Offshore: OSV Market Report
The environment in oil patches onshore and offshore alike has been challenging throughout 2019; worries about an economic slowdown – whether cyclical or induced by a trade war – have weighed heavily on oil prices, even in the face of reduced production by the big producers. Though storm clouds persist, there appears a clearing on the horizon.The fate of Offshore Service Vessels (OSVs) is, naturally, closely tied to the price of oil. Seacor Marine’s John Gellert, in reviewing its Q2 results, said: “Activity levels in the U.S.
ZF Unveils Condition Monitoring for Thruster Systems
Marine propulsion systems company ZF has introduced an intelligent Condition Monitoring System for thrusters. The technology monitors the status of the thruster system and helps shipyards, shipping companies and fleet operators maintain the safety and efficiency of their ships as well as extend the service life of the propulsion system. In addition to that, a new oil cleaning system ensures oil quality and prolongs oil service life.ZF’s Condition Monitoring System is equipped with various sensors and an intelligent electronic evaluation unit.
Optimarin Gears Up for BWMS Retrofit Wave
Optimarin is growing its staff to effectively handle the growing wave of ballast water management system refit activity.The company, which expects to double its turnover this year, has employed Leiv Kallestad as its new CEO, allowing Tore Andersen, the incumbent, to spend his time enhancing market focus and customer service. In order to handle the expected surge in retrofit installations, expected to peak in 2022-23, Optimarin will now make plans for additional expansion, with growth in the technical and sales departments.Optimarin has now sold 750 of its simple…
One Dead After Saipem Vessel Blast
One of the 14 people injured after an explosion on a pipe-laying vessel in the Caspian Sea operated by Italian oil service group Saipem has died, a Saipem spokeswoman said on Monday.The explosion took place on May 8."Saipem deeply regrets to advise that one person who has been in most critical conditions has passed away," an Azerbaijan-based spokeswoman said.(Reporting by Stephen Jewkes; Editing by Mark Potter)
Ocean Yield Takes Delivery of New Ship
Norway-based ship owning company Ocean Yield ASA announced that it has taken delivery of the very large crude carrier (VLCC) "Nissos Rhenia".The tanker was delivered from the yard Hyundai Heavy Industries in South Korea and is the first in a series of four VLCCs that will be delivered to the company in 2019.Upon delivery, the vessel commenced a 15 years' bareboat charter to Okeanis Eco Tankers Corp with a 5 years' sub-charter to Koch Shipping Pte. Ltd.Okeanis Eco Tankers was…
Ocean Yield Buys a Suezmax Tanker
Norwegean ship owning company Ocean Yield ASA has announced that the Company has agreed to acquire a modern Suezmax tanker for a consideration of USD 56.0 million with 13-year bareboat charter to Okeanis Eco Tankers Corp.The purchase price includes a seller's credit of USD 7.0 million, giving a net purchase price of USD 49.0 million, said the owner of vessels within oil-service and industrial shipping areas in Norway.The vessel, "Milos", was built in 2016 by Sungdong Shipbuilding in Korea and is a sister vessel to "Poliegos", another Suezmax vessel owned by Ocean Yield.
Ocean Yield in Standstill Pact with Solstad Offshore
Norway-based company engaged in the investment in vessels within oil-service and industrial shipping Ocean Yield ASA has entered into a standstill agreement with Solstad Offshore for two anchor handlers built in 2013, the Far Senator and Far Statesman.Ocean Yield said in a stock exchange annoucement that it has entered into a 6 month standstill period with respect to payment of interest, instalments and charter hire."To the extent the cash in these subsidiaries exceeds NOK 300 million on a consolidated basis…
Bergen Group: New CEO, CFO
Norway's Bergen Group has appointed Nils Hoff as its new CEO and Morten Riiser as CFO, effective Thursday.Hoff succeeds Torgeir Nærø, who has resigned as CEO to pursue other opportunities. The outgoing cheif executive will take on an advisory position until the end of Q1 2019.Bergen Group ASA board chairman Hans Petter Eikeland considers the change a natural consequence of the upcoming merger with Stavanger-based oil service company Endùr Holding AS (owner of Endùr Fabricom AS).
Solstad Seeks Creditor Talks Amid Sluggish Recovery
Norwegian oil service vessels (OSV) firm Solstad Offshore is seeking negotiations with creditors and other stakeholders to boost liquidity ahead of the slow winter season, the company said on Monday, sending its shares down 20 percent."We were all too optimistic about when the recovery will happen," Chief Executive Lars Peder Solstad told Reuters. "2019 will probably be a bit better, but we will need to wait until 2020 or 2021 to see the rates rising to reasonable levels."The largest owners of Solstad are billionaire investors Kjell Inge Roekke and John Fredriksen…
Borr Drilling Aims to Start Paying Dividends by 2020
Drilling rig contractor Borr Drilling aims to start paying dividends by 2020, the company's founder and chairman, Tor Olav Troeim, said on Wednesday.Troeim, a former business partner of Norwegian billionaire John Fredriksen, founded Borr Drilling at the end of 2016 and the company has quickly grown into one of the largest owners of jack-up rigs which drill in the shallow waters.Schlumberger, the world's top oil service firm, is Borr Drilling's largest shareholder with a stake of 14.2 percent."We have an ambition to return a significant part of cash back to shareholders quickly ...
Bergen Group Merges with Endúr Fabricom
A merger agreement between Bergen Group ASA and oil service company Endúr Fabricom will create an industrial group based in western Norway with close to 400 employees and an order book exceeding NOK 1 billion. The combined company will have considerable presence in both the oil and gas markets, in maritime service and towards the aquaculture industry.Hans Petter Eikeland, Chairman of the Board at Bergen Group ASA, states that the merger agreement has full support from the company's main shareholders…
Vestas, Maersk Tackle wind turbine Transport, Installation Costs
Project has secured $7.3 mln in public funding; sector races to build ever bigger turbines. Danish wind turbine maker Vestas and offshore services firm Maersk Supply Service are teaming up to tackle the cost of transporting and installing ever larger wind turbines. Seeking to remain profitable as European countries phase out subsidies, the industry is turning to ever bigger turbines to harness power more efficiently and respond to pricing pressure for new equipment around the globe. Vestas and fellow Danish company Maersk Supply Service, part of A.P.
SeaBird Exploration Appoints Hans Petter Klohs as CEO
SeaBird Exploration, a global provider of high end 2D, source and shallow water 2D/3D seismic services and associated products to the oil and gas industry, appointed Hans Petter Klohs as new CEO of the Company. The Board of Directors of the Company announced that The appointment takes effect as of 24 June 2018. Klohs has extensive senior executive management experience from Norwegian publicly listed entities in both oil service and oil & gas. Previous senior positions include serving as CFO and later as CEO in GC Rieber Shipping ASA for over 10 years…
Helix Energy Cuts Q2 Loss
Oil service company Helix Energy Solutions has narrowed its loss in the second quarter of 2017 backed by increased activity of its well intervention business. Mainly North Sea operations helped narrow the firm’s losses. The group, which controls Aberdeen based Helix Well Ops and Canyon Offshore, reported a net loss of $22.9million for the first six months of the year, compared to $38.5million in the same period last year. It reported a net loss of $6.4 million for the second quarter of 2017 compared to a net loss of $10.7 million for the same period in 2016.
Venezuela Ships More Oil to US in July vs June
Venezuela's PDVSA and its joint ventures last month shipped 638,325 barrels per day (bpd) of crude to the United States, a 30 percent increase over June due to larger sales of upgraded oil, according to Thomson Reuters trade flows data. Venezuelan crude output has declined this year to its lowest point in 27 years due to a lack of investment and payment delays to oil service firms, affecting exports to customers in key markets including the United States. Even though the volume of crude sent to the United States in July was larger than the previous month, it was 22 percent below the same month in 2016. The main U.S. receiver of Venezuelan crude last month was refiner Valero Energy, followed by PDVSA's refining unit in the United States, Citgo Petroleum.
New Wind Farm Service Vessel for ESVAGT
A 15-year contract will see a new ESVAGT service operation vessel (SOV) support MHI Vestas Offshore Wind in the Deutsche Bucht (DeBu) Wind Farm project. ESVAGT will deliver the SOV for MHI Vestas in August 2019. The new contract is not only the longest in ESVAGT’s history, but it is also the largest in terms of value. “This contract builds on the strong relationship we have had with MHI Vestas since 2010,” said ESVAGT A/S Chief Executive Officer, Søren Nørgaard Thomsen. MHI Vestas and ESVAGT have collaborated on the Belwind 1 and Nobelwind 1 offshore wind farm projects in Belgium since 2010…
Borr Drilling Aims to Expand Fleet, Keep Costs Low
Borr Drilling, the Norwegian drilling start-up, which listed on the Oslo exchange on Wednesday, said it aimed to expand its fleet, taking advantage of its low cost base. The start-up, launched last year and backed by the world's biggest oil service firm Schlumberger, said it aimed to have the lowest cash break-even costs in the industry and would take advantage of current low prices for rigs. "We have no debt," Borr's Chief Executive Simon Johnson told Reuters after its shares started trading on Oslo's main market. They were previously listed on the over-the-counter market. "That might change in the future, depending on the financing needs, but we can control what we pay for assets," Johnson said.
Akastor, Mitsui Seek To Expand Partnership
Akastor ASA (AKA), an oil service investment company, announced that it is in advanced discussions with Japan-based Mitsui & Co to further expand their current partnership to include AKOFS Offshore (AKOFS). The parties have entered into a Memorandum of Understanding (MoU). As per the MoU, Mitsui, together with potential partners, will invest in AKOFS by purchasing 50% of the shares in the company to form a new 50-50 joint venture. The Transaction is expected to result in an initial net cash release to Akastor of approximately USD 142 million for the shares in AKOFS…
Offshore Oil Service Firms Dominate Energy Bankruptcies
Offshore oil drilling and service companies, hurt by the energy industry's shift to lower-cost shale and away from deepwater projects, are dominating the year's energy bankruptcies in North America, according to law firm Haynes and Boone. There were fewer oilfield service companies seeking protection this year than last but those that did have had larger debts. Through October, 44 oilfield services companies filed for bankruptcy in the United States and Canada owing creditors $24.8 billion, compared with 72 companies and $13.48 billion for all of 2016.
Mexico's Oil Reform a Boon for Hard-hit Oil Service, Seismic Firms
Oil service and mapping firms still emerging from an industry recession have received a boost from about $800 million of data sales to energy firms considering bidding for Mexican oil and gas blocks. Mexico will on Wednesday hold its most important auction since a 2013 reform ended the 75-year monopoly on the energy sector held by state-run oil firm Pemex. The government of President Enrique Pena Nieto hopes the deepwater sale will attract tens of billions of dollars of investment to turnaround a slump in the country's oil output. Seven previous auctions drew investment pledges of $61 billion.
CEO Haugan Leaves Kvaerner to Lead Aker Energy
Jan Arve Haugan resigns as President & CEO of Kvaerner, and from March 1, 2018, he will start his new role as CEO of the newly established oil company Aker Energy. Idar Eikrem, Executive Vice President and Chief Financial Officer in Kvaerner, is appointed interim CEO. Haugan has been President & Chief Executive Officer with Kvaerner since its demerger from Aker Solutions and stock listing in the summer of 2011. "Under Jan Arve Haugan's management, Kvaerner has developed into a leading, renowned oil service company with EPC services as our specialty.
Asian Oil, Gas Producers Stepping up Activity after Long Lull
Asia's oil and gas producers are starting to revive projects aimed at deflating years of ballooning energy imports after new investment dried up following the 2014 industry crisis. Spending has so far been driven mainly by state oil companies such as India's ONGC, Thailand's PTTEP and PetroVietnam, which need to produce more oil and gas to ensure their countries' energy security, executives said this week during an industry event in Kuala Lumpur, Malaysia. Asia is by far the biggest, fastest-growing consumer of oil, yet its output is falling faster than in any other region.
Maersk Likely to Shelve Plans to List Drilling Division
Shipping group A.P. Moller-Maersk is likely to shelve plans to list its struggling offshore drilling division because of weak market conditions, according to five finance sources familiar with the matter.The Danish company is now expected to focus on a trade sale of Maersk Drilling, and extend the timeline to divest the unit beyond its initial target of the end of 2018, said the sources who declined to be named as the discussions are private.Maersk group has not publicly put a price tag on the division…