Pirates hijacked two chemical tankers: the Bahamian-flagged, Norwegian-owned vessel Bowasir March 25 and the Panamanian-flagged, Greek-owned Nipayia March 26, a Navy spokesman confirmed. Bowasir and its 23-member crew were operating more than 380 nautical miles southeast of Kismayo, Somalia. Nipayia and its 19 merchant mariners were pirated 490 nautical miles east of Mogadishu, the official said. The seizures were the farthest yet from the Gulf of Aden, where the U.S. Navy 5th Fleet and the international community stepped up patrols after piracy soared last year. "This appears to be a new round of attacks well off the east coast of Somalia vs. in the Gulf of Aden where we had seen the majority of attacks last year and in 2009 to date," the official said. The latest hijackings expand the pirates' operating area, creating what the official called "a monumental challenge" to those working to prevent piracy. "To put the challenge into geographic perspective, the area involved off the coast of Somalia and Kenya as well as the Gulf of Aden equals more than 1.1 million square miles," he said. "That is roughly four times the size of the U.S. state of Texas or the size of the Mediterranean and Red Seas combined."
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Tuesday, March 31, 2009
Ship Seizures Broaden Piracy Challenge
Two ship seizures in the Indian Ocean in recent days appear to indicate that pirates have broadened their focus beyond the heavily patrolled Gulf of Aden.
ExxonMobil cheers Bass Strait flows
ExxonMobil will next month celebrate 40 years of oil and gas production from the Bass Strait off the Australian state of Victoria.
It has been four decades since the first gas from Bass Strait was piped to homes and businesses in Melbourne via the company’s processing plant at Longford.Now, almost four billion barrels of crude and seven trillion cubic feet of natural gas have been produced since the first well was drilled in the Strait. “The future remains bright for ExxonMobil’s Bass Strait operations, its dedicated workforce and the Victorian community with the multi-billion dollar Kipper and Turrum projects set to begin in 2011,” the company said today.Read More
It has been four decades since the first gas from Bass Strait was piped to homes and businesses in Melbourne via the company’s processing plant at Longford.Now, almost four billion barrels of crude and seven trillion cubic feet of natural gas have been produced since the first well was drilled in the Strait. “The future remains bright for ExxonMobil’s Bass Strait operations, its dedicated workforce and the Victorian community with the multi-billion dollar Kipper and Turrum projects set to begin in 2011,” the company said today.
Ultra deepwater drilling rig named ‘Ensco 8501’
Keppel FELS Limited, Singapore, has named an ultra-deepwater semisubmersible ‘Ensco 8501’.
This is the second in a series of seven deepwater semis to be constructed by Keppel FELS for Ensco International Incorporated (Ensco), USA. ‘Ensco 8501’ will be chartered by Noble Energy (Noble) and Nexen Petroleum (Nexen). The first deepwater rig, ‘Ensco 8500’, was delivered in June 2008.‘Ensco 8501’ was named in the presence of Senior Minister of State (SMS) for National Development, Grace Fu, by Lanita C Weisinger, wife of Don Weisinger, Drilling Manager (Southern Region) at Noble Energy.“Despite the global financial turmoil and volatile oil prices, the long-term outlook for the oil and gas industry remains good, with sustained energy demand coming from both developed and emerging economies,” said SMS Fu. “For this reason, national and international oil companies are continuing with their exploration and production investments to boost future reserves. However, competition is expected to be very stiff. To thrive, offshore companies…have to stay focused on managing the market changes with flexible and innovative measures.”Read More
This is the second in a series of seven deepwater semis to be constructed by Keppel FELS for Ensco International Incorporated (Ensco), USA. ‘Ensco 8501’ will be chartered by Noble Energy (Noble) and Nexen Petroleum (Nexen). The first deepwater rig, ‘Ensco 8500’, was delivered in June 2008.‘Ensco 8501’ was named in the presence of Senior Minister of State (SMS) for National Development, Grace Fu, by Lanita C Weisinger, wife of Don Weisinger, Drilling Manager (Southern Region) at Noble Energy.“Despite the global financial turmoil and volatile oil prices, the long-term outlook for the oil and gas industry remains good, with sustained energy demand coming from both developed and emerging economies,” said SMS Fu. “For this reason, national and international oil companies are continuing with their exploration and production investments to boost future reserves. However, competition is expected to be very stiff. To thrive, offshore companies…have to stay focused on managing the market changes with flexible and innovative measures.”
CSCL joins the fray in cutting capacity
Shanghai: China Shipping Container Lines Company will cut capacity for the first time this year as sea-cargo slows amid the global recession, Bloomberg reports.
China's second-biggest container carrier plans to reduce capacity by four per cent by returning leased vessels, Chairman Li Shaode said. The shipping line slumped to its first half-year loss since listing in 2004 in the second half as US and European consumers pared spending on Asian-made goods amid the recession. The company's expects sales this year to fall 15 per cent, it said in a Shanghai stock exchange statement Friday."2009 is a critical year," Li said. "Whether we can walk out from the bottom of this valley depends on the global economy and trade.”The company plans to raise rates from next month to pare losses, managing director Huang Xiaowen said.
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Aker to deliver work-over system for Kristin field
OSLO: Aker Solutions has been awarded a contract by StatoilHydro for the delivery of a complete work-over system for subsea trees at the high-pressure/high-temperature (HP/HT) Kristin field in the Norwegian Sea.
The contract value is approximately NOK 330 million (US$48.64 million). The contract party is Aker Solutions subsidiary Aker Subsea AS.The work scope includes engineering, procurement, manufacturing and testing of a complete work-over intervention system, including tools. The system equipment will be engineered and manufactured out of Aker Solutions' facilities at Fornebu and Tranby, Norway. Deliveries of the equipment are scheduled to be finalized in May 2010.The contract is a call-off from the frame agreement signed between StatoilHydro and Aker Solutions in the third quarter of 2007. The delivery is for StatoilHydro's Kristin Tool Pool & Exploration and Production North unit. This is the third work-over system Aker Solutions will be delivering to StatoilHydro's Kristin field, which is a HP/HT field with temperatures up to 180 degrees Celsius and pressures up to 15,000 psi.Read More
The contract value is approximately NOK 330 million (US$48.64 million). The contract party is Aker Solutions subsidiary Aker Subsea AS.The work scope includes engineering, procurement, manufacturing and testing of a complete work-over intervention system, including tools. The system equipment will be engineered and manufactured out of Aker Solutions' facilities at Fornebu and Tranby, Norway. Deliveries of the equipment are scheduled to be finalized in May 2010.The contract is a call-off from the frame agreement signed between StatoilHydro and Aker Solutions in the third quarter of 2007. The delivery is for StatoilHydro's Kristin Tool Pool & Exploration and Production North unit. This is the third work-over system Aker Solutions will be delivering to StatoilHydro's Kristin field, which is a HP/HT field with temperatures up to 180 degrees Celsius and pressures up to 15,000 psi.
Monday, March 30, 2009
Carbon Trust gives funding to Pure Marine Gen
BELFAST, UK: U.K. government-backed company the Carbon Trust has awarded Belfast-based company Pure Marine Gen over GBP 153,000 (US$219,368) to accelerate development of its wave energy converter.
The company's DUO WEC converter concept aims to improve the efficiency with which energy is captured from the sea by harnessing power from the vertical and horizontal motion of waves. The funding will be used to conduct mathematical modeling, carry out a series of tank tests and produce design drawings for a prototype. In the long term, Pure Marine Gen plans to develop devices with a capacity of over 2 MW each. When deployed in large arrays, these could have a generating capacity of over 500 MW.The Carbon Trust is looking for other technologies with significant carbon saving potential to receive up to GBP 500,000 (US$716,948) of grant funding through its Applied Research scheme. Three open calls are held each year, with the current deadline April 16.
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US deploys anti-missile ships before N.Korea launch
SEOUL - The United States plans to deploy two missile-interceptor ships from South Korea on Monday, a military spokesman said, days ahead of a North Korean rocket launch seen by many as a test of its longest-range missile.
The launch presents the first significant challenge by the prickly state to U.S. President Barack Obama, who makes his first major international appearance this week at the G-20 summit where he will discuss Pyongyang’s intentions with global leaders including Chinese President Hu Jintao. The United States, however, has no plans to shoot down the rocket in a test seen by Washington as part of Pyongyang’s goal to eventually develop an intercontinental ballistic missile, U.S. Defence Secretary Robert Gates said on Sunday. “I would say we’re not prepared to do anything about it,” Gates said on “Fox News Sunday”. “If we had an aberrant missile, one that looked like it was headed for Hawaii, we might consider it,” he said, adding the Pentagon does not believe North Korea can put a warhead on the missile or reach the U.S. West Coast.U.S. Forces Korea plans to dispatch two Aegis-equipped destroyers currently at the South Korean port of Busan, a spokesman said without offering further details. Local media quoted informed sources as saying the vessels with sophisticated radar will monitor the launch. Japan deployed two missile-intercepting vessels to waters off its west coast at the weekend. The North Korean rocket is supposed to drop booster stages to the east and west of Japan. Government officials said Tokyo is poised to shoot down debris that poses a threat to its public.Read More
The launch presents the first significant challenge by the prickly state to U.S. President Barack Obama, who makes his first major international appearance this week at the G-20 summit where he will discuss Pyongyang’s intentions with global leaders including Chinese President Hu Jintao. The United States, however, has no plans to shoot down the rocket in a test seen by Washington as part of Pyongyang’s goal to eventually develop an intercontinental ballistic missile, U.S. Defence Secretary Robert Gates said on Sunday. “I would say we’re not prepared to do anything about it,” Gates said on “Fox News Sunday”. “If we had an aberrant missile, one that looked like it was headed for Hawaii, we might consider it,” he said, adding the Pentagon does not believe North Korea can put a warhead on the missile or reach the U.S. West Coast.U.S. Forces Korea plans to dispatch two Aegis-equipped destroyers currently at the South Korean port of Busan, a spokesman said without offering further details. Local media quoted informed sources as saying the vessels with sophisticated radar will monitor the launch. Japan deployed two missile-intercepting vessels to waters off its west coast at the weekend. The North Korean rocket is supposed to drop booster stages to the east and west of Japan. Government officials said Tokyo is poised to shoot down debris that poses a threat to its public.
Cruise contract uncertainties rock STX Europe
The current economic environment is causing uncertainties pertaining to contracts signed for cruise ships to be built at STX Europe.
In March 2008, the Royal Caribbean Group signed an initial contract to build the fourth 158,000GT vessel for the fleet’s Freedom-class. However it now seems that the likelihood of this becoming a firm order is slim. “The prospects of this agreement becoming a firm contract is considered less likely than when the understanding was announced in March 2008,” said a statement issued by the yard. “STX Europe’s customers are generally financially sound and nearly all projects in the company’s portfolio already have secured financing; however, in the current economic environment and with uncertain market prospects, the risk of defaults on payments for project deliveries cannot be ruled out.”
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Guangzhou shipyard merger called off
Hong Kong: China's Guangzhou Shipyard International Co said on Friday it will call off a proposed $445 million acquisition of a shipyard from its state-owned parent as its shares have slumped in the global financial crisis.
The company's board also approved dropping a planned rights issue, it said in a statement.Guangzhou Shipyard, controlled by China State Shipbuilding Corp (CSSC), said in July it was the sole qualified bidder for Guangzhou Wenchong Shipbuilding Ltd, and would pay 3.04 billion yuan ($445 million) for the asset. It planned to fund the acquisition through a rights issue.
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World Trade Volume Will Fall 9% in 2009
2009 proves to be a tough year so far for the shipping industry and especially the dry bulk shippers as the world recession hammered the trade of commodities and exporting goods from Asia and the rest of developing world.
At the same time, consumption has been reduced at the developed nations, something that leads to less imports of goods and products. According to the World Trade Organization world merchandise trade is likely to fall some 9% in volume terms in 2009 with developed economy exports falling by some 10% on average and developing country exports shrinking by 2—3%. These are bad news for the world’s shippers, as international shipping transports about 90% of world trade by volume. Without shipping, intercontinental trade, the bulk transport of raw materials and the import/export of affordable food and manufactured goods would simply not be possible, but at the same time the fall of cargoes plagues the industry. WTO analysts underline that a normal pattern for a recession, where trade falls, remains weak for a time and then resumes its upward trajectory and begins to return to its previous trend. If that scenario is correct, that means we are in the heart of recession, but the future looks more bright.Trade prospects for 2009 are heavily conditioned by the financial crisis that began almost two years ago in the United States.Read More
At the same time, consumption has been reduced at the developed nations, something that leads to less imports of goods and products. According to the World Trade Organization world merchandise trade is likely to fall some 9% in volume terms in 2009 with developed economy exports falling by some 10% on average and developing country exports shrinking by 2—3%. These are bad news for the world’s shippers, as international shipping transports about 90% of world trade by volume. Without shipping, intercontinental trade, the bulk transport of raw materials and the import/export of affordable food and manufactured goods would simply not be possible, but at the same time the fall of cargoes plagues the industry. WTO analysts underline that a normal pattern for a recession, where trade falls, remains weak for a time and then resumes its upward trajectory and begins to return to its previous trend. If that scenario is correct, that means we are in the heart of recession, but the future looks more bright.Trade prospects for 2009 are heavily conditioned by the financial crisis that began almost two years ago in the United States.
Sunday, March 29, 2009
FreeSeas Inc. Announces 2008 Fourth Quarter and Year End Financial Results
FreeSeas Inc., a transporter of dry bulk cargoes through the ownership and operation of a fleet of seven Handysize vessels and two Handymax vessels, yesterday announced financial results for its fourth quarter and year ended December 31, 2008.
Mr. Ion Varouxakis, President and CEO of FreeSeas, stated, `We are particularly pleased to report strong results for the year ended December 31, 2008, a transformational year for our Company. During 2008 we grew our fleet from five to nine vessels, lowered the average age of our fleet and secured frontloaded charters. We decided not to enter into newbuilding contracts or engage in a chartering policy of spot only coverage or long period charter at unsustainably high rates, opting instead to adopt a balanced chartering strategy.The Company's focus in the smaller and versatile Handysize market provides for distinct competitive advantages over the larger dry bulk segments. Our vessels can transport a wider array of cargo, access a larger number of ports due to their shallow draft and onboard crane equipment, and have historically achieved greater charter rate stability. The worldwide Handysize fleet has been shrinking over the last few months, as scrapping of over-age tonnage has far outweighed newbuilding deliveries. As a result, over the last few weeks Handysize rates have outperformed those of larger vessels. We are optimistic that this trend will continue, which will in turn greatly increase the earning potential of our fleet.
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Piracy latest: two European tankers seized off Somalia
Two European-owned tankers have been hijacked off the Somali coast, prompting an alert for other vessels to watch for a pick-up in pirate activity, AFP writes, quoting the EU's anti-piracy naval mission.
The Maritime Security Centre run by the EU naval force said that the 9,000-tonne Greek-owned, Panamanian-flagged M.V. Nipayia was seized on Wednesday with its crew of 19. A Greek merchant marine ministry spokesman said the chemical tanker's Russian captain and 18 Filipino crew members were in good health and that the boat's owner, Lotus Shipping, had begun negotiations with the pirates.The incident was followed early on Thursday with the capture of the 23,000-tonne Norwegian-owned and Bahamian-registered M.V. Bow-Asir with an unspecified number of crew. Salhus Shipping, which owns the tanker, said in a statement from Norway that the crew numbered 27 members of different nationalities and that they had contacted the company after 16 to 18 pirates came aboard with automatic weapons."We have no reports of any injuries," said company director Per Hansen. "We are doing our utmost to ensure the safety of the crew, and have established communication lines with naval forces, insurance companies,flag state and charterer".
The Maritime Security Centre run by the EU naval force said that the 9,000-tonne Greek-owned, Panamanian-flagged M.V. Nipayia was seized on Wednesday with its crew of 19. A Greek merchant marine ministry spokesman said the chemical tanker's Russian captain and 18 Filipino crew members were in good health and that the boat's owner, Lotus Shipping, had begun negotiations with the pirates.The incident was followed early on Thursday with the capture of the 23,000-tonne Norwegian-owned and Bahamian-registered M.V. Bow-Asir with an unspecified number of crew. Salhus Shipping, which owns the tanker, said in a statement from Norway that the crew numbered 27 members of different nationalities and that they had contacted the company after 16 to 18 pirates came aboard with automatic weapons."We have no reports of any injuries," said company director Per Hansen. "We are doing our utmost to ensure the safety of the crew, and have established communication lines with naval forces, insurance companies,flag state and charterer".
Shanghai to advance as international financial and shipping centre by 2020
State Council of China yesterday gave a green light signal to enhancing the position of Shanghai as the country's major international financial and shipping center by 2020, write China Daily and Xinhua.
"Accelerating Shanghai's development in modern services, manufacturing, finance and shipping would be of great advantage for the Yangtze River Delta and the whole nation at large," the council said at an executive meeting.It urged Shanghai to be developed into a multi-functional financial center by 2020 to keep up with "China's economic influence and the yuan's international position." To achieve the target, Shanghai would be required to open up more financial sectors and improve services.Shanghai can now expect strong growth momentum after the city's industrial output dropped by as much as 12.7% year-on-year in the first two months of the year due to dwindling exports.Shanghai's GDP growth dropped to 9.7% year-on-year in 2008, the first time it fell below 10% since 1992.
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Dry bulk market still point South
The Baltic Dry Index seems unable to cope with the downward pressures currently applied in the dry bulk market, as negotiations between iron ore miners and steel industry players of China and others aren’t yet concluded.
Despite an earlier estimate that this year’s negotiations would be among the quickest of these past few years, miners proved reluctant to concede significantly lower prices (40-50%), mainly because of the BDI’s rally at the beginning of the year. This has now proven to be weighing heavily on the dry bulk market, with more and more cargoes being left out in the dry.The BDI has been steadily plunging for more than 11 sessions, ready to fall for a third straight week. Yesterday, the BDI ended at 1,714 points, down by 26, with falls obvious among all ship types. The Capesizes and the Supramaxes were the two biggest losers, with the Capesize index losing 35 points at 2,134, while the Supramax index shed another 33 points at 1,365. As a result, the average daily time charter rate for a capesize has now dropped at $19,034, when at the peak of this year’s rates it could fetch up to $35,000 on average. Similarly, the Panamax sector has found itself again below the Supramax field, with average daily rates standing at $12,262, against $14,271 for the supramaxes. According to Fearnley’s latest weekly report, for the panamax sector there are no clear signs of any recovery, but it “seems like the market has flattened out and found a bottom”. As for the capesize market, the broker said that “uncertainty prevails and focus on both sides is on covering spot positions.
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Despite an earlier estimate that this year’s negotiations would be among the quickest of these past few years, miners proved reluctant to concede significantly lower prices (40-50%), mainly because of the BDI’s rally at the beginning of the year. This has now proven to be weighing heavily on the dry bulk market, with more and more cargoes being left out in the dry.The BDI has been steadily plunging for more than 11 sessions, ready to fall for a third straight week. Yesterday, the BDI ended at 1,714 points, down by 26, with falls obvious among all ship types. The Capesizes and the Supramaxes were the two biggest losers, with the Capesize index losing 35 points at 2,134, while the Supramax index shed another 33 points at 1,365. As a result, the average daily time charter rate for a capesize has now dropped at $19,034, when at the peak of this year’s rates it could fetch up to $35,000 on average. Similarly, the Panamax sector has found itself again below the Supramax field, with average daily rates standing at $12,262, against $14,271 for the supramaxes. According to Fearnley’s latest weekly report, for the panamax sector there are no clear signs of any recovery, but it “seems like the market has flattened out and found a bottom”. As for the capesize market, the broker said that “uncertainty prevails and focus on both sides is on covering spot positions.
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Saturday, March 28, 2009
Crude closes above $54 for first time this year
Oil prices hit a new high for the year Thursday and retail gasoline rose above $2 per gallon for the first time since November as investors wagered that there would be a new run on crude stocks.
Benchmark crude for May delivery rose $1.57 to settle at $54.34 a barrel on the New York Mercantile Exchange. In London, Brent prices rose $1.71 to settle at $53.46 a barrel on the ICE Futures exchange. Gas prices rose 2.3 cents a gallon overnight to a new national average of $2.009 per gallon, according to auto club AAA, Wright Express and Oil Price Information Service. Pump prices are 10.9 cents higher than a month ago, but $1.252 lower than the same period last year. Gas prices last hit $2 on Nov. 20. Analysts have struggled to explain the recent surge in energy prices, especially as reports continue to pour out from the federal government showing that the U.S. economy is shrinking and its oil inventories are bloated with surplus crude.
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Benchmark crude for May delivery rose $1.57 to settle at $54.34 a barrel on the New York Mercantile Exchange. In London, Brent prices rose $1.71 to settle at $53.46 a barrel on the ICE Futures exchange. Gas prices rose 2.3 cents a gallon overnight to a new national average of $2.009 per gallon, according to auto club AAA, Wright Express and Oil Price Information Service. Pump prices are 10.9 cents higher than a month ago, but $1.252 lower than the same period last year. Gas prices last hit $2 on Nov. 20. Analysts have struggled to explain the recent surge in energy prices, especially as reports continue to pour out from the federal government showing that the U.S. economy is shrinking and its oil inventories are bloated with surplus crude.
Delays but not defaults at Bharati
The Bharati Shipyard has reported that though there have been some delays to contracts, there have been no cancellations of its greenfield expansion projects.
The second largest privately-owned shipyard in India has plans to set up three shipyards, in West Bengal, Orissa and Gujarat. Bharati’s Managing Director, Vijay Kumar said that while there was some slow down and delay in payments from clients there have been no defaults. He said that no client has asked for a renegotiation of rates either. Bharati said that some projects were delayed due to procedural issues and unavailability of land.
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300 percent profit gain for Euronav
Euronav has posted a huge 300 percent profit gain for the year ended December 31, 2008.
The result after taxation for 2008 was US$402,469, compared with US$101,055 in 2007. As of March 24, Euronav holds 1,750,000 own shares. Euronav said that given the current uncertainties linked to the economic crisis and its potential impact on the tanker market, the company’s board of directors has balanced rewarding shareholders with preservation of cash and will propose at the annual general meeting of shareholders on April 28 to pay a further Eur 1.60 (US$2.16) as dividend, bringing the total gross dividend for the financial year 2008 of US$3.52, compared with US$1.08 in 2007 per share. US$1.35 gross per share has already been paid as interim dividend on September 5, 2008. The balance in the amount of US$2.16 will be payable as from May 5, 2009. The share will trade ex-dividend as from April 28, 2009 (record date: May 4, 2009). At the current Euro/dollar exchange rate, the total proposed dividend represents approximately a 46 percent payout ratio, compared with 64 percent in 2007. For the first quarter of 2009, the estimated average VLCC time charter equivalent rates of the Tankers International pool is US$48,000 per day. This estimate is based on 86 percent of available spot days already fixed in the first quarter. The average Suezmax rate of the Euronav fleet for the first quarter is about US$38,000 per day.
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Recession catches up with Hellas' ports
The management of the country’s largest port in Piraeus has reasons to be wary of the port’s future, at least for the container handling Pier I, which will remain under the current management, even after Cosco’s assuming control of the remaining two piers.
Under the $1.1 billion deal due to start in November, Cosco will invest a further $300 million to expand the port's annual capacity to 3.7 million TEUs. In a recent speech towards dockworkers, the Port Authority’s CEO, Mr. Nikos Anastasopoulos highlighted the risks in stall, should the Union’s work stoppages continue. “I urge you to prove yourselves worthy of the circumstances, especially during this difficult period, by actively stopping any form of action and return to normal working rhythm, in order for the port to regain its credibility” he said, indicating that anything turning against OLP (Port Authority of Piraeus) ultimately is in favor of the “neighbor”, i.e. Cosco. His remarks came after the concession agreement was recently voted by the Parliament to become law, which according to Mr. Anastasopoulos is the best argument against any form of mobilizations.
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Petrovietnam to join Nicaragua in offshore oil search
HANOI: The Vietnam National Oil and Gas Group (PetroVietnam) said it has signed an overall oil and gas cooperation agreement and a deal with Petroleum of Nicaragua, or Petronic, to jointly assess some oil fields located offshore Nicaragua.
Once reserves are discovered, the two companies will negotiate and sign oil production contracts, PetroVietnam said. The inked agreement is an important foundation for the two sides to step up bilateral cooperation in energy, particularly in oil and gas, and other related services, the group added. PetroVietnam has pursued a strategy to explore investment opportunities in America, where it already signed a number of oil and gas contracts with its partners from Cuba, Venezuela and Peru.
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Friday, March 27, 2009
StatoilHydro finds more oil near Vigdis
STAVANGER, NORWAY: StatoilHydro has struck oil during the drilling of an exploration well and a sidetrack north of the Vigdis East field in the North Sea offshore Norway in production license 089.
The proven recoverable resources are estimated at about 25 million barrels of oil. The well confirmed the existence of a 919-foot (280-m) oil column in rocks with good reservoir properties. The discovery will be developed towards either the Tordis or Vigdis fields.The exploration well, 34/7-34, was drilled into the Vigdis North-East prospect, located 1.9 miles (3 km) south of the Snorre field. The purpose of the well was to confirm the existence of hydrocarbons in Lower Jurassic reservoir rocks belonging to the Statfjord group. The purpose of the sidetrack, 34/7-34 A, was to get a better overview of the resource potential.While operating in 958 feet (292 m) of water, Dolphin Drilling semisubmersible Borgland Dolphin drilled well 34/7-34 to a total vertical depth of 8,760 feet (2,670 m) and the sidetrack to a total depth of 8,898 feet (2,712 m). Both well trajectories were completed in Upper Triassic rocks belonging to the Lunde formation. Data acquisition and sampling took place during the drilling operation and now the well will be permanently plugged and abandoned. Borgland Dolphin will continue operations in production license 089 drilling well 34/7-G 4 H.
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Iron ore pricing delayed
Negotiations on the annual benchmark prices for iron ore imports are not likely to conclude before April 1, when a new annual agreement usually comes into effect, according to analysts.
Ma Tao, analyst, Bohai Securities said talks between miners and Chinese steelmakers might drag on for a longer time than last year as negotiations are more complicated this year. Last year the agreement was inked in June with steel makers accepting a record increase of 96.5 percent."Neither side is in a hurry. Suppliers are waiting for demand to recover in the second quarter, while the Chinese side is seeking lower prices," he said.As the world's largest iron ore consumer China expects to have a bigger say in its negotiations with the three major suppliers, Rio Tinto, BHP and Vale, amid the global economic downturn.Baosteel, which is leading the negotiations, is asking for an over 40 percent cut in iron ore prices this year, which will be the first drop in seven years. Some analysts have even forecast a decline of up to 50 percent.However, suppliers are in no mood to accept such a price even though they admit that iron ore prices are "certain to fall" this year due to declining industrial activities. Sam Walsh, head of Rio's iron ore division, was quoted by Reuters yesterday as saying that forecasts for a price cut of as much as 50 percent were too steep given a brightening demand outlook and indications from the spot ore market.Rio, the world's second largest iron ore producer, is reportedly postponing the negotiations with Chinese mills claiming "markets are volatile and it's difficult to see what a steady state means at the moment".
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Ma Tao, analyst, Bohai Securities said talks between miners and Chinese steelmakers might drag on for a longer time than last year as negotiations are more complicated this year. Last year the agreement was inked in June with steel makers accepting a record increase of 96.5 percent."Neither side is in a hurry. Suppliers are waiting for demand to recover in the second quarter, while the Chinese side is seeking lower prices," he said.As the world's largest iron ore consumer China expects to have a bigger say in its negotiations with the three major suppliers, Rio Tinto, BHP and Vale, amid the global economic downturn.Baosteel, which is leading the negotiations, is asking for an over 40 percent cut in iron ore prices this year, which will be the first drop in seven years. Some analysts have even forecast a decline of up to 50 percent.However, suppliers are in no mood to accept such a price even though they admit that iron ore prices are "certain to fall" this year due to declining industrial activities. Sam Walsh, head of Rio's iron ore division, was quoted by Reuters yesterday as saying that forecasts for a price cut of as much as 50 percent were too steep given a brightening demand outlook and indications from the spot ore market.Rio, the world's second largest iron ore producer, is reportedly postponing the negotiations with Chinese mills claiming "markets are volatile and it's difficult to see what a steady state means at the moment".
Thales signs submarine partnering agreement
Thales UK's naval business has signed a submarine Performance Partnering Arrangement (PPA) with BAE Systems.
This arrangement will see both companies cooperate on future submarine programs. The aim of both parties is that the PPA will significantly contribute to providing an affordable and sustainable common combat system across the UK's submarine flotilla.Under the PPA, Thales will be the preferred contractor for submarine sonar work in support of BAE Systems' submarine build and combat system design work. This will include providing sonar functional integration services for BAE Systems. Thales will also continue to be a key contributor to the combat system Design Evolution Team managed by BAE Systems on behalf of the UK Ministry of Defence.
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ExxonMobil criticized on single-hull tankers
On the twentieth anniversary of the ExxonValdez disaster in Alaska, ExxonMobil is drawing fire for continuing to use single-hulled tankers to transport crude.
After 79% of the world supertanker fleet has been replaced by craft with two hulls, ExxonMobil remains the biggest Western user of the older designs, though companies in Asia still use them almost exclusively. But ExxonMobil hired more of the tankers last year than the rest of the 10 biggest companies by market value combined, according to data compiled by Bloomberg. ExxonMobil has kept using tankers with one hull even as 151 countries have decided two are better than one for preventing oil spills and pledged to ban single-hull vessels by 2015. UK supermajor BP says it won’t hire them because of the risk of leaking. On 6 March, a tanker BP hired, the double-hull SKS Satilla, struck the Ensco 74 jack-up 65 miles from Galveston, Texas, which had been lost during Hurricane Ike. The incident, which caused “multiple punctures” along a 60-metre (197-foot) by 12-metre section of the ship, didn’t leak any oil, Coast Guard spokesman Tim Tilghman said.
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LM500 Gas Turbines for Republic of Korea Navy
GE Marine reports that it will supply Samsung Techwin, Republic of Korea (ROK), with LM500 gas turbines to power PK(X) patrol boats to be built as part of phase two of this ROK Navy fast patrol boat program.
The first PK(X) Yoon Young-ha has already been launched at Hanjin Heavy Industries’ Busan, ROK shipyard.“We are delighted that the ROK Navy selected LM500 propulsion system commonality for the next PK(X) patrol boats,” said Brien Bolsinger, general manager, GE Marine, Evendale, Ohio. Each of the PK(X) patrol boats will use LM500 gas turbines, rated at approximately 5,600 shaft horsepower, in a Combined diesel and gas turbine (CODAG) arrangement, with diesel engines. Samsung Techwin, a GE Marine System Supplier, will provide the shipyard with the LM500 propulsion modules. In addition, GE will provide ongoing support to Samsung Techwin, the shipyard, and the ROK Navy throughout installation, sea trials, and commissioning. A third and final production run of PK(X) vessels is currently under study by the ROK Navy.
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Thursday, March 26, 2009
DP World Limited preliminary results for the twelve months to 31 December 2008
Dubai, 25 March 2009: - DP World today announced strong results for the 12 months to 31December 2008, building on the excellent performance in the first half and delivering another year of solid profitable growth.
The highlights include consolidated throughput growth of 15% to 27.7 million TEU (2007: 24 million TEU), Strong revenue growth of 20% to $3,283 million (2007: $2,731 million), EBITDA2 increased 22% to $1,340 million (2007: $1,100 million); with margins at 40.8%, Profit after tax for continuing operations increased 48% to $621 million (2007: $420 million), Net cash from operating activities increased 12% to $1,069 million (2007: $955 million), Pro forma earnings per share increased 53% to 3.45 cents3 (2007: 2.26 cents), and Dividend of 0.69 cent per share. DP World Chairman Sultan Ahmed Bin Sulayem said; “2008 was another year of excellent performance for DP World where our focus on the faster growing emerging markets and origin and destination cargo allowed us to once again outperform the market, delivering results ahead of expectations. Profit after tax was in excess of $600 million and cash generation in excess of $1 billion. This excellent performance in 2008 leaves us in a strong financial position to meet the challenges that lie ahead in 2009. “The volume deceleration we saw in the last quarter of 2008 has continued into early 2009 and shows little sign of easing in the foreseeable future. Falling utilisation rates across container terminals globally mean the demand for new capacity in the short-term is much diminished. Taking into account our existing pipeline of committed capacity the company has decided todefer much of our planned new capacity until such time as higher utilisation rates return.
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The highlights include consolidated throughput growth of 15% to 27.7 million TEU (2007: 24 million TEU), Strong revenue growth of 20% to $3,283 million (2007: $2,731 million), EBITDA2 increased 22% to $1,340 million (2007: $1,100 million); with margins at 40.8%, Profit after tax for continuing operations increased 48% to $621 million (2007: $420 million), Net cash from operating activities increased 12% to $1,069 million (2007: $955 million), Pro forma earnings per share increased 53% to 3.45 cents3 (2007: 2.26 cents), and Dividend of 0.69 cent per share. DP World Chairman Sultan Ahmed Bin Sulayem said; “2008 was another year of excellent performance for DP World where our focus on the faster growing emerging markets and origin and destination cargo allowed us to once again outperform the market, delivering results ahead of expectations. Profit after tax was in excess of $600 million and cash generation in excess of $1 billion. This excellent performance in 2008 leaves us in a strong financial position to meet the challenges that lie ahead in 2009. “The volume deceleration we saw in the last quarter of 2008 has continued into early 2009 and shows little sign of easing in the foreseeable future. Falling utilisation rates across container terminals globally mean the demand for new capacity in the short-term is much diminished. Taking into account our existing pipeline of committed capacity the company has decided todefer much of our planned new capacity until such time as higher utilisation rates return.
LR opens $8m surveyor training facility in Shanghai
Shanghai: Lloyd’s Register Asia today opened its first dedicated marine surveyor training centre in Shanghai.
The Maritime Surveyor Training Institute (MSTI) represents more than an US$8 million investment for the organisation in the first five years of operations, during which time 200 newly trained surveyors are expected to graduate from the program.“Quality staff training provides the most significant contribution to the continued development of our core product -- the provision of independent technical assurance to the maritime industry,” said Roy Ellams, Lloyd’s Register Asia’s Marine Training Manager – North Asia. “It ensures that we always will have the right skills to support the provision of maritime transport services that are safe for both mariners and the environment.” Ellams says the MSTI represents a new approach to the development of technical competency for the industry, offered at a time when commercial pressures are driving the need for innovation. With the recession shrinking access to new capital for companies in the maritime industry, he says new solutions are required for old problems.
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DYT Makes Large Yacht Shipments
In late February, Dockwise Yacht Transport’s (DYT) 456 ft Super Servant 3 left Port Everglades for Toulon, unloading 18 yachts and loading one in St. Thomas, then moved on to Martinique where it loaded 18 more yachts, totaling 32 power and sailing yachts for a final cargo value of $140m.
In early March, the second of DYT’s fleet of semi-submersible transport ships, the 556 ft Super Servant 4, departed from Port Everglades, heading to Palma de Mallorca with another $140m worth of yachts. “For the most part, the yachts are headed for the Caribbean and the Mediterranean for the Spring and Summer sailing season,” said DYT President Clemens van der Werf. “Some are charter yachts but others are privately owned. In fact, many of the yachts we shipped to the Med went there for vacation as well as charter commitments in conjunction with such May events as the MYBA Charter Show in Genoa, Cannes Film Festival and the Monaco Grand Prix.”All of this bodes well for the world’s only float-on, float-off transport service. “Of course we feel the effects of the economy on our business,” said van der Werf, “but it’s clear that our services, which once were a novelty due to the unique way our ships accommodate their cargoes, are now integral to the economy of an extensive, and certainly significant, global network of marine businesses and waterfront developments.”Read More
In early March, the second of DYT’s fleet of semi-submersible transport ships, the 556 ft Super Servant 4, departed from Port Everglades, heading to Palma de Mallorca with another $140m worth of yachts. “For the most part, the yachts are headed for the Caribbean and the Mediterranean for the Spring and Summer sailing season,” said DYT President Clemens van der Werf. “Some are charter yachts but others are privately owned. In fact, many of the yachts we shipped to the Med went there for vacation as well as charter commitments in conjunction with such May events as the MYBA Charter Show in Genoa, Cannes Film Festival and the Monaco Grand Prix.”All of this bodes well for the world’s only float-on, float-off transport service. “Of course we feel the effects of the economy on our business,” said van der Werf, “but it’s clear that our services, which once were a novelty due to the unique way our ships accommodate their cargoes, are now integral to the economy of an extensive, and certainly significant, global network of marine businesses and waterfront developments.”
Dry-bulk rates slide as companies fight to keep their vessels on the water
With shipowners desperate for cargo, they're willing to take lower rates to keep their ships moving. Rates for dry-bulk freight, a leading indicator for global economic activity, have been falling for 10 straight days, reflecting a surplus of ships and falling prices for steel.
On Tuesday the Baltic Dry Index, which is managed by the Baltic Exchange in London and measures dry bulk shipping rates on 40 routes across the world, slid 15 points, to 1,758. That is still above its low near 700 in December, but the slide from 2,298 on March 10 is a negative sign, even though business is being done at reduced prices.Oppenheimer analyst Scott Burk said that when cargoes move in an environment of decreasing rates it implies a surplus of ships. "If there are a lot of cargoes shipowners expect to come on the market or too few ships they'd probably hold out for higher rates," Burk said. The current state of affairs signals that shipowners are willing to accept low rates out of desperation. But some owners may feel that as long as charter rates are above the breakeven mark, it makes sense to keep their ships moving. On Tuesday, the rate for Capesize vessels, the largest size and the one often used in the important iron and steel industries, was$19,909, down from $114,152 a year ago.Burk said DryShips has the highest cash break even cost in the industry with its Capesize clocking in at $14,500 per day, due to its high levels of debt, interest, and administrative costs. Meanwhile, Excel Maritime Carriers Capesize break even costs are $13,000 per day, OceanFreight is just over $12,000, Eagle Bulk Shipping is just under $12,000 as is Genco Shipping and Trading, FreeSeas is just under $11,000 per day, and Diana Shipping is the lowest, $8,900.Read More
On Tuesday the Baltic Dry Index, which is managed by the Baltic Exchange in London and measures dry bulk shipping rates on 40 routes across the world, slid 15 points, to 1,758. That is still above its low near 700 in December, but the slide from 2,298 on March 10 is a negative sign, even though business is being done at reduced prices.Oppenheimer analyst Scott Burk said that when cargoes move in an environment of decreasing rates it implies a surplus of ships. "If there are a lot of cargoes shipowners expect to come on the market or too few ships they'd probably hold out for higher rates," Burk said. The current state of affairs signals that shipowners are willing to accept low rates out of desperation. But some owners may feel that as long as charter rates are above the breakeven mark, it makes sense to keep their ships moving. On Tuesday, the rate for Capesize vessels, the largest size and the one often used in the important iron and steel industries, was$19,909, down from $114,152 a year ago.Burk said DryShips has the highest cash break even cost in the industry with its Capesize clocking in at $14,500 per day, due to its high levels of debt, interest, and administrative costs. Meanwhile, Excel Maritime Carriers Capesize break even costs are $13,000 per day, OceanFreight is just over $12,000, Eagle Bulk Shipping is just under $12,000 as is Genco Shipping and Trading, FreeSeas is just under $11,000 per day, and Diana Shipping is the lowest, $8,900.
New South China to US East Coast service
Grand Alliance members Hapag-Lloyd, Nippon Yusen Kaisha (NYK) and Orient Overseas Container Line (OOCL) and Zim Integrated Shipping Services have agreed to cooperate on the service from South China to US East Coast via the Panama Canal.
The joint operation will take effect from early April, subject to filing with the Federal Maritime Commission (FMC). New port rotation of the South China East Coast Express (SCE) service is Kaohsiung – Shekou – Hong Kong – Kingston – New York – Norfolk – Savanna – Kaohsiung on a 56-day round trip.
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The joint operation will take effect from early April, subject to filing with the Federal Maritime Commission (FMC). New port rotation of the South China East Coast Express (SCE) service is Kaohsiung – Shekou – Hong Kong – Kingston – New York – Norfolk – Savanna – Kaohsiung on a 56-day round trip.
Wednesday, March 25, 2009
New milestone for 'Napoli' salvage
The operation to remove the stern section of the container vessel ‘Napoli’ from the Devon coast has reached another milestone.
Global Response Maritime of The Netherlands, has now completed positioning all twelve lifting chains under the wreck. The lifting chains were put in place by a new subsea drilling system in less than three weeks. This marks the first total subsea, use of the drilling system in an offshore wreck removal. The drilling system employed consists of a 110-tonne subsea drilling module powering a remote-operated, transponder-guided drilling rod. The first lifting chain was pulled into place on withdrawing the drilling rod. With all lifting chains in position, the main operational phase will commence in early May. Subcontractor, Hapo, of The Netherlands, will mobilise two 140-metre flat-top barges rigged with heavy mobile cranes, together with two support tugs. A series of 24 chain-pullers, installed on the flat-top barges, will be connected up to the lifting chains ready on location.The two lifting barges will be moored parallel to ‘Napoli’s’ stern. When preparations for the main lift are completed, the barges will be ballasted down, to compensate for the forces acting on the pullers and reduce movement in the swell.
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Hyde, Alandia Engineering Partnership
Hyde Marine, Inc. and Alandia Engineering OY announced the signing of a Letter of Intent (LOI) for Alandia to provide engineering and installation services for the Hyde Guardian ballast water management technology.
The partnership allows Hyde to offer its customers an organization to manage the multi-disciplined task of installing ballast water management systems on existing ships. A formal agreement will be signed during the next few months. Hyde Marine intends to continue this partnership effort to include additional engineering and installation company partners in order to serve customers in all market segments and geographical locations worldwide.Hyde began developing BWT technology more than ten years ago working closely with regulators, researchers and shippers. Hyde delivered and installed five ballast treatment systems in 2001-2002, leading up to the delivery of Hyde Guardian systems on the cruise ship Coral Princess in 2003 and the Celebrity Mercury in 2006.
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Origin set to cull BassGas emissions
The Origin-operated BassGas joint venture is set to reduce carbon emissions from the BassGas gas plant at Gippsland in the Australian state of Victoria from 2010 after signing an agreement with Air Liquide.
The joint venture will capture more than a quarter of the carbon dioxide output of the gas plant which will be supplied to a new recovery unit to be built at the plant by Air Liquide at a cost of nearly A$20 million (US$14 million). “The amount of carbon dioxide that will be captured for re-use is equivalent to the annual greenhouse gas emissions of more than 21,000 cars or 4900 Australian homes,” said Origin’s general manager for upstream oil & gas, Paul Zealand. The BassGas joint venture has invested A$750 million to develop the BassGas project which provides natural gas, condensate and liquefied petroleum gas from the Yolla field which lies 147 kilometres off Victoria’s south-east coast. Gas is processed onshore at the Lang Lang gas plant, 100 kilometres east of Melbourne.
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Need for New Investments in Oil Sector
A decade ago, oil companies cut investments after crude fell as low as $10.72 a barrel. That led to restrained supply capacity, which boosted prices to a record $147.27 on July 11 last year.
Eight months later, the situation is totally different. The severe economic crisis flattered demand for oil and sank crude prices to levels under $50 per barrel. Now the ghost of oil underproduction in the coming years has returned. This fear is one of the most sound OPEC’s arguments when it is discussing about its future production policy. According to OPEC’s leadership “prices below $50 a barrel are “too low” because they don’t allow producers to invest in expanding capacity”. This is true, and is not just a speculative response to the falling prices. Except oil major production nations, major oil companies are cutting their investments on new fuels or to increase their production in future. The combination of low prices and financial crisis do not allow huge spendings in new investments. But this creates a very dangerous scenario. When the world economy recovers, the production maybe will not be able to satisfy demand. And this could send the fragile economy back in to a new recession, an energy crisis this time. If this scenario becomes a reality, both economy and the shipping market, not only the tanker sector that is directly connected with oil demand, will suffer again.
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Maritime law gathering in Singapore
Singapore: This year, the 2nd Asian Maritime Law Conference (AMLC), themed “Arrest, Insolvency and Pre-Emptive Remedies in a Global Shipping Crisis”, will focus on what shipping interests can do to provide for their future and/or to take action where action is needed.
Speakers ranging from shipping economists, ship financiers, and lawyers taking owners, charterers, shippers and other perspectives will share their experiences and outline their view on the prospects of shipping after the crisis. The conference is held by the Maritime Law Association of Singapore. The event to be held in Suntec City, Singapore in the same time slot as Sea Asia, the premier regional shipping exhibition, starting April 24.Read More
Speakers ranging from shipping economists, ship financiers, and lawyers taking owners, charterers, shippers and other perspectives will share their experiences and outline their view on the prospects of shipping after the crisis. The conference is held by the Maritime Law Association of Singapore. The event to be held in Suntec City, Singapore in the same time slot as Sea Asia, the premier regional shipping exhibition, starting April 24.
Tuesday, March 24, 2009
Re-powering 'Sea Imp X'
British Columbia, Canada: At the mouth of the Fraser River the tides routinely have a 3.5-metre. Sixty-five kilometres upriver at Mission the coastal mountains are beginning to crowd the flat farmland but still the tidal range is frequently 1.8 metres.
No salt water reaches this far as the tide only serves to back up the river water. But the river can slow to a crawl from the pressure of the flood tide and with the combined ebb and river current the flow can be dramatic. This is no place for the faint of heart, especially when operating a towboat in the river currents. But this is the routine for the operators of the boats at Catherwood Towing based in Mission, BC. Much of the work involves moving booms from storage along the river side to lumber and shingle mills that are also along the river. The booms are made up in 18-metre by 18-metre sections and are chained together. Capt. Butch Salsbury on Cahterwood’s ‘Sea Imp X’ explains that when he started with the company 22 years ago they would often deliver enough sections to a sawmill to last them for a week, but now, with escalating log prices, the mills want the logs delivered one or two sections at a time. “And they want it right now,” he laughs.
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Total nets pair of Vietnamese blocks
French oil giant Total has boosted its upstream position in Vietnam by signing contracts for two large onshore exploration blocks in the Mekong Delta area.
Total said it had signed a production sharing contract with national oil company PetroVietnam for Blocks DBSCL-02 and DBSCL-03, which will be operated by Total with a 75% interest. The remaining 25% interest is held by PetroVietnam Exploration Production (PVEP). Block DBSCL-02 covers an area of 14,850 square kilometres and Block DBSCL-03 covers an area of 13,800 square kilometres. The first exploration phase will cover the acquisition of 2D seismic on each block. "Total’s experience in managing the environmental impact of its activities will be crucial in the Mekong Delta.
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Shipbreaking industry in Indian subcontinent facing "shock and awe"
Last week’s decision of a court in Bangladesh, one of the most important ship recycling centers worldwide, to direct the governement to shutdown the operations of all local ship breaking yards within a period of just two weeks has reaped havoc among the industry and serious concern among ship owners across the board, eager to sell their older tonnage for scrap.
The court order was obtained by the Bangladesh Environmental Lawyers Association (BELA), whilst no one was representing the ship recyclers and the industry. The latter responded by labelling the action as “exploitation of law and miscarriage of justice”. The above illustrates the very precarious position of the industry in the subcontinent. According to GMS’ latest weekly report, “extremely well funded and organized camps have the ability to suddenly change the dynamics of the industry by bringing unilateral and arbitrary action, while the players are side?tracked by intense market activity and nonchalance towards the agendas of groups determined to stop ship recycling activities in the Indian subcontinent. Consequently, the fate of this industry continues to be mauled by unexpected turns that rock the very foundations of its existence. We do hope that this week’s ruling serves as a rude “wakeup call” to all those that make their living from this industry, yet do not make any contributions to improve and participate in the development of this industry. For those who are truly interested in “giving back” to the industry and do care for the industry’s survival, growth and enhancement, the recently launched Green Ship Recycling Association (GSRA) serves as an ideal platform” said the researchers.Read More
The court order was obtained by the Bangladesh Environmental Lawyers Association (BELA), whilst no one was representing the ship recyclers and the industry. The latter responded by labelling the action as “exploitation of law and miscarriage of justice”. The above illustrates the very precarious position of the industry in the subcontinent. According to GMS’ latest weekly report, “extremely well funded and organized camps have the ability to suddenly change the dynamics of the industry by bringing unilateral and arbitrary action, while the players are side?tracked by intense market activity and nonchalance towards the agendas of groups determined to stop ship recycling activities in the Indian subcontinent. Consequently, the fate of this industry continues to be mauled by unexpected turns that rock the very foundations of its existence. We do hope that this week’s ruling serves as a rude “wakeup call” to all those that make their living from this industry, yet do not make any contributions to improve and participate in the development of this industry. For those who are truly interested in “giving back” to the industry and do care for the industry’s survival, growth and enhancement, the recently launched Green Ship Recycling Association (GSRA) serves as an ideal platform” said the researchers.
Piracy latest: MOL boxship escapes attack
Tokyo: Mitsui O.S.K. Lines has reported that its 13,038 ton operated car carrier Jasmine Ace was fired on by pirates in two high-speed boats about 480 miles east of Somalia around at 16:10 local time on Sunday, March 22.
The Cayman Islands-flagged ship, which was under way to Mombasa in Kenya with a cargo of 377 used cars onboard, sustained some damage to the hull, but quickly accelerated and took evasive action such as zigzagging. After about 40 minutes, the pirates gave up chasing her at 22:50 on Sunday, March 22. None of her 18 Filipino crewmembers were injured in the attack, and no oil leaked from the hull. Bullets also damaged some windows in the wheelhouse, but the Jasmine Ace continues under its own power, and is now proceeding toward safer waters.Read More
The Cayman Islands-flagged ship, which was under way to Mombasa in Kenya with a cargo of 377 used cars onboard, sustained some damage to the hull, but quickly accelerated and took evasive action such as zigzagging. After about 40 minutes, the pirates gave up chasing her at 22:50 on Sunday, March 22. None of her 18 Filipino crewmembers were injured in the attack, and no oil leaked from the hull. Bullets also damaged some windows in the wheelhouse, but the Jasmine Ace continues under its own power, and is now proceeding toward safer waters.
Stabbert Yacht & Ship Shipyard
CEO Dan Stabbert and Paul Madden, Head of Sales, announced the sale of the 308 ft ex-NOAA Research Ship Sahara to a European buyer.
This vessel is currently undergoing a complete re-fit and conversion at Stabbert Yacht and Ship (SYS) in Seattle. The vessel will be exported from the US and may benefit from a new export financing program that SYS is offering to international buyers. Under this program, Stabbert is able to offer competitive financing for buyers by guaranteeing term financing to creditworthy international buyers for purchases of U.S. vessels and refit/conversion services."The advantages to foreign buyers in the current economy are enormous." states CEO Dan Stabbert. "Market conditions present unique opportunities to buy seaworthy commercial vessels for conversion to exploration yachts, shadow boats, or for specialized missions such as oil research or security duties."Read More
This vessel is currently undergoing a complete re-fit and conversion at Stabbert Yacht and Ship (SYS) in Seattle. The vessel will be exported from the US and may benefit from a new export financing program that SYS is offering to international buyers. Under this program, Stabbert is able to offer competitive financing for buyers by guaranteeing term financing to creditworthy international buyers for purchases of U.S. vessels and refit/conversion services."The advantages to foreign buyers in the current economy are enormous." states CEO Dan Stabbert. "Market conditions present unique opportunities to buy seaworthy commercial vessels for conversion to exploration yachts, shadow boats, or for specialized missions such as oil research or security duties."
Monday, March 23, 2009
Indian vessel freed by pirates after just eight hour
Mumbai: Somali pirates have freed the Indian vessel along with 16 crew on board, which was hijacked off Somalian coast Saturday, said the Mumbai-based Director General of Shipping.
The vessel, MSV Al Rafiquei, was hijacked 10:30 Indian time (0500 GMT Saturday) but was released eight hours later, said the directorate of the Indian shipping authority. Before releasing them, the pirates beat up the crew and took away their mobile phones, petrol and diesel, it said. The vessel was sailing from Dubai to Mogadishu when it was hijacked. It was carrying rice, refined oil, wheat and general cargo.
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Port awaits liquid gas delivery
The first giant tanker carrying super-cooled gas from the Middle East to one of two new terminals in Pembrokeshire is waiting for high tide to dock.
Once fully operational, the liquefied natural gas plants at Milford Haven will be capable of meeting up to 25% of the UK's current gas requirements. The Tembek, which had been expected at lunchtime, will be met by protesters who have fought the £13bn projects. Milford Haven Port Authority said it could handle LNG shipping safely. The tanker, which has sailed from Qatar, had been moored off Pembrokeshire waiting for the tide to allow it to berth at the newly built South Hook deep water terminal. It is the largest LNG plant in Europe and is a joint venture between Qatar Petroleum, ExxonMobil and Total. LNG is natural gas which has been converted to a liquid by cooling it to a temperature of -160°C. In its liquid form, it occupies much less space than gas, making it easier and more cost-effective to transport. It will be turned back into gas at the terminals and pumped into the UK network along a specially constructed pipeline running from Milford to Gloucestershire. South Hook is the larger of two terminals built at the port. The other, Dragon LNG, a partnership between Malaysia's state oil firm Petronas, BG and the Netherland's 4Gas, is expected to become operational later in the year.Read More
Once fully operational, the liquefied natural gas plants at Milford Haven will be capable of meeting up to 25% of the UK's current gas requirements. The Tembek, which had been expected at lunchtime, will be met by protesters who have fought the £13bn projects. Milford Haven Port Authority said it could handle LNG shipping safely. The tanker, which has sailed from Qatar, had been moored off Pembrokeshire waiting for the tide to allow it to berth at the newly built South Hook deep water terminal. It is the largest LNG plant in Europe and is a joint venture between Qatar Petroleum, ExxonMobil and Total. LNG is natural gas which has been converted to a liquid by cooling it to a temperature of -160°C. In its liquid form, it occupies much less space than gas, making it easier and more cost-effective to transport. It will be turned back into gas at the terminals and pumped into the UK network along a specially constructed pipeline running from Milford to Gloucestershire. South Hook is the larger of two terminals built at the port. The other, Dragon LNG, a partnership between Malaysia's state oil firm Petronas, BG and the Netherland's 4Gas, is expected to become operational later in the year.
Santos strikes off Indonesia
Australian gas major Santos has made a shallow-water gas discovery in Indonesia near its producing Maleo field.
The Peluang-1 exploration well has been plugged and abandoned as a "new field gas discovery", said Santos. The well reached total depth of 1126 metres on 14 March and was drilled using Apexindo's jack-up rig Raniworo in 64 metres of water. No further details on the discovery were immediately available. Peluang-1 lies in the Madura Offshore production sharing contract off East Java, and is owned by operator Santos (67.5%), Malaysia's Petronas Carigali (22.5%) and Indonesia's Pantai Madura (10%). Santos said recently that production from the Maleo field "continues to be impacted by capacity restrictions in the East Java gas pipeline (operated by Pertamina) following a rupture of this line during November 2006. However, the situation continues to improve." Gross production from Maleo during the fourth quarter of 2008 averaged 98 million cubic feet per day, slightly up on the two previous quarters.Read More
The Peluang-1 exploration well has been plugged and abandoned as a "new field gas discovery", said Santos. The well reached total depth of 1126 metres on 14 March and was drilled using Apexindo's jack-up rig Raniworo in 64 metres of water. No further details on the discovery were immediately available. Peluang-1 lies in the Madura Offshore production sharing contract off East Java, and is owned by operator Santos (67.5%), Malaysia's Petronas Carigali (22.5%) and Indonesia's Pantai Madura (10%). Santos said recently that production from the Maleo field "continues to be impacted by capacity restrictions in the East Java gas pipeline (operated by Pertamina) following a rupture of this line during November 2006. However, the situation continues to improve." Gross production from Maleo during the fourth quarter of 2008 averaged 98 million cubic feet per day, slightly up on the two previous quarters.
Groundbreaking ceremony at Gensan Shipyard
The Philippines: Gensan Shipyard, a member company of the RD Group, will host a ground breaking ceremony for a new shipbuilding facility, with President Gloria Macapagal-Arroyo as its invited principal sponsor.
When completed and fully operational, the US$5.18 million facility is set to be the biggest in Mindanao. It will host twin slipways with a combined capacity of 10,000GT. The railways measures 345 metres by 33 metres. When the facilities open in the fourth quarter of this year, Gensan expects to employ over 700 workers. Gensan Shipyard is strategically located in the regional “MAKIMA” (Maasim-Kiamba-Maitum) growth area near the BIMP- EAGA (Brunei-Indonesia-Malaysia-Philippines East-Asian Growth Area). “The Philippines and most of the ASEAN countries need ships and vessels to transport their products. Gensan Shipyard is paving the way for other investors, both local and foreign, to come and invest in the province of Sarangani,” said Rodrigo E Rivera, Sr, RD Group Chairman and CEO. The Municipality of Maasim in the Province of Sarangani is one of the poorest in the country, but the facility is hoped to be a catalyst in the BIMP-EAGA trade development. The project will play a key role in the Ro-Ro sea transport program of the government.Read More
When completed and fully operational, the US$5.18 million facility is set to be the biggest in Mindanao. It will host twin slipways with a combined capacity of 10,000GT. The railways measures 345 metres by 33 metres. When the facilities open in the fourth quarter of this year, Gensan expects to employ over 700 workers. Gensan Shipyard is strategically located in the regional “MAKIMA” (Maasim-Kiamba-Maitum) growth area near the BIMP- EAGA (Brunei-Indonesia-Malaysia-Philippines East-Asian Growth Area). “The Philippines and most of the ASEAN countries need ships and vessels to transport their products. Gensan Shipyard is paving the way for other investors, both local and foreign, to come and invest in the province of Sarangani,” said Rodrigo E Rivera, Sr, RD Group Chairman and CEO. The Municipality of Maasim in the Province of Sarangani is one of the poorest in the country, but the facility is hoped to be a catalyst in the BIMP-EAGA trade development. The project will play a key role in the Ro-Ro sea transport program of the government.
World bulker and general cargo fleets to grow
The world fleet of dry bulk and general cargo vessels is expected to continue growing through 2012, in spite of weak freight rates and general overcapacity of tonnage, as new ships on order are delivered from shipyards, according to the latest Shipbuilding Market Forecast from Lloyd’s Register - Fairplay Research.
While scrapping of existing ships will also increase, it will not be sufficient to offset the massive influx of new ships, resulting in a net growth of tonnage in most segments of this market, which includes dry bulk carriers, general cargo ships, refrigerated cargo ships and dry cargo barges. The report notes that much of the current capacity consists of relatively new tonnage with plenty of years left in their service life, thereby slowing the removals to the scrap yards. The newbuilding orderbook for dry bulk carriers now comprises 3,359 ships totaling 292 million DWT, equal to 70 percent of existing fleet capacity. Even though bulk ship orders are highly exposed to cancellations and delayed delivery, this is accounted for in the forecast. “Even if deliveries were to be cut by half, bulk supply growth is still expected to outpace demand growth in 2009 and 2010, which will affect freight rate development trends negatively,” said Niklas Bengtsson, Project Manager and Senior Consultant, Lloyd’s Register - Fairplay Research. Likewise, the general cargo segment is expected to continue growing at 3.5 percent annually through 2012.
Sunday, March 22, 2009
Petrobras oil workers set to strike
Oil workers at state-controlled Brazilian energy giant Petrobras will strike for five days from Monday and attempt to cut crude output in protest over job cuts, pay and working conditions.
The main oil workers' union, the FUP, was due to meet with Petrobras President Jose Sergio Gabrielli this afternoon and the company said it hoped to avert a stoppage. FUP coordinator Joao Antonio de Moraes told Reuters the strike, which would involve workers at Petrobras facilities in different parts of the Latin American country, would aim to reduce but not halt oil production. "We will try to affect production. We will try to reduce production volumes but without jeopardising basic Petrobras services," he said, adding that union members would consider after the fifth day whether to continue or return to work. The union has often threatened industrial action in the past but later retreated after negotiations. But it did proceed with a stoppage last July which briefly reduced output. De Moraes said the FUP intended to cause greater disruption this time round than during last year's stoppage. Petrobras said during that strike that output fell by 63,000 barrels per day on the first day, but it implemented a contingency plan that almost fully restored production by that evening. The strike lasted for five days but Petrobras said production was unaffected from the second day.
Tankers mar Subic Bay appeal
The Philippines: The Greater Subic Bay Tourism Bureau (GSBTB) has complained about the close range of several cargo vessels to the Subic Bay coastline.
GSBTB Marketing Director Charles W Davis said that many of the ships seemed to be anchored on locations that were close to tourism facilities. “The perception is that the presence of these ships is a potential to the environment—oil tankers especially,” Mr Davis said. “This is an issue where a perception of a problem can be worse than the real problem.” The lay up of vessels is expected to continue for several months, and will coincide with the peak period of the tourism season.Read More
GSBTB Marketing Director Charles W Davis said that many of the ships seemed to be anchored on locations that were close to tourism facilities. “The perception is that the presence of these ships is a potential to the environment—oil tankers especially,” Mr Davis said. “This is an issue where a perception of a problem can be worse than the real problem.” The lay up of vessels is expected to continue for several months, and will coincide with the peak period of the tourism season.
First turbine installed at new Danish offshore wind farm
COPENHAGEN: DONG Energy, Siemens and A2SEA have installed the first turbine at the offshore wind farm Horns Rev 2 in the North Sea.
When inaugurated later this year, Horns Rev 2 will be the world's biggest offshore wind farm.The installation was carried out using the installation vessel Sea Power and was complete after 12 hours. Horns Rev 2 is scheduled for completion in late 2009, just in time to "light up" the international climate change conference, COP 15, to be held in Copenhagen in December. "DONG Energy actively pursues the development of renewable energy, and the installation of the first turbine at Horns Rev 2 is an important milestone in these efforts," said Anders Eldrup, CEO of DONG Energy. The 91 turbines making up the wind farm will have a total net installed capacity of 209 MW, making it possible to supply a volume of CO2 free power equivalent to the consumption of more than 200,000 households. "The entire Danish population will benefit from the commissioning of the turbines at Horns Rev 2. The establishment of Horns Rev 2 is an important step in the Danish Government's long-term ambition for Denmark to become independent of fossil fuels," commented Danish Minister for Climate and Energy Connie Hedegaard.
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New Navy Contracts
Rolls-Royce Marine International Inc., Walpole, Mass., is being awarded a $5,672,842 cost plus fixed fee contract for a Compact High-Power High-Density Waterjet.
The objective of this contract is for research to implement the waterjet technology developed in Phase I to resolve the anticipated cavitation erosion issues. This includes the preparation of the detailed design and fabrication of two full-scale waterjet prototypes for demonstration. The work will be performed in Walpole, Mass. (90 percent); Pascagoula, Miss. (7 percent); and Sweden (3 percent), and work is expected to be completed September 2011. Contract funds in the amount of $2,217,410 will expire at the end of the current fiscal year. This contract was competitively procured under the Office of Naval Research Broad Agency Announcement 06-011. The Office of Naval Research, Arlington, Va., is the contracting a ctivity (N00014-09-C-0511). C&G Boat Works, Inc., Mobile, Ala., was awarded March 17, 2009, a $17,584,236 modification to previously awarded contract (N00024-07-C-2236) to exercise an option to construct two Yard Patrol Training Craft used to train U.S. Navy midshipmen at the U.S. Naval Academy. Work will be performed in Mobile, Ala., and is expected to be completed by March 2011. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.Read More
The objective of this contract is for research to implement the waterjet technology developed in Phase I to resolve the anticipated cavitation erosion issues. This includes the preparation of the detailed design and fabrication of two full-scale waterjet prototypes for demonstration. The work will be performed in Walpole, Mass. (90 percent); Pascagoula, Miss. (7 percent); and Sweden (3 percent), and work is expected to be completed September 2011. Contract funds in the amount of $2,217,410 will expire at the end of the current fiscal year. This contract was competitively procured under the Office of Naval Research Broad Agency Announcement 06-011. The Office of Naval Research, Arlington, Va., is the contracting a ctivity (N00014-09-C-0511). C&G Boat Works, Inc., Mobile, Ala., was awarded March 17, 2009, a $17,584,236 modification to previously awarded contract (N00024-07-C-2236) to exercise an option to construct two Yard Patrol Training Craft used to train U.S. Navy midshipmen at the U.S. Naval Academy. Work will be performed in Mobile, Ala., and is expected to be completed by March 2011. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
Crude oil imports of developed counties fall slightly in February
Crude oil imports of developed and developing countries as China or India declined in February, as economic recession reduced demand of oil, something that pushed oil prices in lower levels during past month.
As the Monthly Oil Market Report of OPEC underlines US crude oil imports declined in February to average 9.02 mb/d, about 8.3% or 821,000 b/d lower compared to the previous month, and 6.1% lower than the same month a year earlier. February’s crude imports were also 7.7% lower than the average imports in 2008 of 9.77 mb/d. Similarly, US Product imports declined, by 8.4%, or 279,000 b/d in February compared to the previous month to average 3.05 mb/d, yet were 1.6% higher than at the same month the previous year. Finished motor gasoline imports dropped by 43,000 b/d or 19% in February compared to the previous month to reach 180,000 b/d and down by 49% compared to a year ago. Distillate fuel oil imports increased by 62,000 b/d or 10% in February compared to the previous month to average 311,000 b/d. This level of imports indicates a 25% increase compared to the same month last year. Residual fuel oil imports declined by 63,000 b/d or 13% in February compared to the previous month, reaching about 420,000 b/d or 36% higher than in the same month a year earlier.Jet fuel imports in February averaged 59,000 b/d, about 11% higher than in the previous month,but 42% lower than in the same month a year earlier.
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As the Monthly Oil Market Report of OPEC underlines US crude oil imports declined in February to average 9.02 mb/d, about 8.3% or 821,000 b/d lower compared to the previous month, and 6.1% lower than the same month a year earlier. February’s crude imports were also 7.7% lower than the average imports in 2008 of 9.77 mb/d. Similarly, US Product imports declined, by 8.4%, or 279,000 b/d in February compared to the previous month to average 3.05 mb/d, yet were 1.6% higher than at the same month the previous year. Finished motor gasoline imports dropped by 43,000 b/d or 19% in February compared to the previous month to reach 180,000 b/d and down by 49% compared to a year ago. Distillate fuel oil imports increased by 62,000 b/d or 10% in February compared to the previous month to average 311,000 b/d. This level of imports indicates a 25% increase compared to the same month last year. Residual fuel oil imports declined by 63,000 b/d or 13% in February compared to the previous month, reaching about 420,000 b/d or 36% higher than in the same month a year earlier.Jet fuel imports in February averaged 59,000 b/d, about 11% higher than in the previous month,but 42% lower than in the same month a year earlier.
Saturday, March 21, 2009
First turbine installed at new Danish offshore wind farm
COPENHAGEN: DONG Energy, Siemens and A2SEA have installed the first turbine at the offshore wind farm Horns Rev 2 in the North Sea.
When inaugurated later this year, Horns Rev 2 will be the world's biggest offshore wind farm.The installation was carried out using the installation vessel Sea Power and was complete after 12 hours. Horns Rev 2 is scheduled for completion in late 2009, just in time to "light up" the international climate change conference, COP 15, to be held in Copenhagen in December. "DONG Energy actively pursues the development of renewable energy, and the installation of the first turbine at Horns Rev 2 is an important milestone in these efforts," said Anders Eldrup, CEO of DONG Energy. The 91 turbines making up the wind farm will have a total net installed capacity of 209 MW, making it possible to supply a volume of CO2 free power equivalent to the consumption of more than 200,000 households. "The entire Danish population will benefit from the commissioning of the turbines at Horns Rev 2. The establishment of Horns Rev 2 is an important step in the Danish Government's long-term ambition for Denmark to become independent of fossil fuels," commented Danish Minister for Climate and Energy Connie Hedegaard.Read More
When inaugurated later this year, Horns Rev 2 will be the world's biggest offshore wind farm.The installation was carried out using the installation vessel Sea Power and was complete after 12 hours. Horns Rev 2 is scheduled for completion in late 2009, just in time to "light up" the international climate change conference, COP 15, to be held in Copenhagen in December. "DONG Energy actively pursues the development of renewable energy, and the installation of the first turbine at Horns Rev 2 is an important milestone in these efforts," said Anders Eldrup, CEO of DONG Energy. The 91 turbines making up the wind farm will have a total net installed capacity of 209 MW, making it possible to supply a volume of CO2 free power equivalent to the consumption of more than 200,000 households. "The entire Danish population will benefit from the commissioning of the turbines at Horns Rev 2. The establishment of Horns Rev 2 is an important step in the Danish Government's long-term ambition for Denmark to become independent of fossil fuels," commented Danish Minister for Climate and Energy Connie Hedegaard.
Eco friendly ferry for Moreton Bay
Aluminium Boats Australia has launched a specifically designed and developed eco ferry for the Bay Transit Group in Brisbane, Australia, for operation in the Marine Park area.
Aluminium Boats designed the boat to have a low wash and fuel consumption. The vessel is quiet and designed specifically to be mammal friendly. The vessel has a specially designed hull, with no protrusions and is shaped at the bow and along the hull line to deflect marine mammals. The vessel carries over 185 passengers, and can achieve an operating speed of over 25 knots, powered by Scania D12 59M engines and Hamilton HJ364 Jet propulsion units. Its superstructures are composite in construction and were built on-site at Aluminium Boats’ facilities.Read More
Aluminium Boats designed the boat to have a low wash and fuel consumption. The vessel is quiet and designed specifically to be mammal friendly. The vessel has a specially designed hull, with no protrusions and is shaped at the bow and along the hull line to deflect marine mammals. The vessel carries over 185 passengers, and can achieve an operating speed of over 25 knots, powered by Scania D12 59M engines and Hamilton HJ364 Jet propulsion units. Its superstructures are composite in construction and were built on-site at Aluminium Boats’ facilities.
UN eyes link between government and pirates in Somalia
New York: The United Nations is concerned about the possibility of collaboration between pirates and government officials in Somalia's Puntland region, according to a new U.N. report released Wednesday.
The report, prepared by the office of U.N. Secretary-General Ban Ki-moon for the Security Council, said that it had identified two main piracy networks in Somalia -- one in the semi-autonomous northern Puntland region and the other based in the Eyl district."There are increasing reports of complicity by members of the Somali region of Puntland administration in piracy activities," Ban's report said. But he said it was encouraging that the current and former leadership of Puntland appeared to be taking "a more robust approach" in fighting piracy.Pirates have been seizing vessels in the Gulf of Aden, which connects Europe to Asia and the Middle East via the Suez Canal, hijacking dozens of ships last year and taking tens of millions of dollars in ransom payments.An official from the East African Seafarers Assistance Program said Wednesday that Puntland villagers detained an Iranian vessel though the circumstances remain unclear.Foreign navies, including those of Russia, China and European Union countries, have sent ships to the Horn of Africa to help tackle the threat and the effort has reduced the number of hijackings off the coast of the virtually lawless country.
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Rough seas for small OSVs
Offshore support vessel (OSV) owners are facing slack demand and falling day rates in major marine transportation markets.
U.S. Gulf of Mexico: Offshore rig demand in the U.S. Gulf of Mexico continues to decline, tightening the number of jobs for OSVs in the area. OSV owners are facing sinking bottom lines and are doing their best to keep their boats and their people working. One Gulf owner facing difficult times said, "It's a tough market, but we've been through this before. I have to work my boats. We have to find a bottom to oil and gas prices."One pragmatic owner said, "We will be in good shape till end of April. Construction in April might help. Less desirable boats have to compete against newer boats for the same prices.” Some less sophisticated vessels are being forced out of the market, all to the advantage of vessel owners’ customers, if those customers have work, as they can charter higher-end vessels for less money. Owners of smaller, older vessels have little choice but to lay up equipment. For example, Seacor announced it had cold-stacked 15 U.S. Gulf OSVs. Deepwater work is holding steady. A vessel manager with a sizable fleet said, "We're taking a guarded approach; the fundamentals are pretty strong, decent for deepwater.Read More
U.S. Gulf of Mexico: Offshore rig demand in the U.S. Gulf of Mexico continues to decline, tightening the number of jobs for OSVs in the area. OSV owners are facing sinking bottom lines and are doing their best to keep their boats and their people working. One Gulf owner facing difficult times said, "It's a tough market, but we've been through this before. I have to work my boats. We have to find a bottom to oil and gas prices."One pragmatic owner said, "We will be in good shape till end of April. Construction in April might help. Less desirable boats have to compete against newer boats for the same prices.” Some less sophisticated vessels are being forced out of the market, all to the advantage of vessel owners’ customers, if those customers have work, as they can charter higher-end vessels for less money. Owners of smaller, older vessels have little choice but to lay up equipment. For example, Seacor announced it had cold-stacked 15 U.S. Gulf OSVs. Deepwater work is holding steady. A vessel manager with a sizable fleet said, "We're taking a guarded approach; the fundamentals are pretty strong, decent for deepwater.
Shipping body calls for price rises in key lane
Container shipping lines face a "potential catastrophic event" if prices in a key trade lane are not increased, an industry organisation has warned, adding to the gloom surrounding the sector.
Brian Conrad, executive administrator of the Trans-Pacific Stabilisation Agreement, said shipping lines' financial survival now had to determine the rates they charged to move containers, rather than filling their ships or protecting their market share. The TSA, which allows shipping lines to share information about cargo volumes and planned future capacity, called for a sharp increase in the rates charged to move containers from Asia to North America, saying many at present were unsustainably low. Its 14 members had all committed by the end of June to stop offering any low short-term, spot rates for moving containers introduced in the past few months, it added. Shipping lines desperate to fill ships have cut spot rates on some routes to the lowest levels in the sector's 53-year history. On routes between Asia and Europe, some have been charging only the surcharges normally meant to cover fuel, currency changes and terminal handling costs. Between Asia and North America, overall charges have fallen to only a few hundred dollars for each standard container from more than $2,000 a year ago.
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Brian Conrad, executive administrator of the Trans-Pacific Stabilisation Agreement, said shipping lines' financial survival now had to determine the rates they charged to move containers, rather than filling their ships or protecting their market share. The TSA, which allows shipping lines to share information about cargo volumes and planned future capacity, called for a sharp increase in the rates charged to move containers from Asia to North America, saying many at present were unsustainably low. Its 14 members had all committed by the end of June to stop offering any low short-term, spot rates for moving containers introduced in the past few months, it added. Shipping lines desperate to fill ships have cut spot rates on some routes to the lowest levels in the sector's 53-year history. On routes between Asia and Europe, some have been charging only the surcharges normally meant to cover fuel, currency changes and terminal handling costs. Between Asia and North America, overall charges have fallen to only a few hundred dollars for each standard container from more than $2,000 a year ago.
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Australian Cat for Bahamas
The Bahamas Ferries (www.bahamasferries.com) recently took delivery of a 134.5 ft by 39 ft catamaran, the Bo Hengy II, from Aluminum Marine of Queensland.
Built to a design by Oceanic Yacht Design, also of Queensland, the boat has a 28-knot top speed and the dramatic looks to go with it. The vessels semi-swath hull design combined with good clearance of the bridge between the hulls, allows the high speeds to be maintained in heavy sea conditions. The propulsion package combines two Cummins KTA 38 M2 engines and two Cummins QSK19 M engines so that each hull has a 760 HP 19-liter and a 1200 HP 38-liter engine. All four engines are turning props through Reintjes gears. With a total of just under 4000 HP the Bo Hengy II burns only about 300 litres per hour.With a capacity for 400 passengers the Bo Hengy II can also carry two cars on the after deck. An 8000-liter fuel capacity gives the vessel a 600-mile range.Read More
Built to a design by Oceanic Yacht Design, also of Queensland, the boat has a 28-knot top speed and the dramatic looks to go with it. The vessels semi-swath hull design combined with good clearance of the bridge between the hulls, allows the high speeds to be maintained in heavy sea conditions. The propulsion package combines two Cummins KTA 38 M2 engines and two Cummins QSK19 M engines so that each hull has a 760 HP 19-liter and a 1200 HP 38-liter engine. All four engines are turning props through Reintjes gears. With a total of just under 4000 HP the Bo Hengy II burns only about 300 litres per hour.With a capacity for 400 passengers the Bo Hengy II can also carry two cars on the after deck. An 8000-liter fuel capacity gives the vessel a 600-mile range.
Friday, March 20, 2009
Berg Propulsion to be the Event Exclusive Partner of ShipTek 2009
ShipTek 2009, the two day international event from May-6-7, 2009 will be held at Sing Expo and Raffles Ballroom Swissotel- The Stamford, Singapore.
Berg Propulsion, the internationally competitive solution provider of Controllable Pitch Propellers has announced to be the Event Exclusive Partner of ShipTek 2009. With the development of new design in 2001, the BCP-series, Berg Propulsion now has more than 3000 propellers in service along with a brand new series of Transverse Thrusters, the BTT-series. Berg has also bought the SMP and JW BERG service companies, to support the requirements of After Sales services and is currently building its facility in Singapore for a production plant where larger propellers and the Transverse Thruster range will be produced. Berg has affirmed to be the Event Exclusive Partner of ShipTek 2009’s gala events, 3rd International Maritime Video & Excellence Awards, Launch of Marine BizTV in South East Asia along with the International Conference on Technology Revolution in Marine and Offshore Industry. ShipTek 2009 is the second edition of the flagship event of Marine BizTV – ShipTek. Organized by BizTV events, the concepts division of Marine BizTV and supported by Aries Marine and Marine BizTV, ShipTek 2009 will bring the top notch people of the marine and offshore industry to the Lion City, Singapore. For more details on ShipTek 2009, please visit: www.shiptek2009.com.Read More
Berg Propulsion, the internationally competitive solution provider of Controllable Pitch Propellers has announced to be the Event Exclusive Partner of ShipTek 2009. With the development of new design in 2001, the BCP-series, Berg Propulsion now has more than 3000 propellers in service along with a brand new series of Transverse Thrusters, the BTT-series. Berg has also bought the SMP and JW BERG service companies, to support the requirements of After Sales services and is currently building its facility in Singapore for a production plant where larger propellers and the Transverse Thruster range will be produced. Berg has affirmed to be the Event Exclusive Partner of ShipTek 2009’s gala events, 3rd International Maritime Video & Excellence Awards, Launch of Marine BizTV in South East Asia along with the International Conference on Technology Revolution in Marine and Offshore Industry. ShipTek 2009 is the second edition of the flagship event of Marine BizTV – ShipTek. Organized by BizTV events, the concepts division of Marine BizTV and supported by Aries Marine and Marine BizTV, ShipTek 2009 will bring the top notch people of the marine and offshore industry to the Lion City, Singapore. For more details on ShipTek 2009, please visit: www.shiptek2009.com.
Diverse Projects’ Latest Vessel
Build Project 08 is currently under construction at Profab Central Engineering Ltd in Palmerston North, New Zealand.
The hull was successfully rolled over in October, and the superstructure is now taking shape. Stage two of the program, interior, paintwork and finishing details will later take place in Whangarei, New Zealand. BP08’s sleek lines were designed by Craig Loomes Design Group. The 103.3 ft passagemaker is being built to Germanischer Lloyd 100 A5 class and New Zealand MSA survey. With Twin Caterpillar C18 ACERT 600HP engines, she will cruise at 12.5 knots. The interior will be designed by Chris Connell to complete the picture of very best quality all round. Based in the heart of Auckland City, New Zealand, Diverse Projects specializes in the construction of new yachts for owners worldwide. Diverse projects’ unique “virtual shipyard” approach provides clients with total start to finish project co-ordination, great control and full transparency. Bringing together the best contracting teams New Zealand can offer ensures low risk and high expertise.Diverse Projects provides project management for yacht construction, build co-ordination, construction management and construction consultancy, refits, charters and brokerage.
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LNG Tanker Rates Fall 17% on Increase in Vessels
Charter rates for liquefied natural gas tankers on short-term hauls declined 17 percent last year because of an increase in new vessels, Poten & Partners said. Rates to rent LNG tankers fell to about $46,600 a day for steam turbine vessels of 138,000 to 150,000 cubic meters in capacity, Poten, a U.S. energy consultant, said in a report e mailed today.
“With a record number of new builds entering the fleet, market needs were easily accommodated and except for a few instances, prompt ships were always available,” according to the report. “Despite a robust cargo market with record numbers of spot shipments being diverted from the Atlantic Basin to destinations east of Suez, chartering activity remained muted through July.” The number of LNG ships worldwide will increase by more than 50 percent in 2010 after shipyards delivered a record 58 vessels last year, David Fuller, the London-based head of LNG for RWE AG, said at the Gas Asia conference in Kuala Lumpur yesterday. Daily charter rates in 2008 were in a range of $40,000 to $50,000 about 60 percent of the time, according to Poten. Charter rates for ships transporting spot cargoes have declined to about $35,000 to $40,000 a day currently, Gunaseharan Ganapathy, vice president of LNG at MISC Bhd., said yesterday. Charterers may have paid as much as $75,000 a day during winter 2007, according to Drewry Maritime Services Ltd.
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Hallin, Bina Marine cancel subsea support vessel contract
SINGAPORE: Marco Polo Marine subsidiary Bina Marine and Hallin Marine Subsea International have canceled a SGD 74.5 million (US$49.4 million) shipbuilding contract for SOV Coniston, a DP2 subsea operations vessel.
The vessel, originally scheduled to be delivered in the fourth quarter of 2010, would have been Hallin's third subsea operations vessel. The contract, signed in late 2008, was discontinued on mutual consent as Bina Marine was unable to fulfill certain pre-completion conditions to the contract, including necessary repayment guarantees. Bina Marine and Hallin Marine are reviewing their options in light of current economic uncertainty, and are considering re-negotiating the contract if the conditions can be met.Read More
The vessel, originally scheduled to be delivered in the fourth quarter of 2010, would have been Hallin's third subsea operations vessel. The contract, signed in late 2008, was discontinued on mutual consent as Bina Marine was unable to fulfill certain pre-completion conditions to the contract, including necessary repayment guarantees. Bina Marine and Hallin Marine are reviewing their options in light of current economic uncertainty, and are considering re-negotiating the contract if the conditions can be met.
OCEC and Xenel in JV talks
CNOOC Energy Technology & Services offshoot CNOOC Oilfield Construction & Engineering Company, (CNOOC OCEC) is involved in advanced talks with Saudi Arabia’s Xenel Industries to set up a joint venture for providing services to companies operating in the Middle East.
The two companies have largely agreed on the terms of the joint venture, which has recently won approval from CNOOC OCEC’s parent CNOOC. They are now finalising details of the joint venture contract, which is expected to be signed in a matter of months, sources said. China-based sources said Xenel’s interest in CNOOC OCEC relates to the latter’s low labour cost. The joint venture will largely target providing services to state-owned giant Saudi Aramco, sources added. Tianjin-based CNOOC OCEC provides integral services of offshore engineering design, construction and commissioning, but it is more specialised in providing services in offshore field maintenance and repair. It has subsidiary companies or offices in Shanghai, Shenzhen, Guangzhou, Zhanjiang and Ningbo cities. The tie-up with Xenel will be the first such joint venture for CNOOC OCEC. The Chinese company previously focused almost entirely on providing services to Chinese offshore fields owned by CNOOC.
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Silversea seeks price cut on cruise option at Fincantieri
Monaco-based luxury liner company Silversea is still keen on exercising its option for a second 36,000GT vessel, however it is seeking a substantial price cut from Italian builder Fincantieri.
Chief Executive Amerigo Perasso told Asiasis that the company was still interested in building a new cruise ship after the initial order for one vessel with an option for a second was placed two years ago. The first ship, ‘Silver Spirit’ will be delivered in December this year. “I don’t anticipate us taking delivery of a second ship until a couple of years after the delivery of the ‘Silver Spirit’,” Mr Perasso was quoted as saying by Asiasis.Read More
Chief Executive Amerigo Perasso told Asiasis that the company was still interested in building a new cruise ship after the initial order for one vessel with an option for a second was placed two years ago. The first ship, ‘Silver Spirit’ will be delivered in December this year. “I don’t anticipate us taking delivery of a second ship until a couple of years after the delivery of the ‘Silver Spirit’,” Mr Perasso was quoted as saying by Asiasis.
Thursday, March 19, 2009
China postpones shipbuilding development
The Chinese government has announced that the construction of new docks and the expansion of slipways would be suspended for three years.
China is hoping to facilitate the restructuring of the industry while coping with economic slowdown. Other steps that have been adopted include financial aid for shipyards when exporting vessels, and extending tax break deadlines for builders selling ships to Chinese shipping companies until 2012. The total volume of shipbuilding in China saw a massive increase of 52.2 percent to 28.81 million tonnes from 2007 to 2008 while building costs were lowered by nearly ten times compared with 2000. Orders received in 2008 however fell by 41 percent to 58.18 million tonnes compared with 2007.Read More
China is hoping to facilitate the restructuring of the industry while coping with economic slowdown. Other steps that have been adopted include financial aid for shipyards when exporting vessels, and extending tax break deadlines for builders selling ships to Chinese shipping companies until 2012. The total volume of shipbuilding in China saw a massive increase of 52.2 percent to 28.81 million tonnes from 2007 to 2008 while building costs were lowered by nearly ten times compared with 2000. Orders received in 2008 however fell by 41 percent to 58.18 million tonnes compared with 2007.
Essar Oilfield to add to jack-up rig fleet
Mumbai: Essar Group subsidiary, Essar Oilfield Services (EOSL) has revealed plans to procure two jack-up rigs.
"We are in the process of procuring two jack-up rigs at a cost of $440 million. These rigs are expected to join our fleet within the next 24 months," Essar Shipping Ports and Logistics, Director and CFO, V Ashok told at its KG Basin facility. The company was also looking at procuring other assets including offshore drilling assets, which would be in synergy with its expansion plans, Ashok said. EOSL, which is in the process of being brought under the fold of Essar Shipping Ports and Logistics, was planning to expand its fleet to cater to the ever-growing oil exploration and production market, he said. "As the company acquires new assets, it plans to tap the offshore and onshore drilling markets outside India. It is currently looking at various opportunities in the onshore and offshore drilling space in several regions including the Norwegian region, Latin America, West Asia, Africa and Asia," Ashok said. Presently, EOSL has a fleet of 13 land rigs and one semi-submersible rig.
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BP quits off Vietnam
BP has decided to withdraw from two operated exploration blocks offshore Vietnam that contain the Hai Thach and Moc Tinh gas and condensate fields.
The company said in a SEC filing that Block 5-2 (BP owns 55.9%) and Block 5-3 (BP has 75%) "do not fit" within BP's current portfolio and that it "has decided to withdraw from them". BP is currently in discussions with PetroVietnam, the Vietnamese government and joint venture partners to progress its withdrawal, and said it has taken an impairment loss of $210 million related to exploration costs on the two blocks. Co-venturers in the two permits are BP, ConocoPhillips and PetroVietnam. Three wells were drilled on Hai Thach between 1995 and 2002, and BP called the find potentially the largest single gas accumulation in the Nam Con Son basin with estimated gas volumes of 1.8 trillion cubic feet and about 90 million barrels of associated liquids. Moc Tinh was found in 1994 and has not been fully evaluated but contains about 0.5 Tcf of recoverable gas and 10 million barrels of liquids. BP's efforts to develop the fields have been hampered in recent times by a maritime boundary dispute between Vietnam and China, while low gas prices in Vietnam are an issue too.Read More
The company said in a SEC filing that Block 5-2 (BP owns 55.9%) and Block 5-3 (BP has 75%) "do not fit" within BP's current portfolio and that it "has decided to withdraw from them". BP is currently in discussions with PetroVietnam, the Vietnamese government and joint venture partners to progress its withdrawal, and said it has taken an impairment loss of $210 million related to exploration costs on the two blocks. Co-venturers in the two permits are BP, ConocoPhillips and PetroVietnam. Three wells were drilled on Hai Thach between 1995 and 2002, and BP called the find potentially the largest single gas accumulation in the Nam Con Son basin with estimated gas volumes of 1.8 trillion cubic feet and about 90 million barrels of associated liquids. Moc Tinh was found in 1994 and has not been fully evaluated but contains about 0.5 Tcf of recoverable gas and 10 million barrels of liquids. BP's efforts to develop the fields have been hampered in recent times by a maritime boundary dispute between Vietnam and China, while low gas prices in Vietnam are an issue too.
Cruise liner calls at Kochi port, India
Queen Mary 2, considered the most prestigious cruise liner in the world, called at the Kochi port on Wednesday with around 2,500 international tourists and 1,300 crew members on board from Singapore for a 12-hour stay in God’s Own Country.
The arrival of the prestigious vessel caps a great tourist season for Kochi, which has beaten the world-wide economic recession to emerge as one of the hottest cruise destinations in the world, said a senior official of the Cochin Port Trust. Queen Mary 2, an imposing cruise liner with 17 decks that make it tower 200 feet above the water line, has added glamour to Kochi, which has carved a niche for itself in hospitality. Among the other facilities, Queen Mary 2 boasts the only planetarium on the sea with a variety constellation shows and other presentations. For the Kochi port, March has proved a profitable one with 11 vessels scheduled to call at the port. This includes Queen Mary 2’s sister vessel Queen Victoria.Read More
The arrival of the prestigious vessel caps a great tourist season for Kochi, which has beaten the world-wide economic recession to emerge as one of the hottest cruise destinations in the world, said a senior official of the Cochin Port Trust. Queen Mary 2, an imposing cruise liner with 17 decks that make it tower 200 feet above the water line, has added glamour to Kochi, which has carved a niche for itself in hospitality. Among the other facilities, Queen Mary 2 boasts the only planetarium on the sea with a variety constellation shows and other presentations. For the Kochi port, March has proved a profitable one with 11 vessels scheduled to call at the port. This includes Queen Mary 2’s sister vessel Queen Victoria.
Singapore firm aims to make vessel emissions ship-shape
When it comes to greenhouse gas emissions, the shipping industry is neither lean nor green.
Ships carry about 90 percent of global trade, and until recently, such has been the demand for coal, cars and electronics, that there has been little concerted effort to rein in the growth of polluting emissions from ships. But pressure is growing in the United Nations and from the European Union to make ships more efficient and their smokestacks more climate friendly. Just a few kilometres from one of the busiest ports in the world, a Singapore firm says it has the answer that can help the shipping industry clean up its act. Ecospec says it has invented and tested a patented method that removes planet-warming carbon dioxide and nitrogen oxides, sulphur dioxide, which causes acid rain, and soot from ship exhausts. The process, which uses very alkaline sea water sprayed into the exhaust funnel to scrub out the gases and soot, has already been tested on a tanker and earned the backing of the American Bureau of Shipping. Inventor Chew Hwee Hong said his firm had already developed non-chemical methods of water treatment and in 2008 was given a challenge by a large Middle Eastern tanker firm to find a way to scrub out CO2 emissions. The trick was to find a method that didn't cause secondary environmental damage and cleaned up the other polluting gases in the exhaust as well, he said.
Read More
Ships carry about 90 percent of global trade, and until recently, such has been the demand for coal, cars and electronics, that there has been little concerted effort to rein in the growth of polluting emissions from ships. But pressure is growing in the United Nations and from the European Union to make ships more efficient and their smokestacks more climate friendly. Just a few kilometres from one of the busiest ports in the world, a Singapore firm says it has the answer that can help the shipping industry clean up its act. Ecospec says it has invented and tested a patented method that removes planet-warming carbon dioxide and nitrogen oxides, sulphur dioxide, which causes acid rain, and soot from ship exhausts. The process, which uses very alkaline sea water sprayed into the exhaust funnel to scrub out the gases and soot, has already been tested on a tanker and earned the backing of the American Bureau of Shipping. Inventor Chew Hwee Hong said his firm had already developed non-chemical methods of water treatment and in 2008 was given a challenge by a large Middle Eastern tanker firm to find a way to scrub out CO2 emissions. The trick was to find a method that didn't cause secondary environmental damage and cleaned up the other polluting gases in the exhaust as well, he said.
Wednesday, March 18, 2009
Dubai Maritime City Environment Forum
Dubai Maritime City Authority launched its series of industry forums with the first covering shipping and the environment, focused on the recent changes to regulation that the industry is witnessing on discharges by vessels trading in territorial waters around the world.
Commercial ship owners trading in some countries waters now need a permit to discharge grey water, ballast water and all other discharges incidental to the operation of the vessel. The forum, which was hosted by the Environmental, Health, Safety and Security (EHSS) department at DMC Authority, comes as confirmation of the growing role of DMC Authority in monitoring and addressing the needs of the maritime industry in Dubai. The forum was divided into three sessions, each of which covered a different aspect of the issue. The first session was presented by Elaine Heldewier, the Environmental Director and Designated Person ashore for environmental issues for Carnival Cruise Line – the largest cruise line in the world, who presented attendees with a practical implementation program to address the required changes on their vessels. The final session was on ISO14001/Corporate Social Responsibility and how it makes good business sense, which was presented by a speaker from Det Norske Veritas (DNV), Dr. Vijay Rao, DNV’s Lead Auditor and Trainer for the Middle East for corporate sustainability and strategy.Read More
Commercial ship owners trading in some countries waters now need a permit to discharge grey water, ballast water and all other discharges incidental to the operation of the vessel. The forum, which was hosted by the Environmental, Health, Safety and Security (EHSS) department at DMC Authority, comes as confirmation of the growing role of DMC Authority in monitoring and addressing the needs of the maritime industry in Dubai. The forum was divided into three sessions, each of which covered a different aspect of the issue. The first session was presented by Elaine Heldewier, the Environmental Director and Designated Person ashore for environmental issues for Carnival Cruise Line – the largest cruise line in the world, who presented attendees with a practical implementation program to address the required changes on their vessels. The final session was on ISO14001/Corporate Social Responsibility and how it makes good business sense, which was presented by a speaker from Det Norske Veritas (DNV), Dr. Vijay Rao, DNV’s Lead Auditor and Trainer for the Middle East for corporate sustainability and strategy.
Qatargas, Shell sign LNG logistics agreement
Qatargas and Shell signed a memorandum of understanding (MOU) that will lead to the two companies jointly researching liquefied natural gas (LNG) logistics.
Through this joint logistics research collaboration, Qatargas and Shell aim to develop new ways to optimize supply chains to deliver to LNG global markets. The research will be conducted at the Qatar Shell Research & Technology Centre at the Qatar Science & Technology Park. The MOU was signed by Faisal Al Suwaidi, chairman and chief executive officer of Qatargas Operating Company, and Andy Brown, managing director of Pearl GTL and Qatar Shell Country Chairman. Also present at the signing was Ahmed Al Khulaifi, chief operating officer, Commercial & Shipping at Qatargas and Wael Sawan, vice president New Business Development of Qatar Shell. This research partnership we hope will develop and enhance our logistics and supply chain capabilities to allow Qatargas to deliver energy to our customers in the most effective and efficient manner possible as we grow and expand into almost every LNG market." Brown said: "Qatargas is set to become the world's premier LNG producer, and Shell is a pioneer in LNG spanning five decades. Therefore, it is of significant importance that Shell and Qatargas work together on this research topic to optimize LNG supply chains in the ever-more complex LNG markets. Shell is a shareholder in the Qatargas 4 LNG project currently under construction in Ras Laffan Industrial City.Read More
Through this joint logistics research collaboration, Qatargas and Shell aim to develop new ways to optimize supply chains to deliver to LNG global markets. The research will be conducted at the Qatar Shell Research & Technology Centre at the Qatar Science & Technology Park. The MOU was signed by Faisal Al Suwaidi, chairman and chief executive officer of Qatargas Operating Company, and Andy Brown, managing director of Pearl GTL and Qatar Shell Country Chairman. Also present at the signing was Ahmed Al Khulaifi, chief operating officer, Commercial & Shipping at Qatargas and Wael Sawan, vice president New Business Development of Qatar Shell. This research partnership we hope will develop and enhance our logistics and supply chain capabilities to allow Qatargas to deliver energy to our customers in the most effective and efficient manner possible as we grow and expand into almost every LNG market." Brown said: "Qatargas is set to become the world's premier LNG producer, and Shell is a pioneer in LNG spanning five decades. Therefore, it is of significant importance that Shell and Qatargas work together on this research topic to optimize LNG supply chains in the ever-more complex LNG markets. Shell is a shareholder in the Qatargas 4 LNG project currently under construction in Ras Laffan Industrial City.
Technical launch of 'Costa Deliziosa'
Italy: Costa Cruises and Fincantieri have hosted a ceremony for the technical launch of the ‘Costa Deliziosa’ at the Marghera yard.
The ‘Costa Deliziosa’, the 15th ship of Costa’s fleet with a total tonnage of 92,700DWT and a capacity of 2,828 passengers, is scheduled to be delivered at the end of January 2010, after completing the interior fitting out operations. Along with her sister ship, the ‘Costa Luminosa’, she will be the fleet’s flagship. The ‘Costa Deliziosa’s’ technical launch ceremony was carried out according to seafaring tradition. The launch ended with the welding of a coin at the base as a traditional gesture of good luck. The ‘Costa Deliziosa’ will be the third new Costa ship delivered by the Fincantieri group of yards in less than one year. The ‘Costa Luminosa’, also built at Marghera, will be delivered at the end of April 2009, while the ‘Costa Pacifica’, built at the Genova-Sestri Ponente yards, will be delivered at the end of May 2009.Read More
The ‘Costa Deliziosa’, the 15th ship of Costa’s fleet with a total tonnage of 92,700DWT and a capacity of 2,828 passengers, is scheduled to be delivered at the end of January 2010, after completing the interior fitting out operations. Along with her sister ship, the ‘Costa Luminosa’, she will be the fleet’s flagship. The ‘Costa Deliziosa’s’ technical launch ceremony was carried out according to seafaring tradition. The launch ended with the welding of a coin at the base as a traditional gesture of good luck. The ‘Costa Deliziosa’ will be the third new Costa ship delivered by the Fincantieri group of yards in less than one year. The ‘Costa Luminosa’, also built at Marghera, will be delivered at the end of April 2009, while the ‘Costa Pacifica’, built at the Genova-Sestri Ponente yards, will be delivered at the end of May 2009.
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