Argentine oil workers reach deal to lift strike

Argentine energy workers have reached a deal to end a two-week-old pay strike that has hit oil and natural gas production in the Patagonian province of Santa Cruz, officials and union leaders said on Monday.
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Source: Reuters

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Neptune confirms sale of the Neptune Trident vessel

Neptune Marine Services Limited (ASX: NMS - Neptune or the Company) today announced that its wholly owned Singapore subsidiary, Neptune Marine Pacific Pte Ltd (Neptune Pacific), has signed a Memorandum of Agreement with  PT Wintermar, of the Indonesian listed PT Wintermar Offshore Marine group, for the sale of the Neptune Trident vessel.

Under the terms of the agreement Neptune Pacific will sell the vessel for a total consideration of USD$14,025,000 million. The proceeds will allow Neptune to eliminate outstanding term debt.

Neptune’s Acting CEO, Robin King, said the sale of the Neptune Trident was an important component of the company’s ongoing restructuring initiatives that are focused on returning the business to profitability.

“Two primary elements of our restructuring plan are a reduction in debt levels and a move away from the capital burden associated with vessel ownership. The Trident sale is a significant step forward in both regards and is in line with our evaluation that ownership of the vessel is no longer a strategic fit for the company moving forward,” he said.

“The emerging potential for ongoing operational losses against the vessel following the cancellation of anticipated work scopes resulted in the decision to sell being brought forward.

“Concurrently, we are investigating the establishment of an operational agreement with Wintermar that would provide for collaboration and the potential for Neptune to utilise the vessel on future projects,” he added.

The sale value achieved for the Neptune Trident falls within the $12-$15 million valuation range that is indicative of current market rates. The Neptune Trident has a written down value of $21.5 million giving rise to a loss on sale of approximately $7.5 million that will be recorded in the current half year report.

Completion of the sale is scheduled for May 2011.

The Neptune restructuring program remains ongoing with further asset and business sales, reductions in overheads and additional strengthening/renewal of the Board expected.

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Offshore natural gas platform worker dies

An employee on a non-producing offshore natural gas platform died after falling through a deck opening on Monday, the U.S. offshore drilling regulator said.
The employee of Alliance Oilfield Services was working on a Hilcorp Energy platform in 375 feet of water about 129 miles off the Louisiana coast in the Gulf of Mexico, the Bureau of Ocean Energy Management, Regulation and Enforcement said in a statement. Hilcorp and Alliance are both privately-held companies.
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Source: Reuters

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India warns rising oil prices could hit global recovery

WASHINGTON: India Saturday warned that the global recovery from the worst financial crisis in decades may be jeopardised by a sustained rise in oil prices and speculative movements in commodity derivative markets.
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Source: The Economic Times

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Current situation for travel and transport to and from Japan

The United Nations organisations monitoring the effects of the damaged Fukushima Daiichi plant remain confident that current radiation levels do not present health or transportation safety hazards to passengers and crew.
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Source: Baird Maritime

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"Bulk Viking" ran aground

On Apr 17, 2011, at 10.35 a.m. the "Bulk Viking" ran aground underway from Narvik to the Esso Port at Sortland to unload a cargo of gravel close to the Sortlands bridge. Three rescue boats were sent. The vessel was refloated by the "Knut Hoem" after 30 minutes. The ship suffered minor hull damage. The crew was drug-tested. Bulk carrier Bulk Viking IMO 7232743, dwt 945, built 1972, flag Norway, manager/owner Hokland Geir.  
Source: Seanews

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APL: Volumes surge, but overcapacity threatens booming intra-Asia trade

BIGGER ships in greater numbers pour into the intra-Asia trades and threaten carrier profitability in an otherwise booming trade, says APL vice president Jason Wong.
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Source: SeaNews Turkey

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'Out of control' piracy set to cost world £9bn by 2015

Somali pirates are earning more than 150 times their country's national average wage in what has become a multimillion-dollar business, a new study reveals.

Experts believe that pirates in the East African country – the most dangerous point in a rising tide of piracy at sea – earn up to $79,000 a year. It is a stark contrast to the average annual income in Somalia of $500.
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Source: Independent

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Blow your horns

BIMCO President rages at kidnapping and murder

A highly audible protest from the shipping industry against piracy – with a 30-second blast from ships’ sirens every day at noon, in every port in the world – has been recommended to draw public attention to the criminals who are now menacing world trade, and who are holding nearly 800 seafarers captive. 

Delivering the keynote address at this week’s Singapore conference of the Regional Cooperation Agreement on Combating Piracy and Armed Robbery against ships in Asia (ReCAAP),  BIMCO President Robert Lorenz-Meyer suggested that such a protest was necessary to remind governments of the urgency of measures to deal with the piracy problem. Attacks  on merchant vessels by Somali pirates, said the BIMCO President are “about to cut the sealanes in and out of the Persian Gulf and attacking a service “on which the world depends for economic stability and growth”.

Mr. Lorenz-Meyer praised the work of the multi-national naval force protecting merchant shipping in the Gulf of Aden and Indian Ocean, in particular noting the “brilliant examples” set by some of the Asian warships in successfully confronting the pirates’ use of captured vessels as “motherships”. He contrasted the work done by some of the states involved in the action against pirates and their robust work to free ships and captive seafarers with the “kid gloves” worn by others in dealing with the menace.

BIMCO, which had been involved with the problems of modern piracy since it emerged as a problem in the 1990s, has maintained that unless there are serious consequences for the criminals, they will continue to attack merchant shipping. The President pointed out that not all states have ratified UNCLOS or the SUA conventions, while some states which have ratified these international documents do not yet have national legislation in place enabling their enforcement agencies to arrest and prosecute pirates. He welcomed the harsh sentences of 20 or 30 years being meted out in the courts of Kenya and the Seychelles for those convicted.

Governments of the world, said Mr Lorenz-Meyer, “must get their act together” on piracy and establish a comprehensive strategy to deal with the problem. Such action “must aim to reverse the malicious will of the pirates, rather than pretend to reduce their capability”. It must, he said, fundamentally change the the risk/reward ratio currently in favour of the pirates and offer them alternative livelihoods. Such matters, he emphasised, were the clear responsibility of governments, and the “explicit and strong commitment of governments” is essential if there is to be any lasting solution to the problem.

In the BIMCO President’s address, he underlined the urgency of the situation, with the criminals effectively now menacing global trade and traumatising a large number of innocent seafarers, with trade unions now calling for a boycott of the affected areas. “We are dangerously close to a turning point for the freedom of navigation on vital trade routes” , he said.

He reminded his audience that “engagement, dialogue and multinational co-operation” had solved the piracy problem in the Malacca and Singapore Straits, and while the Somali situation was not exactly the same, this cannot, he said, be used as an excuse for a continuation of the current inadequate approach. The shipping industry needed to bring its concern about the piracy menace to a wider public, much of which was yet to be appraised about its seriousness. A loud noise of protest, as Masters sounded their sirens in port each day, could symbolise this growing impatience.

The action will support the SOS Save Our Seafarers campaign launched by BIMCO, the International Chamber of Shipping (ICS), the International Shipping Federation (ISF), Intercargo, INTERTANKO and the International Transport Workers’ Federation (ITF). The SOS campaign aims at encouraging millions of people around the world to heap pressure on their national Governments to crack down on piracy by visiting www.saveourseafarers.com and signing an on-line petition.

At the Singapore meeting, PREVENT PIRACY – a poster designed as a joint project by the ReCAAP ISC and BIMCO was launched by Mr. Yoshida Endo , Executive Director of the regional body and Mr. Torben Skaanild, Secretary-General of BIMCO . The poster is recommended for use aboard ships to serve as a check-list for seafarers whose ships may be transiting pirate-infested waters, reminding them to “be prepared”.
Source: Bimco

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Shipping bodies raise alarm as pirates take ransom yet keep hostages

The International Chamber of Shipping, ITF, Indian National Shipowners’ Association, NUSI, MUI, IMEC, InterManager, Intertanko and BIMCO deplore the latest development in the Indian Ocean piracy crisis, as some Indian crew members of a released merchant ship are retained ashore in Somalia.

The Asphalt Venture, a 1991 built asphalt/bitumen tanker was hijacked by Somali pirates on 28 September 2010 and, following a ransom payment, the ship was released on 15 April. Despite the owners’ concluding a dialogue with the pirates for the full release of 15 crew and vessel and payment of the ransom, the vessel was released, but the Master has reported that six officers and one rating were taken off the tanker and made to accompany the pirates ashore.

In subsequent press reports it is suggested that pirates in Harardhere have taken the decision not to honour the agreement made but to prolong the hostage ordeal of the seven seafarers in retaliation for the arrest of Somali pirates by the Indian Navy in recent weeks.

This is a fundamental change to previous practice and moves the issue from being just between the shipowner and the pirates to being between the pirates and a government. It is a major shift in the pirate-hostage equation which will need to be considered and addressed by the international community.

Our thoughts are very much with these seafarers and their families, as well as with all the other seafarers who are being held by the Somali pirates, and with their families. As the state of lawlessness spirals downward in the Indian Ocean and the level of violence that pirates are prepared to use to coerce seafarers and to influence the hostage negotiation increases, this breach of the ransom agreement sets a precedent that is of the utmost concern.

The international and national representative organisations are gravely concerned with this new development, as international governments continue to fail to adequately respond to this 21st century example of organised and violent criminality that threatens the safe passage of world trade through the region, where 40% of the world’s oil is transported, and which may lead to increases in oil prices.
Source: Bimco

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Iron-Ore Ship Rents Fall to Six-Week Low on Surplus Vessels

Rents for capesize ships that haul iron ore fell to the lowest level in six weeks on excess vessel supply.

Hire rates dropped 2.9 percent to $6,655 today, according to data from the Baltic Exchange in London. That’s the lowest since March 7 and the 11th straight decline. Rentals fell 36 percent in the three weeks to April 15.
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Source: Bloomberg

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Container Shipping: Growing volumes but even stronger growth in tonnage

Hot on the heels of the success story of the second half of 2010, container shipping is now urged – in vain – to return to tactics like idling of vessels in order to boost freight rates once again as the year progresses, because of severe overcapacity issues.

In a recent report BIMCO said it expects that we go all the way into the peak-season around the third quarter before sustainable spot rate levels are back on main trading lanes from Asia to Europe and US West Coast. “To restore restore freight rates significantly over the coming quarter, idling of vessels ought to be considered an option.
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Source: Hellenic Shipping News

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Maersk Oil awarded licence in Norway

Maersk Oil announces that it has been awarded a 30% non-operated share in Licence PL597 on the Halten Terrace offshore Norway in the 21st Licencing Round.

The operator of the licence is VNG Norge A/S (40%) with Dana Petroleum Plc as partner (30%). Together with Maersk Oil, the partners are committed to carrying out seismic data reprocessing leading to a decision whether to drill an exploration well.

“This licence award fits well with Maersk Oil’s strategy of building up a strong exploration portfolio in our chosen focus areas in Norway. It adds to our current interests in four other licences on the Halten Terrace,” said Morten Jeppesen, Managing Director of Maersk Oil Norway.

“We are committed to growing our business in Norway through exploration and acquisitions to build a significant portfolio of exploration and producing assets in the coming years,” Jeppesen said.
Source: Maersk Oil

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EnCore: Flotation of New Exploration Company

Exploration Assets flotation and proposed fundraising

EnCore (LSE: EO.) announces that the Company is planning for a subsidiary company, which will be assigned the Exploration Assets, to be floated on AIM. The new company will be known as XEO Exploration plc (“XEO”).  Subject to regulatory approvals and a successful institutional placing, XEO is expected to be admitted to AIM around the end of May 2011.

EnCore is in the process of transferring the Exploration Assets listed below into XEO, subject to receiving the necessary partner and regulatory approvals.  The exact percentage shareholding of EnCore in XEO will depend upon the final amount of funds raised by XEO.

In addition to their indirect interest in XEO through EnCore’s remaining holding, the Company plans to offer qualifying EnCore shareholders the opportunity to subscribe for shares in XEO directly at the institutional placing price. The offer to EnCore shareholders will be made around the time of XEO’s admission to AIM and close shortly following admission.

EnCore assets to be transferred to XEO
Licence	Block	Prospect	XEO Equity*	Operator	Partners
P.1769	14/29e, 20/4c, 20/5f	Hoylake	50%	XEO*	Endeavour
P.1463	14/30a	Tudor Rose, Buffalo	40%	XEO*	Nautical, Endeavour, EnQuest
P.1655	15/21g	Spaniards	40%	XEO*	Nautical, Serica
P.1475	113/29c & 113/30	Merrow	50%	Nautical	XEO*

*subject to partner and regulatory approval

XEO will also have the option to acquire the following interests currently held by EnCore and Echo Exploration Ltd.

XEO will have the option to acquire the following licence from EnCore
Licence	Block	XEO Equity*	Proposed Operator	Partners
P.1812	28/5, 28/10a & 29/1d	100%	XEO*
XEO will have the option to acquire the following licence interests from Echo Exploration Ltd
Licence	Block	XEO Equity*	Proposed Administrator	Partners
P.1866	13/28b	50%	Echo	XEO*
P.1870	15/21d	50%	Echo	XEO*
P.1876	22/5c	50%	Echo	XEO*

*subject to partner and regulatory approval

In addition to the licences above, XEO has the potential option to acquire a number of UK26^th Round licences, yet to be awarded by DECC, that are under further environmental review.

Rationale behind the flotation

The EnCore Board has considered a number of scenarios for progressing the exploration portfolio and has concluded that placing those assets into a separately quoted company is the most beneficial route forward for the following reasons:

• EnCore’s future focus is now to be directed towards its two main assets, Catcher and Cladhan, which are in the latter stages of appraisal and will soon be moving into the development stage of their lifecycles.
• A very significant proportion of the value of the Company is in Catcher and Cladhan. Therefore, the Board did not wish to dilute shareholders’ exposure to these assets by an EnCore fundraising for a high-impact exploration programme covering the Exploration Assets with the attendant risks.
• Moving forward, EnCore’s existing and any future capital/debt can be targeted directly at the development assets.
• Existing EnCore shareholders will remain exposed to any success from the Exploration Assets through EnCore’s shareholding in XEO.  However shareholders who wish to have increased exposure to a risked exploration programme will also be offered the opportunity to participate in the offer at the institutional placing price.

Proposed XEO Board and EnCore Board of Director Changes

On completion of the institutional placing and admission of XEO to AIM, Eugene Whyms, currently Chief Financial Officer (CFO) and Company Secretary will become a Non-Executive Director of EnCore and take up the role of Chief Executive Officer (CEO) of XEO. Alan Booth, CEO of EnCore, will assume the additional role of a Non-Executive Director of XEO.  Chris Johnson, currently Group Financial Controller will become CFO of EnCore, whilst James Clark, currently Commercial Director of EnCore will assume the additional role of Company Secretary.  All these appointments are scheduled to occur concurrently with the successful admission to AIM of XEO.

Additional appointments to the XEO Board will include the appointment of EnCore’s Business Development Manager, Peter Schwarz as Chief Operating Officer (COO), and the appointment of experienced banking and oil industry executive, John Mapplebeck as Non Executive Chairman of XEO.

EnCore expects the XEO prospectus to be mailed to shareholders during the week commencing 30 May 2011.

Matrix Corporate Capital LLP is acting as nominated adviser and joint broker and Westhouse Securities Limited as joint broker in connection with XEO’s admission to AIM.

Commenting on the formation of the new company, EnCore Chief Executive Alan Booth said:

“EnCore has considered a broad range of options available to it at this important time in the Company's development.  Clearly the significant discoveries at Catcher and Cladhan must take priority in terms of access to our capital.  At the same time, we also firmly believe that our expanding exploration portfolio deserves appropriate funding to unearth any value that it may contain.  However, we recognise that the risk profile of these assets is higher than the ongoing evaluation of the Catcher area and Cladhan.  Whilst farming out the exploration portfolio was one possible route, it was recognised that the remaining equity levels would likely be in the order of one third of current levels.  The farm out process would also likely place timing and control in the hands of third parties, who might perceive EnCore to have limited options with regard to exploration funding.  We believe that the chosen route should allow us greater control over our own destiny, whilst enabling us to expose our current and new shareholders to higher impact and more material equity levels in those prospects in which we will seek to invest.

“Both companies will continue to benefit from the people and skills that have been so successfully deployed in building the asset base to date at EnCore, and both companies will be co-located at the current Baker Street offices.  Whilst there can be no guarantee that we will be as successful again, we would like to ensure that our shareholders at least have a choice as to whether they wish to have ongoing exposure to high-impact exploration in the UK offshore in addition to their indirect interest through EnCore’s shareholding in XEO."
Source: EnCore

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Aban bags ONGC orders worth $ 138 million

Aban Offshore said on Monday that it has bagged firm orders worth $ 138 million (Rs 620 crore) from ONGC for the deployment of two jack-up rigs for three years period each.
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Source: Business Line

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