Brazil’s Vale cancels 30 Chinese iron ore shipments

Brazilian iron ore producer Vale (previously known as CVRD) has cancelled 30 iron ore shipments to Chinese mills in the first three months of this year due to repair work at ports and congestion.

The mills have also been informed of delays to a further 20 cargoes from the same source, indicating that Chinese steel producers will have to make alternative arrangements to ensure a constant supply of the raw material. On it’s website, Vale has said that export stoppages from its Itaguaí maritime terminal (due to repairs) “represents an average daily loss shipment of 60,000 metric tons of iron ore.” The terminal, which boasts an annual shipload capacity of 25m metric tons of iron ore, is expected to return its regular operations by the beginning of February. Vale also operates the Ponta da Madeira maritime terminal, Guaíba Island maritime terminal and the Tubarão Port. The delays coincide with the negotiations for 2008 iron ore prices currently underway between steel mills and miners. Prices are expected to see a substantial rise fuelled by inflation and growing global demand.

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NTSB: Crew mistakes caused heeling of cruise ship

The National Transportation Safety Board determined that the probable cause of an accident involving the cruise ship Crown Princess was the second officer's incorrect wheel commands.

Contributing to the cause of the accident were the captain's and staff captain's inappropriate inputs to the vessel's integrated navigation system while it was traveling at high speed in relatively shallow water, their failure to stabilize the vessel's heading fluctuations before leaving the bridge, and the inadequate training of crewmembers in the use of integrated navigation systems. On July 18, 2006, the cruise ship Crown Princess, which had been in service about a month, departed Port Canaveral, Florida, for Brooklyn, New York, its last port on a 10-day round trip voyage to the Caribbean. About an hour after departing, the vessel's automatic navigation system caused the ship's heading to fluctuate around its intended course. The Safety Board concluded that the incident occurred because the second officer initially turned the wheel to port, when he should have turned it to starboard to counteract the turn. The Safety Board also stated that the captain and staff captain made errors with regard to the ship's integrated navigation system.
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Dragon fires bigger production in 2007

Dubai-based Dragon Oil saw a 56 percent increase in its 2007 gross production over 2006, with an average rate of 31,997 b/d of oil compared to 20,514 b/d in 2006 .

Six development wells were completed offshore Turkmenistan during 2007, one from the upgraded Dzheitune (Lam) 13 platform (L13/118), one from the upgraded Dzheitune (Lam) 21 platform (L21/117) and four from the new Dzheitune (Lam) A Platform (LA/119, LA/121, LA/122 and LA/123). In addition, one development/appraisal well has been drilled from the upgraded Dzheitune (Lam) 28 platform (L28/120). The L28/120 well proved the presence of hydrocarbons and a high quality reservoir in the Dzheitune (Lam) West area and was completed as a producer. In addition, six wells have been worked over from two platforms using a combination of rigless wireline and hydraulic workover operations. The workover programme was successful and achieved incremental production in excess of 2,000 b/d.
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Ecuador to Invest $2 Billion in Oil Industry

Ecuador will invest U.S. $2 billion in its oil industry this year in a bid to increase production by 11 percent, said Energy Minister Galo Chiriboga.

Some $1.7 billion will be used to increase production at state oil company Petroecuador and another $300 million will be used to revamp the Esmeraldas refinery, Ecuador's largest, Chiriboga told Ecuador Inmediato radio. Ecuador is South America's fifth-largest oil producer and churns out an average of 510,000 barrels of crude a day. Chiriboga said Ecuador wants to increase this production by 11 percent this year with the investment. In a speech marking his first year in office, President Rafael Correa blamed Ecuador's 2.67 percent economic growth, one of the lowest rates in the region on a 9.8 percent decline in oil production. He said the slide was caused by his predecessor's failure to invest in the industry. Last year, Ecuador reactivated its membership in the Organization of Petroleum Exporting Countries, which had been suspended since it stopped paying cartel dues in 1992.

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Quintana deal stalled as dry bulk nosedives

Prospects for an immediate tie-up between US listed dry bulk companies Excel Maritime and Quintana Maritime, which has been offering itself for sale since last November, appeared to recede this week as stocks in the sector plummeted.

An agreement with Excel was promoted as fact earlier this month that suggested the New York Stock Exchange listed company was paying $27 per share for Nasdaq listed Quintana, which controls an ultra modern fleet of 29 bulkers as well as an involvement in eight newbuildings on the way. Another shipping executive who has been following the saga predicted that a takeover of Quintana would now be “a waiting game”. However, the chief executives of the two companies concerned, Christopher Georgakis at 18-ship Excel and Stamatis Molaris at Quintana, flatly refused to comment on any aspect of the matter. Many arm’s length observers this week felt that even if the two companies had approached an understanding a fortnight ago, the nosedive in dry bulk stocks since then would probably have killed prospects for a deal.
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Barge Strikes Richmond-San Rafael Bridge in fog

A barge carrying tanks of heavy black oil struck the Richmond-San Rafael Bridge.

The crash occurred, as he barge 'Cascade', was being guided by tugboats 'Delta Deanna' and 'Pacific Wolf' at the time, was headed outbound from Rodeo when it hit the east piling of the west span of the bridge whilst carrying 65,195 barrels of heavy black oil. After measuring the amount of oil on the barge after the incident, officials determined no oil spilled into the bay. An investigation into the incident was scheduled to begin at daybreak but weather caused a temporary setback. Alcohol tests were administered to the crewmembers and none had been drinking prior to the incident. Drug tests were also administered but the results are pending. There were no reports of any injuries occurring from the collision.
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CMA CGM invests in the port of Busan

CMA CGM has acquired a 12% stake in South Korea’s ‘Busan 2-3’ container terminal that is expected to become operational in 2011.

The terminal, which will feature a 2.7m teu annual capacity when completed, will be operated in partnership with Macquarie, Bouygues, Hyundai, KMTC, Busan Port Authority and local operators KUKJE and KCTC. Busan 2-3 is CMA CGM’s first port investment in South Korea, and the second one in Asia (a cooperation agreement was signed in Xiamen in November 2007). The project further strengthens the relations ship between CMA CGM and South Korea, where the group’s giant container vessels are currently being built.

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