A Portishead company which builds cargo ships has landed a 3million contract for two massive offshore barges.

Osprey Group's new vessels - Osprey Bouwer and Osprey Fabrique - will carry over-sized, heavy cargo for the Royal Navy, and nuclear, offshore wind, oil and gas, and civil construction industries.

The 50-metre-long barges will also transport cargo to nuclear power plant Hinkley Point C in Somerset.

Each vessel will have a width at its widest point of 18.8 metres and a depth of three metres, according to Osprey.

The 'unrestricted sailing area' classified barges will also have a deck capable of carrying tonnes of weight and will be equipped with two 23-metre spud poles.

The North Somerset-headquartered company said it expected to have the new barges ready by the first quarter of 2021, with plans to then deploy them to be used to support specialist logistics operations in France, Morocco and the Eastern Mediterranean.

Neil Schofield, Ospreys chief operations officer said: The addition of Osprey Bouwer and Osprey Fabrique to our fleet is very welcome.

At a time when were all focusing on safety in the present, these additions represent an investment in the future demonstrating our long-term commitment for supporting and being a trusted partner to our clients.

The deal was brokered through Rotterdam-based trading, advice and brokerage company TABmarine.

Read the rest here:

Huge offshore barges that will carry cargo for Royal Navy and to Hinkley Point C to be built in North Somerset - Bristol Post

Spanish utility group Iberdrola wants to be the biggest player in the U.S. offshore wind market, but it will need togo through early market frontrunnerrsted to get there.

Iberdrola, among the world's largest wind power generators, plans to streamroll its way through the coronavirus crisis, with CEO Ignacio Galn announcing plans this month toincreaseinvestmentin renewablesprojects and continue adding jobs as soon as the public health crisis is over. Up to a quarter of the10 billion ($11 billion) the company plans to invest this year will go toward offshore wind.

Iberdrola has long been a major player in U.S. renewablesand remains one of the country's largest owners of onshore wind farms through its controlling stake inAvangrid, a utility and renewables developer. The U.S. and Avangrid is now a central plank of Iberdrola's global offshore wind push, accounting for more than 60 percent of its 12-gigawatt global offshore pipeline.

Avangrid is joint owner of Vineyard Wind, whose 800-megawatt project for Massachusetts is likelyto become one of the first major U.S. offshore wind farms despite its ongoing permitting delay. Vineyard is now expected to be finished in 2023; Iberdrola confirmsthere hasbeen no change in the project timeline despite the coronavirus shutdown.

We're in a very good position to be the leading player [in the U.S.],"Jonathan Cole, managing directorof Iberdrolas offshore wind business told GTM. "We're going to be the first to build a large-scale offshore wind project in Vineyard I. That puts us in a strong position and allows us to just keep growing and growing beyond that.

Denmark'srsted, which is the world's leading offshore wind developer, holds a formidable position in the U.S., with interests in projects across five states totaling more than 8 gigawatts. By the middle of this decade,rsted could own more than 3 gigawatts of U.S. offshore wind, compared to 800 megawatts for Iberdrola if Vineyard successfully builds its first two projects in New England.

ButCole said Iberdrola's market position is unique, given its ownership of a U.S. utility and its vast experience building onshore projects. Avangrid has more than 3 million utility customers in New York and New England. As the decade progresses, Avangrid will look to bring as much as 2.5 gigawatts of capacity online in its Kitty Hawk lease area off North Carolina,whileopening up Vineyard Wind's second large zone in southern New England for construction.

The company is hiring dozens of new U.S. offshore wind employees as it scales up.Initially we've taken some very talented people from the onshore renewables business to help us ... as well as assigning some very experienced offshore wind people from Europe, said Cole.

From that critical mass our plan is to grow a substantial organization that has the capability to do the full lifecycle of an offshore wind project, from initial site finding through development, engineering, procurement, construction, and eventually operations and maintenance."

By the late 2020s, anotherdifferentiator may come into play: Iberdrola's concerted push into floating offshore wind.

rsted has saidlittle publicly about floating wind; the technology, which is still in its early stages of commercial development,barely features on rsted'swebsite or in its annual reports. In an earnings call last August,CEO Henrik Poulsen said rsted was monitoring the market so that "if there is an opportunity where we should act, we would be ready to do so. But for the time being, we are not actively pursuing any floating projects."

Iberdrola on the other hand recently revealed details of two demonstration projects in Norway and Spain,and the company looks set to move swiftly once its pilots have done their job. Creating an offshore wind market in its native Spain, where floating turbines will be necessary, gives Ibedrolaa strong motivation to pursue the technology. A growing number of other major European energy companies are actively pursuing floating wind, including EDPR, Shell, Total, Engie and Equinor.

In the context of a net-zero world, where we are trying to totally decarbonize the power sector, you need as many of these massive-scale, low-carbon generating facilities as possible and that means that probably you need to look further offshore and into deeper water, said Cole.

In the U.S. there is scope for floating wind off both coasts.

What you're looking for is an area where you've got deep water, good wind resources and high demand, which can drive up a lot of volumes and economies of scale," Cole said."That's how floating is going get the costs down and get cost-competitive with fixed [foundations] by the end of this decade. If you apply that concept to the market, you can see that there are near-term opportunities on the west coast of the United States and in Asia.

Maine Governor Janet Millshas breathed new life into the 12-megawatt Aqua Ventus floating project off the state's coast, after years of delays and uncertainty. Despite Avangrid's presence in the Northeast,Iberdrola told GTM it would not be investing in Aqua Ventus at this stage, focusing instead on its two floating demos in Europe.

Meanwhile, a study last year by Energy + Environmental Economics (E3) found a case for 7-9 gigawatts of floating wind in California by 2040, potentially saving ratepayers $2 billion in the process.

Read more from the original source:

Iberdrola Plans to Take Top Spot in US Offshore Wind (and Keep It) - Greentech Media News

Nearly 10 years after the BP Deepwater Horizon oil catastrophe began in the Gulf of Mexico, a leading ocean conservation group warned Tuesday that the threat of another similar disaster looms large and that the fossil fuel industry and U.S. government have learned practically nothing from the world's worst ever such disaster.

Oceana's new publicationtitled "Hindsight 2020: Lessons We Cannot Ignore from the BP Disaster"provides a broad look at what led up to the "preventable tragedy," the ongoing ecological and economic consequences of the disaster, and how the spill failed to act as a wake-up call on the inherent dangers of offshore drilling.

"Offshore drilling is still as dirty and dangerous as it was 10 years ago," said Diane Hoskins, Oceana campaign director. "If anything, another disaster is more likely today as the oil industry drills deeper and farther offshore. Instead of learning lessons from the BP disaster, President Trump is proposing to radically expand offshore drilling, while dismantling the few protections put in place as a result of the catastrophic blowout."

By pulling together information from a number of sourcesincluding government documents, scientific studies, and interviews with Gulf Coast residents and policy expertsthe report conveys a chilling reality: It's not a question of another offshore oil spill happening, but simply when.

"What we found was disturbing," says the report.

While the date of the disasterApril 20, 2010is well in the rear view mirror, the consequences are not.

"Nobody was ready for this scale of pollution," Nova Southeastern University Professor Tracey Sutton told Oceana. "As far as we know, the actual impact of the spill is not over yet."

Among the impacts that are known are that as many as 800,000 birds died in the midst of and following the disaster. The oil gushing from the ocean floor also devastated bottlednose dolphinsover 75% of all dolphin pregnancies failed in the oiled area. The spill also ravaged frontline communities.

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"They failed our people," Clarice Friloux, who worked as outreach coordinator for the United Houma Nation during the spill recovery, told Oceana. "At one point, I remember thinking, 'Wow, this could kill off a whole generation of Native Americans living off the coast of Louisiana.'"

Contributing to the threat of another Deepwater Horizon-like spill is that the fossil fuel industry has pushed for riskier drillingfurther out and in deeper waters. Yet safety measures matching hose riskier moves have not been rolled out.

The Trump administration, meanwhile, has done nothing to dampen the industry's appetite for more drilling.

Instead of strengthening safety regulations, the industry and the Trump administration are dismantling the few protections put in place after the BP catastrophe. Without effective oversight and a more robust safety culture, another disaster at the level of Deepwater Horizon may be just as likely today as it was 10 years ago.

The report also points to weak approach taken by the Bureau of Safety and Environmental Enforcement (BSEE)a panel tasked with oversight of offshore drilling safety and was created in the year after Deepwater Horizon.

The only significant thing that happened was that BSEE did issue a regulation around blowout preventer devices," Cyn Sarthou, executive director of the New Orleans-based environmental policy organization Healthy Gulf, says in the report. "Under the new administration, they have rolled that back. Even that one regulation, which was very little ... has now been rolled back."

Simply put, the report states, "A decade later, the safety culture has not improved, and oversight of the industry remains deficient."

Oceana's report also points to Trump's move to greatly expand offshore drilling which further paved the path for another diaster. To prevent a similar tragedy, the new report outlines a number of recommendations and called on Congress and the White House to:

"When they drill, they spill," said Hoskins. "The BP disaster devastated the Gulf, and we cannot afford to repeat it. Protecting our environment has never been more important than it is today."

Original post:

10 Years After BP's Deepwater Horizon Offshore CatastropheWorst Spill in Historyand Nothing Learned, Says New Report - Common Dreams

HONOLULU (KHON2) The Hawaii Department of Land and Natural Resources (DLNR) said it will be closing down closing the Kaneohe sandbar and all offshore islets including the popular Mokulua islands. This comes after crowds were seen gathering there over the Easter weekend.

There [were] about 75 boats out there when our officers checked. There were several hundred people out there. Thats a lot of people in a very small area, said Jason Redulla, Chief of the Division of Conservation and Resources Enforcement Unit (DOCARE).

The department said 20 warnings were given to boaters at theHeeia KeaSmall Boat Harbor for gathering at a time when everyone is being asked to stay at home and social distance.

These are all things that are prohibited under the governors emergency rules, said Redulla.

Redulla said there will also be additional fines and penalties if caught on an offshore islet.

With the Mokuluas and all the other offshore islands, theyre all wildlife sanctuaries, and so given its closure at this point, people who violate those closures are subject to a fine and imprisonment or a combination of both, said Redulla.

He said thats in addition to the $5,000 dollar fine and that comes with breaking the stay-at-home order.

Its their individual responsibility not to cluster up or engage in activities where they cannot properly social distance themselves, and in those cases, we do have to take measures to reduce the risk of exposure to everyone, said Redulla.

The DLNR said people are also breaking the rules on hiking trails, and there are plans to put a stop to it while the state fights the COVID-19 pandemic.

It could be having people spot check these locations to make sure that people are complying, it could be placing monitors at various locations such as trail heads or it could mean outright closure, said Redulla.

Redulla did not say which trails this could be implemented at, but that theyre still looking into what could be done to manage public access in some areas.

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State closes offshore islets and Kaneohe sandbar after crowds gather Easter weekend - KHON2

Longer blades, taller towers, more powerful turbines: wind energy seems to be past the peak of innovation now, improving incrementally rather than with breakthrough. And yet none other than an oil company has ventured into a new field with massive potential: floating offshore wind.

The Norwegian petroleum ministry earlier this month approved a plan by Equinor to build and operate a floating offshore wind farm in the North Sea that will supply power to as many as five oil and gas platforms. The project is the first of its kind, but it would have significant implications both for offshore oil and gas and for offshore wind.

The facts: the Hywind Tampen wind farm, 140 km off the Norwegian coast, will have a total capacity of 88 MW with 11 turbines that will meet around 35 percent of the electricity needs of the two Snorre platforms and the three Gullfaks platforms. However, Equinor says that "In periods of higher wind speed this percentage will be significantly higher."

The $490-million (5 billion kroner) project will reduce the use of gas turbines for power generation, consequently lowering the emissions of carbon dioxide from the five platforms by some 200,000 tons annually and emissions of nitrous oxides by 1,000 tons.

That's certainly a sizable undertaking. It is unlikely to score Equinor many green points since the power generated by the wind farm will be used for extracting oil and gas from the bottom of the sea, but this is not the only purpose of the project.

According to Equinor, the Hywind Tampen wind farm will also be a test site for future offshore wind installations.

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"The Hywind Tampen project will contribute to further developing floating offshore wind technology and reducing the costs of future floating offshore wind farms, offering new industrial opportunities for Norway, the licences and Norwegian supplier industry in a growing global offshore wind market," Equinor said on its website.

Story continues

The global offshore market is indeed growing. A recent report from Wood Mackenzie said investments in offshore wind over the next five years could exceed $211 billion as investors move their focus from oil and gas to wind power. What's more, the investment gap between offshore wind and offshore oil and gas will narrow, with capital expenditure in offshore wind rising to top $200 billion in the period.

"Offshore wind projects are changing; the offshore wind supply chain will have to change with it," the Wood Mac analysts wrote. "The number of project interfaces the supply deals associated with a project is both broadening and decreasing, while the size of projects and contracts is growing."

Offshore wind carries lower returns for investors but also lower risk, the report's authors also noted. Typically, there would be many investors opting for higher returns over low risk. Still, with two oil market crashes in six years, it may be safe to say that a growing number of investors would now prefer the low risk associated with wind power over the higherbut uncertainreturns of oil and gas.

What's more, investors have been paying attention to what has been happening around the world in terms of changing sentiments towards oil and gas, and the push to arrest rising global average temperatures. Wood Mac is calling this energy transition risk, and this risk is present in oil and gas investments but absent in wind power projects, hence the greater interest.

The fact that Equinor is far from alone in its renewables push is indicative enough that the oil and gas industry, or at least part of it, has done its homework and is following investors in their changing attitudes.

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Shell, for example, has a small but growing presence in wind power, both offshore and onshore. The company has a stake in two projects in the Netherlands, one in operation and one in construction, and it is also a 50-percent shareholder in the Atlantic Shores project: a 2.5 GW offshore wind farm in New Jersey.

French Total is also betting big on renewables. The company eyes some 25 GW in renewable power generation capacity by 2025. To achieve this, Total has been expanding in the industry through acquisitions. It now has a presence along the supply chain and is further expanding it. Recently, Total joined the Erebus offshore wind project: a floating wind farm off the Welsh coast that will have a capacity of close to 100 MW.

Floating wind farms may well be the future: sooner or later, free space onshore and in shallow waters will run out, but the energy demand of a growing human population will continue to rise. Whether it starts as a way to reduce offshore oil and gas platforms' reliance on gas turbines for electricity, it will inevitably progress further than that. The great thing about it? Floating wind turbines are built in relatively deep water, where there is rarely a shortage of wind. This means they wouldn't need energy storage facilities, which are now becoming mandatory for the approval of some onshore wind and solar projects.

By Irina Slav for Oilprice.com

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Offshore Oil Could Soon Be Powered By Wind - Yahoo Finance

A rare New Zealand bird has been evacuated to a remote island despite the strict coronavirus lockdown, with the high-risk mission essential to the survival of the species, conservationists say.

Despite stringent lockdown orders in place country-wide, as New Zealand battles Covid-19, five juvenile shore plovers or tturuatu were flown from captivity in Christchurch to the remote, predator-free Mana Island off the coast of Wellington on Saturday.

The birds caught a near-empty Air New Zealand flight for the 450km journey, taking up full rows, and being monitored by cabin crew who have few human passengers to attend anymore.

Conservation minister Eugenie Sage said a lot of careful planning went into staging the operation.

There are just 250 of these birds left in the world and these juveniles are a critical part of attempts to establish a self-sustaining population on the pest-free Mana Island so numbers can grow, Sage said.

The journey of the critically threatened species whose juveniles become violent if quarantined in small spaces for too long was deemed essential, and stringent planning went into place to keep the birds and their human carers safe throughout the journey.

There are only 250 tturuatu left in the country, with the population vulnerable to attack by predators such as rats, stoats and cats.

Dave Houston at the Department of Conservation (DoC) said the birds were part of a third transfer this year that was put on hold when New Zealand went to alert level four.

A review highlighted the serious welfare risks posed to the birds by further delays. The young tturuatu have been in a small quarantine aviary and, like us, are subject to stress when confined, but with more serious health implications, he said.

Death by territorial aggression or stress-related health problems were a very real possibility if the birds were not relocated immediately, said Anne Richardson, wildlife manager at the Isaac Conservation and Wildlife Trust, and the loss would have been a real blow after a successful breeding season.

Strict Covid-19 lockdown regulations are in place country-wide, banning any non-essential domestic travel and international travel.

A sole carer travelled with the shore plovers for each leg of the journey, and social distancing measures were carefully maintained at pick-up and drop-off points, as well as extensive use of PPE. The urgent relocation was personally approved by the conservation minister.

Getting the birds to Mana Island as soon as possible is the best outcome, said Houston.

Now the birds have arrived, they have a strong chance of survival

Released juveniles are more likely to view the release site as their new home when they are in larger numbers, Houston said. The birds help to anchor each other to their release site. Establishing new populations is critical to the recovery programme and we cannot afford to lose one years worth of effort.

DoC ranger Nick Fisentzidis has remained as caretaker and manager on Mana Island with his family, and they are all self-isolating together, as well as caring for the local animals.

The plover will be fed by Fisentzidis to help acclimatise them to their new home, before being released in a few days.

There have been more than 1,200 cases of coronavirus in New Zealand and five deaths. A total lockdown of the country was implemented on 25 March, which has stopped the DoC doing the majority of its work, including pest control. Only the most at-risk and endangered animals kept in captivity or breedings centres continue to receive care from DoC rangers during lockdown.

The prime minister, Jacinda Ardern, will make a decision on how long the countrys lockdown will continue next week.

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Endangered New Zealand bird sent to safety offshore despite Covid-19 lockdown - The Guardian

Asia Defense|Security|Southeast Asia

Earlier this week, Manila officially commissioned another key vessel into the PCGs fleet.

Earlier this week, the Philippine Coast Guard (PCG) commissioned a French-built vessel, the largest in its fleet thus far. The development highlighted the countrys ongoing efforts to enhance the services capabilities in order to manage a series of internal and external developments.

As I have observed before in these pages, along with some of its other Southeast Asian neighbors, the Philippines has been placing an increasing emphasis on the development of its coast guard as it seeks to boost its overall capabilities, which still remain quite limited to cover over 7,000 islands and to manage a series of internal and external challenges with a tenth of the worlds coastline.

One of the contracts signed by the Philippine government to boost its coast guard capabilities was with the French shipbuilder OCEA for the delivery of offshore patrol vessels. That contract called for the delivery of five vessels for $99 million, with the delivery of the four other vessels completed back in 2018.

Earlier this week, this aspect of the PCGs capabilities was in the headlines again with the commissioning of the final of the five vessels in that contract. That vessel had been launched by OCEA in France in July 2019, and it was originally set to arrive in the Philippines late last year. However, the vessel was diverted to provide assistance to Filipinos in the Middle East amid rising confrontation between the United States and Iran earlier this year.

According to local media outlets, the French-built 84m OPV, named BRP Gabriela Silang (8301), arrived in Manila Bay on April 7 and was finally commissioned on April 13. The commissioning, held in a private, low-key manner amid the global coronavirus pandemic, was attended by Philippine officials including the PCG commandant Joel Garcia and Transportation Secretary Arthur Tugade.

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While the commissioning was in line with the contract signed by both sides, it is not without significance. The BRP Gabriela Silang is now the largest vessel within the PCG, and it represents a notable addition to Manilas limited but growing capabilities. More generally, the new vessel, which can house a crew of 40 with a maximum speed of 22 knots and a range of 8000 nautical miles, will further enable the PCG to undertake missions including safeguarding the countrys waters amid a series of internal and external challenges, including piracy, terrorism, and challenges to its South China Sea claims.

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New Offshore Patrol Vessel Commissioning Puts Philippines Coast Guard in the Headlines - The Diplomat

]]> HOOPS pipeline connects the Exxon-operated Hoover, Marshall and Madison offshore fields.

A leak in the ExxonMobil-operated Hoover offshore oil pipeline system (HOOPS) pipeline has forced Royal Dutch Shell to temporarily shut in production at its Perdido Gulf of Mexico facility.

Shell temporarily halted production on 9 April after a subsurface leak was discovered on HOOPS, The Financial Post reported.

A Shell spokeswoman said ExxonMobil has shut the pipeline for repairs.

Located in the US Gulf of Mexico, Perdido field is situated in water depths of 2,450m. It is approximately 200 miles south of Freeport, Texas, US.

The Perdido is a production hub which can handle 100,000 barrels of oil per day. Shell operates and owns 35% in the field. Other partners include Chevron (37.5%) and BP (27.5%).

According to Shell, without access to that pipeline system, and with no other alternatives in the available supply chain system, Perdido has been forced to ramp down operations.

HOOPS connects the Exxon-operated Hoover, Marshall and Madison offshore fields to the Quintana Terminal near Freeport over 153 miles. These fields have a combined capacity of producing about 4,000 barrels per day (bpd) of oil.

Last month, Shell announced it will reduce costs and spending to maintain financial stability during the coronavirus pandemic, saying that it needed to be well-positioned for the eventual economic recovery.

In the same month, Shell and Equinor signed a memorandum of understanding (MoU) to collaborate on digital solutions.

See the rest here:

Shell and Exxon halt Gulf of Mexico output due to pipeline leak - Offshore Technology

Offshore wind champion Orsted is concerned the coronavirus crisis may delay the kick-off of Japans first tender for utility-scale offshore wind projects, Matthias Bausenwein, president of the utilitys Asia-Pacific unit said.

The pandemic will not influence investment decisions and general confidence in offshore wind, but it could delay the projects timeline, Bausenwein told the Reuters news agency.

We hope that we wont see any major delays.

Orsted last month had announced it has formed a joint venture with Japans Tokyo Electric Power Company (TEPCO) to bid for the Choshi area off northern Japan in the island nations first tender for wind at sea. Choshi could have a capacity of several hundred megawatts or more, Orsted had told Recharge last year.

Orsted CEO Henrik Poulsen then had said he expects the auction to take place in the second half of the year.

Japan at first was much less affected by the spread of Covid-19 than European countries, thanks to early containment measures. But recently rising infections have prompted prime minister Shinzo Abe last week to declare a state of emergency to fight the spread of the virus.

Orsteds offshore wind projects in Taiwan have not been affected, Bausenwein told Reuters, but may see an impact over time.

The Danish company is building the 900MW Greater Changhua 1&2a project off Taiwan, which it expects to commission in 2022.

Excerpt from:

Orsted concerned Covid-19 may delay Japanese offshore wind auction - Recharge

Technology companies' generous donations to help tackle the coronavirus represent just 0.2 per cent of the $571bn of profits they have moved into tax havens, research has found.

Companies including Google, Facebook, and Intel have been praised for pledging around $1.2bn of cash and other donations in recent weeks.

Apple has donated 20 million face masks and made $15m in contributions while Facebook has announced more than $135m of funding, including donations to journalists to disseminate reliable information about the virus.

Sharing the full story, not just the headlines

Tax Watch UK, a campaigning think tank, said all of the donations were welcome. However, it calculated that the total commitments amount to a small fraction of the tax those companies have avoided paying.

Tax Watch used figures from a study by the Institute on Taxation and Economic Policy (ITEP) which show that eight of America's biggest tech firms - Google, Cisco, Apple, Facebook, Microsoft, Intel, Nvidia and Adobe - had moved $571bn into low or zero-tax jurisdictions like Bermuda by late 2017.

This date was used as it coincided with major reforms in the US which handed companies tax breaks to encourage them to bring their profits back to America rather than stash them offshore. Up until then, many US stock market listed companies regularly reported the amount of cash they held offshore, much of which represents profits they made on non-US markets.

Companies continue to move profits offshore from non-US markets, including the UK, but how they report this has changed, making it more difficult to precisely quantify.

According to ITEP, Apple had the largest offshore cash pile at $246bn, followed by Microsoft with $142bn and Cisco with $66bn. Google's parent company Alphabet has been by far the most generous in its Covid-19 crisis support, pledging $800m, but it had amassed $61bn in offshore profits by October 2017.

Intel, which has announced $60m of coronavirus aid, had $46.4bn held offshore while Adobe, which has donated $3m, had $4.2bn offshore.

If all of that money had been taxed at the full federal corporation tax rate which was then 35 per cent, the companies would have handed over $199bn in tax. In reality, most firms take advantage of various tax breaks granted to them by the US government so their effective rate is lower than 35 per cent.

No hype, just the advice and analysis you need

Since Donald Trump's tax reforms were passed, many American companies have subsequently repatriated some or all of their their profits that had previously been held offshore, taking advantage of a one-off lower tax rate of 15.5 per cent.

George Turner, director of TaxWatch, said: Any donation is of course valuable and welcome, but these figures do highlight that health services around the world would be better served if tech companies simply paid their taxes in normal times.

This data highlights the need for governments to continue their efforts to reform the international tax system and ensure that tech companies can no longer avoid paying taxes in the countries where their profits are made.

Companies are coming under additional scrutiny over their tax practices during the coronavirus pandemic as governments implement huge, publicly funded measures to prop up economies and save jobs.

Fair Tax Mark, an organisation that assesses and accredits companies which pay their fair share, is calling on the UK government to attach strings to any potential corporate bailouts that may be required.

Under the proposals, any company which is bailed out using public funds would have to sign up to a binding commitment that explicitly shuns tax avoidance and the artificial use of tax havens.

Bailed out firms would have to commit to declaring profits where the economic activity that generated them took place, and multinationals would be required to report profits on a country-by-country basis.

Excerpt from:

Coronavirus: Tech firms' donations just 0.2% of profits stashed offshore, research finds - The Independent

Article Overview

In one of the most challenging times for the energy industry, the focus of companies is not on growth, but on survival.

If we look at the broad energy industry, Whiting Petroleum Corporation (WLL) is the first major casualty with the company filing for bankruptcy. In my personal opinion, Chesapeake Energy (CHK) is not far behind.

Therefore, the sentiment related to the industry is bearish and this has translated into several stocks being oversold. This creates some trading opportunities, but investors need to be cautious.

Among stocks that have witnessed a sharp decline, Diamond Offshore (DO) has plummeted by 87% from 52-week highs of $12.64 and currently trades at $1.64. The stock can witness some trading bounce back. However, I remain bearish on Diamond Offshore.

This article will discuss the concerns that translate into a negative view on the stock even after the big decline.

Talking about survival, I would first look at the company's balance sheet and cash flow. Starting from the EBITDA level, Diamond Offshore reported an EBITDA of $247 million in 2018 and the company's EBITDA declined to $74 million in 2019.

Diamond Offshore has further mentioned in their annual report that cash flow for 2020 is likely to be negative. In all probability, the company will report operating level loss for 2020. The concern here is that the company has $2.0 billion in long-term debt. With losses at operating level, the company is likely to service debt through additional debt.

The positive point is that Diamond Offshore has $250 million in debt maturity in 2023 and $500 million in debt maturity in 2025. The remaining debt maturity comes on or after 2039. Therefore, the company faces no immediate debt refinancing pressure.

Another positive is that the company has $1.2 billion in undrawn credit facility. Even if we leave out the $250 million credit facility maturing in October 2020, the company still has $950 million in undrawn facility. In addition, balance sheet cash as of December 2019 was at $156 million. This will provide liquidity for debt servicing and maintenance capital expenditure through 2020.

However, this is not enough to boost investor confidence. The factor that will boost investor confidence is a relatively strong growth in order backlog. I don't see that coming through 2020 and potentially in 2021.

To put things into perspective, Diamond Offshore reported an order backlog of $1.6 billion as of December 2019. The backlog is front end loaded with $802 million of order executing in 2020 and $486 million in backlog for 2021.

Even with $802 million in backlog for the year, the company is expecting negative cash flows. Therefore, if Diamond Offshore has to return to operating level profit and positive cash flows in 2021, the backlog growth has to be significant.

With oil & gas companies scaling down on their investment plans, it seems unlikely that backlog growth will be strong through the year. My point is underscored by the fact that for 2019, Diamond Offshore reported order backlog growth of $620 million.

With significantly more challenging conditions, it would be optimistic to expect a backlog growth of even $600 million. Therefore, in all probability, Diamond Offshore will burn cash even in 2021. This concern will keep the stock subdued.

One factor that can take Diamond Offshore higher is a significant rise in oil prices in the next 12-18 months. I believe that there is a case for higher oil prices considering the following factors:

First, oil at $30 or $40 per barrel will hurt Russia, Saudi Arabia and the United States, among several other countries. With the COVID-19 already wreaking havoc, it's likely that oil producers will soon agree on production cut. This can take oil above $40 per barrel and potentially near $50 per barrel.

Second, China is already crawling back to normalcy after COVID-19. The same will hold true for other economies in the world. Once there is renewed economic growth and demand for oil, prices will trend higher. However, I don't expect strong economic recovery in 2020. It's only likely into 2021.

I also want to mention here that there is a significant amount of proven reserves in offshore deep-water and offshore.

This, coupled with the fact that offshore break-even price is on a decline, makes the outlook relatively positive for Diamond Offshore in the long term.

Of course, EBITDA margin is unlikely to be robust as it was few years before. However, orders will flow for companies like Transocean (RIG) and Diamond Offshore. The key factor for now is to reduce cost and battle for survival.

There is no doubt that Diamond Offshore has a high quality fleet. However, the company's liquidity and order backlog are a concern for the foreseeable future.

The backlog needs to grow and the company needs to show profit at operating level for the stock to witness any sustained rally.

For now, there can be strong bounce backs from oversold levels followed by renewed correction. Long-term investors can therefore avoid the stock even after the deep correction in 2020.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Avoid Diamond Offshore Even After A Big Correction - Seeking Alpha

Offshore staff

OSLO, Norway More than half of the worlds planned licensing rounds are likely to be canceled this year due to the combined effect of the COVID-19 pandemic and the ongoing oil price war, according to Rystad Energy.

New licensed offshore acreage is likely to fall by about 60% and onshore acreage by 30% compared with 2019 levels.

This year was slated to be another remarkable year for exploration with about 45 countries launching at least 52 lease rounds, about 60% of them in offshore areas, the consultant claimed. The decline in the expected number of lease rounds compared to last years 69 was not a sign of fewer countries offering new licenses, but a result of several countries offering multiple rounds in 2019, including Brazil, Ukraine, India, and the US.

In its analysis, Rystad Energy has evaluated the rounds and distributed them in three categories: likely, tentative, and unlikely to take place.

Aatisha Mahajan, Rystad Energys senior upstream analyst, said: The unlikely upcoming lease rounds represent around 54% a worrisome sign for global exploration. A number of factors together make these rounds unlikely to go ahead, including the oil price drop, a global cut in investments by almost 20%, a lack of skilled manpower due to the Covid-19 pandemic, fiscal regimes that are proving unattractive in the current environment, and a lack of interest among potential participating companies.

In Europe, unlikely rounds are in UK, Ukraine, Romania, and Germany. In South America, rounds in Colombia, Brazil, Ecuador and the Dominican Republic may not go ahead, while in Asia rounds in Thailand, Uzbekistan, Myanmar and the UAE may be put on hold. New Zealand is also in doubt, and in Africa, licensing rounds in Ivory Coast, Algeria, Tanzania, Senegal, Somalia, Liberia, Ghana, Equatorial Guinea, Angola, South Sudan, and Nigeria may also be put on hold.

The US, Suriname, Egypt, Russia, and China make up the list of countries where licensing rounds hang in the balance and are marked as tentative. The US recently concluded its Lease Sale 254 in the Gulf of Mexico with digital technology playing a big role and the sale process was streamed live.

Suriname is developing into a hotspot for global exploration with two major discoveries in recent months. Riding on these successes, the South American nation might be able to go ahead and conclude a successful round. However, economics will play a role depending on how the future oil price is formulated for the participating companies, the consultant said.

Egypt is a very prospective region and has open-door licensing, under which companies with significant free cash flow might be willing to participate. Russia and China both have local players as the common bidders in licensing rounds and might therefore still go ahead with their scheduled rounds.

Licensing rounds that are likely to go ahead include countries such as Malaysia, Trinidad and Tobago, Norway, India, Lebanon, and Canada. These countries look well on track to continue their lease rounds as scheduled, although the current industry volatility could cause slight delays. India is planning to combine the OALP (Open Acreage Licensing Policy) with Round 5&6, and these blocks will be up for grabs in July.

Canada plans to go ahead with its offshore Labrador region. Trinidad and Tobago is riding on its significant exploration success having discovered around 400 MMboe in 2019 and seems to be better placed with interested parties among the active players in the region combined with a mild outbreak of COVID-19 so far.

Norway intends to proceed with its annual awards in pre-defined areas (APA) round of all mature, unlicensed acreage, and has proposed adding 36 deepwater Norwegian Sea blocks to the available area.

Eight of the initially expected 52 licensing rounds have already been completed, in Barbados, Canada (C-NLOPB 2020), the US (Lease Sale 254), Gabon, Pakistan, Oman, Australia, and Republic of the Congo.

We expect to see a large drop in awarded acreage this year compared with 2019. In percentage terms, the drop in offshore acreage could match the nearly 60% decline seen from 2014 to 2015, while awarded onshore acreage could shrink by almost one-third compared with a 16% drop after the previous downturn, Mahajan added.

As the decline comes from a lower level than it did in 2014, the consultant expects that global awarded acreage is likely to fall below 2015 levels this year, while staying above the level seen in 2016. All will depend on global oil and gas companies budgets and their appetite to take on new risk and exploration commitments in the current market environment.

04/14/2020

Excerpt from:

New licensed offshore acreage likely to fall by about 60%, consultant warns - Offshore Oil and Gas Magazine

Last week, Eastern Shipbuilding Group (ESG) announced that the U.S. Coast Guard had executed a contract modification to build the second offshore patrol cutter (OPC) and for long lead time materials for the third OPC. Eastern successfully completed a Production Readiness Review (PRR) in February.

Today represents not only the continuation of production for the Coast Guards future replacement of their 210-foot and 270-foot-class medium endurance cutters, but also an important step in the continuing recovery of northwest Florida and ESG post-Hurricane Michael, Easterns President Joey DIsernia said in a statement. Looking back on the condition of our shipyard and our community immediately post-Michael in comparison to how far we have come, I could not be more proud of our team for what we have accomplished to date. We are excited about the future of this program and will continue to work diligently with our vendor network from 29 other states to produce high quality, highly capable vessels for the men and women of the Coast Guard.

After Hurricane Michael, Panama City, Fla.-based Easternsubmitted a request on June 30, 2019, for extraordinary relief after its shipbuilding facilities sustained significant damages from Michael, a Category 5 storm, in October 2018.

The Department of Homeland Security, in coordination with the Coast Guard, granted extraordinary relief to ESG for work on the OPC contract in October 2019. Contract relief was limited to the first four hulls on the basis that ESGs performance on the OPC contract is vital to the national defense.

In 2016, the Coast Guard exercised the option for detail design on ESGs OPC contract. The contract includes the production of up to four vessels.

In 2018, ESG, announced that the Coast Guard had exercised the option to build the lead 360x54 OPC Argus(WMSM-915). Delivery of theArguswas scheduled for 2021. The additional OPCs were expected to have far shorter build times than the three years it will take for the lead OPC.

At the time, the Coast Guard also exercised the option for long lead time materials for the OPC Chase (WMSM-916). The value of the two options was $317.5 million.

In 2016, the Coast Guard exercised the option for detail design on ESGs OPC contract. The contract includes the production of up to four vessels.

The OPC is designed to conduct multiple missions in support of the nations maritime security and border protection. The OPC will provide a capability bridge between the national security cutter, which patrols the open ocean in the most demanding maritime environments, and the fast response cutter, which serves closer to shore. The OPC design includes the capability of carrying an MH-60R or MH-65 Helicopter and three operational Over-The-Horizon (OTH) small boats. The vessel is also equipped with a highly sophisticated combat system and C4ISR suite that will enhance capabilities to execute the services missions.

Firepower will include aBAEMk 110 57mm gun and gunfire control system, BAE Mk 98 model 2 25mm gun, two M2Browning.50 caliber machine guns mounted on remote operated small arms mounts, and four crew served M2 Browning .50 caliber machine guns. The cutters will also be equipped with a highly sophisticated combat system and C4ISR suite that will enhance capabilities to execute the services missions.

Main propulsion will come from twinFairbanks Morse-MAN16V28/33D STC diesel engines, producing 9,760 hp at 1,000 rpm each, connected toRolls-Royce5-bladed controllable pitch props, giving the OPC a running speed of 22 knots. The cutters will have a 60-day endurance and a range of 9,500 nautical miles at 14 knots.

Read more:

Eastern Shipbuilding to build second Coast Guard offshore patrol cutter - WorkBoat

Some North Sea renewable energy projects face growing construction headaches with every passing month taken up by the coronavirus pandemic, an offshore wind expert has warned.

John MacAskill, business development and operations director for Offshore Wind Consultants, warned that Covid-19 related construction restrictions could begin to impact delay schedules and increased costs for developers.

Research firm GlobalData warned yesterday the UK could see stringent quarantine measures on turbine parts resulting in a materials supply bottleneck.

But Mr MacAskill said he is more concerned that continued restrictions reaching into the summer could impact 2020 construction schedules.

He said it could at best increase costs for developers as they seek to fulfil contract obligations in the midst of delayed turbine supply.

However, he added that the current uncertainty around Brexit is as much a threat to market pricing as the coronavirus pandemic and could cause worker shortages.

He added: The UK is an export market for most wind turbines firms, so we are at as much risk to Brexit implications medium and longer term as Covid-19 when it comes to pricing.

I am not downplaying this, but if I was negotiating wind turbine contracts this year for 2022-2025, I would be less bothered about staff shortages in 2020 than I would be if I am due to construct in 2020 which with every month passing is making challenges more acute.

Read more:

North Sea offshore wind projects could face Covid-19 construction headaches, expert claims - News for the Oil and Gas Sector - Energy Voice

Virginias GovernorRalph Northam has signed the Clean Economy Act which requires at least 5.2 GW of offshore wind power to be developed in this U.S. state by 2034.

The Virginia General Assembly passed this House Bill 1526andSenate Bill 851 Clean Economy Act in March.

The act provides that 5.2 GW of offshore wind generation is in the public interest.

It requires Dominion Energy to prioritize hiring local workers from historically disadvantaged communities, to work with the Commonwealth to advance apprenticeship and job training, and to include an environmental and fisheries mitigation plan.

The law requires nearly all coal-fired plants to close by the end of 2024, electricity to come from 100% renewable sources and Dominion Energy to be 100% carbon-free by 2045.

Energy companies must pay penalties for not meeting their targets, and part of that revenue would fund job training and renewable energy programs in historically disadvantaged communities.

These new clean energy laws propel Virginia to leadership among the states in fighting climate change,said Governor Northam. They advance environmental justice and help create clean energy jobs. In Virginia, we are proving that a clean environment and a strong economy go hand-in-hand.

Dominion Energy and rsted are currently developingVirginias first offshore wind project the 12 MW Coastal Virginia Offshore Wind (CVOW) demonstration wind farm.

The two-turbine project is expected to provide the operational, weather, and environmental experience needed for large-scale development in Dominion Energys adjacent 112,800ha lease site, which has the capacity to generate up to 2 GW of offshore wind.

See the original post:

Virginia Governor Signs Off on 5.2 GW by 2034 Offshore Wind Target - Offshore WIND

Edinburgh-headquartered Renewable Infrastructure Development Group (RIDG) has expanded its team with two hires in preparation for the ScotWind offshore wind seabed leasing round in Scotland.

Isla Robb will lead on RIDGs Supply Chain and Skills as an Associate Director, working to ensure that the RIDG approach to project delivery is innovative, commercially competitive, and maximises Scottish and UK domestic content. Robb previously led Scottish Enterprises offshore wind supply chain and skills activities, RIDG said.

This is a great time to be working in offshore wind and this company has innovative and forward-thinking ideas to ensure success, Robb said.

It is a great opportunity to build on the work that RIDG has already done with potential suppliers based in Scotland and allows me continue to work with many of the companies and skills providers I have worked with, this time from a project perspective, and to take it to the next level, to the bid stage and beyond.

Marc Smeed joins from Xero Energy, part of ITP Energised, and will lead the companys Grid and Power Offtake workstreams also as an Associate Director. Having worked in offshore wind since 2008, Smeed has been directly involved in the connection of over 20GW of onshore and offshore energy projects, RIDG said. He will focus on optimising power offtake arrangements including system security and affordability, key challenges for all Scottish offshore projects.

2020 is an exciting year for the Scottish offshore wind industry with the new Sectoral Marine Plan, ScotWind leasing round and the Scottish Governments hydrogen policy statement, Smeede said.

Having worked in the Scottish offshore wind supply chain for 12 years, Ive been lucky enough to have first-hand experience working with many of the key global offshore wind players. As a talented, home-grown team, RIDG is extremely well placed to contribute to Scotlands success as we lead the world into a net zero future.

Crown Estate Scotlandplans to launchthe ScotWind leasing this spring, after the publicationof Marine Scotlands draft Sectoral Marine Plan (SMP).

Keith Williamson, RIDGs Technical Director, said: As recognised experts in their respective fields, Marc and Isla bring a wealth of experience to the RIDG team as we ramp-up for ScotWind. I am delighted that they have agreed to join us at the outset of such an important period for the offshore wind industry and the wider energy transition in Scotland.

See the rest here:

RIDG Bolsters Team Ahead of ScotWind - Offshore WIND

About once a month, energy consulting firm IHS Markit releases a report on the offshore drilling industry that it calls the Offshore Rig Day Rate Trends report. In this report, the firm discusses both the utilization rate and leading market new contract dayrate trends for four types of offshore drilling rigs that it believes serve as effective proxies for the broader industry. For the most part, it has chosen quite well as will be explained over the course of this article. These trends are important for investors to follow, as this data is important for understanding the trajectory of the industry and the way that the financial performance of these companies is likely to progress going forward. We will look at each of the different types of rigs discussed in the report and their dayrate and utilization trends in turn.

The first type of rig that has its dayrate and utilization trends tracked by the IHS Markit report is ultra-deepwater semisubmersibles. These are defined as semisubmersible drilling rigs that are capable of operating in at least 7,500 feet of water. A semisubmersible rig is essentially a floating platform that is supported by two pontoons that sit below the water surface. These are the rigs that most people think of when they picture an offshore drilling rig.

Source: RigZone

As the IHS Markit report only includes the data for those semisubmersibles that are capable of operating in an ultra-deepwater environment, these are the newest semisubmersibles. This is important because exploration and production companies have shown a marked preference for hiring modern units, so the ones analyzed in the report would have higher demand than the semisubmersible fleet as a whole. With that said though, these rigs have seen a marked decrease in popularity since the last recession and most ultra-deepwater rigs that have been constructed over the past decade are drilling ships, which will be discussed later. Thus, while these may be the most modern semisubmersibles, most of them are still not going to be particularly new rigs.

Here are the utilization and new contract dayrate trends for the world's ultra-deepwater semisubmersible fleet:

Source: IHS Markit

As we can see, the utilization rate for these rigs has generally been increasing over the second half of 2019, although it still remains quite low. While it has been decreasing a bit this year, it still remains higher in the most recent month than it did over the entirety of the last two years. This is something that may be surprising to some readers given the severe impact that the coronavirus pandemic has had on the energy markets, but it does typically take a long time for price fluctuations to reverberate through the market and cause the companies in it to change their plans. We have already begun seeing some projects get postponed, but as I mentioned in a recent article, this has had more of an impact on long-term projects than near-term ones. Semisubmersibles are mostly used in development work due to their stability and lack of mobility so if we start seeing offshore projects delayed en masse due to low oil prices, this will eventually begin to have an impact on this segment of the market.

The economic law of supply and demand allows us to assume that dayrates will go up when utilization does because of the reduced supply of available rigs in the market. We do certainly see this as the leading new contract dayrate is well above 2017 and 2018 levels. With that said though, we can still see that half of the global fleet is still unemployed, so there is still insufficient pressure on dayrates to push the new contract dayrate up significantly. This will likely continue to be the case for several more months, if not longer given the current low oil price environment.

The second type of rig that has its dayrate and utilization trends tracked by the IHS Markit report is ultra-deepwater drillships. As was the case with their cousins, these are defined as drillships that are capable of operating in at least 7,500 feet of water. These are therefore the most modern and technically-capable drillships in the global fleet today, which does grant them the preference that modern rigs enjoy when it comes to securing those contracts that are available from exploration and production companies. As the name implies, a drillship is a ship (frequently a modified oil tanker) that has been specially equipped to perform drilling operations. This design grants these rigs superior mobility to a semisubmersible rig, but they are much less stable in harsh or choppy water conditions than their cousins. As a result, drillships are commonly used in exploratory operations where their mobility proves to be an asset in moving from site to site.

Here are the utilization and new contract dayrate trends for the world's ultra-deepwater drillship fleet:

Source: IHS Markit

We can see some similarities here between the ultra-deepwater drillships and their semisubmersible cousins. In particular, we can see that the utilization rate for this type of rig is currently higher than at any other time over the past two years. This shows very real evidence that the industry has been recovering, which is in line with what the managements at various offshore drilling companies have been telling us. We can still see though that the utilization rate does still remain below 80%, which is the level that is generally considered to represent a sustained recovery. As I explained in a recent article too, we have begun to see energy companies cut spending on their exploration programs in response to low oil prices, so it will be interesting to see if the utilization rate can sustain this level going forward in the face of lower demand. This is somewhat doubtful.

As was the case with the semisubmersible rigs, the improvement in the utilization rate has had the beneficial effect of pressuring dayrates up. However, there is still around 30% of the global fleet unemployed, so there is still a significant amount of slack in the market. The utilization rate historically needs to get above 80% before it starts to exert significant and sustained upward pressure on dayrates. As we just discussed, it may not be able to reach that because of cost cuts on the part of energy companies. In addition to this, the leading new contract dayrate is still relatively low, but it is high enough for drilling companies to generate a positive cash flow off of the contracts that they are able to get. We could soon see a reversal here though if the utilization rate does indeed begin to decline, which seems likely.

The third type of rig that has its utilization and new contract day rate trends tracked by the IHS Markit report is harsh-environment jack-ups. As the name implies, these are shallow-water drilling rigs that have been specially equipped to operate in some of the harshest weather conditions in the world such as those found in the Arctic or the North Sea. Unlike with the other types of rig, IHS Markit did not choose to use the newest rigs in this classification when compiling its report. The company instead opted to use standard units, which are defined as those rigs that have a maximum operational water depth of 350 feet. While these are not the most modern units around, they are by far the most numerous so this does work reasonably well as a proxy for the fleet as a whole. The consulting firm has also opted to use the data only for those rigs operating in Northwest Europe. This is the location where most of these rigs operate so the data from these rigs should give a reasonably approximation of the global trends.

Here are the utilization and leading new contract dayrate trends for the harsh-environment fleet:

Source: IHS Markit

The harsh-environment market was one of the few bastions of strength in the offshore drilling market over the past few years. Unfortunately, we can see that this strength appears to be waning as the utilization rate has now dropped back to the lowest level that it has had since mid-2018. The rate has been flat at 50% for many months now, though. This is not a particularly attractive rate however as we can see that fully half of the fleet is unemployed. These rigs tend to have reasonably long contract terms, so this type of rig might see its utilization rate hold up a bit better going forward than some other rigs in the current environment, depending of course on how long the current low price environment persists.

We can also see here that the leading market dayrate has been relatively consistent over the past several months and currently sits just below $75,000, which is the highest that it has stood over the past two years with the exception of one month. It is unfortunately questionable whether or not the current dayrate is high enough to allow the companies that own the rigs to generate a positive cash flow off of the rig contracts. As was the case with many of the other rig types, the utilization rate is likely too low to pressure dayrates up much more. Thus, we will probably not see any real improvements here for a while.

The final type of rig that has its dayrate and utilization trends tracked by the IHS Markit report is high-specification jack-ups. For the purposes of this report, a high-specification jack-up is defined as an independent leg cantilever jack-up rig capable of operating in a maximum water depth of 361 to 400 feet. Curious, this definition would exclude even more capable rigs like the Gorilla-series operated by Valaris (VAL). For the most part though, this definition would encompass most of the modern jack-up fleet. Thus, these are going to be the rigs that are most in demand by exploration and production companies, so should give us a good idea of the broader trends affecting this segment of the industry.

Here are the utilization and new contract dayrate trends for the benign-environment, shallow-water fleet:

Source: IHS Markit

We can clearly see here some real signs of strength in the utilization rate. As we can see, it has generally been steadily climbing over the past two years. It does unfortunately remain well below the 80% level that we need to show a sustained recovery in the industry. This part of the global fleet may also be more vulnerable to a slowdown in exploration activity than other fleet segments. This is because the contracts for shallow-water rigs tend to be exceptionally short and are frequently only for one or two wells. This allows the customers to get out of a contract quickly since they can always deny a renewal. As a result, the high-specification jack-up segment is typically a leading indicator for the rest of the offshore drilling industry. We will want to keep an eye on this metric over the next few months to see if the industry ends up being devastated by the cutbacks in upstream exploration spending.

Thus far, we can see that the leading new contract dayrate has held up okay, although it has been falling over the last two months. It still remains at a higher level than what we have seen over most of the past two years. At $75,000 per day too, it is high enough to allow these rigs to produce a positive cash flow to their owners, although it will not be a particularly high cash flow and may not be enough to cover things like onshore general and administrative costs that are not allocated to any individual rig. It is also possible the new contract dayrate will decline should the utilization drop in response to low oil prices, which would stress the finances of the companies in the industry further.

In conclusion, we are seeing some very real signs of a recovery in the offshore drilling industry here, although it is weaker than we really want to see. The problem could be that upstream companies have begun to cut back on exploration spending and this will reduce the demand for drilling rigs, killing the nascent recovery. We will want to keep an eye on the relevant metrics here over the next few months to see if this scenario plays out in order to make a more informed investment decision.

At Energy Profits in Dividends, we seek to generate a 7%+ income yield by investing in a portfolio of energy stocks while minimizing our risk of principal loss. By subscribing, you will get access to our best ideas earlier than they are released to the general public (and many of them are not released at all) as well as far more in-depth research than we make available to everybody. We are currently offering a two-week free trial for the service, so check us out!

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Analyzing Current Utilization And Day Rate Trends In The Offshore Drilling Industry - March 2020 Edition - Seeking Alpha

The growth of offshore wind development is central to the future of the southern North Sea, but wont be an easy thing to do.

Danielle Lane, Vattenfalls UK country manager, believes that with so much activity in the basin it is important that the Swedish firm and all offshore wind developers works collaboratively with all organisations and groups to get the right sites in the right locations.

In Scotland, Vattenfall is perhaps best known for its 300 million European Offshore Wind Deployment Centre (EOWDC) in Aberdeen Bay, but the company also has anumber of big wind farms in development within the UK southern North Sea.

The Norfolk Vanguard and Boreas projects are the firms most dominant and between them will look to generate 3.6 gigawatts representing the biggest part of Vattenfalls European pipeline.

Lane described the southern North Sea as very busy and key to the future of the basin.

She said: We have to be sensitive about where we place future projects.

It will take work from all groups, from conservation groups right through to industry.

It can be done, there is capacity, but it will take co-operation to get the right sites in the right locations.

Lane said that the coronavirus outbreak hasnt yet halted Vattenfalls march forward with construction as it develops its southern North Sea sites, but will come under review if the situation worsens.

Lane said the firm was keeping a close eye on the pandemic and she paid tribute to those workers still operating wind farms in the North Sea to keep the UK in plentiful clean energy.

She said: We dont know what the long-term impact will be and as far as offshore is concerned we have been going through a whole process of business continuity planning and our key priorities are keeping the turbines working safely at our sites.

Its important that we look after the people who are actually doing the work offshore.

We rightly spend a lot of time celebrating the NHS and essential services that we depend on, but we shouldnt forget about those people who work in the electricity sector and who are keeping the lights on for us.

The UK chief also said she was seeing increasingly more positive action from oil and gas firms on the issue of offshore wind farms supplying electricity to decarbonise assets.

Lane also confirmed that Vattenfall was looking closely at what the potential for hydrogen production in the UK might look like at a larger scale.

She said: Its massively important that we get maximum value for UK consumers from all of the activity in the North Sea.

A lot of this will come will come from the oil and gas companies who see the potential now of linking up with offshore wind projects, but we should be careful not to expect that these kind of things will happen tomorrow.

With any infrastructure there is a lead time between these exciting discussions and the delivery of projects.

Read the rest here:

Offshore wind growth key to future of basin - News for the Oil and Gas Sector - Energy Voice

4/8/2020

Hywind Tampen wind farm diagram

OSLO - The Ministry of Petroleum and Industry has approved the plans for development and operation of the Hywind Tampen wind farm. The Snorre and Gullfaks platforms will be the first platforms in the world to receive power from a floating offshore wind farm.

On 11 October 2019, Equinor and the Snorre and Gullfaks partners submitted two updated plans for development and operation to Norwegian authorities.

Hywind Tampen is a pioneering project and a central contribution to reducing emissions from Gullfaks and Snorre, and I am pleased that both ESA and Norwegian authorities have approved the project. We are experiencing very challenging times, and we are focusing on continuing our transition effort while attending to and developing the value on the Norwegian continental shelf and at the same time reducing the climate footprint from our operations, says Arne Sigve Nylund, Equinors executive vice president for Development & Production Norway.

By reducing the use of gas turbines on the fields, the project will help reduce CO2 emissions by more than 200,000 tons per year, corresponding to annual emissions from 100,000 private cars.

The Hywind Tampen investment will be close to NOK 5 billion. Norwegian authorities have granted funding of up to NOK 2.3 billion through Enova. The Business Sectors NOx fund has decided to support the project by up to NOK 566 million.

On behalf of the partners, Equinor has awarded contracts totaling NOK 3.4 billion, subject to final project approval by Norwegian authorities. It is a plus that the oil and gas industry is competitive in renewables projects as well, and the contracts will lead to considerable spinoff effects in Norway. As the whole industry is currently experiencing much uncertainty, it is vital that we progress projects that spur technology development in the renewables segment and create spinoff effects on the Norwegian supplier industry, says Anders Opedal, executive vice president for Technology, Projects & Drilling.

According to a study made by Multiconsult, the Hywind Tampen project will create spinoff effects during the projects life of 1 550 to 3 000 man-years for Norwegian trade and industry. Most of the spinoff effects will occur in the projects development phase.

The wind farm will consist of 11 wind turbines based on the Hywind wind farm concept developed by Equinor. The 8 MW turbines will have a total capacity of 88 MW and meet about 35 per cent of the annual power demand of the five platforms Snorre A and B and Gullfaks A, B and C. The wind farm will be located around 140 kilometers from shore, between the Snorre and Gullfaks platforms, at a water depth of 260 to 300 meters.

Operated from Equinors offices in Bergen, Hywind Tampen is scheduled for start-up at the end of 2022.

Read the original:

Norway greenlights new wind farm to power offshore production platforms - WorldOil

The Connecticut Insurance Department has invited offshore captives to consider relocating to Connecticut.

Janet Grace, programme manager of the captive insurance division at the Connecticut Insurance Department, said: If your captive is located outside the US, this may be the time to bring it to Connecticut, where you can take advantage of our brain trust of captive innovators, who may be able to help you deal with lost revenue at this time of crisis.

The invitation came as Connecticuts healthcare facilities suffer from significant daily losses of revenue as they reallocate resources to dealing with the COVID-19 outbreak, according to Michael Maglaras, principal of Michael Maglaras & Company.

Maglaras warned the reallocation of resources was coming at the expense of ambulatory and elective surgery revenue.

Andrew Mais, commissioner of the Connecticut Insurance Department, said: Healthcare facilities and other businesses in Connecticut are quickly realising that business interruption claims caused by the COVID-19 crisis may be difficult to collect on, unless physical loss or damage to property can be substantiated.

Property policies written for health care institutions frequently contain broad limitations on business interruption coverage caused by the cascading effect of dealing with the coronavirus and other losses stemming directly from disease contamination, Maglaras explained.

He said his company has been busy liaising with captive owners about how they can use their captives existing surplus to augment property coverage availability. We first encourage health care providers and others to determine the amount of commercial coverage for decontamination costs, communicable disease cleanup, and interruption by communicable disease, he said.

Captive insurance companies can play a significant role in claim recovery for healthcare facilities, depending upon the amount of the loss and the availability of a captives surplus, said Maglaras.

onnecticut Insurance Department, Janet Grace, Michael Maglaras, Andrew Mais, COVID-19

View original post here:

Captives regulator invites offshore captives to Connecticut - Captive International