Odfjell, Sinochem Form Chemical Tanker Pool
Odfjell SE said it has signed Framework Agreement with Sinochem Shipping Singapore Pte. Ltd whereby the Norwegian ship owner will take four vessels on long-term bareboat charter and together form a pool of eight 40,900 dwt chemical tankers. The four chemical tankers are part of Sinochem’s series of eight ordered from Hantong Wing Shipyard in China. Sinochem will retain ownership of the series’ four other vessels, which together with the bareboat vessels will form a pool managed by Odfjell SE and trading as part of the Odfjell Tankers fleet.
Sinochem Implements DNV GL's ShipManager to 80 Vessels
China’s Sinochem International Logistics, a leading chemical tanker owner and operator with 80 vessels, is implementing DNV GL’s data smart fleet management system ShipManager on the entire fleet, optimizing operations and improving performance and efficiency. The contract was signed in April at the opening of DNV GL’s newbuilt near-zero-emission Green Office Centre in Shanghai, with the Norwegian Prime Minister Erna Solberg in attendance, in addition to two of her cabinet members.
KR Fleet Tops 30m GT
The surge in fleet size – up almost 4 million gt from last year – has been driven largely by 2007’s healthy newbuilding market and includes a wide range of vessels including bulk carriers and tankers (to be built according to IACS Common Structural Rules), containerships, VLOCs and PCTCs. “We’ve been focusing on international growth and the Chinese market has been a particular target. We’ve expanded our resources in China to provide a wide-range of technical support to the local shipyards and opened two additional Chinese branch offices in Nanjing and Ningbo. As a result, of the 143 new KR-classed vessels being build outside Korea, 69 are to be built in China.
China Crude Cargoes Stranded on VLCCs
About 4 million barrels of crude oil bought by a Chinese state trader for the country's strategic reserves have been stranded in two tankers off an eastern port for nearly two months due to a lack of storage. The delays will cost millions of dollars and indicate how China is struggling to import record amounts of crude if storage and port capacity at Qingdao, its largest oil import terminal, are unable to keep pace. Ocean Lily and Plata Glory, two very large crude carriers (VLCCs) carrying oil for Sinochem Corp, arrived at Huangdao, Qingdao's main oil terminal, in early September, and both were still at anchor this week, waiting to unload, according to Reuters' shipping data, and trade and port sources.
Adyard Completes $ 5.5m Atlantis Contract
Adyard L.L.C has completed a contract from Atlantis Holding Norway AS a wholly-owned subsidiary of Chinese giant Sinochem Corporation. The $5.5m deal involved the fabrication, load out and transportation of the jacket and topsides for an off-shore platform, to be used by Atlantis for the development of the Um Al-Quwain gas field in the UAE.
China Planning $100 bln Merger of Sinochem, ChemChina
Chinese state-owned chemical companies Sinochem Group and ChemChina are in discussions about a possible merger to create a chemicals, fertilizer and oil giant with almost $100 billion in annual revenue, reports Reuters. The deal was reportedly proposed by China’s central government. “The government has given the mandate to let Sinochem lead in this potential merger with ChemChina,” said a source. The combination of the two Chinese rivals is part of a broader strategy by the regulatory…
CMES Confirms Order for 10 VLCCs
The board members of China Merchants Energy Shipping (CMES) has approved of a plan to order an additional 10 eco-friendly VLCCs. These vessels will be operated by CMES’ Hong Kong-based subsidiary, China VLCC Company Limited, a tanker JV between CMES and Sinotrans & CSC Group. China VLCC was set up in early September, will be in charge of vessel operation. CMES added that it would disclose more details on the announcement once the contracts on construction of the energy saving tankers are signed. Potential value of the deal is expected to reach around USD 920 million.
Sinochem Becomes Partner in Peregrino Field
Statoil ASA (OSE: STL, NYSE: STO) has agreed to sell 40% of the Peregrino field offshore Brazil to Sinochem Group. Statoil maintains 60% ownership and the operatorship of the field which is set to start production in early 2011. “The transaction confirms the high quality of the Peregrino asset, reflecting Statoil's value added through the field development. The transaction demonstrates Statoil’s ability to leverage its industrial competence developed at the Norwegian Continental Shelf, and realize value for our shareholders.
Statoil Q2: High Activity, Good Operations
Statoil's (OSE:STL, NYSE:STO) second quarter 2010 net operating income was NOK 26.6 billion, compared to NOK 24.3 billion in the second quarter of 2009. The quarterly result was affected by a 32% increase in liquids prices measured in NOK, a 6% increase in equity production and a 12% decrease in gas prices measured in NOK. Also impairments, loss on derivatives and a provision for an onerous contract influenced net operating income. Adjusted earnings in the second quarter 2010 were NOK 36.4 billion, up 25% from second quarter 2009 when adjusted earnings were NOK 29.2 billion. Net income in the second quarter of 2010 was NOK 3.1 billion.
Statoil, Petrobras Struck Oil on Indra Prospect in Brazil
Petrobras is operator for licence BM-ES-32, where the discovery was made and where Statoil holds a 40% stake. The exploration well was drilled at a depth of 2,130 metres and both oil and reservoir quality is good. The reservoir thickness is approximately 70 metres and is of good quality. The preliminary analysis of the oil shows a density in the range between 25 and 30 degrees API. The Inndra find was made by the semi-submersible rig Paul Wolfe. The location is situated 140 kilometres from land and some 400 kilometres north of the Peregrino field. At the moment Statoil is also participating in exploratory drilling in the Campos basin on licence BM-C-33, where Repsol is the operator.
Maersk FPSO Sold
The unit has been in use at the Statoil-operated Peregrino field in Brazil since production start-up in 2011. The global FPSO contractor BW Offshore will take over operation of the FPSO after a transition period of about six months. The Peregrino FPSO project was initiated in 2007 and the conversion from a very large crude carrier (VLCC) to a complex offshore oil production installation required more than 15 million labour hours and an investment in excess of USD 1 billion. At present the vessel is operating in the Campos Basin 85 km off Rio de Janeiro, Brazil.
Sinochem, Sonangol Ink 10-year Supply Pact
China's state-run Sinochem Group said on Wednesday it had signed a deal with Angolan state-owned producer Sonangol to buy crude oil for more than 10 years. The statement on the Chinese company's website did not give details of the supply amount or other financial details, but trading sources said the agreement was for four or five cargoes per month, which would make the company one of the largest holders of monthly contracts to buy Angolan crude. There are currently around 15 cargoes given to these so-called term buyers each month from Angola's export programmes of roughly 55 cargoes. The deal is a coup for Angola, as OPEC members fight for market share, particularly in China, the world's largest energy consumer.
Norway's Prince Officially Opens Peregrino
Norway’s Crown Prince Haakon officially opened the Statoil-operated Peregrino oil field offshore Brazil today in a ceremony aboard the floating production storage and offloading ship (FPSO). The event was attended by relevant authorities and international journalists. Crown Prince Haakon was accompanied by Norwegian petroleum and energy minister Ola Borten Moe, Statoil CEO Helge Lund, Norwegian ambassador to Brazil Turid Eusebio, and Brazilian mines and energy minister Edison Lobão. The guests were first led on a tour of the FPSO, followed by an official opening ceremony.
China Gobbles up Angolan Oil in Rush to Year End
China's loadings of West African crude are set to hit their highest in more than two years in November as the nation's refineries race to stock up and offset falling domestic oil production, according to a Reuters survey of shipping fixtures and traders. China's November West African crude oil loadings, the bulk of it Angolan, are on track to reach 1.2 million barrels per day (bpd), the highest since September 2014, the survey showed on Monday. December bookings are already expected to be similarly strong. "Domestic production declines and stockpiling continue to generate demand for crude," said Michal Meidan, Asia analyst with Energy Aspects.
China to Import 335 MT of Naphtha, Wants More
China is set to import more than 335,000 tonnes of naphtha and diesel, rare moves for the world's no. 2 oil consumer given it has been self-sufficient at meeting domestic oil product demand, industry sources said on Friday. Unipec, the trading arm of top Chinese oil firm Sinopec, has bought more than 300,000 tonnes of naphtha for delivery into China. Traders said the firm rarely buys specifically for China. State-run Sinochem has bought at least 35,000 tonnes of diesel for October-to-November delivery and could import more, industry sources said. CNOOC and PetroChina have bought 105,000 tonnes of diesel and could buy more, they said, though volumes could not be confirmed. China became a net diesel exporter in 2013.
Asia Fuel Oil-Cracks, Spreads Tight; Bunker Prices Climb
Asia's fuel oil crack for benchmark 180-centistroke rebounded to a discount of $6.79 a barrel on Wednesday, gaining as bunker prices firmed on the possibility of reduced arbitrage volumes from the West next month even as the market remained quiet, traders said. The spread for the benchmark also remained tight, holding around a four-month high, at a discount of $2.75 - a further indication of possible lower arbitrage volumes, traders said. "We don't see much arbitrage cargo - somewhere in the low 3s (million tonnes) in December," said one Singapore trader. Other traders have estimated volumes could hit 4 million tonnes, similar to November's level. "Bunker prices have picked up and fundamentals kicked in," the trader said.
Statoil's Q1 2011 Results
Statoil's first quarter 2011 net operating income was NOK 50.7 billion, a 28% increase compared to NOK 39.6 billion in the first quarter of 2010. The quarterly result was mainly affected by a 33% increase in the average prices for liquids measured in NOK, a 20% increase in average gas prices, and a 12% decrease in liftings, when compared to the same period last year. "In the first quarter of 2011 we delivered good financial results and passed important industrial milestones. Through the Skrugard discovery and the new acreage awarded Statoil in the Barents Sea…
German Banks Step up Efforts to Offload Toxic Shipping Debt
Top national lenders Deutsche Bank and Commerzbank are stepping up efforts to offload distressed shipping loans, finance sources said, as the German banking system grapples with $100 billion in toxic debt from the sector. While the shipping sector is showing signs of recovery after a near-decade long downturn, it is still struggling with an excess of ships and sluggish growth in global trade, which has led to some shipping companies going to the wall. German banks, once global leaders in ship financing, have written off billions of euros in loans to shipping companies, while other European lenders - facing capital pressure from regulators - have quit the business.
France to Boost LNG Usage in Shipping
France will modify regulations on the natural gas to allow liquefied natural gas (LNG) bunkering to take place at ports, Reuters reported quoting Prime Minister Edouard Philippe. He said the country will consider changing fiscal rules on amortising investments in new ships or engine technology. “We have to use this (energy) transition to differentiate ourselves on the market - in transport and in port services,” he said. The report said that LNG has been promoted as an alternative to fuel oil for a shipping sector facing tougher emissions standards from 2020…
Ship Operating Costs Stabilize: Drewry
The cost of operating cargo ships rose marginally in 2017 following two consecutive years of falls, but ship owners should prepare for higher costs led by a spike in insurance premiums, according to the latest Ship Operating Costs Annual Review and Forecast 2017/18 report published by global shipping consultancy Drewry. After two years of marked decline, average vessel operating costs stabilized in 2017 as pressure on owners was lifted by a nascent recovery across most cargo shipping markets.
Economic Sustainability is Key to Green Shipping -ICS
Addressing government trade negotiators in the OECD Working Party on Shipbuilding at a workshop on “green growth” in Paris, the International Chamber of Shipping (ICS) asserted that the shipping industry could only be environmentally sustainable if it is economically sustainable too. “The perennial challenge facing ship owners is overcapacity, aided and abetted by government subsidies and support measures that encourage shipyards to produce ships that are surplus to requirements,” said ICS Director of Policy, Simon Bennett.
US Navy Rolls out New Measures after Deadly Collisions
The U.S. Navy has introduced new measures aimed at avoiding a repeat of two deadly crashes in the Asia Pacific region involving its warships and commercial vessels following a review of its practices, the Seventh Fleet commander said on Monday. Vice Admiral Phillip Sawyer’s comments come after a U.S. guided-missile destroyer was slightly damaged at the weekend when a Japanese tug drifted into it during a towing exercise off central Japan, the latest incident in the Pacific this year involving ships from the fleet. The U.S.
International Ship Repair Facility at Cochin Shipyard
The Minister of Shipping in India, Nitin Gadkari has said that Cochin is all set to become a global ship repair hub. He was speaking at Cochin, after laying the foundation stone for a INR 970-crore (USD 148 million) International Ship Repair Facility (ISRF) for Cochin Shipyard Limited. The facility is being built at Cochin Port Trust where CSL has leased out a 40-acre plot for the project. The International Ship Repair facility will be a State of the Art facility that can handle a major chunk of small and medium sized vessels plying in India.