Marine Link
Saturday, August 18, 2018

Oil Production News

Oil Tight on Libyan Port Struggles

Image:  © cherezoff/Adobe Stock

Libyan oil production could face protracted disruption as factions in the east seek to seize control of crude exports, adding pressure to a tight global market. Eastern factions have tried to take over oil exports in the past but have struggled to find buyers because Western nations insist they will deal only with the internationally recognised National Oil Corporation (NOC) based in the Libyan capital of Tripoli. But this has not stopped eastern forces from seeking control of the ports, accusing Libya's western-based government of failing to share revenues fairly.

Petrobras Output in Campos Drops to Lowest Level in 17 Years

(File photo courtesy MODEC)

Oil production by Brazilian state-led Petroleo Brasileiro SA in the Campos basin fell 1.4 percent in June over the previous month to 1.042 million barrels a day, its lowest level since 2001, as mature fields decline, according to company data.Output has dropped 15.8 percent in 12 months due to the ageing of fields off-shore from Rio de Janeiro and Espirito Santo that account for almost half of the crude pumped by Petrobras.

FPSO at Jubilee Oil Field to Close for Fix

Photo: Tullow

The production vessel at Tullow's flagship Jubilee oilfield off Ghana's west coast will shut down next week for 21 days while it undergoes repairs, the country's power utilities said on Monday. The planned shutdown next Monday of the Kwame Nkrumah production vessel, which currently produces both oil and gas, will result in a cut to offshore gas supply, the companies said in a statement. They said any loss of power generation would be offset by generating additional power from the eastern port of Tema area. Tullow did not immediately respond to a request for comment.

Interview: Mark Knoy, President and CEO, ACBL

Mark K. Knoy, president and CEO of American Commercial Barge Line

American Commercial Barge Line (ACBL) named Mark K. Knoy as its president and chief executive officer in August 2011. Prior to joining ACBL, he was vice president of American Electric Power’s (AEP) Fuel, Emissions and Logistics Group and president of AEP River Operations, having joined AEP with its 2001 purchase of MEMCO Barge Line. From 1984 to 1994, he was owner/operator of The Mark Twain Towing Company and Delmar Marine, Inc., Pekin, Illinois. He began his career in 1973 working aboard towboats on the inland waterways as a deck hand and then as a captain.

Key Oil Export Terminals Reopen in Libya

Damage at Ras Lanuf terminal June 18, 2018 (Photo: NOC)

Tripoli-based National Oil Corp (NOC) said on Wednesday four export terminals were being reopened after eastern factions handed over the ports, ending a standoff that had shut down most of Libya's oil output.Production and export operations would be restored "within the next few hours", an NOC statement said, although the restart at Es Sider and Ras Lanuf, where workers were evacuated and storage tanks damaged in fighting last month, was expected to be gradual.A tanker at Hariga was due to start loading 1 million barrels of crude on Wednesday afternoon…

An Unlikely and Remarkable Safety Journey

(Credit: Gregory Thorp)

Late last year, the Transportation Research Board released a major study that was undertaken “in response to the rapid development of domestic sources of energy and questions about the safest ways to move these products.” The Study Committee examined the operational responses of the three primary modes impacted by the fracking revolution – rail, pipeline and maritime. A primary observation of this work was that that the “Marine Transportation System Offers a Model for Robust Safety…

Eni to Invest $1.8 Bln in Offshore Mexican Oil Fields by 2040

Eni CEO Claudio Descalzi(Photo: Eni)

Italian oil major expects to invest $1.795 billion in three offshore Mexican oil fields by 2040, according to a development plan approved by Mexico's oil regulator on Tuesday.The plan covering the Amoca, Mizton and Tecoalli shallow water fields is the second one approved by the regulator, known as the National Hydrocarbons Commission (CNH), following a landmark 2013 energy opening that has led to more than 100 oil and gas contracts being awarded in a series of auctions.Eni sees initial crude oil production of 8…

Valero Boosts Imports of Venezuelan Oil as Sanctions Loom

© sarojmornparn / Adobe Stock

U.S. refiner Valero Energy Corp this year boosted its imports of Venezuelan crude ahead of U.S. sanctions over the country's disputed presidential election and as other customers received less of the OPEC-member's exports, according to Thomson Reuters trade flows data.Venezuelan oil production has tumbled to a multi-decade low this year, cutting shipments to buyers in the United States and elsewhere and worsening a severe economic recession. Its crude exports averaged 1.19 million barrels per day (bpd) in the January-April period…

Libya Oil Output Slashed by Port Attacks

On Monday the National Oil Corporation confirmed the loss of storage tanks 2 and 12 at the Ras Lanuf port terminal (Photo: NOC)

Libya has lost some 400,000 barrels per day (bpd) of oil production in recent days because of militant attacks at the Ras Lanuf and Es Sider ports, the head of the National Oil Corporation, Mustafa Sanalla, said on Tuesday.Sanalla said there were still militants present in the area of the terminals, which were closed on Thursday following an early morning attack by opponents of eastern-based Libyan commander Khalifa Haftar."We look to fight the fire first of all, stabilise the situation…

New Water Booster Pumps for Polvo FPSO

© Kyksin D. / MarineTraffic.com

As part of the life extension project for the Polvo Floating production storage and offloading (FPSO) vessel, operator BW Offshore has contracted Norwegian based liquid handling and pump specialist PG Flow Solutions to supply new water booster pumps.PG Flow Solutions said its scope of work includes the engineering, procurement, assembly of pump skid and commissioning of two produced water booster pumps in super duplex materials, with 150kW electrical motors, variable frequency drives and pressurized seal system.“After a couple of challenging years for the Brazilian offshore industry…

US Military Seeks Rules for Drilling in Gulf of Mexico

File photo: U.S. Navy personnel detonate a floating mine during an exercise in the Gulf of Mexico (U.S. Navy photo by Patrick Connerly)

An expansion of oil drilling in the eastern Gulf of Mexico would interfere with U.S. military testing unless the Pentagon and another agency develop rules to govern the work, the U.S. Department of Defense said in a report this week.The Defense Department concluded in a report it sent on Wednesday to U.S. lawmakers that drilling east of the Military Mission Line in the Gulf of Mexico, a demarcation more than 200 miles (320 km) west of Florida, would harm military testing operations…

Struggle to Control Libyan Oil Ports Adds to Global Supply Worries

Libyan oil production could face protracted disruption as factions in the east have sought to seize control of crude exports, adding pressure to a tight global market.Eastern factions have tried to take over oil exports in the past yet struggled to find buyers as Western nations insist they will only deal with the internationally recognised National Oil Corporation (NOC) based in the Libyan capital of Tripoli.But this has not stopped eastern forces from seeking control of the ports, accusing Libya's western-based government of failing to share revenues fairly.The latest tussle for power has already slashed national production to about 600…

BP to Boost Stake in UK's 'Giant' Clair Field

BP's Clair Ridge platform. Photo: BP

BP announced that it has entered into agreements with ConocoPhillips that will significantly increase its holding in the Clair field, a core asset of BP’s North Sea business in the UK, while also selling its non-operating interest in the Kuparuk and satellite oilfields in Alaska. BP has entered into an agreement to purchase from ConocoPhillips a 16.5% interest in the BP-operated Clair field, west of Shetland in the UK, buying a ConocoPhillips subsidiary that will hold this interest in the field. As a result, BP will hold a 45.1% interest in Clair and ConocoPhillips will retain a 7.5% interest.

Oil Falls After Libyan Ports Reopen, Trump Tariff Threat

© Kovalenko I / Adobe Stock

Global oil benchmark Brent fell more than $2 a barrel on Wednesday after U.S. President Donald Trump threatened to levy new tariffs on China and Libya announced the reopening of key oil export terminals.The spectre of tariffs on a further $200 billion of Chinese goods sent commodities lower along with stock markets, as tension between the world's biggest economies intensified.Brent crude fell $2.10, or 2.7 percent, to a low of $76.76 before recovering slightly to $77.20, down $1.66, by 1325 GMT. U.S.

Petrobras to Start Up Four New Platforms in Q4

© Rafael Silva / MarineTraffic.com

Brazil's state-controlled oil company Petrobras will start pumping pre-salt oil from four new platforms between October and December, the company's director for production and technology development Hugo Repsold said on Wednesday.Speaking to reporters at an oil industry event, he said Petrobras could study building its own platforms after 2022 and predicted the company would head towards sustainable growth of oil production in the next few years.The four new platforms in the Santos basin are the P-67 and P-69 in the Lula oil field, and the P-75 and P-76 in the Buzios fields.

Global FPSO Market to Exceed USD 115 bln by 2024.

Image: BW Offshore

Global FPSO Market is anticipated to witness growth of 19% and exceed USD 115 billion by 2024. Rising demand of hydrocarbons and increase drilling activities for exploration and production will drive the industry growth.Increase in the conversion of vessel to FPSO to augment the productivity and minimize the capital expenditure may complement the business growth, said a report from Global Market Insights.Converted FPSO market is witnessed to grow over 18%. Comparison with new built…

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.

China Surprises with Threat on US Energy Exports

© Dale Stagg / Adobe Stock

Beijing surprised oil markets with threats to levy tariffs on imports of U.S. crude oil, natural gas and other energy products on Friday, just as China has risen to the top of the list of importers of oil from the United States.China responded to $50 billion in tariffs imposed by U.S. President Donald Trump with a similar amount of levies on a variety of U.S. goods. But China also said it would impose tariffs on U.S. energy products, which analysts considered a surprise as previous tariff threats had centered on agricultural goods and automobiles."This is a big deal.

Total Determined to Drill Amazon Basin as Greenpeace Storms AGM

(Image: Total)

Total is determined to push ahead with its plans to drill for oil in the Amazon basin, it said on Friday as Greenpeace activists interrupted its annual general meeting in protest at the project.The French oil major wants to explore Brazil's Foz do Amazonas basin, but Brazil's environmental agency rejected its licence application on Tuesday for a fourth time.As the company's annual general meeting opened in Paris on Friday, four activists from Greenpeace descended by rope from the ceiling above the stage…

Oil Traders Ready for Musical Chairs as China Tariffs Loom

© Haris / Adobe Stock

Oil markets are bracing for a reshuffle of global trade flows as China threatens to impose tit-for-tat tariffs on imports of U.S. energy products, including crude.China, which has bought an average 330,000 barrels per day (bpd) of U.S. crude oil this year, is threatening to place a 25 percent tariff on various U.S. commodity exports, including crude oil, although it is so far unclear when such a measure would come in place.The decision came in response to U.S. President Donald…

Trump Rails Against Oil Prices, OPEC Pushes Back

© Igor Groshev / Adobe Stock

U.S. President Donald Trump accused OPEC on Friday of "artificially" boosting oil prices, drawing rebukes from some of the world's top energy exporters."Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea. Oil prices are artificially Very High! No good and will not be accepted!" Trump wrote on Twitter.It was unclear what triggered the tweet, Trump's first mention of OPEC on social media during his term.U.S. oil prices are near a three-year high…

Euronav Freight Rates Sag in Challenging Market Conditions

File Image: A euroNav VLCC underway at sea (CREDIT: EuroNav)

Belgian tanker operator Euronav's average spot rates for its very large crude carriers (VLCCs) fell 53.8 percent to $18,725 per day in the first quarter, as challenging conditions continued in the freight market, the company said on Wednesday. Tanker companies have been suffering from a glut of excess capacity which has weighed on rates, while OPEC oil production cuts have added to the pressure. "The rebalancing of the tanker market requires further affirmative action in reducing primarily older tonnage…

Buckeye Partners JV Announces Marine Terminal in Texas

Photo: Buckeye Partners, L.P

Buckeye Partners announced the formation of a joint venture with Phillips 66 Partners and Andeavor to develop a new deep-water, open access marine terminal in Ingleside, Texas. The South Texas Gateway Terminal will be constructed on a 212 acre waterfront parcel at the mouth of Corpus Christi Bay. The facility is positioned to serve as the primary outlet for crude oil and condensate volumes delivered off of the planned Gray Oak pipeline from the Permian Basin. The terminal, to be constructed and operated by Buckeye…

Maritime Reporter Magazine Cover Aug 2018 - The Shipyard Edition

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