Federal regulators have approved
Wednesday, December 31, 2008
Enterprise repairs High Island Offshore System
MPA defers rise in port dues
The
The deferment will help more than 100 bunker tankers MPA said. As part of an effort to grow a younger, more efficient and greener fleet of tankers in
Remedial launches first ESV at COSCO Nantong Shipyard
Remedial Offshore marked the launch of its first Elevating Support Vessel on December 16 when the ESV unit was skidded onto a quayside barge at the COSCO
The launch ceremony celebrated a major milestone in construction of the world’s first ESV vessel, the “Remedial ESV Solutions.” The innovative ESV design is optimized for well intervention in water depths to 325 feet (100 meters). Each ESV unit (two are under construction) combines capabilities of a jackup platform, an ocean-going vessel, a workover drilling rig, heavy-lift cranes and an offshore accommodations platform in a single package. Launching the vessel onto the barge allows its three 3,500-HP thrusters to be installed and further commissioning work to continue prior to moving the unit downstream to another COSCO shipyard where the remaining sections of its 425-foot (130-meter) legs can be installed. These are the last steps before the vessel enters sea trials for an expected March 2009 delivery. Elevating Support Vessel (ESV™) units are self-propelled jack-up well intervention vessels rated for service in 325 ft (100m) water depths, carrying a dedicated electric workover rig. Remedial Offshore's innovative ESV™ concept offers offshore oil & gas operators a unique way to combine the capabilities of jack-up rigs with the self-contained efficiencies of ocean-going vessels.
Subsea damage leaves Galoc unplugged
Otto said in a statement that part of the detachable mooring and riser system had been damaged when the field’s floating production, storage and offloading vessel Rubicon Intrepid had disconnected earlier this month. Otto said the vessel had been disconnected from the field “due to a combination of events including adverse weather conditions”. Tropical Cyclone Billy passed through the area earlier this month. However, the company had said at the time it had lined up a remotely operated vehicle to inspect the subsea equipment while the FPSO was disconnected. Otto said a subsea survey by the floater’s owner, Rubicon Offshore International, had found a “partially detached” component that would need to be repaired before production can recommence. It said the Rubicon Maverick would sail from
2008 the 'best year ever' for tanker owners
2008 has been ‘the best year ever’ for tanker owners, according to leading broker RS Platou.
According to its tanker index, which is derived from six different sizes of crude and product carriers, average daily earnings for owners were $64,000. This figure is marginally higher than 2004 levels which previously held the record, stated an RS Platou report. The report pegged suezmax and aframax earnings for this year at $67,200 and $49,800 per day respectively. According to the Norwegian brokerage, both product and chemical tanker rates “have bucked the general trend in shipping of slumping returns, particularly in the dry-bulk and container shipping sectors,” reports said. Other brokers Tankerworld spoke to said they agreed with the report from RS Platou. They said 2008 saw several instances of counter-seasonal strength in spot tanker rates which pushed earnings for many owners to record levels. This counter-seasonal strength in spot rates has been attributed to heightened oil demand from the
Enterprise repairs High Island Offshore System
Federal regulators have approved
Tuesday, December 30, 2008
Keppel O&M ends year with additional contracts
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Iran readies gas deal without India
Iran will sign a deal with Pakistan to sell gas to the neighbouring country, even if India, a third party to the deal, walked out.
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Steamship Mutual launches new crew Pre-Employment Medical Examination scheme
Steamship Mutual, a leading P&I Club providing marine liability insurance worldwide, today announces it is launching a structured Pre-Employment Medical Examination scheme.
The PEME scheme will provide enhanced medical test and screenings to Members’ crew and forms part of the Club’s overall loss prevention initiative. Initially based in the Philippines and using only pre-approved, recommended clinics to conduct the high quality PEMEs, the scheme is designed to ensure that crew are fit to serve at sea and to protect shipowners and the Club against the risk of unnecessary loss and liability arising from crew illness. Chris Adams, Steamship Mutual’s Head of Loss Prevention, said, “Whilst many crew already undergo medical screenings prior to employment, the quality and range of tests conducted can be variable. It is evident from the Club’s claims experience, that it is not uncommon for symptoms of serious illness to manifest themselves within just a few days of a crew member joining a ship, with inevitable and expensive consequences.” “The enhanced Steamship Mutual PEME will be more rigorous in order to detect unfit crew and reduce the potential for unnecessary claims. Our scheme aims to reduce the likelihood that individuals who are medically unfit are given clearance to serve at sea.” Steamship Mutual (managed by Steamship Insurance Management Services Limited) is a leading provider of Protection & Indemnity (P&I) insurance.
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Navy Signs 3rd Virginia-Class Contract
The Navy signed a five-year, $14b Multi-Year Procurement contract for eight Virginia-class submarines Dec. 22.
The contract, the third, or Block III, for the Virginia-class, calls for one ship per year in fiscal years (FY) 2009 and 2010 and two per year in FY 2011, 2012, and 2013. The contract also meets the Chief of Naval Operations' (CNO) and Virginia Class Program's mandate to reduce acquisition costs by approximately 20 percent for the FY 2012 ships. "This contract is a prime example of what you can do when you provide motivated people with a task and a deadline," said Virginia-class Program Manager Capt. Michael Jabaley. As Jabaley explained, "in FY 2005, then-CNO Admiral Michael Mullen said that if we could cut $400 million from the $2.4 billion authorized for that year's Virginia by FY 2012, the Navy would buy two Virginias each year. This contract achieves both goals – the price target and the two per year build rate." To reach its cost reduction goal, the Virginia-class Program established a three-element strategy. The first element, which accounts for one-half of the required savings, involved increasing production to two ships per year in an MYP contract in order to spread the shipyards' overhead costs over more ships. To achieve the remaining cost savings, the Navy invested $600m to redesign portions of the ship for more efficient production and to improve construction processes reducing the construction span from 84 to 60 months.
India: Ministry to speed up work on Marine Emergency Fund
The Ministry of Shipping is planning to speed up its efforts to create a Marine Emergency Fund to be used for relief operations in the aftermath of marine casualties, including loss of ships and oil spills in the Indian territorial waters.
Measures such as the early creation of the fund and putting in place an emergency response mechanism have climbed higher on the Shipping Ministry’s priority list in the wake of a sharp increase in the number of marine casualties across Indian waters in the last few years. The proposal for creation of an emergency fund emerged after a high-level committee, headed by the Directorate-General of Shipping, made a string of recommendations to reduce such incidents. The Ministry is also considering a proposal to have an emergency response mechanism for responding to emergency situations, such as salvaging sunken ships and combating oil pollution. Some of the proposed measures may require suitable legislative changes. The committee made a sharp focus on the need to restrict movement of older vessels, as these vessels accounted for a bigger slice of the casualties. Ministry figures indicate that in the last three monsoons alone some 30 ships sank, out of which about 60 per cent were above 25 years old.
Monday, December 29, 2008
Singapore Seizes ShipTek 2009
After the inaugural and successful run of Marine BizTV's flagship event ShipTek 2008, at Kochi, India, which was also the first ever maritime event to be telecast live globally through live.marinebiztv.com, Singapore is all set to host ShipTek 2009, in May.
ShipTek 2009 will explore the pivotal role of Technology Revolution in Marine and Offshore Industry on the 6th and 7th of May 2009, at Sing Expo, Singapore. ShipTek 2009 being the first ever maritime event organized in the region by an audio visual media, the mega event is a much awaited one by the South East Asian Maritime sector. The two day event will culminate with the glitzy and colorful Launch of Marine BizTV in South East Asia; at Swissotel- The Stamford right at the heart of
Distinguished maritime organizations like Society of Maritime industries, Indian National Ship Owners Association and Royal Institution of Naval Architects have already declared their support to ShipTek 2009. Besides, the event is getting wide range of media publicity through well known media like Marine & Industrial Report, Maritime Today, The Naval Architect – RINA, Automate Magazine, Energy Asia, Marine Offshore & LNG Journal.
As ShipTek 2009 deals with one of hottest current issues of the maritime industry, ‘Technology Revolution in Marine and Offshore Industry’, it will be right podium to render knowledge, exchange information and strike deals with the best of the industry. The conference boasts of 21 speakers over the two days of keynote addresses, commercial and technical presentations, poster sessions and panel debates in seven sessions. The seven sessions designed to focus on separate topics related to ship design and new construction, ship repair and conversion, marine engineering and offshore engineering.
ShipTek 2009 will feature a maritime expo comprising of 30 stalls. Exhibitors participating in ShipTek Expo 2009 will have the fabulous opportunity to showcase their products. The new technological concept of Marine BizTV, Digital Show is also going to add glamour to this business rendezvous. The exhibitor can display all their corporate videos and sales presentations etc though this unique facility. Wide range of participation is expected from the renowned maritime regions like Middle East, South East Asia and Indian sub continent.
The second day of ShipTek 2009 will witness the 3rd International Maritime Video Awards and the Launch of Marine BizTV in South East Asia. When Marine BizTV was launched on 7th May 2007 at Hotel Crowne Plaza, Dubai, Middle East awed at the largest ever maritime convergence in the region. The moment also witnessed the first ever International Maritime Video Awards. Marine BizTV expects an unprecedented gathering of maritime professionals from across the globe to witness the remarkable evening at Swissotel – The Stamford. Undoubtedly ShipTek 2009 will be embossed in gold in the history of maritime annals. ShipTek 2009 will be covered by Marine BizTV and telecast globally ‘live’ on www.live.marinebiztv.com.
Newbuilding ship prices to decline further in 2009
This prediction was given by Clarksons at a latest report, where it is indicated that a significant drop in newbuilding prices should be expected for 2009, in fact such a fall is “inevitable”. This should happen, in order to generate newbuilding demand. “The yards can look forward to a very difficult year in which they can expect to spend more time addressing their clients’ problems than actually selling ships! It is at least some comfort to the yards in an otherwise gloomy environment that they can also expect to see their cost bases deflating as steel, equipment and labour costs all moderate so, they may well be able to protect their margins in the short term even if prices fall significantly” Clarksons said. Looking back in 2008, anyone involved in the shipping business can assert that it has been a year of mixed emotions. The first half of the year was a buoyant one, with high freight rates and a newbuilding market that was defying gravity in terms of pricing. According to Clarksons however, “the strength of prices disguised the looming problem that volume was thin and, although the yards were enjoying very high prices, demand was insufficient to replenish or extend their orderbooks as buyers baulked at ever higher prices.
Eni acquires licenses in Gabon
Together, the licenses cover 8,000 square kilometers (3,088 sq miles). Licenses D3 and D4 are in the conventional waters of the north
HPH pulls out Thessaloniki bidding process
The port said the two sides were about to draft contracts after the joint venture led by HPH, the port operating arm of conglomerate Hutchison Whampoa, prevailed in the tender to run and upgrade container facilities at OLTH. "The consortium of Hutchison Port Holdings, Hutchison Port Investments, Alapis and LYD informed OLTH that it is withdrawing its interest in the container facilities of the port," OLTH said in a bourse filing. "The reasons for the withdrawal have to do with the economic crisis which has affected many sectors, especially shipping, and the difficulty of banks to finance Hutchison's ambitious plans," OLTH spokesperson Chrysanthi Athanasiou said.
ISS and PT Perusahaan Pelayaran Equinox part ways
The two companies, which have had a seven-year association, attribute the decision to “corporate development initiatives taken during the past two years by both organizations which dictated independence of operations”.
ONGC Taps New Resources to Shape Its Future
The 51 officers are all brand new recruits, what the oil major terms Graduate Trainees (GTs). The 51 officers will now pitch in their ideas to the ONGC Board in a two-day meet being held near
Sunday, December 28, 2008
Leighton invests in new pipelayer
The new vessel, Leighton Faulkner, is under construction in Zhejiang, China. When complete, the 76-metre (249-ft) long and 24-metre (79-ft) wide pipelayer will be capable of laying up to 32-inch pipes using a 10-point mooring system. Leighton Faulkner will start its first assignment laying a twin 4,500-metre (14,764-ft), 20-inch wide subsea pipeline in support of the expansion of an aviation fuel facility in Tuen Mun, Hong Kong. The pipelayer is scheduled to install a 24-inch, 13.4-kilometre (8.3-mile) offshore pipeline as part of a project commissioned by the Brunei Economic Development Board. The US$73 million project is due for completion by February 2010 and will also involve the engineering, procurement, installation and commissioning of an associated pipeline end manifold and a single point mooring (SPM) system. The pipeline system is designed to handle a flow of up to 1,600 tonnes (1,760 tons) an hour of methanol. The SPM will be a catenary anchor leg mooring type turret buoy with a capacity to accommodate 46,000 dead weight tonne tankers. It will be located in waters approximately 25 metres (82 ft) deep. The project will be supported by a 2,400-hp anchor handling tug, a 2,000-hp tug, two 55-metre (180-ft) supply barges and a crew boat.
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Adnoc plans to cut January supplies to Indian refiner
The Organisation of Petroleum Exporting Countries agreed last week on a record 2.2 million barrels per day (bpd) output cut from January 1, taking the total output removed since September to 5 per cent of world output. "Adnoc has not given anything in writing, they have verbally informed BPCL to be ready for a cut in January," the source, who could not be named, said. Replacement - The source did not say what the cut would be but "normally they cut between 5 and 15 per cent as was seen last time." He added that BPCL was trying to import some volumes of Yemen's Masila crude to replace any supply shortfalls due to cuts by Adnoc or any other Opec producers. BPCL buys about 40,000 barrels per day (bpd) of crude from Adnoc, the national oil company of Opec-member United Arab Emirates (UAE). In the last financial year ending March 2008, India bought 217,240 bpd of crude from the UAE. In the April-June quarter, it bought 301,420 bpd crude from the UAE. Other Opec producers such as Saudi Arabia and Kuwait have yet to inform BPCL on possible supply cuts, the source said. BPCL buys 80,000-90,000 bpd crude from Saudi Arabia. It runs a 240,000-bpd refinery in Mumbai, India's financial hub, and another 150,000-bpd plant in Kochi in southern Kerala state. Other Asian buyers of Opec crude have yet to receive notices overnight of any further supply cuts. Top producer Saudi Arabia, which sells more than half its crude to Asia, preempted Opec's decision by informing some customers two weeks ago of modestly sharper curbs than for December, but many refiners expected more to come, especially from other Gulf producers.
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Russia tops up output with new caches
Trutnev said yesterday that Russia, the world's largest gas producer and the world's second largest oil exporter, had discovered 500 million tonnes of new oil reserves this year and 650 billion cubic metres of gas. Russia's energy ministry estimates this year's oil output at between 485 million and 488 million tonnes, around 1% down from last year and the first decline in oil production in a decade. Russia's gas output is expected to come at 660 Bcm this year.
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ICTSI appoints new Europe & Middle East regional manager
Andrews has been with the Company since 2000, and was formerly general manager of Manila International Container Terminal, and sat on the boards of various ICTSI subsidiaries. From 2000 to 2001, he was at the helm of former ICTSI subsidiary International Port Services as ceo and general manager. His longest tenure was with Sea-Land Services, where he worked from 1973 to 2000. ICTSI is a leading developer of international ports and terminals with a global port network spanning 11 countries in four continents. Headquartered in the Philippines, the company is in its 20th year of operation, and continues to pursue container terminal opportunities around the world.
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Saturday, December 27, 2008
Flex LNG delays FID for world's first floating LNG plant
The joint venture decided to review the FID timeline due to the "complicated nature of structuring the world's first floating LNG project," Oslo-listed Flex LNG said in a statement. Peak Petroleum and Mitsubishi Corp.are partners to the LNG project originally planned to develop the Bilabri, Owaneri and Orobiri gas fields off Nigeria. The FLNG plant was granted approval from the Nigerian Department of Petroleum Resources in November. Flex LNG had awarded Samsung Heavy Industries Co. Ltd. (SHI) a contract worth about US$600 million for the engineering procurement construction installation and commissioning work on a FLNG unit earlier this year. SHI is commissioned by Flex LNG to build the hulls of three FLNG units. The first hull is due for delivery in September 2011.
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Tank Vessel Touches Bottom, San Pablo Bay
At 5 a.m., Coast Guard Sector San Francisco received a report that the Marshall Islands-flagged Tank Vessel Cape Brasilia had touched the muddy bottom of the Pinole Shoal Channel. The 577-foot tanker immediately moved back into deeper water without incident, assisted by two tugs. The Coast Guard immediately launched vessels from Coast Guard Station Vallejo and Coast Guard Station San Francisco to search the area for signs of pollution. At first light, an HH-65 Dolphin Helicopter from Air Station San Francisco conducted a thorough overflight of San Pablo Bay, with negative sightings of pollution. Notifications were also made to state and local response agency partners. The Cape Brasilia was escorted to Anchorage 9 in San Francisco Bay by a 41-foot boat from Station San Francisco, with no sightings of pollution enroute from San Pablo Bay. Marine Inspectors, Coast Guard Investigators, and a boarding team are currently onboard the vessel looking for any sign of structural damage. The crew was tested for alcohol consumption with negative results. A thorough investigation to determine the cause of the incident will be conducted by the Coast Guard.
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Japan mulls sending ships to Somalia coast
"We have to do something against pirates. We are considering various options, including sending Self-Defense Force ships or patrol vessels," said Foreign Ministry official Mitsuhiro Kobayashi. The Japanese military is known as the Self-Defense Force. Japan is considering the deployment of military ships after the U.N. Security Council in early December extended for another year its authorization for countries to enter Somalia's territorial waters, with advance notice, and use "all necessary means" to stop acts of piracy and armed robbery at sea, Kobayashi said. Piracy has taken an increasing toll on international shipping, especially in the Gulf of Aden, one of the world's busiest sea lanes. Pirates have made an estimated $30 million hijacking ships for ransom this year, seizing more than 40 vessels off Somalia's 1,880-mile (3,000-kilometer) coastline. Japan's government said no Japanese ships have been hijacked this year, but pirates fired at three Japanese vessels. No one was injured. There are over a dozen warships guarding Somalia's waters. Countries as diverse as Britain, Iran, America, France and Germany have naval forces off the Somali coast or on their way there. China was also to send warships on Friday to protect its vessels and crews from pirates. The warships are armed with special forces and helicopters and China plans to share information with other countries working in the area. Somalia, a nation of about 8 million people, has not had a functioning government since warlords overthrew a dictator in 1991 and then turned on each other. The current government, formed in 2004 with the help of the U.N. and backed by Ethiopia, has failed to protect citizens while it battles a growing Islamist insurgency.
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Daewoo closes Burma-China gas deal
Under the agreement, which cements a preliminary deal in June, China's top state oil and gas outfit China National Petroleum Corporation, will buy gas from the Shwe field in Burma's A-1 offshore block, which has reserves of between 4 trillion and 6 trillion cubic feet (113 billion to 170 billion cubic metres), Xinhua said yesterday. CNPC is the parent of listed PetroChina. Daewoo has 51% share in the consortium, while the other shareholders are India's Oil and Natural Gas Corporation with 17%, India's GAIL with 8.5%, Korea Gas Corporation with 8.5% and Myanmar Oil & Gas Enterprise with 15%. CNPC and Myanmar Oil & Gas Enterprise plan to build oil and gas pipelines through Burma and into China's south-western Yunnan province, bypassing the long journey around the Malacca Strait for oil cargoes and solving the problem of getting the gas to market, Chinese media have reported. Burma will also be able to tap the pipeline running across its territory to promote economic development once the gas starts flowing, which is expected to happen in 2013, Xinhua said. Few western companies will invest in the country because of its poor human rights record and continued detention of Nobel Peace Prize laureate Aung San Suu Kyi, which has led to a broad range of US and European sanctions. China, typically wary of supporting or imposing sanctions and one of Burma's few diplomatic allies, has shown no qualms about investing in its neighbour, eager for its natural gas, oil, minerals and timber to feed a booming economy. Daewoo said last year it had picked China as a preferred bidder for natural gas from a project in Burma, putting it at the front of a queue that also includes India and Thailand.
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Piracy latest: Germany wants pirates tried in International Court
According to DW-World, Jung felt that an international court would address the problems that have arisen from the lack of a working government in Somalia- where a large number of the pirates are from. "It needs to be an international authority. No one wants a 'Guantanamo on the sea'," Jung is quoted as telling reporters in Djibouti, where he saw off 220 German troops joining the European Union (EU) anti-piracy mission known as "Atalanta". Last week German lawmakers agreed to send up to 1,400 soldiers and a frigate -- the Karlsruhe -- to the Gulf of Aden as part of the EU mission. According to the mandate established, pirates may be captured if necessary, and could be kept on board temporarily before possibly being put on trial in Africa. In October, French forces captured nine suspected pirates at sea and handed them over to Somali security forces.
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Friday, December 26, 2008
Indian Sailors Protest Officers' Sentencing In Korea
Angry protesters gathered at the Azad Maidan in Mumbai Tuesday and destroyed electronic products made by the Korea's Samsung group and pledged to boycott Korean products, especially from Seoul-headquartered group. The protest also saw other unions, like the Maritime Union of India (MUI), the Transport and Dock Workers Union, the All India Railwaymen's Federation, Aviation Industries Employees Guild and the International Transport Workers Federation (ITF), joining in to condemn the judgment given by the South Korean court. Chawla and Chetan of Hebei Spirit, a very large crude carrier managed by V. Ships, were sentenced December 10 to 18 months and eight months in jail respectively by the Daejeon district court in South Korea. In addition, Chawla was fined thousands of U.S. dollars. This judgment reversed the earlier order of a lower court, which exonerated the two officers. According to the press note by the Indian Seafarers Federation (ISF) and media reports, Hebei Spirit, carrying 2,60,000 tons of crude oil, was anchored near the Port of Daesan on the Yellow Sea coast off Taean County in South Korean waters when a free-floating barge owned by Samsung collided with the ship and punctured it. Some 10,800 tons of oil was leaked along the coast, causing massive pollution and affecting the livelihoods of fishing communities. Shipping and maritime organizations across the board contend that the two officers were not to be blamed for the spillage. On the contrary, their efforts saved lives and prevented the tanker from exploding. The ISF has termed the judgment an "example of criminalization of seafarers for discharging their duties." Decrying the judgment, Abdulgani Serang, general secretary of National Union of Seafarers (NUSI), accused the Samsung group of manipulation and said the inquiry report of the Korean maritime authorities was an "attempt to implicate the seafarers."
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Oil rises over $36 on UAE supply cuts
Crude for February delivery was trading up 82 cents at $36.17 a barrel by 0203 GMT. After settling down 9.3%, or $3.63, on Wednesday, not far off the more than 4.5 year low struck a week ago. London Brent crude was up 75 cents at $37.36, after settling down $3.75 on Wednesday. Markets were closed yesterday for Christmas Day. Crude prices have dropped about $110 a barrel since their mid-July peak as the global financial crisis chipped away at fuel demand, spurring Opec producers to cut 5% of global crude production to stem the slide. The Abu Dhabi National Oil Company (ADNOC), the main producer in the United Arab Emirates, the world's fifth-largest crude exporter, will continue to supply its customers of flagship Murban crude with 15% less than normal contractual supplies in January, while Upper Zakum supplies will be reduced by 3% from the norm. ADNOC said it will reduce supplies of all four crude grades for February, the deepest supply cuts since it started cutting allocations in November. A source with an Asian refiner said the ADNOC cuts were more than expected. "ADNOC had already allocated January volumes, but they reversed the decision, so that messes up our schedule," the source said. "For February, the reduction volumes are very large, so we may need to adjust our ship loadings." Analysts and refiners said the notice was hard evidence that one of Opec's core members was implementing its share of the group's agreed 2.2 million barrel per day production cut, giving relief to a crude price that had been undermined by worries about adherence to Opec's cuts.
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Kistefos demands seat at Trico Marine's table
The letter warned that Kistefos is prepared to take "all appropriate steps" to accomplish its goals, including shareholder action at a special meeting. Private investment firm Kistefos owns 22.8 percent of Trico Marine's outstanding common stock. Kistefos attributed their actions to Trico Marine's "poor performance and extraordinary loss of shareholder value" over the past year. After reaching US$43.23 in April 2008, Trico Marine shares have fallen 90 percent in value. The company's indebtedness has increased to over US$800 million in the last year, and its ratio of debt to enterprise value is over 90 percent. Kistefos alleges a litany of poorly regarded business decisions, including failure to maximize returns in its core supply fleet while making insufficient investments in renewing and enhancing the fleet, failure to capitalize on the recent opportunities in the charter market and initiating an "ill timed fundamental change in its business focus" by making acquisitions in the subsea segment. As a non-U.S. company, Kistefos also wants an end to Trico Marine's Jones Act fleet, as it restricts foreign share ownership and limits the demand for and liquidity of Trico Marine shares. The letter also accused Trico Marine of having a hostile attitude towards shareholders, giving as examples the discontinuation of a share buy back program, adopting advance notice bylaws and maintaining "opaque disclosure properties."Trico Marine officials were unavailable for comment.
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Statoil - Terminating Rig Tender Process
”We focus on reducing costs and making strict priorities,” says Anders Opedal, head of procurements in StatoilHydro. The invitation to submit tenders for rig hire was distributed during the summer of 2008, and covered both semi-submersible mobile rigs and jack-up drilling rigs with contract start at the end of 2012. When the deadline for submitting tenders expired on 25 August StatoilHydro had received tenders for a total of 28 rigs from 15 suppliers. The rig rates have risen considerably the last years in a period of high oil price. From the invitation to tender was distributed and up to the present, the financial crisis has led to higher insecurity in the world economy, which has made the oil price drop by more than 60%. Based on changed framework conditions StatoilHydro decided to ask for updated tenders from the suppliers to be submitted by 1 December. The updated tenders included reduced rig rates. “Despite the reduction in the prices offered, there is still a considerable gap between the tenders and the expectations we have concerning the rates,” says Mr Opedal. “We have therefore decided to terminate the procurement process.”
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Chennai container traffic hit by trailer operators' strike
According to sources interviewed by The Hindu Business Line, around 5,000 vehicles have been on strike at the terminal since last week, and container vessels may be diverted to nearby Tuticorin port if the situation continues to worsen and containers pile up at the port. The paper states that, at last count, around 6,400teu in containers (4,100teu scheduled for import and 2,300teu for export) were waiting to be moved out of the private 10,000teu capacity container terminal. The Chennai-Ennore connectivity road project was conceived over ten years ago, but is yet to be completed. The project, originally scheduled for completion by end 2008, entails upgrades to the road connecting the port’s northern gate, shore protection and land reclamation work amongst a number of additional upgrades to connectivity between the ports. The project, which has escalated in cost to Rs 537 crore versus the original Rs 309 crore earmarked in 2000, is not likely to be completed before 2011.
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PTTEP snares Coogee for $170m
Perth-based Coogee currently operates the Jabiru and Challis offshore oilfields with a 70.94% stake, which together with its key development asset, the 100% owned Montara project, provides PTTEP with estimated proved oil reserves of 32 million barrels, plus proved and probable oil reserves of 45 million barrels, the Thai company said. PTTEP will also gain significant contingent resources from Coogee’s working interests in production and exploration licences, including AC/L7, AC/RL7, AC/P34, AC/P32 and AC/P40, the outfit said in a statement yesterday. Coogee’s gross output in the first six months this year was about 450 barrels per day of oil. The Thai company added that the investment upside includes an attractive opportunity to buy high quality development appraisal and exploration assets in the Bonaparte basin, plus potential monetisation of significant stranded gas resources via floating liquefied natural gas technology. PTTEP said it estimated Coogee's enterprise value per barrel of oil equivalent of proved reserves at about $12.90 per barrel and expected an upside potential of probable reserves of oil and natural gas for development in the future. The purchase, which is expected to be completed during the first quarter next year, will be funded by existing cash balances and cash flow from operations. PTTEP, which already has two exploration projects in Australia, has invested in 40 oil and gas exploration and development projects in 14 countries in the Middle East, Africa and Asia. More than 20 projects are under development overseas, although domestic fields account for 70 percent of total output. PTTEP intends to maintain Coogee's existing managment team and employees.
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Thursday, December 25, 2008
Hutton hull breaks free of tow line
The 23,000-tonne hull was en route from Murmansk to Cadiz when a cable from one of two tugs broke free close to Taqa’s North and South Cormorant and Eider platforms on Monday morning. The incident happened about 170 kilometres north-east of Lerwick. A spokesman for Shetland Coastguard said there is massive amount of subsea infrastructure in the area, including pipelines and manifolds, and the situation was being watched closely. However, he said the platform is attached to the remaining tug and there is no cause for alarm while the platform is not moving. He added another tug is moving to the scene and it is hoped North West Hutton will be reconnected this afternoon. The plan is then to move it to Shetland and then onto Invergordon in northern Scotland. It is not known when the journey to Cadiz will continue. The spokesman said the 200-metre tow line could cause damage to equipment on the seabed, which is at a depth of about 130 metres. He said: “There was bad weather and we were warned North West Hutton was approaching the platforms in the area on Sunday evening. “It was decided to hold it in position, then one of the lines broke free (on Monday morning).” A combination of bad weather and the unit's distance from shore prevented a replacement tug reaching the scene until today. The spokesman added that weather conditions in the area was now "relatively calm". Wind speeds are 20 to 25 knots with a 3.5 metre swell. United Arab Emirates-based Taqa became operator of the Cormorant and Ida fields, along with Kestrel, Tern and Pelican, on 1 December after buying them from Shell and ExxonMobil. The Hutton TLP topsides will be used on Gazprom's Prirazlomnoye field, in the Barents Sea.
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Vale said to have put $240m down payment to keep Rongsheng VLOC orders
Vale will pay another $240m to Rugao, Jiangsu province-based Rongsheng by the middle of next year as part of a $1.6bn contract, said one of the executives, who declined to be identified because the agreement is private. The purchase signals that Rio de Janeiro-based Vale has enough cash to meet investment plans even as rivals Rio Tinto Group and Anglo American Plc slashed spending to conserve capital in the deepening financial crisis. As many as 50 percent of Chinese shipyards may be shuttered in the next year as cargo demand drops and orders get canceled or delayed, according to the Shanghai Securities News.“There had been speculation in recent months that the order could be canceled because of the decline in iron ore demand and difficulties in getting loans secured,” said Cho In Karp, an analyst at Good Morning Shinhan Securities Co. in Seoul. “It still makes business sense for Vale to keep the order because China will continue to be a major buyer of raw material.
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Tighter trade finance hits shipping lines
Seaborne transportation of goods such as washing machines and other household appliances fell the most in at least 51/2 years in November, according to data published recently on the website of Neptune Orient Lines. Shipments dropped 12 per cent to 169,700 boxes in the four weeks to Nov 14, compared with a year earlier, it said. 'We have in some trades received feedback from customers and the market that they are having issues with letters of credit,' Michel Deleuran, head of network and product at Copenhagen-based Maersk Line, said. The issue is exacerbating 'a lack of demand in individual countries' as the global recession takes hold, he said. World trade in commodities, from oil and coal to timber and grains, has already been hurt by a reduction in the sums banks are willing to advance to customers to ensure payments. Maersk spokesman Michael Storgaard said on Oct 15 that container shipments of consumer goods weren't affected at the time. Reduced supply of trade finance has 'been a factor' in Neptune Orient Lines reporting its largest year-on-year decline in shipments since May 2003, David Goodwin, vice- president of NOL Group corporate affairs, said in a statement on Dec 12. 'The key driver behind lower demand for container shipping is the sharp reduction in consumer confidence and consumer spending globally,' he said. The cost of shipping containers has declined 'very dramatically' and at 'unprecedented' speed, Mr Deleuran said. He declined to be more specific because shipping lines can breach competition rules by discussing what they earn.
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Gamesa receives major turbine order from Longyuan
In 2009, Gamesa will supply 347 units of G5x-850 kW platform, manufactured at Gamesa's production facilities in Tianjin, China. The turbines will be installed at wind farms across several Chinese provinces.The scope of the order includes the supply of wind turbine generators without towers, supervision of assembly and start-up and two years of operations and maintenance. The projects are part of framework agreements entered into by the two companies for different wind energy projects. Gamesa was recently granted a EUR 200 million (US$279.5 million) loan from the European Investment Bank to fund the company's Research, Development and Innovation plan between 2008 and 2011. The loan will fund research into wind turbine components aimed at improving performance and cutting down energy costs. The research will be carried out at Gamesa's research centers in Navarre, Vixcaya and Madrid, Spain.
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StatoilHydro and Ecopetrol eye Gulf push
Under the terms of the deal, the pair will drill three or more wells in the coming years. StatoilHydro said the companies will also further mature prospects to potential drilling. StatoilHydro will remain the operator for all prospects. Ecopetrol will farm in to the wells covered by the agreement, taking stakes of around 20% to 30%.
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Wednesday, December 24, 2008
Gazprom rejects Ukraine's claim
Yushchenko said today his country had used its foreign currency reserves to pay down some of the debt for the Russian-supplied gas, and restructured the remainder. "A total of $800 million was paid from the reserve funds (of Ukraine's National Bank) and more than $200 million was transferred from Naftogaz profits, and a part of the debt was restructured for January-February," Yushchenko said. "So the issue has been resolved for today." "Such statements surprise us very much," Gazprom said in a statement. "As regards bilateral relations, there are no agreements on debt restructuring, and no documents on the issue have been signed." A Gazprom spokesman said earlier today that the company would continue talks to resolve the issue with the Ukrainian national energy company Naftogaz tomorrow, said a Ria Novosti report. "Oleh Dubyna (the head of Naftogaz) arrives tomorrow for a day or two," Sergei Kupriyanov said. After declaring the issue resolved, Yushchenko expressed the hope that a contract for gas supplies to Ukraine in 2009 would be signed in the near future. Moscow has warned Kiev that it will cut off gas supplies in the new year if Ukraine fails to repay its gas debt, and there are concerns that the transit of Russian gas to European customers via Ukraine could be affected. Ukraine has so far repaid only $1 billion out of its $2.4 billion debt for gas supplied in September, October and November. With December's supplies taken into account, Ukraine's gas debt was estimated by Swiss gas trader RosUkrenergo at $3.2 billion.
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NOL to restructure Asian operations in new year
"Despite the current depressed market environment, Asia will continue to be a cornerstone of world trade,” said NOL group ceo, Ron Widdows. “The structuring of our Asian operations around two key regions will support efforts to place NOL's cost base on a more sustainable footing, while enabling closer coordination of activities in adjacent countries. This will ensure we continue to provide the highest standards of service to our many customers whose supply chains touch Asia."Under the new structure, the existing Greater China region will be combined with the company's Japan and Korea operations - currently part of the Asia-Middle East region - to form a new North Asia region. NOL's current South Asia President Ken Glenn will take on the role of President North Asia.The current president of NOL’s Asia-Middle East region, Jim McAdam, will be the president of the South Asia region, which will encompass company activities across South East Asia, the Indian subcontinent, the Middle East and Australasia.Dan Ryan, who has been the president of NOL's Greater China region since August 2006, is to take up a key role with the company in the United States.
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Lawsuits and claims escalate in the dry bulk sector, reaching an estimated $300 million
Especially, at a time when every cent actually counts, no one is prepared to step back and compromise, from banks and charterers, to ship owners and shipyards. As a result, the market’s downturn has brought serious problems on the surface, such as a flurry of lawsuits and law disputes, which appeared mainly because of charter contracts breaching. Miners, charterers and ship owners are virtually on the verge of war, after a series of previous agreements were breached. Norwegian Handymax specialist Western Bulk Carriers is claiming a total of USD 5.4 million from Arcelor Mittal after it allegedly breached agreements to charter ships for four, 40,000 tonne iron ore cargoes. Similarly, London based Zodiac Maritime Agencies is also suing ArcelorMittal for USD 101 million, according to a November 24th 2008 filing. Earlier this month ArcelorMittal settled claims from SwissMarine Services and commodities trader Louis Dreyfus over failed iron ore shipments. The filing was made on December 8th 2008 in the New York Southern District Court. It’s more than obvious that the rates crisis has triggered a cascading series of claims over alleged contract defaults and early deliveries, as well as failure to pay forward freight agreement contracts. As a result even major dry bulk charterers are listed as defendants, underscoring claims by owners that even safe or blue chip companies are refusing to pay for ships they have hired since the mid September collapse in shipping rates.
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StatoilHydro - New Exploration Licenses
“We are pleased with the award, which gives us important new exploration acreage close to the existing infrastructure we are operating on the NCS, ” says Tove Stuhr Sjøblom, senior vice president for explorations on the NCS. The Norwegian government discussed the proposal for awards in the APA 2008 on 18 December. The offer submitted to the oil companies includes 34 production licenses in areas already opened for petroleum activities. 21 of the production licenses are awarded in the North Sea, 11 in the Norwegian Sea and two in the Barents Sea. StatoilHydro has been awarded interests in four licenses in the North Sea and three licenses in the Norwegian Sea. “We have completed a highly comprehensive and successful exploration program in 2008,” says Ms Sjøblom. “The new exploration opportunities are in areas which may add volumes to fields in production and thereby help extend their lifetime.
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Pride to spin off mat-supported jackup business
The spin-off is scheduled for 2009. A filing with the U.S. Securities and Exchange (SEC) Commission said that the spin-off was conditional on being ruled tax-free for shareholders. Pride International shareholders will receive shares of Spinco. Randall D. Stilley, former president and CEO of Hercules Offshore, will be the new president and CEO of Spinco. Stilley said that Spinco would focus on jackup drilling services in the Gulf of Mexico, including both U.S. and Mexican waters. The company intends to reassign, upgrade and expand its fleet to meet market demand through asset purchases and market consolidation. Spinco will also try to perform as a low-cost service provider with smaller rig and crew sizes.The SEC filing stated that the new company was uncertain on the market outlook, as day rates and utilization have fallen, along with oil and natural gas prices. The large amount of newbuild rigs under construction or on order was also identified as a possible concern, but since many of those rigs will be contracted outside the Gulf of Mexico, Spinco determined that the effect would not be great. The company identified its leading presence in the Gulf of Mexico, strong relationship with its customer base, strong capital structure and experienced management team as strengths.
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Tuesday, December 23, 2008
India moots March bidding round
Upstream regulator V.K. Sibal said the next bidding round, India's eigth under its New Exploration and Licencing Policy, would be the largest ever, and added the collapse in the price of crude had had a knock on effect on the cost of exploration. "It is a good opportunity for them (bidders) to get huge acreage at low, cheap prices in a competitive environment," he Sibal said. BP's exploration director for South Asia, Jonathan Evans, said seismic rates had almost halved over the last six months to $5000 per square kilometre, but rig rates were yet to fall. "We have started seeing seismic acquisition rates going down but rig rates have not changed. Seismic contracts are short-term and rig contracts are for two to three years." An official at Reliance Industries , India's leading private sector exploration and refining company, said rig rates were expected to drop next year in line with the fall in crude. Overseas bidders were lukewarm to India's previous auction round, which closed in June when global crude prices were over $100 a barrel. But crude prices have since plummeted to under $40 a barrel. India received bids for 45 of 57 blocks in the previous round but signed contracts for just 41 as the federal cabinet did not allow the award of one block to lone bidder Cairn Energy while three winners have sought more time. "Contracts for the two blocks of GeoGlobal Resources and one awarded to Interlink will not be signed today. They have sought more time," said S.K. Srivastava, deputy director general at the upstream regulator, the Directorate General of Hydrocarbons. At home, falling crude prices have pressured Oil and Natural Gas Corporation's margins, and the government has responded with the promise of a new mechanism to ease the burden from compensating state-run fuel retailers by selling them cheap crude. "Oil prices have gone down so much that ability of oil upstream firms (to offer discounted crude) envisaged in June has gone down, so the oil companies asked us to look into it ... the matter is under consideration," said Oil Secretary R. S. Pandey. ONGC chairman R.S. Sharma said crude prices of $75 a barrel were reasonable levels at which upstream companies could keep investing and Ongc would review its spending plans if crude stays at current rates for a prolonged period, reported Reuters.
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HPH and NYK enter share swap agreement for European terminals
In exchange for the majority stake in CTE, NYK will have a minority stake in Europe Container Terminals in Rotterdam. Commenting on the agreement, John Meredith, HPH group md, said, “The investment in CTE will help strengthen HPH’s presence in Northern Europe through the addition of extra container-handling capacity. CTE’s strategic location allows it to attract deep-sea and feeder traffic as well as inland traffic.”NYK chairman Takao Kusakari said, “This agreement gives us the opportunity to enhance our cooperation with HPH while further tapping into HPH’s network of Northern European ports.” CTE is a holding company of two wholly owned subsidiaries, Ceres Paragon Terminals (CPT) and Ceres Amsterdam Marine Terminals (CAMT). CPT is made up of three berths – one 400-by-57-mtr indented berth and two conventional berths with a combined length of 615 mtrs and a depth alongside of 15 mtrs. CPT also has an excellent on-dock rail facility with three 700-mtr-long tracks that reach out towards the edge of the quay deck for the fast and efficient handling of containers. CAMT is a Ro-Ro terminal that performs stevedoring activities for automobile carriers and has a number of warehouses for the storage of cocoa.
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Dry bulk market loses steam
Monday’s session, in reality followed the trend set at the end of the past week, with the BDI shedding 17 points, ending down at 801 points. It seems that the rebound of the past 10 days proved short-lived and the market has to endure freight levels close to all-time lows for quite some time. Dahlman Rose’s morning report indicated that it all comes down to steel demand, which in turn directly affects commodities demand like iron ore. According to steel production data for November, “global production stood at 89 million tons, which represents a 10 million ton sequential decrease, and a 30 million ton decrease from the peak month of July” said Dahlman. As a result, the 23 capesize iron ore cargoes fixed for China delivery last week (versus 22 cargoes the week before), don’t seem enough to support current freight levels, with both Australia and Brazil iron ore export activity slowing down considerably. This was reflected on Monday’s Capesize Index (BCI), which was down by a significant 50 points, at 1373, losing some of the previous gains. The Panamax index kept its momentum, being the only one recording gains during yesterday’s session, ending at 583 points, up by 8. Commenting on the BCI’s trend, Barry Rogliano Salles (BRS) in its latest weekly report said that “there are now fears that rates could drift as operators head into Christmas and the holiday period. Despite this, there was some period business to report: two modern 170,000 tonners were fixed for approximately one year at US$20,000/day and US$21,000/day respectively, with prompt delivery between December – February”. On a similar pace, explaining the recent upsurge of the panamax market, BRS said that “the real situation is that there is an increase in activity prior to the Christmas break, and we still have yet to see a change in the underlying fundamentals”.
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Moscow oversees signing of 'gas Opec'
Russia will host a meeting of energy ministers from at least 11 gas exporting countries such as Iran, Qatar and Venezuela -- members of an informal club called the Gas Exporting Countries Forum (GECF) that Moscow has sought to strengthen. Although Russia said this so-called "gas Opec" is not meant to emulate Opec's policies in setting output quotas, tomorrow's gathering will be closely watched by consuming nations. Russian officials said the members would agree on a charter that would make GECF a more formal organisation with a headquarters in St Petersburg, although the body would keep the same name. Russia's Prime Minister Vladimir Putin will attend the forum while President Dmitry Medvedev will host a dinner at the Kremlin tomorrow evening. The global credit crisis has heightened Russia's dependence on revenues from oil and gas as the rouble slides and the government spends its cash pile to support the economy, so Moscow wants to increase its political clout on energy markets. Medvedev said earlier this month Russia is considering all options including joining Opec to defend its national interests, although ir offered no cuts or special deals to Opec at a meeting in Algeria last week. The forum's country members include Algeria, Bolivia, Brunei, Egypt, Indonesia, Iran, Libya, Malaysia, Nigeria, Trinidad and Tobago, UAE, Qatar, Russia, Venezuela and two observer members -- Equatorial Guinea and Norway.
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Monday, December 22, 2008
Largest Containership Classed by GL
The newbuilding named MSC Daniela has a capacity of 13,800 TEU. To meet SOLAS requirements for bridge visibility on the large containership, the design includes the separation of deckhouse and engine room. The arrangement of the deckhouse in the forward part of the ship permits an increase in container capacity and a reduction in ballast water. In addition, the international regulations on the protection of fuel tanks are being fulfilled, since they are located in the protected area below the deckhouse. Also, reduced bending as well as increased stiffness of the hull had been realized in the design. The use of high tensile steels (HTS) was a prerequisite for building the megaboxer. Due to HT steel the plate thickness had been reduced to allow lightweight and strong ship construction. This was necessary to keep the plate and stiffener dimensions at an acceptable level. Hamburg-based classification society Germanischer Lloyd conducts safety surveys on board of more than 6,800 ships with about 77 Mio GT.
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Dubai looks to Hamburg to become best port in Middle East and Asia
"We are looking at Hamburg, which is the second largest container port in Europe, even though it is on a river and ours is on the sea," said Hesham Al Shirawi, vice president of Dubai Chamber of Commerce. "In Dubai, we are trying to become the best possible port, not only in the region, but in Asia. It won't be easy and it won't be fast, but it is possible," he added. Al Shirawi was speaking at the Dubai-Hamburg business forum. Hamburg Port recorded a volume of 140 million tonnes of cargo in 2007 and 9.9 million TEUs (twenty-foot equivalent container units). Around 50 per cent of the world container fleet is managed by Hamburg-based enterprises, according to Hans-Jorg Schmidt-Trenz, chief executive of Hamburg Chamber of Commerce. "It is clear that Dubai looks to Hamburg to foster its own harbour function," Schmidt-Trenz said.
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China Plans to Send Three Warships to Somalia to Combat Pirates
China’s Ministry of Defense will send two destroyers and a supply ship to the Gulf, the official Xinhua News Agency reported yesterday, citing Liu Jianchao, a Foreign Ministry spokesman. The vessels will depart from Sanya in China’s southern province of Hainan on Dec. 26. Pirates in the area have increased attacks on ships using the Suez Canal, and vessels transporting oil from Sudan and Saudi Arabia to China. The United Nations on Dec. 16 authorized a resolution that allows governments to pursue the brigands into inland Somalia. “Chinese naval vessels will strictly follow UN Security Council resolutions and international laws,” Xinhua cited Liu as saying. Somali pirates have attacked about 120 boats in the region this year, seizing at least 40 vessels and collecting more than $120 million in ransoms. Some 20 percent of Chinese ships passing through the area between January and November were attacked by pirates, Xinhua reported. China’s ships will join vessels from the European Union, which on Dec. 8 approved sending a naval force to the area, the 27-nation organization’s first such mission.
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China to speed up south-to-north water diversion project
The head of the project office Zhang Jiyao said that the South-to-North Water Diversion Project is designed to divert water from the water-rich south of the country, mainly the Yangtze, the country's longest river, to arid northern parts. The huge project consists of eastern, middle and western routes. The eastern and middle routes are already under construction. The western route, meant to replenish the Yellow River with water from the upper reaches of the Yangtze through tunnels in the high mountains of western China, is still at the planning stage. Mr Zhang said a number of key projects along the eastern and middle routes would start next year. He added that investment of up to US$37.2 billion had been allowed by the State Council, or the Cabinet, for the phase-one projects along the eastern and middle routes. The Project's statistics showed that a total US$6.68 billionof investment had been earmarked for the huge water project by the end of November, and US$3.32 billion had already been spent, with US$650 million on the eastern route and US$2.68 billion on the middle route.
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Sunday, December 21, 2008
Brown: Oil price fluctuations are major problem
Brown was speaking at the London Energy Meeting, where energy and oil ministers from 27 key oil-producing and consuming countries met to discuss the impact of the financial crisis on the global energy market Also attending were the head of the Organization of Petroleum Exporting Countries and representatives of the world's leading oil companies. The event comes after Wednesday's OPEC summit _ where oil producers agreed to slash production to support oil prices _ and follows a similar meeting in June in Jeddah, Saudi Arabia. At the time the price of oil was near a record high of over $140 per barrel, and talks centered on how to increase supply to keep up with demand. Times have changed. During the past five months, oil has lost all the price gains it made over the last four years. It was trading Friday just under $36 dollars a barrel, and Friday's meeting is centered on how leaders can work together to avoid volatility and stop the price from further plummeting. A recent attempt at addressing the problem wasn't successful. OPEC agreed Wednesday to cut a record 2.2 million barrels from its daily production as of Jan. 1. However, the price of oil has continued to slip since that announcement was made. One reason is oil-producing countries outside of OPEC, including Russia, haven't agreed to the same cuts. When oil prices sink too low, oil-producing countries have less money to invest in production for the future _ creating the risk of a spike in prices down the line. "Wild fluctuations in market prices harm nations all round the world," Brown said. "They damage consumers and producers alike."
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Korean Register fleet at all-time high as international presence expands
Attention to quality, technology and customer service remain key drivers in the class society's fleet growth, however. Chairman and CEO, Mr. Oh Kong-gyun, is determined to eliminate sub-standard ships within KR’s fleet and is taking bold steps in order to achieve that. To this end, he has established a “flying squad” of experienced surveyors dedicated to assisting vessels categorized as requiring “special attention” during PSC inspections and is offering pre-inspection services for vessels scheduled to enter a port where PSC inspection is expected. Extension of the organization’s international presence, in order to provide global service to customers, also continues apace. KR opened European Headquarters in October, 2008 and says it plans to expand its Western Asian and South Western Asian presences shortly, to complement its current network of 44 offices in major ports around the world.
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