Oil Tight on Libyan Port Struggles
Libyan oil production could face protracted disruption as factions in the east seek to seize control of crude exports, adding pressure to a tight global market. Eastern factions have tried to take over oil exports in the past but have struggled to find buyers because Western nations insist they will deal only with the internationally recognised National Oil Corporation (NOC) based in the Libyan capital of Tripoli. But this has not stopped eastern forces from seeking control of the ports, accusing Libya's western-based government of failing to share revenues fairly.
Struggle to Control Libyan Oil Ports Adds to Global Supply Worries
Libyan oil production could face protracted disruption as factions in the east have sought to seize control of crude exports, adding pressure to a tight global market.Eastern factions have tried to take over oil exports in the past yet struggled to find buyers as Western nations insist they will only deal with the internationally recognised National Oil Corporation (NOC) based in the Libyan capital of Tripoli.But this has not stopped eastern forces from seeking control of the ports, accusing Libya's western-based government of failing to share revenues fairly.The latest tussle for power has already slashed national production to about 600…
Japan Hardsells Submarine to Australia
Japan has urged Australia to award a contract to build its new $50-billion submarine fleet, reports SMH. Japan, which is offering a variant of its 4,000 ton Soryu submarine, is competing against rival bids from Germany and France for the contract. Japanese Foreign Minister Fumio Kishida has delivered a blunt message to Canberra that only its bid to build Australia's new $50 billion submarine fleet can provide the crucial "strategic" element. Mitsubishi Heavy Industries (MHI) chief executive Shunichi Miyanaga…
Pakistan to Buy Eight Submarines from China
Pakistan is close to signing a $4 to $5 billion deal to buy eight submarines from China, the Financial Times said on Thursday, in what it added would likely be China's largest overseas arms sale. The Pakistan Navy says Islamabad has given the green light to the military's plan to purchase eight conventional submarines from China, reports Huanqiu, the Chinese-language website of China's nationalistic tabloid Global Times. Pakistan has been negotiating the submarine purchase with China since 2011, with initial plans to purchase six, and subsequently raising the number to eight.
Flirting with Default, Argentina Enjoys Oil Drilling Boom
Holders of Argentina's defaulted debt and their supporters have warned the country risks being frozen out from international capital markets unless it finds a way to solve its legal problems by the July 30 deadline. But away from the bad-tempered litigation in U.S. courts, which has dominated the news about Argentina for months, the country is experiencing an oil drilling boom as international companies seek to cash on its huge shale resources. In June, there was an average of 107 rigs drilling for oil or gas in the country, the highest number operating since records began in 1982, and more than double the number at the start of 2012, according to oil field services company Baker Hughes (Chart 1). Most were hunting for oil rather than gas.
Keel Laid for Russia’s Next Generation Icebreaker
The world’s biggest nuclear-powered icebreaker keel laying ceremony took place of at the Baltic Shipyard on 26 May 2015. Heads of Atomfflot, the Baltic Shipyard and the RS Branch Office for Nuclear Vessels signed a Keel Laying Acceptance Report of the first serial nuclear-powered icebreaker, project 22220. Bookmark nuclear-powered icebreaker "Sibir" was timed to the anniversary of the Baltic plant, which on May 26 turned 159 years . In the presence of Deputy Prime Minister Dmitry Rogozin…
Clarkson's Maritime Market Analyst Wins Medal
Clarkson Capital Markets (CCM) equity analyst, Urs Dur, winds silver medal for being one of the industry's top stock tipsters. The award was in the marine category in this year's Thompson Reuter's annual 'StarMine Analyst Awards' which are issued in collaboration with the 'Financial Times'. Clarkson Capital Markets (CCM) is the investment banking arm of Clarkson PLC, focussed on the global maritime, energy and natural resources sectors.
China Acquires Global Ports: FT
With the aim to dominate maritime industry China has been acquiring overseas ports with huge investments which crossed USD 20 bln last year, Financial Times reported. Beijing has spent billions expanding its ports network to secure sea lanes and establish itself as a maritime power, says the report. China is aggressively pushing its “One Belt One Road”, a grand scheme to win diplomatic allies and open markets in around 65 countries between Asia and Europe. It is pushing ahead with plans to open new shipping routes through the Arctic circle, the report said.
Greece's Creditors Take Aim at Shipowners
Greece's international lenders are asking the debt-laden country to hike vessel tax, according to a report in the Financial Times. The shipping sector is a vital generator of income for Greece. According to an official document indicating steps Greece must take, its lenders say the country must "increase the rate of the tonnage tax and phase out special tax treatments of the shipping industry". International creditors have asked Athens to impose higher taxes on its mainstay shipping sector—a move the government has long been loath to do for fear of sending shipping companies fleeing Greece.
Leading Shipping Equity Analyst Joins Clarkson Capital Markets
Clarkson Capital Markets, the investment banking arm of shipping services group Clarkson PLC, says it has enhanced its equity research coverage with the appointment of Omar Nokta as Managing Director of Shipping Research. Omar will be based in CCM's New York office. Omar brings significant sector experience and expertise to Clarkson Capital Markets. He joins CCM from Global Hunter Securities LLC where he was Senior Shipping Analyst. Prior to this he was Senior Research Analyst at Dahlman Rose…
Korean Shipyards Bag $1.5bln Newbuild Order from MSC
Samsung Heavy Industries (SHI) and Daewoo Shipbuilding & Marine Engineering (DSME) - two major shipyards in South Korea - are poised to sign a deal worth $1.5 billion to build container ships for Mediterranean Shipping Company (MSC), according to the Financial Times. The report said that this deal is the latest signal that the South Korea’s troubled shipbuilding industry is showing signs of recovery, after large losses posted by both companies in recent years because of a lack of orders. MSC is working on an order for up to 11 container vessels, the report said. The deals will help local shipyards struggling to win more shipbuilding deals.
Working Toward a Low Carbon Future
Recently, Pilita Clark, the Environment Correspondent at the Financial Times, wrote a very interesting article about a new report, ‘The New Climate Economy’, which I would highly recommend reading. The New Climate Economy was commissioned in 2013 by the governments of seven countries: Colombia, Ethiopia, Indonesia, Norway, South Korea, Sweden and the United Kingdom. Its reports are completely independent, and this latest one highlights some key recommendations which can help support economic growth while reducing carbon emissions…
New Maersk CEO Soren Skou Mulls Revenue Growth
New AP Moller-Maersk chief executive Soren Skou is aiming for revenue growth according to an interview with the Financial Times. He reveals the task ahead after succeeding Nils Andersen. Danish conglomerate boss said that the group was buffeted by short-term “headwinds” in all of its businesses — from the world’s largest container shipping line to oil production and drilling rigs. “In the long term, we are challenged on top-line growth. Obviously, for us it’s important that we…
Ice – The Ship Hull Nemesis
For as long as men have traveled and traded by water-routes, ice has been a nemesis for ships and their hulls. And with good reason since, on average, sea ice covers about 25 million square kilometers (9,652,553 square miles) of the planet—amounting to about two-and-a-half times the area of Canada. To wage ice battle, even in the earliest days of polar exploration, sailors used strengthened ships to ply icy waters. Naturally, these ships were originally wooden and based on existing designs but reinforced…
U.S. Will Dispatch Warships to South China Sea
The United States is expected to sail warships close to China's artificial islands in the South China Sea within the next two weeks to signal it does not recognize Chinese territorial claims over the area, the Financial Times reported, citing a senior U.S. official. The ships will sail within the 12-nautical-mile zones that China claims as territory around some of the islands it has constructed in the Spratly chain, the report said. Chinese Foreign Ministry spokeswoman Hua Chunying told a regular news briefing on Thursday that China was paying attention to such reports, and that it and the United States have maintained "extremely thorough communication" on the South China Sea issue. "I believe the U.S. side is extremely clear about China's relevant principled stance," she said.
US Must Exercise Freedom of Navigation in Asia-Pacific -Navy Commander
The commander of U.S. forces in the Pacific said on Friday the United States must carry out freedom of navigation patrols throughout the Asia Pacific, but declined to say whether it planned go within 12 nautical miles of China's artificial islands in the South China Sea. Asked about reports that the United States planned to challenge 12-nautical mile limits around China's artificial islands, he replied: "I will not confirm that. Pressed on the issue, Harris said, "I believe that we should exercise freedom of navigation wherever we need to.
Maersk Chief Warns on Global Trade
Nils Andersen, chief executive of AP Møller-Maersks, has warned that global trade will never return to scorching pre-crisis growth rates, in part because western companies are looking to manufacture more goods closer to home, says a report in the Financial Times. The chief executive of the world’s biggest shipping group said that many of the world’s most important trade routes were suffering from a crippling over capacity because shipping lines were holding out in vain for the return of a pre-crisis golden era, which had been fuelled by spectacular growth in Asia and Latin America.
Barclays To Exit Some Commodities Markets
Barclays is planning to withdraw from parts of the metals, agricultural and energy markets, echoing moves by other major players like JPMorgan Chase and Morgan Stanley away from the commodities business, the Financial Times reported on Sunday. The UK bank is expected to announce the changes on Tuesday, which include heavy cuts to its global commodities trading staff, the newspaper reported. The FT said Barclays is making the move because conditions in the commodities markets have grown unfavorable recently. Revenues have fallen and regulators have increased their scrutiny of the space. Barclays declined to comment. Barclays Chief Executive Antony Jenkins has undertaken a third review of the investment bank in as many years in response to pressure to cut costs and improve returns…
Polish PM Calls For EU Energy Union To End Dependence On Russian Gas
The European Union must create an energy union to secure its gas supply because the current dependence on Russian energy makes Europe weak, Poland's Prime Minister Donald Tusk wrote in an article in the Financial Times. Russia, which provides around one third of the EU's oil and gas, sent shockwaves through the international community with its military intervention and annexation of Ukraine's Crimea peninsula in March. The action prompted the United States and its European allies…
West Coast Port Cargo Halt in Weekend to Hit US Economy
The loading and unloading of cargo freighters is suspending at all 29 U.S. West Coast ports this weekend because of chronic slowdowns on the docks that shippers and terminal operators have blamed on the dockworkers' union, says a Reuters report. A statement from the Pacific Maritime Association (PMA) said that loading and unloading of vessels at ports from San Diego to Bellingham, Washington, will be suspended from Friday through Monday morning. The announcement came as tensions mounted over negotiations on a new labor contract for 20…
Kashagan Output May Not Start Till 2016
Output at Kazakhstan's huge Kashagan oilfield may not start until 2016, the Financial Times said on Sunday, citing Kazakhstan's minister for economy and budget planning. Erbolat Dossayev told the FT he hoped production could be restarted late next year. "But if not, we will wait until 2016," the FT cited him as saying in an interview. Production at the offshore deposit, the world's biggest oil find in 35 years, started in September but was halted in early October after the detection of gas leaks in the $50 billion project's pipeline network.
DW: US Should be Careful with Strategic Petroleum Reserve
Should Russia occupy more Ukrainian soil and sustain the already tense relations with the West, the U.S. government may decide to release crude from its Strategic Petroleum Reserve (SPR) – perhaps 500,000-700,000 barrels per day as suggested by the Financial Times. Such a move would undoubtedly hurt Moscow economically – not to mention several of the U.S.’ allies (notably Saudi Arabia) – as crude oil prices would probably drop below the $100 per barrel mark. But how would this affect the U.S.’ own oil production, especially the capital-heavy Gulf of Mexico?
Anglo American to End Investment in Deep Sea Miner Nautilus
Diversified miner Anglo American said on Friday it will end its investment in deep sea mining company Nautilus Mining."We are exiting our small minority shareholding in Nautilus, as part of the prioritisation of our portfolio on our largest and greatest potential resource assets," Anglo spokesman James Wyatt-Tilby said, confirming a report in the Financial Times.Anglo has a 4 percent stake in Toronto-listed Nautilus. Nautilus mines offshore in Papua New Guinea and Australia for minerals such as copper, gold, nickel and cobalt.(Reporting by Kanishka Singh and Zandi Shabalala; Editing by Susan Fenton)