U.S. Slaps Sanctions on Firms Moving Venezuelan Oil to Cuba
The U.S. Treasury Department on Tuesday imposed sanctions on four maritime firms and vessels transporting Venezuelan oil to Cuba, amid an acute fuel scarcity in the island that is forcing people to line up for gasoline and public transport.Despite tough U.S. measures against Venezuela's state-owned oil company PDVSA in January, Cuba's state-run oil import and export company Cubametales and other Cuba-based entities "have continued to circumvent sanctions by receiving oil shipments from Venezuela…
Asia: Pertamina, Petronas Join Forces
Indonesian state-owned energy company PT Pertamina and Petroliam Nasional Berhad (Petronas) of Malaysia have signed a Memorandum of Understanding (MoU) to develop oil and gas business – upstream and downstream, not only in Indonesia or Malaysia but also in other countries.As per MoU, Pertamina will swap crude produced in its Malaysian fields of Kikeh, Kimanis and Kidurong with crude from Petronas' Indonesian fields of Jabung and Ketapang, said a Reuters report quoting Pertamina sources.Meanwhile…
FSRU Suppliers Shift from Emerging Markets, Cut Back New Orders
Political instability and low credit ratings in emerging economies are putting some shipowners off ordering new floating storage and regasification units (FSRUs), as they shift focus to more mature gas markets.Liquefied natural gas (LNG) demand from emerging markets in Asia, Africa and South America was expected to be boosted by FSRU technologies that are less expensive and time-consuming than onshore import terminals.But a boom in speculative FSRU orders from shipowners led to an oversupply of units this year as import projects across the world were delayed or cancelled…
Cheniere, Malaysia's Petronas Sign 20-Year LNG Pact
Houston-based Cheniere Energy Partners has signed a 20-year liquefied natural gas (LNG) supply deal with a subsidiary of Petronas, Malaysia's state-owned oil and natural gas company.Per long-term pact, Petronas agreed to buy about 1.1 million tons a year from the Sabine Pass facility, according to a statement Tuesday. That’s about a quarter of the sixth plant’s capacity. “Petronas is one of the largest and most experienced participants in the global LNG market, and we are pleased to have it as our newest foundation customer at Sabine Pass…
Bangladesh Resolves FSRU Issues
Bangladesh will resume liquefied natural gas (LNG) imports this week after resolving issues with its sole floating storage and regasification (FSRU) unit, a senior official said on Monday.Two cargoes, meant to be delivered on Nov. 7 and Nov. 15, had been cancelled as the FSRU was closed due to problems with a hydraulic line that operates an emergency shutdown valve."The problem with the hydraulic line has been resolved now," said Mohammad Quamruzzaman, managing director of Rupantarita Prakritik Gas Co…
ADNOC LNG Wins Extension of Gas Supply Contract to 2040
The Abu Dhabi National Oil Company (ADNOC), has agreed, in principle, to extend to 2040 its gas supply agreement with ADNOC LNG, in coordination with ADNOC LNG’s joint venture partners, Mitsui, BP and Total.The the state-owned oil company of the United Arab Emirates said that the new gas supply agreement is scheduled to take effect from April 1, 2019, replacing an existing agreement, due to expire on March 31, 2019.The extension announcement follows the Abu Dhabi’s Supreme Petroleum…
Bangladesh Shelves LNG Projects as Others Ramp Up
Bangladesh has put aside two smaller liquefied natural gas (LNG) projects with trading houses Gunvor and Vitol to focus on two larger LNG import terminals, one of which is already in use while the second will start up in March.Bangladesh has turned to LNG to offset falling domestic gas output to feed industrial demand and electricity generation in a nation of 160 million people where a third have no power supply.It aims to import 17 million tonnes a year of LNG by 2025, which in today's terms would make it a top five importer.
Stena Bulk Charters Out MR Tanker Pair to Petrobras
Stena Bulk said it has signed a contract with Brazil's state-owned oil company to charter out a pair of MR product tankers for transporting refined products along the Brazilian coast. The two-year deal includes the option to extend the charters for another 11 months.The 47,000 dwt tankers, Stena Conqueror and Stena Conquest, were built in 2003 and 2004 respectively.“We have a long-standing, highly-valued relationship with Petrobras when it comes to both Suezmax and MR tankers and we are committed to continue to provide them with safe and efficient deliveries.
Stena Bulk Grows Sonangol Suezmax Pool
Over the last six months, Stena Bulk has expanded its fleet in the Sonangol Suezmax pool with the addition of six Suezmax tankers: SKS Skeena, Istanbul, Almi Galaxy, Almi Voyager and Almi Sky. The TC in fleet consists of modern tonnage of varying length and with different options.“In what has generally speaking been a stable low market, we have recently seen opportunities to utilize our business model in the current market,” said Erik Hånell, president and CEO, Stena Bulk. “With our successful commercial management…
PDVSA Raises Prospect of Force Majeure on Oil Exports
OPEC member Venezuela has raised the prospect of declaring force majeure on contracts with major crude buyers amid plummeting output from its oil fields and tanker bottlenecks at ports, according to three sources familiar with the matter.Falling production from Venezuela has contributed to a rally in global oil prices to a near four-year high, and other OPEC members may boost output at a meeting later this month to compensate for the shortfall and other risks to global supplies.Oil is the financial lifeline for the embattled socialist government of President Nicolas Maduro…
Buyers Seek US Waivers to Buy Iranian Oil amid New Sanctions
South Korea said on Wednesday it would seek U.S. exemptions to buy Iranian oil, a path many big oil consumers are likely to follow in the wake of new U.S. sanctions on Tehran, which will tighten world oil markets and push up prices.Iran is the third-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) and a key supplier, especially to refiners in Asia.The United States plans to impose new unilateral sanctions after abandoning an agreement reached in late 2015 which limited Iran's nuclear ambitions in exchange for removing joint U.S.-Europe sanctions…
SBM Offshore to Pay $238 Mln in US Bribery Case
SBM Offshore NV, a Netherlands-based maker of offshore oil drilling equipment, and its U.S. subsidiary, SBM Offshore USA Inc, agreed to settle criminal charges of bribing officials in five countries and pay a $238 million penalty, the U.S. Justice Department said on Wednesday. The companies agreed to settle charges related to schemes lasting more than a decade involving bribery of foreign officials in Brazil, Angola, Equatorial Guinea, Kazakhstan and Iraq, in violation of the Foreign Corrupt Practices Act (FCPA), the Justice Department said in a statement. SBM Offshore USA pleaded guilty on Wednesday in the U.S. District Court for the Southern District of Texas, the statement said.
CNPC, Cheniere Pact for LNG
China’s state-owned oil company, China National Petroleum Corporation (CNPC), and U.S. independent energy company Cheniere Energy have signed a Memorandum of Understanding (MoU) for long-term sales and purchases of liquefied natural gas (LNG), Reuters reported. The report quoted U.S. State Department saying that the deal between the two companies was signed during president Trump’s first state visit to China. Neither companies disclosed details of the transaction. According to CNPC…
GasLog Updates on LNG Market
During the quarter and post quarter end, there has been continued momentum in the start-up of new LNG liquefaction capacity with the fourth train at Sabine Pass in the U.S. shipping its first commissioning cargoes in August 2017, said GasLog Partners. Sabine Pass has now shipped approximately 200 cargoes since start up in early 2016. Post quarter end, Chevron's Wheatstone LNG project in Australia started production with the first LNG shipment expected in the coming weeks. Dominion's Cove Point project in the U.S.
Dora Could Reach Hurricane Strength Today
Tropical Storm Dora, located off the western coast of Mexico in the Pacific Ocean, is strengthening quickly and is expected to become a hurricane on Monday, the U.S. National Hurricane Center (NHC) said on Sunday. Maximum sustained winds were about 70 miles per hour (110 km per hour), with higher gusts. Dora was strengthening quickly and was forecast to become a hurricane on Monday, the NHC said in its latest advisory late on Sunday night. The NHC warned of possible heavy rains along the southwestern coast of Mexico but added that the center of the storm was expected to move parallel to the coast of Mexico but remain offshore. It said no coastal watches or warnings were in effect.
Pemex Approves New Deep Water Gulf Joint Venture
The board of Mexico's state-owned oil company Pemex on Thursday approved its second-ever deep water joint venture covering the Nobilis-Maximino block in the country's territorial Gulf waters. Reuters revealed details of the plan last week. (Reporting by David Alire Garcia)
Crude Spill Hits PDVSA's Jose Terminal
Operations at Venezuela's main oil-exporting port Jose were hit by a crude oil spill on Tuesday, union sources and shipping agents told Reuters. A break in a pipeline that runs from the oil terminal to a single buoy mooring (SBM) facility near Venezuela's eastern coast would have produced the spill, according to four sources familiar with the incident. None of the sources could confirm the spill's magnitude but operators said there were no vessels docking at the SBM at the time of the incident. The 36-inch pipe can transport up to 32,000 barrels per day (bpd) of crude oil to the SBM facility, which is used by tankers to load oil for export. State-owned oil company PDVSA did not immediately respond to a request for information about the incident.
Emas Chiyoda Subsea Files for Bankruptcy
Subsea affiliate of Singapore's Ezra files for U.S. A subsea and offshore contractor affiliate of Ezra Holdings Ltd, a struggling Singaporean oilfield services firm, filed for U.S. bankruptcy as it ran short of cash due to a lingering downturn in the oil-and-gas industry. The affiliate, Emas Chiyoda Subsea Ltd, said in court papers filed in Houston that the company was suffering from weak demand for its subsea contracting work and tightening credit conditions. Ezra has said it may have to take a $170 million writedown on the value of its investment in Emas Chiyoda.
Canada's First LNG Export Terminal Seen as One-off
Woodfibre LNG, Canada's first liquefied natural gas export project, will be a "nice-to-have" fillip for the country's gas producers but does not signal the start of a west coast LNG boom, industry watchers said on Monday. Privately held Woodfibre LNG Ltd said on Friday it will start building its C$1.6 billion ($1.2 billion) project in Squamish, British Columbia, next year after its Singaporean parent company authorized the funds last week. It is the first of more than a dozen LNG projects proposed for British Columbia to get the final go-ahead, but analysts say Woodfibre is unlikely to herald an investment surge from other developers given the challenging economics of an oversupplied LNG market.
Tropical Storm Earl moves inland over southeastern Mexico
Tropical Storm Earl moved inland early on Saturday over southeastern Mexico where torrential rains could produce deadly flash floods and mudslides, the U.S. National Hurricane Center said. The storm with winds of 50 mph (80 kmh) was about 30 miles (50 km) southwest of Veracruz, Mexico as it headed west at 9 mph (15 km), the Miami-based center said in an advisory late on Friday night. The center said Earl would weaken as it moved inland throughout the day on Saturday, but could…
Argentina Crude Exports Poised to Hit Record
Argentina's oil producers have shipped record volumes of crude this month, spurred by a new government subsidy that has also prompted state-owned oil company YPF to return to the export market for the first time in years. The surge in shipments abroad comes just a month after Argentina's new president, Mauricio Macri, introduced measures to help oil exporters as part of sweeping policy changes aimed at boosting investment and opening the South American nation's economy after years of heavy controls on trade. Exports are expected to reach a record 91,000 barrels per day (bpd) of crude in April, including two cargoes sold by YPF to China and barrels shipped by private producers, according to a source.
Oil Majors Pay Mexico Regulator $80 Mln for Deepwater Data
Oil companies have paid Mexico's oil regulator nearly $80 million for seismic data ahead of an auction for deep water fields, suggesting robust interest in the tender despite a lasting slump in the price of crude. Thirteen companies, including Exxon Mobil, BP and BHP Billiton, have paid a total of 1.38 billion pesos ($78 million) to date for licenses to use deep water data, according to a document from national oil regulator CNH seen by Reuters. Company executives say the sum reflects only a fraction of their spending in the past year to acquire geological data ahead of the Dec. 5 auction, which will feature 10 largely unexplored blocks in the Gulf of Mexico.
MHI Subsidiary in Brazil for FPSO Compressors
In December Mitsubishi Heavy Industries Compressor Corporation (MCO), a Group company of Mitsubishi Heavy Industries, Ltd. (MHI) based in Hiroshima, will establish a new company in Brazil in a joint venture with Mitsubishi Corporation (MC), to be known as MHI Compressor do Brasil Ltda. (MCO-B). Creation of the new entity, which will launch commercial operations in February 2016, is targeted at developing the Latin American market for compressors, with a focus on expanding sales of compressors for use in Floating Production…