Daily Archives: May 9, 2021

The Government of South Korea will invest KRW 1.4 trillion (around EUR 1 billion) in the first phase of the project to develop a 6 GW floating wind farm offshore Ulsan, the countrys president Moon Jae-in said.

The mammoth project will need a public-private investment of some KRW 36 trillion (EUR 26.7 billion), with the full commissioning expected in 2030.

Some 20 per cent of the electricity produced at the wind farm could be used to produce around 84,000 tons of hydrogen per year, Moon said.

This one project alone would meet half of the countrys offshore wind capacity target by 2030.

The project is expected to create 210,000 jobs, Moon said.

The 6 GW wind farm will be built at the site of the Donghae 1 gas field which is scheduled to end production in 2022.

Located some 58 kilometres off Ulsan, the site has already been selected by Korea National Oil Corporation (KNOC), Korea East-West Power (EWP), and Equinor for the development of the 200 MW Donghae 1 demonstration floating wind farm.

A portion of the power produced at Donghae 1 will be used to power a 100 MW electrolyser plant being developed under a different project.

As big as this 6 GW floating wind farm is, it is still not the largest offshore wind project announced in South Korea.

Back in February, the country launched a KRW 48.5 trillion project to build an 8.2 GW fixed-bottom offshore wind farm off the Sinan County, South Jeolla Province, by 2030.

If both of these projects are fully built, South Korea will blow past its target of having 12 GW of installed offshore wind capacity by 2030.

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South Korea Unveils EUR 27 Billion Floating Wind Project - Offshore WIND

DUBLIN--(BUSINESS WIRE)--The "Global Oil and Gas Industry Contracts Review, Q1 2021 - BW Offshore Secures EPCI and Operation Contract for Barossa FPSO in Australia" report has been added to ResearchAndMarkets.com's offering.

The report portrays detailed comparative data on the number of contracts and their value in the quarter, subdivided by region, sector and geographies during the quarter, Additionally, the report provides information on the top contractors and issuers based on the worth of contracts executed in the oil and gas industry during the quarter by geographies and over the year.

Scope

Reasons to Buy

Key Topics Covered:

For more information about this report visit https://www.researchandmarkets.com/r/pj6opl

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Global Oil and Gas Industry Contracts Report, Q1 2021 - BW Offshore Secures EPCI and Operation Contract for Barossa FPSO in Australia -...

Five years ago, tax law expertAndrLareauwas blockedfromgiving testimony before the House of Commons finance committee by a last-minute gag order preventing witnesses from talking about a prominentaccounting firm'stax avoidancescheme.

Now, he has a message for the members of Parliament who are todayrebooting theirprobe into offshore companies registeredin the Isle of Man: if they'reserious this time,they should subpoena the Canadian accountants who helped toset up theoffshore tax dodge and demand that theygive upthe names of the wealthy Canadians whose identities they've beenprotecting.

"If the committee is willing to open that, well, maybe, just maybe, that means that they are pretty serious about it," Lareau, an associate professor at Laval University,told CBC News.

MPs are re-launching theprobe Parliamentarianshalted in June 2016after the accounting firm KPMG said witness testimony in Ottawa could prejudice ongoing court cases.

CBC's the Fifth Estate and Radio-Canada's Enquete reported earlier this year that shell companies set up in the Isle of Man are suspected of involvement in a massive fraud that cost investors their life savings.Some experts believeKPMGmay have had a hand in creating those companies.

Documents obtained from the Isle of Man's public registry, as well as emails from an offshore leak of financial data, show links betweenKPMG and four shell companies set up in December 2001 that werenamed after ancient swords.

KPMG acknowledges it set up a tax avoidance and asset protection "structure" in the Isle of Man for wealthy Canadians beginning in the late 1990s.

But the accounting firm also known for providing advisory and auditing services to federal and provincial governments denies having anything to do with helping toset up the four shellcompanieslater suspected of being involved in a financial fraud that cost investors their life savings, and where more than $500 million disappeared offshore.

CBC/Radio-Canada's revelation of asuspected connectionbetween those shell companies and the missing millionsprompted fraud victims and opposition parties to call for a reboot of the finance committee's long-dormant investigation of the Isle of Man and offshore shell companies.

"People have been cheated, they have lost their savings. The federal government should do more than pay lip service in the fight against tax evasion and international tax evaders," said NDP MP Peter Julian.

"Canadian offshore bank accounts are hiding money from the government. Why would any party not want that revealed?" said Green Party MP Elizabeth May.

MPsfrom all parties voted last weekto resumecommitteehearings this afternoon into offshore tax shelters, including those in the Isle of Man.

Today's witness list includes LucyIacovelli KPMGCanada's managing partner for tax andJanet Watson, who lost her savings in a Montreal-based fraud known as the Cinar/Norshield/Mount Real scheme.

Lareau saidthat, for the revived committeeprobe to be effective, MPs must call the individual accountants and bankers who were involved in setting up various Isle of Man shell companies and who know the namesof the wealthy Canadians or "beneficial owners" behind them.

"Obviously, they will talk only to the committee if they are obliged to do so," Lareau said, pointing outthatCommons committees have the power to issue subpoenas.

In the past, KPMG has opposed releasing the names of the wealthy Canadians behind multipleshell companies it helped to set upin the Isle of Man, citing client confidentiality.

Lareau said he believesthatMPs were underpressure from the accounting industry to limit their probewhen they launched itfive years ago.

In 2016, the Liberal-dominated finance committee defeated an opposition motion to compelKPMGto provide the names of the "beneficial owners" of thoseshell companies. DennisHowlett, the former head of Canadians for Tax Fairness, said it's high time the veil was lifted.

"It would be a good idea to forceKPMGto disclose beneficial owners," saidHowlett. "It's not right that people can hide behind shell companies."

The Trudeau government said in its recent budget that, as part of a plan to crack down on tax avoidance, it would introducea registry toidentify the beneficial owners ofCanadian companies.

While that measure wouldn'taffect the Canadiansbehind offshore companies, it does indicate the Liberal government is concerned about corporations set up to protect the identities of theirtrue owners, saidHowlett.

Howlettisone of the tax experts who was alsoprevented from testifying at the House of Commons finance committee five years ago.

Both Howlett andLareau wereasked to testify about the KPMG Isle of Man scheme but were barredfrom even mentioning the name of the accounting firm when they got to the witness stand.

Lareau and Howlett were told that a lawyer for KPMG had written a letter to the committee warningthat a continued probe of the accounting firm could improperly affect ongoing tax court cases.

Liberal MPWayne Easter,chair of the finance committee, then toldLareau and Howlett they could not giveany testimony related to the accounting firm's Isle of Man tax scheme.

"Why am I here?" Lareausaid at the time. "They asked me to come here to speak about KPMG and I'm prevented from speaking about KPMG."

"The particular case that we're not supposed to refer to is only the tip of the iceberg," Howlett told MPs on the committeein 2016.

The three tax court casesKPMGsaid it was concerned about weresettled out of court two years ago but the finance committee never resumed its probe until news reports earlier this year revealed new information regardingKPMG'spotential connection to companies later suspected of involvementin the fraud.

Financial asset tracers have said that identifying the true owners behind the so-called "sword companies" Katar, Sceax, Spatha and Shashqua could go a long way in helping governmentsunderstandhow they may have been involved in the fraud, and where the money ended up.

"If I had got this information while we were still on the scene, we would have tried to get to the bottom of this," said lawyer and asset tracerWes Voorheis, who was hired to find some of the missing money in 2004.

KPMG insisted it conducted an in-depth review of its files before concluding it had no connection to the sword companies.

"KPMG Canada has thoroughly considered and refuted any connection between KPMG Canada and the sword companies," MarkGelowitz, KPMG's lawyer, said in a recent letter to CBC.

"Unless CBC has additional evidence of KPMG Canada's involvement with the sword companies that it has not shared with KPMG Canada, the proposed allegations are demonstrably unsubstantiated, false and defamatory."

Gelowitzpointed tothe fact that KPMG had hired Ian Binnie, "a retired Justice of the Supreme Court of Canada," to conduct an independent review of its files.

Binnie's review, based on documents and information provided to him by KPMG,concluded that the sword companies along withmore than a dozen other Isle of Man shell companies identified by journalists were not connected to the accounting firm's offshore tax structure.

Binniehas declined to speak directlyto journalists about his report, optinginstead to communicate via email.

KPMG has said the leaked emails that state the accounting firm set up the sword companies are unreliable. The emails were obtained by the International Consortium of Investigative Journalists and emerged after Binnie had written his report. KPMG says their author did not have knowledge of its operations at the timeand that she was "mistaken."

Binnie turned down CBC's request to discuss the leaked emails and whether they might affect the conclusions in his report.

After stating he would speak withKPMG'slegal counsel,BinniesentCBC/Radio-Canada an email:"I have no reason to doubt the due diligence undertaken byKPMG."

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MPs urged to demand the names of Canadians behind offshore tax shelters - CBC.ca

With the Biden administration aiming to expand renewable energy projects along the East Coast, research from the University of New Hampshire (UNH) shows high support from coastal recreation visitors.

Recreation, which accounts for nearly $1.5 billion in annual economic impact for New Hampshire, remains an essentialeconomicsector.

UNH found widespread support, with nearly77% of coastal recreation visitors supporting offshore wind development(OWD) along the New Hampshire Seacoast.

This study takes a closer look at the lingering assumption that offshore wind in the United States might hurt coastal recreation and tourism when in fact, we found the opposite, said Michael Ferguson, assistant professor of recreation management and policy. Our findings suggest that OWD will likely have little impact on coastal recreation and tourism, and in some instances, may even help amplify visitation.

The study, which surveyed visitors at 18 different zones across the Seacoast, including beaches, marinas, boat launches, yacht clubs and angling locations, provided 50% of respondents with a simulation of the proposed development, while the other 50% did not view it.

Findings indicate that there was no impact on support whether or not the respondent viewed the simulation.

Most of these coastal recreation visitors frequented the area, so these are people with strong ties to the N.H. Seacoast, said Ferguson. And, since OWD has had its hurdles gaining traction and acceptance in the United States, our findings suggest that coastal recreation visitors are open and supportive of it and policymakers, natural resource managers, and the OWD industry should recognize coastal recreation and tourism as critical stakeholder sectors.

Despite widespread tourist support, Roger Stephenson, Northeast Regional advocacy director for the Climate & Energy program at the Union of Concerned Scientists, noted that OWD and the fishing industry must understand and accommodate one another in order to be successful.

The devil is in the details, lets talk about that, said Stephenson. There will be people lets call this a surf and turf story. The fishing industry needs to adopt a willing suspension of disbelief. Well need wind turbine operators to understand and work with fishermen. The turf are the people here in the state who will be faced with changes in the grid. There may be new grid related construction.

Stephenson noted that due to climate change, the Rhode Island lobster industry has been kneecapped by ambivalent action on renewable energy.

[Rhode Island] dont have a lobster industry anymore, the waters are too warm. The fishermen are adapting to catching different kinds of fish and more squid, said Stephenson. They have to adapt, the ocean is changing, it has absorbed 90% of the heat from human-induced climate change.

Maine, which is responsible for 90% of the nations lobster yield, has benefited from climate change for the past two decades.

In an interview withThe New York Times,Dave Cousens, former president of the Maine Lobstermens Association outlined climate changes impact on the states lobster industry.

Climate change really helped us for the last 20 years, said Cousens. Climate change is going to kill us, in probably the next 30.

Astudyconducted by the National Oceanic and Atmospheric Administration (NOAA) found that the Gulf of Maine is warming 99.9% faster than the rest of the planets oceans, and will continue to warm at an accelerated rate for the next 80 years.

Stephenson believes the benefits of off-shore wind development far outweigh the potential drawbacks.

I think ecosystems are being harmed much, much more from the impacts of a changing climate than they would be from the infrastructure that comes with offshore wind, said Stephenson.

Tom Burack, former commissioner of the New Hampshire Department of Environmental Services and current attorney and consultant with Sheehan Phinney in Manchester, echoed Stephensons urgency on OWD development.

Its becoming increasingly apparent that to achieve carbon free electricity [in New England] it will be [essential] to develop offshore wind projects, said Burack. The ultimate goal has to be to go completely renewable, but the matter is how long it will take to get there.

New Hampshires State Climate Action Plan developed in 2008-2009by the Climate Change Policy Task Force appointed by then-Gov. John Lynch aims to achieve the greatest feasible reductions in greenhouse gas emissions while also providing the greatest possible long-term economic benefits to New Hampshire, according to the plan.

Developed under Buracks leadership, the plan recommends that New Hampshire reduce its emissions to 80% below 1990 levels by 2050 and achieve a mid-term goal of 20% below 1990 levels by 2025

Currently, the plans mid-term and long-term goals are aspirational , and is not legally binding. In February, the New Hampshire House of Representatives considered proposed legislation to codify the Climate Action Plans goals into law, with a target of net-zero emissions by 2050, but the bill did not advance.

Nevertheless, Burack sees cause for optimism if new renewable sources of electricity can help meet current demand levels while also servicing a transition to electric vehicles and more electric heating of homes and buildings.

The bottom line here is the future is very bright. We have so much to look forward to because we see that[with offshore wind and other renewables]there are ways for us to both address climate change and strengthen our economy, create new jobs and[at the same time continue to]protect[and enjoy]the natural resources here in New Hampshire that we all cherish, said Burack.

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Support grows for offshore wind development on Seacoast - The New Hampshire

Offshore staff

OSLO, Norway The Borr Drilling jackup Norve will move on to a new target in the Dussafu license offshore Gabon, after completing the DHIBM-2 Hibiscus Extension well.

According to operator BW Energy, there were no hydrocarbons in the target Gamba reservoir, with logging results suggesting the Gamba formation is water wet.

The Norve continues drilling operations to intersect secondary targets for the appraisal well in the deeper Dentale formation.

After completing this operation, the rig will drill the DTM-7H production well at the Tortue field, followed by another exploration well on the Hibiscus North prospect.

The partners plan to analyze data from the DHIBM-2 well for integration into the larger Dussafu model in order to refine the exploration prospect inventory.

The DHIBM-1 well and its appraisal side track, drilled in 2019, discovered recoverable reserves in the Hibiscus structure estimated at 46.1 MMbbl.

05/06/2021

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Norve to resume production drilling offshore Gabon - Offshore Oil and Gas Magazine

Offshore staff

MELBOURNE, Australia BHP has produced first oil from the Ruby project offshore Trinidad and Tobago.

Ruby is in the shallow water in block 3(a) within the Greater Angostura field. The development consists of oil and gas production from the Ruby and Delaware reservoirs via five production wells and one gas injector well tied back into existing operated processing facilities.

According to the company, the Ruby project closely aligns with its Petroleum strategy of advancing high return growth opportunities tied back to established infrastructure. At completion, Ruby is expected to have capacity to produce up to 16,000 b/d of oil and 80 MMcf/d of natural gas.

Geraldine Slattery, BHP President Petroleum, said: An ocean bottom node seismic survey acquired by BHP and the block 3(a) partners in 2018, was utilized to illuminate and optimally position the Ruby project development wells.

Drilling and completions activities at Ruby are ongoing, with subsequent wells to be placed into production in 2Q and 3Q 2021. Project completion is expected in 3Q 2021.

The Ruby development is a joint venture between BHP (operator; 68.46% interest) and The National Gas Company of Trinidad and Tobago Ltd. (31.54% interest).

05/05/2021

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BHP brings Ruby onstream offshore Trinidad and Tobago - Offshore Oil and Gas Magazine

Equity markets continue to remain choppy and the yield to maturity (YTM) on debt instruments are unable to keep up with inflation levels (CPI), pegged at 5.52 percent as of March 2021. It is no surprise that many affluent investors are seeking customised investment solutions where they can make relatively stable and stress-free returns. Cue: alternative asset classes.

The umbrella term alternative assets includes everything from professionally managed hedge funds and private equity to speculative options such as art, collectibles, jewellery or even fine wine.

The options we will be exploring are on the structured end of the spectrum. Such alternative assets could be privately or publicly held, offer some sort of diversification from traditional options, have a clear investment mandate and manage volatility well.

REITs and InvITs

Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) are turning out to be lucrative alternatives to debt instruments. These trusts operate in a manner that is similar to how mutual funds run. However, the underlying asset for REITs is real estate instead of stocks or bonds, and infrastructure projects such as roadways, highways, power transmission lines and gas pipelines for InvITs.

Instead of taking exposure to a single asset, REITs allow investors to gain fractional ownership in a bouquet of high-quality rent yielding properties, while InvITs give access to long-term, income generating public utility assets.

The cash flow generated from the investments via leasing/ operational income and interest income is distributed as dividend to investors. While the initial yields range between 6 percent and 8 percent, as rental income and occupancy increase, the prospects can go up to anywhere between 11 percent and 14 percent.

Also read: Why have mutual funds increased exposure to REITs and InvITs?

Alternative Investment Funds (AIFs)

AIFs are privately pooled investment vehicles that do not come under the purview of SEBIs regulations. However, they do need a certification to operate as one. Depending on the investment mandate, AIFs can operate under three broad categories I, II and III.

Category I: Venture Capital funds, SMEs or infrastructure funds, social venture funds (ESG), etc.

Category II: PE Funds, REITs, debt funds or fund of funds.

Category III: Hedge funds or open ended funds that use complex trading strategies.

Category I and II funds have a minimum lock-in of three years, while Category III funds are open-ended, and the taxation rules also differ from one category to another.

AIFs present the opportunity to diversify in non-traditional asset classes or pursue a specific investment strategy. However, the minimum investment threshold of Rs 1 crore per investor makes it a pretty exclusive club to get into. As of date, there are over 500 AIFs registered with SEBI, each with a different investment theme and strategy, with annual returns for some funds being as high as 30 percent.

Offshore investments

The increase in limit for outward remittance to $250,000 (in a financial year) under the Liberalised Remittance Scheme (LRS) gives investors the opportunity to create a diversified international portfolio and hedge domestic volatility with uncorrelated asset classes. They explore everything from direct equity, mutual funds and ETFs to immovable property.

Investments in publicly listed options are possible through various avenues like multi-stock market FinTech platforms and feeder funds of Indian AMCs. Many affluent families also consider an opportunity to set up base in another country as some real estate businesses and even countries offer lucrative investment choices bundled with residency or citizenship. Additionally, this is a viable option for those wanting to send their children to universities abroad.

Attractive returns, transparent investment policies, tax breaks and arbitrage gains on repatriation are some of the reasons that make offshore investments hot.

Also read: Investing lessons from crorepatis: Know what to follow and what to avoid

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Why HNIs are investing more in offshore and alternative assets - Moneycontrol.com

The coronavirus pandemic that has India in its grip has not spared the industry with some 80 workers at Oil & Natural Gas Corporations (ONGC) Heera field operations in the Mumbai High offshore area testing positive in recent days, according to local media.

State-owned giant ONGC has again been hit with outbreaks of the potentially deadly disease among its staff and contractors, following similar outbreaks last June and August.

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Of the total ONGC workers now affected at Heera, around one third are employees and the rest are contractors, reported Money Control. It is not known whether production has been affected at the offshore field.

Positive cases of Covid-19 have reportedly been detected among ONGC-owned jack-up rigs including Sagar Uday and Sagar Ratna.

Meanwhile, Indian drilling contractor Aban Offshore confirmed that for the second time in just a few weeks it has suspended operations with its jack-up Aban IV, owing to outbreak of Covid-19. The rig too had been working for ONGC on its Mumbai High asset offshore Indias west coast.

Only last month the coronavirus forced Aban to suspend work with the jack-up Aban III, which is also on contract with ONGC, although operations on this rig restarted after a hiatus of around 10 days.

The drilling contractor has not revealed how many crew members were affected.

Like many operators, ONGC has adjusted its roster patterns for offshore workers because of the pandemic, stepped up routine testing and imposed quarantine measures in an attempt to curb the spread of Covid-19.

Even so, 2020 saw reported outbreaks of the disease and one fatality among workers on facilities at Mumbai High and its Bassein field.

During last years lockdown, Indias oil demand fell by 1.2 million barrels per day year-on-year in the second quarter, equal to about a 25% decrease, according to consultant Wood Mackenzie.

"Weve not seen anything this severe yet in the current crisis. And while many states and territories have implemented restrictions in movement, without a full nationwide lockdown, we expect the impact on oil demand to be more modest: road traffic oil demand in April 2021 is estimated to be down by about 20% to 25%," said Qiaoling Chen, WoodMac senior analyst, APAC oils & refining research.

"Ironically, it is the scale of the current crisis that is offering some support to oil demand. Responding to such large numbers of infections is resulting in a significant increase in personal mobility and transportation of medical equipment and supplies. Meanwhile, under current restrictions much of Indias economic activity is still permitted, particularly within the industrial sector."

As such, the consultant expects expect demand losses to be concentrated in the second quarer at around 200,000 bpd, with gasoline, diesel and jet fuel combined accounting for most of this contraction.

"Of course, there are significant downside risks to this view, particularly if the duration and extent of the crisis increases," added Chen.

"If lockdown is extended for the entire month of May in those states with the most severe current restrictions, then we could see loss of oil demand for the second quarter of 2021 in the range of 300,000 to 500,000 bpd. Should a nationwide lockdown be imposed then losses will inevitably increase further."

Given the impact of the coronavirus crisis, WoodMac now expects Indias gas market to grow by around 5% in 2021, "noticeably slower than the 8.7% recovery anticipated before the ongoing increase in infections".

India had reported 20.7 million confirmed cases of the coronavirus and 226,000 deaths as of 5 May although the actual numbers could be much higher given the large rural population.

Updated to include comment from consultant Wood Mackenzie.

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Coronavirus strikes again offshore India - Upstream Online