BowLeven Plc - Sapele-1 sidetrack (Sapele-1ST), Block MLHP-5

Bowleven, the West Africa focused oil and gas exploration group traded on AIM is pleased to announce that the Sapele-1ST well drilling in the Douala Basin, offshore Cameroon has encountered a total of 23 metres of net hydrocarbon-bearing pay in the Omicron objectives based on the results of drilling, conventional wireline logs, samples of reservoir fluid and pressure data. A testing programme is expected to commence shortly.

Highlights

· 23 metres of log evaluated net hydrocarbon pay encountered in the Omicron objectives at Sapele-1ST.

· Preparing for testing programme at Sapele-1ST.

· Sapele-2 well progressing on schedule.

Sapele-1ST drilling update

The principal objective of Sapele-1ST was to appraise the Deep Omicron oil discovery encountered in the Sapele-1 exploration well. The well was also designed to intersect both the Upper and Lower Omicron objectives.

The well was drilled to a TVD of 3,634 metres (4,483 metres measured depth) in water depths of around 25 metres approximately 2 kilometres South East from the Deep Omicron oil discovery in the original vertical well.

Bowleven, as operator, provides updates for the reservoir sections encountered at Sapele-1ST below:

Upper Omicron

1.4 metres of net pay were intersected overlying approximately 24 metres of high quality reservoir which following sampling was confirmed as water bearing.

Lower Omicron

The well has intersected a log evaluated hydrocarbon interval that is interpreted to comprise fair quality thinly interbedded reservoir units. Provisional net pay is estimated to be approximately 11 metres, based on conventional wireline logs, with an average porosity of 17%. Fluid samples acquired during logging activities indicate the presence of light oil/gas condensate as reservoir fluid.

Deep Omicron

The well has intersected a log evaluated hydrocarbon interval that is interpreted to comprise high quality thinly interbedded reservoir units. Although less well developed at this location and with a corresponding lower net to gross ratio than the Sapele-1 motherbore, the provisional net pay is conservatively estimated to be approximately 10 metres, based on conventional wireline logs, with an average porosity of 19%. In addition, initial interpretation indicates that certain pay intervals identified in the original Sapele-1 well have been eroded at the Sapele-1ST location. It was not possible to recover, it is believed due to borehole conditions, reservoir fluid samples and pressure data from Deep Omicron. Consequently, pressure communication could not be confirmed from logging activities. The GC tracer however indicates the presence of a light high GOR oil.

Forward plan

Further detailed analysis, including test data, is now required to assess the implications of the Sapele-1ST well on current resource estimates. The impending Sapele-2 appraisal well results will also be integral to this process. The Company is now preparing to conduct a drill stem testing programme at Sapele-1ST. Following testing the intention is to release the Noble Tommy Craighead rig for a mandatory recertification process.

Due to the stratigraphic nature of the Omicron discoveries further appraisal will be required and is already underway and planned. The Sapele-2 well, intended to appraise both the Lower and Deep Omicron discoveries, is currently drilling with the Vantage Sapphire Driller rig and is expected to take a further 15 to 20 days (excluding testing). The rig is available for up to three well slots after Sapele-2 with the location selection process factoring in both ongoing technical evaluation and well results.

A map indicating the location of the Sapele-1ST well is available on our website www.bowleven.comunder the heading presentations; the presentation is titled "Sapele drilling locations". Previous press releases relating to Sapele-1 are available on our website in the 'Investor Relations, announcements section'.

An update announcement and conference call are planned on completion of the full test programme on Sapele-1ST. Further update announcements on drilling activities will be made as appropriate.

Posted on 4/20/2011 / 0 comments / Read More

Keppel Corp says Q1 net profit up 8 pct, rig orders rebound

Keppel Corp , the world's largest rig-builder, reported a better-than-expected 7.8 percent rise in quarterly net profit on Wednesday, helped by better margins from its offshore and marine business, while new orders for oil rigs rebounded.
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Source: Reuters

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Napa signs an agreement with Daewoo Shipbuilding & Marine Engineering

Napa Ltd, the leading software house for ship operations, signed an agreement with Daewoo Shipbuilding & Marine Engineering Co. Ltd (DSME). The agreement specifies the co-operation with sales, model creation and delivery of the environment-friendly NAPA-DSME Power® software for DSME designed vessels.

DSME and Napa are both committed to environmental protection and ecological sustainability. “This co-operation strengthens our capability to provide our customers a software solution which covers current recommendations and future requirements for energy efficient planning of ship operation”, says Sebastian Sjöberg, Area Sales Manager at Onboard-Napa. “NAPA-DSME Power® is used to obtain the most optimal trim, route, speed profile, and engine configuration for any given voyage. In addition it includes a complete office platform which provides a quick overview of the fleet efficiency, including tools for detailed analysis of hull and engine performance and monitor achievement of Ships Energy Efficiency Management Plan.”

DSME is devoted to satisfying the needs of both customers and employees as a value-creating company that is committed in technological superiority, building environmentally safe vessels and on-time delivery. “NAPA-DSME Power® is a very important part of our Green Ship concept. It provides our customers the possibility to optimize the vessels complete operation and provides a platform covering all fuel and emission reporting requirements,” says Odin Kwon, Technical Director, Leader of Basic Design at DSME.
Source: Napa

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Gulf Navigation signs 2 VLCC New Buildings

Gulf Navigation Holding, PJSC (DFM: GULFNAV) one of the leading ship-owners and maritime services company in the region, announced today the signing of a contract with Zhoushan Jinhaiwan Shipyard Co. LTD of Shanghai to build 2 Very Large Crude Carriers (VLCC) for delivery in December 2012 and May 2013.  The sister ships are 320,000 in deadweight and have a carrying capacity of more than 2 million crude oil barrels each.

Simultaneously, Gulf Navigation Holding signed two agreements with Grand China Logistics Holding (Group) Co. LTD to time charter the vessels for 10-years each upon delivery.  The charter agreement has a profit-sharing mechanism once a ceiling is reached, and is worth approximately AED 1.05 Billion (US$ 284.7 million).

The new vessels will join the “Gulf Eyadah” which was delivered in January 2011, and “Gulf Sheba” to increase Gulf Navigation’s VLCC fleet to 4 and its carrying capacity to 8 Million barrels.   The Company plans to expand the VLCC fleet to 9 (18 million barrels) by 2015, as part of the 5-year shareholder-value improvement strategy which started this year.  The plan also calls for expansion of the chemical fleet, entry into the Aframax and offshore markets and listing of subsidiaries in international stock exchanges.  Company results are expected to reflect such key achievements in profitability as they occur.

The signing of the VLCC building and charter contracts with major Chinese groups mark a strong entry of Gulf Navigation Holding into the Chinese market, which is witnessing a huge surge in oil consumption.  China’s crude oil demand is forecast to increase to 10.5 Million barrels per day in 2015 from 8.1 Million barrels a day in 2009.
Source: Gulf Navigation Holding

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Hamworthy selected for gas-powered ships

Hamworthy has signed a contract to install liquefied natural gas storage tanks and fuel systems on board four gas-powered ferries to be constructed at the Remontowa Shipyard in Gdansk, Poland for delivery in the second half of 2012.The ships, which will be delivered to ship owner Torghatten Nord AS, will serve two routes across Vestfjorden in Lofoten in the north of Norway. Both routes are known for their harsh operating conditions. Hamworthy Oil & Gas Systems will deliver the fuel gas systems as sub-supplier to Rolls-Royce, which has been awarded the contract for complete propulsion systems. Each ship, being built in Hanjung Shipyard, China, will each feature 150m3 capacity storage tanks designed by Hamworthy.Reidar Strande, Hamworthy Oil and Gas Systems Director LNG, said “LNG is a promising fuel for ships, with greatly reduced emissions compared to regular marine diesel or heavy fuel oil. Due to the establishment of the Emission Control Area for the Baltic Sea and parts of The North Sea a lot of new ships are being equipped with gas engines. By utilising natural gas, SOx, NOx and particulate matter emissions are reduced by up to 80%, while CO2 can be reduced by between 15% and 25%.”

Mr Strande said that since natural gas has to be bunkered as LNG, special requirements for fuel handling had to be met. “The fuel has to be evaporated and warmed before it may be used as fuel in a gas engine. Hamworthy Oil & Gas Systems has extensive experience in handling cryogenic liquids and is today utilising this experience as supplier of fuel gas systems for modern gas engine ships.”

Hamworthy will deliver the complete storage and handling systems, including bunkering stations on board to handle refilling of the ships’ 150m3 LNG tanks in less than one hour and evaporation and heating of the LNG from approximately -145°C to +30°C.“To meet strict maritime requirements the systems are fully redundant, guaranteeing fuel supply under any circumstance,” said Mr Strande. “No fuel pumps are necessary. Natural gas will rather be delivered to the engines by differential pressure between tank and engine. Tank pressure is maintained by controlled evaporation of LNG in a closed cycle with the fuel tank. Bunkering lines and gas lines to the engine are normally installed in ventilated ducts, to eliminate risk of explosion or fire.” Hamworthy’s LNG storage and handling system (LNG Fuel Gas System) is typically delivered as a complete skid prepared for installation in vessels.  All hook up works and interconnecting piping to the vessel systems (e.g. utilities as electricity, heating water, purging, gas to engine and LNG) are performed at yards.
Source: Hamworthy

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STX Finland signs a major maintenance contract for Saipem pipelay ship

On 20 April 2011, STX Finland Oy and Saipem S.p.A signed a contract on major overhaul and maintenance of the semisubmersible pipelay vessel Castoro Sei. The work on the ship, providing employment for as many as about 1,000 people, will be completed by STX's Turku shipyard.  

The Castoro Sei is a 152 metres long and 70.5 metres wide semisubmersible pipelay vessel, owned by Italian offshore company Saipem S.p.A. She is currently deployed in laying the pipeline for the Nord Stream project on the Baltic Sea. STX's Turku shipyard will carry out very extensive and demanding overhaul of Castoro Sei's mooring and pipelaying systems. Some other maintenance activities and repairs will also be done during the continuous four-week project, scheduled for May-June.
"The overhaul of Castoro Sei is a very welcome project for STX Finland. The project is very challenging in terms of both amount of work and scheduling. The safety and quality requirements for the project are extremely high," Jari Anttila, Director of STX Turku shipyard, points out. "We are also satisfied that we were able to flexibly and in good collaborative spirit agree on working hour arrangements with the staff for such a time-sensitive project," Anttila comments.
Source: STX Europe

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NEW PRESIDENT OF STX FINLAND

Juha Heikinheimo has today resigned from the position as President of STX Finland Oy. He will be replaced by Su-Jou Kim, who currently holds the position as Chairman of STX Finland. Su-Jou Kim will be temporary acting President of STX Finland.

Despite significant improvements during the last few months, STX Finland is going through very challenging times - in particular at the Turku shipyard - following the delivery of the "Allure of the Seas" in October 2010.

Compared with its high shipbuilding capacity for cruise ships, STX Finland and the Turku shipyard have not been successful in getting new orders. The main task for the new President will therefore be to secure new orders and gradually restore the activity level of STX Finland. Mr Kim will be supported by a committed and experienced management team in these efforts. In the last few months STX Finland has seen significant improvements to its productivity and cost structure. These efforts will be accelerated and further strengthened to improve the competitiveness of STX Finland.

The new President of STX Finland says: "My objective is that STX Finland shall again be in a position to build and deliver the world's most magnificent cruise vessels - and exceed the clients' expectations when it comes to quality, innovation, reliability and deliverability."

Su-Jou Kim (b.1956) has gained significant experience from STX Finland and STX Europe during the last few years. He currently also holds the position as CEO of STX Europe AS (parent company of STX Finland) and Chairman of STX Finland Oy. Mr Kim has held various management positions within the STX Business Group, including in shipbuilding and international business development. He has a degree in mechanical engineering from Seoul National University.
Source: STX Europe

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IFS launches Center of Excellence for Oil & Gas

IFS, the global enterprise applications company, today launches its Center of Excellence for the Oil & Gas industry. The Center will be based in Norway. Founded on IFS’s successful track record delivering project-based industry solutions to mid-size and large companies within the oil & gas industry, the center will be IFS’s global hub for industry competence and experience going forward.

The success of IFS’s Norwegian operations within the oil and gas industry during the past fifteen years has made the region a central repository for industry competence and insight. Working closely with its many world-leading customers, the Center of Excellence constitutes the central hub where industry competence is focused and cultivated, thereby increasing IFS’s presence in the industry. 
The center consists of key-resources with long experience from the Oil & Gas industry. The center’s main responsibilities are to:

• Gather and develop competence
• Provide sales and solution expertise in larger global sales projects
• Provide solution expertise in large global implementations
• Identify and provide trends and new functional requirements to IFS Research and Development
• Establish and maintain contact with main System Integrators, partners, third-party product vendors, and industry associations

The IFS Center of Excellence – Oil & Gas will be headed by Carl-Magnus Adamsson. “My ambitions are to further expand IFS’s global position as the leading vendor of project-based solutions for the Oil & Gas industry. Our target now is to focus on the up-stream players and especially the EPCI (Engineering, Procurement, Construction, Installation) Contractors. Many of them still have own-developed stand-alone applications within engineering, fabrication and material management. We are now trying to help them to improve efficiency and secure better project control by offering user-friendly integrated standard packages .”

Excuting on its growth strategy within the industry, IFS will also continue to strengthen its position by recruiting leading industry competence, most recently manifested in the form of Geir Arne Wilberg, formerly of Aibel, and Kristin Husby, recently recruited from Hamworthy Gas Systems.

The Oil & Gas industry is one of IFS’ targeted markets. IFS offers flexible, component-based business solutions that manage the entire lifecycle of contracts, projects, assets and services. IFS Applications includes functionality for contract and project management, risk management, budgeting and forecasting, engineering, material management, fabrication, document management, service and asset management, all integrated with financials and human resources.

Customers include Technip, Semco Maritime, Hertel, Grenland Group, Babcock Engineering Services, Heerema Fabrication Group, Seadrill, Yantai Raffles, Archer, Apply Sørco, Reinertsen Engineering, APL, Bergen Group Rosenberg, BWO Offshore, STX Europe, and Hamworthy Gas Systems.
Source: CISOIN WIRE

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Oceaneering: Deepwater Drill Support Record Set

An Oceaneering® Millennium® Plus work class Remotely Operated Vehicle (ROV) has set an ROV ultra deepwater drill support depth record offshore India while working at 3107m (10,194 ft) water depths. Millennium 77 has supported drilling operations on the Dhirubhai Deepwater KG2 for Reliance Industries, logging over 400 hours and 69 total dives at this drill site alone from March to mid-April 2011. Millennium 77 is a 4,000 meter rated system that was put into service in Q1 2010.

Oceaneering International, Inc. manufactures and operates the world’s largest offshore fleet of ROVs. The company maintains a worldwide fleet of 260 work class ROVs and employs over 2,000 ROV personnel globally.

Source: Oceaneering

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Gazprom meets all obligations under Russian Regions Gasification Program 2010

The Board of Directors appreciated the results of the Russian Regions Gasification Program 2010 implemented by Gazprom and tasked the Company's Management Committee to carry on the gasification activity in 2011.

In the course of the meeting it was highlighted that Gazprom had met all of its regional gasification obligations in 2010. 156 inter-settlement gas pipelines were constructed with the total length of some 2,100 kilometers in 44 constituent entities of the Russian Federation including 18 facilities built on a tight schedule as part of the wildfire remediation efforts. The gas pipelines constructed in 2010 deliver gas to more than 300 settlements.

Background

Russian regions gasification is carried out jointly by Gazprom and authorities of federal constituents: the Company finances construction of the inter-settlement gas pipelines delivering gas to population centers, while regional authorities take on street-level networks deployment and preparation of consumers for gas supplies.
Starting from 2005 Gazprom has considerably intensified the activities aimed at increasing regional gasification in Russia. Between 2005 and 2009 Gazprom invested some RUB 90 billion in the regional gasification raising the average gas penetration level in Russia to 63.2 per cent (9 per cent increase) including 67.5 per cent in cities and towns (6.5 per cent increase) and 45.5 per cent in the rural area (9.5 per cent increase).
In December 2009 the Gazprom Management Committee approved the updated Concept for Russian Regions Gasification. The Concept stipulates a differentiated approach of the Company to the gasification process depending on the existence and the development level of natural gas reserves in the regions. The document describes the gasification mechanism for the population centers that are sparsely inhabited and detached from gas trunklines using, among other things, liquefied and compressed natural gas as well as liquefied petroleum gas.
The Russian Regions Gasification Program 2010 envisaged investment by Gazprom in the amount of RUB 25 billion. The funds were allocated for new facilities construction and front-end engineering and design work as well as for development of general schemes of gas supply and gasification.
Moreover, Gazprom additionally allocated RUB 612 million and commissioned 18 inter-settlement gas pipelines in federal constituents hit by wildfire. Thus, Gazprom allocated a total of RUB 25.612 billion as part of the Russian Regions Gasification Program 2010.
Administrations of the bulk of regions where Gazprom was constructing gasification facilities in 2010 fulfilled their obligations to prepare consumers for gas supplies. At the same time, eight regions fall considerably behind the pace envisaged by the schedules, namely – the Arkhangelsk, Kaliningrad, Pskov, Tver and Tula Oblasts as well as the Republics of Adygea, Dagestan, North Ossetia – Alania. Seven more regions show a slow pace of operations.
The adopted Russian Regions Gasification Program 2011 envisages the investment in the amount of RUB 25 billion.
The Company's regional gasification efforts in 2011 are oriented at achieving the maximum economically viable level of gasification with the priority given to the federal programs implementation as refer to the Olympic venues and the 2012 APEC Summit facilities gasification. As in previous years, meeting the obligations assumed by the regional administrations in respect to the preparation of consumers to receive gas as well as timely and full payment for gas supplies will remain the key factors while allocating the investments by Gazprom.
Source: Gazprom

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Mitsui's Moex Blames Partner BP for Gulf of Mexico Rig Blow-Out, Oil Spill

BP Plc (BP/) was sued by Mitsui & Co.’s Moex Offshore LLC unit and Anadarko Petroleum Corp. (APC), both minority partners in the blown-out Macondo well, over economic losses from the project’s failure and the Gulf of Mexico oil spill that followed.
[Read More]
Source: Bloomberg

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Petrobras: Start of EWT of Brava Area

Petrobras commenced the Extended Well Test (EWT) in the Campos basin’s pre-salt Brava Area, in the Marlin Field Production Concession, 170 km off the coast of Macaé, in Rio de Janeiro.

The EWT is expected to last two years, with daily output of 6,000 barrels of oil, and is running on well 6-MRL-199-RJS, interconnected to the P-27 platform, which was already in production in Marlin field.

This is the fifth reservoir to produce oil in the Campos Basin pre-salt. Besides the Brava, Jubarte and Baleia Franca pre-salt reservoirs mentioned below, in December 2010, Petrobras commenced the Carimbé EWT in the Caratinga concession area, and in February 2011, the Tracajá ETW in the Marlim Leste concession area.

The Brava EWT will enable Petrobras to obtain more information about the reservoir’s characteristics, which will help in the preparation of the definitive production development project. This data will also be important for studying the characteristics of new wells in the Marlim and Voador fields.
Source: Petrobras

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GOLAR LNG LIMITED - Further New Building LNG Carrier at Samsung

Golar LNG Limited ("Golar" or the "Company") is pleased to announce in furtherance of its recent press release regarding new buildings, that it has acquired further firm contracts to build two additional 160,000 m³ LNG carriers with the Korean shipbuilder Samsung Heavy Industries Co Ltd ("Samsung"). The newbuilding contracts were originally entered into by Companies affiliated with Golar's largest shareholder World Shipholding. Golar has acquired the newbuilding contracts from the affiliated party based on the original contracting terms. The two latest vessels are for delivery in 2013 and 2014 at a total cost of approximately $400 million. In addition to the now 6 confirmed vessels Golar has fixed priced options to add further capacity.

As previously announced Golar has the possibility to include ice strengthening / winterisation of the ships as well as regasification equipment. The Board consider the competitive  price and payment terms, the  early delivery positions and the flexibility with respect to design to create a significant commercial advantage over other operators who will enter the newbuilding market at a later stage.

In addition to the announced new building program, Golar is in final discussions regarding firm commitments for construction of multiple FSRU carriers.

The Board is pleased by the actions taken by management in order to secure the most attractive yard slots from the most experienced yard.

The Board anticipates that the total financing for the existing new building commitments can be arranged through existing cash, working capital and additional bank financing. The Board does not see a need to raise additional equity to finance the existing new building program.
Source: GOLAR

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FAIRSTAR achieves keel laying milestone for new Semi-submersible Vessel

Fairstar Heavy Transport N.V. (FAIR) attended the keel laying ceremony of the 50,000DWT semi-submersible vessel FORTE at the GSI facility in Qidong, China. Senior executives from Guangzhou Shipbuilding International (GSI), Det Norske Veritas (DNV) and Fairstar witnessed the first block being lowered into the dry dock.

 

“We are thrilled to see the keel block now in place. In the coming months hundreds of additional blocks will be assembled into the FORTE and we expect to float the hull out of the dry dock on September 15, 2011. We are deeply impressed with the commitment of GSI and their Team on site. Our own site team of inspectors have been more than satisfied with the levels of quality and craftsmanship we see day after day from GSI and all of their sub-contractors. We are confident the FORTE will be completed on schedule to meet its May 1, 2012 delivery date, well in time to begin service under its long-term, multi voyage Gorgon contract.” reported Willem Out, Fairstar’s Chief Operating Officer.
Source: Fairstar

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CIC Standing in front of China Ship Repair

CHINA SHIPREPAIR MAGAZINE (2^nd edition, 2011) with the information from China Shipbuilding Industry Association, released its annual “China Ship Repair Ranking List 2010”, and China Shipping Industry Co., Ltd. (CIC) had the first place in terms of the number of ships repaired, second place for value of sales and third place for ship repair value of output.

 

Throughout the year 2010, facing the heated competition and falling price in ship repair market, CIC had kept on securing the old clients by “short, adaptable and fast” solution and exploring the new market by the strategy of “all weather working”. Stick to the centralized business management, CIC had exerted the advantages of scale and recourses, further boosted the management of lean production with program and planning management as the starting point, cost control as the stress and service quality improvement as the goal, as well as CIC brand strategy of ship repair

Souce: CIC

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OOCL report increased first quarter results

The Board of Directors (the “Board”) of Orient Overseas (International) Limited (the “Company”) has adopted a policy of announcing unaudited operational updates for Orient Overseas Container Line (“OOCL”) on a quarterly basis. This announcement sets out the unaudited operational update for OOCL for the first quarter of 2011 (ended 31st March 2011).
The comparative figures for the first quarter of 2010 (ended 31st March 2010) are also disclosed in this announcement.
For the first quarter of 2011 (ended 31st March 2011), total volumes increased 12.6% from the same period last year. Total revenues increased by 17.2% to US Dollars 1,329.8 million. With a 16.8% increase in loadable capacity, the overall load factor was 2.9% lower than the same period in 2010. Overall average revenue per teu increased by 4.2% compared with the same period last year.
The Board wishes to remind investors that this operational update for the first quarter ended 31st March 2011 is based on the Group’s internal records and management accounts and has not been reviewed or audited by the auditor. Investors are cautioned not to rely unduly on the operational update for the first quarter ended 31st March 2011. Investors are advised to exercise caution in dealing in the shares of the Company.
Source: Orient Overseas (International) Limited

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Ban stresses need for comprehensive global response to piracy off Somalia

Secretary-General Ban Ki-moon today called for a comprehensive response to maritime piracy off the coast of Somalia, saying the menace is a consequence of the overall insecurity, lack of a stable national government and underdevelopment in the Horn of Africa country.
“Piracy is not a water-borne disease. It is a symptom of conditions on the ground, including the overall security and political situation in Somalia,” Mr. Ban said in a message to a conference on piracy in Dubai, whose theme is “Global Threat, Regional Responses: Forging a Common Approach to Maritime Piracy.”

“Therefore, our response must be holistic and comprehensive, encompassing simultaneous action on three fronts: deterrence, security and the rule of law, and development. We must work with the Somalia authorities, and we must weave our counter-piracy efforts into an overall solution for Somalia,” said Mr. Ban in the message, which was delivered on his behalf by Patricia O’Brien, Under-Secretary-General for Legal Affairs.
The Secretary-General said the work of the international Contact Group on Piracy off the Coast of Somalia is vital in facilitating discussion and coordination among States, organizations, the Somalia Transitional Federal Government, the country’s regional administrations and the various navies carrying out military action.

The Contact Group was established in 2009, under a Security Council resolution, to facilitate discussion and coordinate actions among States and regional organizations to suppress piracy.

Mr. Ban pointed out that his former Special Adviser on Legal Issues Related to Piracy off the Coast of Somalia, Jack Lang, had outlined how Somalia and the international community can legally step up counter-piracy efforts. One of the measures recommended by Mr. Lang is the consolidation of international assistance for increasing prison capacity.

“Some of his recommendations are already being implemented, albeit on a modest scale, with the assistance of UNODC [UN Office on Drugs and Crime] and UNDP [UN Development Programme.],” said the Secretary-General.

He also informed the conference that the Security Council had last week decided to urgently consider the establishment of specialized Somali courts to try suspected pirates both in the Somalia and in the region, one of Mr. Lang’s recommendations.

He said that the trust fund for counter-piracy administered by the UN had also proved to be an efficient instrument. During its first year, the fund approved 12 projects worth $4.3 million, and total contributions reached $6.2 million.

“This is an encouraging start, but much more needs to be done. I urge you to attend the fundraising event being convened tomorrow by the United Arab Emirates and the United Nations, and to generously support the fund’s important work,” he said.

He deplored the violence and hostage-taking associated with piracy, saying it had taken a heavy human toll, especially for seafarers. Piracy is also distorting the Somali economy and disrupting shipping lanes that are vital to people around the world, he added.

“And the pirates’ reach is expanding. Piracy seems to be outpacing the efforts of the international community to stem it,” said Mr. Ban. “I therefore reiterate the commitment of the United Nations to work with the international community and the Somali authorities to implement a comprehensive strategy for a sustainable solution to this global menace.”
Source: UN News Center

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Container Carriers Earned Record Profits in 2010

Ocean container carriers earned an estimated $14 billion in 2010, the most profitable year in the industry's history, almost cancelling the aggregate operating loss of $15 billion in 2009.
[Read More]
Source: Journal of Commerce

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The Challenge of managing overcapacity

Chief Shipping Analyst at BIMCO, Peter Sand, spoke last week at the Inaugural Scandinavian Shipping & Ship Finance Conference in Copenhagen, Denmark on 6-7 April 2011.

The conference organisers had assembled an international line-up of industry experts and participants, all of whom stood ready to offer their expertise and views on some of the most important issues affecting international shipping finance and shipping investment today. The event provided an excellent opportunity to share the latest information and insights on key areas influencing our business.

The BIMCO presentation was focused on the order book in the main shipping segments, dry bulk, tankers and containerships as well as the current and future challenges for ship owners and shipyards.

Touching upon the latest on orderings and deliveries for dry bulk, tankers and containers, Sand said that owners must not be tempted by low newbuilding prices to order new ships, as overcapacity is already putting pressure on the freight rates. Action like that already seems to have been taken onboard, in particularly by ship owners in the dry bulk sector. They have surprised on the upside in first quarter of 2011, as the number of contracting of new ships is at the lowest level since mid-2009. 

Selected points made at the conference:• Shipping overcapacity is manageable if owners use all the tools available to them and in particular stop ordering new tonnage, but global shipbuilding overcapacity poses a major risk and lower prices could tempt owners back to the yards.
• Overcapacity is manageable, depending on demand growth and players adjusting to the new normal. That is the key. 
• The tools available for owners, which are already being used to varying degrees, include slow steaming, additional scrapping, laying up vessels, postponing deliveries and not exercising options. “There is no quick fix. But more than anything else stop ordering new vessels. We have been here before. It is a cyclical business, but this also means that the same mistakes are being made.”
• Sand pointed out that liner operators appeared to have dealt successfully with overcapacity by refraining from ordering for an extended period, slow steaming and laying ships up, but recently they appear to be reverting to focusing on market share, lay ups have dropped and they have resumed ordering new tonnage.
• There should also be more scrapping, especially as scrap prices are relatively high. There are still a lot of old bulk carriers. The “problem” is that many of them are debt-free and therefore can survive even when rates are low.

To sum up things, Sand concluded that owners must adjust to the “new normal” to survive and learn to manoeuvre in a new profit environment. Managing overcapacity will remain a challenge in coming years as owners fight for employment for their vessels and market share. Another risk factor is the growing overcapacity in shipbuilding; with newbuilding prices likely to fall further, owners could be tempted to place new orders. But by holding back signing of new contracts and by applying all the tools in the toolbox to manage overcapacity, sustainable rates could be closer than they at first hand appear.
Source: Bimco

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Ship owners back to new building orders, this time though not for dry bulk carriers

With the current and future oversupply of tonnage in the dry bulk sector finally weighing down on ship owners investment decisions, it seems that interest in the new building sector has shifted towards other types of vessels, such as container ships, offshore and gas carriers.
[Read More]

Source: Hellenic Shipping News

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Aker Solutions wins drilling equipment contracts

Aker Solutions has signed two contracts with Daewoo Shipbuilding & Marine Engineering (DSME) for the delivery of complete drilling equipment packages for two new deepwater drillships. The contracts have a total value of about $230 million.

The drilling equipment and systems will be installed on the two vessels, which are being constructed at DSME's yard in South Korea.  Each delivery has a contract value of about $115 million, and includes options for additional equipment and services.

"We are very pleased to supply another pair of Aker Solutions' drilling equipment packages to DSME and its clients," says Thor Arne Håverstad, executive vice president of Aker Solutions' drilling technologies business.

The drillship deliveries are scheduled for Q4 2013. The majority of the equipment will be delivered in 2012.

Aker Solutions will handle all major aspects of the delivery, from engineering and procurement to installation and commissioning.
Source: Aker Solutions

Posted on 4/20/2011 / 0 comments / Read More

Tap Oil abandons Zola well

Tap Oil Limited (ASX Code: TAP) provides the following update on the Zola-1 exploration well, offshore Carnarvon Basin, Western Australia.

The Zola-1/Zola-1 ST1 well is located in permit WA-290-P, immediately south of the giant Gorgon gas field in the Carnarvon Basin, Western Australia. The well is being drilled in 285m of water. 

Data gathered to date in Zola-1 and Zola-1 ST1 has confirmed a significant gas discovery in the Mungaroo formation. The well results indicate that volumetrically the greater Zola structure could be at the upper end of Tap’s pre drill estimates of 1 – 2 Tcf.

Progress

During the period from 06:00 hours WST on 13 April 2011 to 06:00 hours WST on 20 April 2011 the wireline logging program was completed and the well is currently being plugged and abandoned as planned.

Forward Plan

Complete the plugging and abandonment of the well as planned and release the rig.

Barring any unforeseen circumstances, this will be the last Zola-1 Well Drilling Update.

Background

The Zola prospect is a very large Triassic tilted fault block on trend with the giant Gorgon gas field and was one of the largest undrilled structural features in the Carnarvon Basin. The well is testing the gas potential of several top and intra Mungaroo formation sands – the primary reservoir at Gorgon.

Located close to existing and developing gas infrastructure, Zola could have multiple potential development options.  Any development at Zola could also encompass the overlying Antiope gas discovery (estimated at ~120 Bcf).

WA-290-P Joint Venture Participants

Tap (Shelfal) Pty Ltd	10.00%
Apache Northwest Pty Ltd (Operator)	30.25%
Santos Offshore Pty Ltd	24.75%
OMV Australia Pty Ltd	20.00%
Nippon Oil Exploration (Dampier) Pty Ltd	15.00%

Zola-1 Location Map

Posted on 4/20/2011 / 0 comments / Read More

AED OIL: EXPLORATION PERIOD FOR ROMBEBAI CONTRACT EXTENDED

AED Oil Limited (ASX Code: AED) is pleased to announce that AED Rombebai B.V. as 100% operator of the Rombebai Block in Papua, Indonesia has received an extension of the exploration period for its current production sharing contract (PSC) until 15 July 2013.
 
AED Oil Executive Chairman Mr David Dix said:
“This extension is a very positive event for the Company. It provides us with increased certainty of control over an asset with outstanding commercial potential. We believe this certainty will leave us well placed to attract and negotiate with potential farm-out partners who can work with us to develop this world-class prospect.”
 
The Rombebai prospect contains the Gesa structure, which is a world-class prospective resource where AED is targeting in excess of 7 Tcf of gas. In addition to the significant gas potential within Rombebai, we believe there is also the real possibility of a major oil find.
 
Rombebai has an excellent path to market with the potential to become a major liquefied natural gas development similar to the nearby BP Tangguh LNG development. AED has become increasingly optimistic about Rombebai. Our initial assessment had suggested the presence of biogenic gas only; however recent analysis of previous drilling results suggests the presence of hydrocarbons.
 
New seismic data and interpretation work has significantly increased the prospectivity of the Gesa structure. Recent studies suggest oil as well as thermal gas potential indicated by oil fluorescence in Gesa 1 and 2, and from oil analysed in hydrocarbon seeps.
 
Our 2011 geological and geographical program will focus on reprocessing data and performing detailed AVO studies to better quantify the hydrocarbon type and distribution, as well as sampling oil seeps in the region.
 
AED plans to recommence farm-out discussions with interested parties, with a view to conducting drilling operations at the Kare-1 well upon obtaining the required forestry permits.
 
AED believes that the additional time will allow the following activities to be performed before the time at which for a Plan of Development is required to be submitted in respect of the Rombebai Block:
- Drilling and testing and evaluation on the result of the Kare-1
- Drilling further exploratory/delineation well pending results from Kare-1
- Geological and geophysical studies to confirm and certify any hydrocarbon reserves discovered
- Acquisition & processing of further seismic as required.
 
Key terms of the extension are as follows:
- To continue to perform drilling operations and activities as per the current 2011 approved work program in relation to drilling the exploration well Kare-1 by November 15 2011 (a condition which may be waived if AED has made significant progress in drilling preparations for this well)
- If the exploration well is a “dry well”, AED Rombebai B.V. may apply to continue to explore the Rombebai Block for the remainder of the exploration period
- If within the exploration period, AED Rombebai B.V. discovers an economic hydrocarbon reserve to be developed, then AED Rombebai B.V. may submit an additional request for a maximum of a further twelve months effectively for the purpose of determining commerciality of the Block
- AED Rombebai B.V. will relinquish the Rombebai Block if economic hydrocarbons are not discovered during the exploration period
- The term of the PSC remains unchanged at 30 years.
Source: AED OIL

Posted on 4/20/2011 / 0 comments / Read More