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Marine Nexus Weekly Periodical - Issue 14

Oil and Gas Updates

Headline Statistics in Offshore Oil and Gas

Oil prices fell week on week, with Brent closing at $51.38 (-1.4%), WTI settling at $48.65 (-1.8%) and Dubai Crude finishing at $50.48 (-0.6%). 

 

On the offshore market, the number of contracted jackup ICs (350+) increased by 2 to 143 and contracted drillships (8000+) had increased by 1 to 60. Contracted semisubs (8000+) remained the same at 27. Day rates for jackup ICs (350+) increase to settle at ~$135,861 (2.3%) and drillships (8000+) increased to ~$451.828 (0.2%). Semisubs (8000+) rates remained at ~$353,692 (0%).

 

President Trump signs order to implement “America-first” offshore energy strategy (28th April)

On 28th April, US President Donald Trump signed an executive order on offshore energy which will review marine areas that have been off limits. The order will reverse previous US President Obama ban on oil and gas leasing in the US Arctic and along the Atlantic seaboard.

 

Extension of OPEC- led cuts could end oil glut by end-2017 (28th April)

If OPEC and its partners extends the deal to reduce crude output, Reuters survey forecast that it could help supply and demand in the oil market to fall into balance. However, possibility of increased output outside OPEC by US shale oil producer could hinder the rebalancing process. According to secondary sources, OPEC compliance seems to be at high level and it is likely to remain so until OPEC’S meeting in May to discuss on 2nd half of the year strategy. It is reported that key Middle East producers seem willing to restrict crude output for another 6 months in the anticipation of seeing crude price close above the $60 barrel mark.

 

OSV Offshore updates

Shearwater GeoServices awarded seismic contract (24th April)

Shearwater GeoServices have been awarded a seismic contract from TGS for the Crean 3D project. Value of the contract is not known but GC Rieber Shipping would stand to benefit in terms of strengthening Shearwater’s in the EAME Region by about 4 additional vessel months.

 

Ensco secures multiple contracts and extensions (25th April)

Ensco, an offshore drilling contractor have managed to extend and clinch a list of new Jack-up rig contract. Ensco 106 was awarded a four-well contract with Sapura Energy offshore Malaysia, Ensco 121 has gotten a three-well contract with INEOS in the North Sea which is expected to start in July and Ensco 67 was awarded a one-well contract with Ankor Energy in the US Gulf of Mexico, expected to start in June. Contract that was given extension comprised of Ensco 92’s contract with ConocoPhillips in the North Sea where contract was extended by more than 4 years to December 2022, Ensco 107 which received a 3 month extension to July 2017 from Chevron and both Ensco 121 and Ensco 80 extended to April 2017 in the North Sea.

 

TechnipFMC awarded subsea contract by ExxonMobil. (26th April)

TechnipFMC was awarded a contract by an affiliate of ExxonMobil Corporation for the engineering, manufacture and delivery of the subsea equipment for the proposed Liza deep water project offshore Guyama. The awards’ scope includes 17 total enhanced vertical deep water trees and associated tooling, as well as 5 manifolds and associated controls and tie-in equipment.

Atlantic Navigation and Oceanus awarded $45.2m decommission project (26th April)

A $45.2 million project for the purchase and removal of decommissioned offshore and onshore facilities was awarded to Singapore’s Atlantic Navigation Holding and its subsidiary, Atlantic Ship Management and South Korea’s Oceanus by a Middle Eastern National oil company. The project which is expected to start in June 2017 and completed in 18 months will be managed and operated by both parties and Atlantic Navigation will be providing about 7 vessel to support the project.

 

Prosafe wins Statoil contract (27th April)

Prosafe has won a contract from Norwegian energy firm Statoil. Prosafe will provide a semi-subsermisible vessel Safe Zaphyrus for Phase 1 of the Johan Sverdrup hook-up and commissioning project in the Norwegian sector of the North Sea. Value of the contract will be between $51m and $53m. Contract duration is available for nomination and will be firmed up by Statoil in Early August 2017. Currently, there are 3 scenarios available for the contract duration:

1) 12 month firm period from late 2nd quarter of 2018

2) 12 month firm period from 3rd quarter of 2018 with 4 months of option

3) 5 months firm period from 2nd quarter of 2018  plus 6 months of options and 4 months firm period from 2nd quarter of 2019 plus 4 months of options

 

Keppel secures $40m engineering support contract (28th April)

A contract worth close to $40m from PTSC Mechanical & Construction to provide engineering, technology and construction management support services for the TLWP to be built in Vietnam was awarded to Keppel FloaTEC LLC, a wholly owned subsidiary of Keppel Offshore & Marine. Work scope for the Wellhead Platform would require hull and mooring engineering, topsides basic engineering and construction management support services.

 

Source: Bloomberg, Reuters, US EIA, Tradewinds, Offshore Shipping Online, Splash24/7, Ship&Bunker

 

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