The shipping community in India has stepped up its campaign over the sentencing of two Indian seafarers, Captain Jasprit Chawla and chief officer Chetan Syam, in South Korea in connection with an oil spill in Korean waters in December 2007, media reports said.
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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Friday, December 26, 2008
Oil rises over $36 on UAE supply cuts
Crude climbed above $36 a barrel today after the UAE joined Saudi Arabia in deepening oil supply curbs to comply with Opec's biggest-ever output cut last week as it told refiners it would stiffen shipping limits on exports of its main grades.
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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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
HOUSTON: Oslo-based Kistefos AS, the largest shareholder in support vessel services provider Trico Marine Services, has sent a letter to Trico's board of directors requesting that Kistefos Chairman Christen Sveaas and CEO Age Korsvold be appointed to the board, and asking that Trico declassify its board of directors.
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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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
StatoilHydro is terminating its procurement process for rig hire for operations on the Norwegian continental shelf due to high rig rates.
”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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”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
Mumbai: The indefinite strike currently underway by trailer operators protesting the delay in executing the Chennai-Ennore road connectivity project has affected container movement at the DP World operated terminal .
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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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
Thailand’s state oil company PTT Exploration & Production has signed a deal to buy 100% interest in Australian oil producer Coogee Resources.
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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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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