PAO Sovcomflot: Tanker Market is Challenging
PAO Sovcomflot (SCF Group) continued to increase the share of its fleet serving long-term energy projects over the first quarter ending 31 March 2018. This helped offset the negative impact of the protracted decline in freight rates that continues within the conventional tanker freight markets. Nikolay Kolesnikov, Executive Vice President and CFO of PAO Sovcomflot, commented on the quarter's results: "In the first quarter of 2018, conditions within the global conventional tanker market remained extremely challenging.
Novatek, Sovcomflot Pact for LNG Shipping from Yamal LNG
Leonid Mikhelson, Chairman of the Management Board of PAO Novatek and Sergey Frank, General Director of PAO Sovcomflot have signed a Strategic Cooperation Agreement on developing a strategic partnership to transport hydrocarbons (LNG and gas condensate) produced at Yamal LNG, Arctic LNG 2 and other Arctic projects of the Company. “Our unique partnership with Sovcomflot will optimize our LNG transport model through the Arctic zone by efficiently and effectively using ice-class tankers” according to Novatek's Chairman of Management Board Leonid Mikhelson.
Russia in Talks with Asian Investors on Sovcomflot Sell-off
Russia is in talks with Asian investors on the privatisation of state shipping company Sovcomflot, the RIA news agency cited Russian First Deputy Prime Minister Igor Shuvalov as saying on Tuesday. The government does not rule out other forms of the company's privatisation apart from an initial public offering, the agency quoted Shuvalov as saying. (Reporting by Gleb Stolyarov; Writing by Dmitry Solovyov; Editing by Maria Kiselyova)
Arctic Thaw helps Russian Shipping
Arctic thaw aids shipping most along Russian coast; Russia to start LNG exports from Yamal in late 2017. Russian shipping in the Arctic is benefiting from winds that are driving the oldest and thickest sea ice towards North America, further opening a remote region that is thawing amid global warming, scientists say. The thinning Russian ice could help liquefied natural gas (LNG) tankers, due to start exports from Russia's Yamal Peninsula in late 2017, to navigate an icy route east to Asia for more than a planned six months of the year, they said.
Russia Sends LNG Through Northern Sea Route
Russia was now pitching itself as an important transporter of European gas to Asia, reports Sputnik quoting Danila Bochkarev, a senior fellow at the EastWest Institute in Brussels. The Russian supertanker Christophe de Margerie is en route to South Korea, sailing the Northern Sea Route with a load of liquefied natural gas (LNG) from Norway. The shipment is a major step for Russia’s Sovcomflot to enter the global gas transportation market said the report. The Northern Sea Route…
LNG Carrier Sets Northern Sea Route Record
On August 17, 2017, the Sovcomflot-owned icebreaking liquefied natural gas (LNG) carrier Christophe de Margerie completed her first commercial voyage, transporting LNG through the Northern Sea Route (NSR) from Norway to South Korea. During this voyage, the vessel set a new time record for an NSR transit of 6 days 12 hours and 15 minutes. Moreover, Christophe de Margerie has also become the world’s first merchant vessel to travel the full length of the NSR without any icebreaker escort.
SCF's Balancing Act in Tanker Market
Despite the turbulent conditions seen in conventional markets, SCF Group has continued to demonstrate resilience whilst remaining able to position itself to take advantage of the future upswing in these markets when it comes. The first half of 2017 was very challenging for global tanker markets, with spot freight rates in all market segments nearing their historic lows. This has impacted severely upon the profitability of those owners focused solely on conventional shipping, said a press statement from SCF Group quoting Sergey Frank, President and CEO of PAO Sovcomflot.
ABB’s Azipod Writes History in the Arctic
Sovcomflot’s liquefied natural gas (LNG) carrier Christophe de Margerie made the world’s first-ever crossing of the Northern Sea in late August without the aid of an ice-breaker. The record-setting vessel is powered by ABB’s advanced Azipod electric propulsion technology. The 172,600 cubic meters Arctic LNG tanker, which features a lightweight steel reinforced hull, is the largest commercial ship to receive Arc7 certification, and is capable of travelling through ice up to 2.1m thick.
Russian Award for Sovcomflot
PAO Sovcomflot (SCF Group) was awarded first prize at the 2017 International Competition of Scientific, Technical and Innovative Developments aimed at the Exploration and Development of the Arctic and the Continental Shelf, held under the auspices of the Russian Ministry of Energy. The prize was awarded to a team of Sovcomflot experts for the development and practical implementation of technological solutions enabling year-round oil shipments from the Gulf of Ob. The winning team was led by Igor Tonkovidov, Executive Vice-President and Chief Technical Officer of Sovcomflot.
Zvezda, Hyundai to Build Russian Aframax Tankers
A set of agreements between PAO Sovcomflot (SCF Group), Rosneft, the State Transport Leasing Company (STLC) and Zvezda Shipbuilding Complex will see the construction of five Aframax tankers for the export of crude oil and oil products from 2021. The 114,000 dwt vessels will be built by Zvezda jointly with technology partner Hyundai Heavy Industries (Republic of Korea). The tankers are purpose-designed to use liquefied natural gas (LNG) as their primary fuel and will have an ice class of 1A/1B…
SCF's New Icebreaker Named Fedor Ushakov
Russia’s PAO Sovcomflot (SCF Group) currently operates 10 vessels that serve the Sakhalin-2 project, including three oil tankers, two liquefied natural gas (LNG) carriers and five icebreaking supply and standby vessels. Its latest addition to this specialized fleet, a newly built multifunctional icebreaking standby vessel (IBSBV), was formally named Fedor Ushakov at a ceremony on October 11. The vessel is the third in a series of four IBSBVs purpose-designed for operating in the…
Orest Sychenikov, First Head of Novorossiysk Shipping Company, Passed Away
It is with great sadness that the Sovcomflot management and team must announce a monumental loss to the Russian shipping community. On 9 October 2017, Orest Sychenikov, first Head of Novorossiysk Shipping Company, passed away at the age of 95. On 9 October 2017, we lost a highly educated man, a talented leader who made a massive contribution to the strengthening and development of Russian maritime navigation. Orest Sychenikov was born on 28 June 1922. In 1941, he was called up to the Red Army to fight in the Second World War, during which was seriously wounded in 1943.
Sovcomflot Reports Loss for 9M 2017
PAO Sovcomflot (SCF Group) reported a $6.8 million loss for the first nine months of 2017, citing the adverse impacts of low spot market freight rates in the conventional tanker sectors. “This year has proven to be a very challenging period for the tanker industry and the situation now faced by many conventional tanker ship owners is especially severe,” said Sergey Frank, President and CEO of PAO Sovcomflot. “An oversupply of tonnage and reduced demand, resulting from oil capacity cut-backs led by OPEC…
Christophe de Margerie Named Engineering Project of the Year
Christophe de Margerie, the icebreaking LNG carrier built to order for SCF Group (Sovcomflot) to serve the Yamal LNG project, has won the award for Engineering Project of the Year at the 2017 S&P Global Platts Global Energy Awards. The winners were announced at an award ceremony held in New York on 7 December 2017. At the award ceremony, SCF Group was represented by Executive Board members Nikolay Kolesnikov, Executive Vice President and CFO of Sovcomflot, and Sergey Popravko…
Christophe de Margerie Moves 1st Yamal LNG Cargo
On 8 December 2017, the icebreaking LNG carrier Christophe de Margerie completed her first loading at the Port of Sabetta, on the Yamal Peninsular, with her first cargo of liquefied natural gas (LNG) produced at the Yamal LNG plant. The ceremony was attended by: the Russian President Vladimir Putin, together with Sergey Belousov, Aide to the President; Sergey Donskoy, Russia’s Minister for Natural Resources and Environmental Protection among others. Vladimir Putin said: “This is a remarkable day for us all.
The Top 10 Ships of 2017
Maritime Reporter & Engineering News, published since 1939, annually prints details on the world’s “Great Ships of the Year.” Here we rank from those selected in the December 2017 edition the top 10 ships of the year, according to the editors. Builder: Shanghai Zhenhua Heavy Industries Co. Builder: Hanjin Heavy Industries & Construction Co. USS Gerald R. Ford: first-of-class aircraft carrier for the U.S. Owner: U.S. Christoph de Margerie: the world’s first icebreaking LNG carrier. Builder: Daewoo Shipbuilding & Marine Engineering Co.
Sovcomflot’s New Icebreaker Named
A ceremony raising the flag of the Russian Federation and naming a new multifunctional icebreaking platform supply vessel, Yevgeny Primakov, took place on February 3, 2018 in Saint Petersburg. The vessel was built by Arctech Helsinki Shipyard, a subsidiary of the United Shipbuilding Corporation; technical supervision was carried out by the Russian Maritime Register of Shipping (RS), which assigned the vessel a high ice class – Icebreaker6. Yevgeny Primakov’s design and construction…
Sberbank, Sovcomflot Sign $106m Finance Deal
The largest bank in Russia Sberbank and shipping company Sovcomflot have signed a new USD 106 million project financing agreement, with a term of up to 14 years. The funds will finance the construction of a high ice class Arctic shuttle tanker (Arc7) for the Novy Port project, under a long-term agreement with Gazprom Neft. This is the third major transaction of its kind between Sberbank and Sovcomflot. The first joint project between the companies was in 2015, to finance the construction of three Arctic shuttle tankers to transport crude oil from the Novy Port field.
SCF, Shell Push LNG Fuel for Aframax Tankers
SCF Group signed time-charter agreements with Shell for two dual-fueled Aframax tankers. At a ceremony held during International Petroleum Week in London, the time charter agreements were signed by Evgeny Ambrosov, Senior Executive Vice-President of SCF Group, and Mark Quartermain, Vice-President of Crude Trading for Shell. The vessels are part of a series of six SCF Group tankers currently under construction and due for delivery between Q3 2018 and Q1 2019. The two tankers will be on time charter to Shell for up to 10 years, with a minimum commitment of five years.
Hyundai Samho Heavy Industries Delivers Green VLCC
Hyundai Samho Heavy Industries (HSHI) has completed building a scrubber-equipped Very Large Crude oil Carrier (VLCC), the first of two ships ordered by Greek shipowner Almi Tankers in August 2016, reported the Pulse. The affiliate with South Korea's largest shipbuilder Hyundai Heavy Industries (HHI) said that the VLCC is fitted with an exhaust gas cleaning system that can meet stricter restrictions on sulphur oxide emissions that will come into force in 2020. HSHI on Tuesday held a naming ceremony for the oil tanker. The 310,000-ton VLCC - which is 336 meters long, 60 meters wide, and 30 meters deep - is loaded with various facilities…
Sovcomflot Better, Despite Challenging Year
PAO Sovcomflot (SCF Group), one of the world leaders in energy shipping and marine services to offshore oil and gas upstream projects, said that its gross revenue for the full year to 31 December 2017 grew by 3.4% to $1.43 billion. According to the statement, 2017 proved to be one of the worst years for the conventional tanker market in the last quarter of a century, with similar conditions experienced to those seen in 2011 and 1992. Conventional tanker freight rates fell by almost 50 per cent year-on-year…
SCF Secures Funds for Six Aframax Tankers
PAO Sovcomflot (SCF Group) informed that it has signed a new $252 million 7-year credit facility with a consortium of six leading international banks, which includes: ABN AMRO Bank; BNP Paribas; Citibank; ING Bank; KfW IPEX-Bank, and Société Générale. The funds will be used towards financing a series of six Aframax tankers, the first-ever such vessels purpose-designed to be powered by LNG, currently under construction and due for delivery from Q3 2018 to Q2 2019. These innovative…
$252m Finance for LNG-Powered Tankers
Watson Farley & Williams (“WFW”) has advised ING Bank (“ING”), as agent, security trustee and the syndicate of lenders on the US$252m financing of the world’s first ever LNG-powered aframax tankers for leading Russian shipowner Sovcomflot Group (“SCF”). The six 114,000dwt, ice-class vessels are being built by Hyundai Samho, with two of the vessels to operate under time charter to Shell for up to ten years. Shell will also provide LNG fuel for all six tankers across north-west Europe and the Baltic.