Offshore Lockout to Shut Norwegian Oil Fields
The Norwegian Oil Industry Association (OLF) announced that a lockout will be imposed from 24.00 on Monday 28 June on all members of two unions covered by the offshore pay agreements. This move against the Federation of Oil Workers Trade Unions (OFS) and the Norwegian Association for Supervisors follows a deadlock in the strike which they initiated on 18 June. According to the OLF, a stoppage will lead to an almost complete shutdown of oil and gas production on the NCS. Statoil-operated fields stand to suffer a daily loss of some 1.4 million barrels of oil and condensate and roughly 150 million cubic metres of gas. The group itself will be losing roughly 585,000 barrels of oil and condensate and some 60 million cubic metres of gas per day from its own or partner-operated fields.
SBM Offshore Shares Jump as Bribery Case Settled
SBM Offshore NV has settled a bribery case with Dutch prosecutors for $240 million, including a $40,000 fine, sending shares in the Dutch oil platform leasing firm up more than 20 percent on Wednesday. The settlement, which was in line with provisions already taken, ends a two-and-a-half year inquiry into improper payments to government officials in Angola, Brazil and Equatorial Guinea by sales agents between 2007 and 2011. The settlement means that SBM Offshore will not be prosecuted in the Netherlands, but the individuals involved could face charges in other countries.
Statoil to Resume Production after Compulsory Arbitration
Statoil preparing to resume production at installations that have been affected by a strike, after the government decided to impose compulsory arbitration in the pay settlement for the Norwegian continental shelf. Norwegian Minister of Labour Hanne Bjurstrøm has informed the parties in the offshore pay settlement that the government will propose to Parliament that the conflict be resolved by compulsory arbitration. At the request of the Minister the parties are to resume work as soon as possible. The lockout that has been announced for the Norwegian continental shelf will therefore not come into force. On Thursday 5 July, the Norwegian Oil Industry Association (OLF) announced an impending lockout for all members of the unions Industry Energy (Industri Energi)…
OLF Lockout Means Statoil Production Shutdown
Statoil preparing to halt production after notice of lockout. Statoil is preparing to shut down production on the Norwegian continental shelf (NCS) following a notice of lockout. The Norwegian Oil Industry Association (OLF) announced today that a lockout will be imposed on all members of Industry Energy (Industri Energi), the Organisation of Energy Personnel (SAFE) and the Norwegian Organisation of Managers and Executives (Lederne) who are covered by the offshore pay agreements. The announced lockout will take effect on Monday 9 July at 24:00 hrs., and will halt all production on the NCS. For Statoil, the shortfall in production will be around 1.2 million barrels of oil equivalent per day.
New CEO, Co-CEO to Lead MHI Vestas Offshore Wind
Mitsubishi Heavy Industries (MHI) and Vestas Wind Systems (Vestas) have appointed Philippe Kavafyan to Chief Executive Officer (CEO) and Lars Bondo Krogsgaard to Co-Chief Executive Officer (Co-CEO) of MHI Vestas Offshore Wind. The appointments will take effect on 1 April, 2018, and are made in accordance with the joint venture agreement's principle of changing its leadership every four years. Under the leadership of out-going CEO Jens Tommerup and Co-CEO Tetsushi Mizuno, MHI Vestas Offshore Wind has established itself as a leading player in offshore…
SBM Offshore Hands over FPSO Turritella to Shell
SBM Offshore said it has completed the transaction related to the sale of floating production storage and offloading (FPSO) vessel Turritella to Shell E and P Offshore Services B.V. Shell exercised an option to purchase the FPSO from SBM Offshore in summer 2017. The Turritella FPSO is contracted for the Stones deepwater development in the Gulf of Mexico, which began production in 2016. The vessel has a daily production capacity of approximately 60,000 barrels of oil and 15 million cubic feet of natural gas.
BSEE Proposes Softening of Offshore Drilling Rules - WSJ
A U.S. regulator has proposed rolling back safety measures put in place after the 2010 Deepwater Horizon oil spill, which would reduce the role of government in offshore oil production, the Wall Street Journal reported on Monday. The Bureau of Safety and Environmental Enforcement (BSEE), which regulates offshore oil and gas drilling, proposes relaxing requirements to stream real-time data on oil production operators to facilities onshore, where they are available for review by regulators, the Journal reported.
VOS Stone Equipped with Ampelmann W2W Gangway
Vroon Offshore Services and Ampelmann have joined forces to deploy a Walk to Work (W2W) solution for the Arkona offshore wind farm, located in the German Baltic Sea. Vroon’s VOS Stone vessel, the newest addition to its offshore-support fleet, will be mobilized with an Ampelmann A400 gangway system. The gangway, launched in 2017, will be utilized for the first time for W2W operations during array cabling work and commissioning of the Arkona offshore wind farm. The A400 gangway system…
Algeria Inks Deal with Vitol to Cut Fuel Imports
Algeria's state energy company Sonatrach said it has signed a deal with oil trader Vitol to send crude abroad for refining as the country seeks to reduce a record fuel import bill. CEO Abdelmoumen Ould Kaddour said Sonatrach would pay processing costs before bringing refined fuel back to Algeria, and said it was also negotiating to buy shares in a foreign refinery, but did not give details. "Our goal is to reduce our imports of gasoline, they are too high," Ould Kaddour told reporters on Tuesday. The deal is due to take effect in early February, according to a document seen by Reuters.
Diana Shipping Enters into TC Contract with Uniper
Diana Shipping has announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Uniper Global Commodities SE, Düsseldorf, for one of its Post-Panamax dry bulk vessels, the m/v Phaidra. The gross charter rate is US$12,700 per day, minus a 5% commission paid to third parties, for a period of minimum 12 months to maximum 15 months. The charter commenced on January 13, 2018. The m/v Phaidra was previously chartered to Jera Trading Singapore Pte. Ltd.
G E Shipping Sells Supramax
India’s largest private sector shipping company Great Eastern Shipping Company Limited (G E Shipping) has contracted to sell its 2003 built Supramax Dry Bulk Carrier Jag Rahul of about 52,364 dwt. G E Shipping said that the vessel will be delivered to the new buyer in Q4 FY 2017-18. The Company’s current fleet (including Jag Rahul) stands at 48 vessels, comprising 32 tankers (12crude carriers, 17 product tankers, 3 LPG carrier) and 16 dry bulk carriers (1 Capesize, 8 Kamsarmax, 7 Supramax) with an average age of 10.24 years aggregating 3.93 mn dwt.
Statoil Buys into Brazil’s Santos Basin
Statoil completes acquisition and takes over operatorship of Brazilian offshore licence BM-S-8 Statoil and Petrobras have completed their previously announced transaction, whereby Statoil has acquired Petrobras’ 66 percent operated interest of the BM-S-8 offshore license in Brazil’s Santos basin. BM-S-8 contains a substantial part of the Carcará pre-salt oil discovery. On the completion of the transaction, Statoil has paid Petrobras $1.25 billion, half of the total consideration. The remainder will be paid at the passage of certain future milestones, mainly relating to the future unitization of Carcará.
Jumbo Orders LNG-powered Heavy Lift Ship
Dutch transportation and installation contractor Jumbo said it has signed a Letter of Intent (LOI) with shipbuilder China Merchants Industry Holdings (CMIH) for the construction of a new heavy lift crane vessel (HLCV) scheduled for delivery in the first quarter of 2020. The DP2 vessel will feature dual fuel engines capable of operating on liquefied natural gas (LNG), and will be built to serve the offshore wind and the offshore oil and gas industries. “Despite the current offshore climate, we are committing to this industry long term,” said Jumbo managing director, Michael Kahn.
Triyards Loses Two Shipbuilding Contracts
Triyards Holdings, the offshore marine division of Ezra Holdings, has swung deep into the red following the termination of two shipbuilding contracts worth some $51 million. "The Board of Directors of Triyards Holdings wishes to announce that its wholly owned subsidiary, Saigon Offshore Fabrication and Engineering Limited, has received notices of termination of the two shipbuilding contracts dated 26 June 2015 and the addendum dated 10 May 2017 for the design and construction…
EU Opens Investigation into Tax Incentives for Polish Shipyards
The European Commission on Monday opened an investigation into tax incentives for shipyards in Poland, saying it had concerns the scheme would give an unfair advantage to companies. Under the Polish scheme, shipmakers can pay a flat-rate tax on sales from the building and conversion of ships. The Commission said such a measure could be seen as “operating aid”, which is illegal under EU rules. “The Commission will now investigate further to determine whether its initial concerns are confirmed,” the EU’s competition watchdog said in a statement.
MMS Publishes Offshore Violations Summary
The Department of the Interior's Minerals Management Service (MMS) published in the Federal Register a summary of civil penalties paid last year by oil and natural gas companies for violations occurring in the Outer Continental Shelf (OCS). The summary identifies the company name, the specific offshore activity in violation of the law, and the fine paid. The total penalty amount paid in 1998 by 27 companies was $1.3 million. The MMS is responsible for ensuring safe and clean offshore operations in the OCS. The civil penalty process is designed to encourage companies to comply with the statutes and regulations by pursuing, assessing, and collecting penalties. OPA 90 expanded and strengthened MMS' authority to impose penalties for violating its regulations.
NAVTOR Reports Norwegian Market Breakthroughs
NAVTOR, a company that delivers e-navigation solutions, announced market breakthroughs in the Norwegian offshore shipping segment. According to NAVTOR, a flurry of new client signings means that shipowners controlling 72% of the entire national fleet are now rolling the firm’s ENC service out across their vessels. NAVTOR said it is the navigation partner of choice for the Norwegian offshore segment, which today accounts for 44% of the nation’s total shipping business. NAVTOR has achieved this position just two years after the launch of its ENC service, which is compatible with all ECDIS, regardless of make. The service is offered for distribution on the preloaded USB-based NavStick…
Bourbon 2015 Leadership Strategy
The Bourbon 2015 Leadership Strategy consists of further investing in innovative and cost effective vessels to satisfy customers’ increasing focus on safe and efficient vessels to support their offshore activities, and to enable them to reduce their overall operation costs. By adding 80 supply vessels and 64 crewboats through a $2b investment plan in new buildings, Bourbon will be operating a fleet of 600 vessels for deepwater and shallow water logistics services by 2015. The Bourbon 2015 Leadership Strategy will be built on the Bourbon Liberty series of vessels, to speed up the renewal of the old and obsolete existing shallow water fleet and on the proven expertise of its deepwater operations for exploration and production, including subsea activities.
17 Keppel Employees Pay for Petrobras Bribery Case
Keppel Corp's rig-building unit has taken disciplinary action against 17 current and former employees as part of its Brazil bribery case, a U.S. court document showed, including $8.9 million of financial sanctions, demotions and departures. The measures were revealed after the Singapore-based company agreed to pay $422 million to settle charges it bribed Brazilian officials, including some at state-run oil company Petrobras. Singapore authorities are investigating individuals involved. In the document seen by Reuters, U.S.
Offshore Workers Earn More Paid Vacation
North Sea workers have won an extra 14 days of paid holiday in a tribunal held in Aberdeen, according to a report on www.EnergyCurrent.com. The Offshore Industry Liaison Committee (OILC) and Unite sited the European Union working time directive in the bid to get more vacation for 10,000 offshore workers, including those in subsea, drilling and catering. In a 150-page ruling, the current 26 week field break was deemed compensatory rest for time workers could not take while offshore. (Source: www.EnergyCurrent.com)
IRS Focuses on Foreign Vessels Evaiding Taxes
The Offshore Marine Service Association (OMSA) applauded the Internal Revenue Service’s (IRS) recently posted directive to field officers establishing an issue management team in the wake of an IRS analysis indicating that a significant number of foreign vessels permitted to work in the U.S. offshore oil and gas industry aren’t complying with U.S. filing requirements. In the directive, posted last week on the IRS web site, Keith M. Jones, the IRS industry director of Natural Resources and Construction (NRC), noted that, “In recent years, an increased number of foreign vessels have applied to enter and work in the OCS (Outer Continental Shelf). Our analysis indicates that a significant number of foreign vessels permitted to work in the OCS do not comply with U.S.
Offshore Expansion: With Growth Comes Wage Pressure
Higher salaries paid in the expanding offshore sector are putting wage pressure on other industry segments like classification societies and port state administrations, employment consultant Spinnaker Consulting says. “With demand for personnel continuing to grow in the offshore sector, the wage gap has widened with other parts of the industry, who may in some cases only be able to offer salaries that are fixed by government employers,” says Spinnaker Chairman Phil Parry. Having said that, Parry warns that in Europe offshore expertise may itself be in short supply if more is not done in the future to provide a level playing field for offshore industry workers.
Seacor Announces JV with Cosco Shipping Affiliates
Offshore services vessel operator SEACOR Marine Holdings Inc. said it has formed a jointly owned company with affiliates of the world’s largest ship owner, COSCO Shipping Group. The Marshall Islands company, SEACOSCO Offshore LLC, entered into contracts for the purchase of eight Rolls-Royce designed new construction platform supply vessels (PSV) from COSCO Shipping Heavy Industry (Guangdong) Co., Ltd. Six of the PSVs are of UT 771WP design (4,400 tons deadweight), and two are of UT 771CD design (3,800 tons deadweight).