Jan 17, 2011

Noble to swap rig in Brazil, citing "reliability"

Noble Corp, the world's second-largest offshore drilling contractor by fleet size, plans to swap out an underperforming rig for key client Petrobras and take a $40 million charge for an abandoned upgrade.
The Noble Phoenix, now working in Brunei for Royal Dutch Shell Plc , would move to Brazil later this year to replace the Noble Muravlenko to address "reliability issues" faced by the latter rig, Noble said in a statement on Monday.
[Read more]
Source: Reuters
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Oklahoma landowners challenge TransCanada’s Keystone pipeline

TransCanada is facing new battles in its $12-billion project to build an oil sands pipeline to the U.S. Gulf Coast, as landowners in Oklahoma challenge its right to expropriate land for its right of way.
Oklahoma resident Sue Kelso and her siblings have filed a motion in district court to block TransCanada’s plan to exercise eminent domain in order to build across their property. Ms. Kelso, 69, lives on a farm where she grew up near the Texas border in southern Oklahoma.
[Read more]
Source: The Globe and Mail

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Saipem wins Gladstone LNG pipeline work in Australia

Saipem has been awarded new onshore contracts worth approximately US$1 billion. 
In Australia, Gladstone LNG Operations Pty Ltd awarded Saipem the EPC contract for the engineering, procurement and construction of a gas pipeline, 42 inches in diameter and 435 kilometers long, which will connect the gas fields in the Bowen and Surat Basins, in the area between Roma and Emerald, Queensland, to the Gladstone State Development Area (GSDA) on the Coral Sea shore, near the city of Gladstone, Queensland, where a LNG liquefaction and export facility will be built.
The pipeline will be entirely buried and a number of mitigation measures will be implemented during pipeline construction to minimize the environmental impact to sensitive areas, including weed control, rehabilitation and biodiversity offsetting. 
The works will be completed in the third quarter of 2013. 
Furthermore, in West Africa and the Middle East, Saipem has agreed with its clients various increases in the scope of its work on existing onshore contracts.
Source: Press release

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China: Second Zitong deep gas find tested

The Zitong-1 well on the Zitong exploration block in China’s Sichuan basin tested at a restricted 750 Mcfd of gas on a 3-mm choke from 33 m of pay in the Xu-4 tight sand formation, said Ivanhoe Energy Inc. unit Sunwing Energy Ltd.
The company plans to test the more conventional Xu-5 sand formation, in which logs indicate porosity is 10-14%. The Xu-2 zone, productive in third-party wells in the area, was too tight to achieve commercial rates in Zitong-1. The three formations are candidates for horizontal drilling and multistage frac stimulation, the company said.
After the company’s Dec. 21, 2010, test of the Yixin-2 well at 13 MMcfd on the block, Sunwing tested the well at a lower, controlled rate of 1.25 MMcfd to 1.5 MMcfd for 48 hr and then shut-in for 21 days to obtain pressure data. The Xu-4 flow rates are consistent with what is observed in tight, fractured sandstones that rely on stimulation to generate commercial flow rates.
Source: Press release

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Trans Energy Begins Drilling Its Seventh Horizontal Marcellus Well in Marshall County, WV; Completes Frac on Stout #2H in Marshall County, WV

Trans Energy, Inc. announced today that it has begun drilling the Lucey #1H well in Marshall County, West Virginia. The Lucey #1H will be drilled and completed horizontally in the Marcellus shale.
John G. Corp, President of Trans Energy, said, "We have completed the drilling of the Keaton #1H and have now begun the drilling of the Lucey #1H. The Lucey #1H is the last of our four planned horizontal Marcellus wells in Marshall County in the second half of 2010.  
"Additionally, last week we completed the 11 stage frac on the Stout #2H in Marshall County, WV and are beginning the process this week of drilling out the frac plugs. We now have both the Groves #1H and the Keaton #1H wells drilled and behind pipe and have secured frac dates in February and March for these two wells.
"Trans Energy continues to move to a development phase from an exploration phase as it develops its acreage position in northern West Virginia."  
Source: Press release

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Icebreakers near trapped Russian ships

FESCO is today still working to free ships trapped by ice since last year in Sakhalin Bay.
Far Eastern Shipping said today in Moscow that two icebreakers – Admiral Makarov and Krasin – have cut a 25-n mile passage over the past three days and are finally near the factory mother ship Sodruzhestvo and Bereg Nadezhdya, a reefer.
[Read More]
Source: Safety at Sea
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Crew Energy ramps up drilling at Princess oil site near Brooks

Crew Energy Inc. has increased its capital budget for 2011 to $210 million as it aims to add 30 per cent to its average fourth-quarter production of 14,500 barrels of oil equivalent per day.
The Calgary-based intermediate said it would drill 112 net wells with all but five of them at its Princess oil property in southeastern Alberta near Brooks.
[Read more]
Source: Calgary Herald
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Hundreds rescued, 20 sought in sinking

MORE THAN 200 migrants have returned to land after they were rescued from their sinking vessel by a Dutch multipurpose cargo ship off Corfu, Fairplay was told today.
The wooden vessel Hasan Rei was travelling to Italy when it started taking on water late on 15 January, according to Greece’s maritime ministry.
[Read More]
Source: Safety at Sea
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Anderson Energy not to spend on natural gas properties

Canada's Anderson Energy Ltd said is not planning to spend any capital on its natural gas properties in 2011 and direct almost its entire capital program to horizontal oil drilling, mainly at its Cardium acreage in Alberta.
[Read more]
Source: Reuters
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Port of Brisbane reopens after flood

Queensland's trade and freight network is slowly getting back to normal, with the Port of Brisbane today reopening for business.
[Read More]
Source: ABC News
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Drydocks, DNV work on LNG fuelled vessels

Drydocks World and DNV have entered into a cooperation agreement focusing on innovation and operational efficiency.
DNV will provide technical assistance to Drydocks World’s innovative projects, and support the yard with technical expertise in conversion projects, specifically related to enhanced environmental performance of ships, including gas fuelled engines.
[Read More]
Source: Motorship
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Craig Group predicting a return to profit growth this year

Craig Group, the global shipping and energy services firm, will report a profit pick-up this year after a restructuring and "challenging" trading impacted its 2010 results.
The Aberdeen-based business, which is in its third generation of family ownership, booked a pre-tax profit of £10.7 million in the year to 30 April, down from £15.5m a year earlier.
[Read more]
Source: Scottman
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Hull condition assessment software reduces maintenance

Flagship, the Pan-European maritime transport project part funded by the EU, has developed software that can forecast the condition of a ship’s hull to help improve the efficacy of surveys and reduce the amount of time a ship is out of service.
[Read More]
Source: Motorship
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Ukraine and Belarus sign agreement on oil transit via Odessa-Brody pipeline

Ukrtransnafta JSC and the Belarusian Oil Company signed an agreement on the Ukrainian side's transit of the four million tons of oil annually via the Odessa-Brody oil pipeline to the Mozyr refinery in Belarus, the press service of Energy Ministry of Ukraine reported. 
[Read more]
Source: Trend News Agency
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Cruise lines optimistic despite economy

For cruise lines, passenger bookings during the "wave season"—the first quarter of the year—are generally a good indicator on how well or how poor the year is going to be. A recent survey conducted by the Cruise Line International Association of its members and travel agents indicates that 2011 is going to be a record-breaking year.
[Read More]
Source: Marine Log
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Range Resources Amends PSAs With Puntland Govt To Extend Exploration Agreement

Range Resources has amended its agreements with the government of Puntland (Somalia) over its production sharing agreements (PSAs) for the Dharoor Valley and the Nugaal Valley exploration areas.
Under the amended PSAs, the first exploration agreement has been extended for a further 12 months until 17 January 2012.
[Read more]
Source: Proactive Investors
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MV Eagle Pirated in Somali Basin

In the early hours of Monday 17 January, the bulk carrier MV Eagle was attacked and pirated by a single skiff, with pirates firing small arms and a Rocket Propelled Grenade before boarding the vessel.
[Read More]
Source: Marine Link
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Shell starts public consultation process for shale gas exploration

Energy giant Shell has appointed an independent consultancy to compile an environmental-management programme (EMP) for its shale gas exploration activities in South Africa’s Karoo basin.
Shell submitted an application to the Petroleum Agency of South Africa (Pasa) for three exploration licences over parts of the Western, Northern and Eastern Cape.
[Read more]
Source: Engineering News

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Shipbuilding slows; innovations remain

The greatest cruise-ship building boom in history -- fueled by innovation and new technology -- is not over, but it is winding down.
While some ships still are on order or under construction, the future soon will be nothing like the recent past, when fleets of cruise ships with new styles and exciting new designs popped out of European shipyards at a furious pace.
[Read More]
Source: Sea News
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Weighing containers - full or empty - on the way

WEIGHING containers - full or empty - will be become a necessary part of shipping life, according to delegates attending a London conference sponsored by the insurance group, UK P&I Club.
[Read More]
Source: Sea News
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Canadian Natural unsure when Horizon production will restart

Canadian Natural Resources does not know when production at its Horizon facility will resume as it has still not been able to assess the damage from a fire eleven days ago, vice-chairman John Langille said.
"We haven't been allowed complete access yet we're still working with the occupational health safety people," Langille told Reuters on the sidelines of an energy conference in London on Monday.
[Read more]
Source: Reuters
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Farstad: Charter Agreements

Farstad Shipping ASA has, on behalf of wholly owned subsidiaries, been awarded the following charter contracts: PSV Far Symphony (2003, P105, 4.929 DWT) has been awarded a six (6) years firm contract by ConocoPhillips Skandinavia AS for support of their operation in the North Sea.
Commencement of the contract is April 2011, and additional option periods are included in the contract.
ConocoPhillips has also contracted PSV Far Server (2010, Havyard 832CD, 4.000 DWT) for a period of one (1) year, for support of their North Sea operation. Start-up of the contract is February 2011, and there are also additional option periods included.
The charters are entered into on market terms for similar vessels and charter periods. It has been agreed with ConocoPhillips to keep the commercial terms of the contracts P & C.
Source: Farstad Shipping ASA
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DNV Petroleum Services charts 30 years of progress in the bunker testing business

DNVPS managing director 
Tore Morten Wetterhus.
When DNV Petroleum Services (DNVPS) launched its marine residual fuel testing service on Jan 1, 1981, ship operators for the first time were able to scientifically analyse the quality of fuel supplied to their vessels. The DNV Fuel Quality Testing (FQT) programme is today the biggest service of its kind in the shipping industry,
with a cumulative volume of over 1.4 million tested fuel samples.
Nonetheless, DNVPS managing director Tore Morten Wetterhus says the company’s first fuel sample – tested and reported on Jan 16, 1981 – holds special meaning.
“Of all the fuel samples we’ve analysed, the first one speaks best about the successful partnership between DNV and industry researchers in developing a reliable way to ascertain bunker quality. That’s how DNV Petroleum Services came into being, and which is why on Jan 16 this year, we made it a point to celebrate the 30th anniversary of our inaugural sample,” Mr Wetterhus said.
Prior to that, ship operators were unable to comprehensively predetermine the quality of bunkers to be consumed by their vessels. This became a serious constraint during the Oil Crisis in the 1970s when the increased application of ‘deep conversion’, high-yield refining techniques caused residual fuel quality to deteriorate considerably.
In turn, the shipping community saw a drastic increase in damages to fuel pumps, piston rings, cylinder liners and other costly engine parts on board their vessels.
The DNV FQT programme was therefore a significant breakthrough as ship operators enrolled in the programme could then detect poor quality bunkers delivered to their vessels and take appropriate actions, Mr Wetterhus said.
DNVPS went on to develop and disclose its proprietary test method for determining fuel metals content, including the highly abrasive Aluminium and Silicon compounds commonly found in heavy residual fuel.
This test method became the basis for the IP377 procedure adopted by both ASTM and ISO.
As a marine fuel management pioneer, DNVPS’ corporate history reflects the changing fuel priorities and requirements of ship operators, of which bunker regulations have emerged as a key driver in recent years. “Regulations such as IMO Marpol Annex VI, SOLAS and the EU Directive 2005/33/EC are making a huge impact in the value chain – from fuel production to bunkering to ship operation. DNVPS helps ship operators manage the resulting challenges with our expert advice, training initiatives, and direct intervention through our participation in industry working committees,” Mr Wetterhus said.
Source: DNVPS
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Middle East Supertanker Glut to Prevent Rate Gains, Imarex Says

Imarex Asia Pte, a unit of Oslo- based freight derivatives broker Imarex ASA, comments in an e- mailed report today on supply and demand for supertankers to load 2 million-barrel cargoes of Middle East crude oil.
[Read More]
Source: Bloomberg
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IEA chief warns of tighter oil market in 2011

International Energy Agency chief Nobuo Tanaka warned on Monday of tighter oil supply over the next year, thanks to a more robust global economic recovery and declining oil inventories in the industrialized world.
"The economic recovery is becoming robust," Tanaka said in Abu Dhabi where he was attending the World Future Energy Summit. "OECD stocks have declined, so the market could be tighter next year." 
[Read more]
Source: The Platts
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'Adventure and money' lure sailors to dangerous waters

Second mate Anupam Bhattacharji heard the shots before he saw the pirates hook their ladder onto his ship and climb aboard. The deck of the MT Sea Princess II - loaded down with oil and travelling off the coast of Yemen - floated just a metre above sea level.
The boat was a small type of vessel known as "low and slow" - textbook prey for the Somali marauders.
One crewman ran into the galley to hide and a bullet flew through the door and killed him. He had only joined the Sea Princess, his first vessel, one day earlier.
The rest of the 17 Indian, Yemeni and Iraqi crew obeyed the pirates' orders to turn the ship towards Somalia.
[Read More]
Source: The National
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Analysis: Refiners threaten anti-pollution efforts in shipping

Global efforts to drastically reduce toxic sulfur emissions in the shipping industry will likely be delayed for years due to the reluctance of refiners to invest billions of dollars to produce cleaner burning fuel.
The U.N. shipping agency, International Maritime Organization (IMO), has set a 2020 deadline for the maritime community to slash the amount of sulfur burned by the global fleet, blamed for thousands of deaths every year.
The IMO estimates the industry needs to invest nearly $150 billion in secondary refining capacity to ensure enough supplies are available.
[Read More]
Source: Reuters
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North P&I Club warns of stability risk when complying with ballast water rules

The ‘A’ rated 125 million GT North P&I club has warned shipowners to take great care when attempting to comply with ballast-water rules by exchanging ballast water at sea. The club says in the latest issue of its loss-prevention newsletter ‘Signals’ that without a meticulously prepared and implemented procedure for ballast water exchange, ships face a serious risk of a loss of stability.
According to risk management executive, Simon MacLeod, ‘The 2004 International Convention for the Control and Management of Ships’ Ballast Water and Sediments (BMW Convention) needs to be ratified by just three more states with 10% of world tonnage, but many countries have already introduced their own regional mandatory ballast-water requirements - many of which are based on IMO guidelines.’
The new regulations are designed to prevent the introduction and spread of harmful marine organisms by shipping, and one of the most common ways of complying is to exchange ballast water on passage. ‘However, this can pose significant stability risks if a proper plan is not developed and rigorously followed on board,’ says MacLeod.
North reminds shipowners that emptying and refilling ballast tanks can significantly reduce a vessel’s stability, both by reducing ballast weight but also by introducing free-surface effects. In dynamic deep-sea conditions, this can potentially lead to an angle of loll and ultimately capsize.
‘An angle of loll is very dangerous situation and should be corrected as soon as possible,’ says Macleod. ‘However, the effects of corrective actions should be carefully calculated to ensure matters are not made worse.
‘Given the potential risks associated with deep-sea ballast-water exchange, it is critical that a proper plan, including the sequence in which the tanks have to be emptied and refilled and the weather limits to be observed during operation, is carefully developed and implemented,’ says MacLeod. ‘Full use should be made of the vessel’s stability book and loading computer in developing the plan.’
North provides P&I insurance to 95 million GT of owned tonnage and 30 million GT of chartered tonnage, with 4250 ships entered by 375 members. The club is based in Newcastle upon Tyne, UK with regional offices in Hong Kong, Piraeus and Singapore.
Source: North of England & P&I CLUB
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Golar LNG Energy - New Time Charter Contracts

Golar LNG Energy Limited is pleased to announce that it has entered into agreements to time charter its 4 modern LNG carriers (Golar Grand, Golar Viking, Golar Arctic and Golar Maria) for periods of between 12 and 18 months to various charterers. Total charter coverage amounts to 57 months. The commencement of the different fixtures ranges from February to April 2011.
The combined annualized EBITDA contribution of all 4 vessels derived from these time charters is approximately $80 million based on assumed levels of operating costs. This represents attractive rates above the current spot market rate for LNG carriers.
The spot market for LNG vessels over the last decade has been highly volatile resulting in difficulties maintaining reasonable utilization rates. Total operating costs for LNG carriers while not on-hire are significantly higher than in other shipping markets; due to high fuel consumption during idling, cool down requirements and repositioning costs. This fact, along with current attractive charter rates, is a contributing factor with regards to the decision to fix out the vessels for the near term.
Golar Energy's CEO, Oscar Spieler said in a comment: "The LNG shipping market has recently tightened and these four time charters, together with the recent success on the Nusantara Regas Project in West Java, puts the Company in a strong position for further growth. The charter coverage will strengthen the Company's liquidity position and create liquidity for developing additional FSRU projects without raising additional equity. We believe that the market will strengthen further in the years to come due to a relatively small newbuilding order book, strong increases in LNG production, and changing trading patterns."
Source: Press release
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Trans-Alaska Pipeline System to restart operations using bypass

The Trans-Alaska Pipeline System (TAPS) is scheduled to restart operations following the installation of the pipeline bypass to circumvent the damaged Pump Station 1 in Prudhoe Bay.
On January 8, the 800-mile-long TAPS line was shut down following the discovery of a crude oil leak at Pump Station 1 in Prudhoe Bay, north of the Arctic Circle. The line was restarted with a very limited flow on January 11 to allow Aleyeska Pipeline Services, the operator of the export line, the opportunity to prepare the line and mitigate any damage the harsh Alaskan winter might cause.
The pipeline was then shut down again for the installation of the bypass line on January 15. This bypass will circumvent the leaking booster pump discharge pipe at Pump Station 1.
While the installation of the bypass was originally expected to take only 36 hours, the shut down was extended because the sealing and draining of the pipeline took longer than expected.
The Trans-Alaska Pipeline System is now expected to restart the morning of January 17.
A report from Bloomberg claims that the bypass installation was completed in the early hours of Monday morning, but a restart time has not yet been published.
Providing transport to some 15 percent of US domestic production, the TAPS shut down forced major North Slope producers to curtail production, which helped to push the price of oil higher in trading last week.
Oil dropped slightly in trading Monday morning, but the price per barrel remained near the $91 mark.
Source: Press release
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Dry bulk market has bottomed out, as weather in Australia dials down

The dry bulk market has finally halted its plunge, after a devastating week of yet more losses. The industry’s benchmark, the Baltic Dry Index (BDI) has stayed lull at 1,439 points the lowest it’s been since April of 2009 and October of 2008. Still, yesterday, the capesize index lost an additional 0.31%, while the Panamax segment fell by 1.87 percent. The only “survivor” of the market was the smalle handysize segment which yesterday gained 1.05%.
[Read More]
Source: Hellenic Shipping News
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Caza Oil & Gas commences drilling operations on Arran prospect

Caza Oil & Gas Inc today announced commencement of drilling on its Arran Prospect in Acadia Parish, Louisiana.
The company said that the Marian Baker No 1 well commenced drilling on 16 January and is the initial test well on Arran.
Arran is a significant, 3-D seismically defined prospect supported by AVO data within a proven play fairway. The Marian Baker #1 well is designed to drill to a total depth of approximately 16,000 feet and is expected to encounter multiple, potential, hydrocarbon bearing reservoir sections, the company said.
It expected to take approximately 60 days to reach the proposed total depth.
Caza has a 25% working interest before casing point and a 35.94% working interest after casing point in the Marian Baker No 1 well with an approximate net revenue interest of 26.24%.
Source: Press release

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Kawasaki eyes LNG-FPSOs

Japan’s Kawasaki Heavy Industries (HKI) is planning a move into the LNG-FPSO market.
Japan's local newspaper, Nihon Keizai Shimbun, reported on 14th January that Kawasaki Heavy Industries is soon launching a LNG-FPSO building project to produce LNG in its Chinese joint venture.
[Read More]
Source: Asiasis
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Hyundai close to 100m GT

Korea's Hyundai Heavy Industries seems to be the first shipyard worldwide to exceed 100m GT in terms of combined newbuilding output of commercial ships.
Hyundai is expecting to surpass 100m GT in combined newbuilding output in April and planning to hold a ceremony to celebrate it.
[Read More]
Source: Asiasis
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Sembcorp Marine's sembawang shipyard secures newbuilding and upgrading contracts worth S$215 million


Sembcorp Marine’s subsidiary Sembawang Shipyard has secured a newbuilding and three major upgrading contracts totalling S$215 million, reinforcing its reputation as a world leading shipyard for ship repairs, ship conversions and specialized offshore newbuildings.
The first contract is awarded by Teekay Shipping (Australia) Pty Ltd for the Engineering, Procurement, Construction and Commissioning (EPCC) of a dynamically positioned blue water research vessel for Australia. The Commonwealth Scientific and Industrial Research Organisation (CSIRO), Australia’s national science agency and one of the largest and most diverse research agencies in the world, will operate the vessel on behalf of the Australian Government for use by the Australian marine research community.
Sembawang Shipyard secured this S$123 million specialized newbuilding contract based on the shipyard's capabilities and established track record in the highly specialised and sophisticated sector of niche and customized vessels newbuilding. In particular, dynamically positioned and fit-for-purpose vessels require able design, engineering and project management capabilities, high Health, Safety and Environment (HSE) standards, proven EPCC expertise and strong organisational capabilities.
Upon completion and delivery in the second quarter of 2013, the vessel will be named RV Investigator and will provide a safe and advanced diverse marine science capability to Australia. She will be based in Hobart, Tasmania and operates from the tropical north to the Antarctic ice-edge and across the Indian, Southern and Pacific oceans.
Mr. David Parmeter, Managing Director of Teekay Shipping (Australia) Pty. Ltd said “Sembawang Shipyard is our valued partner in Singapore and has strongly supported us throughout the due diligence process to CSIRO. We are confident that our close partnership and collaboration will lead to the timely and safe delivery of the state-of-the-art new research facility to comply with CSIRO’s stringent operating standards for multi-disciplinary research activities at sea.”
Dr Andrew Johnson, Group Executive - Environment, CSIRO said “The award of this contract is an important part of a four-year process by CSIRO through the “Future Research Vessel Project” to build a new and highly advanced research vessel. RV Investigator will significantly boost the oceanographic, geoscientific, fishery, and ecosystem research capability available to Australian marine researchers. The new vessel will deliver benefits to many Australian agencies and underpin science discoveries from Southern Hemisphere marine environments. We have selected Sembawang Shipyard and Teekay Shipping as the right partners for CSIRO through a rigorous evaluation process and have full confidence that both companies will together deliver our new vessel to our required standards.”
Besides the above newbuilding contract, Sembawang Shipyard was also recently awarded three major upgrading projects with a total contract value of S$92 million comprising: 1) an upgrade of a dynamically positioned heavy-lift and pipelay vessel with a lifting capacity of up to 4,400 tons from a leading engineering, procurement, construction and installation company, 2) a LNG carrier longevity project and 3) an upgrade of a drillship.
Mr. Ong Poh Kwee, Managing Director of Sembawang Shipyard said “We would like to thank our partners and customers for selecting Sembawang Shipyard to execute these prestigious and important contracts and for their trust and confidence in our capabilities. Each of these projects demand strong engineering and project skills to be executed in a safe environment and at a time when the shipyard is near completion of our infrastrutural enhancement programme. Our commitment to our partners will be demonstrated in timely, quality and efficient turnaround of projects. We look forward to delivering mutual benefits and value propositions to our world-class customers.”
Source: Press release
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China to Finance $293.5m of ESL’s Nine Vessels

The Export-Import Bank of China has agreed to finance 80pc of the cost, projected to be 293.5 million dollars, for the building of nine vessels that Ethiopian Shipping Lines (ESL) is to acquire, the largest order the national flagship has made in its 46 years.
[Read More]
Source: Fortune
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Huge source of oil, gas found in South China Sea

Chinese geologists have detected 'super-thick' oil and gas-rich strata in the South China Sea and also identified 38 offshore oil and gas basins, a media report said Monday.
The outskirts of Songliao basin in northeast China, Yin'e basin in the north and Qiangtang basin on the Qinghai-Tibet Plateau have rich oil and gas resources, the China Daily quoted Wang Min, vice-minister of land and resources, as having said at a conference in Beijing.
[Read more]
Source: Beijing News.Net
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Sembawang Shipyard secures contracts worth S$215m

SINGAPORE : Sembawang Shipyard, a subsidiary of Sembcorp Marine, has secured one building and three upgrading contracts totalling S$215 million.
[Read More]
Source: channelnewsasia
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Eastern Shipbuilding launches ferry for New Brunswick


Eastern Shipbuilding this month launched Grand Manan Adventure, an 82-vehicle ferry that it is building at its Panama City, Fla. shipyard under a $65 million contract from the Government of New Brunswick, Canada, awarded in March 2009.
[Read More]
Source: Marine Log
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Oil And Logistics Giants Order New Bulk Carriers

CHINA – Four new liquefied natural gas (LNG) vessels are to be built by the Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. (Hudong), a subsidiary of the China State Shipbuilding Corporation on behalf of the Exxon Mobil Corporation and Mitsui O.S.K. Lines Ltd. (MOL) the companies announced today. These are the vessels which we revealed were to be ordered in an article last March.
[Read More]
Source: Handy Shipping Guide
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Taking shape‎

Two vessels, under construction, stand in a dry dock of Shanhaiguan Shipbuilding Industry Co in north China's Hebei Province yesterday. China's shipyards finished building 65.6 million deadweight tons of ships last year, an increase of 54.6 percent on an annual basis, according to the Ministry of Industry and Information Technology. The country's shipbuilders received new orders totaling 75.23 million dwt in 2010, nearly triple the amount a year earlier.

Source:Shanghai Daily
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ConocoPhillips set to sell Timor Sea interests

ConocoPhillips has put its controlling stake in the big Barossa and Caldita gas fields in the Timor Sea up for sale, throwing into doubt the US giant's interest in expanding its Darwin LNG processing plant.
It is understood ConocoPhillips was close to securing a buyer - thought to be a European energy group - for its 60 per cent stake in Barossa-Caldita until disagreement over processing options for the gas scuppered the deal in the run-up to Christmas.
[Read more]
Source: The West Australian 
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BP awarded four Australian Deepwater Exploration blocks

BP today announced that it has been awarded four deepwater offshore blocks in the Ceduna Sub Basin within the Great Australian Bight, off the coast of South Australia.
BP said that it will explore Exploration Permit for Petroleum (EPP) areas EPP 37, EPP 38, EPP 39 and EPP 40 covering an area of 24,000 km2 for oil and gas reserves, with the right to develop any commercially viable discoveries.
"This is a material and early move into an unexplored deepwater basin," said Mike Daly, Executive Vice President of Exploration for BP.
"The Ceduna Sub Basin is a very exciting new exploration area for BP. Our experience tells us that the geology has a high potential for containing hydrocarbons," added Dr Phil Home, Managing Director of BP's Australian upstream oil and gas business.
BP said that the proposed exploration activity would be phased over 6 years and, as part of the regulatory approval process, would be subject to detailed environmental assessment.
Source: Press release

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Gas Agreements: Gazprom, Japan may build LNG plant near Vladivostok

Alexey Miller, Chairman of the Gazprom's Management Committee and Tetsuhiro Hosono, Director General of the Agency for Natural Resources and Energy under the Japanese Ministry of Economy, Trade and Industry signed an Agreement of Cooperation. 
The Agreement envisages preparation of a joint feasibility study on the options for natural gas utilization near Vladivostok as well as for natural gas and gas chemicals transportation from the Vladivostok region and their sales among potential customers in Asia-Pacific countries. 
Among other things, the signed document stipulates that a joint front-end engineering design be undertaken in 2011 on constructing an LNG plant near Vladivostok. The parties will also study the possibility of the pilot project on natural gas compression in Vladivostok for subsequent offshore transportation and organization of gas chemicals production. 
The parties also extended the Framework Agreement of Cooperation for five years. 
With its scarce domestic energy resources, Japan is the world's fourth largest energy consumer. The country annually consumes some 80 billion cubic meters of gas. The share of gas in the Japanese energy mix is currently at 14 per cent and it is likely to grow. 100 per cent of consumed gas is imported in the form of LNG, making Japan the world's top LNG importer. 
Gazprom and the Agency for Natural Resources and Energy under the Japanese Ministry of Economy, Trade and Industry signed the five-year Framework Agreement of Cooperation on November 21, 2005. The Agreement sets forth the key areas of bilateral cooperation in the gas sector. A Joint Coordinating Committee (JCC) was established to implement the Agreement. A Joint Working Group was set up within the Committee. 
As part of the Russia's Prime Minister Vladimir Putin working visit to Japan ?n May 12, 2009 heads of Gazprom, Agency for Natural Resources and Energy under the Japanese Ministry of Economy, Trade and Industry, Itochu corporation and Japan Petroleum Exploration Company (JAPEX) signed the Memorandum of Understanding to jointly undertake a scoping study on LNG/CNG facilities construction near Vladivostok. The scoping study results were addressed at the fifth JCC meeting in Saint Petersburg in July 2010. 
The Agreement of Cooperation in preparation of a joint feasibility study on the options for natural gas utilization near Vladivostok as well as for natural gas and gas chemicals transportation from the Vladivostok region and their sales among potential customers in Asia-Pacific countries is signed to develop the Memorandum of Understanding with due consideration of the feasibility study results.
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PROSAFE : Options exercised by BP Norge

BP Norge AS has exercised two three-month options for the continued use of the MSV Regalia and thereafter Safe Scandinavia at the Valhall offshore facility in the Norwegian sector of the North Sea.
The first three months commencing in July 2011 using the MSV Regalia will be in direct continuation of the existing firm period. The Safe Scandinavia will complete the remaining three months commencing October 2011, consecutively after the MSV Regalia. The value of the exercised options is around USD 44.9 million.
 In addition, Prosafe has granted an additional two-month option commencing January 2012 if exercised.
Source: Press release

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NWest Energy extends exploration licenses offshore western newfoundland

NWest Energy Corp. announces that the Company has elected to extend Period I of each of offshore Exploration Licenses 1097 and 1098 to January 15, 2012 by posting a drilling deposit in the amount of $250,000 for each license with the Canada-Newfoundland and Labrador Offshore Petroleum Board. Failure to drill or spud a well before the expiry date of Period I of a license will result in the license reverting to the Crown and forfeiture of the drilling deposit for the license. The Licence extension allows the Company to keep its large acreage position (1.6 million acres) intact to further pursue potential partners and evaluate other potential unconventional plays that may emerge in western Newfoundland. The Company also owns the two contiguous Exploration Licences 1103 and 1104 which are in good standing until January 15, 2012. All of the licences are eligible for Period II of up to an additional 4 years for those licences upon which a well is drilled. These wells may consist of onshore to offshore drilling to test near shore targets. 
Nalcor Energy has announced that it has encountered natural gas in the first two wells of a three well onshore program at Parsons Pond. The northern portion of the NWest lands are immediately adjacent to the Parsons Pond area. Also, Shoal Point Energy Ltd. has announced a drilling program for an unconventional oil shale play in the Port au Port area in rocks similar to those contained in the shallow near shore portions of the NWest lands. It may be possible to exploit these shales on NWest lands from drilling sites onshore. An evaluation of this unconventional play is underway.
The Company's lands cover a portion of the offshore Anticosti Basin adjacent to the west coast of Newfoundland and contain a prospective sequence of Cambrian-Ordovician platform rocks overlain by an untested foreland basin. The exposed onshore stratigraphy contains mature oil source rocks, (Green Point shale with up to 10% total organic carbon) including numerous oil and gas surface seeps at Parsons Pond and a light oil discovery onshore at Port au Port. Several seismically defined leads and prospects exist on Company lands. A National Instrument 51-101 compliant Resource Assessment Report completed by Sproule Associates Limited concluded that "the 11 most significant geophysical anomalies herein considered as forming the initial exploratory drilling phase of NWest's ongoing program may have an undiscovered in place resource in the order of 3.8 billion barrels."
The Company continues to solicit partners to capitalize on this light oil potential. 
Source: Press release
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Farstad Shipping signs PSV charters with ConocoPhillips

Norwegian company Farstad Shipping ASA said today that two of its platform supply vessels (PSVs) will operate in the North Sea for ConocoPhillips Skandinavia AS, part of US oil firm ConocoPhillips.
The contracts were signed on market terms for similar vessels and charter periods. However, the parties agreed not to disclose the commercial terms.
PSV Far Symphony, with a capacity of 4,929 dead weight tonnes (dwt), has won a charter contract for a firm period of six years, starting in April 2011.
ConocoPhillips also contracted PSV Far Server, with a capacity of 4,000 dwt, for a year, with start-up in February 2011.
Both deals includes additional option periods.
Source: Press release

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Pazflor FPSO to sail to Total operated Angola block

The newbuild Pazflor floating production, storage offloading vessel is expected to sail away this month for Total-operated Block 17 in Angola from South Korea this week.The FPSO has processing capacity for 200,000 barrels per day of oil and 150 million cubic feet per day of natural gas and storage capacity of 1.9 million barrels.It will be installed in Total's Pazflor field in Angola. First oil is scheduled to flow as early as this September.DSME built the FPSO for $2.3 billion. Total has contracted with it to build another production floater at $1.8 billion for the Clov field in Angola.
Source: One India Money
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Statoil announces Natural gas is fit to serve Europe’s energy future

“Natural gas is key to solving Europe’s energy challenges going forward, delivering on cost competiveness, security of supply and the climate challenge,” says Rune Bjørnson, Statoil’ senior vice president for Natural gas.
Today, Monday 17 January, Statoil kicks off a marketing campaign arguing for natural gas to be part of Europe’s energy mix for the long term. 
It also marks that Statoil has been a reliable gas supplier to Europe for over 30 years based on its production from the Norwegian Continental Shelf.
“We are making the case for natural gas and pointing out that this energy source is a particular attractive option in the power segment, being cost competitive, relying on proven technology and having the lowest CO2 footprint compared to other fossil fuels,” says Bjørnson.
The world, including Europe, stands to tackle the challenge of meeting growing energy demand while at the same reducing the CO2-emission.
“Our contribution is to focus on an energy source we deem as an obvious and cost-efficient solution that can make a large contribution in meeting both the issue of energy supply and reducing CO2 emissions.”
“In our view natural gas should have a key role to play in EU’s long term energy mix as it is an affordable, abundant and a low carbon fossil fuel,” Bjørnson concludes. 
Source: Press release
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UNX Energy Signs 3D Seismic Contract With Petroleum Geo-Services

UNX Energy Corp., an emerging oil and gas company with offshore interests in the Republic of Namibia, has signed a 3D seismic contract with Petroleum Geo-Services. UNX plans to acquire approximately 1,125 km(2) of 3D seismic on the 90%-owned Exploration Licence 2815, consisting of Blocks 2815, 2816 and 2916, offshore Namibia. The program will target various features on the  blocks, and is expected to commence in mid-February, 2011. The seismic program will be funded from proceeds raised in July and November of 2010.
"The addition of this high-quality 3D seismic data to our existing scientific information will provide further clarity on the size and extent of the resources on our licences in offshore Namibia," said Mr. Gabriel Ollivier, President and CEO of UNX Energy. "The 3D seismic data will enhance scientific detail and add to our growing inventory of drilling prospects. As part of our 2011 work program, the various seismic surveys that will be conducted on our blocks will focus on select areas of our acreage, updating existing resource estimates and providing additional independent resource estimates on the blocks. The seismic will also contribute to a data room and inventory of drill-ready locations for companies interested in farm-in opportunities. At approximately two times the minimum required work commitment of 550 km(2), this 3D seismic program exceeds UNX's required work commitments for the Exploration Licence."
Source: Press release

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P&O Maritime Services Announces JV with Bangor University Prince Madog Research Vessel

P&O Maritime Services has acquired a 50% shareholding in a UK incorporated joint venture with the School of Ocean Sciences at Bangor University.
Through this venture, known as P&O Maritime Ocean Sciences (POMOS), P&O Maritime Services has joint ownership of the Research Vessel Prince Madog and will charter the vessel to the University, Government and Industry.
[Read more]
Source: Offshore Energy Today
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SOCAR president receives delegates of Statoil and Total E & P

President of the State Oil Company of the Azerbaijan Republic (SOCAR) Rovnag Abdullayev  received a delegation of Norwegian Statoil headed by Executive Vice President of Statoil on natural gas Rune Bjornnson, the company reported.
Abdullayev noted the important role of foreign partners, including Statoil, in the successes achieved in the oil and gas sector in recent years.
[Read more]
Source: Trend News Agency 
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Recovery in global oil demand spurs Essar Q3 profits

Riding on back of high refining margins, Essar Oil Ltd on Monday reported a net profit of Rs 273 crore in the quarter ended December 31, 2010 as against a loss of Rs 266 crore in a year ago period. 
The Mumbai-based firm earned USD 7.21 on refining of every barrel of crude oil in October-December quarter as against a gross refining margin (GRM) of USD 1.56 per barrel in the year ago period, Essar said in a statement here. 
[Read more]
Source: The Business Times
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SHIP EQUIP SIGNS WITH VARADA MARINE FOR WHOLE FLEET

Ship Equip and Varada Marine has signed a contract to install SEVSAT on their whole fleet off Offshore Supply Vessels.  
Varada Marine who has its head office in Kristiansand, Norway has announced plans to become “one of the largest offshore support vessel companies in the world”, and has under way an extensive new building program at ABG Shipyard Ltd in India. Deliveries off the SEVSAT system will commence in step with the new building program and the first system has already been delivered to the yard.
“We are very happy that Varada Marine has chosen SEVSAT from Ship Equip for their entire fleet” CSO Gilles A. Gillesen says in a comment. “It confirms what we have worked hard to establish, that Ship Equip is able to handle large fleets of vessels, and this seems to be established in the market too.”
 Sales Manager Sindre Alnes who negotiated the contract says that “Varada Marine will have a worldwide connection plan based on the Ku-band SEVSAT product with initially 128Kbps/128Kbps speeds and 4 telephone lines, including a prepaid Crew Calling setup on selected lines”
 “Ship Equip was chosen after a thorough evaluation of price and coverage says Technical Director and COO Kjell Eivind Karlsen. In particular good coverage in Brazil was a requirement that was of great importance  along with of course otherwise a well-established worldwide coverage and service organization.
Source: Press release
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Statoil sees Snoehvit at full capacity in days

Norway's Statoil said on Monday the Snoehvit gas field in the Barents Sea and its onshore LNG processing facility were back in operation after almost a month of downtime for repairs.
"Snoehvit is back in production and it's ramping up," said Statioil spokeaman Ola Anders Skauby. "It hasn't reached full production yet but is expected to do so in a couple of days."
[Read more]
Source: Reuters
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Maridive downgraded on delay of pipe barge

Shares in Maridive and Oil Services took a dip as delays in the delivery of its new pipe-laying barge are expected to cut into the company's profits.
EFG-Hermes cut its recommendation for the Egyptian oil services company to "neutral" from "buy". Maridive shares, which are denominated in US dollars on the Egyptian Exchange, retreated 1.8 per cent to US$3.66. The price has fallen almost 3 per cent in the past three sessions.
[Read more]
Source: The National 
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Prosafe rig utilisation rate drops to 61% in Q4 2010

Oslo-listed rig operator Prosafe SE said today that its rig utilisation rate dropped to 61% in the fourth quarter of 2010 from 84% in the corresponding period of 2009.
The rig MSV Regalia operated for British oil major BP plc on the Valhall offshore facility in the Norwegian sector of the North Sea until 23 November 2010. It was replaced by the rig Safe Scandinavia, which was previously chartered by oil major Statoil ASA in the country until the end of October 2010. Before replacing MSV Regalia, Safe Scandinavia adjusted the gangway to correspond to the landing platform height at Valhall.
The vessels Safe Concordia, Safe Astoria, Safe Bristolia and Safe Caledonia were idle in the fourth quarter.
The rigs Safe Scandinavia, MSV Regalia, Safe Bristolia and Safe Caledonia have carried out parts of their annual maintenance work during October-December 2010.
The units Safe Esbjerg, Safe Lancia, Jasminia, Safe Hibernia, Safe Britannia and Safe Regency were fully utilised in the reporting period.
In 2010, Prosafe's rig utilisation rate was 75% compared to 86% a year ago.
Source: Press release

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