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Marine Nexus Weekly Periodical- Issue 16

Oil and Gas Updates

 

Headline Statistics in Offshore Oil and Gas

Oil prices increased week on week, with Brent closing at $50.86 (3.1%), WTI settling at $47.85 (3.1%) and Dubai Crude finishing at $49.49 (2.4%). 

 

 

On the offshore market, the number of contracted jackup ICs (350+) remained the same at 143 and contracted drillships (8000+) also remained at 60. Contracted semisubs (8000+) decreased by 2 to 27. Day rates for jackup ICs (350+) increase to settle at ~$135,576 (0.2%) and drillships (8000+) increased to ~$450.555 (0.9%). Semisubs (8000+) rates remained at ~$334,828 (0%).

 

Oil prices rise on falling US crude stocks, Saudi supply cut to Asia

Oil prices increased by around 1 percent on Thursday 11th May, and Brent was firmly back over $50 per barrel, as a decrease in US fuel inventories and a bigger than expected cut in Saudi supplies to Asia tightened the market. Saudi Arabia has informed several Asian refiners of its 1st cuts in crude allocations for regional buyers since OPEC’S output reduction took place in January 2017. According to Reuters, Saudi Aramco will decrease oil supplies to Asian customers by about 7 million barrels in June.

 

OSV Offshore updates

 

ICBC Financial Leasing applies to wind up EMAS Offshore subsidiary

EMAS Offshore has announced that Hai Jiang 1401, a special purpose vehicle controlled by China’s ICBC Financial Leasing, has filed an application with the High Court of Singapore to wind up the company’s subsidiary Lewek Champion Shipping. The winding up application has been fixed for hearing on May 26. EMAS Offshore is seeking legal advice and assessing the impact of the winding up application against the group.

 

Petrobas to sell Texas refinery at a huge loss

State oil company of Brazil, Petrobas , is planning to sell an oil refinery in Pasadena, Texas. According to Reuters and Bloomberg, Petrobas is considering selling the refinery for $200m , a small portion of the $1.2bn it paid for the facility in 2006 and 2012. This is in line with the commitment of the company to sell off an estimated $21bn of its asset by the end of 2018 to reduce its debts.

 

Blue water Shipping secures the fourth Kazakhstani contract

A contract to provide module transport and logistics services for Tengizchevroil (TCO), a Kazakhstani partnership that explores develops, produces and  markets crude oil, LPG, dry gas and sulfur was secured by Denmark’s Blue Water Shipping. The new contract will require the use of up to 11 barges and 29 tugs which will be upgraded and modidied to meet specific transport requirements.

 

Saipem awarded SURF contract by ExxonMobil in Guyana

An EPCI contract for the SURF package of the proposed Liza project, a subsea development offshore Guyana has been awarded to Italian oil and gas contractor Saipem by ExxonMobil affiliate Esso Exploration and Production Guyana. The project includes the engineering, procurement, construction and installation of the risers, flow lines and associated structures and jumpers. It will also include transportation and installation of umbilicals, manifolds, and associated foundations for the production, and water and gas injection systems. Saipem will deploy 2 vessels, FDS2 and Normand Maximus for the work starting in 2019.

 

Paragon Offshore lands 3 new contracts

Paragon Offshore has announced the award of a new contract and 2 contract extension. Semi-submersible rig MSS1 has been awarded a one-well contract by Centrica for operations offshore UK, with work expected to start early August 2017. Jackup rigs B152 and Dhabi II have been awarded contract extensions by UAE-based National Drilling Company, part of ADNOC, extending each contract by 2 years through to 2019. Paragon Offshore is expected to exit chapter 11 in June after a restructuring agreement was reached earlier this month with secured and unsecured lenders.

 

SEACOR Marine set to be spun off next month

SEACOR board of director has announced a pro data dividend of the shares of SEACOR Marine common stock owned by SEACOR Holding that will lead to the complete legal and structural separation of the 2 companies next month. Seacor Marine’s stock will trade under the ticker symbol SMHI and shares of Seacor Marine Holdings will be newly issued as a dividend on June 1.

 

 

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

 

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