State Oil News

21 May 2020

Bahri Puts LNG Tanker Plan on Hold

© Björn Wylezich / Adobe Stock

Saudi Aramco’s shipping division Bahri has put on hold plans to charter up to 12 liquefied natural gas (LNG) tankers after Sempra Energy delayed its decision on whether to proceed with an LNG export project in Texas, two sources said.Bahri issued an expression of interest (EOI) last year to charter the vessels from 2025 in Saudi Aramco’s first foray into LNG as part of the state oil giant’s plan to become a major global player in the gas market.In May last year, Aramco signed a 20-year agreement to buy LNG from Sempra Energy’s planned Port Arthur export terminal and also agreed to buy a 25% eq

15 May 2020

Chinese Survey Ship Leaves Malaysian Waters After Standoff

Haiyang Dizhi 8 seismic survey vessel (File photo: China Geologic Survey)

A Chinese survey ship that had been involved in a month-long standoff with a Malaysian oil exploration vessel in the South China Sea has left Malaysia’s exclusive economic zone (EEZ), shipping data showed on Friday.Since mid-April, the Haiyang Dizhi 8 had been surveying in the EEZ, close to where a drillship contracted by Malaysian state oil firm Petronas had been operating in waters claimed by Malaysia, Vietnam as well as China.The West Capella, the ship contracted by Petronas…

13 May 2020

Rosneft to Build Port for Its Vostok Oil Project

© bborriss / Adobe Stock

Russian state oil giant Rosneft plans to build a port with maximum annual capacity of 115 million tonnes of oil for its Vostok Oil project in the Russian Arctic, the RIA news agency quoted the company as saying on Tuesday.Rosneft said in a statement previously on Tuesday that the Vostok Oil project could be supplying 25 million tonnes of oil in 2024, 50 million tonnes in 2027 and up to 115 million tonnes in 2030.Vostok Oil unites Rosneft’s projects in northern Russia, including the Lodochnoye…

11 May 2020

China Issues Second Batch Fuel Export Quotas

©  Igor Groshev / Adobe Stock

China has issued 28 million tonnes of refined fuel export quotas in the second allotment for this year, little changed from the first batch of 27.99 million tonnes issued last December, according to four sources with knowledge of the matter.The quotas were released last week to five state oil companies, PetroChina, Sinopec, China National Offshore Oil Corp, Sinochem Group and China National Aviation Fuel Corp, the sources said.The new quotas, of mostly gasoline, diesel and aviation fuel…

29 Apr 2020

Buyers Cancel Saudi Crude Shipments After Tanker Rates Soar

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U.S. buyers of Saudi Arabian crude oil cancelled at least seven April-loading tankers after a jump in freight costs, two industry sources said, likely to result in lower-than-expected shipments from the world's top exporter.The move shows how some buyers are not rushing to take much extra oil despite a slide in prices this month to below $16 a barrel, the lowest this century, as demand has collapsed due to government measures to contain the spread of the coronavirus.In March,…

28 Apr 2020

Pemex Trading Arm Mulls Canceling May-June Cargos

© Vladimir / Adobe Stock

The trading arm of Mexican state oil company Pemex is mulling options to slash the number of fuel cargoes the country imports in May and June as demand plummets because of the coronavirus, three sources close to the talks told Reuters.Pemex last week declared force majeure over fuel supplies from its trading arm PMI Comercio Internacional after a bottleneck of more than 60 vessels built up outside Mexican ports, waiting to discharge.But PMI still has not declared force majeure…

23 Apr 2020

Saudi Arabia May Re-route Tankers if US Bans Crude Imports

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Saudi Arabia is exploring re-routing millions of barrels of oil onboard tankers sailing to the United States if President Donald Trump decides to block imports of crude from the kingdom, shipping and trade sources say.Some 40 million barrels of Saudi oil are on their way to the United States and due to arrive in the coming weeks, piling more pressure on markets already struggling to absorb a glut of stocks, according to shipping data and sources.U.S. officials have said in recent days that Washington is considering blocking Saudi shipments of crude oil…

15 May 2020

Malaysia Calls for Peaceful End to South China Sea Standoff

Haiyang Dizhi 8 seismic survey vessel; Image Credit: China Geologic Survey (File Photo)

Malaysia called on Thursday for disputes over the South China Sea to be resolved by peaceful means, amid a standoff between Chinese and Malaysian vessels that a U.S. think tank said had been going on for months.U.S. and Australian warships arrived in the South China Sea this week near an area where a Chinese government survey vessel, the Haiyang Dizhi 8, has been operating close to a drillship under contract to Malaysian state oil company Petronas, regional security sources have…

22 Apr 2020

Australia Joins U.S. Ships in South China Sea Amid Rising Tension

Parramatta IV - Image Credit: Royal Australian Navy (File Photo)

An Australian frigate has joined three U.S. warships in the South China Sea near an area where a Chinese vessel is suspected to be exploring for oil, near waters also claimed by Vietnam and Malaysia, officials said on Wednesday.The warships arrived this week close to where the Chinese government survey ship Haiyang Dizhi 8 has been operating, which is in turn near where a vessel operated by Malaysia’s Petronas state oil company is conducting exploratory drilling, regional security sources have said.The U.S.

21 Apr 2020

Two U.S. Warships in South China Sea Amid China-Malaysia Standoff

USS America - Public Domain License

Two U.S. warships are operating in the South China Sea, the Navy said on Tuesday, with three regional security sources saying they were near an area of a standoff between China and Malaysia.The Haiyang Dizhi 8, a Chinese government research ship, was spotted last week conducting a survey close to an exploration vessel operated by Malaysia’s state oil company Petronas, months after it undertook a similar patrol off Vietnam.The incident prompted the United States to call on China to stop its “bullying behavior” in the disputed waters…

20 Apr 2020

Tanker Bottleneck Grows at Mexico's Ports

© Vladimir / Adobe Stock

More than 20 vessels loaded with fuel have waited a week or more to discharge gasoline, jet fuel, diesel and liquefied petroleum gas at Mexico's ports, according to Refinitiv Eikon data, as demand craters due to coronavirus-related lockdowns.Mexico imports most of its fuel and has very limited storage capacity. State oil company Pemex and about a dozen independent importers typically discharge at least two gasoline cargoes per day, mostly coming from the United States.In January…

20 Apr 2020

Thailand's EGAT to Receive 2nd Spot LNG Cargo from Malaysia's Petronas

Illustration; An LNG Tanker - Image by alexyz3d / AdobeStock

State-run Electricity Generating Authority of Thailand said it will buy a second spot-market shipment of liquefied natural gas (LNG) on Tuesday.The state-owned PTT's Map Ta Phut LNG receiving terminal in the eastern part of Thailand will receive the 65,000-tonne LNG cargo from Malaysia's state oil and gas company Petronas, the Thai state utility said in a statement late on Friday.The April shipment is the second, after the spot-market LNG cargo in December.

20 Apr 2020

U.S. Tells China to Stop 'Bullying Behavior' in South China Sea

 The Chinese seismic vessel Haiyang Dizhi 8 - Image Credit: China Geologic Survey (File Photo)

The United States called on China on Saturday to stop "bullying behavior" in the South China Sea and said it was concerned by reports of Beijing's "provocative actions" aimed at offshore oil and gas developments in the disputed waters.Three regional security sources told Reuters on Friday that a Chinese government survey ship was tagging an exploration vessel operated by Malaysia's state oil company Petronas in those waters.The vessel Haiyang Dizhi 8 was earlier this week spotted off Vietnam…

17 Apr 2020

Chinese, Malaysian Offshore Oil Vessels in South China Sea Standoff

File Photo: West Capella Drillship - Image by Samtmendher  / MarineTraffic

A Chinese government survey ship is tagging an exploration vessel operated by Malaysia's state oil company Petronas in disputed waters in the South China Sea, three regional security sources said on Friday.China's Haiyang Dizhi 8 entered waters near Malaysia on Thursday, according to ship tracking website Marine Traffic.On Friday, it was close to the Petronas-operated West Capella, according to the security sources, who did not want to be identified because they were not authorised to talk to the media.

14 Apr 2020

Record Oil Output Cuts Fail to Make Waves in Coronavirus-hit Market

© Emmanuel Campos / Adobe Stock

The minimal impact on oil prices from a global deal for record output cuts showed that oil producers have a mountain to climb if they are to restore market balance as the coronavirus shreds demand and sends stockpiles soaring, industry watchers said.After several days of discussions, oil producing and consuming countries aim to remove nearly 20 million barrels per day (bpd) or 20% of global supply from the market, Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman said on Monday.The oil market has barely shrugged, however: Brent crude gained 1.5% on Monday, while U.S.

13 Apr 2020

OPEC, Russia Approve Biggest-Ever Oil Cut to Support Prices

OPEC and allies led by Russia agreed on Sunday to a record cut in output to prop up oil prices amid the coronavirus pandemic in an unprecedented deal with fellow oil nations, including the United States, that could curb global oil supply by 20%. Measures to slow the spread of the coronavirus have destroyed demand for fuel and driven down oil prices, straining budgets of oil producers and hammering the U.S. shale industry, which is more vulnerable to low prices due to its higher costs.

25 Mar 2020

Libya says Probe of Seized Tanker to Start After Quarantine

© jack ronalds/ MarineTraffic.com

Libya's internationally recognized government will start an investigation into a tanker over alleged sanctions-breaking after a period of quarantine ends in two weeks, the coast guard commander who seized the vessel said on Wednesday.The coast guard at Misrata seized the Gulf Petroleum 4 three days ago, Rida Issa said, after the National Oil Corporation (NOC) said the tanker had broken an arms embargo and other international agreements by offloading jet fuel in Benghazi.Benghazi…

23 Mar 2020

Coronavirus-related Inspections Delay Venezuelan Oil Exports

© Igor Dashko / MarineTraffic.com

At least two cargoes of Venezuelan crude have been delayed due to health inspections aboard tankers to prevent the spread of the coronavirus, according to an internal document from state oil company Petroleos de Venezuela seen by Reuters.The delays add to a growing glut of tankers loaded with Venezuelan crude that preceded the coronavirus crisis as U.S. sanctions spooked potential customers. With domestic onshore oil inventories approaching capacity, PDVSA has been increasingly…

23 Mar 2020

Oil, Fishing, Tourism: Alaska Economy Faces Triple Hit from Coronavirus

© Stephen Finn/AdobeStock

The U.S. state of Alaska is so far distant from the worst medical ravages of the coronavirus pandemic, but its economy is in critical condition. Alaska is especially vulnerable because it depends on oil, tourism and fisheries – basic industries that are reeling from the global coronavirus pandemic – and the state government gets most of its revenue from investment earnings that have now evaporated."Alaska is experiencing a perfect storm, a most terrible trifecta, the hat trick from hell," said state Senator Natasha von Imhof, co-chair of the Senate Finance Committee, at a hearing Saturday.

09 Mar 2020

Venezuelan Detains More than 30 PDVSA Workers

© Henrique Cayolla / MarineTraffic.com

At least 38 workers from Venezuela's state oil company Petroleos de Venezuela’s, including the president of maritime subsidiary PDV Marina, were detained on accusations of trafficking fuel, Venezuelan Interior Minister Nestor Reverol said on Saturday, describing the accusations as "treason."The move comes just days after other state officials were detained and amid a shakeup at PDVSA after President Nicolas Maduro last month named a committee to restructure the OPEC nation’s oil industry, which is struggling under U.S.

02 Mar 2020

Sailor Dies on Tanker Moored off Venezuela

© Gena Anfimov / MarineTraffic.com

A sailor aboard an oil tanker anchored off Venezuela's coast died on Saturday, three people with knowledge of the incident said, marking the second death in less than a week involving personnel aboard ships serving the crisis-stricken OPEC nation.Juan Carlos Navarrete, a 58-year-old Cuban national serving as a helmsman aboard the Petion Panamax tanker, died after falling overboard while the tanker was anchored in Amuay Bay in western Venezuela, one of the sources, union leader Ivan Freites…

27 Jan 2020

Libya's NOC Warning Over Impact of Oil Blockade

The head of Libya's state oil firm warned on Monday that if the international community tolerates a blockade on the country's oil industry it would be complicit in ending the rule of law in the country.The 10-day old blockade is the most extensive for years, shutting down fields and ports in the east and south of Libya and causing production to plunge to 262,000 barrels per day (bpd) from around 1.2 million.Production has gradually been falling since the blockade began as storage capacity in Libya's ports fills up, forcing Libya's National Oil Corp (NOC) to shut in production upstream.NOC Chairman Mustafa Sanalla said that at the Ras Lanuf port only 30% of storage capacity was operational…

17 Jan 2020

NOC Condemns Calls for Oil Export Terminals to be Shut

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Libya's state oil firm NOC on Friday condemned calls to shut oil export terminals in eastern Libya controlled by military commander Khalifa Haftar ahead of a summit in Germany where he will face pressure to halt his campaign to take the capital.Tribal leaders in eastern and southern Libya called on Thursday to shut the terminals in protest at what they called the internationally-recognized government in Tripoli's use of oil revenues to pay for foreign fighters.Eastern Libya and part of the south of the country is controlled by the Libya National Army (LNA) of Haftar…

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