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…
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
Rosneft to Build Port for Its Vostok Oil Project
Russian state oil giant Rosneft plans to build a port with maximum annual capacity of 115 million tonnes of oil for its Vostok Oil project in the Russian Arctic, the RIA news agency quoted the company as saying on Tuesday.Rosneft said in a statement previously on Tuesday that the Vostok Oil project could be supplying 25 million tonnes of oil in 2024, 50 million tonnes in 2027 and up to 115 million tonnes in 2030.Vostok Oil unites Rosneft’s projects in northern Russia, including the Lodochnoye…
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…
BP, Total Pact for Adnoc LNG Supply
The state oil giant Abu Dhabi National Oil Company (ADNOC) signed agreements with BP and Total to book the majority of its liquefied natural gas (LNG) production up to the first quarter of 2022.With the transactions, ADNOC LNG has continued to expand its footprint into new regions and markets, said a press release.“With these new supply agreements, ADNOC LNG has shown that it can react quickly and decisively to changing market conditions while ensuring the security and quality of delivery,’’ said ADNOC LNG CEO, Fatema Al Nuaimi.
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…
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.
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)
Exxon Mobil Eyes Major Investment at Singapore Refinery
Exxon Mobil Corp is considering a multi-billion dollar investment at its Singapore refinery, the company's largest, ahead of new global shipping fuel regulations starting in 2020, a senior executive said on Wednesday."We are currently assessing a multi-billion project in our integrated manufacturing facility here in Singapore," Matt Bergeron, vice president of Asia Pacific Fuels Business at Exxon, said at a bunkering conference."Should the project proceed, we plan to implement…
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.
Total Pact with Stena Drilling for Laggan Well
Aberdeen-based Stena Drilling has announced that it has signed a deal with French oil giant Total to drill one well at the west of Shetland, Laggan field.A press release from Stena Drilling said: "We have signed a contract with Total E&P UK Ltd. for the Stena Don in 2019 to drill one well on the Laggan field located west of the Shetland Islands in water depths of up to 650m."The Stena Don is currently working for Total E&P UK on an Exploration well which is also located west of the Shetland Islands.
Sinopec, Zhejiang to Build LNG Terminal in China
China's Sinopec Corp has teamed with Zhejiang Energy Group Co Ltd on a 3 million tonne-per-year liquefied natural gas (LNG) terminal in east China, with the first phase set for operation at end-2021, the state oil giant said on Wednesday.The project, to be built in Wenzhou of Zhejiang province, includes four tanks each able to store 200,000 cubic meters of LNG, a berth to dock tankers of 30,000 cubic meters to 266,000 cubic meters, as well as a 26-km (16-mile) pipeline.The two…
Middle East Oil & Gas Shipping Routes are at Risk
Saudi Arabia said on Thursday it was suspending oil shipments through the Red Sea after Yemen's Iran-aligned Houthis attacked two crude tankers, underscoring risks caused by the conflict in the world's top oil exporting region.Iran, in its row with the United States over sanctions, has also threatened to block the Strait of Hormuz, the other major strategic shipping route for oil from the region and the main route for Iranian crude exports.Below are facts about region's shipping routes:Bab al-MandebAny move to block the Bab al-Mandeb…
Hong Kong's Richest Man Li Ka-shing Retires
Li Ka-shing to retire after annual general meeting on May 10; will stay on as senior adviser to the group. Hong Kong's richest man, Li Ka-shing, announced his retirement as chairman of CK Hutchison Holdings Ltd on Friday, bringing to a close a rags-to-riches story that made him a hero in the freewheeling capitalist hub. Li, 89, will retire after the annual general meeting on May 10, the ports-to-telecoms conglomerate said in a filing to the Hong Kong bourse, passing the mantle to his eldest son Victor Li, who was named successor several years ago.
Guyana Government Goes with ExxonMobil
Guyana's Minister of Natural Resources, Raphael Trotman said while there is no perfect contract, the government is comfortable with the terms and conditions spelt out in the Stabroek Petroleum agreement between itself and ExxonMobil and prefers a long-term, stable relationship with one exploration company rather than several. “We recognised that we had with us a company that had made a discovery, had a binding contract with the government and people of Guyana which had been signed in 1999…
Pakistan LNG Import Project Consortium Folds -Hoegh LNG
A consortium behind a liquefied natural gas (LNG) import project in Pakistan, including oil giant Exxon Mobil, France's Total and Qatar Petroleum, has been dissolved, shipping company Hoegh LNG said on Thursday. Hoegh LNG was due to supply the project's ship-based import terminal, a floating storage and regasification unit (FSRU), where LNG brought in by tanker is converted back to gas to feed into Pakistan's grid. The other six members of the consortium were Japan's Mitsubishi and Turkish developer Global Energy Infrastructure (GEI).
Russia May Force Rosneft to Buys its Own Shares
Russia's government wants to sell a state stake in oil giant Rosneft to "real investors" but may force the company to buy its own shares to prop up the country's budget, First Deputy Prime Minister Igor Shuvalov said on Thursday. If Rosneft buys its own shares, it will be only a temporary measure to channel extra revenues to the budget by the end of the year, Shuvalov said. In such case Rosneft will later sell the stake to investors, he said. The government seeks to carry out privatisation for the benefit of the state budget, Shuvalov said.
Indian Oil Giant May Scrap LNG Vessel Tender
GAIL India, largest state-owned natural gas processing and distribution company in India, will likely scrap the tender for hiring LNG ships after failing to negotiate acceptable terms with bidders in what would hurt India's ambition to build high-tech LNG carriers at home under the Make in India programme, reports the Economic Times. The oil marketing giant had issued a tender last September seeking to charter at least 9 LNG vessels to bring home from the US up to 5.8 million tonne of gas annually from early 2018.
Malaviya Seven Detained in Aberdeen on Claims of 'Slavery'
The offshore supply ship, MV Malaviya Seven detained, at the Port of Aberdeen, UK, by the International Transport Federation [ITF] with the support of the Port State Control, MCA – was operating under what the shipping union, RMT, has described as a ‘blatant example of modern day slavery’. The Malaviya Seven will stay at port until the workers are paid, according to the Maritime and Coastguard Agency (MCA). The RMT union claimed that 15 Indian crew members in the Mumbai-registered vessel have not been paid for nearly two months, with some having been without pay for longer.
Iran Strikes $2.4bn Ship Order with Korea
Iran has placed orders worth around $2.4 billion with South Korean shipyards for the construction of ships to carry Iran’s oil and petrochemical products, The Wall Street Journal says. The orders have been placed by the Islamic Republic of Iran Shipping Lines (IRISL) and the oil producer Iranian Offshore Oil Company (IOOC). The Korean companies involved in the case are Hyundai Mipo Dockyard, which is a subsidiary of shipbuilding giant Hyundai Heavy Industries Group, as well as Daewoo Shipbuilding and Marine Engineering Company.
Italy's Eni Arrives Arctic as Shell Departs
As Shell retreats from the Arctic, the Italian oil giant Eni is making final preparations for its own oil exploration venture in the Norwegian Arctic, reports the Guardian. Eni has vowed to press ahead with oil production - a $5.5bn (£3.6bn) project - in the Norwegian Arctic. in the Arctic by the end of the year, undeterred by Shell’s decision to abandon its quest for Arctic oil. The project - Goliat - is set to become the world’s northernmost offshore oil field to come on stream…
Obama Defends Arctic Oil Drilling
United States' President Barack Obama defends his decision to allow Royal Dutch Shell to drill for oil in the Arctic Ocean. He insisted that there was no contradiction between his climate change agenda and Arctic drilling. “I share people's concerns about offshore drilling,” Obama said, while emphasizing that Shell bought its exploration leases before he took office. His televised message did not stop several environmentalist organizations from criticizing the contradictions in his words and policies.
'Kayaktivists' to Launch Blockade of Shell Icebreaker
A small group of protesters and activists are gathering at the Cathedral Park boat ramp in Portland, preparing to stay for a 24-hour vigil as they wait for Royal Dutch Shell Oil's icebreaker ship, the MSV Fennica, to depart from Portland for the Arctic, reports Reuters. Following the lead of protesters in Seattle who tried to block ships headed for Shell's planned oil exploration in the Chukchi Sea, the Portland "kayaktivists" said they would conduct a vigil overnight on the Willamette River, which runs through downtown Portland.
Biggies to Rule Ocean, says Maersk CEO
The WSJ reports that the Danish container-shipping group is ordering more megaships even as freight rates remain low. Reason? The world’s biggest container-shipping companies are set to dominate seaborne trade over the next few years, leaving little space for small and midsize operators to compete. This opinion was expressed by A.P. Møller-Mærsk A/S Chief Executive Nils Andersen. Maersk Line, a unit of the Danish shipping and oil giant, is the world’s largest container operator, controlling 15.3% of all capacity, according to shipping data provider Alphaliner.
Environmentalists Sue BOEM over Shell Plan to Drill in Arctic
Ten major environmental groups filed a lawsuit on June 2 challenging the federal Bureau of Ocean Energy Management's (BOEM) approval of Royal Dutch Shell's exploration plan for drilling in the Chukchi Sea this summer. The lawsuit seeks a review of permits granted to Royal Dutch Shell PLC by the BOEM for exploratory drilling in the Chukchi (chuk-CHEE’) Sea off Alaska’s northwest coast. Shell paid $2.1 billion for its Arctic leases. The oil giant intends to drill six exploratory wells this summer at a site about 75 miles northwest of the Alaska hamlet of Wainwright.
Anti-Arctic Drilling Activists Hold 'Shell No' Protest in Seattle
Seattleites took a dramatic stand, er paddle, against Arctic oil drilling. Local Native Americans and concerned citizens took to kayak and canoe and surrounded a giant, Arctic-bound Royal Dutch Shell oil drilling rig currently making a layover in the Port of Seattle. The group that planned the event, called the “Paddle in Seattle,” said Saturday’s demonstration began a three-day “massive peaceful resistance,” the Associated Press reports. The group plans to block access to the oil giant’s rig parked in the Port of Seattle’s Terminal 5 and delay preparations for drilling on Monday.