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Sunday, December 9, 2018

Oil Price News

Enquest Acquires Remaining Stake in Magnus

Image: Enquest

United Kingdom-based petroleum exploration and production company Enquest said it had completed the acquisition of the remaining 75% stake in Magnus, an additional 9.0% stake in the Sullom Voe Oil terminal and supply facility and additional interests in associated infrastructure from BP.The Magnus transaction, as previously announced, is expected to add approximately 60 MMboe of 2P reserves (equating to approximately 30 percent of the Group’s reserve base) as at 1 January 2018…

IOG Delays North Sea Project Financing

Image: Independent Oil and Gas Plc

UK based oil and gas development & production company Independent Oil and Gas Plc (IOG)cautioned that current oil price volatility and capital market conditions aren’t conducive to deliver its financing plan for the core Southern North Sea project before year-end.The company which explores for and develops oil and gas properties in the North Sea said in a press release that it was ready to enter the execution phase of its core development project in the UK Southern North Sea,…

Norden Buys Medium Range Tanker Pair

Image: Norden

Danish shipowner Norden has purchased 2 South Korean-built MR product tankers from 2009. Both vessels have a deadweight capacity of 50,000 tonnes and the acquisition further expands the Norden product tanker fleet ahead of the expected market improvement towards 2020.With the purchase, the Norden owned tanker fleet has been expanded with 4 MR vessels in 2018 bringing the total Norden tanker fleet up to 58 vessels including chartered vessels.A press release from the Denmark company…

Heerema Fabrication Group Sells UK and Netherlands Yards

Image: Heerema Fabrication Group

Dutch offshore construction and engineering company Heerema Fabrication Group (HFG) intends to divest a significant part of its activities in the field of design and fabrication of complex steel constructions for the offshore market.HFG has been struggling for some time with insufficient project volume and marginal profitability. In addition, the risks associated with building topsides are high and clients are not prepared to pay for this risk.As a result of the divestment HFG…

Argus Adds New Marine Fuel Price Assessments

© Nikita Starichenko / Adobe Stock

Oil price reporting agency Argus has launched five new price assessments for low-sulphur marine fuels, ahead of new global rules capping the amount of sulphur in marine fuels, also known as bunkers.International Maritime Organization (IMO) regulations will cut the limit for sulphur in bunker fuels globally from 3.5 percent to 0.5 percent from the start of 2020."Argus is pleased to be taking the lead in bringing price transparency that enables this large and emerging oil market to advance trading in preparation for the IMO 2020 required fuels…

BY THE NUMBERS - Offshore Supply Vessels: Balanced Continued Pressure with Gradual Recovery

Credit: Alix Partners

Global consulting firm AlixPartners, in a new paper entitled, “Too many ships, too few rigs: why recovery is still a distant dream for the OSV sector,” warns that companies counting on a quick return to stability in the OSV sector are in for a rude awakening.The September report goes on to say that OSV companies continue to face pressure due to a radically changed oil industry and must take quick and decisive action in order to survive in what should be considered the ‘new normal.’Separately…

Big Oil Set to Cash in on IMO 2020 Rules

File Image (CREDIT AdobeStock / © bvigaro

The world's biggest oil traders are gearing up to cash in on big disruptions that could hit the shipping fuel market in just over a year due to new U.N.-mandated environmental rules.International Maritime Organization (IMO) regulations will cut the limit for sulphur in marine fuels globally from 3.5 percent to 0.5 percent from the start of 2020."We're going to hopefully facilitate the new rules in 2020 by helping out the industry and the participants in general to have a reasonably smooth transition…

TGS Remains Upbeat as Shares Drop

TGS CEO Kristian Johansen (Photo: TGS)

Oslo-listed seismic surveyor TGS fell more than 10 percent after reporting disappointing third-quarter results on Thursday, as oil firms were still too cautious to spend despite a raft of upbeat earnings.TGS, which maps the seabed in search of hydrocarbon deposits for oil firms, reported quarterly operating profit of $24 million, down from $26 million a year ago and missing a forecast of $37 million returned by a Reuters poll.While oil companies like Shell, BP and Total are reporting bumper profits in the third quarter…

Gulf Marine Services Bags New Contract

Image:  GMS

UAE-based Gulf Marine Services (GMS), a provider of self-propelled self-elevating support vessels (SESVs) serving the offshore oil, gas and renewable energy sectors, said it secured a new contract for one of its Small Class vessels.The new charter is for 12 months (including options) and is scheduled to commence shortly. The vessel will be supporting well intervention activities for a national oil company (NOC) in the MENA region.Duncan Anderson, Chief Executive Officer of GMS…

Electrification in a New Era for the O&G Industry

(File photo courtesy of BP)

With the recovery in oil prices, deepwater and ultradeep water oil and gas (O&G) projects are the focus of renewed interest. Project viability will come down to a continued focus on cost, but also productivity through high-performing assets. And electrification is set to drive a dramatic impact of these high-tech production facilities for more efficient operations.Following a prolonged downturn in prices, a flicker of life has returned to offshore production projects with oil recovering to around $70/barrel.

Offshore Optimism is Cautiously on the Rise

file Image (CREDIT: Harvey Gulf)

Following the path of oil prices, consolidation also follows myriad financial crises. What happens next isn’t altogether clear, but the long, deep trough for offshore energy may finally be in our choppy wake.In mid 2017, financial turnaround and financial repairs specialist Alix Partners made a bold statement regarding the beleaguered Offshore Service Vessel (OSV) marketplace. In a July 2017 report, following an analysis of 44 participants in the business, the restructuring team wrote: “The industry faces grave financial pressure…

Uniper Sees Merit in Building LNG Terminal at Wilhelmshaven

© Ernst Pieber / Adobe Stock

Germany's Uniper on Tuesday said it favors a liquefied natural gas (LNG) terminal at the Wilhelmshaven deep sea port on the North Sea coast, less than a week after peer RWE said it secured access to capacity should a rival project at Brunsbuettel go ahead."Wilhelmshaven in particular can be a suitable location, there are many arguments in favour of it," spokesman Leif Erichsen said in a written statement.He cited the port's ability to offer infrastructure for LNG vessels of all sizes and its proximity to the German long-distance gas pipeline grids and underground storage caverns in the norther

CMA CGM Margin Hit in Q2

Photo: Port of Hamburg

French shipping liner CMA CGM said that rising oil price impacted its operating income in second quarter of 2018. "Volume growth and positive net income in a market environment affected by rising fuel costs," said a press statement from the company.Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, commented on the results:"Over the second quarter CMA CGM has recorded a core EBIT margin close to the first quarter as well as a positive net income in spite of a sharp increase in fuel prices.

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…

Euronav Updates on Gener8 Merger

Image: Euronav

The acquisition of Gener8 resulted in the recognition of a gain on bargain purchase on business combination of USD 36.3 million being recorded in the consolidated statement of profit or loss in the second quarter, says Euronav.The largest NYSE listed independent crude oil tanker company in the world said that it booked a gain on bargain purchase as a result of the Net Assets acquired being higher than the consideration paid.Paddy Rodgers, CEO of Euronav said: "Completion of the…

De-risking the FPSO Renaissance

© Lukasz Z / Adobe Stock

Floating production, storage and offloading vessels (FPSOs) are in the ascendancy. The total FPSO market is now expected to grow to over $117 billion by 2024. A combination of factors, such as the recovered oil price and renewed interest in deeper, more marginal new reserves, have made these vessels the understandable choice for an industry that still remembers the travails of 2014.But nothing can be taken for granted. With an uptick in activity, operators need to be wary of supply-chain risks. Valves are a critical component of any new project and they must adhere to strict standards.

Singapore's Offshore Industry Recovering

© ligados / Adobe Stock

A big drag on Singapore's growth in recent years, the embattled offshore and marine industry, has broken a three-year losing streak. Yet industry executives aren't betting on a return to the glory days anytime soon.The industry, along with a top-class finance sector, has been a key pillar of Singapore's economic transformation into a first world economy since independence from British colonial rule in 1965 and a source of national pride. But a 2014 collapse in oil prices has resulted in thousands jobs lost…

Container-Shipping Firms Focus on Asset Optimisation

A loaded Maersk Containership underway and headed for its next port (CREDIT Maersk)

Asset quality, size and diversification will determine the success of shipping companies in the next 18 months as higher costs, tighter environmental rules and worsening global trade relations risk offsetting buoyant demand and capacity reductions.Only container-shipping companies with the biggest fleets and most efficient vessels are likely to turn a profit this year and meet longer-term challenges, says Scope Ratings in a short report out today. Container shipping is a capital-intensive business. A.P. Møller-Mærsk, the industry leader, spends around USD 1bn a year on new ships.

MISC Bags USD 441mln 16-year Charter Contract from Hess

Photo: MISC Berhad

Malayasia-based MISC Berhad  has secured a long-term charter contract from Hess Exploration and Production Malaysia  for the lease of a floating, storage and offloading facility (FSO) known as FSO Mekar Bergading on a bareboat basis. The long-term charter contract is pursuant to a sale and charter agreement between MISC and HESS in respect of the FSO, which also resulted in MISC acquiring ownership of the FSO. The investment is consistent with the MISC2020 strategy of which one…

Shelf Drilling: Higher Rig Rates, More Consolidation Coming in 2019

File Image: A typical shallow water jackup rig (CREDIT: Cathelco)

Shelf Drilling, the world's largest owner of shallow water rigs, expects to see higher rig rates in 2019 and more consolidation of the fragmented market, Chief Executive David Mullen told Reuters.   Following an initial public offering, the Dubai-based company's shares began trading in Oslo on Monday, four years after abandoning plans to list in London in the wake of an oil price downturn.   Its shares traded at 64.80 Norwegian crowns ($7.98) per share by 1023 GMT, below its initial offer of 65.35 crowns. Reporting by Nerijus Adomaitis

Rolls-Royce Chief Sets Ambitious Targets

Rolls-Royce CEO Warren East (Photo: Rolls-Royce)

Rolls-Royce (RR.L) said it would exceed its 2020 guidance as it announced new ambitious mid-term goals, sending its shares to four-year highs and reflecting investor faith that CEO Warren East can transform Britain’s best known engineering firm.The maker of engines for civil planes, military jets and ships has been in turnaround mode since 2015. Having on Thursday announced plans to cut 4,600 jobs as part of cost-saving measures, it told shareholders on Friday the foundations…

Tanker Market Grappling with More Uncertainty

© Thor Jorgen Udvang / Adobe Stock

Tanker shipping: Added uncertainty is not helpful to the struggling tankersDemandJust when you thought it could not get any worse for the tanker shipping industry, the U.S. is reimposing sanctions on Iran coming into force after a six months wind-down period ending on November 4, 2018. The immediate effects are less tangible but sure to add more uncertainty to the whole shipping industry that has plenty of uncertainty to deal with already.At the same time, freight rates for both crude oil tankers and oil product tankers are mostly in loss making territory.

Renewed Optimism is Exploration

Gross exploration wells drilled, success rates and discovered commercial resources for the W40 group of companies, 2013-2017. Source: Westwood

Renewed optimism is the theme for exploration in 2018, driven by higher oil prices and improving exploration performance. The cost of exploring has fallen more than 50% since 2013/14 and there are fewer companies competing for acreage, said a research report by Westwood Global Energy Group. It could be argued that there has not been a better time to be exploring in the last decade. The geology economic to explore increases considerably above $60/barrel and in the first quarter of 2018 the oil price averaged $67/barrel.

Maritime Reporter Magazine Cover Nov 2018 - Workboat Edition

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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