Headlines Friday 16th November 2018
Tidewater and GulfMark complete merger after shareholder approval
Houston-based offshore support vessel owner Tidewater has completed its business combination with its compatriot GulfMark Offshore, creating an OSV player with the world’s largest fleet. Following the completion, Tidewater has appointed a new CFO.
The two companies announced their decision to combine and create a new player with the world’s largest fleet in the OSV sector back in July 2018. It was decided in October that the meetings of the shareholders of both companies would be held on November 15, 2018. At the companies’ respective stockholder meetings held on Thursday, November 15 Tidewater and GulfMark stockholders overwhelmingly supported the business combination, with relevant proposals being approved by over 99% of the votes cast by Tidewater stockholders and GulfMark stockholders, respectively, in person or represented by proxy, not including abstentions, Tidewater said in a statement.
According to the company, all necessary conditions to the closing have been satisfied and the business combination has been consummated. In connection with the completion of the transaction, GulfMark common stock ceased trading on the New York Stock Exchange as of the market close on November 15, 2018.
Fincantieri to Extend Three Windstar Cruise Ships
Italian shipbuilder Fincantieri has signed a contract to extend three cruise ships owned and operated by Seattle-based Windstar Cruises. Under the EUR 200 million (USD 227.1 million) worth contract, the shipbuilder would undertake an extension and modernization project on Windstar’s cruise ships Star Breeze, Star Legend and Star Pride.
The works, expected to be partially financed through an export credit facility guaranteed by Italy’s export credit agency SACE, will be carried out by the Fincantieri Ship Repair and Conversion at the shipyard in Palermo.
The project, called the “Star Plus Initiative”, is scheduled to start in spring of 2019 with the construction of the first mid-body section. The works, which will require an average stop of about four months per unit at the shipyard, are expected to finalize by November 2020, with the delivery of the third and final vessel. Fincantieri’s work will include three main activity areas, namely, lengthening of the mid-body by around 26 meters; the total renewal of nearly all the propulsion machinery including main engines, replacement of electrical generators and automation systems and other equipment; and extensive modernization of public areas, passenger cabins and open decks.
The three ships involved in this program currently have a length of 134 meters, with a tonnage of some 10,000 tons and a capacity of 212 passengers. On completion of these projects each ship will have a length of 160 meters, a tonnage of around 13,000 tons, and will have a capacity to accommodate 312 passengers.
UK's Ofcom fines EE, Virgin Media for overcharging customers
Britain’s Ofcom has fined EE and Virgin Media for overcharging some phone and broadband customers who ended their contracts early, the media regulator said on Friday.
EE, Britain’s biggest mobile operator, will have to pay 6.3 million pounds and Liberty Global-owned (LBTYA.O) cable company Virgin Media 7 million pounds for breaking consumer protection rules, the regulator said. Ofcom said about 400,000 EE customers who ended their contracts early had to pay early exit penalties of up to 4.3 million pounds, while about 82,000 Virgin Media customers were overcharged about 2.8 million pounds.
The regulator said its investigation found that BT Group Plc’s (BT.L) EE did not clearly set out the exit charges its mobile customers on “discount contracts” would have to pay in case they dropped out early. EE has volunteered to conduct an in-depth review of its processes and systems following the investigation on overcharging users, Ofcom said.
Last month, Ofcom announced a separate investigation into whether mobile operators EE and Vodafone Group Plc (VOD.L) had provided accurate information about the coverage of their 3G and 4G mobile networks. BT and Virgin Media were not immediately available for comments.
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Headlines Thursday 15th November 2018
Uber loses $1bn in three months as growth slows
The ride-hailing giant is battling to show it will one day be profitable ahead of an eagerly awaited stock market flotation. Uber has reported a quarterly loss of $1.07bn (£820m) as it pumped money into bikes, scooters and food deliveries. July to September's losses were $177m (£136m) higher than the quarter from April to June - and come as the ride-hailing giant prepares for a keenly anticipated flotation next year.
Revenue rose 5.4% over the third quarter and gross bookings increased by 6% to reach $12.7bn (£9.78bn), but these figures represent a slowdown in growth when compared with the same period a year ago. It was the third quarter in a row that Uber's quarter-on-quarter bookings growth has remained in single digits after double-digit growth through the whole of 2017. The company, based in San Francisco and valued at $76bn (£58.5bn), is seeking to expand in the haulage, food delivery and electric bikes markets as growth slows in its ride-hailing app, which is now a decade old.
Uber faces pressure to show it can still grow enough to become profitable as it prepares for an initial public offering some time next year.
Chief financial officer Nelson Chai said: "We had another strong quarter for a business of our size and global scope."
He emphasised the importance of "high-potential markets in India and the Middle East where we continue to solidify our position". In the UK, Uber has faced controversy over drivers' rights and a bruising battle over its London licence after failings in the way it operates identified by the capital's transport authorities.
NYK Steps into the Future with Super Eco Ship 2050
Japanese shipping major NYK Group has given the maritime world a taste of things to come as it unveils a new concept of an emission-free ship dubbed the NYK Super Eco Ship 2050. The concept is part of company’s Staying Ahead 2022 with Digitalization and Green management plan and incorporated the latest green and digital technologies. The design fits well the industry decarbonization efforts aimed at halving greenhouse gas emissions by 2050.
The concept ship has been crafted as a 2050-model pure car and truck carrier (PCTC) in cooperation with MTI and Elomatic, an engineering and consulting company based in Finland.
NYK said the power needed to operate the ship has been cut by 70 percent by remodeling the hull to decrease water friction, reducing the weight of the hull, introducing fuel cells for electric propulsion, and relying on other highly efficient propulsion devices.
Instead of fossil fuels, the ship would be powered by solar energy and hydrogen produced from renewable energy sources, all of which would lead to a reduction of CO2 by 100 percent and thus result in a zero-emission vessel.
Cairn hits dust in UK North Sea well
Oil company Cairn Energy has failed to find commercial hydrocarbons in its Ekland well in the UK North Sea and has decided to farm out its Chimera prospect, also located in the UK North Sea.
In an operational update on Thursday Cairn said that its commitment exploration well on license P2184 in the UK North Sea, targeting the Ekland prospect, failed to encounter commercial hydrocarbons. The well, drilled using the Ensco 101 jack-up drilling rig, has been plugged and abandoned.
Cairn has a 45% interest in license P2184 and is the operator. Cairn’s partners in the license are Zennor with a 30% interest and Petrogas with the remaining 25% interest.
It is also worth mentioning that Cairn Energy is one of the partners in Azinor Catalyst-operated Agar-Plantain Prospect in the UK North Sea. As reported earlier today, Azinor Catalyst made an oil discovery at its 9/14a-17B well and associated side-track on the Agar-Plantain Prospect. Cairn has an option to take over operatorship with respect to future activity on the Agar-Plantain project.
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Headlines Wednesday 14th November 2018
Asia's weakening economies, record supply threaten to create oil glut
Oil traders’ worries over record supplies arriving in Asia just as the outlook for its key growth economies weakens have pulled down global crude benchmarks by a quarter since early October.
Ship-tracking data shows a record of more than 22 million barrels per day (bpd) of crude oil hitting Asia’s main markets in November, up around 15 percent since January 2017, and an increase of nearly 5 percent since the start of this year.
Much of this oil was ordered ahead of U.S. sanctions against Iran that were imposed this month, as refiners prepared for a sudden drop in supply.
But with unexpectedly broad exemptions granted by Washington that allow Asia’s main oil consumers to continue buying crude from Iran, the overall supply drop has not materialized.
Global supply has instead surged, led by soaring output from the world’s three-biggest producers - the United States, Russia and Saudi Arabia - who in October broke through joint output of 33 million bpd for the first time, meeting more than a third of total oil consumption.
That surge has so far been met by healthy demand, not only in Asia’s main emerging economies of China and India, but also in the mature markets of Japan and South Korea.
Now, though, the rising supplies are threatening to turn into a glut, triggering a 25 percent sell-off in spot crude contracts LCOc1 CLc1 since early October as financial traders pulled money out of oil markets.
Analysts warn the situation may get worse, with increasing signs of a slowdown across Asia’s biggest economies.
“Momentum still appears to be slowing across the region, reflecting a combination of tighter financial conditions and slowing global trade,” said Frederic Neumann, co-head of economic research for Asia at HSBC in Hong Kong.
Oil exploration bids in UKCS up by almost 50% since 2016
Bids to explore for oil and gas in areas including the North Sea have risen by almost 50% since 2016, according to new figures.
The Oil and Gas Authority (OGA) said 36 applications covering 164 blocks in frontier areas of the UK Continental Shelf (UKCS) had been received in the 31st Offshore Licensing Round.
The OGA said "strong and diverse" interest had come from "multinationals to micro businesses". The bids will now be assessed. Some areas, such as the East Shetland Platform, have never been previously licensed.
Following technical evaluation of the applications, awards to successful applicants are expected to be made in the second quarter of 2019.
However, the OGA said it remained concerned by low levels of drilling activity.
SSE looking to spin-off renewable energy assets in UK and Ireland as it confirms big drop in first-half profit
The FTSE 100-listed firm said SSE Renewables will comprise around 4 gigawatts of SSE's existing renewable assets such as hydropower, onshore wind and several stakes in offshore wind projects
The spin-off plans came as SSE reported an almost 41% slump in adjusted pre-tax profits to £246.4mln for the six months to September 30
SSE plc (LON:SSE), the power firm which is looking to merge its UK retail division with Innogy's npower, said on Wednesday that it is looking to create a new company that will include its renewable energy assets in the UK and Ireland as it confirmed a big drop in first-half profit.
The FTSE 100-listed firm said the new company - to be known as SSE Renewables, - will comprise around 4 gigawatts of SSE's existing renewable assets such as hydropower, onshore wind and several stakes in offshore wind projects.
The group said the new entity will provide greater visibility of assets and future earnings for investors and improve its ability to raise finance for projects.
The spin-off plans came as SSE reported an almost 41% slump in adjusted pre-tax profits to £246.4mln for the six months to September 30, down from £416.7mln a year earlier, as operating profits at its Wholesale business plunged by 98%, while retail profits dropped by 13%.
In September, the energy company had warned that its profits would be hit as calm weather cut renewable output and a summer heatwave curbed demand.
Alastair Phillips-Davies commented: “The operating environment for energy companies is likely to remain complex and challenging. SSE is taking decisive action to deal with all of the key issues and making material progress in its core businesses of regulated energy networks and renewables.”
In spite of the profit slump, SSE has raised its interim dividend by 3.2% to 29.3p per share and said intends to recommend a full-year dividend of 97.5p and to deliver the five-year dividend plan it set out in May 2018.
In early morning trading, investors took heart from the pay-out news, pushing SSE shares 1% higher to 1,142.50p.
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Headlines Tuesday 13th November 2018
Corallian set to drill Wick well in December with Colter to follow
UK-based Corallian Energy has revealed its plans to drill the Wick prospect located off the UK in December 2018 with the Colter well to follow.
Corallian, the operator of the P2235 and P1918 licenses which contain the Wick and Colter prospects, respectively, said on Tuesday that drilling of the Wick well would begin during December 2018.
The company said that the Department for Business, Energy and Industrial Strategy, Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) has completed its review of the Environmental Statements, the representations received from consultees and the additional information provided by Corallian for the proposed Wick and Colter wells. OPRED has advised the Oil and Gas Authority of its in-principle agreement to the issue of the relevant consent for both projects.
“There are several regulatory approvals and notifications still required before the consenting process is completed for the wells. When all the necessary approvals have been obtained, the wells will be drilled as a back-to-back program using the Ensco 72 jack-up rig. Following completion of the Wick well, the rig will be mobilized from the Moray Firth to the English Channel to drill the Colter well,” the company said.
According to Corallian, Fraser Well Management Limited will be the well operator for the drilling of the wells. Orbis Energy Limited is the environmental consultant to the projects.
In a separate announcement on Tuesday, United Oil & Gas, Corallian’s partner on the Colter well, said that the well would be drilled as soon as operations were completed on the Wick well, subject to further approvals.
Colter will appraise a historic discovery that lies immediately to the south of Europe’s largest onshore oil field at Wytch Farm.
The discovery was made in 1986 by well 98/11-3, which encountered a 10.5-meter oil column in the Sherwood Sandstone reservoir. The same play proved to be productive at Wytch Farm where over 450mmbbls have been produced to date.
Unidted added that the new well will be drilled updip of 98/11-3 targeting significant potential that has been identified following reprocessing of 3D seismic data. The gross unrisked mid-case oil contingent resources in the section proven up by the 98/11-3 well have been estimated at 4 mmbbls, with gross unrisked mean-case prospective resources estimated at 15 mmbbls in the rest of the structure.
United Oil & Gas CEO, Brian Larkin, said: “As with our first well, the successful Podere Maiar on the Podere Gallina license onshore Italy, Colter has an excellent address, lying on the same play as Wytch Farm, and will appraise a historic discovery, which we believe could hold in aggregate up to 19 mmbbls of gross contingent and prospective resources.”
United’s CEO also said that the company was looking forward to new activities on the Walton-Morant license offshore Jamaica, which includes the high-grade Colibri target, the North Sea Crown oil discovery, and a potential well at Waddock Cross in the Wessex Basin in H1 2019.
IMRF, The Nautical Institute Join Forces for Safety at Sea
The International Maritime Rescue Federation (IMRF) and The Nautical Institute have signed a memorandum of understanding (MOU) to work together on projects that support their shared objective to improve safety at sea.
The agreement commits both organisations to exchanging information and technical cooperation in areas of mutual interest, and to harmonise training standards and guidelines across the industry while jointly promoting issues which relate to the safety of mariners and others at sea.
“Safety at sea and supporting those in peril is a key component of maritime tradition and professionalism. Through this MOU we will increase awareness in shared areas of concern and be stronger at promoting best practice,” Captain John Lloyd, CEO of The Nautical Institute, said.
Representatives from the IMRF and The Nautical Institute will also participate in each other’s workshops and seminars and will work together in the future on joint proposals and initiatives.
The IMRF is the international charity that brings together the world’s maritime search and rescue organisations to share lifesaving ideas, technologies and experiences, to work to prevent loss of life in the world’s waters, and The Nautical Institute is the international representative body for those involved in the control of seagoing ships.
New Scots green laws 'needed post-Brexit'
Scotland must pass its own laws to protect nature and wildlife after Brexit, a coalition of conservation groups has said.
The 35 groups said an Environment Act for Scotland will be needed after the UK leaves the EU.
Scottish Environment Link's (SEL) members include the Marine Conservation Society, the National Trust for Scotland and RSPB Scotland.
It has launched a Fight for Scotland's Nature campaign to promote its ideas.
SEL estimates that about 80% of environment laws in force in Scotland come from the EU.
In a statement, it said: "If and when Brexit happens, Scotland (along with the rest of the UK) will lose the unrivalled support and enforcement roles of the European Commission, European Court of Justice and other EU bodies.
"Alarmingly, with only a few months to go, there is uncertainty about what will replace this.
"This is why Scottish Environment Link is pushing the Scottish government to fight for Scotland's nature and commit to a world class environment act before it's too late."
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Headlines Monday 12th November 2018
Pound slides amid fears over no-deal Brexit
The pound has fallen sharply against the US dollar on renewed worries about the political turbulence around Brexit. Sterling slipped by more than a cent to less than $1.29 during overnight trading on Asian markets and the declines were extended later as London opened, taking the currency close to $1.28 and about 1% lower on the day. It came amid weekend reports that more ministers were on the verge of quitting the government and added to falls for the currency at the end of last week, before which the pound had been trading at more than $1.31.
Sterling has been gripped by volatility amid uncertainty about whether the UK will leave the EU next March without a trade deal in place. Credit ratings agency Moody's said on Monday that the risk of a no-deal withdrawal had risen. Experts including the Bank of England expect a sharp shock to the economy if there is such a withdrawal and the UK's independent fiscal watchdog has drawn comparisons with the impact of the three-day week in 1974.
Meanwhile, a report on Monday from accountancy firm BDO found that business confidence in the manufacturing sector was at a 16-month low. It pointed to a "lack of clarity on the shape of Britain's future trading relationships" which had caused a general weakening of optimism across the economy.
Sterling's latest struggles come as former foreign secretary and leading Brexiteer Boris Johnson called on his former Cabinet colleagues to stage a mutiny over Theresa May's Brexit plans.
He claimed in a newspaper column that the prime minister was "on the verge of a total surrender" to Brussels. At the same time there has been pressure from MPs on the other side of the debate. Mr Johnson's younger brother Jo Johnson resigned last week saying the UK was "barrelling towards an incoherent Brexit" and calling for a fresh referendum.
Former education secretary Justine Greening - who backed Remain in the 2016 vote - told the BBC on Monday that Mrs May's plans represented "the worst of all worlds" and that MPs would reject it. Jasper Lawler, head of research at London Capital Group, said: "As pressure mounts on May, Brexit and politics will be critical once again to the pound this week."
BP’s well off Nova Scotia disappoints
The Canadian subsidiary of the British oil major BP has not found commercial quantities of hydrocarbons in the Aspy well offshore Nova Scotia. BP’s partner Hess said last Friday that the drilling of the Aspy exploration well had reached a total depth of 7,400 meters, without encountering commercial quantities of hydrocarbons.
The Aspy D-11 well is part of BP’s Scotian Basin Exploration Project. The well was drilled in Exploration Licence (EL) 2434 in some 330 kilometers southeast of Halifax, Nova Scotia. The Scotian Basin Exploration Project is a proposed exploration program that includes seismic acquisition and drilling across four exploration licenses 2431, 2432, 2433, and 2434.
BP holds a 50 percent interest in the licenses and is the operator while its partner Hess holds the remaining 50 percent. The British oil company resumed drilling operations at the Aspy D-11 well location in late July after an earlier stoppage due to a subsea leak. The repairs and integrity testing were since completed, and it was determined that the cause of the leak was a loose connection of the booster line on the riser. Also, Canadian authorities approved BP’s plans in August to drill a sidetrack well at the Aspy D-11 well site.
World’s 1st LNG-Powered Cutter Suction Dredger Hits the Water
The world’s first LNG-powered cutter suction dredger has been launched at the Royal IHC shipyard in Krimpen aan den Ijssel in the Netherlands.
The vessel, named Spartacus, is owned by Belgian dredging, environmental and marine engineering group DEME. The dredger boasts a total installed capacity of 44,180 kW, making it the most powerful cutter suction dredger in the world.
Spartacus has four main engines that can run on LNG, marine diesel oil (MDO) and heavy fuel oil (HFO). The two auxiliary engines also incorporate dual-fuel technology. The vessel also features a waste heat recovery system, a one-man operated dredge control and a heavy-duty cutter ladder that can reach a dredging depth of 45 m.
“IHC is known for its willingness to push boundaries to develop and produce high added-value equipment and vessels for our customers. The combination of power, size and innovation makes Spartacus a perfect example of such a project. DEME was once the first dredging company to put a ‘jumbo’ dredger in the market which has led to a new generation of dredging vessels.
“As Spartacus will soon be the world’s largest and most powerful LNG-powered CSD in operation, DEME will again have set a new standard in the market,” IHC’s CEO Dave Vander Heyde said.
Once completed, Spartacus will join the dual-fuel dredgers Minerva and Scheldt River that were delivered to DEME in 2017. In addition, in October the company ordered two new trailing suction hopper dredgers and two split barges, reinforcing the fleet in 2020.
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