Caribbean tanker rates fall on low demand

The cost to transport crude oil from the Caribbean on Aframax tankers fell, declining for the first time in more than a week amid light demand for voyages.

'The tanker market is relatively quiet,' Omar Nokta, an analyst at Dahlman Rose & Co in New York, said in a note. 'Activity is likely to be muted through the New Year, with reducing Opec production and depressed crack spreads globally hindering tanker demand. 'Aframaxes were hired for an average rate of Worldscale 335 on Tuesday, down 8.2 per cent from Monday, according to New York-based Poten & Partners. It's the first decline since Dec 17. Worldscale 335 is about US$82,000 a day after expenses, such as fuel and port fees. The slowing US economy has cut demand for gasoline, increasing stockpiles of crude oil and depressing the need for voyages. US oil inventories have climbed 11 per cent since Sept 19, according to a Dec 16 US Energy Department report. Inventories stood at 321.3 million barrels.

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BW Group joins tax exemption scheme

Singapore: The BW Group has kick started the year with a new name for its vessel management section and has registered with Singapore’s Approved International Shipping Enterprise (AIS) scheme, which grants it tax exemption on income from the operation of ships outside of Singapore for a period of 10 years.

BW Shipping Managers will now operate under the name BW Maritime and continue to be responsible for all tanker fleet commercial activities along with a number of corporate activities within the BW Group.“These new names do not reflect any change in the substance of who we are or what we do, but represent a step forward in rationalising the structure of the group, allowing us to benefit from groupwide capabilities and for BW Maritime to join the Singapore AIS scheme,” said Andreas Sohmen-Pao, BW Maritime md and Group ceo. The BW Maritime name change coincides with the formation of BW Fleet Management, which combines the strengths of the ship management teams from BW Gas and the former BW Shipping. BW Fleet Management is led by md Morten Steen Martinsen, with teams based in Oslo and Singapore, and will manage the BW gas and tanker fleets.

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ExxonMobil wrestles over Point Thomson

ExxonMobil wants to start drilling wells in Alaska's North Slope, but the oil giant said the state is denying a drilling permit for the 106,201-acre field known as Point Thomson and is therefore taking its case to Alaska's Superior Court.

The natural gas reserves are believed to represent nearly one-fourth of the North Slope's 35 trillion cubic feet of proved reserves. This has led some state lawmakers to view the field's development as vital to a successful natural gas pipeline project. They want to see a resolution soon, said an Associated Press report. Since 2005, the state has tried to take the leases and find new leaseholders; field operator ExxonMobil, and its partners who include BP and Chevron want to move forward. ExxonMobil said it is "ready, willing and able," to begin a $1.3 billion project that would start producing 10,000 barrels a day of condensate, which is considered a light form of oil. The current issue is whether ExxonMobil truly has the right to pursue legal action for the permit at this point. The state says it is a premature move because Natural Resources Commissioner Tom Irwin has not reached a final decision on the company's permit request. ExxonMobil says Irwin's decision has already been made when he wrote a letter in August, saying: "You do not have and will not be granted permission to enter the subsurface of Alaska lands without a valid oil and gas lease." A ruling by Judge Patrick McKay could come within a week.

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Nigerian government to phase-out single hull vessels by 2010

The Federal Government has concluded plans to phase-out single hull vessels within the nation's maritime territory, in compliance with the directive of the International Maritime Organization

Already, a technical committee, comprising of ship owners and nominated government officials, has been formed for the implementation of the scheme. The technical committee, set up few days ago by the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Indigenous Ship Owners Association of Nigeria (ISAN), is expected to harmonise the modalities for the implementation of regulation 13G, which made it mandatory for member states to phase out single hull tankers from territorial waters.The committee was set up at a meeting between the management of NIMASA and executive members of the association, led by its Chairman, Chief Isaac Jolapamo, which took place in Lagos.

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Synergy delivered: BW Shipping renamed BW Maritime

BW Shipping Managers Pte. Ltd. has been renamed BW Maritime Pte. Ltd. as part of an internal reorganization to leverage strengths across the BW Group.

Under its new name, the company will continue to be responsible for all tanker fleet commercial activities along with a number of corporate activities within the BW Group. Additionally, it been registered in Singapore’s Approved International Shipping Enterprise (AIS) scheme from 1 January 2009. AIS provides companies with a tax exemption on income from the operation of ships outside of Singapore for a period of 10 years. “These new names do not reflect any change in the substance of who we are or what we do, but represent a step forward in rationalizing the structure of the group, allowing us to benefit from groupwide capabilities and for BW Maritime to join the Singapore AIS scheme,” said Andreas Sohmen-Pao, BW Maritime md and Group ceo. The BW Maritime name change coincides with the formation of BW Fleet Management, which combines the strengths of the ship management teams from BW Gas and the former BW Shipping.

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Hyundai Heavy Industries misses 2008 sales goal

Seoul: Hyundai Heavy Industries has revealed that it failed to meet its target for new orders in 2008 as the global recession sapped demand for vessels.

New orders for ships, marine engines, offshore platforms and other products probably rose 13% to $28.2bn, falling short of the $29.4bn target, the Ulsan, Korea-based company said in a regulatory filing on Wednesday. The worst global financial crisis since the Great Depression has caused funds to dry up, making it difficult for shipping lines to arrange loans for new vessels and pay for the ones they’ve ordered. The meltdown has prompted trade to slump, with the World Bank projecting the first decline in almost 30 years. Hyundai Heavy had no orders for new vessels for three months since October as demand for iron ore and consumer goods plunged. Sales will probably climb 26% to a record 19.6 trillion won ($16bn) as more vessels are built at higher prices, exceeding its target of 18.1 trillion won, Hyundai Heavy said in the filing. The company delivered a record 102 vessels last year, 28% more than in 2007 as it worked through almost four years of order backlog.

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India inaugurates first national maritime institute

The chief minister of the state of Tamil Nadu, M Karunanidhi, inaugurated the Indian Maritime University at Uthandi in Southern India on Wednesday.

The institute, which is India's first national maritime academy and was set up by the Department of Shipping through an Act of Parliament, will kick start its academic year in June with a plethora of courses up to international standards ranging from MBAs in port management and logistics to degrees in maritime law and dredging. In fact, the university is associated with a number of other international academic institutions including the Dalian Maritime University, Shanghai Maritime University and Antwerp University for its courses.

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