Headlines Friday 17th May 2019
Singapore Classifies Scrubber Residues as Toxic Industrial Waste
The Maritime and Port Authority of Singapore (MPA) has classified residues arising from exhaust gas cleaning systems as toxic industrial waste (TIW). Therefore, the authority said that ships planning to dispose of these residues, classified as TIW under Singapore’s environmental public health regulations, need to engage toxic industrial waste collectors (TIWCs).
Under the rules, TIW must be collected and managed by licensed toxic industrial waste collectors.
“Ships that wish to dispose of exhaust gas cleaning residues in Singapore are required to engage a licensed TIWC for the collection and disposal of such residues,” MPA said.
TIWCs can arrange for the residues to be offloaded in packaged form or in intermediate bulk container tanks directly to trucks and MPA licensed harbour craft for ships at berth and at anchorages, respectively.
Klaveness Combination Carriers Orders Two More CLEANBUs
Norwegian shipping company Klaveness Combination Carriers has declared options for the construction of two new combination carriers in China. The company decided to order its seventh and eighth CLEANBU combination carriers with Jiangsu New Yangzi Shipbuilding. The CLEANBU newbuilds, that would secure a 30-40% reduction in CO2, SOx and NOx emissions compared to standard tankers, are scheduled for delivery in January and February 2021.
Following the declaration, the company’s fleet will grow to 17 vessels within the first quarter of 2021. Klaveness Combination Carriers holds options for further vessels.
“We are pleased to grow the CLEANBU fleet further to eight vessels by early 2021 which will strengthen KCC’s service offering to the oil and petrochemical industry and enable the further expansion of the climate friendly CLEANBU service to new geographical markets,” Engebret Dahm, CEO of Klaveness Combination Carriers, said.
The new ships were ordered after the completion of a private placement with gross proceeds of NOK 350 million (USD 39.9 million) on May 15.
KCC will apply for listing at the Oslo Stock Exchange/Oslo Axess, with the first day of trading expected to be on or about May 22, 2019.
DEME Wins Hornsea Two Jackpot
DEME Offshore has won contracts to transport and install foundations and wind turbines on Ørsted’s 1.4GW Hornsea Two offshore wind farm in the UK. The Hornsea Two offshore wind farm is located approximately 89 kilometres off the Yorkshire coast and will comprise 165 Siemens Gamesa 8.4MW wind turbines installed on monopile foundations.
DEME Offshore will transport and install the 165 foundations and carry out scour protection. The monopiles and transition pieces will be installed by the company’s new DP3 offshore installation vessel Orion which will enter the fleet by the end of the year.
Turbine installation will be carried out with offshore installation vessels Sea Challenger and Sea Installer. The installation should be completed in early 2022. The total contract value is approximately over EUR 200 million, DEME said.
Bart De Poorter, General Manager at DEME Offshore, said: “We are delighted with this major contract award from Ørsted, which once again highlights our vast track record and technical expertise in providing innovative solutions for the offshore wind industry. We look forward to working with Ørsted and to leverage our joint expertise to successfully and safely deliver this major project.”
Brexit: Talks between Tories and Labour set to close with no deal
Talks between the Conservatives and Labour to find a compromise over Brexit are set to end without agreement. The parties' negotiating teams have been meeting for six weeks to break the deadlock, but will now have to discuss options to put to Parliament instead.
On Thursday the PM promised to set a timetable for leaving Downing Street following the next Brexit vote in June. Ex-Foreign Secretary Boris Johnson is the latest MP to say he will run in the Tory leadership election to follow.
The UK was due to leave the EU on 29 March but the deadline was pushed back to 31 October after MPs rejected Theresa May's proposed deal - the withdrawal agreement negotiated with the EU - three times.
That prompted attempts to find a way to end the impasse through cross-party talks between Labour and the Conservatives. But BBC Newsnight political editor Nicholas Watt said Tory whips had given up hope of finding agreement with the Labour leader on a Brexit deal. He said on the other side of the negotiating table "Labour has fears about the durability of a deal agreed with a weak prime minister".
At a shadow cabinet meeting on Tuesday, some Labour frontbenchers called for an immediate halt to the talks, raising questions over whether Mr Corbyn could win approval from his party for any deal. Labour negotiators have been seeking a permanent and comprehensive customs union with the EU after Brexit, meaning that there would be no internal tariffs (taxes) on goods sold between the UK and the rest of the bloc.
But many Brexit-supporting Tory MPs want the UK to negotiate its own trade deals on goods with other countries around the world, which would be impossible with a customs union in place. The prospect of compromising on issues such as this in the prime minister's talks with Labour has provoked anger in the Conservative parliamentary party.
Headlines Thursday 16th May 2019
Pacific Basin, MAN Energy Solutions Ink Service Contract for 111 Bulkers
Hong Kong-based dry bulk shipping company Pacific Basin Shipping has signed a service agreement with engine maker MAN Energy Solutions covering a fleet of 111 bulkers. All of the vessels involved are owned by Pacific Basin and managed by its in-house technical-management team.
As informed, the contract includes field, workshop and technical services on MAN main engines, generators and turbochargers aboard the bulkers. MAN PrimeServ will manage the contract from Hong Kong in close cooperation with the PrimeServ global network.
“We expect this service agreement will help to maximise further our operational and cost efficiencies, while also enhancing the long-standing partnership between MAN and Pacific Basin,” Jay K Pillai, Fleet Director at Pacific Basin, commented.
“We believe that this agreement will improve the predictability of Pacific Basin’s operational costs, minimize maintenance costs as well as optimize the planning of services and spare-part deliveries,” Sarath Prasannan, Managing Director at MAN Energy Solutions Hong Kong, said.
As of January 31, 2019, Pacific Basin operated over 200 dry bulk ships of which it owns 111 with the remainder chartered.
Icebreaker Moves Closer to Construction
The Lake Erie Energy Development Corp. (LEEDCo) has reached an agreement with the staff of the Ohio Power Siting Board (OPSB) regarding the construction and operation of its Icebreaker Wind energy project.
Now that LEEDCo has reached an agreement with staff, the next step is to seek approval from the Siting Board. The agreement has been filed with the Siting Board. LEEDCo officials expect the permit to be issued later this year.
The six-turbine Icebreaker, which would be the first freshwater offshore wind energy installation in North America, would be located eight miles off the coast of downtown Cleveland. The project has already earned approvals from 13 local, state and federal regulatory agencies on a number of environmental and other requirements.
Construction could begin as early as 2021 although Icebreaker must first receive the permit from the Siting Board to move forward with installation.
“While there is more work to be done before we can formally proceed, this is a significant milestone for us,” said LEEDCo President Dr. Lorry Wagner.
“This new agreement details the extensive regulations that will govern this project and confirms the Ohio Department of Natural Resources important, ongoing oversight role. We appreciate the agency’s mission to protect wildlife and we look forward to winning approval of the final permit we need in order to construct Icebreaker and thus position Cleveland to becoming a leader in the booming clean energy economy.”
The 20.7MW Icebreaker will comprise six MHI Vestas turbines with a nameplate capacity rating of 3.45MW.
Maersk Drilling keeping its rig fleet busy as more work comes in
Danish offshore drilling contractor Maersk Drilling is keeping its drilling rig fleet busy as new contracts and extensions pour in for the driller. In its fleet status report published on Thursday Maersk Drilling said that several new contracts and extensions were signed during the first quarter of the year as well as after the end of the quarter.
In 1Q 2019, Eni has exercised a 35-day option for the Maersk Voyager drillship in direct continuation of the rig’s contract in Ghana. The contract with Eni is set to end in June 2019.
It is worth reminding that the Voyager drillship has recently drilled a well for Eni on the Akoma exploration prospect located offshore Ghana. The well was drilled in a water depth of 350 meters and reached a total depth of 3790 meters. It proved an estimated volume between 550 and 650 bcf of gas and 18-20 mmbbl of condensate.
In addition, Maersk Voyager has been awarded a 70-day contract with Noble Energy in Equatorial Guinea. The contract is expected to start in 2Q 2019 and end in July 2019. The contract also includes one one-well option.
In Equatorial Guinea, Noble Energy is working on making a Final Investment Decision for the Alen gas project in 2019. During the first quarter of 2019, the Maersk Viking drillship has been awarded more time with its current client. Namely, Aker Energy exercised two options of 41 days and 49 days respectively on direct continuation of the rig’s contract in Ghana. This contract with Aker Energy ends in May.
To remind, Aker Energy in April concluded the appraisal drilling campaign at its operated Deepwater Tano Cape Three Points (DWT/CTP) block offshore Ghana for which it used the Maersk Viking drillship.
In addition, Maersk Viking has won a one-well contract with three additional one-well options with AGM Petroleum Ghana. One of the three options has been exercised. The contract is set to start this month and end in August 2019.
The jack-up rig Maersk Resolve has been awarded a a 60-day contract with Wintershall Noordzee in the Netherlands. This deal started in March and will last until August 2019.
The rig has been also been awarded a 180-day contract, plus two one-well options, with Wintershall Noordzee in the Netherlands from August 2019 until February 2020. Furthermore, CNOOC has exercised the first of nine one-well options for the Maersk Innovator jack-up rig in the UK, which expires in October 2019. Expected duration is 75 days. The company now has eight one-well options remaining under the contract.
The jack-up Maersk Resolute has been awarded a 49-day extension by Petrogas, which will keep the rig working in the Netherlands until the end of September 2019.
At the end of the first quarter 2019, Maersk Drilling’s backlog was $2.2 billion. As previously reported, after the end of the first quarter 2019, the Maersk Deliverer semi-submersible has been awarded a three-year contract with Inpex for drilling at the Ichthys gas and condensate field in the Browse Basin offshore Western Australia. The estimated value (revenue) of the three-year contract is $300 million, including mobilization. The rig’s current contract with Eni in Timor Leste is set to end this month.
Finally, the Maersk Discoverer semi-submersible drilling rig has been awarded a 100-day extension of its current contract with BP in Egypt, which will keep the rig working until the end of October 2019.
Hunterston port 'masterplan' revealed promising £140m boost
A "masterplan" for the Hunterston industrial complex in North Ayrshire has been revealed by its owners. Peel Ports claims the transformation of the former coal-handling port will support more than 1,700 jobs and add £140m to Scotland's economy.
It has launched a public consultation on creating a new industrial centre on the site. But local campaigners say heavy industry will affect tourism and the environment.
The Hunterston Port and Resource Centre (Parc) site comprises a 300-acre brownfield footprint, deepwater dock, and rail connections.
Potential uses suggested for the site include;
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a liquid natural gas terminal
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combined cycle gas turbine power station
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a train manufacturing plant
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facilities for marine construction and decommissioning
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and a location for plastics recycling and storage.
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The terminal was established on the Firth of Clyde in the mid-1970s, first servicing Scotland's steel industry and later importing coal for power stations but closed in 2016 with the loss of 120 jobs.
Peel, which acquired it along with many other assets on the Clyde coast when it bought Clydeport in 2003, sees a future for it in oil and gas structure decommissioning and as a renewables hub.
After revealing its plans, it has invited North Ayrshire residents and businesses to share their opinions about potential uses of the site in a six-week consultation.
Headlines Wednesday 15th May 2019
Mitsubishi Shipbuilding Christens New LNG Carrier for JERA
Japan’s Mitsubishi Shipbuilding has named the latest Sayaringo STaGE LNG carrier being built for Trans Pacific Shipping 6 Ltd, a joint venture of JERA and NYK Line. The new 80,300 dwt ship was named Bushu Maru in a christening ceremony held at the Koyagi Plant of the Nagasaki Shipyard & Machinery Works on May 14.
Completion and delivery is scheduled for June 2019, after which the unit would be put into service transporting LNG for the Freeport LNG Project in the U.S. state of Texas, in which JERA is participating, among other ventures.
The Bushu Maru features improvements in both LNG carrying capacity and fuel performance, due to the adoption of a more efficient hull structure and an innovative hybrid propulsion system. It has a length of 297.5 meters, a width of 48.9 meters and a total tank holding capacity of 180,000 m3.
This is the second vessels being constructed for JERA’s Freeport LNG Project.
In January 2019, Mitsubishi Shipbuilding christened JERA’s first carrier for the LNG project in Texas. Named Nohshu Maru, the vessel was delivered to Trans Pacific Shipping 5 Ltd, a joint venture of JERA and Mitsui O.S.K. Lines, in February.
Heerema Scoops Hollandse Kust Zuid Deal
Heerema Marine Contractors has won a contract by Petrofac for the transport and installation of the Alpha platform at the Hollandse Kust Zuid offshore wind farm zone. Heerema will perform the installation by one of its newest vessels, the semi-submersible crane vessel Sleipnir.
According to the company, during the tender preparations the feasibility of the jacket and topside installation by Sleipnir in the shallow water location close to shore was explored.
The 2,800t jacket for the Alpha substation is expected to be installed in the second quarter of 2020, with the 3,800t topside following in the fourth quarter of next year. The platform will go into service in 2021.
"Heerema is very excited to support Petrofac and TenneT in the development of this project in the North Sea. It also gives us the opportunity to contribute to the realization of the Dutch government's clean energy targets," said CEO Koos-Jan van Brouwershaven.
Heerema said it is also running for the installation of the Beta platform, the second substation at Hollandse Kust (Zuid), with the contract expected to be awarded later this year.
The 1.4GW Hollandse Kust (Zuid) zone comprises four offshore wind farms that will be connected to the two offshore substations. Vattenfall's Hollandse Kust Zuid 1 & 2 wind farms will be connected to the Alpha substation.
Mozambique approves Rovuma LNG development plan
The government of Mozambique has approved the development plan for the Rovuma LNG project led by Exxon and Eni. Two liquefied natural gas trains are planned with a combined annual capacity of over 15 million tons.
The project is designed to produce, liquefy and market natural gas from three reservoirs of the Mamba complex located in the Area 4 block offshore Mozambique, two of which straddle the boundary with neighboring Area 1.
Area 4 is operated by Mozambique Rovuma Venture S.p.A. (MRV), an incorporated joint venture owned by Eni, ExxonMobil, and CNPC, which holds a 70 percent interest in the Area 4 exploration and production concession contract. Galp, KOGAS and Empresa Nacional de Hidrocarbonetos E.P. each hold a 10 percent interest.
“The development plan approval marks another significant step toward a final investment decision later this year,” said Liam Mallon, president of ExxonMobil Upstream Oil & Gas Company. “We will continue to work with the government to maximize the long-term benefits this project will bring to the people of Mozambique.”
The Rovuma LNG partners have said they have developed a series of plans to support community development in line with the government’s priorities. During the production phase, the Rovuma LNG project expects to provide up to 17,000 tons of liquefied petroleum gas (LPG) per annum in Mozambique from Area 4 resources, which is currently about 50 percent of the country’s LPG imports, and will dramatically improve access to energy, the partners said in a statement on Tuesday.
According to Eni, the Area 4 partners also plan to distribute up to 5,000 LPG burners and cooking stoves in the Afungi area to replace the burning of wood.
“The expected production from the Area 4 block will generate substantial benefits for Mozambique and the Area 4 partners,” said Alessandro Puliti, Eni’s Chief Development, Operations & Technology Officer. “The development plan details our commitment to train, build and employ a local workforce and make gas available in support of Mozambique’s industrialization.”
LNG production from the project is expected to begin in 2024.
Brexit: MPs to vote on implementation bill in early June
Theresa May is giving MPs another chance to vote on Brexit in early June - whether or not the government and Labour have reached a deal by then. A vote on the bill that would pave the way for Brexit was "imperative" if the UK was to leave the EU before MPs' summer recess, Downing Street said. Labour sources say they will not back the bill without a cross-party deal.
If Mrs May's deal is defeated, Number 10 said the UK is set for no deal or for Article 50 to be revoked. That is because the EU will not grant a further extension beyond 31 October, says BBC assistant political editor Norman Smith. Attempts to find a cross-party compromise began after the PM's Brexit deal was previously rejected three times by MPs. But government sources have told the BBC that there would not be a fifth attempt if Mrs May's deal is voted down for a fourth time.
The prime minister and Mr Corbyn met on Tuesday evening to discuss the ongoing talks. Number 10 described the discussions as "both useful and constructive".
A spokesman said Theresa May had made clear the government's "determination to bring the talks to a conclusion and deliver on the referendum result to leave the EU".
A Labour party spokesman said Mr Corbyn had "raised doubts over the credibility of government commitments, following statements by Conservative MPs and cabinet ministers seeking to replace the prime minister".
He also said the Labour leader had called for "further movement" from the government and that the prime minister's team had agreed to bring back "further proposals tomorrow".
Bringing the EU Withdrawal Agreement Bill forward would allow the prime minister to push ahead with her ambition of delivering Brexit before the summer - despite the lack of agreement so far in the cross-party talks, said BBC political correspondent Iain Watson. He added that the proposed timetable nevertheless would allow "more space and more time" for the talks to continue.
'What has changed?'
However, Brexit Secretary Steve Barclay said: "It is now time for Parliament to make a decision, reflecting the manifestos of both the Conservative and Labour parties at the last general election and to deliver Brexit in the way that the public were promised."
In the 2017 general election, the two main parties promised in their manifestos to respect the result of the Brexit referendum. Brexiteer and Conservative MP Steve Baker said bringing the bill forward "over the heads" of DUP MPs - on whom the government relies for a majority - would "eradicate the government's majority".
"What is the government thinking?" he asked.
Headlines Tuesday 14th May 2019
Five More Ocean Carriers Join Digital Container Shipping Association
One month since it was created, the Digital Container Shipping Association (DCSA) has welcomed five more members with the aim of enabling digital standardization in the container shipping industry. Shipping giants CMA CGM, Evergreen Line, Hyundai Merchant Marine (HMM), Yang Ming Marine Transport Corporation and ZIM Integrated Shipping Services have now become members of DCSA.
They are joining the association’s four founding members — A.P. Moller – Maersk, Hapag-Lloyd, Mediterranean Shipping Company (MSC) and Ocean Network Express (ONE). It has been confirmed that CMA CGM would become a founding member of the association and hence, part of the supervisory board. The four remaining container shipping companies are joining DCSA as members, subject to regulatory approval.
With nine of the largest container shipping lines in the world, both from Asia and EMEA, DCSA now represents a substantial part of the industry. Specifically, members represent 70% of the market once regulatory approval is obtained.
“We are thrilled to have additional members joining the DCSA on our journey to drive standardization and interoperability in the industry, with CMA CGM joining as a founding member,” Thomas Bagge, CEO of DCSA, commented.
“It is critical for our success that the standards developed will be implemented, and the commitment and engagement of many container shipping lines is therefore crucial,” he pointed out.
DCSA gets Chief Operating Officer
As of July 1, 2019, Henning Schleyerbach takes on the role of the Chief Operating Officer (COO) of DCSA. Schleyerbach comes from the position of Senior Director Customer Relationship Management at Hapag-Lloyd and will together with Bagge form the leadership team of DCSA, working on the development of standards for the industry.
“In Henning Schleyerbach we have won another strong industry profile, who as COO will drive DCSA’s operational activities,” Andre Simha, Chairman of DCSA supervisory board and Chief Information Officer of MSC, said.
“With Henning Schleyerbach and Thomas Bagge, DCSA has a strong leadership team in place which is supported by all founding members and represents container shipping at its best across all aspects,” Simha continued.
DNV GL Certifies SeeOs Offshore Substation Concept
Atlantique Offshore Energy, part of Chantiers de l’Atlantique, has secured certification from DNV GL for its SeeOs modular electrical substation concept for offshore wind farms. According to the company, the Certification Report and Statement of Compliance is a crucial step in approving the design of electrical offshore substations, validating the underlying assumptions and the studies executed so far which will benefit future projects.
The Scalable Efficient Evolutive Offshore Station (SeeOs) can accommodate any power requirement, from 200MW up to 1GW+, and can be installed on monopile, jacket or floating foundations depending on the offshore site. It decreases delivery time and project CAPEX costs by 20%, as well as optimizes O&M costs up to 20%, Atlantique Offshore Energy stated.
Specific requirements, such as shunt reactors, harmonic filters, back-up generators, living quarters, enclosed structure or external gangways, workshops or warehouses, can be implemented as add-ons to the base module, the company added.
Eni makes light oil discovery offshore Angola
Italian oil company Eni has made a new light oil discovery in Block 15/06, in Angola’s deep offshore. The well was drilled on the Ndungu exploration prospect. According to Eni’s statement on Tuesday, the new discovery is estimated to contain up to 250 million barrels of light oil in place, with further upside.
The Ndungu-1 NFW well is located a few kilometers from Eni’s West Hub facilities, and has been drilled by the Poseidon drillship in a water depth of 1076 meters and reached a total depth of 4050 meters.
The Poseidon drillship was previously owned by Ocean Rig until the driller was acquired by Transocean in December 2018. The drillship started working for Eni in Angola in November last year following a drilling campaign in Namibia where it had drilled for Chariot and Tullow. Eni hired the Poseidon for a firm four-well program.
Eni said that the Ndungu-1 NFW proved a single oil column of about 65 meters with 45 meters of net pay of high quality oil (35° API) contained in Oligocene sandstones with excellent petrophysical properties. The result of the intensive data collection indicates a production capacity in excess of 10,000 barrels of oil per day.
Ndungu is the first significant oil discovery in Angola inside an already existing Development Area. It certifies the concrete validity of the recent legislation, promoted through the Presidential Legislative Decree No. 5/18 of 18 May 2018, which defines a favorable legal framework on additional exploration activities within existing Development Areas.
Being located about 2 km from the Mpungi field, the new discovery can be fast-tracked to production due to the proximity to the subsea production system. Production will be routed to the N’goma FPSO, therefore extending the West Hub’s production plateau, Eni explained.
Ndungu is the fourth discovery of commercial nature since the Block 15/06 Joint Venture re-launched its exploration campaign in mid-2018. It follows the discoveries of Kalimba, Afoxé and Agogo; the four discoveries altogether already estimated to contain up to 1.4 Billion barrels of light oil in place. The appraisal phase of these discoveries will target their additional upside.
To remind, Eni announced “a major oil discovery” in Block 15/06, in the Agogo exploration prospect, in Angola’s deep water in March 2019.
Eni said that these important discoveries further demonstrate the upside potential of the block and the effectiveness of the proprietary technologies that Eni used and will use to explore Block 15/06. The Block 15/06 Joint Venture, composed by Eni (operator, 36.8421%), Sonangol P&P (36.8421%) and SSI Fifteen Limited (26.3158%), will work to fast track its development.
Brexit: PM's negotiator to explore changes to future EU relations
Theresa May's Brexit negotiator is on his way to Brussels to explore the scope for changes to the agreement on the UK's future relations with the EU. Olly Robbins is looking to see whether a key demand being made by Labour in cross-party talks can be satisfied. But as cabinet discusses the state of the talks, Theresa May is facing calls from senior Conservative MPs not to agree a compromise with Jeremy Corbyn. Ex-defence secretary Sir Michael Fallon said the process was a "blind alley".
The Labour leader is also facing demands from his MPs to abandon the talks, which have been going on for more than a month with little apparent progress. Attempts to find a cross-party compromise began after Theresa May's Brexit deal was rejected three times by MPs. The inability to agree on a way forward led the UK to miss its 29 March deadline for leaving the EU - the current date for departure is 31 October. Labour negotiators want any deal they strike with minister to be reflected in changes to the political declaration made with Brussels.
This 27-page document was published alongside Mrs May's withdrawal agreement and sets out the parameters for the future relationship between the UK and the EU, but is not legally binding. In Brussels, Mr Robbins will explore how quickly changes could be made to the declaration if the government and Labour can come to an agreement. The BBC's Norman Smith says he understands he will have face-to-face meetings with EU officials on Wednesday.
Meanwhile, in Westminster, the cabinet is taking stock of progress so far in the talks, while Labour's shadow cabinet will meet later to discuss the state of play. Sir Graham Brady, chairman of the Tory backbench 1922 Committee, and 13 former cabinet ministers have written to Mrs May to warn her not to agree a compromise with Labour that includes a customs union with the EU.
Inside a customs union there would be no internal tariffs (taxes) on goods transported between the UK and other EU nations - something that is seen as advantageous for business. But it would mean the UK cannot negotiate its own trade deals on goods with other countries around the world, and for some, that fails to satisfy the desire for a clean break with Brussels after Brexit.
Among the former cabinet ministers are Brexiteers Boris Johnson, Dominic Raab and sacked defence secretary Gavin Williamson, as well as Maria Miller and Sir Michael Fallon, who supported Remain in the 2016 referendum.
According to the Times, the letter said such a compromise would lose the support of Conservatives who previously backed the prime minister's deal, and would be unlikely to gain enough Labour votes to pass.
It said: "More fundamentally, you would have lost the loyal middle of the Conservative Party, split our party and with likely nothing positive to show for it. No leader can [bind] his or her successor, so the deal would likely be at best temporary, at worst illusory."
'Stepping stone'
Sir Michael said the government's focus should be on addressing Conservative and Democratic Unionist Party concerns over the Northern Irish border and finding alternative arrangements to the backstop, not doing a deal with Labour. He told BBC Radio 4's Today: "The talks are clearly not going anywhere. "If they are going to include permanent membership of a customs union then frankly we would be better off staying in the EU then we would have a voice in the trade arrangements that are being negotiated.
"We can't say we are leaving the EU then half stay in it."
A Downing Street source told BBC political editor Laura Kuenssberg that a compromise was being sought with Labour on customs "as an interim position or a stepping stone".
"We will not sign up to a permanent customs union," the source said.
"Both sides agree that no Parliament can bind a future government and most EU trade deals have a six to 12-month exit clause."
At a meeting of Labour MPs on Monday night, Jeremy Corbyn faced repeated demands to abandon the talks with the prime minister. MPs fear that they are costing Labour support ahead of the European elections on 23 May.
But speaking after Monday's discussions with the government, shadow chancellor John McDonnell said they had been "constructive as always".
Ex-Tory MP Anna Soubry accused the opposition of being "all over the place", telling BBC Breakfast she feared Labour would "bail out this Conservative government to deliver Brexit".
Headlines Friday 10th May 2019
Ørsted Issues Green Bonds, Secures GBP 900 Million
Ørsted has secured nominal GBP 900 million through the issuance of green senior bonds, to finance its green growth ambition towards 2025 including the investment in the 1,386MW Hornsea Project Two offshore wind farm in the United Kingdom.
Ørsted has completed the pricing of new unsecured green senior bonds comprising a GBP 350 million fixed-rate tranche with maturity in 2027, a GBP 300 million fixed-rate tranche with maturity in 2033 and a GBP 250 million inflation-linked tranche (CPI) with maturity in 2034. All tranches have settlement on 16 May 2019.
Hornsea Project Two is located 89km north-east of Grimsby and will comprise 165 Siemens Gamesa 8MW wind turbines.
Once operational in 2022, Hornsea Two will surpass the 1.2GW Hornsea Project One, currently under construction offshore Yorkshire, to become the world's largest wind farm.
Cruise Vessel Orders Push Fincantieri’s Revenue Up
Italian shipbuilding giant Fincantieri has once again reported a record quarter in terms of total backlog and the number of orders in the cruise business. During the first quarter of 2019, the shipbuilder’s order intake was at EUR 6.5 billion with contracts signed for a total of 11 cruise ships for 5 different brands, including Oceania, Regent Seven Seas Cruises, Viking, MSC, Princess.
Total backlog reached EUR 34.3 billion, covering approximately 6.3 times the 2018 revenues. Backlog for the same period last year stood at EUR 21.8 billion with 104 ships in the order book.
Revenues increased by 13% to EUR 1.38 billion, compared to EUR 1.22 billion reported in the same period a year earlier, in line with the growth expectations for 2019.
“The orders for the 11 cruise vessels signed in these three months translate into almost 27 billion euro generated to the benefit of the territories where we are located: this figure speaks for itself,” Giuseppe Bono, Fincantieri’s Chief Executive Officer, said.
“This is the first glimpse of a challenging year ahead of us, which will allow us to show our excellent production and system integration capabilities,” he added.
Revenues in the shipbuilding segment for the quarter reached EUR 1.11 billion, increasing by 8.8% when compared to the EUR 1.02 billion reported in the first quarter of 2018. The increase in revenues was linked to the higher volumes generated by the construction of cruise vessels, that recorded an increase of 13.1% if compared to the same period of 2018.
Fincantieri expects 2019 results to be in line with 2018 and consistent with the economic and financial forecast announced within the 2018-2022 Business Plan. In particular, for FY 2019 the revenue growth trend is confirmed, with an EBITDA margin in line with 2018.
In the shipbuilding segment, in the next quarters of 2019 the shipbuilder expects to deliver 8 ships, 6 cruise units and 2 naval vessels.
New post-Brexit immigration plan 'needed for Scotland'
Plans for the immigration system after Brexit would cause particular problems for Scotland, the director general of the CBI has said. A UK government consultation includes a minimum £30,000 salary for skilled migrants seeking five-year visas. The Home Office has said its plans would allow the UK to attract talented workers and deliver on the Brexit vote.
But Carolyn Fairbairn told BBC Scotland she believed skilled workers would have to be recruited at lower pay levels. Scotland has a particular problem with an ageing workforce, she said. Ms Fairbairn said: "The trouble with the current immigration plan the government has put forward is it doesn't work for the whole country, and it certainly doesn't work for Scotland."
In 20 years time, the CBI expects only one third of the Scottish population to be of working age, causing "profound implications for Scotland, its tax base and public services". "We need the flexibility that allows Scotland to have the people it needs to grow," Ms Fairbairn said.
"Scotland has particularly unusual problem in terms of a falling working age population.
"For many people wanting to come and work in Scotland the salaries are well below that, so we are looking for change and we are looking for a new immigration model that works for the whole country."
The Scottish median salary is less than £24,000.
Ms Fairbairn, who met First Minister Nicola Sturgeon on Thursday ahead of the employers organisation's annual lunch in Edinburgh, has been working with the Scottish Trades Union Congress (STUC) on plans to tackle automation and the future of work.
The two organisations have written to the Scottish government with proposals that they hope could increase "both the number and quality of jobs".
"If we get this right, automation and digitisation can be as important an economic leap forward as the industrial revolution," Ms Fairbairn said. "We can build a society in Scotland that cherishes the fundamentally human skills, such as communication, empathy, innovation, and leadership."
The CBI has also called for politicians to set clear timetable for resolving the "paralysing" Brexit deadlock. "Three years on, the landing zone for a workable deal still feels worrying small, " she said. "And let me be crystal clear. Scottish firms, and firms across the UK, want a deal."
She added: "Firms desperately need a timetable for these next few months. They need to have some idea of process, of timing, to enable them to plan, invest and prepare."
Headlines Thursday 9th May 2019
DFDS Buying Ferry Duo to Service New Sweden-Belgium Route
Danish shipping and logistics company DFDS has reached an agreement to purchase two freight ferries that will service its new route between Gothenburg, Sweden, and Zeebrugge, Belgium. The company said that the ferries in question are the 2000-built Slingeborg and Schieborg, featuring around 12,500 dwt. The units would be acquired from third party owners for DKK 270 million (USD 40.5 million). VesselsValue data shows that the vessels are operated by the Netherlands-based Wagenborg Shipping.
In addition to the two newly-acquired units, DFDS will transferred one freight ferry to the new route from its existing route between Gothenburg and Ghent that currently deploys four freight ferries. The connection between Gothenburg, Sweden, and Zeebrugge, Belgium is expected to begin operating mid June, 2019 and reach revenue in excess of DKK 300 million in 2020, according to the company.
DFDS will open the route on the back of a 5-year agreement with the provider of renewable solutions Stora Enso to annually carry around 700,000 tons of paper and board products between Gothenburg and Zeebrugge. Stora Enso has the option to extend the agreement by three years.
Separately, DFDS released its first quarter of 2019 financial report, in which it said its revenue and EBITDA increased, while outlook for 2019 remains unchanged with regard to revenue and earnings. Revenue was up by 11% to DKK 3.9 billion driven by the expansion in the Mediterranean and stockpiling in UK ahead of the initial Brexit-date end of March. EBITDA before special items rose by 13% to DKK 677 million driven by the Mediterranean expansion and strong performance in North Sea. Profit for the period dropped to to DKK 120 million, compared to DKK 157 million reported in the same quarter a year earlier.
“The continued expansion of our network drives DFDS’ growth in 2019 and beyond. Despite current headwinds in some markets, we are on track to deliver on our outlook for the year,” Torben Carlsen, CEO, said.
Semco Maritime to equip Energean Power FPSO with telecommunication and firefighting systems
TechnipFMC has chosen Semco Maritime to deliver telecommunication systems, topside firefighting equipment and safety equipment for the Energean Power FPSO for the Energean-operated Karish & Tanin fields, offshore Israel.
As a total systems integrator Semco Maritime will be delivering more than 20 telecommunication systems including detailed engineering, procurement, construction, integrated in-house system testing, installation supervision and commissioning, Semco Maritime said in a statement on Thursday. The telecommunication systems include PAGA system, access control, CCTV and entertainment, Trunked Radio systems, telephone communication and data networks.
The customized fire protection package consists of several water/foam deluge skids, hydrants including cabinets with foam, hoses and handheld nozzles, oscillating foam monitors and mixed ancillary firefighting and suppression equipment for the topside of the vessel. Semco Maritime’s subsidiary in Singapore handles the project with support from in-house telecommunication and firefighting experts in Denmark and Norway.
“We are pleased that TechnipFMC has chosen us to equip the ‘Energean Power’ FPSO with telecommunication and firefighting systems. Our global presence enables us to work closely with the front-end engineering and design contractor as well as the Sembcorp Marine yard in Singapore. This saves time and minimizes risks which have been of paramount importance in this project,” says Martin Just, Vice President at Semco Maritime Pte Ltd. in Singapore.
The FAT-tested equipment will be delivered and installed during 2019, the company said. The Karish & Tanin natural gas fields are located in the Levant Basin of the Mediterranean Sea, approximately 90 km offshore Israel. Both fields are leased and operated by Energean Israel. First gas from this deep-water gas development project is expected in 2021.
The Karish and Tanin development was sanctioned in March 2018. Energean has contracted TechnipFMC under a turnkey, lump sum EPCIC contract to provide the full suite of FPSO and SURF services during the construction phase and TechnipFMC has subcontracted COSCO to provide the FPSO hull.
The first steel was cut at the COSCO yard in Zhoushan, China, on November 26, 2018. Hull completion is expected to take 12 months. The hull will then travel to the Sembcorp Admiralty Yard in Singapore for installation of the Siemens-built topsides. Energean expects the FPSO to sail away from Singapore in late 2020 ahead of first gas in 2021.
Grenfell Tower: Government to pay £200m for safer cladding
The government is to cover the £200m bill of replacing Grenfell Tower-type cladding on about 150 private blocks in England with a safer alternative.
Housing Secretary James Brokenshire had previously said the bill should be footed by the owners, not the taxpayer. But he acknowledged the long wait for remedial work to be carried out had caused anxiety and strain for people living in those high rises. He said owners had been trying to offload the costs on to leaseholders.
Seventy-two people died when a fire destroyed Grenfell Tower, in west London, in June 2017, in one of the UK's worst modern disasters. It took minutes for the fire to race up the exterior of the building, and spread to all four sides. A public inquiry into the fire heard evidence to support the theory that the highly combustible material in the cladding was the primary cause of the fire's spread.
Latest government figures show that 166 private residential buildings out of the 176 identified with aluminium composite material (ACM) cladding - the same type used on Grenfell Tower - are yet to start works on removing and replacing it.
Mr Brokenshire admitted he had changed his mind on demanding freeholders pay up for safety work. He said some building owners had tried to pass on the costs to residents by threatening them with bills running to thousands of pounds.
"What has been striking to me over recent weeks is just the time it is taking and my concern over the leaseholders themselves - that anxiety, that stress, that strain, and seeing that we are getting on and making these buildings safe." He told BBC Radio 4's Today programme: "We've seen a number of building owners and developers coming forward and doing the right thing."
Pemberstone, Aberdeen Asset Management, Barratt Developments, Fraser Properties, Legal & General and Mace and Peabody were named as having fully borne the costs for their buildings. Prime Minister Theresa May said: "It is of paramount importance that everybody is able to feel and be safe in their homes."
Grenfell United, a group of survivors and the bereaved, said the news offered hope to people feeling at risk at home.
"This result is a testament to residents themselves, in social and private blocks, who refused to be ignored. The truth is we should never have had to fight for it," the group said. It asked the government to consider financial support for residents as they continue night watches and wait for the remediation work to begin.
Last year, Stormzy and Adele joined Grenfell survivors in an emotional video calling on the government to remove dangerous cladding from buildings.
The government has already committed to funding replacement cladding in the social sector. There are currently 23 blocks still covered in it.
Owners of private buildings will have three months to claim the funds, with one condition being that they take "reasonable steps" to recover the costs from those responsible for the use of the cladding.
Headlines Wednesday 8th May 2019
Total ‘weeks away’ from start-up of one of UK’s largest gas fields
Energy giant Total has said it is just weeks away from starting up production at one of the UK’s largest offshore gas fields. Total has been working towards first production from the Culzean “mega-project” in the central North Sea, which is expected to produce 5% of the UK’s total gas demand at its peak.
UK managing director Jean-Luc Guiziou gave an update at the Devex conference in Aberdeen yesterday, stating it will be “put into production in the coming weeks”. Mr Guiziou discussed the progress of the company in the North Sea, including the recent Glendronach discovery in the West of Shetland, and last year’s £5.8bn takeover of Maersk Oil.
He said: “We have a lot to do and one of our first milestones to celebrate through the value created by merging Total and Maersk will be the Culzean development project, which will produce 100,000 barrels of oil equivalent per day – mainly gas. “We are just a few weeks away from this great milestone for our company and we will continue developing the basin.”
Culzean is estimated to hold between 250millon and 300million barrels of oil equivalent and is expected to continue producing for at least 13 years. It was the largest UK gas field to be given the go-ahead in 25 years when it was sanctioned in 2015. A series of milestones have been reached in the build-up, including the arrival of the Ailsa floating production and storage vessel to the field in September after a 12,000 nautical mile journey from Singapore.
BP (32%) and JX Nippon (18.01%) are co-ventures in the project, which is expected to reach peak production in 2020. Total is currently the largest producer in the UK North Sea. Mr Guiziou also highlighted the Glendronach discovery made in September, thought to hold 175million barrels of oil equivalent, and further exploration prospects this year.
Total is planning to drill new wells at the Isabella prospect in the Central North Sea, Aspen in the southern sector and a new well in its Alwyn area in the Northern North Sea.
Mr Guiziou added: “We’ve been part of two large discoveries in the last year, I mentioned Glendronach in the west of Shetland, we’re also a partner of Cnooc who made the great discovery of Glengorm in the central North Sea.
“On the back of those two discoveries we maintain a steady and fairly high investment level in exploration.
“It is an exciting time to be working in the UK and I’m proud to lead our company here.”
Norway Sets Aside USD 165.5 Mn for Teekay Offshore’s Tankers
Teekay Offshore Partners has secured long-term financing from the Norwegian Government for four new shuttle tankers being built at South Korea’s Samsung Heavy Industries (SHI). The new ECO-friendly vessels, scheduled for delivery in 2019/20, are all equipped with a technology developed by the maritime supplier Wärtsilä in cooperation with Teekay, resulting in zero volatile organic compounds (VOC) emissions from the tankers.
Export Credit Norway and GIEK have provided loan and guarantee of USD 165.5 million on behalf of the Norwegian Government. The financing is part of a larger syndicate involving several commercial banks and a foreign export credit agency. In addition, Enova, which contributes to Norway’s transition towards a low emission society, has granted subsidies of NOK 133 million (USD 15.2 million) to these four shuttle tankers.
“We are excited to have received long-term financing from the Norwegian Government for our latest generation of shuttle tankers. These vessels will be the most environmentally friendly shuttle tankers ever built,” Ingvild Saether, President & Chief Executive Officer, Teekay Offshore Group Ltd, said.
“What makes me particularly proud is that bunkering requirements and CO2 emissions will be reduced by approx. 50%, thereby reducing the environmental footprint of our operations significantly,” Saether added.
In April 2019, Teekay Offshore Partners said it secured USD 414 million long-term debt facility, funded and guaranteed by both Canadian and Norwegian export credit agencies and commercial banks, to finance the four LNG-fueled newbuildings. Following delivery in 2019 and 2020, two of the Suezmax DP2 vessels would start working for Norwegian energy company Equinor, while the remaining two units would join Teekay Offshore’s contract of affreightment (CoA) shuttle tanker portfolio in the North Sea.
Diageo submits plans to revive Port Ellen Distillery
Whisky production could be revived at an iconic distillery on Islay for the first time in more than 35 years, under plans put forward by Diageo. The drinks giant has submitted a planning application to overhaul the Port Ellen Distillery, which closed in 1983.
The proposals include restoring the distillery's original kiln building and traditional sea-front warehouses. There are also plans for a new stillhouse. The move is part of a £35m investment programme by Diageo to reopen Port Ellen Distillery and Brora Distillery in Sutherland, both of which closed in 1983. The buildings at Port Ellen Distillery have undergone many changes since it first opened in 1824. In the 1930s the distillery was closed and largely demolished, before being rebuilt in the 1960s. Following its most recent closure in 1983, only a handful of the original buildings remained.
Georgie Crawford, master distiller leading the Port Ellen project, said: "This is another hugely significant milestone on our journey to bring Port Ellen Distillery back to life.
"This is no ordinary distillery project - we are bringing a true whisky legend back to life and we believe our plans do justice to the iconic status of Port Ellen and will capture the imagination of whisky fans from all over the world."
Last month, Diageo submitted plans to overhaul visitor facilities at two distilleries in the north of Scotland. It said planning applications had been filed for Cardhu in Speyside and Clynelish in Sutherland, after public consultation.
Headlines Tuesday 7th May 2019
How offshore wind power is re-energising Great Yarmouth
In the past decade the UK has emerged as a world leader in offshore wind energy. And some of the biggest winners from the multi-billion pound investment look set to be coastal towns searching for their industries of the future.
On a clear day, the tourists walking Great Yarmouth's beachfront Golden Mile can see the turbines of the Scroby Sands wind farm spinning in the distance. Onshore are the attractions and arcades that have sustained this Norfolk seaside resort for the past half-century; far offshore stand the huge structures on which rest its hopes for the next. Twice the height of Big Ben and with blades longer than a jumbo jet wingspan, the new turbines being built many miles into the North Sea will dwarf the 15-year-old wind farm visible from the beach. At full capacity, the planned projects could power the equivalent of 4.5 million homes, but the multi-billion pound investments are already having an energising effect on the local economy.
Having seen the decline of its fishing industry and ridden the ups and downs of the oil and gas industry, Great Yarmouth and its neighbouring port Lowestoft find themselves at the centre of the UK's renewables boom. The UK already has offshore wind turbine infrastructure that could provide a capacity of 7.5GW - more than any other country in the world - and more than half of it is off the coast of Norfolk and Suffolk. A combination of shallow waters, consistent wind and good access to the energy-hungry south-east England have already attracted projects costing £11bn, with projects worth £22bn - and more than 6,000 jobs - planned by developers into the next decade.
In March, the government laid out in an industry sector deal its ambition for 30% of electricity to come from offshore wind by 2030, and the falling cost of renewables has fuelled ambitions of the UK being carbon zero by 2050. It all adds up to an unmissable opportunity, says Simon Gray of industry body the East of England Energy Group.
"The great thing about this is that the wind farms are set to last 20, 30, 40 years. It means two generations of a workforce that will be operating and maintaining these turbines," he said. "We are developing these skills and will be exporting them around the world," he says.
While much of the manufacturing is done further up the east coast or abroad - which has drawn criticism - construction and maintenance is creating work for local companies. Great Yarmouth's port is being used as the construction base for ScottishPower Renewables' £2.5bn East Anglia One wind farm, due for completion next year.
But an even bigger prize is the operations and maintenance deal it has secured for Swedish energy firm Vattenfall's two wind farms, which will be the biggest in the world. They will bring up to 150 jobs for 25 years, and create hundreds more in the supply chain. Yarmouth firm Subsea Protection Systems makes protection for undersea cables, and says it could double its 50-strong workforce if it wins a contract on the projects. And Peel Ports has invested £12m in Great Yarmouth port to attract bases for future wind farms. It has been working with local councils and the region's local enterprise partnership.
"This is our opportunity," says port director Richard Goffin. "We've been saying this for two years but the government have now put their flag in the ground and said they want us to do it."
The sector deal "felt like firing a starting gun" says chief executive Stuart Rimmer. He believes the prospect of well-paid, long-term jobs on their doorstep is creating real excitement among students. "Aspiration follows opportunity," he says. "We have to explain they are not just getting a qualification, they are getting a future."
Port of Seattle: Trio Shortlisted for New Cruise Terminal Project
The US Port of Seattle has unveiled three shortlisted teams to proceed in the process towards selecting a partner in the development and operation of a new cruise facility at the north end of Terminal 46. The first team is Cruise Industry Leaders Group, a partnership between Royal Caribbean Cruise, MSC Cruises, Carnival Corporation and SSA Marine, a subsidiary of Carrix. The second shortlisted team is Global Ports Holding and Civil & Building North America and the third one Ports America, teaming with Jacobs Engineering Group.
“We are delighted about the prospect of partnering with each of these highly qualified teams,” Stephanie Jones Stebbins, Managing Director of the port’s Maritime Division and leader of the selection team, commented. The three teams responded to the port’s request for qualifications (RFQ) issued in March this year and will now be invited to respond to a request for proposals, expected to be released in June.
The Port of Seattle is targeting delivery of the new cruise terminal for the 2022 cruise season. Early estimates are that a cruise terminal could be constructed for around USD 200 million. A public-private-partnership approach to build the terminal will have the port contributing half that cost.
Universal basic income: Plan to give all citizens money should be piloted in UK, report says
‘We have to lead in developing a radical mechanism aimed at eradicating poverty,’ says Labour's John McDonnell
Pilot schemes examining how a universal basic income system would work in the UK should be set up, a new report has said. Guy Standing, a member of the Progressive Economy Forum (PEF) and an economic adviser to shadow chancellor John McDonnell, will submit his findings to the Labour Party. Praising the findings, the veteran politician said: “This report is an important contribution to the debate around inequality, austerity, poverty and how we establish a fair and just economic system.
“There have been pilots of ‘basic income’ elsewhere and Guy Standing has looked at them and come forward with proposals. Whatever mechanism we use, whether ‘basic income’ or another, we have to lead in developing a radical mechanism aimed at eradicating poverty but also means testing.”
Mr McDonnell said that Mr Standing’s work was shining a light on the problems, which had been exacerbated by almost a decade of austerity. “We will be studying the contents and recommendations of this report carefully as we put together our reform policies for the next Labour government,” he said. The Labour Party might promise a universal basic income, a radical policy, in its next manifesto for a general election, the shadow chancellor told The Independent last year. “It’s one of those things I think we can get into the next manifesto and see, it’s worth a try,” he said in the July 2018 interview.
In 2017 Mr McDonnell told The Independent that Labour had also set up a working group to investigate the feasibility of a basic income, led by Mr Standing.
“Basic income would be a weekly or monthly payment to every person lawfully resident in the UK, paid without conditions or means tests,” the PEF said in a statement. “It could dramatically reduce poverty, insecurity and the use of food banks while saving on the bureaucracy of current social welfare administration.
“The cost could be met by adaptation or abolition of the current personal tax allowance so that higher earners do not gain or lose from the scheme.”
Mr Standing said that while US pilot schemes had focused on labour supply, UK schemes should be centred on basic income’s impact on stress, insecurity and debt.
He has suggested a number of pilot scheme scenarios, including providing an economically deprived community with a basic weekly income instead of existing means-tested benefits, with the exception of housing benefit.
“Provisionally, it is proposed that every adult in a selected community would be provided with £100, with £50 for each child and with additional separate benefits for those with disabilities,” the report says. Another suggested option is the government giving every adult in a community £50 per week for a year, which would not be taken into account when means-testing for benefits.
A 2017 poll by the Institute for Policy Research at the University of Bath suggested that 49 per cent of all Britons would support a universal basic income scheme. Other supporters of the policy also included billionaires such as Facebook founder Mark Zuckerberg and Sir Richard Branson.
“Basic income style pilots have been proven to have beneficial effects on health, well-being and trust, while giving people more freedom to decide for themselves how to manage their lives,” said Anthony Painter, director of action and research at the Royal Society for the encouragement of Arts, Manufactures and Commerce,.
“All parties aspiring to be progressive must take notice and back basic income experiments.”
Headlines Thursday 2nd May 2019
Pavilion Energy Conducts Singapore’s First STS LNG Bunkering
Pavilion Energy said it has performed the first commercial ship-to-ship LNG bunkering in the Port of Singapore. The operation comprised a reload of 2,000 m3 of LNG onto a small-scale tanker at the newly-modified Secondary Jetty of the Singapore LNG (SLNG) Terminal, followed by a ship-to-ship transfer to the receiving heavy-lift commercial vessel.
“Pavilion Energy’s first commercial ship-to-ship LNG bunkering operations in Singapore demonstrates our strong commitment and capability to deliver a comprehensive suite of LNG bunker supply solutions to Singapore and the region,” Frédéric H. Barnaud, Group CEO of Pavilion Energy, said. “As the world’s largest bunkering port, Singapore is committed to provide a range of bunkering solutions to meet the future energy needs of the global shipping industry,” Quah Ley Hoon, Chief Executive of MPA, said.
Pavilion Energy demonstrated its truck-to-ship bunkering capabilities in 2017, and further expanded its bunker logistics with the charter of its first LNG bunker vessel newbuild in February 2019.
The 12,000 m3 GTT Mark III Flex membrane LNG bunker vessel is set for delivery by 2021, and is the largest of its kind set for use in the Port of Singapore to date, the company concluded.
Fred. Olsen Windcarrier Seals Moray East Deal
Fred. Olsen Windcarrier has secured a contract for the transport and installation of turbines at the Moray East offshore wind project in Scotland. Fred. Olsen Windcarrier is in charge of transporting and installing 100 MHI Vestas V164-9.5MW turbines at the 950MW wind farm located off the East coast of Scotland.
The company will deploy one of the Tern Class vessels for the work and will use the Port of Invergordon as the pre-assembly harbor. Turbine installation is set to commence at the beginning of 2021.
“We have been working with MHI Vestas Offshore Wind on various offshore wind projects over the last years and
during 2018, we installed more than 100 V164 turbines in the North Sea,” said Casper Toft, CCO at Fred.Olsen Windcarrier.
“However, the Moray East contract award is the first installation contract where Fred. Olsen Windcarrier is contracted directly by MHI Vestas Offshore Wind.”
Moray East is located some 22km off the Aberdeenshire coast. Project developer Moray Offshore Windfarm (East) Ltd plans to have the 950MW wind farm fully operational in 2022.
Borr’s talks for two rig contracts come to naught
Offshore drilling contractor Borr Drilling has received cancellations of two letters of intent for a pair of jack-up rigs, which are currently warm-stacked in Singapore. Back in March 2019 Borr Drilling said it was in advanced negotiations with undisclosed operators for multi-year contracts for four newbuild rigs – Grid, Gersemi, Saga, and Skald, all warm-stacked in Singapore.
Come April and Borr was awarded new contracts with Pemex in Mexico for both the Grid and Gersemi jack-up rigs. The duration of the contracts is from June 2019 to December 2020.
Negotiations for the other two rigs – Saga and Skald – continued. It was expected that the multi-year contracts for both of the rigs would start in the first quarter of 2020. However, in its latest fleet status report – issued on Thursday, May 2 – Borr said that the letters of intent for the Saga and Skald rigs were cancelled. This means that both of the rigs will remain stacked in Singapore.
Both rigs are of a KFELS Super B Bigfoot Class design built by Keppel. The Saga rig was the first of five jack-up rigs that Keppel built for Borr Drilling and Skald was the second of five. They were delivered in January and June 2018, respectively.
Scotland's greenhouse gas emissions 'to be net-zero by 2045'
The Committee on Climate Change (CCC) urged that Scotland set the target five years ahead of the UK as a whole. The panel says Scotland has more potential sites for carbon capture and a greater landmass for tree planting.
It came after a report to the UN last year urged the world to go "further and faster" in tackling climate change. And on Sunday First Minister Nicola Sturgeon declared a "climate emergency" in her speech to the SNP party conference.
Net-zero is the point where the same volume of greenhouse gases is being emitted as is being absorbed through offsetting techniques like forestry. Despite being low-tech, trees are still the most powerful tool in removing carbon dioxide from the atmosphere through photosynthesis which turns the gas into oxygen.
Committee chairman Lord Deben said: "Scotland has been a leader within the UK with many of its policies to tackle climate change.
"By setting a strong net-zero target for 2045 it can continue that leadership on the world stage.
"It will be tough, but it can be done and Scotland's strong track record positions it well to succeed."
What does net-zero mean?
The terms carbon neutral and net-zero are often used interchangeably but there are differences.
Carbon dioxide (CO2) is the most abundant greenhouse gas but there are others which the Scottish government counts and they are not all carbon-based.
Therefore, some climate change campaigners prefer the term net-zero as it includes not just CO2 and methane but also nitrous oxide, which is emitted during agricultural and industrial activities as well as from fossil fuels.
Simply being carbon neutral would not stop global warming because these other gases are also harmful to the atmosphere.
Perhaps an even better term would be "climate neutral".
Scotland's current target, set in the Climate Change Act, is to reduce emissions by 80% by 2050 compared with benchmark levels from 1990. A new bill currently going through the Scottish Parliament aims to increase that target to 90%. It will now be amended so MSPs can vote on the new target of net-zero by 2045.
Ministers have said they would aim for net-zero when there is a "credible pathway to achieve it".
'Just and fair'
Scotland's environment secretary Roseanna Cunningham said: "There is a global climate emergency and people across Scotland have been calling, rightly, for more ambition to tackle it and safeguard our planet for future generations.
"Having received independent, expert advice that even higher targets are now possible, and given the urgency required on this issue, I have acted immediately to set a target for net-zero greenhouse gas emissions for 2045 which will see Scotland become carbon neutral by 2040."
She called on the UK government to follow Scotland's lead and warned that everyone needs to take action, including businesses, schools and communities. She added: "We can, and we must, end our contribution to climate change. I invite everyone to accept the advice we've received and work with us in a just and fair transition to a net-zero economy." The CCC advice recommends a net-zero target of 2050 for the UK as a whole, with Wales urged to reduce emissions by 95% in the same time-frame.
To achieve it, the report says a fifth of agricultural land needs to shift to alternative uses that support emissions reductions such as forestry or biomass production. It adds that carbon capture and storage would be crucial. As well as the 2045 aim, the committee advises interim targets of a 70% reduction in emissions by 2030 and a 90% drop by 2040.
In the most recent audit, for 2016, Scottish emissions were 49% below 1990 levels. The CCC calculates that the new target can be achieved at an annual cost of around 1-2% of GDP.
A drop in the cost of technologies like offshore wind and batteries for electric vehicles means that is a similar price tag as the one previously attached to the 80% target. The UK government's energy minister Greg Clark said the CCC report "recognises the work we've done to lay the foundations to build a net-zero economy". He added: "Few subjects unite people across generations and borders like climate change and I share the passion of those wanting to halt its catastrophic effects.
"One of our proudest achievements as a country is our position as a world-leader in tackling this global challenge - being the first country to raise the issue on the international stage, introduce long-term legally-binding climate reduction targets and cutting emissions further than all other G20 countries."
The industry body Oil & Gas UK said it was committed to working with both governments on a practical response to the report.
Chief executive Deirdre Michie said the reductions must be achieved "without sacrificing security and affordability of energy supply for consumers" and in ways which "do not disadvantage UK industries against their international competitors".
Mike Robinson from Stop Climate Chaos Scotland said the CCC report was "hugely welcome advice".
"The growing climate movement, from NGOs, youth strikes to Extinction Rebellion, is sending a strong message to our political leaders that rhetoric just isn't good enough," he added.
"It's now up to MSPs to show they are listening to public concern and reflect the ambition of this exciting report in the Climate Change Bill currently going through parliament."
The CCC calls for the new targets to be achieved purely through domestic efforts. Some countries, like Norway and Sweden, fund international offsetting schemes which count towards their measurements. It also says the target can only be achieved if policy delivery is ramped up significantly, including an earlier deadline than 2040 - as the UK government has proposed - for the phase-out of fossil fuel cars.
Creating new forests through afforestation also needs to increase to 20,000 hectares a year across the UK, increasing to 27,000 by 2027.
Headlines Wednesday 1st May 2019
Pasha Hawaii Lays Keel and Cuts Steel for LNG-Fueled ‘Ohana Class Ships
Honolulu-based shipping company Pasha Hawaii reached milestones on the construction of two of its LNG-fueled containerships at Keppel AmFELS. The company held the ceremonial keel laying for its first of two ‘Ohana class unit, the George III, and started the construction on the second containership, to be named Janet Marie, with a steel cutting ceremony.
Scheduled for delivery in 2020, the two LNG-fueled vessels are being built at the shipyard in Brownsville, Texas. Upon completion, both 774-foot U.S. Jones Act vessels will join Pasha Hawaii’s fleet, serving the Hawaii/Mainland trade lane.
“These LNG-powered containerships were designed to support the needs of shippers in the Hawaii trade lane, while minimizing environmental impact in the communities we serve. Adding George III and Janet Marie to our existing fleet will greatly enhance our service capabilities and on-time delivery, marking three generations of service to Hawaii,” George Pasha, IV, the Pasha Group President and CEO, said.
The new vessels will operate fully on LNG from day one in service, substantially improving the vessels’ environmental footprint, according to Pasha Hawaii. Energy savings will also be achieved with a state-of-the-art engine, an optimized hull form, and an underwater propulsion system with a high-efficiency rudder and propeller.
FutureOn launches offshore oilfield digital twin platform
Oilfield software specialist FutureOn has launched a cloud-based platform which enables the digital twin of an offshore field from the first concept to first oil and beyond. Oslo-based company has said that its digital twin solution – named FieldTwin – can, among other things, lower risk, improve collaboration, integrate IoT sensor data into a visual context dashboard for real-time monitoring of equipment statuses, well flow-rates, production values, vessel locations, and engineer tasks, and reduce installation times.
Furthermore, FutureOn says its FieldTwin solution Connects artificial intelligence and historical data to well-planning, drilling, installation, and operations to improve field layouts and concept selection.
“Forward-thinking companies understand the tremendous opportunity of Big Data analytics to gain a competitive advantage and deliver greater value from their significant investments offshore,” said Paal Roppen, chief executive officer of FutureOn. “FieldTwin visualizes and centralizes data into a single source to increase collaboration, increase transparency, reduce costs, speed timelines and improve operations.”
Roppen says FutureOn’s customers eventually want to de-man their platforms and remotely monitor and maintain their offshore operations and assets.
“FutureOn’s FieldTwin allows all stakeholders to now see more than ever before — the same information, at the same time to make more impact on a project’s outcome and make more efficient decisions that save time, reduce errors and mitigate risk,” Roppen said. While the digital twin concept – a replica of a physical asset – is relatively new, there have been concrete examples of it being used in the offshore oil and gas industry.
Offshore industry adopting digital twin solutions. Back in February, Norway’s Aker Solutions was appointed by Wintershall to build a complete digital replica of the North Sea Nova field production system to enable data driven engineering, production and maintenance decisions.
Aker in December 2018 signed a strategic collaboration agreement to further develop digital offerings in engineering, operations, and services with Siemens.
Elsewhere in the industry, GE has developed a solution that provides health and performance monitoring of rig equipment via a digital twin—enabling condition-based maintenance. GE has said that its Digital Rig solution tested on a Noble drillship, has produced alerts to inform potential failures up to two months before they would occur.
Offshore vessel builder Sembcorp is also testing the digital twin waters. The company in 2017 entered into a collaboration deal with DNV GL to investigate the digital twin tech “to create a digital replica of an actual ship, and through simulation determine the ship’s specific design and operational requirements for attaining optimal performance.”
Sembcorp said that the Digital Twin imaging could be is useful in the pre-commissioning of ships.
The usual commissioning procedure is for the vessel to be built and then commissioned during sea trial. With the Digital Twin, it is possible to pre-commission the vessel prior to actual construction by integrating vendor data into a single consolidated virtual ship for testing, Sembcorp Marine said.
Maersk Drilling has also tested the “digital twin” model using hi-tech glasses are for interactive cooperation with the company’s clients. “By developing a virtual model of each drilling rig and connecting it with a feed of live data from the rig, Maersk Drilling can provide clients with a much more detailed overview of the drilling operation,” Maersk Drilling said.
US renewables production outstrips coal for first time ever
In April 2019, the US renewables sector generated more electricity than the country's coal power plants for the first time, according to analysis by the Institute for Energy Economics. April 2019 looks set to have been a momentous month for the US energy industry, with the renewable sector projected to generate more electricity than coal for the first time ever.
The prediction was made earlier this week by the Institute for Energy Economics and Financial Analysis (IEEFA), which hailed the shift as the beginning of a "tipping point" which will see "renewable output begin outpacing coal more and more frequently."
"According to data published this month in the Energy Information Administration (EIA) Short-Term Energy Outlook, renewables may even trump coal through the month of May as well," IEEFA analyst Dennis Wamsted added in a recent report.
EIA estimates show renewable energy - classified as hydro, biomass, wind, solar and geothermal power - generating 2,322 and 2,271 thousand MWh/day in April and May respectively, topping coal's projected output of 1,997 and 2.239 thousand MWh/day over the same two months. For the time being, Wamsted only expects to observe the switch during certain months with annual coal production continuing to outstrip renewables "for several years" to come. April's results are partly seasonal, with coal stations often closing during parts of the spring for maintenance, in preparation for demand spikes through the summer and winter.
However, Wamsted also draws a parallel with natural gas, which is currently the US's number one power source. The first instance of natural gas-fired generation exceeding coal's output occurred just three years ago, in April 2015. By January 2018, it had overtaken coal production altogether. "On an annual basis, the two fuels each accounted for about 33 per cent of the electricity market in 2015," Wamsted writes. "By 2018, natural gas's share had climbed to 35 per cent while coal's had dropped to 27 per cent. The trends for both are expected to continue."
The report anticipates a continued decline for the US coal industry, despite vocal support from President Donald Trump. With a remaining capacity of 240GW, the coal industry's energy generation is at its lowest level since 1979, according to EIA figures.
According to the clean energy think tank Energy Innovation, the US has already entered what it terms the "coal cost crossover", where existing coal plants are increasingly more expensive than cleaner alternatives. It estimates that wind and solar could replace 74 per cent of the US coal fleet at an immediate saving to customers. By 2025, it projects this figure to rise to 86 per cent.
The tipping point for renewable energy may already have been reached in Texas, the IEEFA adds. Data from the Electric Reliability Council of Texas (ERCOT) suggests wind and solar generation topped coal's output for the first quarter of 2019 - the first time this has happened on a quarterly basis. "The shift in Texas will not end overnight, as the state's coal plants are used heavily during the hot summer months, but the gap is closing," Wamsted writes. "In 2018, solar and wind output totaled 78 per cent of coal's generation and, as the first-quarter data indicate, the race is narrowing."
It is this backdrop against which the upcoming presidential race is expected to ensure climate change and clean energy play a critical role. New polling this week revealed that climate change is the top issue Democrats and Democrat-leaning independents want to see candidates address with fully 82 per cent describing it as a "very important" issue. Meanwhile, a series of polls have revealed burgeoning support for clean energy, even among Republican voters.
Consequently, while President Trump continues to disparage attempts to curb emissions and question the science on climate change, his prospective challengers are lining up to burnish their green credentials.
Beto O'Rourke this week became the latest candidate to unveil plans for a sweeping decarbonisation programme, pledging to invest $5tr in new low carbon infrastructure as part of a plan to halve emissions by 2030 and turn the US into a net zero emission economy by mid-century. With renewables providing further evidence they can play a central role in a cost effective, reliable, and decarbonised electricity system, hopes are growing that plenty more clean energy energy milestones are in the pipeline.
Trelleborg shields WindFloat Atlantic cables
JDR Cable Systems awarded the contract for the Portuguese floater that will be installed this year Trelleborg will provide cable protection for the 25MW WindFloat Atlantic project off the coast of Portugal. The contract with JDR Cable Systems is for the design, manufacture and delivery of dynamic cable protection products, including distributed buoyancy modules (DBM).
Developer WindPlus is installing the project, comprising three MHI Vestas V164-8.4 MW turbines installed on ballasted, triangular, semi-submersible foundations, supplied by Principle Power. The floating wind farm will be situated in water depths of 100m off the coast of Viana do Castelo. Installation will take place later this year.
JDR Renewables is supplying the 66kV inter-array cables for the project. JDR renewables project manager Paul van Es said: “The harsh environment of the Atlantic is a perfect proving ground for floating offshore wind and our technology. “We believe engineering innovations such as these are essential to make a success of floating offshore wind and to enable the sector to make the most of its global potential.”
Trelleborg’s UK offshore operation supplied cable protection products for JDR’s WindFloat 1 prototype in 2011. In floating production environments, subsea electrical power cables are used to inter-connect floating structures on offshore wind farms and run between the substation and the shore. Trelleborg’s DBMs and bend limitation products are designed to secure, guide and protect power cables from excessive movement and bending that cause fatigue damage.
The WindFloat platform is connected to the seabed by a catenary mooring system, avoiding offshore operations associated with installing traditional fixed structures, reducing potential impact on the environment.
In March JDR chose Nexans to provide the connectors that terminate the inter-array cables, as well as a flexible connection inside the turbine between the transformer and switchgear.
Headlines Tuesday 30th April 2019
Exmar Signs Shipbuilding Deals for Two LPG Carriers in China
Belgian owner and operator of gas carriers Exmar has signed shipbuilding agreements for the construction of two LPG carriers in China. The 86,000 m³ gas carriers, to be fuelled by LPG, would be constructed by Shanghai’s Jiangnan Shipyard. Both vessels are to be delivered ex yard respectively within the second and third quarter of 2021, according to the company.
The new units would serve Exmar’s long-term commitments towards Norway-based energy group Equinor for worldwide LPG transportation under a contract signed in December 2017.
Worley to Design Revolution Wind Substations
Ørsted has awarded Worley with a contract to engineer and design two offshore wind topside substations for the 700MW Revolution Wind project off the Rhode Island coast, US. The project started in March 2019, with the installation expected in 2022, Worley said.
“This project is directly aligned to our strategic priority of supporting our customers through the energy transition, as the world moves from traditional fossil power generation to renewable power generation,” said Eoghan Quinn, Global Wind Lead, Worley.
“This project award builds on a previous Orsted Framework Agreement win, further solidifying our strong and ongoing partnership with this customer and our presence in the US market.”
There is a strong focus by the customer on the utilization of Worley’s US-based resources for this project, the company said.
Revolution Wind has secured a total of 700MW offshore wind capacity, with the capacity awarded in Rhode Island and Connecticut, which Ørsted will build as one joint project. The wind farm is located some 15 kilometres south of the Rhode Island coast.
Revolution Wind is part of the Deepwater Wind portfolio which Ørsted acquired in October 2018.
Teekay selling remaining stake in Teekay Offshore to Brookfield
Oil and gas shipping firm Teekay has agreed to sell all of its remaining interest in Teekay Offshore, a provider of marine services and solutions to the offshore oil industry, to Brookfield for $100 million. To remind, Canada’s Brookfield had in 2017 completed the acquisition a 60 percent stake in Teekay Offshore Partners with the total investment at around $750 million.
Teekay on Tuesday said it had agreed to sell to Brookfield, all of its remaining interests in Teekay Offshore Partners, “which includes the Company’s 49% general partner interest, common units, warrants, and an outstanding $25 million loan from the Company to Teekay Offshore, for total proceeds of $100 million in cash.”
The transaction is expected to be completed in early to mid-May 2019.
“The divestment of our remaining interests in Teekay Offshore is aligned with Teekay’s current strategy to simplify and focus on our core gas and tanker businesses,” commented Kenneth Hvid, Teekay’s President and Chief Executive Officer. “The proceeds from this transaction allow us to further strengthen Teekay Corporation’s balance sheet and credit profile, while significantly enhancing our near-term financial flexibility and range of options to address our near-term bond maturity.”
Teekay Offshore, which owns FPSO, FSO, and Shuttle Tanker units, among others, on Tuesday reported a net loss for the first quarter of 2019 of $2.6 million, on revenues of $336.6 million. For comparison, in the first quarter of 2018, Teekay reported a net income of $16 million, on revenues of $323 million.
Scotch whisky ‘more productive’ than energy sector
The Scotch Whisky Association (SWA) has released figures suggesting whisky workers are worth more to the economy than those in the energy sector. It calculated that each employee in the whisky industry generates £210,505 of activity. The equivalent for the energy industry was said to be £173,511. The research, based on work by the Centre for Economic and Business Research, found whisky to be worth a total of £5.5bn to the UK economy.
Between 2016 and 2018, the value of the whisky industry increased by 10%. SWA chief executive Karen Betts said: "Despite the challenges of Brexit, this investment continues to flow, with further projects planned and more distilleries set to open - a sign that the Scotch Whisky industry remains confident about the future.
"This is great news for our many employees, our investors, our supply chain and, of course, for consumers all over the world who love Scotch."
The industry continues to lobby for lower tax rates on whisky in the UK. Ms Betts added: "In the US, Scotch and other whiskies are taxed at just 27% of the rate that HM Treasury taxes us here at home.
"We will continue to press the chancellor for fairer treatment for Scotch whisky in our domestic market, which reflects the vital economic contribution the industry makes to the UK economy every day."
Key findings in the SWA research - based on the year 2018 - include:
Scotch whisky contributed 21% to the value of all UK food and drink exports
Exports were worth £3.8bn
The industry supports 42,000 jobs, including 10,500 directly employed in Scotland and 7,000 in rural areas
UK spirits excise duty receipts accounted for £3.8bn
Scotland's Rural Economy Secretary Fergus Ewing said: "I welcome the contribution that the Scotch whisky industry makes to the Scottish economy.
"The industry's performance is testament to the hard work of those who work in this important sector, making Scotch whisky one of Scotland's greatest global exports."
The UK's exchequer secretary to the Treasury Robert Jenrick MP said the government had already eased the tax burden on the industry.
"I'm delighted to see how this important sector is thriving," he added.
"We are supporting the Scotch whisky success story by freezing duty on spirits again this year.
"Our record of reductions and freezes to alcohol duties have provided more than £4bn of support to the drinks sector here in the UK."
Headlines Monday 29th April 2019
Six New LNG Carriers Become Part of BP Shipping’s Fleet
BP Shipping, the maritime arm of UK-based oil major BP, has added six new LNG vessels to its fleet.
On April 23, the company said that British Partner, British Achiever, British Contributor, British Listener, British Mentor and British Sponsor all joined its fleet. Ordered in 2014, the 173,400 cbm LNG tankers were built for BP at South Korea’s Daewoo Shipbuilding and Marine Engineering (DSME).
“It’s been a busy few years in BP Shipping and after approximately 4.6 – 5 million hours worked on our USD 1.3 billion ship build project, we are the proud operators of six new state-of-the-art LNG vessels,” the company added.
Each of the new vessels is fitted with two, next-generation M-type, electronically-controlled, gas-injection (ME-GI) propulsion systems and a proprietary full reliquefaction system (FRS) designed by DSME.
In October 2017, BP joined forces with KMarin and ICBC Leasing on the fleet expansion plan. The two firms invested over USD 1 billion in the six tankers.
At the time, the company said that the units would be employed on a 20-year liquefaction contract with the Freeport LNG facility in Texas, as well as other international LNG projects in BP’s global portfolio.
The vessels can carry a cargo of LNG equivalent in volume to 69 Olympic sized swimming pools and they deliver the low carbon energy to customers with 20% less CO2 emissions when compared to industry benchmarks, according to BP Shipping.
The company explained that fuel consumption is a major contributor to running costs and, with the latest fleet additions, it expects to save around USD 2 million per ship per year.
Boskalis Inks Hornsea Two Cable Deal
Boskalis has won a contract for the offshore export cable installation at Ørsted’s Hornsea Project Two offshore wind farm in the UK. Under the contract worth more than EUR 100 million, Boskalis will install three export cable circuits with a total length of approximately 380km.
The project scope includes the preparation of the offshore export cable route, comprising geophysical survey, boulder clearance and seabed leveling through dredging, as well as cable installation and protection. The three 130km long export cables will connect the offshore substation to the onshore substation by means of a 300m long horizontal directional drilling, crossing the sea defense of Horseshoe Point, Boskalis said.
According to the company, a variety of in-house specialist services and assets including a trailing suction hopper dredger, a geophysical survey vessel and multiple cable-laying vessels will be deployed. Boskalis has also invested in a new multi-mode plough for the pre-lay trenching and backfilling. It will be pulled by the recently added construction vessel Boka Falcon.
The project is expected to commence later this year with completion scheduled for late 2021.
French cable maker Nexans will provide 200km of a 245kV subsea export cable system for the nearshore section of Hornsea Project Two. The 1.4GW project will comprise up to 165 Siemens Gamesa 8MW turbines located approximately 89km from the Yorkshire coast. It will be the world’s largest offshore wind farm once commissioned in 2022.
OKEA secures newbuild Odfjell rig for Draugen wells
Oil and gas company OKEA has secured the Odfjell Drilling-owned semi-submersible rig Deepsea Nordkapp to drill for upside opportunities within and surrounding the Draugen field offshore Norway. OKEA secured the newbuild semi-sub drilling rig Deepsea Nordkapp – which was delivered to its owner in January 2019 – on behalf of PL093 license partners. The drilling operation is expected to start in the fourth quarter of 2019, the oil company said on Monday.
Deepsea Nordkapp will drill one infill pilot well in the Draugen field and one exploration well in the “Skumnisse” prospect, north-east of Draugen, both within the OKEA-operated PL093 license.
Deepsea Nordkapp is a 6th generation dynamically positioned harsh environment and winterized semi-submersible drilling rig on a two-year lease to Aker BP. The rig is expected to start drilling for Aker BP in May. OKEA is subleasing the rig from Aker BP.
The CEO of OKEA, Erik Haugane, commented: “OKEA is very pleased that we will be drilling the company’s first wells as an operator on the NCS already in 2019. This is an important milestone for us. The planned drilling program is a vital step in realizing the ambition of enhanced oil recovery from the Draugen field and prolonged production from the Draugen platform.” OKEA as operator of PL 093, together with the license partners Petoro and Neptune, has the ambition to substantially extend the life of the Draugen oil field into the 2040s through continued focus on cost efficient operations, additional resources within the license and near field exploration.
According to OKEA, there are several potential follow-up targets identified in the area that might be drilled over the next years to further increase the volume in the Draugen area.
It is worth reminding that the Deepsea Nordkapp rig will also be used by Polish oil company PGNiG to drill its first operated exploration well on the Norwegian Continental Shelf. Namely, PGNi in March signed an agreement with Aker BP for the lease of the Odfjell Deepsea Norkapp for the drilling on the Shrek prospect within the PGNiG operated PL838 license in the Norwegian Sea.
Radical blueprint calls for Glasgow metro
Glasgow needs a city-wide metro system to reconnect left-behind areas and boost the economy, according to a radical new blueprint. The Glasgow Connectivity Commission wants about £10bn to be spent over the next 20 years on a range of measures to upgrade the city's transport capacity. It said the first new link should be to Glasgow Airport via Renfrew, Braehead and the Queen Elizabeth Hospital.
Other tram or light rail lines should then be spread out across the city. The commission, which was set up by Glasgow City Council 18 months ago, wants the metro network to revive abandoned rail routes, convert heavy rail to light rail and develop on-street trams.
The commission proposed:
Developing a Glasgow Metro to connect areas of the city poorly served by rail
Connecting Glasgow Central and Queen Street stations by a tunnel to increase capacity
Extend Glasgow Central station to the south of the Clyde to prepare for HS2 services
Developing plans for bus priority on Glasgow's motorway network
Preparing for the shift to electric vehicles by considering new methods of road charging
Transport expert Prof David Begg, who chaired the commission, told BBC Scotland that Glasgow's economy was "punching below its weight" and too many people were cut off by poor transport links.
He said: "It really surprised me how close the link is between deprivation, low income, lack of employment opportunities in Glasgow and access to the fixed rail network."
Prof Begg said the city had a high percentage of households that did not own a car and the bus network was "not really serving them as well as it should".
"The city is not working as effectively and efficiently as it should and the solution is a metro system," he said.
The commission called for Glasgow Airport to be linked to the rail network by 2025. It recommended building a link between the airport and Paisley Gilmour Street Station as the first leg of a metro line that would then be extended to connect Renfrew - the largest town in Scotland without a rail station - Braehead Shopping Centre and Queen Elizabeth University Hospital to the city centre.
It said that over the next two decades the metro routes should be increased. Some parts of the current heavy rail network, such as the Cathcart Circle and the Glasgow Central Low level, could be converted to a high-density metro service and new stations could be added, the report said.
Other routes could be created from "dormant" rail lines such as the former Central Low Level Line via the Botanics to Maryhill and the London Road tunnel to Parkhead and Tollcross.
It also proposes sections that run along wide boulevard-type roads such as Edinburgh Road in the north east of the city and Great Western Road. The report says: "Too many Glaswegians, particularly in the north and east of the city and the postwar housing estates, do not have the kind of reliable, quick, turn-up-and-go service that rapid transit offers."
Prof Begg said the report's recommendations were "ambitious and achievable" and that its proposals had previously been studied at length and found to have positive business cases.
He said it would take about £500m a year for the next 20 years to deliver the schemes. The transport expert said large amounts of money had been found for other vital infrastructure projects such as dualling the A9, the Queensferry Crossing and Borders Rail. "We actually think these Glasgow schemes compare more favourably with a lot of that other spend," he said.
Prof Begg argued that the funding should be split equally between the UK government, the Scottish government and a private gain fund. He said the money being spent on HS2 in England would result in an uplift in the money that would be given to Scotland over the next decades.
Glasgow City Council leader Susan Aitken said: "These proposals are worthy of detailed consideration. This is the kind of thinking which Glasgow has needed and it's clear that the Connectivity Commission has benefited from a very high calibre of evidence and expertise."
Scottish Transport Secretary Michael Matheson said the proposals would be consider as part of the National Transport Strategy.
Headlines Friday 26th April 2019
UK extends immigration ruling for non-EEA nationals in offshore wind sector
The government in the UK is extending a ruling regarding non-European Economic Area (EEA) nationals working in the offshore wind sector, but only for 12 months.
Extending the immigration ruling will allow non-EEA workers to enter the UK until 21 April 2020 for the purpose of joining a vessel engaged in the construction and maintenance of an offshore windfarm in UK territorial waters. However, the concession will not be extended further than 21 April 2020.
The Home Secretary first introduced a concession to the UK immigration rules to allow the employment of non-EEA nationals joining vessels engaged in the construction and maintenance of offshore wind projects in UK territorial waters in 2017.
“Leave to enter under the terms of the concession will not be granted beyond 21 April 2020,” said the government. “During this period, firms involved in the construction or maintenance of windfarms within territorial waters should look to regularise the position of their workers. Those who require leave to enter the UK should have the appropriate permission to do so under the immigration rules.”
In order to qualify for entry under this concession and maintain border security, a person seeking entry for this purpose should produce a valid passport; a visa issued for this purpose, if needed, or a seaman’s book compliant with ILO Convention 108 and issued by a country which has ratified that Convention or ILO Convention 185 and issued by a country which has ratified that Convention having previously ratified ILO108; and a letter from their employer stating that the worker is employed in the construction or maintenance of a windfarm project within territorial waters.
Non-EEA nationals seeking entry to the UK under the terms of this concession are subject to a visa requirement only if they are a visa national; and do not hold a seaman’s book compliant with ILO Convention 108.
Ulstein Launches World’s Largest Battery-Hybrid Ship
Norwegian shipbuilder Ulstein has launched the world’s largest plug-in hybrid ship at its Ulstein Verft. Color Hybrid, being built for cruiseferry company Color Line, was launched on April 14, 2019, and will undergo further outfitting before its delivery this summer.
The ship’s assembly started in April 2018 in Gdynia, Poland. After seven months of construction, the hull was towed to Ulsteinvik, Norway, for detail work.
The 160-meter roll-on/roll-off passenger (RoPax) vessel will be put to service between Sandefjord, Norway, and Strömstad, Sweden. It will be capable of carrying 2,000 passengers and 500 cars.
Color Hybrid will almost double the capacity of M/S Bohus, which is scheduled to be phased out when the new ferry launches into operation. Being a plug-in hybrid, Color Hybrid will be able to switch to batteries on parts of its journey. Ulstein says that the vessel would have very low noise levels in this mode and no local harmful emissions. The batteries will be recharged via shore connection in Sandefjord.
University of Glasgow to build hi-tech Govan campus
The University of Glasgow has unveiled plans to build a new high-tech campus in Govan on the banks of the Clyde. It is hoped the site, once synonymous with shipbuilding, could now become a world-renowned centre for nanotechnology and precision medicine. The university has put up £28m for the project and a further £27.5m will come from the Glasgow City region deal. The university is currently bidding for a further £63m in funding. It is hoped work can begin within two years.
The site for the new campus is currently a disused car park at the southern end of the Clyde tunnel, near the Queen Elizabeth University Hospital (QEUH). The proposed centre will be comprised of two main parts - an enhanced James Watt Nanofabrication Centre which will focus on industries like nanofabrication and photonics and a Precision Medicine Living Lab, which will flow into the existing innovation zone at the QEUH.
The new site will allow space for academics to work alongside industry partners. University of Glasgow principal Prof Sir Anton Muscatelli said the new innovation campus could create "Scotland's Silicon Valley on the Clyde". He said it could be a key step in ensuring the city "retakes its place at the forefront of international innovation and industrial excellence".
Sir Anton said: "I have no doubt that the innovation agenda and industries like quantum technology, nanofabrication and precision medicine can be to the 21st century Glasgow economy, what shipbuilding was in the past." He said the campus could bring hundreds of high-end jobs to the area.
However, it is hoped it will be part of a wider regeneration of Govan. Glasgow City Council leader Susan Aitken said: "It isn't just about those high-tech academic jobs, it's about all the other things that come with it.
"We are building homes, there will be new commercial and retail units, all sorts of new opportunities are being created." There are also plans to establish Invention Rooms for use by local school pupils. The new campus move comes as Glasgow University has outgrown its clean room facilities on Gilmorehill in the west end, where researchers are leading the way in nanotechnology.
Dr Sara Diegoli, strategic projects manager, said: "It is one of the leading nanofabrication centres in Europe. "The clean room is in a Victorian building so we have some constraints when it comes to expansion."
Meanwhile, companies come from all over the world come to collaborate with precision medicine experts in Glasgow but they too need room to grow.
Prof Dame Anna Dominiczak, head of the College of Medicine, said: "Our current clinical innovation zone will be soon full.
"Bringing industry, NHS and academia together could put Scotland on the map. We could be the best in the world." The university already has plans in place for huge expansion on the former Western Infirmary site.
Headlines Thursday 25th April 2019
Royal Caribbean Cuts Steel for 5th Oasis Cruise Ship
Royal Caribbean International has celebrated the start of construction of its fifth Oasis class ship at the Chantiers de l’Atlantique shipyard in Saint-Nazaire, France.
The first steel plate of the new unit (hull 34) was cut on April 24. The latest Oasis class ship is scheduled to be delivered in spring 2021. This is the third unit to be built by Chantiers de l’Atlantique for the company. The shipbuilder said that the hull of the new cruise ship will be composed of about 400,000 machined steel parts, just like its sister ships Harmony of the Seas and Symphony of the Seas, which were delivered in 2016 and 2018, respectively.
“The fifth Oasis Class ship will combine the iconic seven-neighborhood concept that its sister ships feature with a bold and unexpected lineup of thrilling experiences, imaginative dining, unparalleled entertainment and the latest technology,” Royal Caribbean International said.
The cruise line ordered the vessel from the French shipyard in May 2016. In February this year, the company entered into an agreement with Chantiers de l’Atlantique to order the sixth Oasis ship for delivery in the fall of 2023. The order is contingent upon financing, which is expected to be completed in the second or third quarter of 2019, the company earlier said.
Royal Bank of Scotland CEO McEwan resigns after more than five years
Royal Bank of Scotland plc is searching for a new chief executive after Ross McEwan resigned, signaling a fresh start as it heads for full private ownership after a state bailout. New Zealand-born McEwan, who has led RBS since October 2013, has a 12-month notice period and will remain in his position until a successor has been appointed and an orderly handover has taken place, the bank said on Thursday.
It is the second change in RBS’s senior executive team in fewer than six months following the appointment of Katie Murray as the bank’s chief financial officer in December last year. The date of McEwan’s departure will be confirmed in due course and Alison Rose, the bank’s CEO of Commercial & Private Banking, is seen as one of the favorites to succeed him. Rose’s accession would make RBS the first bank in Britain to have two women in its most senior positions at the same time.
“After over five and a half very rewarding years, and with the bank in a much stronger financial position it is time for me to step down as CEO,” McEwan said in a statement.
Some analysts suggested his departure was well timed, just months before Brexit and with dark clouds looming over the UK housing market. While broadly liked and respected among RBS’s institutional investors, McEwan’s tenure has not been without drama.
Despite being one of the lowest in Britain’s banking sector, salary and bonus payments earned by the 61-year old have attracted considerable scrutiny, particularly in the years before RBS returned to profit. Under his watch, the bank also shelled out $4.9 billion to settle its largest-ever regulatory penalty for misselling of high-risk mortgage backed securities between 2005 and 2008, when it was one of the world’s biggest banks by assets.
But a tight rein on costs has seen the lender swing back to the black and restore dividends to investors. RBS has also managed to amass hundreds of millions of pounds in excess capital it hopes to deploy in buying back shares from the UK government this year. RBS, currently more than 62 percent owned by the UK taxpayer, is hosting its annual meeting on Thursday, where it is expected to field fresh questions over its controversial Global Restructuring Group, which ensnared hundreds of troubled borrowers in the financial crisis.
RBS itself was bailed out by the UK government to the tune of 45 billion pounds ($58 billion) in 2008 and has spent the last decade cutting costs, restructuring its balance sheet, and refocusing on core domestic UK business and consumer lending.
Coffee waste 'could replace palm oil'
A pair of Scottish entrepreneurs are aiming to go global with their hope to replace palm oil using coffee waste. Scott Kennedy and Fergus Moore said they came up with a unique way to extract oil from used coffee grounds which had a wide range of uses. Palm oil is found in many household products, but environmentalists say demand for it is devastating rainforests in Asia. Manufacturers are now under pressure to find an alternative.
Mr Kennedy and Mr Moore came up with their idea while working in coffee shops during their time studying business at Glasgow's Strathclyde university, and saw first-hand the amount of food waste in the hospitality industry. Mr Moore told BBC Radio's Good Morning Scotland programme:
"About 60% of a cafe's waste is about coffee grounds.
"In Scotland, that amounts to about 40,000 tonnes a year - across the UK, more than half a million tonnes.
"And coffee grounds are so heavy that it takes their waste bill through the roof."
Explaining the idea behind his Revive Eco company, Mr Moore said: "There are oils in coffee with a wide range of uses in different industries - cosmetics pharmaceuticals, food and drink, household products - you name it, there's probably a use there.
"We're developing a process to extract and purify these oils."
Mr Moore added: "The most exciting part for us is that they have all the same components as palm.
"Palm oil's in the news for all the wrong reasons. It's really exciting for us that we could potentially provide a local and more sustainable alternative to all the industries that are currently using palm oil."
Mr Moore said it had been difficult setting up the company because he and his business partner were not from an engineering background, but added: "We've surrounded ourselves with incredible advisors and mentors that have made the process easier."
Revive Eco has already secured £235,000 of funding from the Zero Waste Scotland agency. And now they are in the running for a share of a £776,000 funding pot, after it was announced Revive Eco would be representing Scotland and Northern Ireland in the Chivas Venture competition.
Twenty global companies are competing for the prize, being announced in Amsterdam in May, after an online public vote.
Mr Moore said of the company's ambition: "We want to have the process up and running in Glasgow by next summer.
Longer term, we want to build the business to a place where we can franchise into different countries and replicate the business model elsewhere.
"We'd rather build a new process in Rome, Paris, Berlin - any other big coffee-drinking cities round the world."
Headlines Wednesday 24th April 2019
Young Professionals Green Energy Awards Finalists Announced
Almost 40 candidates have been shortlisted for the Scottish Renewables Young Professionals Green Energy Awards 2019.
More than 100 nominees who’ve worked in Scotland’s renewable energy industry for five years or less were narrowed down to a 39-strong shortlist. The Young Professionals Green Energy Awards recognises those who have achieved beyond all expectations, those who are pioneering new ideas and have the drive and ambition to change the renewable energy industry for the better.
The event, which will welcome around 250 guests to Glasgow Grand Central Hotel on Thursday May 30, was launched in 2015 to showcase the range of bright and innovative talent in the sector.
Claire Mack, Chief Executive of Scottish Renewables, said: “Once again I’m hugely impressed with the standard of nominations submitted for the awards. 2019’s nominees really do showcase the skill and innovation which exists among the young professionals within our sector.
“Those shortlisted should be extremely proud of their achievements, and we hope that being a finalist in the Young Professionals Green Energy Awards will encourage them to further grow and develop in their careers and continue to shape the future of renewable energy.”
Topaz Newbuild Finishes First Offshore Wind Gig
Topaz Energy and Marine’s newbuild subsea vessel Topaz Tangaroa has arrived in Eemshaven, the Netherlands, after completing its first offshore wind work. According to DHSS, the vessel has just finished work on the 370MW Norther project in Belgium and is preparing for deployment on the next offshore wind farm.
At the beginning of the year, Topaz Energy and Marine signed an agreement with an unnamed north European contractor to charter Topaz Tangaroa for work on renewable energy projects, primarily in support of offshore wind farms in the southern North Sea.
The charter contract took effect from February for a firm duration of seven months, with options to extend to late 2020.
Topaz Tangaroa is a 1,000m², diesel-electric light subsea construction vessel with 82 pax accommodation in comfort class 3, equipped with an AHC 120-tonne subsea construction crane.
Nicola Sturgeon to update MSPs on indyref2 plans
Nicola Sturgeon is to update MSPs on Brexit and her plans for a possible Scottish independence referendum in a long-awaited speech at Holyrood. The Scottish first minister will make a statement on "Brexit and Scotland's future" at Holyrood from 13:30.
BBC Scotland understands that she will not announce a specific date for a further vote on independence. Her spokesman said she would "strike an inclusive tone" while "setting out a path forward for Scotland".
But the Scottish Conservatives said Ms Sturgeon was "obsessed" by independence and was neglecting other issues. Labour and the Lib Dems also hit out in advance of the statement, while the Greens urged Ms Sturgeon to "fire the starting gun" on a new independence vote as an "escape route from Brexit".
The statement comes days before the SNP conference, which is set to be dominated by discussion of the party's "growth commission" paper of plans for independence. Ms Sturgeon called for a second referendum on Scotland's relationship with the EU immediately after the Brexit vote in 2016, but put her plans on hold after the snap general election the following year.
At that point, she said she would come back and update MSPs on the "precise timescale" for the new vote - known as "indyref2" - once there was more clarity about the outcome of Brexit negotiations. But BBC Scotland's political editor Brian Taylor understands she will not set out a specific referendum date in her latest statement.
"Instead, she'll set out steps to protect her existing referendum mandate, leaving open the prospect of a ballot before the next Holyrood elections in 2021," he said. "The first minister hopes her statement will content SNP activists ahead of the party conference this coming weekend." The first minister's official spokesman said Wednesday's 30 minute statement would "explore some of the issues that have arisen as a result of the ongoing Brexit situation and Scotland's constitutional future".
He said: "It will be a detailed and substantive statement setting out a path forward for Scotland amid the ongoing Brexit confusion at Westminster. "The first minister will take time to set out her thoughts on that front and in doing so she will seek to strike an inclusive tone."
There is a pro-independence majority at Holyrood, between the Greens and the SNP, which saw the parliament back calls for a new referendum in March 2017. Green co-convener Patrick Harvie said it would be "hugely disappointing" if the SNP let the mandate to hold a second referendum within the current Holyrood term expire "in the face of Tory obstructionism".
He added: "Scotland needs an escape route from a Brexit it didn't vote for and the Scottish Greens stand ready to campaign hard for an independent Scotland in the EU."
The UK government has said it would not give its backing to a new referendum via a "section 30 order" like the one which underpinned the 2014 vote. Ms Sturgeon told MSPs in March that "the legal basis of any future referendum should be the same as the referendum in 2014, which is the transfer of power under a section 30 order", but said the "anti-democratic" Conservatives were "running scared of the will of the Scottish people". Holyrood's other parties all oppose independence, and spoke out ahead of the first minister's statement.
Scottish Conservative interim leader Jackson Carlaw said Ms Sturgeon was "passing up the opportunity" to talk about topics such as education to instead focus on "her real priority - her plan for a divisive second referendum on independence". He said: "The only reason this statement is happening at all is because Nicola Sturgeon put a second independence referendum back on the table following the EU vote - and she has obsessed about it ever since. "All this keeps open the divisions from the 2014 referendum - and leaves us with less time spent focusing on getting Scotland's economy growing again."
Scottish Labour leader Richard Leonard said there was "no evidence that the people of Scotland want another independence referendum". He added: "The mess of Brexit throws into sharp relief the challenges of leaving a political and economic union. The answer to challenges of the UK leaving the EU is not and never will be Scotland leaving the UK." And Scottish Lib Dem leader Willie Rennie urged Ms Sturgeon to "tell parliament she has learned the lesson of Brexit, that breaking up long-term economic partnerships is damaging and divisive and that she does not want to inflict that on Scotland with independence".
Headlines Tuesday 23rd April 2019
Norwegian and UK North Sea markets gradually merging
The head of a Norwegian inspection, maintenance and repair group believes that the traditionally separate markets on either side of the North Sea are gradually merging.
Rune Haddeland is chief executive officer of WellConnection Group which recently took a major step into the UK market with the purchase of Peterhead-based Independent Oilfield Services (IOS). The strategic investment is to give the company a strong foothold in the UK and is a first step in the Group’s strategy to become a major international player.
Mr Haddeland said he believed that the major slump in oil price in 2013, which saw exploration drilling activity in the North Sea fall to its lowest for several decades, had changed the operational landscape.
“In the past the UK and Norwegian markets have, to a very large extent been separated,” he said. “If you drilled in Norway, you used a Norwegian service provider and if you drilled in the UK, you used a UK service provider. There was a very limited flow of drilling rigs from Norway to the UK and back.
“Now that has changed, probably because of the tougher market and capacity factors, and we see shorter contracts and rigs shuttling back and forth drilling a small number of wells in the UK sector and then a small number of wells in the Norwegian sector.
“Some of our clients are spending more time in the UK and now have a much stronger interest in being supplied with these services from both sides of the North Sea.
“Digitalisation is already beginning to drive the merging of the Norwegian and UK markets and I believe it is going to have a major impact.
“Inspection, maintenance and repair data must become location independent and immediately available because the same equipment will be used, inspected and repaired at multiple locations in Norway and the UK.
“WellConnection Group is already able to support this using our advanced digital inspection and repair management system. “Increasing number of operators are focussing on ‘total cost of operations.’ As a result, they are turning to those contractors who are able to demonstrate added value by smart and effective adjustments to current business structures. They are also looking for digitalised operations which can easily be integrated into the operators’ digital platforms.”
According to Rune, one of the primary benefits of the acquisition of IOS (now WellConnection IOS) was the sharing of knowledge from integrated technology, systems and processes which would benefit all clients, but particularly those with operations on both the UK Continental Shelf and the Norwegian Continental Shelf.
“We believe this will be one of our strengths now and we have been heartened by the fact that several Norwegian clients have requested visits to visit our WellConnection IOS site in Peterhead because of their interest.
“We do believe that there will be many more commonalities between Norway and the UK in future and a significantly increased shared market in the drilling segment.”
New subsea construction support vessel delivered to Oceaneering
Houston-based subsea company Oceaneering International has taken delivery of a subsea construction support vessel, Ocean Evolution. The vessel has completed sea trials and received all necessary ABS and U.S. Coast Guard certifications and is currently in Port Fourchon, Louisiana, completing final outfitting and preparing for project work scheduled to begin in June, Oceaneering said on Monday.
The Ocean Evolution is a U.S.-flagged, Jones Act-compliant, multi-service vessel (MSV) in the market. Its capabilities are headlined by its 250 mT active heave compensated (AHC) crane, two work-class remotely operated vehicles (ROVs) with AHC launch systems, survey systems and subsea tooling all built for work in up to 4,000 m water depths.
According to the company, the vessel serves the deepwater stimulation and intervention needs with its well stimulation and well intervention design, ABS Well Stimulation and Well Intervention (WS/WI) ready notation and under deck capacity to store special products.
Mike Ellis, Vice President, Subsea Projects, said, “The Ocean Evolution is a world class vessel ready to service the construction and intervention needs of our customers in deepwater. We are excited about the upcoming integrated services that will be provided with this vessel when combined with Oceaneering’s portfolio of subsea products and services.”
Measuring 353 ft (108 m) long, 72 ft (22 m) wide and Light Ship weight 6,900 T, Ocean Evolution is an ABS class DP2 subsea multi-service vessel built in the US under Jones Act requirements for coast-wise trade of personnel and equipment. The vessel has accommodations for 110 persons, helideck and a working moonpool measuring 23 ft x 23 ft (7 m x 7 m).
The vessel’s 12,595 ft2 (1170 m2) steel-constructed deck is designed to carry heavy loads and equipment. The deck is rated to support 10 mT/m2 with a total cargo carrying capacity of 1,900 mT. The vessel is equipped with a 250 mT AHC main crane with a 13,000 ft (4,000 m) working depth capacity. A second auxiliary crane on deck adjacent to the working moonpool is capable of 40 mT for lifting and handling of equipment on deck and to water depths of 600 ft (180 m).
Ocean Evolution features a unique layout bridge, configured with port and starboard redundant control stations. It is built with five low-emission EPA Tier 4 diesel engines with a combined generating capacity of 16 MW on a three-bus system. Oceaneering emphasized that Ocean Evolution features enhanced station keeping capabilities, which allows it to maintain position even during extreme weather conditions. The vessel’s position is held using two tunnel thrusters and a drop down thruster in the bow along with two Azipull thrusters in the stern.
The vessel’s design and construction was done with well stimulation and light well intervention in mind as a key capability. The underdeck storage capacity of up to 109,000 gal (413 m3) of special products maximizes use of the critical deck space for pumping and intervention equipment. The vessel is equipped with two Oceaneering work class ROV systems. One 220 hp Millennium Plus and one 250 hp NEXXUS systems are onboard each with active heave compensated launch and recovery systems installed in a custom indoor hanger for port and starboard launch.
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Brexit: Cross-party talks to resume
Talks between the government and Labour on Brexit will resume later as MPs return to Westminster following the Easter break. Cabinet ministers will meet senior opposition figures in an attempt to solve the impasse by finding a deal that could win the support of MPs. But some Tory MPs are angry the talks with Labour are even taking place.
Leading backbencher Nigel Evans called on Theresa May to step down as prime minister "as soon as possible". The joint executive secretary of the back bench 1922 Committee and MP for Ribble Valley told BBC Radio 4's Today programme: "The only way we're going to break this impasse properly is if we have fresh leadership of the Conservative Party...
"If there was an announcement today by the prime minister then of course we could start the process straight away."
He said Mrs May "had been reaching out to the Labour Party and Jeremy Corbyn, when she should have been reaching out to the people". But Prisons Minister Rory Stewart said Theresa May was doing a "good job" and deserved "praise not blame". "The idea somehow that some new fresh leader with extraordinary charm and nimble feet would be able to suddenly get the deal across the line is mistaken," he told the BBC. "It's nothing to do with the individual, it's that people disagree deeply about Brexit." Mr Evans's comments came after it emerged that Mrs May faces a no-confidence challenge from Tory campaigners.
More than 70 local association chiefs have called for an extraordinary general meeting to discuss her leadership and a non-binding vote is to be held at the National Conservative Convention EGM in May. If the grass-roots Tory vote showed a lack of confidence - it could put greater pressure on the 1922 Committee to find some way of forcibly removing the PM from office.
That pressure could increase further if the Tories poll badly in local elections on 2 May. Under current party rules, MPs cannot call another no-confidence vote until December 2019 - but when senior members of the 1922 meet on Tuesday afternoon, they will discuss whether steps should be taken to try to change them.
Mrs May is due to chair a cabinet meeting on Tuesday morning, and her de facto deputy, David Lidington, will attend the talks with Labour later.
Cross-party meetings have been going on for a number of weeks after Mrs May's EU withdrawal deal was rejected for a third time by MPs. But BBC assistant political editor Norman Smith said most people at Westminster seem to take the view that the prime minister is clutching at straws by pinning her hopes on those talks. He said Labour's position has not changed and Mrs May will have take a political decision to accept a customs union with the EU if she is to get Jeremy Corbyn to sign off her plans. If she does that, our correspondent added, it would almost certainly provoke a cabinet walkout and open warfare on the backbenches.
In separate news, Change UK will launch its European election campaign in Bristol, while Nigel Farage's Brexit Party will unveil more of its candidates in London. Change UK is made up of 11 former Labour and Tory MPs who quit their parties in February.
The UK has been given an extension to the Brexit process until 31 October. This means the UK is likely to hold European Parliament elections on 23 May.
Headlines Thursday 18th April 2019
Icelandic Competition Authority Okays Eimskip-Royal Arctic Line Cooperation
The Icelandic Competition Authority has approved exemption for the cooperation between Iceland’s shipping company Eimskip and Greenland-based carrier Royal Arctic Line A/S.
Unveiled in 2016, the cooperation is built on a vessel sharing agreement (VSA), where capacity is shared between carriers.
With the new cooperation approved on April 17, 2019, Royal Arctic Line will be able to offer transportation services to the Icelandic market. Greenland will be connected to Eimskip‘s international sailing system with its weekly services that create opportunities for direct connections for Greenland to international markets.
“We are pleased to have the formal approval from the Icelandic Competition Authority for the cooperation between Eimskip and Royal Arctic Line after several years of preparation,” Vilhelm Þorsteinsson, CEO of Eimskip, said.
“The cooperation creates opportunities for a more efficient sailing system for Eimskip as well as opening new sailing routes to and from Greenland,” he added.
As part of the cooperation, three 2,150 TEU container vessels are under construction in China with expected delivery in late 2019. Two vessels are being built for Eimskip — the largest in the company’s fleet — and one for Royal Arctic Line. The vessels will be used in weekly services between Greenland, Iceland, Faroe Island and Scandinavia.
The newbuilds are designed for the conditions in the North Atlantic, in accordance with the Polar Code.
As explained by Eimskip, the new cooperation and larger, environmentally-friendly vessels will enable the company to achieve economies of scale and increase fuel efficiency.
Once the new ships are delivered, Eimskip plans to dispose of its older vessels, Goðafoss and Laxfoss.
In a separate statement, Verner Hammeken, CEO of Royal Arctic Line, said that the competition authority’s decision is historic for Greenland as it would improve the efficiency of the West-Nordic sea freight.
The VSA has been an important part of Royal Arctic Line’s transformation and would enable the company to lower both costs and environmental impact, according to Hammeken.
The cooperation is subject to certain conditions made by the Icelandic Competition Authority.
Keppel nets nearly $120 million in new contracts
Keppel Offshore & Marine has secured integration and upgrading contracts worth a combined value of about S$160 million ($118.3M).
Keppel said on Wednesday that the contracts were secured through its subsidiaries, Keppel Shipyard and Keppel FELS.
The first contract is between Keppel Shipyard and an unnamed operator of oil and gas production vessels for fabrication and integration work on a Floating Production Storage and Offloading (FPSO) vessel.
The shipyard’s work scope includes the fabrication of several topside modules, the riser balcony, the spread-mooring and the umbilical support structures as well as installation and integration of associated equipment and all topside modules onto the FPSO.
Work is expected to start in 3Q 2019, and delivery is scheduled for 2021.
The second contract is between Keppel FELS and Diamond Offshore for the upgrade of the drilling semi-submersible rig Ocean Onyx. Diamond Offshore and Keppel FELS have collaborated on more than 12 projects since 2005.
Keppel FELS’ scope of work on the semi-sub rig includes the engineering, fabrication and installation of new pontoons, columns, bracings and a wing deck. The Ocean Onyx was first upgraded in 2012 by Keppel AmFELS, Keppel O&M’s yard in the U.S., from an old semi-submersible rig.
Scheduled for delivery in 2H 2019, Ocean Onyx will initially be deployed offshore Australia. As previously reported, Ocean Onyx has been hired by Beach Energy for drilling in the Otway Basin offshore Victoria. The first well expected to be drilled in Beach’s Otway program will be the Artisan gas exploration well, which is located in the VIC/P43 permit.
Karl Sellers, Senior Vice President – Technical Services of Diamond Offshore said, “Keppel FELS has proven to be a reliable partner for our rig repairs and upgrades over the years and we are pleased to work with them again on the upgrade of Ocean Onyx.”
Senvion Secures EUR 100 Million Loan
German wind turbine manufacturer Senvion, its lenders, and main bond holders have signed a binding loan agreement, setting forth terms for a EUR 100 million debtor-in-possession (DIP) facility.
According to Senvion, the DIP facility enables the company to continue its business operations following last week’s self-administration filing.
The loan has received Board approvals and allows substantial drawings already this week, thus enabling the company to stabilize its business operations and provide funds to its non-insolvent subsidiaries, Senvion said.
“We would like to thank both our lenders and main bond holders for their support in agreeing to provide us with a DIP facility that will enable us to continue our operations,” Yves Rannou, CEO of Senvion, said.
”This is particularly helpful since we managed to significantly ramp up our installations in Q1. So, this is encouraging news for all of us and of course for our transformation process. We have received a multitude of supportive reactions from our customers and suppliers and continue our close dialogue with them. We also deeply appreciate the support of our teams on the ground and their continuous commitment to support Senvion on this journey back to health.”
The super-senior secured DIP facility with a tenure of 12 months will provide Senvion the financial means to proceed with the transformation process initiated at the beginning of this year. Senvion’s management led by CEO Yves Rannou, has implemented measures to strengthen the company, refocus operations, concentrate on the most attractive markets, streamline the product portfolio, improve installation execution and realize efficiency gains in the service business, Senvion said.
Senvion installed 366MW worldwide in Q1 2019, more than twice as much as in Q1 2018. At the end of Q1 2019, the company’s total installed capacity under service amounted to 14.1GW, and the order book stood at around EUR 2.8 billion.
Brexit: No deal means hard Irish border, says Selmayr
One of the European Commission's most powerful officials has said that a no-deal Brexit would mean a hard Irish border.
The comments from Martin Selmayr feature in a documentary made by ARTE, the Franco-German broadcaster.
The secretary-general of the European Commission was filmed in a meeting with senior MEPs in late 2018.
"Let's be very clear - if there is no withdrawal agreement there will be a hard border," he told them.
"This is the worst of all scenarios.
"So for Ireland this situation would be very tough and that's why we need to do everything to prevent that."
Mr Selmayr was previously chief of staff to Jean-Claude Juncker, the president of the European Commission.
He served in the position from 2014 to 2018.
The ARTE documentary The Clock Is Ticking had extensive behind the scenes access to the EU's chief Brexit negotiator Michel Barnier and other senior EU figures.
In January, the European Commission's chief spokesman said it was "obvious" there would be a hard border in Ireland in the event of a no-deal Brexit.
At that time the Irish government had repeated its stance that it would "not accept a hard border on this island".
Since Mr Selmayr's comments the EU has intensified its no deal planning.
Officials have made clear that no deal would mean checks on goods moving from NI to the Republic.
However the question of where and how those checks would take place remains open.
The Taoiseach has said customs processes could take place away from the border but animals and food products present a more difficult challenge.
The EU has strict rules for these products meaning they must be physically checked at a border inspection post.
Headlines Wednesday 17th April 2019
SunStone Orders 6th Expedition Cruise Ship, Eyes More Vessels
Miami-based SunStone Ships has decided to order another Infinity class expedition cruise vessel. The company recently signed an agreement with China Merchants Heavy Industries (CMHI) for the sixth newbuilding.
As informed, the cruise ship now ordered has a long-term charter agreement in place and is expected to be delivered in September 2021. “We have worked diligently in obtaining the long term charters and shipbuilding orders for the Infinity class vessels and we continue to move forward with the contracts and building,” Niels-Erik Lund, SunStone President and CEO, commented.
Infinity class vessels are 104 meters long and 18 meters wide, with a draft of 5.1 meters. They feature a passenger capacity between 130-200 and a crew capacity between 85 and 115. The Vessels are Ice Class 1A, Polar Code 6 and are being built with Safe Return to Port, Dynamic Positioning and Zero Speed Stabilizers.
Current Infinity class newbuilds include the Greg Mortimer, the Ocean Victory, the Ocean Explorer, the Ocean Odyssey and the Ocean Discoverer, scheduled for delivery in August 2019, in September 2020, in February 2021, in March 2022 and in September 2022, respectively.
In addition to the six vessels already ordered, SunStone is in negotiations for four additional vessels. It is expected that the seventh Infinity vessel will be signed within May and the remaining three options within 2019, according to the company.
In addition to the Infinity series of newbuildings, SunStone has commercial management of a fleet of nine vessels on long-term charter, mainly for the small-ship/expedition ship market.
DPU Okays Vineyard Wind Energy Contracts
The Massachusetts Department of Public Utilities (DPU) has approved long-term contracts for 800MW of offshore wind between Vineyard Wind and the Commonwealth’s electric distribution companies.
“The approval of these contracts is an important step toward the completion of the largest offshore wind project in the country, which will significantly reduce greenhouse gas emissions, provide Massachusetts residents and businesses with cost-effective clean energy and promote economic development,” said Charlie Baker, the Governor of Massachusetts.
Vineyard Wind has also committed in these contracts to contribute USD 15 million to a fund that will invest in projects designed to promote the use of battery storage in low-income communities and support the Commonwealth’s goal to further the development of energy storage systems across the state.
Vineyard Wind’s bid was selected for contract negotiation in May 2018 based on criteria established under a Request for Proposals (RFP), and submitted to the DPU for review and approval on 31 July 2018.
Criteria used in the evaluation of the bids included an economic evaluation of the benefits for ratepayers, the project’s ability to foster employment and economic development in the Commonwealth, and the project’s environmental impacts and the extent to which a project demonstrates that it avoids or mitigates impacts to natural resources and tourism.
As a result of a review, Vineyard Wind was determined to provide the greatest overall value to Massachusetts customers by delivering approximately 800MW of offshore wind capacity per year while providing substantial ratepayer benefits, DPU said. The DPU’s Order approved the selection and found that these contracts are cost-effective as well as in the public interest.
Vineyard Wind, a joint venture of Avangrid Renewables and Copenhagen Infrastructure Partners, will be built some 14 miles south of Martha’s Vineyard on a lease area covering some 160,000 acres. The wind farm, which will feature MHI Vestas 9.5MW turbines, is expected to enter the construction phase in 2019 and be operational by 2021.
Back in March, the Commonwealth’s electric distribution companies submitted their second RFP to the DPU for up to 800MW of additional offshore wind.
Keppel gets approval to begin Gimi FLNG conversion
Keppel Offshore & Marine’s subsidiary, Keppel Shipyard, has received the Final Notice to Proceed (FNTP) from Gimi MS Corporation, a subsidiary of Golar LNG, to start full conversion works for the Gimi Floating Liquefaction Vessel (FLNG) project.
Keppel said on Wednesday that the total contract is worth $947 million. Keppel Shipyard’s scope of work in the conversion of a Moss Liquefied Natural Gas (LNG) carrier into an FLNG vessel includes the design, detailed engineering and procurement of the marine systems as well as conversion-related construction services.
Keppel noted it will be similar to the work done on the first FLNG vessel, Hilli Episeyo, which Keppel undertook for Golar, but will be customized for the 20-year BP’s Greater Tortue Ahmeyim contract offshore West Africa. Delivery of the vessel is expected in 1H 2022.
To remind, BP in late February awarded Golar LNG a contract for an FLNG unit to be deployed at the Greater Tortue Ahmeyim project offshore Senegal and Mauritania. Golar LNG had previously been given Limited Notice to Proceed with Tortue FLNG ahead of the Final Investment Decision which was made on December 21, 2018.
Chris Ong, CEO of Keppel O&M, said, “We are glad to continue this strong partnership with Golar on such a successful FLNG solution. The success of the Hilli Episeyo has provided the industry with strong proof of the attractiveness of Golar and Keppel’s conversion solution. This has further strengthened our offerings along the gas value chain.”
Hilli Episeyo, the world’s first converted FLNG vessel, was delivered to Golar LNG for work offshore Kribi, Cameroon.
Iain Ross, CEO of Golar LNG, said, “Golar looks forward to working closely with Keppel on another Mark I FLNG and has a high degree of confidence in Keppel’s ability to safely deliver FLNG Gimi on time and within budget.”
Keppel Shipyard will once again engage Black & Veatch, its partner for the conversion of the Hilli Episeyo, to provide design, procurement and commissioning support services for the topsides, as well as the liquefaction process, utilizing its PRICO technology.
When completed, the Gimi FLNG will be stationed at a nearshore hub located on the Mauritania and Senegal maritime border, and is expected to begin production in 2022 as part of the first phase of the Greater Tortue Ahmeyim project. The Gimi FLNG is designed to produce an average of approximately 2.5 million tonnes of LNG per annum.
Scotland could face 'deep recession' in disorderly Brexit
A disorderly Brexit risks a deep recession in Scotland, according to researchers. The Fraser of Allander Institute (FAI), part of the University of Strathclyde, predicts a loss of more than one £1 in every £20 of output from the economy. It suggests the fall from peak to trough in the economy could be around 5.5% of total output, contracting for two whole years. This is in line with forecasts made by the Bank of England for the UK economy.
The FAI modelled several possible Brexit outcomes and the impact in its latest economic commentary. This included scenarios of a no-deal Brexit with and without policy response.
Despite the potential for loss, researchers expect the damage to be offset by action taken by governments and the Bank of England.
And the FAI has set out a possible growth path for the Scottish economy which could see it outperform current estimates if Brexit is well-managed, business confidence returns and investment picks up. The central forecast for the economy is slightly weaker than the last such report from the economics institute. It predicts only 1.1% growth this year, followed by 1.4% next year and 1.5% the year after.
While much economic attention has been focused on Brexit in recent months, the economists warn that major questions are being ignored or avoided by governments in Edinburgh and London.
Reflecting on the difference made by the Scottish parliament 20 years after it was first elected, Wednesday's report says the weakest part of its performance has been "the lack of evaluation and scrutiny of the effectiveness and value of policy initiatives".
It questions whether there has been any progress on a Whitehall initiative to find ways for governments and their agencies to work better together in the interests of the Scottish economy.
'Scale back oil'
It says there should be a renewed focus on sustainable growth, after most targets set by the incoming Scottish government in 2007 have been missed.
The report says there is a need to address big structural changes coming to the economy, including demographic change, the scaling back of the oil and gas sector, automation and emerging economies around the world.
At the same time, it says there should be an assumption that government budgets will remain tight, demand for the health service continues to grow, and little discussion takes place of the squeeze on public services that are not protected by having the high priority for the NHS and schools.
The report calls for stronger cross-party co-operation in the Scottish Parliament, pointing to the impasse on Brexit in Westminster as the outcome of consensus policy-making breaking down.
The first minister will focus on Brexit when she speaks at the STUC conference in Dundee later. She is expected to say nobody should pretend that the damage of Brexit can be fully mitigated, Nicola Sturgeon will warn that Brexit, in any form, will harm living standards and risk jobs.
An extension to Article 50 was granted earlier this month, meaning the UK will not leave the EU until 31 October, unless a deal can be agreed in Parliament sooner. Graeme Roy, director of the Fraser of Allander Institute, commented that last week's delay in the deadline for Brexit only "kicked the can down the road", with little evidence so far of UK policy makers being able to agree a compromise approach. The risks to the economy therefore remain high.
He went on: "Brexit should not be the only focus of attention. One consequence of the Brexit debate is that it has left little room for discussion of the emerging structural challenges and opportunities our economy is facing."
John Macintosh, tax partner at Deloitte, the accountancy firm that sponsors the regular Allander economic commentary, said the latest report underlined strong employment figures, but there is a pressing need to encourage investment and to improve productivity".
He called on business to "think differently, adopting a more ambitious and medium-term outlook by investing in innovative and collaborative strategies as well as talent".
Headlines Tuesday 16th April 2019
Austal Cuts Steel for Second Fred Olsen Trimaran Ferry
Australian shipbuilder Austal held a steel-cutting ceremony to mark the start of construction on the second 118-meter trimaran ferries for Spanish shipping firm Fred. Olsen Express.
The ceremony for the future Bañaderos Express was held at Austal’s Philippines shipyard. The ferry is due to be delivered by the end of 2020 as part of an AUD 190 million (USD 135.7 million) shipbuilding contract with Fred. Olsen Express for two trimarans, which was awarded to Austal in October 2017.
The Bañaderos Express, and its sister ship, the Bajamar Express, were developed at Austal’s maritime design center in Henderson, Western Australia.
“The Austal-designed and built 127-metre trimaran, the Benchijigua Express, has become the benchmark for blue-water commercial ferry operations since it entered service in 2005, exceeding expectations for performance, speed and customer experience in the Canary Islands,” David Singleton, Austal CEO, said.
“These new 118-metre trimaran vessels will continue to be a game-changer in the international high-speed ferry market when these vessels enter service for Fred. Olsen.”
Santos confirms significant offshore gas find at Corvus area, W. Australia
Australian oil and gas company has said it has successfully drilled the Corvus-2 appraisal well confirming “a significant gas resource” in the Carnarvon Basin, offshore Western Australia. The well, located in petroleum permit WA-45-R, in which Santos has a 100 percent interest, is approximately 90 kilometers northwest of Dampier.
The Corvus-2 well intersected a gross interval of 638 meters, one of the largest columns ever discovered across the North West Shelf, Santos said. The well reached a total depth of 3,998 meters.
Wireline logging to date has confirmed 245 meters of net hydrocarbon pay across the target reservoirs in the North Rankin and Mungaroo formations, between 3,360 and 3,998 meters.
Higher permeability zones than encountered in Corvus-1 have been observed from initial pressure sampling completed in the well. Compared to Corvus-1, initial samples acquired from Corvus-2 indicate a significantly higher Condensate Gas Ratio of up to 10 bbl/mmscf and a similar CO2 content of 7 percent, Santos added.
Corvus-2 is approximately three kilometers southwest of Corvus-1, which was drilled in 2000. The water depth at the location is 63 meters. The field is approximately 28 kilometers from the Reindeer platform, which delivers gas to the Devil Creek domestic gas plant near Karratha, and about 62 kilometers to a Varanus Island tie-in point. Santos has a 100 percent interest in all these facilities.
The well was drilled using the jack-up drilling rig, Noble Tom Prosser, and will be plugged and abandoned as planned once logging operations are completed.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said: “Corvus-2 has delivered a fantastic result and has opened up a number of additional exploration opportunities in the region. It is particularly exciting to have realized higher liquids content and significantly bigger resource volume than we expected.”
“Corvus could be tied back to either our Devil Creek or Varanus Island gas plants, where it has the potential to increase the utilization of our existing facilities as well as provide backfill and extend plateau well into the 2030s.”
“It’s a great start to our 2019 offshore drilling campaign, and it also highlights the value of the Quadrant acquisition and our strategy of pursuing upstream brownfield growth opportunities around existing infrastructure. The rig will now move north to commence the Dorado appraisal program,” Gallagher said.
Commenting on Santos’ announcement on Tuesday, Wood Mackenzie senior analyst Daniel Toleman said: “Based on limited information, our initial estimate is a 2.5 tcf gas and 25 mmbbl condensate resource. This will be the largest gas discovery in the Carnarvon basin since the Satyr-4 exploration well drilled by Chevron in 2009.
“Santos’ stated 254m net pay is indicative of a very large gas resource in place, but recoverable volumes will be dependant on the size of the structure, area extent and sand thickness.
“Santos suggested that Corvus will supply the domestic market. The field is near to Santos’ Reindeer development and if the resource comes in over 2 tcf, we believe Santos will explore opportunities to export the gas as LNG. This is due to Corvus’ proximity to the Burrup Peninsula, and a well-supplied domestic market in the short-to-medium term.
“The North West Shelf has LNG production capacity available from 2021. The Corvus discovery could fill this ullage. If an LNG backfill development is to progress, we expect Santos will look to sell down, as it currently holds 100% in the find. One of the North West Shelf partners would be a logical entrant.
“Quadrant’s exploration portfolio is shaping up to be a good buy for Santos. Dorado was the third largest oil discovery in Western Australia’s history and Corvus is likely to be Santos’ largest offshore gas discovery ever.”
Vattenfall Picks Siemens Gamesa 10MW Turbines for Dutch Offshore Wind Farms
Vattenfall and Siemens Gamesa have joined forces to deploy the new SG 10.0-193 DD turbines at the Hollandse Kust Zuid 1&2 offshore wind farm in the Dutch North Sea. Siemens Gamesa said it is in final negotiations to secure the contract for the supply of 76 of its 10MW turbines for the Hollandse Kust Zuid 1&2 project.
In case Vattenfall wins the tender for Hollandse Kust Zuid 3&4, Siemens Gamesa would also be selected to provide the 10MW turbines, subject to the final investment decision. The wind farm would include 152 units in total.
“Due to the increased capacity, we require fewer turbines to be placed at Hollandse Kust Zuid which clearly reduces the environmental impact of this wind farm compared to earlier ones,” said Gunnar Groebler, Vice President and Head of Business Area Wind at Vattenfall.
“Larger turbines and greater availability also lead to major advantages in terms of electricity generation, which is particularly important in a subsidy free environment. Having fewer turbines to install also means lower costs and fewer risks during the installation process”.
The turbines are the latest generation on the market and will increase the efficiency by 30%, Siemens Gamesa said, adding that they are fitted with 94m long blades capable of generating more capacity per rotor lap than older, smaller turbines.
Last year, Vattenfall won the tender to build Hollandse Kust Zuid 1&2, the first non-subsidised wind farm in the Netherlands. Initial preparations are now underway, with project completion expected in 2023.
Brexit: Tusk says UK MEPs could sit for 'months or longer'
The UK will take part in May's European elections and British MEPs could sit for "months or even longer", European Council President Donald Tusk has said.
Mr Tusk said the decision to delay Brexit to 31 October meant British voters will be going to the polls. But Brexit co-ordinator Guy Verhofstadt said the six-month extension was too short for change and too far away to prompt action. The UK PM has said she wants to leave the EU before 22 May to avoid the poll. But Theresa May needs to get her withdrawal deal - which has been rejected three times by Parliament - approved by MPs. Cross-party talks between the government and the Labour Party are set to resume this week to find a way through the impasse.
Meanwhile, US Speaker of the House of Representatives Nancy Pelosi has said there would be no chance whatsoever" of a post-Brexit trade deal between the US and UK if there was any weakening of the Good Friday Agreement. The 1998 peace deal led to the end of the Troubles in Northern Ireland.
Speaking in the European Parliament in Strasbourg, Mr Tusk insisted that if British MEPs were elected in May, they should be treated as "full members".
"One of the consequences of our decision is that the UK will hold European elections next month," he said.
"We should approach this seriously as UK members of the European Parliament will be there for several months - maybe longer." He said they will have "all the rights and obligations" of full members. "I have strongly opposed the idea that during this further extension the UK should be treated as a second category member state. No, it cannot," he said.
He said the EU had not given into "fear and scaremongering" that the UK would act in an obstructive way, saying the UK had been a "responsible and constructive member state".
BBC Brussels correspondent Adam Fleming said this was a "clear swipe" at French President Emmanuel Macron and others who had warned the UK could disrupt the functioning of the EU during a long extension.
'Brexit exhaustion'
The extension of Article 50 - the process by which the UK leaves the EU - gave the UK time to cancel its departure if that was what the British people wanted, Mr Tusk said.
He said he knew both sides of the Channel were "exhausted with Brexit" and this should not be "an excuse to say 'let's get it over with' just because we are tired".
"We must continue to deal with Brexit with an open mind and in a civilised manner," he said. European Commission President Jean-Claude Juncker reiterated that there will be no renegotiation of the withdrawal agreement. "Brexit is not the future of the EU," he said. "The future of the union will go well beyond Brexit."
The European Parliament's Brexit co-ordinator Guy Verhofstadt said the extension risked importing the "Brexit mess into the EU" and "poisoning" the European Parliament elections. He urged the UK government and the Labour Party to reach a cross-party consensus in the "coming days".
On Sunday, cabinet minister David Lidington said the government and Labour were "testing out" each other's ideas as they tried to resolve the Brexit deadlock. He told the BBC they had a "fair bit in common" over future customs objectives but further compromise was needed.
Headlines Monday 15th April 2019
Hyundai Heavy Wins USD 600 Mn Worth of Gas, Tanker Orders
South Korea’s Hyundai Heavy Industries has secured orders for five new gas and crude carriers, with a value of around USD 600 million, in recent weeks. The shipbuilder said that the units were ordered by European and Asian ship owners and include three gas carriers and two crude oil carriers.
An undisclosed Greek shipping company recently signed a contract for the construction of a 174,000 cbm LNG carrier. At the end of March, Hyundai Heavy reached agreements to build one LNG carrier for a Japanese owner, one LPG carrier for a compatriot company, and two crude oil carriers for Greek shipping firms.
Furthermore, Hyundai Heavy said it expects to receive additional orders for large-scale LNG carriers during 2019 on the back of an increasing LNG orderbook amid recent tightening of environmental regulations.
Worldwide orders reached 32.2 million CGT last year, up 14 percent from 28.1 million CGT recorded in 2017, HHI cited data from Clarksons.
This trend is expected to continue in the future, and the global order volume in 2023 is expected to reach 44.6 million CGT, the company continued. In 2019, the development of LNG projects in Russia and Qatar is expected to be will be full-fledged.
Energean hits ‘significant gas discovery’ with Karish North well
Energean Oil and Gas has made a significant gas discovery in the Karish North exploration well located offshore Israel. Energean started drilling the Karish North well on March 15, 2019, using the Stena DrillMAX drillship, a sixth generation drillship capable of drilling in water depth of up to 10,000 feet.
On Monday, April 15 Energean announced the discovery and said that preliminary analysis indicates initial gas in place estimates of between 1 Tcf (28 Bcm) and 1.5 Tcf (42 Bcm) and high quality reservoir in the B and C sands.
The well reached an intermediate TD of 4,880 meters approximately seven days ahead of schedule. A gross hydrocarbon column of up to 249 meters was encountered and a 27 meter core was recovered to surface. Further evaluation will now be undertaken to further refine resource potential and determine the liquids content of the discovery.
Drilling of the initial phase of the Karish North well is now complete. As planned, Energean will now deepen the well to evaluate hydrocarbon potential at the D4 horizon.
Once operations are completed on Karish North, the Stena DrillMAX will return to drilling the three Karish Main development wells. Following this four-well program, Energean has six drilling options remaining on its contract with Stena Drilling.
The Karish North discovery will be commercialized via a tie-back to the Energean Power FPSO, which is located 5.4km from the Karish North well. The FPSO is being built with total processing and export capacity of 8 Bcm/yr (775 mmcf/d), which will enable Karish North, and future discoveries, to be monetized.
In December 2018, Energean signed a contract with I.P.M Beer Tuvia (I.P.M.) to supply an estimated 5.5 Bcm (0.2 Tcf) of gas over the life of the contract. The contract is contingent, inter alia, on the results of Energean’s 2019 drilling program and the discovery announcement significantly increases the likelihood of its conversion into a firm contract, the company said.
Inclusive of the I.P.M. contract, Energean has contracted 4.6 Bcm/yr (445 mmcf/d) of gas sales, leaving a further 3.4 Bcm/yr (330 mmcf/d) of spare capacity in its FPSO for additional sales of discovered gas at Karish and the tie back of future discoveries.
Mathios Rigas, CEO of Energean said: “We are delighted to be announcing this significant new gas discovery at Karish North, which further demonstrates the attractiveness of our acreage offshore Israel.
“We are building the Energean Power FPSO with spare capacity, which will enable us to quickly, safely and economically develop both Karish North and future discoveries. We have already signed a contingent contract to sell 5.5 bcm (0.2 Tcf) of this new resource, and our strategy is now to secure the offtake for remaining volumes. We continue to see strong demand for our gas, which we believe will be supported by today’s announcement.”
RODA Launches Offshore Wind and Fisheries Research Alliance
The U.S. Responsible Offshore Development Alliance (RODA) has formed an alliance dedicated to advancing regional research on fisheries and offshore wind. The Responsible Offshore Science Alliance (ROSA) is expected to provide for and advance regional research and monitoring of fisheries and offshore wind interactions in federal waters. The group represents a collaborative effort of fishing industry representatives, offshore wind developers, and state and federal government agencies.
According to RODA, the goals of the alliance are to collect and disseminate data on fisheries and wind development and increase understanding of the effects and potential impacts of wind energy on fisheries and the ocean ecosystems on which they depend.
It will seek to address broader aspects of the ocean environment that offshore fisheries and wind energy activities occupy, including pre-facility baseline activity and resource status, ecosystem-based fishery management, socioeconomic effects, and cumulative impacts, RODA added.
“So much is poorly understood regarding the impacts of large-scale offshore wind energy development to fisheries and fish stocks, and studies that have been performed lack regional coordination,” said Annie Hawkins, Executive Director of RODA.
“This forum will be immensely helpful to the fishing industry so that it may provide leadership in study prioritization, methodology, and execution through cooperative research.”
ROSA has received support from NOAA Fisheries, EDF Renewables, Ørsted, Shell New Energies, and Equinor Wind US, RODA said, adding that its funding is derived from annual contributors, including wind energy leaseholders, with support from federal and state partners and other contributors.
MHWirth Bags Keppel FELS Contract
MHWirth, a company owned by Akastor, has signed a contract with Keppel FELS for delivery of one drilling equipment package for a new mid-water semi-submersible drilling rig. This is the first out of three options that were given when Keppel FELS and MHWirth signed a contract in April 2018 for a similar drilling equipment package, said the supplier of drilling equipment and facilities for the offshore industry.
Reference is made to stock exchange release dated 5 April 2018, it said. The rig will be built for Awilco Drilling PLC by Keppel FELS Limited in Singapore. Delivery is planned for Q1 2022.
The contract value for the drilling equipment package, including a mid-water riser package, is approximately USD 100 million. This will be included in the order intake in Q2 2019.
Mhwirth AS supplies drilling equipment and facilities for the offshore industry that includes components, drilling modules, and rig packages.
Akastor is a Norway-based oil-services investment company with a portfolio of industrial holdings and other investments.
Headlines Friday 12th April 2019
Study: Using LNG as Fuel Would Cut GHG Emissions by Up to 21%
Using LNG as marine fuel would reduce the shipping industry’s greenhouse gas emissions by up to 21%, according to a study conducted by SEA\LNG and Society for Gas as a Marine Fuel Limited (SGMF). The percentage of GHG reduction is compared with current oil-based marine fuels over the entire life cycle from Well-to-Wake (WtW). The parties said that the benefit is highly dependent on the engine technology installed and, to a certain extent, on the type of reference fuel (distillate or residual).
The study also confirms that emissions of other local pollutants, such as sulphur oxides (SOx), nitrogen oxides (NOx) and particulate matter (PM), are close to zero when using LNG compared with current conventional oil-based marine fuels. “The Life Cycle GHG Emission Study is a long-awaited piece of the ‘LNG as a marine fuel’ puzzle. It not only confirms what we already knew in terms of LNG’s immediate impact on air quality, human health and its cleanliness, but clearly highlights the genuine, substantiated GHG benefits of using today’s marine engines capable of burning natural gas,” Peter Keller, SEA\LNG Chairman, said.
A large number of SEA\LNG and SGMF member companies submitted up-to-date, technical data providing the basis for a complete and accurate life cycle analysis of the GHG intensity expressed in terms of CO2-equivalents. On an engine technology basis, the study showed that absolute WtW emissions reduction benefits for LNG-fuelled engines compared with HF-fuelled ships today are between 14% to 21% for 2-stroke slow speed engines and between 7% to 15% for 4-stroke medium speed engines. 72% of the marine fuel consumed today is by 2-stroke engines with a further 18% used by 4-stroke medium speed engines.
The study showed that LNG provides a significant advantage in terms of improving air quality which is particularly important in ports and coastal areas. Beyond the benefits associated with reducing air pollutants, the parties noted that LNG is a viable solution to reduce GHG emissions from international shipping and to contribute to the International Maritime Organization (IMO) GHG reduction targets. Ongoing optimisation in supply chain and engine technology developments will further enhance the benefits of LNG as a marine fuel, the parties noted. Additionally, bioLNG and Synthetic LNG, both fully interchangeable with LNG derived from fossil feedstock, offer the potential for significant additional GHG emissions reductions. For example, a blend of 20% bioLNG as a drop-in fuel can reduce GHG emissions by a further 13% when compared to 100% fossil fuel LNG.
The international shipping industry is under pressure to cut emissions on the back of the IMO’s ambition to reduce the GHG emissions from international shipping by at least 50% by 2050 compared with 2008. More stringent air quality regulations, such as the IMO 2020 global sulphur cap, are also approaching. In the light of the IMO 2020 global sulphur cap, conventional oil-based residual marine fuels will need to either change in their specification or be replaced by alternative fuels like LNG, the parties concluded.
Maersk Supply to install energy advisory system on its vessels in a bid to save fuel
Danish offshore shipping company Maersk Supply Service (MSS) has signed a contract with Eniram, a Wärtsilä company, to install an Energy Advisory System on its vessels. Announcing the introduction of this system on its vessels, MSS said on Friday that the system will use high quality data to optimize operations and save fuel in real time, lowering the company’s carbon footprint and fuel costs for customers.
Proof of concept will be carried out on two of Maersk Supply Service’s vessels: one M-class Anchor Handling Tug Supply Vessel (AHTS) and one I-class Subsea Support Vessel (SSV). After initial testing, the company plans to roll out the Energy Advisory System to four additional vessels, with the long-term goal of installation across the entire fleet.
The company noted that the installation of the Energy Advisory System is just one of several initiatives it has undertaken in an effort to reach its initial target of 5% reduction in fuel consumption by 2020. Chief Operating Officer, Claus Bachmann, said: “As a responsible vessel operator with an obligation to our customers and the environment, energy efficiency is at the top of our agenda. We are excited to officially enter this partnership with Wärtsilä to begin the pilot of the Energy Advisory System. This advanced technology will enable us to be smarter and more agile in our fuel reduction efforts.”
Testing of the Energy Advisory System on the first two vessels is expected to start during summer 2019.
In related news, Danish shipping giant Maersk, which has been contemplating options for its offshore support vessel subsidiary Maersk Supply Service – including a potential sale – for two years, has recently decided to retain full ownership of Maersk Supply Service.
Brexit uncertainty affecting mental health of 1 in 3 UK adults, study shows
Only 20 per cent of Conservative voters reported Brexit negatively impacted their mental health, compared with 43 per cent of Labour voters. Uncertainty about the future of Brexit is affecting the mental health of a third of UK adults, a new survey has found.
Around 33 per cent of people said Britain's departure from the European Union has had a negative effect on their wellbeing, according to a poll by the British Association for Counselling and Psychotherapy (BACP). Older people were more likely to be affected by anxieties over Brexit with 37 per cent of over-65s saying it had a negative impact on their mental wellbeing, compared with just 28 per cent of 16-24 year-olds.
Louise Taylor, a counsellor based in Cheshire, said the UK's uncertain future had left people feeling powerless, which was directly impacting their mental health. “While some people may be genuinely worried about their job, some people may have uncertainty in life anyway,” Ms Taylor said. “Brexit just adds to it by making the stress in their lives worse.” She added that almost a quarter of her clients mention Brexit as a “contributory factor” to a decline in their mental wellbeing. “People do feel stuck and powerless. We’ve had our say in the referendum, and yet we still don’t have any power over the events. Those are the two main emotions; uncertainty and a sense of powerlessness to change anything.”
Kate, 33, suffers from anxiety and depression. She says her symptoms have worsened since the results of the 2016 referendum, and she now experiences regular panic attacks and has trouble sleeping. “It really started to affect my mental health in the last few months after Meaningful Vote 1. I remember feeling really sick and anxious. It’s got worse from there. A lot of it is all the lingering going backwards and forwards,” she said.
“A couple of weeks ago, I was watching BBC News and I just lay on the floor and curled up into a ball until my partner came home. My other stresses and worries were involved in that too, but Brexit really heightened it. I felt awful,” she added. While only 20 per cent of Conservative voters reported Brexit negatively impacted their mental health, this figure doubled to 43 per cent for people who backed Labour, and 47 per cent for those who voted for the Liberal Democrats.
Kate, who voted for the Liberal Democrats in the 2017 election, said that all her family are “pro EU.” “My aunt lives in France, and my dad’s a dairy farmer,” said Kate. “He’s very reliant on the single farm payment – that’s a worry.”
Hilda Burke, a psychotherapist and couples counsellor, said she frequently sees a “learned helplessness” around Brexit. “This is a state which develops when a person has accepted that they have lost control over a situation and thus give up trying,” said Ms Burke. “It can stem from one particular situation – Brexit in this case – but can spiral into a sense of being out of control in all aspects of one’s life. In my clients, Brexit is often twinned with anxieties such as climate change or race/gender inequality. Often the client expressing such anxiety feels helpless and disempowered.”
In treating her clients, Ms Burke tries to explore ways to make them “feel more engaged and empowered".
“Often taking steps - however small - to affect change can help to ease their anxiety and sense of helplessness,” she said.
Headlines Thursday 11th April 2019
MSC Cruises Gets Approval for New PortMiami Cruise Terminal
MSC Cruises has received approval for its new cruise terminal at PortMiami from the Miami-Dade Board of County Commissioners on April 9. The company would design, construct, operate and maintain a large building that hosts two cruise terminals (AA and AAA) as well as two berths. The terminal would support the company’s expanding presence in North America, and particularly in the Caribbean, according to MSC Cruises.
The new PortMiami terminals will be capable of hosting two mega cruise ships at the same time, allowing the company to conduct two turnaround operations simultaneously, handling up to 28,000 passenger movements per day. “With another 13 cruise vessels due to join our fleet in the next eight years, our ambition is to have our most innovative ship classes represented at PortMiami,” Pierfrancesco Vago, MSC Cruises Executive Chairman, said.
MSC Cruises currently operates four vessels out of PortMiami, MSC Seaside and MSC Armonia year-round, MSC Divina seasonally, and MSC Meraviglia, which will join the ships sailing from Miami this fall, seasonally. With the new cruise facilities, the company will bring a total 1 million guests through PortMiami each year.
Work on the new terminals is scheduled to commence in early 2020. MSC Cruises estimates that the construction would be completed by late 2022, at which time the company would transfer all its PortMiami operations to the new terminal.
Planning Inspectorate Wraps Up Hornsea Three EIA Examination
The UK Planning Inspectorate has completed the examination of the environmental impact assessment (EIA) of Ørsted’s Hornsea Project Three offshore wind farm. The Examining Authority will now compile a report comprising conclusions and recommendations in respect of the application. The report is then sent to the Secretary of State for Business, Energy and Industrial Strategy (BEIS), who will decide whether to grant the development consent.
RPS Group said its technical specialists worked closely with Ørsted’s Environment and Consents team throughout the examination, providing input to the documents which have been produced and submitted since October last year.
“RPS have played a central role in preparing the Hornsea Three application and providing technical advice through the testing examination phase,” said Stuart Livesey, Ørsted’s Hornsea Project Three Development Manager.
“Their multi discipline team has been instrumental in preparing a robust evidence led assessment and have played a central role in responding to stakeholder and Examiners questions and concerns. They are a dedicated team and became trusted advisors on complex matters.”
RPS was also the lead EIA consultant for Hornsea Project One, consented in December 2014, and Hornsea Project Two, consented in August 2016. The 2.4GW Hornsea Project Three will be constructed more than 120km off the north Norfolk coast. It will comprise up to 300 turbines and if built to full capacity could power the average daily needs of over 2 million UK homes.
Brexit delay could extend term of Juncker Commission - EU official
European Union officials are considering an extension of the EU commission’s mandate should Britain be granted a long delay to its planned exit date, a senior official said on Wednesday. European Commission President Jean-Claude Juncker takes part in the European Commission's weekly college meeting in Brussels, Belgium, April 10, 2019. REUTERS/Yves Herman
It was a further sign of how Brexit delays could upset the functioning of the European Union. EU leaders were set to grant Prime Minister Theresa May a second postponement to Britain’s fraught exit at an emergency summit on Wednesday but were expected to argue over how long and on what terms.
A Brexit delay beyond EU Parliament elections scheduled on May 23-26 would force Britain to participate in the vote and elect representatives to the EU assembly - an option May wants to avoid but which could become inevitable if the British parliament fails to ratify a withdrawal deal in coming weeks. British participation could change the political balance in the next European legislature, EU officials fear, as Britons are seen electing strongly eurosceptic lawmakers, boosting already growing numbers of nationalists who seek to weaken the bloc.
Yet Britain’s Labour Party, if it fields candidates, could boost the weight of the socialist grouping in the EU assembly, potentially allowing the centre-left to gain a majority. Polls in the remaining 27 EU countries currently predict the centre-right will win most seats in the next EU parliament - so when Britain and its deputies leave the EU, the majority in the European assembly could change.
That raises uncertainty over the next executive commission, which must be approved by European lawmakers. As a result, EU officials are considering extending the mandate of the existing executive led by Jean-Claude Juncker beyond its term which expires at end of October, the senior official said. This extension, which would be limited to a few months, would avoid the risk that a changed power balance in the EU parliament after Brexit could raise doubt about the legitimacy of the new executive, the official said.
Commission Vice-President Frans Timmermans said on Wednesday he saw no reason to extend its mandate. He is the candidate for the socialist grouping for the presidency of the new commission. Britain’s May has asked for a delay of Brexit until June 30. EU summit chair Donald Tusk favoured a longer, flexible extension of up to 12 months. France and Germany supported a shorter extension.
Conditions to limit Britain’s role in the EU during any Brexit extension period in the coming months were expected to be agreed at Wednesday’s EU summit.
Headlines Wednesday 10th April 2019
NYK to Build New LNG Carrier for 20-Year Edison Charter
Japanese shipping major NYK Line has placed an order for a liquefied natural gas (LNG) carrier after signing a charter contract with Italy-based energy company Edison. The 174,000 cubic meter vessel was ordered from South Korea’s Hyundai Samho Heavy Industries. Featuring an X-DF fuel-efficient, dual-fuel engine, the new ship is scheduled to be completed in 2022.
The LNG carrier will have a length of 297 meters and a width of 46.4 meters.
On April 10, NYK revealed the newbuilding order as part of the long-term LNG carrier charter agreement signed with Edison. The company said that the deal was signed for a period of up to 20 years and includes an extension option.
In accordance with its new medium-term management plan, NYK is looking to secure stable freight rates through long-term contracts, provide flexible and optimal LNG transport options, and continue its efforts to contribute to a stable supply of LNG.
Aker Solutions and FSubsea to create new firm for boosting oil recovery
Norway’s Aker Solutions and its compatriot FSubsea have agreed to create FASTSubsea to help operators increase oil recovery in “a faster, simpler and more environmentally friendly way.”
Aker Solutions said on Wednesday that multiphase subsea pumping technology has the potential to increase oil recovery rates by more than 20 percent, but cost, space limitations and sometimes complex solutions mean multiphase pumps are installed in fewer than 30 of the world’s 1,500+ offshore fields.
With FASTSubsea, this is about to change, according to the two companies. Aker Solutions said that the new company combines its multiphase hydraulic technology with FSubsea’s Hydromag technology to create the world’s first “topside-less” multiphase boosting system.
The pump-module solution being developed by FASTSubsea can cut capex by half and enable subsea boosting at fields where there is no available topside space. Getting more out of existing wells reduces CO2-emissions per barrel.
“Creating FASTSubsea enables us to increase our speed to the market, reduce risk and reduce investment in multiphase test facilities,” said Alexander Fuglesang, CEO of FSubsea, who will take on the role of Managing Director of FASTSubsea. “Combining Aker Solutions’ subsea systems expertise and multiphase test facility with FSubsea’s Hydromag technology and lean mindset will benefit both companies, said John Macleod, Aker Solutions’ Chief Technology Officer.
“FASTSubsea has the potential to become a valuable addition to our portfolio of boosting recovery solutions.”
The agreement is subject to approval from the Norwegian competition authorities. The spread of subsea boosting technology has been hampered by cost and complexity. Conventional systems require a large amount of topside equipment on a platform or FPSO, including electric variable speed drives and supply systems for barrier fluid hydraulic oils. They also typically require several kilometers of hydraulic umbilicals between the pumps and the platform. This increases cost in the form of engineering and hardware spend.
Aker Solutions stated that the pump-module solution from FASTSubsea leverages FSubsea’s Hydromag technology, which is a unique combination of the world’s most powerful Permanent Magnetic coupling with an embedded hydrodynamic variable speed function, and Aker Solutions’ MultiBooster semi-axial impeller design, which has proven best-in-class pressure generation capabilities.
This system has built-in variable speed function and is barrier-fluid-less, which reduces capex cost with up to 50 percent. It unlocks opportunities with platforms that have no additional topside space but still can reap the economic benefits of increased recovery with subsea boosting system, Aker Solutions explained.
Aker Solutions and FSubsea will each hold a 50 percent of the outstanding shares in FASTSubsea and the board of directors will consist of an equal number of Aker Solutions and FSubsea representatives. Alexander Fuglesang acts as Managing Director of FASTSubsea and Bastiaen van der Rest as Technology and Operations Manager.
The company’s “topside-less” multiphase pump will be marketed towards subsea integrators and operators directly, as well as through Aker Solutions. FSubsea will continue to market Omnirise product range directly to the marketplace and Aker Solutions will continue to market LiquidBooster and MultiBooster product ranges directly to the marketplace.
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Is Scotland ready for EU elections?
If Brexit is not resolved soon, the UK could have to take part in European Parliament elections It is the election that was not (and is still not) supposed to happen. Brexit was to exempt Scotland and the rest of the UK from taking part. But delays to our EU departure mean the 2019 European Parliament elections are still in the diary for 23 May. Scottish parties are busy preparing for the contest knowing that it could still be cancelled.
It is, therefore, the mibbes aye, mibbes naw election. Whether or not it goes ahead depends, in part, on how Theresa May gets on at the special EU summit on Brexit in Brussels. The prime minister's asking to delay Brexit until 30 June, with the option of pulling out earlier if a deal and the necessary legislation is approved by MPs. If that happens by 22 May, Mrs May has said the European elections would not go ahead in the UK. The terms of any Brexit extension must first be agreed by all 28 EU countries.
The SNP was first among the Scottish parties to seek candidates for EU elections back in January, just in case they might be required. Sitting MEPs Ian Hudghton - the party president - and Alyn Smith are both standing for re-election. They hope to be among the three men and three women chosen by electronic ballot around the time of the SNP conference.
It's thought the former MSP and minister Aileen MacLeod and Mr Smith's chief of staff, Laura Rayner, have also put their names forward. Four of the group of Scottish MEPs elected in 2014 are seeking to be on the ballot paper again in 2019
The UK's longest serving MEP, David Martin, with 35 years experience, has agreed to stand again for Scottish Labour. He will top the party's list. Other potential candidates have until 10 April to put their names forward. A special panel of Scottish and UK party bosses will then interview and select five more hopefuls. The second placed candidate will be a woman, replacing Catherine Stihler who stood down as an MEP last month. Scotland's newest MEP, Nosheena Mobarik, is expected to be the main candidate for the Scottish Conservatives. She replaced Ian Duncan in the European Parliament in 2017 when he quit to take up a seat in the Lords and become a Scotland office minister.
The Tories second placed candidate is likely to be Iain McGill, who campaigned for Vote Leave in 2016. Others will be invited to put their names forward this week for consideration by the party's management board. The former leader of UKIP Scotland, David Coburn, is one of Scotland's six MEPs. He is expected to stand for Nigel Farage's Brexit party this time.
The Scottish Greens, who have never had an MEP, have made it their goal to replace him. Their members will whittle down a list of seventeen potential candidates over the next two weeks. Scottish Liberal Democrat members are currently ranking twelve potential candidates, with party convenor, Sheila Ritchie, considered the favourite.
The UK government has formally tabled the legal order to allow European elections to go ahead on 23 May. It has also written to returning officers offering to reimburse "reasonable and appropriate spending on contingency preparations".
The Scottish government has raised concerns that EU nationals from outside the UK might not have enough time to complete the appropriate paperwork to take part in the poll. Scotland has six of the UK's 73 seats in the European Parliament. These seats are to be shared between the EU's 27 remaining states if and when the UK leaves.
The EU has made clear that the UK must take part in this year's elections if Brexit has not happened by the time they take place.
Headlines Tuesday 9th April 2019
HydraWell bags P&A job in UK North Sea
Norwegian well integrity specialist HydraWell has signed a contract with an undisclosed UK-based supermajor to provide equipment and personnel for plug and abandonment (P&A) services in the UK North Sea.
The contract is valid for five years and is expected to be utilized for operations on a non-producing field in the UK sector of the North Sea, which ceased production in 2015, HydraWell said on Tuesday. HydraWell will provide support out of its office and operational hub in Aberdeen, UK. The contract value and the identity of the client have not been disclosed.
“The supermajor in question is one of the operators that have been instrumental in accessing the significant operational benefits of the PWC technology, particularly on the Norwegian continental shelf. We look forward to supporting the company again on the UKCS,” said Tom Leeson, chief commercial officer of HydraWell.
To support the operator, HydraWell said it would apply its HydraHemeraTM PWC (perforate, wash and cement) system that perforates the well before washing behind the casing and then setting the cement plug in the well. The high pressure PWC jetting system can be utilized for plug & abandonment (P&A), slot recovery and well repair operations of single and dual casing offshore and onshore wells.
“The key benefit of the PWC jetting system is that it can install a rock-to-rock barrier, in line with UK regulatory requirements, in less than two days. In comparison, traditional methods such as section milling takes significantly longer to complete, driving up the associated rig costs,” said Tom Leeson.
HydraWell invented the PWC technology and has installed more than 280 plugs. The technology was first applied on the Norwegian continental shelf.
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‘Shortage of women’ blamed for North Sea gender pay gap
Energy chiefs have insisted a shortage of women looking to join the sector is partly to blame for the gender pay gap in the north-east. New figures have revealed nine of the 10 companies in the north-east with a discernible gap are oil and gas firms. Companies across the UK have been reporting numbers examining male and female pay in comparable job roles.
The results found a significant number of firms in the north-east energy sector are paying men considerably more than women or lack enough females in senior positions.
Two companies returning a widening gap in gender pay were Inverness-based Global Energy and Cape Industrial Services in Aberdeen. Global Energy reported a 69% gap for 2018/19 compared to the previous year (19%), while Cape Industrial Services noted a 35.1% pay gap open up. A spokesman for Cape insisted the figures did not “represent inequality” within the firm and that it pays people fairly “regardless of gender”. He added: “In the past year we’ve had more males employed in technical roles, which accounts for the larger year on year gap. “We’re working hard to promote diversity and inclusivity, and are working hard to attract and recruit a workforce reflective of the available talent pool.”
North Sea operator Canadian Natural Resources (CNR) International showed a stark improvement on the previous year, but was still among the top ten worst firms on gender pay overall. The firm said it had engaged with employees “to identify specific focus areas, including promoting this through our recruitment, development and training, and through our community investment programmes.” And Jim Bruce, training executive for Tullos Training in Aberdeen, said that the industry as a whole is suffering from a shortage of women looking to join the sector or take up energy apprenticeships. He claimed there had been significant drop in female apprentices since the oil downturn in 2014.
He said: “At the moment, we just can’t seem to get young women to see oil and gas as a place to begin their career.
“The sector was once somewhere where young people saw a future in terms of good pay and a job for life, but that really dropped off after the downturn.
“We’ve got a number of companies who would love to have a female engineer, but we just can’t get them.
“It’s a real shame, as women often make better engineers.”
Alix Thom, Oil and Gas UK’s workforce engagement and skills manager, agreed there was a shortage of women in the sector and that gender pay gap reporting should be seen as an opportunity to “develop plans to close the gap”. She added that the industry “must work together to encourage more women into those jobs”.
Aberdeen-headquartered firm Enermech reported the greatest narrowing of the pay difference, dropping from a 33.5% gap in 2017/18 to 3.1% in 2018/19. The company revealed that in recent months it had appointed a number of females to senior positions, which had impacted positively on the hourly wage pay gap. EnerMech chief executive Doug Duguid said: “While our results have improved since last year’s submission, we recognise a gap remains and this requires further effort.
“In common with many other businesses in the oil and gas sector, we also have fewer women working offshore or in other technical roles such as engineering or project management which attract higher levels of pay.
“We are working hard to bring gender balance to our workforce and the percentage of females currently working in upper and middle quartile roles within EnerMech have increased since the previous year.”
Kathryn Hardacre, analytics lead for the gender focused group Aberdeen X-Industry Support Network (AXIS) and lead production geologist at oil and gas firm Chrysaor, added that, as a consequence of gender pay reporting, the issue has “come to the attention of boards in the sector and is now seen as a business imperative.
She added: “In this first year, the data show more operators than not have narrowed their gap and increased the percentage of women in the top pay quartile. We think this is good news.
“However, we also think there is still much to be done, and this will need sustained focus for years to come – there is no quick fix.”
EU open to Brexit extension but PM May needs clear plan
European Union ministers said on Tuesday the bloc was ready to grant Britain a second Brexit delay but that British Prime Minister Theresa May must come up with a clear plan of how to ratify the stalled divorce deal in the overtime. EU ministers are meeting in Luxembourg a day before 27 national leaders of the bloc will decide during afternoon talks in Brussels on whether to allow Britain another extension to try to break the deadlock in London over Brexit.
Without an extension, Britain is due to leave the EU at 2200 GMT on Friday, without a deal to cushion the economic shock. German, Dutch, Irish and Luxembourg ministers made clear in comments on arriving to the meeting that a no-deal Brexit must be avoided.
“Everybody this week are open to an extension but they certainly want to see a plan attached to that extension,” Ireland’s Foreign Minister Simon Coveney told reporters. His Dutch colleague Stef Blok echoed: “It’s in the Dutch interest to avoid hard Brexit and if more time is needed to avoid no-deal Brexit, we should provide more time.”
“I really hope the UK will find a solution to avoid this no-deal Brexit. We are hoping for a specific plan from the UK side on how to avoid this no-deal Brexit.”
Luxembourg’s Jean Asselborn said the EU side would do “everything we can” to avoid a no-deal Brexit. But the German Minister Michael Roth made clear that May must come up with a clear plan to convince EU leaders on Wednesday to postpone Brexit beyond the current cliff-edge date of Apr.12.
“I must unfortunately note that the conditions set... have not been met,” he said.
“We are of course thinking about an appropriate extension of the deadline and also about a longer extension. They must, however, come with very strict conditions,” Roth said, citing British participation in May’s EU parliament election as one such condition. George Ciamba of Romania, which currently holds the EU’s rotating presidency, said the EU welcomed Britain’s readiness to organise European Parliament elections in May, but made clear that was not enough.
“It is important for us to understand why the UK wants to stay (longer), you have to stay with a view to something,” he said.
“We have been in the same situation just a couple of weeks ago, we cannot afford to be discussing the same issue every two weeks without a plan,” he said.
Headlines Monday 8th April 2019
DFDS Chooses DESMI Ocean Guard BWMS for Entire Fleet
Danish shipping and logistics company DFDS has contracted compatriot company DESMI Ocean Guard A/S to install ballast water management systems (BWMS) on DFDS’ existing fleet of vessels.
As informed, DFDS and the BWMS manufacturer recently signed a framework agreement for the supply of CompactClean BWMSs. The agreement covers more than 40 ferries to be retrofitted in the period from early 2020 until end 2024, according to DESMI Ocean Guard.
The majority of the vessels will be retrofitted with either a CompactClean-340 or a CompactClean-500 system, with max flow capacities of 340 m3/h and 500 m3/h respectively. A few vessels will be retrofitted with CompactClean BWMS with 750 m3/h or 1000 m3/h capacity.
“We are … proud that after a very careful evaluation and selection process DFDS decided for installation of the CompactClean BWMS on its entire existing fleet,” Rasmus Folsø, CEO of DESMI Ocean Guard A/S, adding that the company is looking forward to beginning the implementation across the DFDS’ fleet.
Founded by A. P. Moller – Maersk A/S, Skjølstrup & Grønborg ApS and DESMI A/S in 2009, DESMI Ocean Guard is today wholly owned by DESMI. The manufacturer has so far developed three type approved BWMSs, with the most recent one being the CompactClean BWMS.
At the end of 2018, DFDS had 42 owned and 11 chartered in ferries deployed on the company’s ferry routes.
Zennor Petroleum: Finlaggan ‘firmly on track’
Oil and gas company Zennor, developing the Finlaggan field in the UK North Sea, is making progress at the project as offtake deals have been confirmed and production wells have been successfully drilled. The Finlaggan development targeting 30mmboe of gas condensate reserves from two subsea production wells tied back 20km to the Britannia platform, which is operated by ConocoPhillips.
In an update on Monday, Zennor said that both Finlaggan production wells (F1 and F2) have now been successfully drilled and cased to their target depths with long and highly productive lateral sections through the Lower Cretaceous reservoirs. The wells were drilled by Transocean’s Paul B Loyd Junior drilling rig.
“The results from both wells have been very encouraging with F1 demonstrating high quality hydrocarbon bearing sands in the northern extension of Finlaggan as prognosed, and F2 proving sand continuity over the previously interpreted fault between the southern two segments of the field. Zennor is delighted with the results achieved and the positive implications for reserves and productivity. Completion and clean-up operations across both wells are now underway and are expected to be finished during the current quarter,” the company added.
Apart from the operational update, Zennor said it had on March 28 2019, executed all major Finlaggan offtake agreements in line with previously agreed commercial terms.
“These agreements provide for the export of Finlaggan production through the Britannia facilities, the Forties Pipeline System, the SAGE Terminal and the SEGAL System,” Zennor said.
Martin Rowe, Zennor’s Managing Director, said: “The team has worked exceptionally hard over recent months and I am delighted to see those efforts come to fruition in achieving significant commercial and operational milestones. All aspects of the Finlaggan development project are firmly on track to deliver first production in Q4 2020 as planned and we greatly appreciate the support we continue to receive from our key contractors, partners, banking syndicate, the OGA and our shareholders.”
As previously reported, the subsea construction contract has been awarded to TechnipFMC, with the main installation works planned for 2019. This includes the laying of a 10” pipe-in-pipe production flowline and electrohydraulic control umbilical back to ConocoPhillips’ Britannia platform.
Scottish economy 'moving closer to EU'
Scotland's economy has been growing more interlinked with that of the European Union as a whole since the Brexit referendum. That's according to a report by the Fraser of Allander Institute, which updates an analysis carried out for the GMB union and published in November 2017.
That previous report showed 135,000 jobs were linked to demand from the European Union for Scottish exports. That relates to £14.9bn-worth of goods and services sold to the other 27 member states. The update, published by GMB on Monday, shows a further 9,000 jobs are tied to that trade, taking it to 144,000. The biggest growth sectors for EU exports have been in petroleum and in food and drink. The report also emphasises how much more exports of services have grown, up 98% since 2002.
By contrast, manufacturing exports are nearly 80% more valuable than services (£8.9bn, to £5bn), but only 3% higher than they were 17 years ago. Exports were given a fillip after the June 2016 vote, when the value of sterling fell. The price of oil has also risen significantly since 2016. At the time of the referendum, a barrel of Brent crude oil was trading below $50. After a surge in price last year, it fell during winter, and ended last week above $70 for the first time since November.
In other work carried out by the Fraser of Allander Institute at Strathclyde University, Brexit could have the effect of reducing employment by between 30,000 and 80,000 jobs in Scotland over the next decade. Gary Smith, Scotland secretary of GMB, commented on the most recent report: "Let's be clear that for Scotland, the best Brexit would be no Brexit at all, but in the absence of that, there needs to be an honest analysis of our future prospects." He said the report's findings "are the hard facts facing Scotland, so this week we should not entertain any nonsense from Brexit cheerleaders about 'taking back control' or a 'jobs first Brexit' - even at the eleventh hour, the very least those driving us over the cliff-edge can do is tell the truth".
The "jobs first Brexit" is the slogan used by Labour leader Jeremy Corbyn. Mr Smith has been critical of the leadership's approach to Brexit and its potential economic effect. The union secretary said the "price of political failure will likely be measured in divestment, redundancies and closures across Scotland - a new era of economic and industrial decline that will take hold over the next few years and take a generation from which to recover".
Other findings in the update from the Fraser of Allander Institute are that there remain few overall, significant differences between Scotland and the rest of the UK in its exposure to the effects of Brexit - except that some sectors have a bigger role in the Scottish economy, including drinks manufacturing and fisheries.
The authors of the report say the eventual outcome of Brexit will depend on future policy responses of government, and the opportunities that may arise to export to non-EU markets. They advise government, trade unions and businesses to develop contingency plans for different outcomes.
"At the same time, it is important that our economy has come through upheaval before and there will be economic opportunities in the months and years ahead. Identifying such opportunities and being flexible enough to respond as they emerge will be just as important".
Headlines Friday 5th April 2019
Tufton Oceanic Invests in Two More Vessels
UK’s fund management company Tufton Oceanic Assets Limited has further expanded its fleet with two general cargo vessels.
The company reached an agreement to invest USD 13.1 million into the two units, which will be bareboat chartered to an unnamed general cargo shipping operator.
These are Tufton Oceanic’s first investments made from the proceeds of the placing announced on March 11, 2019. The additions will take the company’s fleet to fourteen vessels.
According to Tufton Oceanic, the average tenor is 5.5 years. The yield on these vessels exceeds the targets expressed in the company’s prospectus dated September 25, 2018.
Saipem nets over $200 million in new offshore drilling contracts
Italian offshore contractor Saipem has been awarded new contracts in offshore drilling in Norway and Middle East totaling over $200 million. Saipem said on Friday that one contract was signed with the German company Wintershall for the drilling of two wells plus two optional ones in continuity with previous engagements for operations offshore Norway.
The contract will be executed by the sixth-generation semi-submersible rig Scarabeo 8, a drilling unit capable of operations in harsh environments. The rig is expected to be under operation until approximately the second quarter of 2020.
“With this contract, Saipem consolidates its presence in the North Sea-Norwegian Sector and extends its client base in offshore drilling to a new important player,” Saipem said.
Furthermore, Saipem has been awarded one contract in Middle East, which involves a four-year extension of the use of the high specs jack-up Perro Negro 7. Perro Negro 7 is a self-elevating drilling unit capable of operating in water depths of up to 375 feet. Work started at the end of the first quarter of 2019.
“With this long-term commitment, Saipem strengthens and confirms its presence in a key area of shallow water operations and in a strategic market for the company overall,” Saipem concluded. In related news, Saipem was recently reported by Bloomberg to be in talks for the sale of its drilling businesses, both onshore and offshore.
According to the financial news giant, the Italian oilfield services provider is in discussions with interested parties to divest its drilling units in two separate transactions. Bloomberg based its report on information provided by unnamed sources familiar with the matter, who also said that Saipem, also involved in engineering and construction business, might elect not to sell the drilling business.
Offshore Energy Today has reached out to Saipem, seeking confirmation of the report. A Saipem spokesperson declined to comment.
Madrid opera greens under Acciona direction
Teatro Real will receive 100% renewable energy under a five-year deal. Acciona Energy is to supply 100% renewable electricity to the Teatro Real opera house in Madrid, Spain, under a five-year deal. The €3.78m supply contract will run from now until February 2024 and will result in the delivery of about 7 gigawatt-hours of electricity.
The deal is also certified by the Spanish National Markets and Competition Commission. Acciona has also renewed its contract to supply clean power to the Museo Nacional Centro de Arte Reina Sofia in Madrid from February to December 2019.
The contract will result in approximately 10.9GWh a year of renewable energy being delivered to the museum.
Acciona Energy management director Santiago Gomez Ramos said: “We are pleased to work with such emblematic entities as the Teatro Real and the Reina Sofia to contribute to the decarbonisation of the culture sector through clean and competitive energy supplies, which will undoubtedly please the thousands of people that visit their facilities.”
The company also supplies renewable electricity to other major cultural institutions in Spain, such as the Museo Nacional del Prado and the Museo Thyssen-Bornemisza.
It has also marketed clean energy to the National Library and eighteen museums that come under the Ministry of Education, Culture and Sport.
Brexit: UK asks EU for further extension until 30 June
Theresa May has written to the EU to request a further delay to Brexit until 30 June. The UK is currently due to leave the EU on 12 April and, as yet, no withdrawal deal has been approved by MPs. Mrs May has proposed, if UK MPs agree a withdrawal deal in time, the UK should be able to leave before European Parliamentary elections on 23 May. But she said the UK would prepare to field candidates in those elections, in case they do not reach agreement.
The prime minister wrote to European Council President Donald Tusk to request the extension ahead of a summit of EU leaders next Wednesday. She requested an extension to the end of June at the last summit, which took place shortly before 29 March - the date the UK was originally meant to have left the EU. But she was offered a short delay to 12 April - the date by which the UK must say whether it intends to take part in the European Parliamentary elections - or until 22 May if UK MPs had approved the withdrawal deal negotiated with the EU. They voted it down for a third time last week.
In her letter, she says the "impasse cannot be allowed to continue", as it was "creating uncertainty and doing damage to faith in politics" in the UK. She said if cross-party talks with the Labour Party could not establish "a single unified approach" in the UK Parliament - MPs would be asked to vote on a series of options instead which the government "stands ready to abide by". She wrote that the UK proposed an extension to the process until 30 June and "accepts the European Council's view that if the United Kingdom were still a member state of the European Union on 23 May 2019, it would be under a legal obligation to hold the elections".
But it said if a withdrawal agreement could be ratified by Parliament before then "the government proposes that the period should be terminated early" so the UK can leave the EU before then, and cancel preparations for the European Parliamentary elections.
Headlines Thursday 4th April 2019
Drewry: Routing Options to Ease Dover Congestion Post-Brexit
Short-sea container services could provide alternative capacity between the UK and EU to alleviate possible congestion at the Port of Dover post-Brexit, a study by shipping consultancy Drewry showed.
These latest findings follow an earlier Brexit briefing and resilience study by Drewry which concluded that the Port of Dover had the capacity to cope with moderate Brexit disruption.
Using this ‘alternative mode’ assumption, Drewry sought to understand the current container services available at UK Ports, their connectivity with EU Ports and to examine what container shipping lines could do to accommodate additional volumes by understanding current service capacity levels and how easily additional capacity, if required, might be deployed.
“In this second phase of our short-sea analysis we have turned our attention to alternative capacity and congestion mitigation,” said Tim Power, head of Drewry Maritime Advisors.
Powel explained that container shipping line services not only have the capacity, options and flexibility to handle additional container volumes in the event of disruption to cross-Channel freight services but also container terminals in the UK have the capacity to meet the additional throughput demands.
The study highlighted that of the 2.5 million trailers going via Dover up to 20% could possibly shift to another mode of transport. Also, the study showed that there are four ways that container shipping lines could cater for this demand, namely, making use of spare capacity on existing services; increasing frequency on existing services; increasing vessel sizes on existing services; and launching new services.
Furthermore, the study noted that UK container terminals in 11 ports have a combined spare capacity of 5.9 million TEUs, sufficient to handle this additional volume and provide wide geographical coverage.
Triton Knoll Homeports at Grimsby’s Royal Dock
Grimsby’s Royal Dock has been confirmed as the home for Triton Knoll’s offshore construction and operations and maintenance facility after the project signed a port lease with ABP in Grimsby.
A new construction and longer-term Operations and Maintenance base will be constructed across nearly four acres. Tendering for a contractor to build the facility is also underway, and due to be concluded later this Summer. Triton Knoll also aims to recruit new and existing technicians to its team, with the first up to 20 roles expected to be recruited and in place by the end of the year.
Julian Garnsey, project director for Triton Knoll and innogy, said: “We are very pleased to be establishing our long term home in what could be considered to be the hub of the offshore wind industry. The recent Offshore Sector Deal sets out the huge potential of offshore wind to create up to 27,000 high skilled jobs in UK coastal communities. Continued commitment to new and expanding facilities such as ours with ABP, means we can deliver even greater investment into coastal communities and businesses, where jobs and economic regeneration are most needed.”
New facilities to be constructed at ABP’s Royal Dock will provide the base from which Triton Knoll will manage the construction and 20-25 year operations and maintenance activities of its offshore site, which is over 145km2 in size.
As a result, the port will support regular, long-term vessel movements, including service operations vessels and crew transfer vessels, during both the construction and operations phases.
“This new lease further underlines Grimsby’s place as the world’s largest offshore wind O&M port,” Simon Bird, Regional Director for ABP Humber, said.
”The Port of Grimsby has seen exceptional growth in terms of supporting the renewable sector in recent years and already supports almost 1.5GW of installed capacity. It is through this collaborative approach that ABP can proclaim we are at the centre of driving the green supply of energy for the nation. “
The 857MW Triton Knoll offshore wind farm will consist of 90 of MHI Vestas 9.5MW turbines, two substations and over 100km of cabling. The wind farm is jointly owned by innogy (59%), J-power (24%) and Kansai Electric Power (16%), with innogy managing the construction of the wind farm on behalf of the partnership.
Welsh wave sails into floating wind
Marine Power Systems to develop concepts derived from WaveSub device. UK wave developer Marine Power Systems has taken the wraps off two floating wind concepts designed to be installed in deep water locations.
Research and development of its megawatt-scale WaveSub device has led the Swansea outfit to progress two derivative devices, the DualSub (pictured) that captures both wave and wind energy and WindSub that captures only wind energy.
The two floater concepts have undergone prototype stability tests, detailed computational simulation and cost of energy modelling.
Positive results have encouraged the Welsh developer to step up development of WindSub and DualSub to a scaled-up prototype, said MPS chief technical officer Graham Foster.
“Initial tests revealed that WaveSub offered a strong, stable platform on which a turbine could be installed, enabling the simultaneous capture of wave and wind energy from the ocean – essentially the WaveSub can be adapted to be a floating wind turbine and wave energy device in one,” he added.
“We look forward to further developing our offshore wind technologies alongside our WaveSub device during 2019.”
Brexit: MPs back delay bill by one vote
MPs have voted by a majority of one to force the prime minister to ask for an extension to the Brexit process, in a bid to avoid any no-deal scenario. Labour's Yvette Cooper led the move, which the Commons passed in one day.
The bill is due to be considered by the Lords later and will need its approval to become law, but it is the EU which decides whether to grant an extension.
It comes as talks between Conservative and Labour teams to end the Brexit deadlock are set to continue. Discussions between the two leaders on Wednesday were described as "constructive", but were criticised by MPs in both parties.
Meanwhile, Chancellor Philip Hammond has suggested that he expects Brussels to insist on a lengthy delay to Brexit and described a public vote to approve any final deal as "a perfectly credible proposition".
But Health Secretary Matt Hancock told BBC Radio 4 Today he was "very strongly against" a public vote and he would not want to see a long extension to the Brexit process.
'Constitutional outrage'
Ms Cooper's attempts to prevent a no-deal departure from the EU passed by 313 votes to 312.
The draft legislation by the former Labour minister would force the prime minister to ask the EU for an extension to the Article 50 process beyond 12 April and would give Parliament the power to decide the length of this delay. Tory Brexiteers expressed frustration at the unusual process of a backbench bill clearing all stages in the Commons in a matter of hours, rather than months.
Mark Francois said: "It's difficult to argue that you've had an extremely considered debate when you've rammed the bill through the House of Commons in barely four hours. That is not a considered debate, that is a constitutional outrage."
The government's attempt to limit the bill's powers resulted in a 180-vote defeat - the second biggest defeat for a government in modern times. Responding to the Commons vote, the government said the bill would place a "severe constraint" on its ability to negotiate an extension to the Brexit deadline before 12 April, the date the UK is due to exit.
'Useful but inconclusive'
It comes as talks between government negotiators and Labour are set to continue throughout Thursday after Mrs May and Mr Corbyn agreed a "programme of work".
A No 10 spokesman said on Wednesday that both parties showed "flexibility" and "a commitment to bring the... uncertainty to a close". Mr Corbyn said the meeting was "useful, but inconclusive", adding there had not been "as much change as [he] had expected" in the PM's position.
The prime minister wants to agree a policy with the Labour leader for MPs to vote on before 10 April - when the EU will hold an emergency summit on Brexit.
But if they cannot reach a consensus, she has pledged to allow MPs to vote on a number of options, including the deal she has negotiated with the EU, which has already been rejected twice by MPs.
In either event, Mrs May said she would ask the EU for a further short extension to Brexit in the hope of getting an agreement passed by Parliament before 22 May, so that the UK does not have to take part in European elections. The cross-party talks have provoked strong criticism from MPs in both parties, with two ministers resigning on Wednesday.
Chris Heaton-Harris quit on Wednesday afternoon, claiming his job at the Department for Exiting the European Union had become "irrelevant" if the government is not prepared to leave without a deal. Wales Minister Nigel Adams also resigned, saying the government was at risk of failing to deliver "the Brexit people voted for".
Reports in papers including the Sun suggest as many as 15 more - including several cabinet ministers - could follow if Mrs May strayed too far from previous commitments. Among her "red lines" was leaving the EU's customs union, which allows goods to move between member states without undergoing checks or being subject to tariff payments.
Labour wants a new permanent customs union with the EU, while Northern Ireland's Democratic Unionist Party - which has propped up Mrs May's government - indicated on Wednesday that it could support the idea.
In an interview on ITV's Peston programme, Mr Hammond said that - while the Conservative manifesto had pledged to leave the EU customs union - "some kind of customs arrangement" was always going to be part of the future structure.
Asked about a public vote to confirm approval of the final Brexit deal, Mr Hammond said: "Many people will disagree with it. I'm not sure there's a majority in Parliament for it, but it's a perfectly credible proposition and it deserves to be tested in Parliament."
Second referendum
Mr Corbyn is coming under pressure from senior colleagues in his party to make a further referendum a condition of signing up to any agreement.
Demanding the shadow cabinet hold a vote on the issue, shadow foreign secretary Emily Thornberry said not backing a confirmatory vote would be a "breach" of the policy agreed by party members at its last conference.
The party's deputy leader, Tom Watson, told Peston that Labour members would "find it unforgiveable" for "us to sign off on Theresa May's deal without a concession that involves the people".
However, party chairman Ian Lavery is reported to have warned against the idea, arguing that it could split the party. European leaders will continue deciding how to respond to Brexit, with Ireland's prime minister, Leo Varadkar, hosting German Chancellor Angela Merkel in Dublin later.
The UK has until 12 April to propose a plan to the EU - which must be accepted by the bloc - or it will leave without a deal on that date.
Headlines Wednesday 3rd April 2019
Northwest Seaport Alliance OKs Container Terminal Upgrade
The Northwest Seaport Alliance (NWSA) has moved a step closer to welcoming containership giants as it authorized Terminal 5 construction and lease agreements on April 2.
The deal, including future Phase II commitment, represents approximately a half-billion dollars in private and public investment in the region’s economy, according to NWSA.
In addition, an interlocal agreement was approved, allowing the Port of Seattle to use a portion of Terminal 46 for a cruise berth.
The modernization of Terminal 5 “will ensure robust and competitive marine cargo and maritime industrial activities in our harbor for the next 30 years, sustaining and creating family-wage jobs and economic opportunity for the region,” Stephanie Bowman, Port of Seattle commission president and co-chair of the NWSA, said.
“Terminal 5 will be able to handle the largest marine cargo vessels now being deployed in the Asia-Pacific trade route quickly and efficiently, providing a critical link for Washington state exports to Asian markets,” said Clare Petrich, Port of Tacoma commission president and co-chair of the NWSA.
Vessels regularly visiting the gateway have grown in capacity from 4,800 TEUs in 1997 to 14,000 TEUs today.
The lease package approved by NWSA would see SSA Terminals (Seattle Terminals) start operating the Terminal 5 once phase one construction is complete in 2021. The current lease at Terminal 18 would be amended to introduce conditional consent for the lease to be assigned to the new joint venture (SSA Terminals and TIL) and waive a rail yard fee.
The current Terminal 46 lease with TTI will terminate early, allowing international container cargo to be realigned to Terminal 18. This presents the opportunity for Port of Seattle to operate a cruise berth on a portion of the property with breakbulk or project cargo on the remaining, larger section of property.
Matson’s Hawaii service will relocate to the south berth at Terminal 5 while the north berth is under construction, creating additional room at Terminal 30 for international container cargo.
Norwegian OSV owners win work with Total, Ocean Installer
Norwegian offshore vessel owners Eidesvik and Havila have this week secured work for two of their vessels.
Eidesvik on Tuesday said it had won a contract for the subsea construction vessel Viking Neptun with Ocean Installer for a period exceeding two months with further options to extend. The contract will start in Q3 2019. This contract is in addition to the one already announced in December 2018.
Offshore Energy Today in December 2018 reported that Ocean Installer would hire the 145 meters long Viking Neptun on a term contract, with Eidesvik saying the startup was scheduled for “early 2020 and 2021.”
Also worth noting, another Norwegian offshore vessel operator Havila Shipping, on Wednesday said it had won term work for one of its platform supply vessels.
Havila said that the oil company Total had extended the contract for PSV Havila Commander for one year.
“The contract is in direct continuation of the existing contract and will keep the vessel working for Total until mid April 2020,” Havila added.
Banks pops Kype Muir cork
Banks Renewables has officially opened the Contract for Difference-backed 88.4MW Kype Muir wind farm in Scotland.
The South Lanarkshire project (pictured) consists of 26 Senvion 3.4M104 turbines each with a tip height of 132 metres.
The wind farm is close to Banks’ 51MW Middle Muir that reached full operations in January.
RJ McLeod tackled civil engineering on both projects located near Strathaven. Kype Muir was inaugurated by Scottish Energy Minister Paul Wheelhouse.
“Onshore wind continues to be the lowest form of energy at scale and remains vitally important to our decarbonisation ambitions,” he said.
Banks Renewables director Richard Dunkley added: “We look forward to working with the Scottish government, and others, to ensure that onshore wind – the cheapest form of renewable energy – has a route to market in the coming years.”
The Hamilton developer will make annual contributions of £442,000 into a fund flowing from the communities’ share of wind farm revenues.
Half of that money will be ring fenced for the Connect2Renewables employability fund focused on increasing access for local people to employment opportunities.
Brexit: May expected to meet Corbyn to tackle deadlock
Theresa May is expected to meet Jeremy Corbyn later after she said she wanted to work with the Labour leader to break the Brexit deadlock.
The prime minister hopes the two of them can come up with a modified version of her deal with the EU that can secure the backing of MPs.
Mr Corbyn says he wants a customs union and workers' rights to be priorities.
But Tory Brexiteer Boris Johnson has accused Mrs May of "entrusting the final handling of Brexit to Labour".
Jacob Rees-Mogg, another prominent Brexiteer, described the offer as "deeply unsatisfactory" and accused Mrs May of planning to collaborate with "a known Marxist".
Mrs May announced her plan to meet Mr Corbyn - as well as her intention to ask the EU for an extension to the Brexit deadline - after more than seven hours of talks with her cabinet on Tuesday.
BBC political editor Laura Kuenssberg says the latest move means the prime minister is likely to adopt a closer relationship with the EU - a softer Brexit - than she has agreed so far.
Mr Corbyn said he was "very happy" to meet Mrs May and recognised his own "responsibility" to try to break the deadlock.
But the meeting is not expected to take place before this afternoon, at the earliest, says our political editor, who was told by Mr Corbyn's team that he was not available on Wednesday morning for talks with the PM.
Meanwhile, a cross-party group of MPs will attempt to push through legislation to stop a no-deal Brexit.
If passed into law, the bill - presented by Labour MP Yvette Cooper - would require the PM to ask for an extension of Article 50 beyond that deadline.
The UK was supposed to leave the EU on 29 March, but Mrs May agreed a short extension after MPs refused to endorse her withdrawal deal.
Attempts by MPs to find an alternative way out of the impasse also failed for the second time this week.
The UK now has until 12 April to propose a plan to the EU - which must be accepted by the bloc - or it will leave without a deal on that date.
Mrs May said she wanted to agree a new plan with Mr Corbyn on the future relationship with the EU and put it to a vote in the Commons before 10 April - when the EU will hold an emergency summit on Brexit.
She insisted her withdrawal agreement - which was voted down last week - would remain part of the deal.
If the two leaders do not agree a single way forward, Mrs May said a number of options would be put to MPs "to determine which course to pursue".
In either event, she said she would ask the EU for a further short extension to the Brexit date to hopefully get an agreement passed by Parliament before 22 May so the UK does not have to take part in European elections.
The final decision on a delay rests with the EU. The BBC's Europe editor Katya Adler said that its demands had not changed and it was "likely to put strict conditions on any further extension".
European Parliament Brexit co-ordinator Guy Verhofstadt, who has previously said he thought a no-deal Brexit was "nearly inevitable", welcomed Mrs May's offer of talks with Mr Corbyn.
"Good that PM Theresa may is looking for a cross-party compromise. Better late than never," he tweeted.
Headlines Tuesday 2nd April 2019
Sempra Energy Unit Gets US Non-FTA Approval for Liquefaction-Export Project In Mexico
Sempra Energy’s subsidiary Energía Costa Azul (ECA) LNG received two authorizations from the US Department of Energy (DOE) to export US produced natural gas to Mexico and to re-export LNG to countries that do not have a free-trade agreement (non-FTA) with the US.
Natural gas will be sourced from the company’s Phase 1 and Phase 2 liquefaction-export facilities in development in Baja California, Mexico.
“ECA LNG will source natural gas from some of the fastest-growing production regions in the U.S. and provide our customers with a competitive advantage in accessing world markets, especially Asia,” Joseph A. Householder, president and chief operating officer for Sempra Energy, commented.
“The authorizations are another step forward in the development of this project that could bring many benefits for Mexico, U.S. natural gas producers and our customers and partners in greater Asia,” Carlos Ruiz Sacristán, chairman and CEO of Sempra North American Infrastructure, said.
“We are pleased to continue to advance the development of ECA LNG, which can … meet the energy needs of isolated markets in Mexico and customers in Asia,” he added.
ECA LNG Phase 1 is a single train LNG facility to be located adjacent to the existing LNG receipt terminal. It is expected to utilize current LNG storage tanks, marine berth and associated facilities. Phase 2 of the project will include the addition of two trains and one LNG storage tank.
The DOE authorizations allow the export of 636 billion cubic feet (Bcf) a year of US-sourced LNG from these infrastructure projects. Phase 2 of the project will require additional DOE approval in order to export its full expected capacity.
The existing ECA receipt terminal was the first LNG receipt terminal constructed on North America’s West Coast. Located about 15 miles north of Ensenada, Baja California, it began commercial operations in 2008 and is capable of processing up to 1 Bcf of natural gas per day.
Last November, Sempra Energy announced that its subsidiaries IEnova and Sempra LNG had signed Heads of Agreements (HOAs) with affiliates of Total, Mitsui & Co., and Tokyo Gas for Phase 1 of the ECA LNG project, subject to reaching definitive agreements. TechnipFMC and Kiewit were selected as the engineering, procurement, construction and commissioning (EPC) contractors for the project, subject to reaching a definitive agreement on the EPC contract.
Development of the ECA LNG liquefaction project is subject to relevant conditions and financing agreements.
Deals signed for E. Guinea ‘Gas Mega Hub’
Noble Energy, as operator of Alen gas project offshore Equatorial Guinea has signed definitive agreements with Marathon Oil and Equatorial Guinea government to develop the fields gas resources via through Alba Plant LLC’s LPG processing plant and EG LNG’s LNG production facility, both located in Punta Europa island.
Marathon Oil is the majority shareholder in both Alba Plant LLC and EG LNG. This agreement will see Sonagas GE, the National Gas Company of Equatorial Guinea stake increased from 25% to 30%.
Existing production and processing facilities are already in place at the Alen Platform and in Punta Europa. According to a statement by the E. Guinea government, the Alen offshore platform will undergo minor modifications to export gas while primary condensate will continue to be produced and lifted offshore via the Aseng FPSO.
The Alen Unit joint venture will install and operate a 70-kilometer pipeline to transport gas from the Alen Platform to Punta Europa, where it will be processed and transported for sales on the global market.
The pipeline will be capable of transporting approximately 950 MMscfd of gas. First gas is expected in 1Q 2021.
“The Alen Unit gas monetization project will leverage the capacity of the world-class Punta Europa facilities. Modifications are already underway at Alba Plant in order to receive Alen Unit gas. No process modifications are expected at EG LNG in order to process Alen Unit gas,” the government said.
“This agreement is a significant step toward solidifying Punta Europa as a cornerstone component of the EG Gas Mega Hub for the potential development of local and regional natural gas,” said Mitch Little, Marathon Oil executive vice president, Operations.
“With tie-ins available and minor modifications under way at the Alba Plant, capital requirements are minimal. Importantly, the project leverages existing capacity of the world-class Alba Gas Plant and EG LNG facilities, and all parties benefit from exposure to global LNG prices.”
The project will provide an additional source of gas for the Punta Europa facilities and will transform the Alen platform into an Offshore Gas Hub for development of both Alen Unit gas, other Block O and I discoveries and potentially additional Gulf of Guinea gas fields, the government said.
The government said that the Alen Gas Offshore Hub will be the first hub in the Government’s vision of developing Equatorial Guinea as a Gas Mega Hub, comprising of additional offshore gas hubs, all feeding gas into the Punta Europa facilities.
“This is the kick off of our Gas Mega Hub and we will do more deals on other gas assets in the country that must be developed. Development of the Gas Mega Hub will ensure a thriving Equatorial Guinea gas industry into the future. It is my firm belief that it will create opportunities for development of our citizens in the Upstream and Downstream segments of the country’s oil and natural gas industry” said the Minister of Mines and Hydrocarbons, Gabriel Mbaga Obiang Lima.
“Monetization of Alen Unit gas could deliver around $1.5-2 billion dollars in additional State revenues over the life of the project, including revenues from Alen Unit and respective Punta Europa plants. Local content is going to play an integral part in the implementation of the project when it comes to contracting and jobs for our citizens. I am happy this project will support the employment of Equatoguineans employed by the Punta Europa plants and Alen platform, which currently stands at approximately 1,400 employees in total,” the minister said.
Nordex strikes 157MW gold in Australia
Acciona Energy orders 35 N149/4.0-4.5 machines for the Mortlake South wind farm
Nordex has secured a turbine order of over 157MW from Acciona Energy Australia for the Mortlake South wind farm in the state of Victoria.
The deal is for the installation of 35 N149/4.0-4.5 machines rated at 4.5MW from the Delta 4000 series.
Infrastructure works has already started and completion of the 157.5MW wind farm is expected in mid-2020
Nordex said the turbine is ideal for the site which has average wind speeds of 7.7 metres a second.
Nordex chief sales officer Patxi Landa said: "In addition to our successful sales in Europe, we are now increasingly meeting with significant interest in the N149 turbine in other international sales regions, like recently in Argentina and now in Australia. This order is yet another indication of the confidence placed in our state-of-the-art technology."
The German manufacturer has installed 370MW of hardware in Australia.
No-deal Brexit 'more likely by the day' says Michel Barnier
‘Positive vote’ by MPs needed to avoid cliff-edge Brexit on 12 April, says EU negotiator
Michel Barnier has warned that a no-deal Brexit is becoming more likely by the day in the wake of the Commons’ rejection of all of the alternative solutions to Theresa May’s deal.
Speaking in Brussels, the EU’s chief negotiator said there had to be a “positive vote” by the Commons in order to avoid a cliff-edge Brexit on 12 April.
“No deal was never our desired or intended scenario,” Barnier told an audience at a thinktank event. “But the EU27 is now prepared. It becomes day after day more likely.”
Three scenarios were set out by the EU official: agreement this week on the prime minister’s deal or a variant of it, no deal, or a long extension to article 50 requiring “a strong justification”.
Such is the frustration in EU capitals at the failure of Westminster to coalesce around a vision of its post-Brexit future that it increasingly appears that a lengthy delay beyond 22 May can only be guaranteed in the event of a general election or second referendum.
Barnier said that an extension of article 50 beyond the end of May, requiring the UK to elect MEPs, “would carry significant risks for EU and therefore strong justification would be needed”.
He added that businesses in the EU had warned Brussels “against the cost of extending uncertainty”. The UK prolonging its status as a member state while still seeking to leave with a negotiated deal “could pose a risk on our decision-making autonomy”, Barnier said.
On Monday night, all four options put to the Commons to break the Brexit impasse were rejected by MPs, although by small margins, raising some hope that a solution might be found later in the week.
“Jean-Claude Juncker said yesterday the patience of the EU is at the limit”, Barnier said. “Personally as the negotiator I have some patience left.”
The customs union motion tabled by the former Conservative chancellor Ken Clarke was rejected by a margin of only three votes, by 273 to 276, while a second Brexit referendum fell short of a majority by 12 votes.
The Norway-style “common market 2.0” Brexit deal championed by Nick Boles, who later dramatically resigned the Conservative party whip, was also rejected, by 261 votes to 282, despite Labour frontbench and SNP support. Just 33 Conservative MPs backed it.
MPs are expected to try again at holding indicative votes on Wednesday, with the options likely to have been narrowed further. Should parliament back a customs union, swift changes to the political declaration on the future could be made.
But during a marathon five-hour session of the cabinet on Tuesday, the prime minister is also likely to suggest her deal is put in a run-off against an agreement backing a customs union, in an attempt to finally secure ratification for the current agreement.
In either case, Barnier suggested the UK could still leave the EU by 22 May to avoid having to hold European elections.
“The House of Commons did not manage to find a majority again last night”, Barnier said. “We’ve always said we can accept a customs union or our relationship along the style of the Norway model. The political declaration can accommodate this today.”
Barnier said that in the event of a long extension of article 50, the EU would not countenance opening negotiations on the future trade deal.
He said he would expect the UK to try and come back to the negotiating table “a few months after” a cliff-edge Brexit but that “in that case the withdrawal agreement we put on the table at the beginning of this negotiation will be still here: citizens rights, Ireland, financial obligations”.
“During any long extension there will be no renegotiation of the Brexit withdrawal agreement, no, never”, Barnier told an audience at the European Policy Centre event. “There will be no negotiation about the future relations we cannot legally speaking negotiate with a Member State about the future relations. It’s as simple as that.”
Barnier also lamented the lack of debate in the UK about its post-Brexit relationship with the EU either during the referendum or in the months after it. “There’s no obligation in leaving the EU to leave the customs union, no obligation to leave the single market. I didn’t see the debate about what are the national interests of the UK.”
Guy Verhofstadt, the European parliament’s Brexit negotiator tweeted on Monday evening: “The House of Commons again votes against all options. A hard Brexit becomes nearly inevitable. On Wednesday, the UK has a last chance to break the deadlock or face the abyss.”
Headlines Monday 1st April 2019
Nordic American Tankers Signs At-The-Market Issuance Agreement
Bermuda-based tanker shipping company Nordic American Tankers (NAT) has inked a new agreement that allows the company to sell up to USD 40 million worth of its common shares.
On March 29, 2019, NAT entered into an At-The-Market Issuance Agreement (ATM) with B. Riley FBR, an investment banking firm headquartered in Los Angeles, Califonia, as the sales agent.
Under the new agreement and over a period of about three years, the shipping company may, at its discretion during the term of the ATM, sell up to a maximum of USD 40 million of common shares.
The ATM sales, if any, will be made at market prices, according to NAT.
As explained, the establishment of the ATM arrangement is in harmony with the conservative financial policy of NAT and the company is not obliged to dispose of its shares under the agreement.
“The ATM arrangement is a tool for NAT to ascertain that we have financial flexibility at all times,” the company said in a statement.
NAT’s fleet currently comprises 23 Suezmax tankers with an aggregate cargo capacity of 23 million barrels of crude oil and an average age of 10.8 years.
Ørsted Picks G-tec for Geotechnical Work Offshore Germany
Ørsted has awarded Belgium’s G-tec with contracts to provide geotechnical engineering services on two offshore wind farms in the German Bight.
Under the two individual contracts, G-tec will in 2019 carry out geotechnical investigations and laboratory analysis of samples taken from the seabed in various depths within the Gode Wind offshore wind farm 03 and 04 and the German Cluster offshore wind farm 01.
For Gode Wind offshore wind farm 03 and 04, the contract includes a detailed geotechnical site investigation on all turbine locations including in-situ tests and sampling, and subsequent onshore laboratory testing. The contract also includes an option for in-situ stiffness measurements.
On German Cluster offshore wind farm 01, G-tec will carry out a preliminary geotechnical site investigation on selected positions of geological interest including in-situ tests and sampling, and subsequent onshore laboratory testing.
Gode Wind 3 and 4 projects have a total capacity of 241.75MW. Gode Wind 3 was selected in the first German offshore wind auction, and Gode Wind 4 in the second auction. The two wind farms are scheduled to be commissioned by 2024/2025, subject to a final investment decision.
The capacity and the potential timeline for the German Cluster offshore wind farm 01 is unknown.
Ocean LNG to offtake & market Golden Pass LNG
DOHA: Qatar Petroleum announced yesterday that Ocean LNG Limited (Ocean LNG) will be responsible for the offtake and marketing of all LNG volumes to be produced and exported from the Golden Pass LNG Export Project (Golden Pass LNG) located in Sabine Pass, Texas.
Ocean LNG is an international joint venture marketing company, owned by affiliates of Qatar Petroleum (70 percent) and ExxonMobil (30 percent). Earlier this year, Ocean LNG entered into a binding LNG Sales and Purchase Agreement with Golden Pass Products LLC to purchase and offtake all the LNG volumes to be produced by Golden Pass LNG.
Since its establishment, Ocean LNG has been active mainly in South America and Europe. Following a successful Final Investment Decision of Golden Pass LNG on 5 February 2019, Ocean LNG will now focus its efforts on marketing its US LNG volumes in the Asia Pacific region through further extensive engagements. It will alsoexpand its relations and networks with both established customers as well as emerging and prospective LNG buyers, while at the same time maintaining a strong footprint across South America and Europe.
Commenting on this occasion, H E Saad bin Sherida Al Kaabi, the Minister of State for Energy Affairs, and President & CEO of Qatar Petroleum, said: “The FID of Golden Pass LNG earlier this year underpins Ocean LNG’s marketing efforts to deliver US LNG to customers across the globe. This is a further testament of Qatar Petroleum’s position as a global LNG leader with a large portfolio capable of offering tailored LNG supply structures and commercial terms in an evolving global LNG environment.”
Ocean LNG will be prominently featured for the first time as part of the Qatar Petroleum pavilion at the upcoming global industry event, LNG 19, which will be held in Shanghai, China between 1–5 April, 2019.
Golden Pass LNG is situated in a prime location with well-established connectivity to extensive natural gas resources in the United States, and has shipping access to both the Atlantic and Pacific basin markets. Golden Pass LNG, which received all necessary regulatory approvals for the export of LNG from the U.S. Federal Energy Regulatory Commission and the US Department of Energy, was sanctioned in early February of this year by its shareholders, and construction activities at its site are expected to commence imminently.
Sign of the times: from Holyhead to Hollywood
Holyhead could soon have its own version of one of the world’s most iconic landmarks if ambitious plans by leading ferry company Stena Line get the go ahead.
Stena Line, which owns and operates Holyhead Port, wants to erect a 100 ft ‘HOLYHEAD’ sign near the lighthouse at South Stack, similar to the world-famous HOLLYWOOD sign.
Diane Poole OBE, Stena Line’s Travel Commercial Manager (Irish Sea South) said everyone is familiar with the cultural icon and landmark HOLLYWOOD sign which was erected in 1923 in the Santa Monica Mountains overlooking Hollywood.
“We thought that a similar sign on the approach to Holyhead Harbour would provide a real tourism talking point for the hundreds of thousands of ferry travellers who travel in and out of Holyhead each year,” she said.
Diane added: “Apart from the sign having a different name, another key difference with this proposal is that when wind speeds reach over 60 mph, a hydraulic mechanism will be triggered to allow the sign to safely ‘fold’ to ground level to prevent it from being damaged during severe weather conditions.
“We believe the new sign will provide a real stand out talking point for the region and help Holyhead raise its profile as a key tourism and freight gateway.”
Brexit: Chief whip attacks cabinet's post-election strategy
The government should have made clear after the 2017 election that it would "inevitably" have to accept a softer Brexit, the Tory chief whip has said.
In a BBC documentary, Julian Smith - whose role is to maintain discipline among Tory MPs - is also strongly critical of the cabinet's behaviour.
The unprecedented attack comes as the cabinet is deeply split over whether to move to a softer deal.
MPs will hold further votes later on Brexit options to resolve the deadlock.
A customs union with the EU is thought to be the most popular of the ideas under consideration.
Other options include leaving the EU without a deal on 12 April, a referendum to rule out no deal and a confirmatory referendum on Prime Minister Theresa May's deal.
In interviews for The Brexit Storm: Laura Kuenssberg's Inside Story, Mr Smith accused ministers of trying to undermine the prime minister.
He said he witnessed ministers "sitting around the cabinet table... trying to destabilise her [Mrs May]" and described their behaviour as the "worst example of ill-discipline in cabinet in British political history".
Mr Smith said that when it failed to get a majority in the 2017 election, "the government as a whole probably should have just been clearer on the consequences of that".
The parliamentary arithmetic after the poll, he added, "would mean that this would be inevitably a kind of softer type of Brexit".
But Chief Secretary to the Treasury Liz Truss told BBC Radio 4's Today programme: "It's not clear to me that going softer is the way to command support.
"If you look at the parliamentary arithmetic now, it's not clear that something like a customs union actually commands support."
She said MPs, so far, had not been in favour of a customs union and the "answer lies in modifications to the prime minister's deal".
Ms Truss added: "It is an incredibly testing time, it's a time when we have got a minority government and there are differences of opinions."
Headlines Monday 25th March 2019
OGA launches data resource to make North Sea ‘world leader’
The National Data Repository holds a wealth of information aimed at bringing in fresh exploration. Pic: The Bruce field has recently changed hands from BP to Serica Energy
A new resource has been launched to help usher in a new era of North Sea oil and gas exploration.
The Oil and Gas Authority (OGA) has launched the National Data Repository (NDR), a free online platform placing the UK sector as a “world leader” on subsurface petroleum information.
Its launch is thought to be one of the largest ever single releases of data, comprising 130 terabytes of information on wells, fields and pipelines – the equivalent of eight years’ worth of HD movies.
The information is being made freely available in the hopes of attracting new investment into the North Sea, helping recover the 20billion barrels of oil estimated to be remaining in the region.
Launched by the OGA, the repository will be managed by Common Data Access, a subsidiary of trade body Oil and Gas UK, who said it puts the region top of the world rankings on low-cost access to oil and gas information.
The OGA, the industry regulator, said the NDR is an opportunity for firms to use historical data to inform artificial intelligence technology and uncover previously overlooked oil and gas prospects.
It also ensures that the UK’s petroleum-related information is maintained and enhanced in a sustainable collection.
The NDR is funded through taxes paid by all petroleum licence holders in the North Sea.
Nic Granger, director of Corporate at the OGA, said: “The world is arguably entering a ‘fourth industrial revolution’, with data at its heart.
“The National Data Repository is a UK first and is an important milestone in our vision to enable open, transparent data.
“The platform makes data available for machine learning and artificial intelligence and offers the opportunity to uncover new prospects and previously overlooked plays.”
The NDR will also be used to aid the energy transition, with information on potential carbon capture, utilisation and storage projects (CCUS), for example.
CCUS is a means of storing carbon emissions underground, or in this case the North Sea.
Energy and clean growth minister Claire Perry said: “The National Data Repository will help position the sector at the front of the data revolution and enable industry to unlock the full potential of the UK Continental Shelf, delivering further energy security, tax revenues and the high paid jobs that are at the centre of our modern Industrial Strategy.”
The NDR’s launch has been hailed by energy “supermajors” Chevron and BP.
Ariel Flores, BP’s North Sea regional president, believes it could bring a “step change” to oil recovery in the UK sector.
He said: “Sharing data and information to build knowledge across the basin is key to maximising economic recovery from the UK.
“BP welcomes the launch of the NDR and, through active cooperation with the OGA and our industry colleagues, looks forward to fully realising the value that open data access can bring to the UKCS.”
Meanwhile, Greta Lydecker, managing director of Chevron Upstream Europe, said it could help attract the next generation of workers to the sector.
The NDR also offers opportunities for academics researching the subsurface of the North Sea.
John Underhil, chief scientist and chairman of exploration geoscience at Heriot-Watt University said: “The OGA’s efforts in releasing and providing public access to data via the new National Data Repository will be a game-changer for academics undertaking subsurface research that benefits geoscience in general and the wider academic community.”
BDO: Shipping Confidence Rises Despite Geopolitical Uncertainty
Shipping confidence has increased in the last three months despite ongoing geopolitical uncertainty, shipping adviser and accountant BDO said.
“It is encouraging to begin the year with a small uptick in confidence,” Richard Greiner, Partner, Shipping & Transport at BDO, commented.
“Despite continuing doubts and fears about trade wars, China’s GDP, uncertainty over exchange rates, President Trump’s decision-making, Brexit and general political instability in many parts of the world, shipping can still find reasons to be cheerful,” he added.
The average confidence level rose to 6.2 out of a maximum score of 10 this quarter compared to 6 in Q4 2018.
Confidence was up in Europe, from 6.1 to 6.3, and in North America, from 5.2 to 5.6. In Asia, meanwhile, there was a drop in overall confidence levels to 5.8 from the 12-month high of 6.3 recorded in the previous quarter.
According to BDO, brokers were behind much of the increase in confidence. Their score was up from 5.2 to 5.9. On the other hand, the rating for owners and managers was down slightly from 6.4 to 6.3 and from 6.0 to 5.8 respectively. Charterers’ confidence was also down, from 6.8 to 6, although this still compared favourably with the rating of 5 returned 12 months ago.
The survey was launched in May 2008 with an overall rating for all respondents of 6.8 out of 10.
The BDO quarterly survey found that the likelihood of respondents making a major investment or significant development over the next 12 months was down from 5.5 to 5.3 out of 10.
What is more, charterers’ confidence in this regard reached a record high of 7.3. Brokers’ confidence was also up, from 4.1 to 4.9. However, owners recorded a fall from 6.3 to 5.4 while managers’ ratings were unchanged at 5.6.
Expectations were up in Europe from 5.2 to 5.3, but down in Asia from 6.2 to 5.2.
The number of respondents who expected finance costs to increase over the coming year was down from 67% to 48%, the lowest figure since August 2016. The figures for all categories of respondent were down, in the case of charterers from 80% to 33%.
Demand trends were cited by 26% of respondents as the factor most likely to influence performance over the next 12 months. Competition and finance costs featured in second and third place respectively in this context.
Net freight rate sentiment was positive in all three main tonnage categories identified in the BDO survey, with 51% of respondents expecting higher rates over the next 12 months in the tanker market. Respondents expecting lower tanker rates fell from 9% to 6% this quarter.
In the dry bulk sector, expectations of rate increases were up strongly from 38% to 52%, while the numbers anticipating lower rates climbed slightly to 13% from 11%.
The numbers expecting higher container ship rates rose by one percentage point to 26%, whilst those expecting lower container ship rates increased to 25% from 23%.
“Net freight rate sentiment remains positive in all three main tonnage categories, and there is a growing recognition that shipping is emerging from an extremely difficult period as a leaner and greener industry,” Greiner continued.
“A number of respondents noted that the financial difficulties faced by many companies in recent years have changed the dynamics of the industry, with an increase in consolidation, restructuring and mergers & acquisitions.”
“At the same time, there appears to be general recognition that the likes of the IMO 2020 and Ballast Water Management regulations will help rid the industry of poorly maintained tonnage and increase both the viability and the pedigree of the world fleet.”
“This will also appeal to potential investors looking to back environmentally compliant and technologically savvy industries. It seems that the shipping industry must prioritise achieving the benefits of regulatory compliance and technological innovation over the coming years,” he concluded.
'Time's up, Theresa'? PM urged to set her own exit date to get Brexit deal
British Prime Minister Theresa May was under pressure on Monday to give a date for leaving office as the price to bring Brexit-supporting rebel lawmakers in her party behind her twice-defeated European Union divorce treaty.
At one of the most important junctures for the country in at least a generation, British politics was at fever pitch and, nearly three years since the 2016 EU membership referendum, it was still unclear how, when or if Brexit will ever take place.
With May humiliated and weakened, ministers lined up to insist she was still in charge and to deny a reported plot to demand she name a date to leave office at a cabinet meeting at 1000 GMT on Monday.
“Time’s up, Theresa,” Rupert Murdoch’s Sun newspaper said in a front page editorial. It said her one chance of getting the deal approved by parliament was to name a date for her departure.
“I hope that the cabinet will tell the prime minister the game is up,” Andrew Bridgen, a Conservative lawmaker who supports Brexit, told Sky News.
“The prime minister does not have the confidence of the parliamentary party. She clearly doesn’t have the confidence of the cabinet and she certainly doesn’t have the confidence of our members out there in the country,” he said.
Ministers will discuss at 0900 GMT how to address parliament’s attempts to take control of Brexit before a meeting of May’s cabinet team, a government source said.
The United Kingdom, which voted 52-48 percent to leave the EU in the referendum, remains deeply divided over Brexit.
Just 24 hours after hundreds of thousands of people marched through London on Saturday to demand another referendum, May called rebel lawmakers to her Chequers residence on Sunday in an attempt to find a way to break the deadlock.
“The meeting discussed a range of issues, including whether there is sufficient support in the Commons to bring back a meaningful vote (for her deal) this week,” a spokesman for May’s Downing Street office said.
Boris Johnson, Jacob Rees-Mogg and Steve Baker attended along with ministers David Lidington and Michael Gove who had been reportedly lined up as caretaker prime ministers. They were forced on Sunday to deny they wanted May’s job.
May was told by Brexiteers at the meeting she must set out a timetable to leave office if she wants to get her deal ratified, Buzzfeed reporter Alex Wickham said on Twitter.
May told the lawmakers she would quit if they voted for her twice-defeated European Union divorce deal, ITV news said.
The Sun’s political editor, Tom Newton Dunn, said some ministers were urging May to pivot to a no-deal Brexit as the only way to survive in power.
The deal May negotiated with the EU was defeated in parliament by 149 votes on March 12 and by 230 votes on Jan. 15.
To get it passed, she must win over at least 75 MPs - dozens of rebels in her Conservative Party, some opposition Labour Party MPs and the Northern Irish Democratic Unionist Party (DUP), which props up her minority government.
The Sunday Times reported 11 unidentified ministers agreed May should stand down, warning she has become a toxic and erratic figure whose judgment has “gone haywire”.
Brexit had been due to happen on March 29 before May secured a delay in talks with the EU. Now a departure date of May 22 will apply if parliament passes May’s deal. If she fails, Britain will have until April 12 to offer a new plan or decide to leave without a treaty to smooth the transition and avoid an economic shock.
Lawmakers are due on Monday to debate the government’s next steps on Brexit, including the delayed exit date. They have proposed changes, or amendments, including one which seeks to wrest control of the process from the government in order to hold votes on alternative ways forward.
Amendments are not legally binding, but do exert political pressure on May to change course.
Headlines Friday 22nd March 2019
GE, Nedstack Partner Up on Hydrogen Fuel Cells for Zero Emission Cruise Ships
General Electric’s (GE) Power Conversion business and Nedstack, a fuel cell manufacturer, have entered into a partnership to develop hydrogen fuel cell systems for powering zero-emission cruise vessels.
The ultimate goal of GE and Nedstack is creating a truly zero-emission system that will enable the world’s first sustainable, clean cruise ships.
As explained, the cruise industry shares a joint responsibility to eliminate the possible negative impacts it might have on port communities, the health of passengers and staff, and on the environment as a whole.
Responsible zero-emission shipping is not only environmentally needed but will greatly contribute to the quality of the cruise experience itself, the two companies believe.
Shipowners are already under pressure to comply with the reduced sulfur limit regulations coming into force next year. Both global International Maritime Organization (IMO) and regional regulations require marine vessels to reduce emissions or eliminate them altogether.
“Existing clean power solutions are focused on reducing emissions. Eliminating emissions altogether demands a paradigm shift,” Arnoud van de Bree, CEO of Nedstack, said.
“Hence why GE and Nedstack have been working extensively on the ‘marinization’ of fuel cell technology to create a total zero-emission alternative that truly meets the needs of tomorrow’s cruise industry,” he added.
“We’re proud to be working with Nedstack on what we believe will be a game changer for the cruise industry,” Ed Torres, CEO of Marine and O&G, GE’s Power Conversion business, pointed out.
“This partnership brings together a rich pool of expertise that’s spearheading much needed innovation. Given the marine transport and shipping sector’s changing regulatory landscape, this innovation could not be more timely,” he further said.
The duo envisages using this technology on passenger ships, replacing traditional diesel engines with fuel cells, and heavy fuel oil (HFO) with hydrogen. So far, Nedstack and GE have designed the concept for a two-megawatt hydrogen fuel cell power plant on an expedition vessel. The review result has been positive, according to the companies.
“Ships are increasingly being required to shut down their engines in port. We’ve seen this in California, for example, and China has introduced an emission control area in the Yangtse delta. However, the trend is shifting from emissions reduction to total elimination,” Azeez Mohammed, President and CEO, GE’s Power Conversion business, noted.
GROW Signs Innovation Deal with Dutch Ministry
GROW, a consortium of Dutch offshore wind industry and research partners, and the Dutch Ministry of Economic Affairs and Climate Policy have signed a collaboration agreement to strengthen innovation in offshore wind.
According to the ministry’s Director General Climate & Energy Sandor Gaastra, successful innovations can be realized relatively fast due to the intensive cooperation and knowledge sharing within GROW.
“The Dutch offshore wind sector represented in GROW is leading the way,” said Gaastra. “That is why my ministry signed a collaboration agreement with GROW. With this agreement we will further strengthen the position of offshore wind energy and of the Dutch wind sector.”
GROW is a consortium of 20 Dutch companies and knowledge institutes that have agreed on knowledge exchange and cooperation to reduce the costs of offshore wind and to increase the value in the energy system and in the ecosystem.
The consortium carries out a Research, Development & Demonstration (RD&D) program, ranging from more fundamental research to the demonstration or rollout of offshore wind energy innovations.
“To achieve the energy and climate goals, the government, industry, knowledge institutions and civil society organizations must work together even more. That starts with innovation. This agreement helps us to keep up the pace of innovation,” said GROW Chairman Peter Terium.
Oil lingers slightly under 2019 highs on OPEC's supply cuts, U.S. sanctions
SINGAPORE (Reuters) - Oil hovered slightly below 2019 peaks on Friday, propped up by ongoing supply cuts led by producer club OPEC and by U.S. sanctions on Iran and Venezuela.
Concerns that an economic slowdown might soon impact fuel consumption are preventing crude prices from rising further, analysts said.
Brent crude oil futures were at $67.92 per barrel at 0643 GMT, 6 cents above their last close. Brent hit a four-month high of $68.69 per barrel on Thursday.
U.S. West Texas Intermediate (WTI) futures were at $60.04 per barrel, up 5 cents from their last settlement. WTI marked a 2019 peak in the previous session at $60.39.
“Global economic growth still remains a concern,” said Sukrit Vijayakar, director of energy consultancy Trifecta.
Economic growth has slowed across Asia, Europe and North America, potentially denting fuel consumption.
Still, oil prices this year have been propped up by supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and non-affiliated allies such as Russia.
Investment bank RBC Capital Markets said oil was “still below the fiscal breakeven level in a number of OPEC countries”, meaning that many producers have an interest in further propping up the market.
“We believe that OPEC is likely to extend the deal for the duration of 2019 when they next assemble in Vienna in June,” RBC said.
RBC said Russia was only a reluctant partner in the supply cuts,but would “ultimately opt to preserve the arrangement and retain a leadership role of a 21-nation group that accounts for around 45 percent of global oil output”.
Brexit: Theresa May to urge MPs to back deal as delay agreed
Theresa May will return to the UK later to try to convince MPs to support her withdrawal deal after the EU agreed to postpone Brexit beyond 29 March. On Thursday night, after eight hours of talks, EU leaders offered to delay Brexit until 22 May if MPs approve Mrs May's deal next week.
If they do not approve it, the delay will be shorter - until 12 April - at which point the UK must set out its next steps or leave without a deal.
Mrs May said MPs had a "clear choice".
Speaking on Thursday, after waiting for the 27 other EU countries to make their decision at a summit in Brussels, the prime minister said she would now be "working hard to build support for getting the deal through".
MPs are expected to vote for a third time on the Brexit withdrawal deal next week, despite speaker John Bercow saying what is put forward must be substantially different to be voted on.
Thursday night's agreement reduces the likelihood of a no-deal Brexit on 29 March - but the UK could still leave without a deal if Mrs May's deal is not approved by MPs by 12 April.
Giving a news conference, Mrs May also referred to her speech from Downing Street the previous evening, which had sparked an angry reaction from MPs after she blamed them for the Brexit deadlock.
"Last night I expressed my frustration and I know that MPs are frustrated too," she said. "They have difficult jobs to do.
"I hope that we can all agree we are now at the moment of decision. And I will make every effort to ensure that we are able to leave with a deal and move our country forward."
BBC political editor Laura Kuenssberg said Mrs May, although she did not apologise, had shown a "very different tone to MPs".
But she added that the PM was not drawn on what she would do if her deal fails again in a vote next week.
A debate on the deal has been scheduled for Monday but Downing Street said no date has yet been fixed for a vote.
Headlines Thursday 21st March 2019
Damen Shipyards Enters Cruise Market with SeaDream Order
Damen Shipyards Group has signed its first contract for the construction of a cruise ship for Norway-based SeaDream Yacht Club. The contract is for the 155-metre mega yacht, that will be deployed on voyages all over the world. The purpose-built ship will be prepared to operate in various destinations, including polar and tropical. As such, it will boast ice class Polar Code 6 credentials.
“We are delighted to sign this historic contract with which the Damen Shipyards Group enters the cruise market,” Andrea Trevisan, SVP Sales and Marketing Damen Cruise, said.
SeaDream’s vessel will be completely constructed and outfitted, including the interior, at the Mangalia yard by Damen. The construction is scheduled to start in October this year, with a scheduled delivery date of September 2021.
TUS-ORE Catapult Research Center Opens Its Doors
UK’s Offshore Renewable Energy (ORE) Catapult and China’s Tus-Wind have officially opened the TUS-ORE Catapult Research Centre (TORC) for offshore wind in China.The GBP 2 million center opened today, 21 March, in Yantai City following a trade mission of 11 UK companies eager to explore offshore wind opportunities.
TORC will act as a renewable energy technology research and development center with links into both the UK and China to support the growth of their respective offshore wind industries. The center will develop collaborative research programs, support market entry and incubation for UK businesses in China, provide commercial support for Chinese developers and support the demonstration of new technologies on a 300MW offshore wind farm in the Shandong Province.
“Our new Research Centre, in partnership with TUS, will support UK businesses as they take advantage of a new wave of opportunities to engage with one of the fastest-growing offshore wind markets in the world – and present a fantastic opportunity to develop a supply chain that can compete on a global scale,” said ORE Catapult’s Chief Executive, Andrew Jamieson.
“With more than a decade of experience and expertise in this sector, and global exports expected to be worth £2.6bn a year by 2030 for UK companies, now is the time for innovative companies to act and establish themselves at the heart of the Chinese market.”
The Innovate UK Global Business Innovation Programme offshore wind mission was set up to provide UK companies with an opportunity to both engage with potential Chinese technology partners in the sector and gain insight in how their technology development programs can be adapted for offshore wind.
“Following the development of TORC, I believe the government will provide more favourable policies to UK companies seeking to enter China to create real benefit to both sides, furthering the technological cooperation between China and UK and creating significant opportunities and reliable incubation service for UK companies,” said Tus Clean Energy’s Senior Vice president, Charlie Du.
Alphaliner: Carriers to Increase Asia-Europe Transit Times
Carriers on the Asia – North Europe route will implement major changes to their networks from the end of March, resulting in longer average transit times as vessel sailing speeds are further reduced. According to Alphaliner, the average duration of services on the corridor will reach a record high of 11.3 weeks as a result of these changes. Asia – North Europe round trip durations have increased steadily from an average of eight weeks in 2007 to the current average of over eleven weeks, mainly due to slower sailing speeds to mitigate rising bunker prices.
The use of larger ships on this route has also resulted in longer port stays, as the average size of vessels deployed in this trade has more than doubled from 7,000 TEU in 2007 to above 15,000 TEU currently, Alphaliner noted.
The 2M carriers, Maersk and MSC, will extend the duration of two of their six Asia – North Europe services to 13 weeks, making the AE-5/Albatross and AE10/Silk services the longest strings on this route. The extended 91-day rotations for both services includes planned diversions for bunkering calls at the Russian Baltic port of Kaliningrad, which add more than four days to the loops’ total rotations.
Apart from the extension of the two 2M services, THE Alliance has also stretched the rotation of its FE5 from nine to ten weeks, while HMM extended its standalone AEX service from ten to eleven weeks.
In contrast, the OCEAN Alliance will shorten the rotation of its ‘NEU3’ from eleven to ten weeks, while calls at Shanghai and Ningbo will be removed, leaving overall transit times largely unchanged.
May in Brussels to urge short Brexit Delay
Theresa May will make a direct plea to EU leaders later asking to postpone Brexit for three months, hours after telling the British public a delay was "a matter of great personal regret". At an EU summit in Brussels, she will try to persuade the other 27 countries to delay the UK's exit beyond 29 March.
On Wednesday, the PM made a speech blaming the delay on MPs and telling the nation she was "on their side".
Meanwhile, Jeremy Corbyn is also due in Brussels for separate Brexit talks. The Labour leader will meet the EU's chief Brexit negotiator, Michel Barnier, and the leaders of seven European countries to discuss alternatives to Mrs May's Brexit plan. He said Mrs May was "in complete denial about the scale of the crisis" facing the country and was "unable to offer the leadership the country needs". Her speech also sparked an angry response from MPs across the House of Commons, with some calling her comments "toxic" and "reckless". The UK is set to leave the EU next Friday unless the law is changed. The current default position for leaving is without a withdrawal agreement. Mrs May agreed a deal with the EU, but MPs have rejected it twice. She has asked the EU for a short extension of the two-year Brexit process until 30 June, but any extension needs to be agreed to by all EU members. European Council President Donald Tusk said he believed the EU would agree to a short extension, but this would only be if Mrs May's deal is signed off by MPs next week. Another EU summit next week could be called in an emergency if needed, he said.
Mr Tusk said the "question remains open" as to how long a delay the other EU leaders would support.
But, in her speech from Number 10, Mrs May insisted she would not be willing to postpone Brexit any further than 30 June, despite appeals from some MPs.
She added: "Of this I am absolutely sure. You, the public, have had enough.
"You are tired of the infighting, tired of the political games and the arcane procedural rows, tired of MPs talking about nothing else but Brexit when you have real concerns about our children's schools, our National Health Service, knife crime.
"You want this stage of the Brexit process to be over and done with. I agree. I am on your side."
She said it was now up to MPs to decide whether they wanted to leave with her deal, no deal or not to leave at all. But she warned that the latter option could cause "irreparable damage to public trust" in politicians.
Headlines Wednesday 20th March 2019