expected last week while demand in West Africa and the Mediterranean is strong. Maintenance at Canadian refineries that normally supply the U.S. East Coast also helped tighten the market as summer, the peak season for gasoline demand in the United States, looms. "The Irving refinery restart has been supposedly delayed, and the Montreal and Quebec refineries are both down for work so the East Coast is really tight," an industry source said.
Maersk Exits Chile, Peru, NW Europe Container Service
In a release, the company said the last Andean vessel from Latin America to North Europe would be the Marianne Schulte, which is set to leave Chilean port San Antonio on May 20 and Peruvian port Callao on May 23. The last direct service Andean-bound vessel from North Europe will be the Thekla Schulte, set to leave the Dutch port of Rotterdam on May 23, Tilbury in the U.K. on May 24, the German port of Hamburg on May 26 and Antwerp, Belgium on May 28. Maersk said Peru and Chile would continue to be served with vessels via Balboa, Panama, while a direct service from the Colombian port of Santa Marta will continue with an improved transit time of 12 days through the existing network.
TGS to Acquire Polarcus' Multi-Client Library
Polarcus Limited has signed a Letter of Intent (LOI) with TGS-NOPEC Geophysical Company for the sale of its multi-client projects in Northwest Europe and West Africa in return for a cash consideration of US$27.5 million and future revenue share on library late sales. Polarcus said that the agreement includes an upfront cash payment, a tiered revenue share from future sales of the divested multi-client projects and further contains cash payments for costs deferred under existing contractual agreements.
Med Diesel Diffs at 21-month High
A closed arbitrage from other regions and refinery shutdowns have tightened the Mediterranean diesel market driving cargo premiums to ICE gasoil futures to their highest since August 2015. "It's almost impossible to find cargoes for the first half of May in the Mediterranean," one trader active in the region said. "Arbitrage from the U.S. (into the Mediterranean) is not really working, or just working on a 10-minute basis so nobody is able to fix cargoes," he added. As a result…
Marine Diesel Oil Price-Spike Expected End of 2014
Reuters – New fuel rules for ships entering low sulphur zones around northwest Europe and North America next year could trigger a price spike in European gasoil, whilst refiners will struggle to offload unwanted fuel oil. From January 2015, ships entering "Emission Control Areas" (ECAs) in the Baltic, North Sea and English Channel and around the North American coast, will have to switch from low sulphur fuel oil (LSFO) with 1 percent sulphur content to 0.1 percent gasoil, in a crackdown on marine pollution.
Asia's Booming Diesel Market Draws Rare European Cargoes
Rare cargoes booked out of Europe to Asia, Middle East; Indian demand, refinery maintenance boost Asian prices. Oil traders are shipping diesel out of Europe to Asia and the Middle East where strong demand and tighter supplies have boosted prices, in a rare arbitrage that reverses traditional routes. At least three 90,000 tonne diesel cargoes were booked in recent days out of northwest Europe options to go to Singapore and the Middle East, shipping data showed. BP chartered the…
Damco Names de Vroet Global Head of Ocean Freight
Damco, the logistics arm of the A.P. Moller – Maersk Group, appointed Diederick de Vroet as its Global Head of Ocean Freight. A Dutch national with more than two decades of experience in sales, air, ocean and general management, de Vroet will play a significant role in building the structure of Damco’s global carrier management team. His appointment was effective on October, 2010 and he is based in Copenhagen. Before joining Damco, de Vroet worked for more than 20 years with Kuehne+Nagel International where he was responsible for the ocean freight operations as well as sales and airfreight during different management positions throughout Europe and Asia.
Europe Gasoline, Diesel Barge Swaps Weaken
Gasoline and naphtha crack swaps fell slightly on the week but remained supported by strong export demand for gasoline. Tankers carrying around 1 million tonnes of gasoline have been booked from Europe to West Africa in recent weeks, according to Reuters shipping data, following renewed demand from Nigeria. Gasoline stocks held in the Amsterdam-Rotterdam-Antwerp storage hub fell slightly in the week to Thursday to 1.14 million tonnes, according to Dutch consultancy PJK International. Diesel differentials remained under pressure from ample supplies in the region despite high refinery maintenance levels as imports into the region rise. Tankers carrying around 1 million tonnes of diesel have been booked to load in April from the U.S.
Evergreen, CKYH Alliance Rationalization Plan
Evergreen Line has announced a rationalization plan with the CKYH Alliance (Coscon, "K"LINE, Yang Ming, Hanjin Shipping) for the U.S. East Coast / Northwest Europe Service. The new service combines their Evergreen Line's Trans Atlantic string of North Asia-U.S. East Coast-Europe pendulum service (NUE) and the Alliance's existing Trans Atlantic service - loop1 (TAS1) into a new Trans Atlantic Express service (TAE) commencing September 2009. The new TAE service will operate with four 2,400-TEU vessels with Evergreen Line and the CKYH Alliance each deploying two vessels. The port rotation is as follows: Antwerp - Bremerhaven - Rotterdam - Le Havre - New York -Norfolk - Charleston - Antwerp.
New Fuel Rules Could Prompt Gasoil Price Spike
New fuel rules for ships entering low sulphur zones around northwest Europe and North America next year could trigger a price spike in European gasoil, whilst refiners will struggle to offload unwanted fuel oil. From January 2015, ships entering "Emission Control Areas" (ECAs) in the Baltic, North Sea and English Channel and around the North American coast, will have to switch from low sulphur fuel oil (LSFO) with 1 percent sulphur content to 0.1 percent gasoil, in a crackdown on marine pollution. Industry experts believe shipowners will opt for gasoil rather than using exhaust filter systems known as scrubbers or alternative fuels such as liquefied natural gas (LNG), because of high investment costs, long payback times, and the lack of suitable port infrastructure.
LNG Prices Firm on Pockets of Demand
Asian liquefied natural gas (LNG) prices edged up this week as the global market drew some support from demand in Mexico, after its state-run power company purchased six cargoes. The price of Asian spot cargoes for January delivery edged up to $7.30 per million British thermal units (mmBtu), from around $7.20/mmBtu last week. Cargoes for February delivery were lower at around $7.10/mmBtu, with supply from new projects in Australia and the United States expected to pick up in the new year. Mexico's CFE secured five LNG cargoes from Citi and one from Gazprom Marketing & Trading for delivery in the first half of 2016, traders said. Two sources said there had been some interest for cargoes into northwest Europe.
Foster Wheeler to Upgrade ExxonMobil's Antwerp Refinery
Foster Wheeler AG announced today that a subsidiary of its Global Engineering and Construction Group has been awarded an engineering, procurement, and construction (EPC) contract by ExxonMobil Petroleum & Chemical BVBA (“Esso”) for the Antwerp Northwest Europe Resid Upgrade Project – Revamp and Offsites facilities at the Esso Antwerp Refinery at Antwerp, Belgium. Foster Wheeler's contract value was not disclosed. A small initial release of work was included in the company’s first-quarter 2014 bookings. The full release of work was included in the company's second-quarter 2014 bookings.
Former Harkand DSVs Join Boskalis Fleet
Royal Boskalis Westminster N.V. has added two 115.4m diving support vessels (DSVs) to its fleet, in line with the company’s plan to expand its subsea services offering. Boskalis said it reached an agreement with the bondholders of the two former Harkand vessels under which it has acquired the DSV Atlantis for approximately $60 million and has signed a three-year bareboat charter for her sister vessel Da Vinci along with a right of first refusal in the event of a sale. The vessels…
PDVSA Offers 240MB Jet Fuel Parcel
Venezuela's state-run PDVSA has launched a tender to sell a 240,000 barrel cargo of jet fuel to be loaded on August 26-28 at the Caribbean island of Curacao, according to an invitation seen by Reuters on Friday. The oil company earlier this month bought four 500,000 barrel cargoes of heavy naphtha to be received from September to December and it also sold a 250,000 barrel cargo combining natural gasoline and virgin naphtha. For this offer, the company will receive bids until August 12. The cargo must have as destination Florida, the U.S. Gulf Coast, the U.S. East Coast, the Caribbean, Northwest Europe, the Mediterranean or West Africa. Payment will be made in euros, eight days after delivery of bill of lading, the company added. Reporting by Marianna Parraga
PDVSA to Sell Jet Fuel and ULSD Cargos for April
Venezuela's state-run PDVSA launched tenders to sell one 240,000 barrel cargo of jet fuel and one 240,000 barrel cargo of ultra low-sulfur diesel (ULSD) for delivery in April, according to documents seen by Reuters on Friday. The company launched two previous tenders in recent days to buy heavy naphtha and catalytic naphtha. In March it offered seven cargos of different fuels, increasing its typical sales on the open market. The jet fuel cargo offered this time will be delivered April 20-22 at Amuay refinery, while the ULSD cargo will be loaded in Puerto la Cruz refinery on April 24-26. The company will receive bids until April 8 for both cargos. The destination should be the U.S. Gulf or East Coasts, Florida, the Caribbean, the Mediterranean, Northwest Europe or West Africa.
Russian Oil Tanker Rates Rise 51% in Two Days
The cost of shipping Russian oil to northwest Europe had the biggest two-day jump since April as traders accelerated bookings of tankers to load at the end of this month, curbing the number available for charter, reports Bloomberg. Rates for Aframaxes shipping 100,000 metric tons to Wilhelmshaven in Germany from Primorsk on the Baltic Sea climbed 51 percent to 113 Worldscale points, reports Bloomberg citing the Baltic Exchange , a London-based publisher of freight prices on more than 50 trade routes. That equals daily earnings of $47,168, almost three times what the ships made on Oct. 15. Shipments of oil on Aframaxes from the Baltic will rise 5 percent to about 1.7 million barrels a day this year, estimates Clarkson Plc, the world’s largest shipbroker.
Rotterdam Gate LNG Terminal Expansion Started
Dutch gas network operator Gasunie and tank storage service provider Vopak said on Monday that the expansion of their Gate liquefied natural gas (LNG) terminal in Rotterdam has begun. The new infrastructure is expected to aid the use of LNG as a transport fuel and is expected to be operational towards the end of the first half of 2016. Gate receives, stores, regasifies and delivers LNG into northwest Europe's grid. Gate terminal will have break-bulk infrastructure and services added, which will help split up large LNG shipments into smaller quantities. Shell is the launching customer for the expansion and has committed to buy capacity from Gate terminal. Reporting by Sarah McFarlane