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Sunday, September 27, 2020

Aramco News

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Second Wave of Floating Storage Triggered by Ailing Oil Market

A stalled global economic recovery from the coronavirus pandemic is leading to a fresh build-up of global oil supplies, pushing traders including Trafigura to book tankers to store millions of barrels of crude oil and refined fuels at sea again.The use of so-called floating storage onboard tankers comes as traditional onshore storage remains close to capacity as supplies outpace demand.Trading house Trafigura has chartered at least five of the largest tankers each capable of storing 2 million barrels of oil…

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Bahri Puts LNG Tanker Plan on Hold

Saudi Aramco’s shipping division Bahri has put on hold plans to charter up to 12 liquefied natural gas (LNG) tankers after Sempra Energy delayed its decision on whether to proceed with an LNG export project in Texas, two sources said.Bahri issued an expression of interest (EOI) last year to charter the vessels from 2025 in Saudi Aramco’s first foray into LNG as part of the state oil giant’s plan to become a major global player in the gas market.In May last year, Aramco signed a 20-year agreement to buy LNG from Sempra Energy’s planned Port Arthur export terminal and also agreed to buy a 25% eq

MPA Awards Two Bunker Licenses

The Maritime and Port Authority of Singapore (MPA) has awarded two new bunker supplier licences to Minerva Bunkering and TFG Marine, following its call for applications for new licences in December 2019.Bunkering services in the Port of Singapore and oil trading remain resilient despite the global COVID-19 pandemic. Bunker sales in Singapore grew 5.4%, from 12.07 million tonnes in the first quarter of 2019 to 12.72 million tonnes in the first quarter of 2020.MPA and Enterprise Singapore (ESG) welcome the entry of Minerva Bunkering and TFG Marine…

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Booking Frenzy Sends Tanker Rates Soaring

The cost to transport oil on supertankers soared on Thursday as major producers scrambled to secure vessels to ship more crude in a bid to regain market share and buyers took advantage of plunging oil prices.Freight charges to ship oil in very large crude carriers (VLCCs) from the Middle East, which is home to the largest OPEC producers, to China, the world's top crude oil importer, nearly doubled overnight.VLCC tanker rates along the busy Middle East Gulf to China route jumped to about $160…

 Image: Saudi Aramco

Sempra LNG, Aramco Sign Deal

North American energy infrastructure company Sempra Energy and Saudi Aramco's Aramco Services Company, signed an Interim Project Participation Agreement for the Port Arthur LNG export project under development in Jefferson County, Texas.According to a press release, the IPPA represents another milestone for both companies after having signed a heads of agreement in May last year for the purchase of 5 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) and a 25% equity investment in the Port Arthur LNG project.Jeffrey W.

Image: Saudi Aramco

Saudi Aramco, Korea Shipbuilding Roll-out New JV

Korea Shipbuilding & Offshore Engineering (KOSE), a manufacturer of oil tankers, cargo and passenger vessels, and warships, and Saudi Arabian Oil Company (Saudi Aramco) plans to set up a joint venture to build engines.According to South Korea’s Yonhap News Agency the JV will break ground for the plant in the King Salman International Complex for Maritime Industries and Services in the kingdom’s eastern coast in September 2020, and the project is set to be completed in May 2022.The Korean company is working to build a shipyard at the complex through a separate JV with Saudi Aramco…

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Bahri Looks to Make LNG Foray

Saudi Aramco's shipping arm Bahri has issued an expression of interest (EOI) to charter up to 12 liquefied natural gas (LNG) tankers from 2025, its first foray into the superchilled fuel, industry sources said on Monday.No further details were immediately available and Saudi Aramco declined to comment. EOIs are preliminary enquiries that may or may not turn into full-fledged orders.According to Bahri's website, the national shipping carrier of Saudi Arabia has six business units dealing in oil…

Saudi Aramco delivers crude oil cargo at Pengerang Deepwater Terminal 2 in Malaysia. Photo: Saudi Aramco

Aramco Signs 34 EPC Contracts Worth $18bn

Saudi Aramco has signed 34 engineering, procurement and construction (EPC) related contracts (worth over US$18bn) for projects such as the Marjan and Berri field incremental development program in Saudi Arabia, during Q3 2019, according to GlobalData.The most important is ADNOC’s US$3.6bn contract for the supply of one million metric tons of casing and tubing to support exploration and production activity in United Arab Emirates (UAE).The global oil and gas industry has witnessed a substantial boost from those contracts activity in the Middle East…

Pic: Hyundai Heavy Industries

HHI Adds $1.2Bln to Coffer Selling Stake in Refining Unit

South Korea's top shipbuilding conglomerate Hyundai Heavy Industries (HHI) Group said that its holding company HHI Holdings Co will receive 1.4 trillion won ($1.24 billion) in proceeds next month from the sale of a stake in its refining unit, Hyundai Oilbank.In April, state-owned Saudi Aramco had agreed to buy a 17 percent stake in HHIs oil processing operations.Hyundai Heavy Industries Holdings said in a regulatory filing that it had signed a sales agreement with Saudi Aramco…

Indian Prime Minister, Narendra Modi meeting the King Salman bin Abdulaziz Al Saud of Saudi Arabia, in Riyadh, Saudi Arabia on October 29, 2019. Photo: PIB

India, S. Arabia in New Petro Relationship

India and Saudi Arabia have decided to expand its ‘energy relationship’ into next phase to include Saudi partnership in building additional crude oil storage reserves in India, a new refinery on the west coast of India and investment in retail sector in petroleum.Saudi Arabia is its second-biggest supplier of crude oil after Iraq. It sold 40.33 million tonnes of crude oil to India in 2018-19 fiscal, when the country had imported 207.3 million tonnes of oil.India imports around 18 per cent of its crude oil from the Kingdom…

AbdulAziz Somali and Majed Saber from Saudi Aramco’s Marine Department brief visitors. Photo: Saudi Aramco

RECSO Hosts First Global Oil Spill conference

The Regional Clean Sea Organization (RECSO), an oil industry co-operative organisation in the Middle East, has hosted First RECSO Enviro Spill Conference and Exhibition.In delivering the keynote speech at the opening ceremony, Abdulhakim A. Al-Gouhi, vice president of Industrial Services with Saudi Aramco, called on members to collaborate to protect the pristine Gulf environment through prevention, preparedness, and response.“We come together to demonstrate our unlimited commitment toward protecting the marine environment from any harmful effects of pollution…

EXXON's Rotterdam Refinery (CREDIT: EXXON)

Oil Stockpiling Builds Ahead of IMO 2020 Rules

S-Oil, South Korea's third-largest refiner, said on Wednesday that regional refining margins are expected to improve in the fourth quarter on the back of inventory build-up ahead of implementation of stricter rules on marine fuels in 2020.The refiner, whose top shareholder is Saudi Aramco, said in an earnings statement, strong demand for heating oil was also expected to support refining margins, along with the International Maritime Organization (IMO)'s stricter shipping fuel…

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Disruptions to Global Shipping Industry Explained

Oil shipping rates are soaring following a series of sanctions on a Chinese transportation giant and limitations placed on movement of Venezuelan crude oil tankers.WHAT HAS HAPPENED TO SHIPPING RATES?The cost of chartering a supertanker to send crude oil from one country to another is rising sharply. A South Korean importer paid more than $12 million in shipping costs for one crude shipment from the U.S. Gulf Coast. This was followed by Friday's tentative charter of another crude…

Photo: Saudi Aramco

Aramco Rapidly Restores Production Capacity

Saudi Arabia's oil and gas giant Saudi Aramco announced that it will fully restore its production capacity by the end of September, in light of the Saturday's drone attacks that caused disruptions on around half of the country's oil capacity.Prince Abdulaziz Bin Salman, Minister of Energy, and HE Yasir Rumayyan, Chairman of Saudi Aramco, Mr. Nasser said: “The terror attacks on our plants at Abqaiq and Khurais were timed to create maximum damage to our facilities and operations.

Amin H. Nasser. Photo: Saudi Aramco

Aramco Suspends 50% of Production

Saudi Arabia has temporarily halted production at two Aramco oil facilities that were attacked by Yemeni rebels, interrupting about half of the company’s total output.Saudi Aramco said the production of 5.7 million barrels of crude a day had been suspended after drone attacks on the world’s largest oil processing plant at Abqaiq – near Dammam in the Eastern Province – and the country’s second-largest oilfield at Khurais, about 200 kilometers away.Earlier, the oil giant said that emergency crews contained fires at its plants.After visiting the incident locations, Amin H.

File image of a typical DP World terminal operation. CREDIT: DP World

DP World’s Topaz, P&O Merger Complete by Year-end

Port operator DP World's planned merger of its P&O Maritime and recently acquired Topaz Energy and Marine businesses is expected to be completed by the end of the year, Topaz CEO Rene Kofod-Olsen said on Monday.DP World bought Dubai-based oil services company Topaz in July with the intention of combining it with P&O Maritime as part of efforts to diversify beyond its core port operations to other marine-related sectors.The merged entity, to be known simply as P&O, will give Topaz…

Image: Saudi Aramco

Saudi Aramco, World’s Most Profitable Co, Again

Saudi Aramco announced that its net income was $46.9 billion for the first half 2019, compared to $53.0 billion for the same period last year. That easily outstripped corporate titans such as Apple Inc, Amazon.com Inc and other big oil producers, many of which suffered larger declines in profit as output and crude prices fell. Saudi Aramco President & CEO Amin H. Nasser, said: “Despite lower oil prices during the first half of 2019, we continued to deliver solid earnings and strong free cash flow underpinned by our consistent operational performance…

Photo: Goltens

“Cautious Optimism” for Goltens Dubai

The global downturn in offshore energy is well recorded, a downturn which has had impact on various arms of the energy and marine supply chain. While Goltens has felt the downturn like many other companies, it is reporting 'cautious optimism' in the Middle East premised on new international regulation and the need for shipowners to upgrade ships.Almost all the offshore vessels in Dubai are operating, and many have come in from Asia to do the same, but following the offshore crash in 2016, operators are delaying maintenance.

The VLCC MJAD, reported by Reuters as one of the vessels attacked. CREDIT: MarineTraffic.com / © piet verspui

Saudi Tankers Among Those Hit off UAE Coast

Saudi Arabia said on Monday that two of its oil tankers were among those attacked off the coast of the United Arab Emirates and said it was an attempt to undermine the security of crude supplies amid tensions between the United States and Iran.The UAE said on Sunday that four commercial vessels were sabotaged near Fujairah emirate, one of the world's largest bunkering hubs lying just outside the Strait of Hormuz, but did not describe the nature of the attack or say who was behind it.The UAE had not given the nationalities or other details about the ownership of the four vessels.

Image: Baker Hughes

BHGE Inks 3-year Contract with Saudi Aramco

Saudi Aramco has awarded major stimulation and well-testing contract to Baker Hughes, a GE company (BHGE). BHGE will deliver a comprehensive well services solution including all cased-hole wireline logging, perforation, well testing, stimulation, fracturing and associated intervention services.By integrating discrete products, services and capabilities into a single offering, BHGE will help Saudi Aramco reduce time, costs and complexity while increasing efficiency.The three-year…

Abdullah Aldubaikhi (Photo: Bahri)

Bahri Targets Acquisitions in Asia, Middle East

Saudi Arabia's Bahri is targeting acquisitions in Asia and the Middle East as the exclusive oil shipper for state energy giant Saudi Aramco seeks to expand its reach, the chief executive said on Wednesday.Bahri is the world's largest owner and operator of very large crude carriers (VLCCs). Saudi sovereign wealth fund the Public Investment Fund (PIF) owns 22 percent of the company and Aramco has a 20 percent stake."We are looking at multiple acquisitions in the Middle East and Asia worth tens of millions of dollars…

The terminal consists of a tank farm and offshore facilities to receive, store, and load Arabian Light and Arabian Super Light crude oil. (Photo: Saudi Aramco)

Yanbu Oil Terminal Boosts Export Capacity

State oil giant Saudi Aramco said on Wednesday that the Yanbu South Terminal has added 3 million barrels per day of crude oil to the company's west coast export capacity after a rehabilitation and upgrade programme."The terminal, located south of Yanbu along the west coast of Saudi Arabia, consists of a tank farm and offshore facilities to receive, store, and load Arabian Light and Arabian Super Light crude oil," Aramco said on its website.(Writing by Rania El Gamal; Editing by Dale Hudson)

Image: Rowan Companies plc

Rowan Gets New Contract by Turkish Petroleum

Offshore driller Rowan Companies has been awarded a two-well contract for its Rowan Norway jack-up rig in the Mediterranean Sea by Turkish Petroleum.Rowan Companies announced that the Rowan Norway, an N-Class ultra-harsh environment jack-up rig, has been awarded a two-well contract in the Mediterranean Sea by Turkish Petroleum with an estimated duration 100-140 days.The contract is expected to commence in late 2018. The Rowan Norway is currently warm-stacked in the United Kingdom sector of the North Sea.

Image: Saudi Arabian Oil Co.

China Harbour Engineering to Build Berri Field in Saudi Arabia

Saudi Arabian oil giant Saudi Aramco has awarded a contract to China Harbour Engineering Arabia for the construction of two  drilling islands under the company’s Berri Increment Program (BIP).The objective of the BIP is to produce an additional 250,000 barrels per day of Arabian Light crude oil from the Berri Oil Field to reach 500,000 barrels per day to maintain Saudi Aramco’s maximum sustained capacity by early 2023.A signing ceremony to mark the contract award was held in Dhahran.

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Gunvor Halts Refinery Upgrade for New Shipping Fuels

Global energy trader Gunvor Group has put on hold plans to upgrade its Rotterdam refinery that intended to make the plant more competitive ahead of new global rules on shipping fuel quality, it said on Tuesday, citing market conditions.Global oil and shipping companies are looking at options to cope with the new standards that come into effect in 2020.The U.N. International Maritime Organization (IMO) will ban ships using fuel with a sulphur content higher than 0.5 percent, compared to 3.5 percent now…

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Saudi Arabia Resumes Oil Exports through Red Sea Lane

Top oil exporter Saudi Arabia said on Saturday it has resumed all oil shipments through the strategic Red Sea shipping lane of Bab al-Mandeb.Saudi Arabia halted temporarily oil shipments through the lane on July 25 after attacks on two oil tankers by Yemen's Iran-aligned Houthi movement.A statement by the Energy Ministry said shipments had resumed on Saturday."The decision to resume oil shipment through the strait of Bab al-Mandeb was made after the leadership of the coalition has taken necessary measures to protect the coalition states' ships…