Samsung C&T wins S$200 mln order to build Singapore's 3rd LNG tank

South Korea's Samsung C&T Corporation has won a S$200 million contract to build a third storage tank at Singapore's upcoming liquefied natural gas (LNG) terminal, the company said on Friday.
It won the contract from Singapore LNG Corporation (SLNG), and expects to complete the project by early 2014. The additional tank will allow the terminal to handle up to 6 million tonnes per year (tpy).
[Read more]
Source: Reuters

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S. Korean Navy frees hijacked cargo ship, kills Somali pirates

 South Korean naval special forces successfully rescued 21 seamen and their South Korean-operated cargo ship that was hijacked last week by Somali pirates in an operation that left eight Somali pirates dead, Seoul's military officials said Friday.

   "Our special forces stormed the hijacked Samho Jewelry earlier today and freed all hostages," said Col. Lee Bung-woo, a spokesman at South Korea's Joint Chiefs of Staff.

   "During the operation, our forces killed some Somali pirates and all of the hostages were confirmed alive," Lee told reporters.

   The South Korean skipper of the ship suffered a gunshot wound to his stomach during the operation, but his condition is not life-threatening, Lee said.

   The unprecedented rescue operation by the South Korean Navy SEAL forces, which had been top secret since it started early this week, ended a seven-day ordeal for the crew of the 11,500-ton Samho Jewelry, which was hijacked last Saturday in the Arabian Sea when it was en route to Sri Lanka from the United Arab Emirates.

   The rescue operation took place in high seas about 1,300 kilometers off northeast Somalia, Lee said.

   Friday's rescue operation came after a brief gun battle on Tuesday when the South Korean destroyer Choi Young, pursuing the Samho Jewelry, detected Somali pirates who apparently got off the vessel to hijack a Mongolian vessel nearby.

   The South Korean special forces aboard a fast-sailing navy boat and a Lynx helicopter were dispatched to rescue the Mongolian vessel, sparking the gun battle.

   Tuesday's firefight left several pirates missing, and they are believed to have been killed, but their bodies have not been found, the official said. Three South Korean soldiers suffered minor injuries and were sent to a hospital in Oman.

   "Three of our soldiers suffered light scratches on their bodies as they were fired upon by pirates on Tuesday," Lee said. "Our Lynx helicopter immediately returned fire and several pirates fell into the waters. We believe they are dead."

   Since Tuesday, a standoff between the South Korean destroyer and the Somali pirates had continued. An Omanese navy ship arrived at the scene of confrontation to support the rescue operation.

Source: Yonhap News

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South Korea rescues Samho Jewelry crew from pirates

South Korean navy commandos have stormed a ship which had been seized by pirates in the Arabian Sea.
All the crew of the South Korean-owned Samho Jewelry were rescued, said Col Lee Bung-woo, a spokesman for the Joint Chiefs of Staff.Col Lee said eight pirates had been killed during the operation.
South Korea is part of a multinational anti-piracy patrol in the area and had despatched a warship after the vessel was seized on Saturday.
Source: BBC News

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RF hopes Belarus to follow gas contracts 2011, may offer support

Russia hopes the gas contracts with Belarus for 2011 will be observed, but it is prepared to offer state support, Russia’s Prime Minister Vladimir Putin said on Wednesday.
“The Russian side has worded its position once again: the gas will be supplied under the current agreement,” Putin said. “We are ready to start negotiations on the terms of supplies in 2012 and later.”
[Read more]
Source: Itar-Tass News 

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Mexican Oil Chief Expects 2011 Production Increase

Walking into Jose Suarez Coppel's office overlooking Mexico City, one sees all the trappings of an oil CEO: glass bottles filled with oil samples, financial screens flashing the price of oil, production charts for oil fields.
And then there's the bright red phone behind his desk—a direct line to the president of Mexico. Suarez is the head of Petroleos Mexicanos—or Pemex—the country's state-owned oil monopoly.
[Read more]
Source: CNBC

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China North East Petroleum Holdings Ltd. Announces Purchase of Oil Field

China North East Petroleum Holdings Ltd(NEP). announced the purchase of an exploration and production company with the drilling rights on oil properties in Inner Mongolia. The deal is expected to close during the first quarter of 2011.
China North East Petroleum Holdings Ltd. will purchase Sunite Right Banner Shengyuan Oil and Gas Technology Development Co., Ltd. for a total of $43.4 million in a combination of stock and cash. The company will pay $10.6 million in cash at closing and issue 5.8 million shares of restricted common stock in exchange for a 100% interest in the company.
[Read more]
Source: Internatinal Business Times

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Samsung in talks for 4,600TEU's

Korea's Samsung Heavy Industries is progressing new order talks for four 4,600-teu boxships with Hanjin Shipping.
[Read More]
Source: Asiasis

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Cameron Receives US$90 Million Order From Statoil

Cameron has received a contract valued at approximately $90 million from Statoil for the provision of high temperature, high pressure (HPHT) surface wellhead and Christmas trees for the Norwegian Gudrun platform with further options for the Valemon and Brynhild platform developments.
The seven-year agreement also includes aftermarket services with the option for two-year extensions continuing through the lifetime of the field.
Source: Press release

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Xun Energy to Participate in Oil and Natural Gas Drilling Program

Xun Energy, Inc. announces the Company will participate in a planned 15 well drilling program with Global Energy Acquisitions, LLC and its affiliates ("GEA"). GEA is a Florida limited liability company. GEA intends to drill 15 oil and gas wells on a 416 acre parcel located in Adair County, Kentucky. Each well will be drilled to a depth of up to 2,000 feet in order to reach the Murfreesboro or Knox Formations. The targeted date for the completion of the $2,550,000 funding requirement has been set to February 28, 2011.
Upon the success of the drilling program, GEA will pay to XNRG up to 12.5% gross royalty on revenues generated from the drilling program. XNRG's participation will be based upon XNRG's investment in GEA's 15 well drilling program. XNRG's participation interest has not yet been established.
Peter Matousek, the Company's president, commented, "The agreement with GEA provides the Company with an opportunity to participate in an oil and gas program which would provide the Company with steady cash flow." 
Source: Press release

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Minister to decide within weeks on final section of Corrib gas pipeline

Minister for Energy Eamon Ryan is expected to issue a decision in “the coming weeks” on Shell E&P Ireland’s application to construct the last section of the Corrib gas pipeline. But it could still be two years or more before the gas starts coming ashore.
Mr Ryan’s decision will follow An Bord Pleanála’s landmark ruling yesterday that approved the developer’s revised plans for the onshore link.
[Read more]

Source: Irish Times

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Gassco Says Kollsnes Gas Plant Starting, Will Export 98 MCM

Gassco AS, Norway’s natural-gas pipeline operator, said its preparing to start its Kollsnes gas processing plant after an unplanned halt earlier today.
Kollsnes is estimated to export 98 million cubic meters of gas, Lisbet Kallevik, a Bygnes-based company spokeswoman, said in an e-mailed statement today. The plant has capacity of 143 million.
Source: Bloomberg
Publish Post

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Wind-farm mother ship concept launched

Anglo-Dutch naval architect company Offshore Ship Designers has launched a new offshore wind farm maintenance (WFM) vessel concept.
It aims to improve the uptime of deepwater wind turbines and reduce maintenance costs and carbon emissions while offering a solution to the logistics problem of carrying out simultaneous multiple wind turbine maintenance.
[Read More]
Source: Motorship

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Pertamina 2011 Profit May Rise on Higher Crude Price

PT Pertamina’s net income may gain 14 percent this year from a year earlier as higher crude price would boost revenue, said Djaelani Sutomo, marketing director at the Indonesia’s state oil and gas company.
Profit may increase to 17.7 trillion rupiah ($1.9 billion) from 15.5 trillion rupiah last year, Sutomo told reporters in Jakarta today. 
[Read more]
Source: Bloomberg

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Viking Moorings, Seaweld Engineering partnership provides mooring for Kosmos at Teak offshore Ghana

Viking Moorings continues the expansion of its global presence through an exclusive international agency agreement with Seaweld Engineering of Ghana.
The partnership will see Viking Moorings have a strategic, operational presence along the entire coast of West Africa from Senegal to Congo, with a particular focus on offshore mooring operations in the oil rich Gulf of Guinea. The result for West African operators will be reduced transportation costs, a fully resourced and highly skilled local mooring solution, and access to Viking Mooring’s entire portfolio of mooring equipment.
Furthermore, the partnership with Seaweld is already seeing a number of important developments, including the establishment of Seaweld Viking Global Link Nigeria Ltd. as a separate trading entity in Nigeria.
In December 2010, Viking Moorings conducted the first offshore mooring operation under the new agreement, providing equipment and supervising the installation of a single taut leg pre-laid mooring system on behalf of Kosmos Energy for the drilling rig Atwood Hunter at the Teak prospect, offshore Ghana. The mooring system has been designed to allow the rig to skid 400 meters and was connected to the drilling rig in late December. All mooring equipment was mobilised from Seaweld’s Takoradi base with onshore logistics and equipment management provided by Seaweld.
“Today’s partnership with Seaweld will ensure that Viking Moorings is the pre-eminent provider of total mooring solutions throughout West Africa and specifically for areas of high exploration and development activity , such as the Gulf of Guinea”, said Duncan Cuthill, UK Country Manager from Viking Moorings.
“With African operators and rig contractors opening up production in ever deeper waters and their continued need to manage costs and move exploration and drilling rigs quickly and cost effectively, we will ensure that Viking Moorings is the ideal strategic partner, providing a responsive, safe and total mooring solution for West Africa.”
Alfred Fafali Adagbedu, Chief Executive Officer of Seaweld Engineering, continued:
“We are delighted to be partnering with a global industry leader, such as Viking Moorings. Our local knowledge and highly skilled personnel, combined with Viking’s industry reach, experience and broad-based equipment inventory, is the perfect match.”
The following territories will be covered by the agreement: Benin, Cameroon, Congo (excluding Cabinda), Equatorial Guinea, the Gambia, Gabon, Ghana, Guinea-Bissau, Guinea, Ivory Coast, Liberia, Nigeria, Senegal, Sierra Leone, and Togo.
The relationship between Viking Moorings and Seaweld began in 2008 when the two companies cooperated in supporting Tullow Oil plc during a deepwater exploration programme, offshore Ghana.
Today, 400 tonnes of mooring equipment is available in Seaweld’s facility in Takoradi, Ghana, including a complete modular taut leg pre-lay mooring system suitable for water depths ranging from 500 meters to 1600 meters. In addition to the renting of mooring equipment, Seaweld will also act as agents for the sale of mooring equipment components, slings and wire rope, including non-rotating wire rope of up to 175mm diameter.
West Africa and the Gulf of Guinea are one of the world’s most significant oil & gas producing areas with significant offshore exploration activities. According to AfriDev Capital Partners, more than US$20bn in development will occur in the Gulf of Guinea over the next decade with a significant amount occurring in deep waters offshore.
Established in 1979, Seaweld Engineering provides a flexible and well-resourced inspection, repair and maintenance service to the oil, gas and petrochemical industries. The company has over 20 years of experience in the fast developing oil and gas production fields of West Africa.
Kosmos Energy is a privately held international oil exploration and production company with a focus in West Africa. Kosmos led the discovery of Ghana’s Jubilee oil field in 2007, one of the largest oil discoveries worldwide and the biggest find offshore West Africa during the last decade.
Viking Moorings provides total mooring solutions to operators and drilling contractors, consisting of initial mooring design and analysis, rig move procedures, risk assessments and safety approvals, equipment rental, installation and support, chain inspection, spooling services and logistics services, marine sales, repair and maintenance.
Source: Press release

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Oxy joins ADNOC in $10B development of Shah natural gas field in the UAE

Occidental Petroleum Corporation has been selected by the Government of Abu Dhabi to participate in the development of Abu Dhabi’s Shah gas field, one of the largest gas fields in the Middle East. Under the terms of the new agreement in principle, Oxy will hold a 40-percent participating interest in a 30-year contract for the massive Shah gas field. The Abu Dhabi National Oil Company (ADNOC) holds the remaining 60-percent interest. 
"We are honored that the Abu Dhabi government has chosen Oxy to participate in this major gas project,” said Dr. Ray R. Irani, Occidental's Chairman and Chief Executive Officer. “Production at the Shah Field will be an important future resource to fill the rapidly expanding regional demand for gas.” 
"This is another important step in the implementation of our growth strategy and in our relationship with the Emirate of Abu Dhabi. The development of this field under the agreement provides an exciting opportunity to create value for the people of Abu Dhabi and for our stockholders,” said Dr. Irani. 
The Shah gas project involves development of high-sulfur content reservoirs within the Shah field, located onshore approximately 180 km (110 miles) southwest of the city of Abu Dhabi. The project will involve development of several gas gathering systems, construction of new gas and liquid pipelines and processing trains to process 1 billion cubic feet of high-sulfur content gas. This is anticipated to produce approximately 500 million cubic feet per day of network gas and a significant amount of condensate and natural gas liquids. 
ADNOC is already in the process of developing the field with the majority of project engineering procurement and construction contracts already awarded. Production from the field is scheduled to begin in 2014. 
Capital expenditures are estimated to be in the range of $10 billion for the project with Oxy’s share proportional to its ownership. 
Oxy’s international assets account for approximately 45 percent of the company’s worldwide production and approximately 55 percent is produced from the United States.
Source: Press release

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Shipowners Increase Payments to Get Their Vessels to Atlantic

Shipowners facing a lack of business in the Pacific Ocean covered more of their customers’ costs to get their vessels to the Atlantic.
Costs on the C11 journey for shipments to Europe from Asia fell to minus $1,046 a day today from $958 on Jan. 14,  according to the Baltic Exchange in London. The rate went negative on Jan. 13, a first for any dry-bulk journey reported by the exchange which publishes daily assessments for more than 50 routes. Contributing to charter costs is more cost-effective for owners than sailing ships empty.
[Read More]
Source: Bloomberg

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Commander regrets not freeing ship's crew

The navy's anti-piracy mission in the Gulf of Aden was only partly successful after it failed to rescue the Thai crew members of a ship held hostage by Somali pirates, says the commander of the counter-piracy task unit.
[Read More]
Source: Bangkok Pos

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Wintershall wins ten new licenses in Norway

Company secures highest number of production licenses on the Norwegian Shelf after Statoil Stavanger/Kassel.
Wintershall is continuing to steadily expand its activities in Norway: the subsidiary Wintershall Norge ASA has just been awarded ten new production licenses from the Norwegian energy ministry as part of the APA 2010 licensing round. Wintershall will be the operator in six of the licenses. This means that Wintershall received the most licenses out of the 41 competitors after the majority state-owned energy company Statoil. 50 new production licenses on the Norwegian continental shelf were awarded overall.
“Our success in the current APA licensing round is confirmation that the long-term strategy which Wintershall is pursuing in Norway is working. The expertise in producing oil and gas in the North Sea which we have cultivated over the last 45 years is at the heart of our outstanding exploration success in Norway. We now intend to build on this success with the new licenses,” Bernd Schrimpf, Managing Director at Wintershall Norge ASA, explained. The company discovered six new oil fields in the North Sea last year alone. Wintershall is investing around 50 percent of its global exploration budget in Norway.
The new licenses cover activities in the Norwegian sector of the North Sea (6), the Norwegian Sea (3) and the Barents Sea (1). "We believe the greatest potential lies in expanding our key areas. The allocation of seven new licenses in the area round our discoveries Maria, Grosbeak and Beta is therefore particularly interesting for Wintershall," Schrimpf explained. Wintershall will take over as operator with a share of 50 percent in the license areas PL 575 and PL 370 B in the Norwegian North Sea off the coast of central Norway. The license areas PL 577 (Norwegian North Sea) and PL 589 (Norwegian Sea) were awarded to Wintershall as operator with a share of 40% in each. In addition, Wintershall has been granted the operatorship in license PL 378 B (45 %) in the Norwegian North Sea as well as in license PL 475 CS (25%) in the Norwegian Sea. Bernd Schrimpf announced that the company would start working on the new areas promptly: "We will soon begin with the seismic exploration of the fields and evaluate any existing data at the same time."
With around 40 licenses, Wintershall is one of the largest license holders in Norway - in almost half of these licenses it holds the operatorship. The company is aiming for a production level in Norway of around 50,000 BOE per day by 2015.Wintershall coordinates its activities in the Northern North Sea from Stavanger, the heart of Norway's oil and gas industry.
Source: Press release

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Germany’s Asian Gate Threatened by River Elbe: Freight Markets

Germany’s largest container port may lose the world’s biggest freight ships to Belgium and Holland unless it can push through plans to deepen the River Elbe.
Environmental groups and a neighboring state opposed to the 385 million-euro ($516 million) project have delayed it for three years, preventing the biggest container ships from entering the northern port of Hamburg at full capacity. Shares of Hamburger Hafen und Logistik AG, which handles two thirds of the containers that go through the shipping hub, have dropped 42 percent since 2007.
[Read More]
Source: Bloomberg

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Bangladesh: Stop scrapping ships

The High Court yesterday issued a suo moto rule directing the government to stop all kinds of scrapping of ships in the country until further order.
The HC order came against the backdrop of another explosion on a ship at a ship-breaking yard in Sitakunda that killed four workers on Tuesday.
[Read More]
Source: The Daily Sta

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Kosmos says corruption investigation into MODEC may increase costs at Ghana’s Jubilee field

Texas-based closely held oil company, Kosmos Energy says an investigation of MODEC, for alleged corruption could lead to extra cost at the Jubilee oil field.
A report by the Dow Jones news service citing Kosmos Energy’s initial public offering (IPO) prospectus says the probe may hypothetically trigger an interruption of production at Ghana’s largest oil field. Commercial oil production from the field started December 15, 2010. It however, adds that interruption of production is unlikely.
[Read more]
Source: Ghana Business News

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Somali pirates seize Mongolian-flagged bulk carrier

Somali pirates have seized a Mongolian-flagged bulk carrier off the coast of Oman, the European Union Naval Force for Somalia (EU Navfor) said on Thursday.
[Read More]
Source: Reuters

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West Delta Deep Marine Phase 7 Enters Operations

BG Egypt today announced the start of incremental gas production on 19 January 2011 through the first part of Phase 7 of the West Delta Deep Marine (WDDM) Concession (BG Group 50%, PETRONAS 50%). This represents another successful milestone in the phased development of WDDM.
Managed by the Joint Operating Company (JOC) Burullus Gas Company S.A.E. (EGPC 50%, BG Group 25%, PETRONAS 25%), Phase 7 comprises a new 68 km, 36 inch offshore pipeline with associated onshore gas receiving facilities, a slug-catcher, adjacent to the two existing WDDM pipelines, and five new compressors. This latest phase is designed to help maintain plateau gas production from the Concession. The initial incremental production is through the new pipeline, with the compression plant expected to start-up later this year.
Three innovative offshore subsea hot-taps with duplex stainless steel were installed to tie the new pipeline into the existing pipeline. These operations were delivered without shutting down the existing pipeline, and as such did not interfere with production. The project was executed safely in an area with existing onshore and offshore activities.
Commenting on the project, BG Egypt President Arshad Sufi said: "We are very pleased with the latest field development phase, which has been delivered under budget and ahead of schedule. The delivery of the first part of Phase 7 marks yet another success realised through the commitment of
BG Egypt and its partners to the sustained development of the Concessions to ensure continued gas supply."
EGPC affiliate companies performed key roles across the project. ENPPI were responsible for the design and procurement of onshore facilities; Petrojet performed the construction work, in addition to the supply and fabrication of the slug-catcher; Petroleum Marine Services (PMS) executed the offshore shallow water pipe lay and beach approach; Allseas carried out the deepwater pipe lay; and, Technip executed the hot-taps tie-in and the commissioning of the offshore pipeline. During peak activity, the project generated employment for 1,500 people.
Burullus Gas Company S.A.E. managed the work with minimal environmental impact allowing continuous beach access to local fishermen, and restoring it to its original status immediately after work was concluded.
Source: Press release

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Somali pirates closer to India; premiums up

Somalian pirates appear to have expanded their reach to Indian maritime waters and insurers are responding by increasing premiums, resulting in higher costs for shipping firms. On 9 January, Somalian pirates hijacked Indian ship MSV Al Musa near New Mangalore port, according to regulator Directorate General of Shipping (DGS).
[Read More]
Source: livemint

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Fleet supply to overshadow dry bulk sector in 2011

An oversupply of ships will continue to weigh on overall prospects for the dry bulk industry in 2011 despite an expected pick-up in rates for smaller vessels later this year, ship industry officials said on Thursday.
The dry freight market has been pressured by growing deliveries ordered before the economic turmoil of 2008 with the pace of ships hitting the water set to increase this year.
[Read More]
Source: Reuters

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Feature: The dry bulk market and my part in its downfall

The dry bulk paper and physical market freight markets have been busy since the turn of the New Year. Not, sadly with fixtures, but with one bad news story after another concerning tonnage oversupply, doom-laden freight rate forecasts and the additional short term impact of the floods in Australia.
[Read More]
Source: Bimco

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BHP Billiton Approves Revised Costs For Kipper And Turrum Petroleum Projects

BHP Billiton today announced the approval of increased capital expenditure for the Esso Australia operated Kipper and Turrum projects in the Gippsland Basin, offshore Victoria.
Kipper's capital expenditure has increased to US$900 million (BHP Billiton share) and the facilities are now forecast to be completed in calendar year 2012. Mercury was encountered in the reservoir during development drilling and mercury mitigation will be managed as a separate project. The timing of first production is subject to resolution of the mercury related issues.
Turrum's expenditure has been adjusted to US$1,350 million (BHP Billiton share) and is now forecast to begin production in calendar year 2013.
Additional design and fabrication of key structural components has delayed installation and increased the offshore hook up campaign resulting in the cost and schedule adjustments.
The Kipper field has confirmed resources of approximately 620 billion cubic feet of recoverable gas and 30 million barrels of oil and gas liquids. Turrum is expected to recover approximately 1 trillion cubic feet of natural gas and 110 million barrels of oil and gas liquids, on a 100 per cent basis.
The Kipper Unit Joint Venture participants are Esso Australia Resources Pty Ltd (32.5 per cent and operator); BHP Billiton (32.5 per cent); and Santos (35.0 per cent).
Turrum is part of the Gippsland Basin Joint Venture in which BHP Billiton and Esso Australia Resources Pty Ltd (operator), each have a 50 per cent interest.
Source: Press release

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Dry-Bulk Shipping Falls to Two-Year Low on Lack of Coal Cargoes

The Baltic Dry Index, a measure of commodity-shipping costs, fell to the lowest level in almost two years after floods in Australia curbed coal shipments. The index fell 18 points, or 1.3 percent, to 1,393 points, according to data from the Baltic Exchange in London.
[Read More]
Source: Bloomberg

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Aker Drilling orders two ultra-deepwater drillships for $1.2B from Daewoo Shipbuilding in South Korea

Aker Drilling has signed a Letter of Intent (LOI) with Daewoo Shipbuilding & Marine Engineering Co. Ltd (DSME) for the delivery of two advanced ultra-deepwater drillships, and the option for delivery of two additional drillships. The price per drillship, including spare parts, drilling equipment, construction follow up, and activities up to "ready to drill" is estimated at US $600 million.
“Aker Drilling has a first class operational organization and two harsh-environment rigs equipped for deepwater drilling with stable operations on the Norwegian Continental Shelf. The LOI for the two drillships provides us with the opportunity to participate in interesting growth areas for drilling operations in ultra-deepwaters in areas such as Brazil, the Gulf of Mexico and Western Africa. The company has already commenced the work to establish an experienced construction follow-up team at the yard and an international, competent operational organization,” said president and CEO Øyvind Eriksen in Aker ASA. 
Letter of Intent with DSME
Aker Drilling Offshore Services Public Ltd in Cyprus, a wholly owned subsidiary of Aker Drilling ASA, has signed the LOI with DSME in South Korea for the delivery of the two drillships in the fourth quarter of 2013. 25 percent of the contract value is due at the signing of the final contract agreement at the end of February 2011, and 75 percent will be paid on delivery.
The options with DSME give Aker Drilling the right to have the third and fourth drillships delivered in the second quarter of 2014 and the first quarter of 2015 respectively.
The ships can drill wells up to 12,000 meters deep, at water depths of up to 3,600 meters.
Ultra-deepwater
Strong growth in demand Aker Drilling currently has 440 employees, and the company has a position in the market for drilling operations in areas with deepwater and harsh environments. The deepwater market is the fastest growing of all offshore markets, but due to technological, operational and experience issues, it also has the highest barriers to entry for new competitors.
Half of the global oil and gas discoveries are made in ultra-deepwaters, according to Infield. In 2015, 13 percent of the offshore production will come from ultra-deep oil fields, compared to 3.5 percent in 2010. The rig market participants agree that future exploration will increase in deepwaters and harsh environments. In the coming years, this will lead to an increase in demand for advanced drilling units with well-known technologies.
Efficient operations and solid order backlog
The company’s two rigs, Aker Barents and Aker Spitsbergen, currently generate a significant cash flow from stable operations. In operation, the two rigs have an EBITDA margin of approximately 60 per cent. The rigs are on long term leases, and their total order backlog at the end of 2010 was approximately US $1.2 billion.
The two rigs have delivered a positive development with stable and safe operations throughout 2010 and the beginning of 2011. In the fourth quarter of 2010, Aker Barents and Aker Spitsbergen had a total paid uptime of more than 95 percent.
Source: Press release

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Shipowners pondering on placing more new building orders or adopting “wait-and-see” approach

With the Dry Bulk Index (BDI) losing more than 20% of its value from the start of 2011, it only seems reasonable, that the once bullish stance that many ship owners had for the dry bulk market’s prospects at least from 2012 onwards, seems to be losing faithful supporters. The industry’s benchmark closed yesterday further down by 1.28% to just 1,393 points and is now at the lowest in two years.
[Read More]
Source: Hellenic Shipping News

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French DCNS unveils concept for submerged nuclear power plant

France's naval construction firm DCNS has agreed with Areva, EDF and the CEA R&D organization on a joint study of DCNS' concept for a submerged nuclear power plant unit that its promoters say could provide energy for millions of people in coastal locations worldwide.
[Read More]
Source: platts

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Atwood Oceanics Announces Exercise of Option to Construct Additional Jack-Up Drilling Unit

ATWOOD OCEANICS, INC., a Houston-based international drilling contractor, announced today that on January 14, 2011, Atwood Oceanics Pacific Limited ("AOPL"), a wholly-owned subsidiary of Atwood Oceanics, Inc. (the "Company"), exercised the first of three options and executed a turnkey construction agreement to construct a third Pacific Class 400 jack-up drilling unit with PPL Shipyard PTE LTD ("PPL"). As with the October 5, 2010 announcement, this rig will have a rated water depth of 400 feet, accommodations for 150 personnel and significant offline handling features. The total cost, including project management, drilling and handling tools, spares and capitalized interest, will be approximately $190 million and is scheduled for delivery on June 30, 2013. Financing for the construction of this rig is expected to be provided from a combination of ongoing cash flows of AOPL and debt, as necessary, from AOPL's current senior credit facilities. The Company will consider whether any additional debt may be necessary in connection with fleet expansion.
Upon delivery, this rig will become the fourteenth mobile offshore drilling unit owned by the Company group. AOPL and PPL have remaining option agreements for up to two (2) additional Pacific Class 400 jack-up drilling units which require AOPL commitment by June 30, 2011 and December 31, 2011, respectively. No determination has been made at this time whether any of the two (2) remaining options will be exercised.
Rob Saltiel, Atwood President and CEO, commented, "Our decision to exercise this option reflects continued confidence in the Pacific Class 400 rig design and our satisfaction thus far with the construction progress of our first two rigs at the PPL shipyard. In addition, we believe that by committing early in the build cycle, Atwood has procured these three high-specification jack-ups at an attractive price."
Source: Press release

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Big wind turbine order is a breeze for the shipyard

BELFAST's Harland and Wolff shipyard has started work on a multi- million pound project assembling 30 massive wind turbines that will operate off the English coast.
[Read More]
Source: istockAnalyst.com

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Croatia Rejects Crown Investment Offer to Buy Shipyard

The Croatian government rejected an offer by Crown Investment of Germany, representing Austria’s A- Tec, to buy a shipyard in Rijeka on the Adriatic Sea coast, Croatian Economy Minister Djuro Popijac said today in Zagreb.
[Read More]
Source: Bloomberg

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Kleven to build MT 6009 L for Olympic

Olympic Shipping has entered into a contract with Myklebust Verft, part of the Kleven Maritime group, for the delivery of a MT 6009 L offshore support vessel.
The vessel is to be built at the yard Myklebust Verft in Gursken, Norway, with delivery set for September 2011. 
[Read more]
Source: Offshore Shipping Online

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Four STX Ships Named Best of 2010

STX Offshore and Shipbuilding announced on Wednesday three vessels and a drillship it built last year were named the best ships of 2010 by U.K. magazine Naval Architect and U.S. monthly Marine Log.
[Read More]
Source: Chosunilbo

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Shipping Haisheng orders 76000 tonnes crude oil carrier

It is reported that China Shipping Haisheng wholly controlled subsidiary, Shenzhen Sanding Oil Trading ordered a 76,000-ton crude oil carrier for CNY 384 million.
[Read More]
Source: Steel Guru

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Japex, M'bishi Kick Off Oil Output In Indonesia

An Indonesian energy company backed by Japan Petroleum Exploration Co. (1662) and Mitsubishi Corp. (8058) has begun churning out crude oil at a field off East Java.
Output has started at 6,000 barrels a day at the Pagerungan Utara oil field, which is located in the Kangean block.
Japex and Mitsubishi took 25% stakes in Indonesian energy company Energi Mega Pratama Inc. back in 2007. An Energi Mega subsidiary is in charge of operations at the Kangean block. It is operating one natural gas and one oil field in the block, with production at a midsize gas field due to begin next year.
Source: Nikkei.com

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China overtakes S Korea as world''s largest shipbuilder: Report

BEIJING: China has surpassed South Korea to become the world''s largest shipbuilder in 2010 in terms of shipbuilding capacity and new orders, media reports here have said.
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Source: The Economic Times

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Det norske reasonably pleased with awarded licenses

The results for the awards in predefined areas (APA) 2010 are now published by the government. 50 production licenses are offered to 39 companies. 22 companies are offered operatorships. In all, 41 companies applyed for production licenses on the Norwegian Continental Shelf.
Two types of licensing rounds are arranged on the NCS. Awards in predefined areas focuses on the mature parts of the shelf. The geology is known and the infrastructure is well developed. The second type is the ordinary licensing rounds, and is held every other year. These sets focus on the immature parts of the shelf. 
Det norske in APA2010 been offered stakes in eight licenses, three of these as operator.
Awards in the North Sea, Det norske's stakes in parentheses: PL494B (30%), PL554B (40%), PL567 (40%), PL568 (20%) and PL571 (40%). Operatorship is offered for PL573S (35%). Det norske is offered two operatorships in the Norwegian Sea, in PL468B (95%) and PL593 (60%).
Senior VP Exploration, Vidar Bergo Larsen is reasonably pleased with the awards.
-  Six of licenses are located in the North Sea. Three of the awards are additional acreage to the licenses we already have, including expansion of the Dovregubben area. 
The work programs for the licenses is one exploration well. This will be operated by Talisman. Det norske got a 20 percent stake in this license. The prospect to be drilled is located close the Vargfield. A discovery here can quickly be put into production
The work program for the other licenses are collection of new seismic data and geological and geophysical studies before a decision to drill an exploration well are made.
Source: Press release

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Tap increases its interest in WA-351-P

Tap Oil Limited has exercised its pre-emptive right to acquire an additional 20% interest in the highly prospective WA-351-P exploration permit in Western Australia’s Carnarvon Basin.
This unique opportunity for Tap to increase its interest in this strategic permit arose as a result of Tap’s right under the joint operating agreement to pre-empt Roc Oil (WA) Pty Limited’s sale of its 20% interest in WA-351-P to Woodside Energy as announced to the ASX on 20 December 2010.
Tap will acquire the additional participating interest from Roc Oil (WA) Pty Limited for a cash consideration of US$15.75 million, increasing Tap’s holding in the exploration permit from 25% up to 45%. BHP Billiton Petroleum (North West Shelf) Pty Ltd will retain a 55% interest and is the Operator. The acquisition by Tap is subject to relevant government approvals.
The acquisition and additional participating interest will be funded from existing cash reserves.
Tap’s Managing Director and Chief Executive Officer Troy Hayden said:
“We see WA-351-P as being one of three priority or core assets in our current portfolio, alongside Thailand and Ghana.  Thus, Roc Oil (WA) Pty Limited’s sale agreement with Woodside Energy Ltd provided us with a unique opportunity to exercise our pre-emptive right and improve the leverage in one of our most prospective projects.
WA-351-P offers significant leverage to large potential gas resources at a time when there is competition between several LNG players to find gas for their expansion plans. 
Moving to 45% provides Tap with a large enough stake in the project to have several options available in the near future, including the ability to farm down to an incoming party for a promoted interest in future drilling programs and still retain a material stake in the permit.”
Source: Press release

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Songa Mercur BOP problems cut China drilling campaign short

The Songa Mercur semisubmersible drilling rig is currently off-hire in China resulting from structural failure of the telescopic joint, causing an uncontrolled descent of the BOP and Marine riser a short distance to sea bed on January 16, 2011. The Songa Mercur rig was not drilling at the time of the incident, and the BOP is in safe distance from the well, which had already been plugged and secured.
Songa Offshore foresees that all required resources are readily available in area for a safe and effective recovery. The incident is currently under investigation, and further updates to the recovery process will be issued when details and facts are available.
The on-going well was near its final stages at time of incident, and the rig had been planned to be towed to Singapore area after well completion in preparation for upcoming and future contracts.
The Songa Mercur was working for Eni on a one-well contract offshore Chin.
Henceforth, Songa Mercur does not foresee any significant cost impact to budgets and/or projections resulting from the incident.
Source: Press release

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Statoil taps FMC for Gygrid subsea production equipment

FMC Technologies, Inc. has signed a contract with Statoil  for the manufacture and supply of subsea production equipment to support the Gygrid offshore development. The award has a value of approximately $54 million in revenue to FMC Technologies. 
Gygrid is a fast-track oil and gas field located in water depths of approximately 820 feet (250 meters) in the Norwegian sector of the North Sea. FMC's scope of supply includes the manufacture of two subsea production trees, one manifold and associated subsea and topside control systems. The equipment will be based on a standard subsea solution designed by FMC for Statoil. Deliveries are scheduled to commence in the third quarter of 2011. 
"Gygrid was discovered in 2009 and was assigned fast-track status by Statoil," said Tore Halvorsen, FMC's Senior Vice President of Global Subsea Production Systems. "It is the fourth fast-track project we've announced with Statoil since June of 2010 — joining Katla, Pan Pandora and Vigdis North-East — and we are pleased that Statoil continues to recognize our strengths and capabilities in supporting their tie-back and fast-track developments."
Source: Press release

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Roc Oil announces sale of WA-351-P, Carnarvon Basin, Australia

Roc Oil (WA) Pty Limited, a wholly owned subsidiary of ROC, announced on 20 December 2010 that it had agreed to sell its 20% interest in WA-351-P, offshore Carnarvon Basin, Western Australia, to Woodside Energy Ltd for US$15.75 million subject to working capital adjustments and normal industry terms and conditions, including the receipt of joint venture and relevant government approvals.
Tap (Shelfal) Pty Ltd (a wholly owned subsidiary of Tap Oil Limited), an existing joint venture party, gave notice on 18 January 2011 to Roc Oil (WA) Pty Limited of the exercise of its rights of pre-emption on the same terms and conditions as the sale to Woodside Energy Ltd.
Source: Press release

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Kongsberg Maritime and Vestfold University College sign R&D agreement

Kongsberg Maritime's simulation division and Vestfold University College have signed a framework agreement to explore activities and projects of joint interest in the area of research and development of maritime simulators from an innovation and human factor perspective.
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Source: Offshore Shipping Online

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SOCAR prepares for drilling new exploration well at Umid offshore field

The State Oil Company of Azerbaijan is working to drill new exploration well at the Umid offshore field.

According to a statement in the company, the projected depth of the new well will make up 6,500 meters. The drilling is to complete in late 2011-early 2012.

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Source: News.az.com

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Panel hears from public on offshore energy options

A panel exploring North Carolina's energy options asked for the community to voice its concerns about drilling for oil or natural gas off of the coast on Wednesday night.
The Scientific Advisory Panel on Offshore Energy is tasked with reporting back to Governor Bev Perdue with recommendations on offshore energy options.
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Source: WECT News

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Cyprus: Deep Sea Supply Takes Delivery of Newbuilding AHTS

Deep Sea Supply recently informed that it has taken delivery of “Sea Fox”, a newbuilding AHTS from ABG Shipyard, India.
“Sea Fox” is the 5th delivery in a series of 9 newbuilding AHTS vessels from ABG.
The Deep Sea Supply fleet now consists of 16 AHTS and 8 PSVs, in total 24 vessels. In addition to this, Deep Sea Supply also has another 5 vessels under construction.
[Read more]
Source: Offshore Energy Today

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Buccaneer Energy Limited Positive AIDEA Due Diligence And Jack-Up Rig Update

Buccaneer Energy Limited is pleased to update on the progress of the acquisition of a jack-up rig for operations in the Cook Inlet, Alaska.
Buccaneer is in the process of negotiating and financing the acquisition of a jack-up rig that will have the capacity to operate in all areas within the Cook Inlet as well as the Beaufort Sea and Chukchi Sea off the North Slope of Alaska.
Given some of the existing oil and gas fields within the Cook Inlet are located in waters up to 300' in depth, the jack-up Buccaneer is seeking to acquire has the following features:
- Able to operate in waters up to 300' in depth;
- Capable of drilling wells to 25,000';
- Will have -10 degree rated steel allowing it to work in the wide environmental envelope that exists in the Arctic;
- Has a large deck area and variable deck load so it is able to store tubulars (casing) for deep drilling operations;
- The proposed rig is equipped with piping for a 15,000 PSI blow out protector ("BOP") system; the Company has negotiated the inclusion of a 15,000 BOP as part of the acquisition. Thus it has the capacity to easily upgrade its BOP so as to allow drilling high pressure locations that exist in the Cook Inlet; and
- Is cold stacked in an Asian location so has no requirement to obtain a Jones Act Waiver to mobilise to the Cook Inlet.
The acquisition of the jack-up rig and mobilisation to the Cook Inlet is anticipated to generate up to 400 direct and indirect jobs in the Cook Inlet region. This will create a significant economic boost and increase in tax base at a time when the region is feeling the effects of an economic down turn.
AIDEA Involvement
Buccaneer is pleased to advise that the Alaska Industrial Development & Export Authority (AIDEA) is continuing its statutorily mandated due diligence review of Buccaneer's business plan to acquire the above mentioned jack-up rig. AIDEA has retained consultants and counsel to review Buccaneer's proposal and has discounted Buccaneer's key operating assumptions in order to "stress test" the business model. After applying these discounts, AIDEA's preliminary view is that there is potentially a business case for bringing a rig to the region for use by Buccaneer and third party exploration companies.
As a result, AIDEA is proceeding with its due diligence review, which includes analysis of the project's proposed financing terms, its operating structure, and other components of a major infrastructure project.
Any investment AIDEA makes must be prudent and beneficial to the State of Alaska. Future negotiations between Buccaneer and AIDEA are anticipated to include finalisation of operating structures, documentation, repayment schedules, insurance and security.
AIDEA understands the importance of this project and of completing its review in a timely manner consistent with its duties as a public agency.
Senior Debt Facility
Buccaneer is also pleased to advise that it is in advanced discussions in respect to securing a Senior Debt facility of up to US$50.0 million. Buccaneer believes that this facility, in addition to the proposed investment from AIDEA, will provide sufficient funding for the acquisition and all necessary upgrades before mobilisation to the Cook Inlet.
Further releases will be made as this financing is progressed.
Mobilisation & Permitting
Buccaneer is applying for all permits necessary to drill four offshore wells in Cook Inlet, with all approvals expected by the end of May 2011. The Cook Inlet wells include two at its North Middle Ground Shoal (Southern Cross Unit) and two at North West Cook Inlet.
The longest lead time involved with permitting was modifying Buccaneer's existing Air Quality Permit. Modifying the existing permit required extensive air quality modelling due to locations of the four wells and size of the jackup. Submittal of the application for the permit modification will occur this week, with approval expected by the end of May 2011 following a required regulatory review period.
The Buccaneer rig will be moved to Alaska from a foreign port thus eliminating a need to obtain a Jones Act Waiver from the US Federal Government. This waiver is necessary only if the rig to be transported begins and ends its journey in a US port and is transported by a foreign flagged vessel.
Source: Press release

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Dragon Oil output higher in December, reserves rise

Dragon Oil said oil production from its fields in Turkmenistan ramped up in December on the completion of new facilities as it lifted its oil reserves by 3.6 percent.
The company, which in October cut its production growth guidance, said on Thursday that average daily production for 2010 rose 5.5 percent to 47,211 barrels of oil per day, in line with what it said in October.
[Read more]
Source: Reuters

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Suncor executive Neil Camarta to retire

Suncor Energy Inc. has restructured itself, and announced Wednesday that Neil Camarta, a former Petro-Canada executive who came to Suncor when it absorbed the former Crown corporation, will retire Jan. 31. 
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Source: Financial Post

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AWE’s announces Otway Basin reserves update

Santos, as operator of the offshore Otway Basin producing fields Casino, Netherby and Henry), in which AWE has a 25% equity, has completed a reassessment of reserves in those fields. 
As a result the initial proven plus probable (2P) recoverable reserves from these fields have reduced from 602.5 PJ to 448.5 PJ. 
Having completed an internal technical review of the basis of this reassessment, AWE accepts the operator’s revised reserves estimate. This represents a downward revision of 38.5 PJ (AWE share). On this basis and given production to December 31st 2010, AWE’s remaining Otway 2P reserves as of that date are now 67.5 PJ.
This reserves revision is not expected to impact contract gas volumes.  
This outcome reflects the complex geology of these reservoirs which adds to uncertainty when estimating reserves prior to having fully established well performance production trends on which to calibrate predictions of ultimate recovery.
Production capacity from all four wells has now been re-established following the successful remediation of a subsea electric fault.
Source: Press release

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