Marine Link
Sunday, February 25, 2018

Oil News

Oil from Sunken Tanker Sanchi Reached Japan's Shores

(Photo: Japan Coast Guard)

Oil that reached islands in southern Japan earlier this month is highly likely to have come from the sunken Iranian tanker Sanchi, the Japan Coast Guard said on Thursday. Samples of oily matter that washed up on Feb. 8 on the shores of the Okinoerabu and Yoron islands in the Amami chain were found to be linked to the Sanchi's sinking, the Coast Guard said. The Sanchi sank on Jan. 14 after colliding with a freighter on Jan. 6 in the world's worst oil tanker disaster in decades.

IMO Rules a Cliffhanger for Oil Storage -Vitol's Chris Bake

© Arthit Somsakul / Adobe Stock

Vitol executive committee member Chris Bake says a big question facing oil storage sector is how world handles new International Maritime Organisation rules for cleaner shipping. New IMO rules to slash the use of high sulphur fuel oil in global shipping will come into effect in 2020. "It's going to be more and more difficult to burn that fuel oil with more economies going to natural gas for power," he said. "(Lower sulphur) marine gasoil has to build ahead of 2020. At the same…

Port Spat Delays Russian Black Sea Product Exports

Shipments of oil products from a Russian Black Sea outlet have been disrupted since early February due to a row over the port's control, four industry sources told Reuters on Wednesday. Three sources said oil products shipments from the IPP terminal at the port of Novorossiisk have been delayed over a managerial conflict. The port did not reply to a written request for comment. According to the sources, between 1,000 and 2,500 rail cars with oil products are stuck near the port waiting to be loaded on to tankers. Trading sources also said that loading operations of two tankers - Andromeda, chartered by Litasco, and Trafigura's Atlantas II - have been cancelled. "Ships have been waiting in the harbour of Novorossiisk," a trader said.

Nordic American Tankers Signs TC with Major Oil Firms

Photo: Nordic American Tankers

In the autumn of 2017, Nordic American Tankers (NAT) advised you of our time charter activities/contracts with oil companies such as Shell, BP, ExxonMobil and other major oil companies in the West and in the East. The contract with ExxonMobil has expired but the company does work for them on a regular basis. "From time to time we also have shorter contracts (typically up to 90 days) for ships serving as storage space for major companies and large oil traders," said a statement from the company.

Schlumberger, Subsea 7 Mull Oil Services JV

(Photo: Subsea 7)

Schlumberger, the world's largest oilfield services firm, and smaller peer Subsea 7 said on Friday they were entering exclusive talks to form a joint venture to deliver subsea installations and services for oilfields. The news lifted Subsea 7 shares on hopes the talks could be the first step towards a full takeover, in a sector that has already seen consolidation with the 2016 merger of Technip and FMC Technologies. In recent months, oil firms have returned to profits due to higher oil prices and the benefits of deep cost cuts they made during the downturn.

Maersk Energy: Uptick in Offshore Oil

(File photo: Maersk Oil)

COPENHAGEN, Feb 20 (Reuters) - Prospects for the offshore oil drilling market are improving but profits for drillers are still under pressure and rates will not rise before 2019, the head of A.P. Moller-Maersk's energy business said. Oil firms have seen cash flow climb in 2017 a high since a three-year slump in crude prices, lifted by their cost-cutting plans and a crude price recovery. Although this has spurred new investment, it has yet to benefit suppliers, such as Maersk,…

Transocean Upbeat About Offshore Recovery, Despite Quarterly Loss

File photo: Transocean

Drilling contractor Transocean Ltd on Wednesday expressed optimism about a recovery in offshore drilling activity this year, despite reporting its third quarterly loss in a row. Companies that provide services and equipment for oil and gas exploration and production, among the worst hit by the 2014 oil price downturn, have grown optimistic about the future as oil prices recently have bounced back. In recent quarters, companies that focus on providing services to onshore shale producers have posted the biggest gains…

India's Oil Imports Reach Record High in January

© Raja Stills / Adobe Stock

India imported a record 4.93 million barrels of oil per day (bpd) in January to feed its expanded refining capacity and meet rising demand, ship tracking data obtained from sources and data compiled by Thomson Reuters Oil Research & Forecasts showed. The world's third-biggest oil importer shipped in 13.6 percent more oil in January than a year earlier and about 12.5 percent more than the previous month, the data showed. Imports in January were high as state-run refiners, which operate two-third of India's nearly 5 million bpd capacity…

LOOP Tests Crude Exports with VLCC

The Louisiana Offshore Oil Port (LOOP), the largest privately owned crude terminal in the United States, said on Tuesday it had moored a supertanker and initiated a detailed test procedure, bringing it closer to being able to export crude oil. LOOP said last year its U.S. Gulf Coast facility would have the capacity to load Very Large Crude Carriers (VLCCs), the largest oil tankers, which can ship some 2 million barrels of oil by early 2018. Washington lifted a 40-year ban on oil exports two years ago, and since then tankers filled with U.S. crude have landed in more than 30 countries, ranging from massive economies like China and India to tiny Togo. Gulf Coast terminals handle three-quarters of U.S. crude exports, but only LOOP can handle supertankers.

Thai Navy Orders New Tug from Italthai

Photo courtesy Robert Allan Ltd.

On January 19, 2018, Italthai Marine Limited of Thailand signed a contract with the Royal Thai Navy (RTN) for the construction of a sister ship to the Robert Allan Ltd. designed RAmparts 3200 tug Panyi 857. Italthai have built three Robert Allan Ltd. tugs previously for Thailand, Panyi 857 built in 2016 and a pair of RAmparts 2800’s for The Port Authority of Thailand, Tarua 120 and Tarua 302 both built in 2012. Hull form and all equipment are the same as Panyi 857 with enhanced fendering system to handle the navy’s new submarines.

Hyundai Heavy Bags LPG Storage Tank Deal in Nigeria

Image: Hyundai Heavy Industries

Hyundai Heavy said it plans to start to build the tanks in May and is set to deliver the tanks to Nigeria's Dangote Oil Refining Company, Africa's largest refinery, beginning in April 2019. The 15 cylindrical tanks - each being eight meters in diameter and 95 meters in length - can hold 75,000 cubic meters of LPG, according to Hyundai Heavy. The 15 gas cylinders w ill be installed at Dangote Oil Reining’s refining and petrochemical plant near Lagos in southwestern Nigeria. The Korean company manufactures and sells ships…

Kolkata Port, Hooghly Pact for Liquid Cargo Terminal

Photo: Kolkata Port Trust

The Kolkata Port Trust (KoPT) has signed a concession agreement with Hooghly Oil & Gas Terminal to establish a liquid cargo handling terminal at Shalukhali in Haldia. The terminal will facilitate the movement of petroleum cargo such as LNG, LPG as well as vegetable oil. It is expected to develop over the next three years. The project will help reduce pre-berthing detention and turnaround time of tankers carrying different liquid cargo, leading to a reduction in logistics costs to trade.

Sonatrach Eyes More Vessels to Boost Asia Gas Sales

(Photo: Sonatrach)

Algeria will acquire more vessels to transport gas to Asia as it eyes increased sales in that region, the chief executive of state energy firm Sonatrach said on Monday. "With Russia and the U.S., gas competition is tough," Abdelmoumen Ould Kaddour told reporters during a visit to the Hassi Messaoud oilfield. He gave no details. Kaddour also said Sonatrach's oil drilling in Algeria's southern neighbour Niger, where a Sonatrach unit was awarded a production-sharing deal in 2015, had been "satisfying" so far.

BIMCO: China Breaks New Ground… Again

© Igor Groshev / Adobe Stock

Chinese seaborne imports of iron ore, coal and crude oil have all grown strongly throughout 2017. Both seaborne imports of crude oil and iron ore have reached the highest levels ever recorded, while coal reached the highest level in three years. Imports of crude oil and coal have benefitted the shipping industry to the greatest extent as both volumes and distances have increased. China continues to ramp up its imports of iron ore with seaborne imports growing 4.7% in 2017 compared to 2016.

#BTC100 History

Photo Courtesy of Bouchard Transportation Co.

 Bouchard Transportation Co. acquires its first oil barge, a sunken 15,000 barrel vessel, which Capt. Fred Bouchard purchased for $100. After raising this vessel, he towed it from Jacksonville, FL, to a Norfolk, VA, shipyard, where it was then converted to a hot oil system oil barge and named the John Frederick. #BTC100  The July 2018 edition of Maritime Reporter & Engineering News will feature a special “Bouchard Transportation Co. Celebrates 100 Years” magazine. For more information contact: Greg Trauthwein, trauthwein@marinelink.com, t. 516-810-7405.   

Russia Could Take 2-5 Months to Exit Oil Output Deal

Russian Energy Minister Alexander Novak said on Monday it could take two to five months to exit a global oil output cut deal with OPEC and non-OPEC countries if and when such a decision was taken, the Interfax news agency reported. Global producers late last year extended a global oil output cut deal between members of the Organization of the Petroleum Exporting Countries and non-OPEC states until the end of 2018. The duration of that deal is expected to be reviewed at OPEC's next meeting in June when member countries will consider the current oil price and forecast prices when considering what action, if any, to take. "It could take three, four, five months or maybe just two (to exit the deal)," Novak said in an interview with Interfax.

OPEC Sees Balanced Oil Market by Year-end

© rob3rt82 / Adobe Stock

OPEC said on Monday the world oil market would return to balance only towards the end of 2018 as extra barrels from the United States and other non-member producers offset an OPEC-led deal intended to clear a supply glut. In a monthly report, the Organization of the Petroleum Exporting Countries said outside producers would boost supply by 1.4 million barrels per day (bpd) this year. That was the third consecutive rise from 870,000 bpd forecast in November. "The steady oil price…

Russia's Baltic Urals Exports Seen Rising in March

© Nightman1965 / Adobe STock

Russia's Urals crude exports from the ports of Ust-Luga and Primorsk are seen at 5.6 million tonnes in March compared to 5.0 million tonnes in the February plan, a preliminary loading schedule released on Wednesday showed Exports of Urals and Siberian light crude oil from the Black Sea port of Novorossiisk port are set at 2.3 million tonnes in March compared to 2.1 million tonnes in the February plan. Reporting by Ludmila Zaramenskikh; Writing by Maxim Rodionov

Borr Drilling Buys Paragon Offshore

© Lukasz Z / Adobe Stock

Offshore rig firm Borr Drilling, controlled by Norwegian investor Tor Olav Troeim, is proposing to buy its rival Paragon Offshore for $232.5 million in a push to consolidate the fragmented rig market, it said on Thursday. A plunge in oil prices in 2014 forced oil firms to cut back on offshore exploration, reducing demand for drilling rigs at a time when new rigs ordered during the boom years were entering the market, pushing rates down to, or below, operating costs. Borr said it was likely to scrap 21 older jack-up rigs…

Iran Cancels Norwegian FLNG Project

Image: IFLNG AS

Iran oil minister Bijan Namdar Zangeneh said that the agreement signed with the Norwegian IFLNG company has already been annulled. A report in the Trend said that the  deal with Norwegian Hemla was  cancelled following the criticism by some Iranian MPs. The report quoted Iran’s oil minister Bijan Namdar Zanganeh saying that the deal is cancelled following the some criticism regarding the contract terms. In October 2017, Iran signed a contract with Norwegian oil and gas company to build the country’s first floating liquefied natural gas (FLNG) unit in the Persian Gulf.

Singapore Marine Fuel Sales Surge 7.2%

© Kalyakan/Adobe Stock

Singapore's marine fuel sales set a monthly record in January after climbing to 4.606 million tonnes, up 3.2 percent from a year earlier as vessels coming to the world's largest bunkering hub loaded larger amounts of bunker fuel per vessel on average, official data showed. Compared with the previous month, sales in January were up 7.2 percent, data from the Maritime and Port Authority of Singapore (MPA) showed. The number of vessels that called at Singapore for bunkers fell by 4.4 percent from last year to 3,472 but was at an eight-month high, MPA data showed.

MISC Profit Plunges

LNG Vessel - Seri Alam. Photo: MISC Berhad

Malaysia International Shipping Corporation Berhad (MISC)'s net profit plunged 87.1% to RM 68.2 million (USD 17.36 mln) for the fourth quarter ended December 31, 2017 compared with RM 529.8 million (USD 134.88 mln) in the previous corresponding period. MISC said the oversupply of tonnage and cut in global oil production by OPEC in 2017 will continue to weigh on the petroleum shipping segment in 2018. However, a smaller order book for tankers and robust oil demand projections amidst declining global crude inventory will help improve tanker supply-demand balance.

Kirby Closes Acquisition of Higman Marine

File Image (CREDIT: Higman Marine)

Kirby Corporation has announced the completion of the acquisition of Higman Marine, Inc. and its affiliated companies (“Higman”), an operator of tank barges and towboats participating in the inland tank barge transportation industry in the United States. The total value of the transaction was approximately $419 million in cash before post-closing adjustments and transaction fees. issuance of senior notes, which closed on February 12, 2018. The new senior notes provided for $500 million in fixed rate debt at 4.2% with a 10-year maturity on March 1, 2028.

Maritime Reporter Magazine Cover Feb 2018 - Cruise Ship Annual

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.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News