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Tuesday, May 18, 2021

Oil Storage News

22 Mar 2021

Jurong Port Buys Lim Family's Stake in Universal Terminal

© Surapol USanakul / Adobe Stock

Singapore port operator Jurong Port has completed its acquisition of a stake in a major oil storage terminal in the city-state from the family behind collapsed oil trader Hin Leong Trading Pte Ltd, a port spokesman said on Saturday.The spokesman said government-owned Jurong Port had completed the purchase of a 41% stake in Universal Terminal from the Lim family. He declined to give details on the transaction.A lawyer for the family did not immediately respond to a Reuters email…

08 Mar 2021

Brent Tops $70 after Houthi Attack on Saudi Oil Export Hub

Ras Tanura Facility - Credit:evannovostro/AdobeStock

Yemen's Houthi forces fired drones and missiles at the heart of Saudi Arabia's oil industry on Sunday, including a Saudi Aramco facility at Ras Tanura vital to petroleum exports, in what Riyadh called a failed assault on global energy security.The Saudi energy ministry said there were no casualties or loss of property from the attacks. The defense ministry said it intercepted an armed drone coming from the sea prior to hitting its target at an oil storage yard at Ras Tanura, site…

15 Feb 2021

Market Report: FPSOs ... Charting the Path Ahead

© Simon Peter / Adobe Stock

COVID-19 will continue to skew the floating production systems market for the coming 24 months, while buying power for a large portion of FPSO contracts will be centered in Brazil and Guyana/Suriname. These two areas are expected to account for more than 60% of the FPSO contracts awarded between 2021 and 2025.These are the findings shared in a recent floating production outlook report produced by International Maritime Associates (IMA) and World Energy Reports (WER).The 100+ page…

04 Feb 2021

Euronav Posts 4Q Loss. Expects Pressure on Freight Rates to Continue in 2021

Credit: Euronav

Belgium's Euronav expects pressure on freight rates to continue until late 2021, the tanker operator said as it reported weaker than expected quarterly results on Thursday, citing OPEC+ export cuts because of the COVID-19 pandemic's impact on demand for oil.The company, one of the world's largest tanker companies, benefited from soaring demand for oil storage at sea in early 2020 as buyers struggled to find space for surplus crude when demand collapsed during the first wave of the pandemic.However, reduced OPEC+ exports limited oil oversupply in the second half of the year."As a result, the ma

26 Nov 2020

China: INE, PetroChina to Deliver Marine Fuel Overseas

Alexey Novikov - AdobeStock

China's Shanghai International Energy Exchange (INE) said on Thursday it had signed an agreement with PetroChina International Co Ltd to cooperate on the overseas delivery for its low-sulfur fuel oil futures contract.Both parties have reached a consensus on cross-border overseas delivery for the marine oil and see the move as an "important foundation" for China's first futures delivery "going global", Shanghai Futures Exchange-owned INE said in a statement.This would be the first time a Chinese futures contract would be deliverable outside of China, which could boost the liquidity and increase

18 Nov 2020

China's INE Considers Singapore for Marine Fuel Futures Delivery

© Rex Wholster / Adobe Stock

The Shanghai International Energy Exchange (INE) is considering using oil storage sites in Singapore owned by PetroChina Co as a delivery point for its low-sulphur fuel oil futures contract, according to two sources with direct knowledge of the matter.The INE’s move would be the first time a Chinese futures contract would be deliverable outside of China and could boost liquidity for the contract, as well as help to influence pricing for shipping fuel.Low-sulphur fuel oil (LSFO) is required as ship fuel to meet new maritime emissions regulations that went into effect this year.

25 Sep 2020

Iran's Oil Exports Jump in September Defying Sanctions

© / Adobe Stock

Iranian oil exports have risen sharply in September in defiance of U.S. sanctions, three assessments based on tanker tracking showed, throwing a lifeline to the Islamic Republic and its collapsing economy.Exports have shrunk from over 2.5 million barrels per day (bpd) since the United States withdrew from a nuclear deal with Iran and reimposed sanctions in 2018. Still, Iran has been working to get around the measures and keep exports flowing.Data from TankerTrackers and two other firms indicated exports are rising in September…

09 Sep 2020

Sri Lanka Douses Another Fire on New Diamond Tanker. Tows it to Deeper Water

Credit: Sri Lanka Navy

The Sri Lankan navy said on Wednesday it had extinguished another fire on a stricken supertanker loaded with 2 million barrels of oil and is towing it to deeper water.The navy's disaster management team put out the fire that reignited on Monday on the MT New Diamond, and there were currently no fires burning on the ship which is 41 nautical miles (76 km) off Sri Lanka's east coast.Officials were working to assess any damage to the environment from the incident, which began on Sept.

04 Sep 2020

PDVSA Says Idled Nabarima FSO in 'Satisfactory' Condition

Credit: Cornelius Bustraan/MarineTraffic

An idled oil storage facility off Venezuela's eastern coast is in "satisfactory" condition, an official with state company Petroleos de Venezuela said, after a series of incidents in recent months raised concerns about environmental hazards.About 1.3 million barrels of Corocoro crude have been stuck for over a year aboard the Nabarima FSO (floating storage and offloading facility), part of the Petrosucre joint venture between PDVSA, as the company is known, and Italy's Eni SpA, as U.S.

27 Aug 2020

Frontline's Earnings Surge on Demand for Oil Storage

© Kelly Conner /

Oil tanker group Frontline reported a big jump in second-quarter earnings on Thursday as energy traders paid to store crude that went unsold amid the COVID-19 pandemic, the company said on Thursday.Frontline's April-June adjusted net profit rose to $206.1 million from a year-ago $4.2 million, topping a forecast of $203.3 million in a Refinitiv SmartEstimate poll of analysts."Our results for the first half of 2020 are the strongest in more than 10 years," Chief Executive Robert…

06 Aug 2020

Euronav Posts Record Q2 Result, but Says Floating Storage Demand Dissipating

An Euronav Tanker - Credit: Euronav

Belgian tanker operator Euronav reported record-high second-quarter earnings on Thursday but warned that floating storage demand had eased sooner than it expected.The company, which operates shipping and storage of crude oil, benefited from soaring demand for oil storage at sea as buyers struggled to find storage space on land for surplus crude during a global economic slump caused by the coronavirus pandemic.“Tanker markets continued to deliver strong earnings throughout Q2 and into the early part of the third quarter", Chief Executive Hugo De Stoop said in a statement, but noted floating sto

23 Jul 2020

China's Oil Port Congestion to Stretch On Well into August

Illustration only - Image by Kalyakan/AdobeStock

Congestion at China's east coast oil ports that is adding to costs for shippers and importers is likely to run well into August, with crude shipments set to hit another record high this month, according to analysts and Refinitiv data.The massive inflows are straining offloading facilities, while refiners and port operators in Shandong province -- home to a quarter of China's refining capacity -- are rushing to build new storage tanks.July seaborne arrivals into the world's biggest oil importer are expected to surge to 14.4 million barrels per day…

10 Jul 2020

Ocean Tankers' Supervisor to Start Restructuring Talks with Owners

Credit: Husni Kasman / MarineTraffic

EY, the court-appointed supervisor for Ocean Tankers Pte Ltd (OTPL), has proposed two restructuring options to the shipping company's owners and could meet with them as early as next week to discuss the plans, according to an EY report seen by Reuters.The discussions are to ascertain whether the owners - Lim Oon Kuin, his son Evan Lim Chee Meng and daughter Lim Huey Ching, or the Lim family - are "willing to support any future restructuring of OTPL", the report said.EY declined to comment.

07 Jul 2020

Iran's Oil Storage Almost Full as Sanctions and Pandemic Weigh

© Hayden / Adobe Stock

Iran has slashed crude oil production to its lowest level in four decades as storage tanks and vessels are almost completely full due to a fall in exports and refinery run cuts caused by the coronavirus pandemic, industry data showed.Total onshore crude stocks surged to 54 million barrels in April from 15 million barrels in January, and swelled further to 63 million barrels in June, according to FGE Energy.Market intelligence firm Kpler estimated Iranian average onshore crude storage for June to be around 66 million barrels.That is around 85% of available onshore storage capacity."However…

20 May 2020

Frontline Says Floating Oil Storage May be Close to Peak

© William Parein-Luc /

The volume of crude stored on oil tanker vessels is currently estimated to around 200 million barrels and may be close to a peak, tanker group Frontline said in its first quarter results presentation on Wednesday."We are likely to see an unwind of floating storage in 2H 2020," it added.Even with output cuts from top producing nations, decreased oil demand caused by the coronavirus pandemic has created a major oil glut and a sharp uptick in floating oil storage on board tankers at sea.Hugo De Stoop…

12 May 2020

DNV GL's Ørbeck-Nilssen: Maritime 'Renaissance' Could be on the Horizon

Knut Ørbeck-Nilssen, CEO Maritime, DNV GL

As COVID-19 and a historically weak energy market wreaks havoc on maritime, Knut Ørbeck-Nilssen, CEO Maritime, DNV GL, tells Maritime Reporter & Engineering News in its May 2020 edition that this could be the beginning of a Renaissance period for the industry. "Everything will be looked at with new eyes, it’s going to be a renaissance for the maritime world and I think we’ll have a lot of innovation and new ideas," said Ørbeck-Nilssen. "Things that we’ve traditionally done for years simply will not hold up…

12 May 2020

ESVAGT Delays Investments, Cuts Salaries

Image Credit: ESVAGT

Danish offshore vessels owner ESVAGT will cut executive and staff pay, and delay investments in response to the low oil prices and the COVID-19 pandemic.Peter Lytzen, the CEO of the company that provides emergency response and rescue vessels (ERRV) and service operation vessels (SOV), said, "Our oil and gas business is challenged in two essential areas of the current situation.""The fact that oil storage is full and oil and gas prices are low means that no investments are being made in well drillings. This has an impact on the ERRV spot market, which is a considerable part of our business.

08 May 2020

Euronav Sells 2005-Built VLCC for $38M

TI Hellas - Credit: Euronav

Tanker operator has sold its 2005-built Very Large Crude Carrier (VLCC) TI Hellas for $38.1 million.Euronav, based in Belgium, said Friday that a capital gain of around $1.6 million will be recorded in the current quarter from the sale of the VLCC:"The vessel will be delivered to her new owners at the end of May after completion of the current voyage. Euronav considers regular fleet rejuvenation an important function of vessel management in providing quality services to our clients…

07 May 2020

Euronav Posts Record High 1Q Results

(File Photo: Euronav)

Leading tanker operator Euronav posted record high first-quarter results on Thursday and expects strong demand for oil storage at sea to continue in 2020, driving its shares up 8.5%.The world is still struggling with an oil glut due to a drop in demand caused by the coronavirus even after top oil producing countries have cut output. The glut has prompted a scramble to find storage options on land and sea.Hugo De Stoop, chief executive of Belgian group Euronav, said floating storage…

06 May 2020

Crude Oil Tanker Earnings Drop 68% in Nine Days -BIMCO

© Björn Wylezich / Adobe Stock

Crude oil tanker earnings have come down sharply in recent weeks with very large crude carrier (VLCC) earnings from the Middle East Gulf to China dropping 68% in just nine days (from $222,591 per day on April 22 to $71,885 per day on May 4), according to BIMCO. In the same period, daily VLCC earnings from the Middle East Gulf to the U.S. Gulf have plunged nearly 80% (from $162,433 per day to $36,249).The window of extraordinary earnings closed at the end of April with the OPEC+ oil production cuts of 9.7 million barrels per day (bpd) on May 1, reducing the flood of oil in the market.

24 Apr 2020

Oil Storage Crunch May Affect Guyana Crude Shipments

Liza Destiny - Image by Rolf Jonsen/MarineTraffic

Oil shipments from nascent crude producer Guyana's prolific Liza field could be affected by a growing storage glut that has contributed to plunging global crude prices, the country's director of energy said.A consortium led by Exxon Mobil began producing crude from the offshore field in December after discovering more than 8 billion barrels of recoverable resources together with partners Hess Corp and China's CNOOC Ltd. The poor South American country had no history of crude production.But…

22 Apr 2020

Oil Traders Chase Storage Space in World Awash with Fuel

© Kalyakan / Abobe Stock

Oil traders are struggling to find enough ships, railcars, caverns and pipelines to store fuel as more conventional storage facilities fill up amid abundant supply and plummeting demand due to the coronavirus crisis.Dozens of oil tanker vessels have been booked in recent days to store at least 30 million barrels of jet fuel, gasoline and diesel at sea, acting as floating storage, as on-land tanks are full or already booked, according to traders and shipping data.That adds to about 130 million barrels of crude already in floating storage…

01 Apr 2020

Oil Storage at Sea Approaching Record Levels

© aerial-drone / Adobe Stock

Oil traders are storing as much as 80 million barrels of oil on tankers at sea, with further ships being sought as land storage sites fill up fast due to a global glut of stocks, shipping industry sources say.Traders rushed for storage after global oil demand collapsed by a third due to the coronavirus outbreak, and as top producers Saudi Arabia and Russia have refused to curb output so far, creating what is believed to be the biggest oil glut in history.The last time floating storage reached similar levels was in 2009…

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