Rosneft Inks Supply Pact with PDVSA
Russian top crude producer Rosneft and Venezuelan state oil company PDVSA have signed a new contract for supplies of oil and oil products of Venezuelan production, the Russian company said on Monday. The document envisages the supplies of over 1.6 million tonnes of oil and 9 million tonnes of oil products to Rosneft within five years, it added in a statement. Under their first long-term contract, signed in May, the Venezuelan party has already supplied 375,000 tonnes of oil products, Rosneft said. Reporting by Polina Devitt
Achinsk Refinery Resumes Operation on Tight Schedule
Achinsk Oil refinery, suspended after the incident of June 15, 2014 has recovered the processes of primary crude oil processing on a tight schedule, according to the plan of repair activities. From the 1st of September the enterprise has commenced production of the main types of oil products: straight-run gasoline, diesel fuel, marine fuel and aviation fuel, as well as WLHF (wide light hydrocarbon fraction). Concurrently with the primary crude processing plant a VT-Bitumen unit, producing petroleum bitumen, resumed to operating.
Fuel Tanker Sinks off Piraeus
Product tanker Agia Zoni II reported water ingress, sinking, in the early hours of Sunday in Saronikos Gulf, south of Athens at anchorage west of Piraeus, with some 2500 tons of fuel on board, and two crew. The local media reports that Aghia Zoni II took on water while it was anchored and sank at 2.45 a.m., after sailing from the Aspropyrgos distilleries in the early hours of Saturday carrying 2,200 metric tons of fuel oil and 370 metric tons of marine gas oil. It is not yet known what caused the sinking.
Less Kazakh Crude, Pipeline Impacts Black Sea Liftings
Crude oil and refined oil product shipments from Georgia's Black Sea port of Batumi fell 22.7 percent in 2014 from a year earlier, a senior official at the terminal said on Monday. Bad weather in Kazakhstan, where the oil is produced, lower-than-expected output from the Kashagan oilfield at the beginning of the year and re-routing part of oil shipments to the Baku-Tbilisi Ceyhan pipeline contributed to the decline, said the official, who declined to be identified. The Batumi terminal, operated by Kazakh state energy company KazMunaiGas , shipped 4.355 million tonnes of oil and oil products last year, down from 5.634 million tonnes in 2013. Shipments in December were 441,675 tonnes, down from 457,033 tonnes in December 2013, but up from 423,940 tonnes in November.
BIMCO - Oil Product Tankers Earnings Decline as stockbuilding Slows Down
BIMCO’s expectations remain as the oil product tanker fleet continues to grow with earnings at the lowest since Q3 in 2014. But there is still money to be made in the second half of 2016. The oil product tanker market has reached a net fleet growth of 4.3m DWT so far in 2016. That is well in line with BIMCO’s full estimate of 8.5m DWT for the full year 2016. The main drivers of the total growth continue to be the MRs and LR2s. With a net fleet growth of 5.8 % in 2015, the oil…
Transneft Worried Ukraine Will Take its Hungary Pipeline
Russia's oil pipeline monopoly Transneft said it was worried Ukraine may take control of its oil product pipeline to Hungary. A row over ownership of the pipeline has flared amid the deepest East-West rift since the end of the Cold War, over Russia's annexation of Ukraine's Crimea peninsula last month. Transneft said in a statement on its website Ukraine's courts have been considering a claim by the general prosecutor's office to transfer control over the pipeline, which shipped some 1.7 million tonnes (over 30,000 barrels per day) of oil products last year, to the state.
Clean Tankers Headed Both Ways Across Atlantic
Oil products tankers have reportedly been getting business in recent days transporting oil products from Europe to America and the reverse direction. Usually the arbitrage works only one way, not both. Shippers say the UK/continent market has been busy with charterers moving oil products across the North Sea and also across the Atlantic. The Mediterranean has also experienced an upswing in chartering, although rates have responded more sluggishly than in the North Sea. The Caribbean up U.S. coast market has been slower of late, although interest to ship products from the U.S. to Europe has kept rates steady against a week ago.
Krasnoye Sormovo to Build Tankers for Palmali
The ship of 'river-sea' class with 12 cargo and one precipitation tanks of the total capacity of 14,770 cu. m is intended for the haulage of crude and oil products with vapor explosion temperature lower than 60°С. The ship has double boarding preventing oil spills at accidents. It provides for simultaneous loading of several grades of oil products on the same voyage. The tanker design was developed by Engineering Center of MNP Group. Source: FIS
Oil Products Flow to Primorsk Resumed
Russia resumed oil products shipments to Primorsk after a halt following "criminal tapping" of pipeline, a subsidiary of Russian oil pipeline monopoly Transneft said. "It has not affected and will not affect exports schedule," it added. Russia stopped oil products shipments to the Baltic Sea port of Primorsk on Tuesday due to "criminal tapping" of the pipeline. (Reporting by Gleb Gorodyankin; writing by Katya Golubkova; Editing by Lidia Kelly)
Russian JV Close Acquisition of Prime Shipping
The Russian Joint Venture between Rosneft, Sberbank Investments and Pietro Barbaro S.p.A. closed the acquisition of the Pietro Barbaro Group shipping assets in the Russian Federation (100% share of Prime Shipping group of companies). Prime Shipping is one of the leaders of the Russian river and sea transportation tanker market. The deal was financed by Sberbank. The acquisition of a logistics asset will allow Rosneft to strengthen its positions in the river transportation market and enhance the efficiency of operations…
Kirby Buys Towboats, Barges from Coastal
Kirby Corp. signed an asset purchase agreement with Coastal Towing, Inc. to purchase from Coastal seven black oil tank barges and 13 inland towboats. The transaction, estimated at $17.1 million in cash, is being financed through Kirby's operating cash flow and available credit under Kirby's bank revolving credit agreement. Kirby and Coastal have also entered into a Barge Management Agreement whereby Kirby will serve as manager of the combined black oil tank barge fleet, which will include Coastal's 51 remaining barges and Kirby's 65 barges, for a period of seven years. In a related transaction, on September 25, 2002, Kirby purchased from Coastal three black oil tank barges for $1.8 million in cash.
Torm to Install Veson Nautical’s IMOS6
Veson Nautical, provider of Maritime Enterprise Resource Planning (Maritime-ERP) solutions and services, announced that Copenhagen based Torm A/S, ranked by Tanker Operator as one of the world’s top 30 leading carriers of refined oil products, will install version 6 of Veson’s Integrated Maritime Operations System (IMOS). Veson Nautical’s software will manage chartering, operations and accounting related functions for TORM’s fleet. TORM’s product tanker fleet numbers approximately 140 vessels, which vary in size from 37,000-110,000 dwt. The company is a carrier of refined oil products such as gasoline, jet fuel, naphtha and diesel oil. Torm’s Copenhagen office manages tanker operations, covering all time zones 24 hours a day, seven days a week.
Russia to Halt Oil Products Export via Foreign Baltic Ports
Russia plans to fully halt exports of oil products from other than Russian ports on the Baltic Sea by 2018, the head of oil pipeline monopoly Nikolai Tokarev told President Vladimir Putin on Monday. Russia will increase the shipments via its own ports instead, Tokarev said, according to a transcript of the meeting published on the Kremlin website. Russia has been gradually cutting oil and oil products exports via foreign ports on the Baltic Sea, such as Latvia's Ventspils as it has built its own shipments facilities in the ports of Primorsk and Ust-Luga. (Reporting by Vladimir Soldatkin; Editing by Lidia Kelly)
Omega to Buy Tankers from STX
Omega Navigation Enterprises, a Greek shipowner whose shares trade in New York and Singapore, plans to buy two tankers that carry refined oil products from South Korea's STX Shipbuilding Co for US$64.5 million each. The Omega Emmanuel and the Omega Theodore, which have a capacity of 73,000 deadweight tons each, are so-called ice-class ships that are capable of navigating icy waters, the company said. The ships are due for delivery on March 23 and April 26. Omega also has options to buy two ships for delivery in the third quarter. An expected increase in shipments of refined oil products from the Middle East to Europe, Asia and the US may support demand for product tankers, EA Gibson Shipbrokers said in a recent report.
Syzran Refinery Output Up
Following the results of nine months of 2014, Syzran Refinery, a part of the Samara group of refineries of Rosneft, increased output of major oil products compared to the same period in 2013. For instance, almost 1.5 million tons of diesel fuel were produced which is 12% higher compared to the first nine months of 2013, and exceeds the plan by 18%. Production of motor spirit increased by 85 thousand tons compared to the previous year, and amounted to 900 thousand tons. The plant exceeded the business plan by 14%.
Port of Rotterdam Reports Productive Year
According to the provisional figures the port of Rotterdam in 2002 handled 321,9 million tons of goods. This result nearly equals the record of 2000 (322,4 mln tons). CEO Willem Scholten called the result "a pleasant surprise". "In the present economic circumstances a stable level of throughput would have seemed more logical, but our second half year was extremely good. In containers and oil products even the best ever". Up were ores and scrap (+7%), oil products (+27%), roll on/roll off (+8%), containers (+7%, from 6,1 to 6,5 mln TEU). Down crude oil (-2%), other liquid bulk goods (-3%), coal (-3%), agricultural bulk goods (-19%), other dry bulk goods (-9%), other general cargo (-11%). The full press release in English will be issued coming Monday.
Traders Look to Asia Products for U.S. Options
Traders adding U.S. port options to cargoes for flexibility. Traders are scrambling to find oil products in Asia to ship to the United States and Latin America after Hurricane Harvey shut almost a quarter of U.S. refining capacity, several trading and shipping sources told Reuters on Wednesday. Many are also asking for ships to have a U.S. option added to their original destination to allow for flexibility in sending the cargoes across the Pacific, shipbrokers said. At least one oil products tanker…
Tanker Shipping: Signs of Weakness are Appearing, But Still Money to be Made
Supported by slow fleet growth and ongoing positive refinery margins, VLCC earnings in Q1-2016 were up from a year ago, but down from Q4-2015 as we expected at $58,367 per day for VLCC (+5.7% year on year). For the minor crude oil carriers, rates were down from Q1-2015 and Q4-2015. Rates in Q1-2016 were $37,914 per day for suezmax (-25% year on year), $30,197 per day for aframax (-24% year on year). For the oil product tankers, Q3-2015 stands out as the peak quarter of the current cycle. Earnings in Q1-2016 were the lowest since Q3-2014 when the markets started to rise.
Refineries Revolution Spurs Product Supertankers
The rapid growth of mega refineries is prompting a new class of oil products supertankers, mirroring an earlier revolution in crude oil shipping, as traders look for scale that was previously not economically viable. In the early 1970s, ships capable of carrying 2 million barrels of crude oil were built to mitigate disruptions from the closure of the Suez Canal and to meet growing global demand. Now, the products trade is spurring similar innovation. As the Middle East and U.S. Gulf Coast transform into refining hubs, traders require ever-larger tankers to move oil products such as gasoline, diesel and aviation fuel to Europe, Asia and Latin America.
Tanker for Sovcomflot Delivered
STX Shipbuilding delivered the new product tanker, SKF Neva, to Sovcomflot JSÑ. The first product tanker of the series, the keel was laid on May 30, 2006. The 600 x 106 ft.-tanker is 46.520 tons dwt. The tanker, to be deployed from Primorje, including Vladivostok, to the ports of the South-East Asia, will transport crude oil, oil products, vegetable oils and coal oils. Source: SeaNews
Two Shippers Apply for US Jones Act Waiver
Two shippers to use waiver to ship fuel to U.S. Northeast in the acute fuel shortage following the passage of Hurricane Sandy. Two companies have told the United States they intend to take advantage of a waiver allowing foreign-flagged ships to take oil products and additives from the U.S. Gulf to the Northeast to help relieve a fuel crunch after Hurricane Sandy, a government source informed Reuters. The Department of Homeland Security issued a rare blanket waiver of the 1920 Jones Act on recently. At the time, only one company had indicated it wanted to ship fuel to the Northeast on a foreign ship. The waiver allows foreign-flagged ships to load oil products from the Gulf of Mexico until Nov. 13 and deliver it to ports in the Northeast by Nov. 20. Source: Reuters
Sovcomflot Buys Nine PRISCO Tankers
Russia’s PAO Sovcomflot (SCF Group) subsidiary SCF Tankers Ltd. has won an auction for nine arctic-going tankers that belonged Primorsk International Shipping Ltd. (PRISCO), who filed for chapter 11 protection in January 2016. The purchase deal is worth $215 million, and the auction results have been approved by the U.S. Bankruptcy Court for the Southern District of New York, which is handling PRISCO’s bankruptcy case. SCF Tankers outbid Denmark’s Hafnia Tankers Ltd., who submitted a $208 million offer, the Wall Street Journal reported. The nine ships comprise one Aframax crude oil tanker: Zaliv Amerika (104,535-dwt); three LR2 oil product tankers: Zaliv Amurskiy (104…
Concordia Maritime Charters Out P-MAX Tanker
Concordia Maritime announced it has chartered out a P-MAX tanker to a Chinese shipping company for two years, effective in late January or early February 2016. Kim Ullman, CEO of Concordia Maritime, said, “We are now taking advantage of the strong market and chartering out one of our P-MAX tankers over a longer period. The vessel will be mainly used to transport heavy oil products between Korea, Japan and China. Several of the ports in the region are relatively shallow, and the P-MAX tanker, With her shallow draft and high load capacity, is well suited for this. “The goal for the P-MAX fleet is precisely to concentrate employment on trades and chartering systems where the unique properties of the tankers come into their own…