Marine Nexus Weekly Periodical - Issue 15
Oil prices fell week on week, with Brent closing at $49.63 (-1.6%), WTI settling at $46.73 (-2.0%) and Dubai Crude finishing at $48.54 (-4.2%).
On the offshore market, the number of contracted jackup ICs (350+) remained the same at 143 and contracted drillships (8000+) had increased by 1 to 60. Contracted semisubs (8000+) decreased by 1 to 26. Day rates for jackup ICs (350+) increase to settle at ~$133,333 (1.6%) and drillships (8000+) decreased to ~$446.528 (-0.9%). Semisubs (8000+) rates decreased to ~$334,828 (-5.3%).
Environmentalists sue to block President Trump’s executive order on Arctic and Atlantic drilling
The order from US President Donald Trump to put Arctic and Atlantic waters back for oil and gas leasing is set to be challenged in court by Environmental Group according to source from Bloomberg. The lawsuit was presented in Federal court in Alaska on Wednesday by the League of Conservation Voters, the Wilderness Society, the Sierra Club and 7 other groups. They aim to stand by former Barack Obama’s ban on oil and gas leasing in the US Arctic and along the Atlantic seaboard.
OPEC, non-OPEC see need to extend supply-cut pact: Saudi governor
OPEC and other countries are converging on the need to extend pact beyond June to help clear a supply glut as said by Saudi Arabia’s OPEC governor on Friday 5th May. Oil prices have risen but supply are still high and production from countries that have yet to agree to the cut, including the United States have been increasing. A formal decision on the need to extend production agreement reached last year will thus be made when OPEC ministers and non-OPEC producers meet in Vienna on May 25.
Diamond Offshore secures semi-sub contracts
Diamond Offshore have managed to get contracts for 2 semi-submersible drilling. The contract for Ocean Monarch is scheduled to start in late 1st quarter of 2017 with addition of 9 months backlog which will keep it contracted through 2018. Diamond offshore have also executed a new 2 year term contract with Apache for the Ocean Patriot in the North Sea, which is schedules to start operation for the new program in the 2nd quarter of 2018.
Marco Polo Marine on the brink as refinancing talks fail
The restructuring and refinancing proposal of Singapore’s offshore vessel operator Marco Polo Marine which was announced last month has met resistance from its lender. Marco Polo was reported to have been active in engaging bank and financial institutions with regards to the proposal which involves fresh funding from strategic investors. The halt with negotiations has caused Marco Polo board to stop its trading of company’s shares on the Singapore Exchange.
Ecopetrol announces big gas find at Caribbean well shared with Anadarko
Ecopetrol, a state oil firm in Colombia has made the country’s biggest gas find in 28 years at a southern Caribbean Sea well. The find is at a depth of between 3675 and 4415 meters below sea level in adjacent blocks near to the Kronos-1 and Purple Angel-1 wells.
Icon offshore and UNW merger falls through
The acquisition of Icon offshore and Orkim by UMW is confirmed to have fallen through on the 4th of May 2017. This is after UNW Oil and Gas announced in January 2017 that it would buy over Icon Offshore from HOSB, a subsidiary of Ekuinas Capita. UMW Oil and Gas and Icon Offshore have since suspended their shares for trading on Thursday while awaiting the release of a material announcement by UMW Oil and Gas.
Cost reduction the focus v Bourbon Offshore as over 100 vessel remain stacked
With over 100 vessel still stacked at the moment, cost reduction will still be a primary focus for France’s Bourbon offshore as the offshore support vessel sector has yet to see any signs of recovery. With a $242,3m in adjusted revenue from the 1st quarter, down 7.7% from the 4th quarter of 2016, Bourbon have said that it will continue to maintain its strategy to concentrate on the utilization rate of fleet In operation and to stack vessel proactively.
DeepOcean awarded EPCI contract by Statoil
An EPCI contract for wear protection on the risers at the Troll C platform in the Norwegian Sea has been awarded to DeepOcean by Statoil. The offshore work is scheduled to start in the 3rd quarter of 2017 and it would also cover the design, engineering, procurement and fabrication of the wear protection for the risers on the Troll C platform.
Dong Energy settles dispute with Technip and DSME
A settlement agreement was reached regarding a dispute related to an EPC contract for the Hejre platform between Dong energy and supplier consortium which consist of Technip France and Daewoo Shipbuilding and Marine Engineering. Under the settlement agreement, the supplier consortium will be fully accountable for the disposal of the Hejre platform, which will be dismantled by DSME. Dong energy will not have any further responsibilities or liabilities with regards to the platform.
Source: Bloomberg, Reuters, US EIA, Tradewinds, Offshore Shipping Online, Splash24/7, Ship&Bunker