Category Archives: Offshore

Actions taken to ensure the safety of three offshore oil and gas leases near Platform Holly and an update on the Venoco Chapter 11 bankruptcy involving the offshore leases are among the items to be discussed by the State Lands Commission when it meets Thursday, June 22.

The meeting is scheduled to begin at noon in the Jetway Room of the Hyatt Regency, Los Angeles International Airport, 6225 W. Century Blvd., Los Angeles. A live webcast of the meeting will be available at http://www.cal-span.org.

Commissioners are also slated to consider an application from Santa Barbara County Parks Department for a lease of ocean areas to place seasonal swim and channel marker buoys, floats and signs to designate special use areas and a boat launch corridor.

The commission also will discuss passing a resolution opposing the presidential executive order Implementing an America-First Offshore Energy Strategy that establishes a policy encouraging energy exploration and production on the outer continental shelf.

Read more here:

SB County offshore oil leases topic for State Lands Commission - Santa Maria Times (subscription)

MOSCOW Rosneft and its partners plan to invest 480 billion roubles ($8.4 billion) in developing Russia's offshore energy industry in the next five years, part of a bid to boost output from new areas, the Russian oil major told Reuters.

Most Russian oil output comes from western Siberia, where fields are depleting, pushing firms to look for new regions. Sanctions complicate the process, barring Western firms from helping with Arctic offshore, deepwater and shale oil projects.

Russia is producing almost 11 million barrels per day (bpd) of crude, slightly down from its peaks last year as the country has joined OPEC and some other non-OPEC nations in an output cut that runs to March to stabilize global crude prices.

Of the 480 billion roubles allocated for offshore projects by Rosneft and its partners, the Russian company planned to invest 250 billion roubles in Arctic offshore between 2017 and 2021, the state-controlled firm wrote in response to Reuters questions.

"Development of hydrocarbon resources on the continental Arctic shelf is the future of global oil production and one of the key strategic priorities for the company," Rosneft, the world's biggest listed oil company by output, said in an email.

It said the Arctic offshore area was expected to account for between 20 and 30 percent of Russian production by 2050.

Rosneft did not mention which partners would be involved in the investments. It said it had licences for 55 offshore blocks in Russia's Arctic, Far East and southern regions, which are believed to contain oil and gas resources.

Andrey Polishchyuk, an analyst with Raiffeisenbank in Moscow, said the allocated sum was big enough for exploration drilling, though actual production could be years away.

"I would not look at the actual timing of the production launch at the offshore projects, I would rather look at the oil price and feasibility of those projects," he said.

"For now, Rosneft has been engaging in exploration drilling in the Arctic, and this is right as sooner or later those resources will be needed."

He also said Rosneft needed to focus on onshore oilfields, such as East Siberia's Vankor, one of its key production clusters.

The firm has sought tie-ups with several global oil players to develop Russia's offshore regions. But a deal to work in the Arctic Kara Sea with U.S. company Exxon Mobil was suspended in 2014 after the imposition of Western sanctions.

Rosneft said in its email that it planned to return to operations in the Kara Sea in 2019 but did not specify whether it would work alone or with a partner.

The Russian company also has deals for offshore work with Norway's Statoil, Italy's Eni and other firms.

Rosneft, Exxon, Japan's Sakhalin Oil and Gas Development Co Ltd (SODECO) and India's ONGC are partners in the Sakhalin 1 project off Russia's far east coast.

So far, Russia's sole Arctic offshore oilfield is Prirazlomnoye in the Pechora Sea operated by Gazprom Neft, where production is gradually rising from about 40,000 bpd last year.

Rosneft also said it planned preparation work next year at the Wild Orchid gas condensate field in Vietnam at Block 06.1. It did not say when production would start.

(Writing by Katya Golubkova; additional reporting by Vladimir Soldatkin; Editing by Edmund Blair and Dale Hudson)

TORONTO Freeport-McMoRan Inc , the world's biggest publicly traded copper miner, and China Molybdenum Co Ltd (CMOC) have agreed to terminate discussions on CMOC's acquisition of Freeport's cobalt assets, Freeport said on Wednesday.

Saudi Aramco's planned 2018 public share offering is being slowed down by a divide between Saudi Arabia's ruling family and executives of the kingdom's state oil company over where to list its shares, the Wall Street Journal reported on Wednesday.

See more here:

Exclusive: Rosneft, partners to invest over $8 billion in Russia's offshore energy sector - Reuters

Europes oil majors are eyeing opportunities in offshore wind are you?

Renewable energy is reshaping global energy markets. For the oil majors, this poses a threat to legacy oil and gas operations, but is also an opportunity to diversify and future-proof portfolios, as a recent report from Wood Mackenzie highlighted.

As Wood Mackenzie notes, the growth opportunity in renewables cannot be ignored. It forecasts average annual growth rates of 6 per cent for wind and 11 per cent for solar over the next 20 years. Renewables will have captured a much bigger slice of the global energy market by the middle of the next decade.

Wood Mackenzie believes that the value proposition of offshore wind is competitive with some upstream investments. Returns rank favourably with many of the majors pre-sanction long-life developments, the most comparable upstream asset class.

Wood Mackenzie believes that offshore wind may offer them the most attractive route to organic growth in the near-term. It offers scale and scalability on a par with upstream mega-projects. It expects capital to be diverted from upstream to build positions in wind and solar.

Growth in offshore wind is something the majors cannot afford to ignore as they plan for 2035 and beyond. They need to diversify and can bring their expertise in the value chain to help balance portfolios and hedge against future erosion of the upstream value proposition and the anticipated hardening of investor sentiment towards carbon.

That would be one of the reasons why, as I reported in out sister magazine, Offshore Wind Journal, that Shell, which recently returned to the offshore wind market after a long absence, says it would like to see large-scale, integrated development of offshore wind projects of up to 10 gigawatts. If that seems unlikely at the moment, dont forget that offshore wind industry leader Dong Energy evolved into a pure-play offshore wind outfit from what was once an oil and gas company.

Shell is looking to grow its footprint in wind in the coming years and is proposing that the next phase of offshore wind development be thought of as a stepping stone, a de-risking exercise, towards a much bigger offshore wind industry that operates at the scale of the potential resource. Its belief is that industrial development at scale would lower cost, create value across the supply chain, and stimulate economic growth. Offshore wind has already comfortably exceeded cost reduction targets. The next phase of its development could see oil companies stepping in, with capital and expertise, prompting development of mega projects that will dwarf existing windfarms. The European majors are leading the way, shaping strategies to establish a presence in this fast-growing market.

Read the original post:

Big oil's ambition could transform offshore wind - OSJ Magazine

SINGAPORE, June 15, 2017 /PRNewswire/ -- On Jun 7th, 2017, Tunghsu Group successfully completed its US$350million offshore USD bond offering. Goldman Sachs acted as sole global coordinator and sole bookrunner in the transaction. Through site visit in Wuhu, Anhui, and roadshows in Hong Kong, Singapore and London, the Company had comprehensive communications with 100 investors via various forms including site visits, face-to-face meetings and luncheons, and demonstrated to global investors outstanding corporate image and rare investment value as a Chinese private-owned enterprise. Despite the fact that international financial market was impacted by political events including the terrorist attack in UK and the UK general election during the roadshows, with the assistance from Goldman Sachs, Tunghsu Group still seized the favorable issuance window and was well-recognized by 87 high-quality and well-diversified investors from 8 regions, including global blue-chip funds, sovereign wealth funds, large Asian bond funds and Chinese institutions etc.

The offshore USD bond issuance by Tunghsu Group has created multiple "highlights" in the market, including largest debut USD bond issuance from a group holding company in Asia Pacific high yield space, lowest coupon achieved by a debut offering by a group holding company in Asia Pacific high yield space, and first privately-owned company in the optoelectronic and high-end equipment sectors to ever issue a USD bond in Asia Pacific credit capital markets.

Excerpt from:

Tunghsu Group Successfully Consummated its Inaugural Offshore USD Bond Offering - PR Newswire (press release)

Singapore and Hong Kong will attract wealth from abroad at more than twice the pace of Switzerland over the next four years as Asia's economic expansion draws cash from millionaires, Boston Consulting Group (BCG) predicts.

Perceptions that Singapore is safe and stable will also help to bring money to the South-east Asian nation, according to BCG, which sees offshore assets there rising at a compound annual average rate of 8 per cent through 2021.

Hong Kong's will climb 7 per cent, more than Switzerland's 3 per cent, the consulting firm's global wealth report showed yesterday.

Switzerland remains the world's No. 1 offshore wealth management hub with US$2.4 trillion (S$3.3 trillion) in assets, twice as much as Singapore's, the report showed.

For decades, wealth hubs including Switzerland and Singapore have benefited from political and economic instability elsewhere that prompted rich people to move their money abroad in search of safety and investment returns.

Asia's biggest wealth centres are attracting clients from within the region itself who are becoming richer in tandem with its rising economic output.

"Relative to Switzerland, Hong Kong and Singapore are growing faster because of the economic growth from China to India," said Ms Mariam Jaafar, a Singapore- based BCG partner and one of the authors of the report. "In clients' minds, Singapore is more independent and secure. The government is also very supportive of the wealth management industry."

China ranks above Taiwan, Hong Kong and Indonesia as the largest source of offshore wealth in the Asia-Pacific region, according to BCG. It contributedalmost US$12 billion (S$16.5 billion) in revenue pools for private banks last year, the most in the region, the report showed.

Still, China's restrictions on investment outflows may slow some of the movement of assets from the nation, Ms Mariam Jaafar said. China ranks above Taiwan, Hong Kong and Indonesia as the largest source of offshore wealth in the Asia-Pacific region, according to BCG. It contributedalmost US$12 billion in revenue pools for private banks last year, the most in the region, the firm's report showed.

Wealthy people are keeping money abroad even as the authorities worldwide clamp down on hidden offshore assets. Governments' efforts to tighten tax regulation or provide amnesties have yet to prompt the rich to repatriate their undeclared assets in a material way, BCG said."Because of political instability, offshore solutions remain attractive for wealthy families," the Boston-based firm said.

Banks from UBS to Credit Suisse and DBS Group have been adding wealth management staff to service global clients as assets grow. Offshore assets in private banking hubs worldwide swelled almost 4 per cent last year to US$10.3 trillion, according to BCG.

BLOOMBERG

Originally posted here:

Asian wealth hubs drawing offshore assets at faster clip - The Straits Times

Mary Ann Bragg @MaryAnnBraggCCT

NORTH KINGSTOWN, R.I. With the country's first offshore wind farm up and running for the past six months, labor and environmental advocates are looking toward future collaborations on even larger projects.

Many years of hard work ensured that these were good quality union jobs that paid good solid wages, said Kimberly Glas, executive director of BlueGreen Alliance, a coalition of labor unions and environmentalists, as a chartered boat neared the Block Island Wind Farm on Tuesday.

As more offshore wind energy projects are developed off New England and New York more grassroots effort is needed, Glas said.

I ask folks to start calling their legislators and start showing up at city council meetings to figure out ways to ensure that these are quality jobs, she said.

The nonprofit National Wildlife Federation sponsored the boat tour of the 30-megawatt, five-turbine wind farm installed by Deepwater Wind, one of three offshore wind energy companies with plans to build more wind turbines on leased land south of the Islands. The federation, with 6 million members, wants to protect wildlife from the effects of climate change through clean energy options such as wind.

This kind of (boat) trip allows our company to talk about how offshore wind can be built and has been built in the United States," said Matthew Morrissey, Massachusetts vice-president for Deepwater Wind.

The partners in Block Island project were environmental groups, organized labor, government regulators, fishing groups and others, Morrissey said.

Its an opportunity to come together and see that you can actually build a new economy in America while protecting the environment, he said about the tour.

Among the 115 people on board the fast ferry Ava Pearl were labor leaders representing union members such as welders, painters and crane operators who helped build the wind farm.

Construction of the wind farm created 300 local jobs, according to Deepwater Wind.

They did sign an agreement to do it all union, said Scott Duhamel of the Rhode Island Building and Construction Trades Council.

The political strength of unions in Rhode Island, with the support of congressional and state legislators, along with union representatives showing up at and speaking at public meetings, all helped seal the deal, Duhamel said.

I have to admit they could do it without us but they didnt, he said.

Deepwater Wind could have used non-union labor, Duhamel said.

They did it with us, he said. We feel our people are better trained.

The typical wages of the union workers who worked on the wind farm ranged from $28 to $40 per hour plus benefits, union representatives said.

Were thankful to Deepwater for having trust not only in IBEW but the building trades in general, said Michael Monahan, a regional vice-president of International Brotherhood of Electrical Workers.

While the construction of a wind farm employs many people in the short term, the long-term maintenance of the equipment creates more jobs, said Monahan and Rhode Island Department of Labor and Training Director Scott Jensen.

Were doing the commute that thousands and thousands of people are going to be doing over the next any number of years, Jensen said as the boat passed alongside the towering turbines.

Monahan and others said they are hoping for more union contracts in upcoming offshore wind energy projects.

At the end of June, there's an opportunity to bid on power contracts with three electric distribution companies in Massachusetts, which could attract Deepwater Wind, Bay State Wind and Vineyard Wind, all of which have signed leases for federal land south of the Islands. Bay State and Vineyard Wind officials said recently that they could start construction in the early 2020s.

Follow Mary Ann Bragg on Twitter: @maryannbraggCCT.

Go here to read the rest:

Labor, environmentalists praise offshore wind collaboration - Cape Cod Times (subscription)

Soccer superstar Cristiano Ronaldo has been accused of failing to pay 14.7 million euros ($16.5 million) in taxes.

The most important business stories of the day.

Get Bloomberg's daily newsletter.

The prosecutors office in Madrid filed a lawsuit that alleges that the 31-year-old knowingly used offshore accounts to hide income from his image-rights payments. The charges come months after Spanish newspaper El Mundo published leaked documents revealing details of the offshore holdings of several soccer players, including Ronaldo. The tax evasion relates to a three-year period starting in 2011.

A spokeswoman for Ronaldos management company said there wouldnt be an immediate comment.

Ronaldo,who led Real Madrid to win both the Spanish league and European Cup, is just the latest high profile soccer player to face prosecution over tax affairs. Earlier this month a court rejected Lionel Messis appeal over a tax fraud conviction. Messis Barcelona teammate Neymar is also being prosecuted in Spain over his transfer from Brazilian team Santos in 2013.

The management team for the four-time world soccer player of the year responded earlier this year to the tax allegations against him by releasing his 2015 tax declaration. It revealed he held assets outside of Spain worth more than 203 million euros.

This communication, which was not required by law, constitutes irrefutable proof that Cristiano Ronaldo and his representatives are in good faith, and cooperate with the authorities in a spirit of transparency and compliance with legality, the agency Gestifute said.

Ronaldo is the best paid athlete in the world, according to a report last week by Forbes magazine, which estimated that he earned $93 million over the past 12 months. The Portuguese forward scored 42 goals in all competitions this season, including two in the Champions League final as Real became the first team to retain the title.

The Madrid prosecutor said in his 2014 tax return Ronaldo claimed to have recorded revenue from Spanish sources between 2011 and 2013 of 11.5 million euros, though in reality that number was almost 43 million euros.

In January Ronaldo cited the pressure of the scrutiny when he was awarded the prestigious Balon DOr award for soccers best player. There are a lot of innocent people in jail and I feel a bit like that, he said. You know you didnt do anything wrong, and they say you did something wrong.

Read this article:

Cristiano Ronaldo Accused of $16.5 Million Tax Evasion - Bloomberg

New York Times

Australia to Pay $53 Million Settlement to Detainees Held Offshore New York Times SYDNEY, Australia Australia has tentatively agreed to a $53 million settlement in a class-action lawsuit filed on behalf of asylum seekers housed in one of the country's contentious offshore detention centers, lawyers for the detainees said on ... Class Action is Nail in The Coffin For Offshore DetentionPro Bono Australia all 57 news articles »

See the original post here:

Australia to Pay $53 Million Settlement to Detainees Held Offshore - New York Times

I love the ocean. Its enormity inspires me, impresses me, moves me. Its future worries me. As the famous Oceanographer Sylvia Earle said, With every drop of water you drink, every breath you take, you're connected to the sea. No matter where on Earth you live. Whether we live in the deserts of Nevada or the beaches of Florida, we are all connected to the oceans and for this reason, we must all do our part to take care of the ocean.

Every year, on June 8th the world marks International Oceans Day, and this year it served as an important reminder of the risks that our oceans and all that depends on them face. In April, President Trump took the first troubling step towards opening the Arctic and Atlantic, and potentially the Pacific, to expanded offshore oil drilling and attempted to undo the much-needed permanent protections currently in place.

Besides being another move to enrich huge, international oil companies that pollute our country and worsen climate change, expanding drilling not far from our coastlines it too high risk.

Offshore drilling is a dirty and dangerous practice that pollutes the ocean and puts our coastal communities and sensitive marine ecosystems at huge risk of the harms from a catastrophic oil spill. But the limits dont stop at the coasts. Even for those living inland, these impacts affect us all. Covering 71% of our planet, the ocean impacts everything from our food to our water, air and climate.

Seven years ago, the U.S. suffered the worst drilling disaster in our history. The BP Deepwater Horizon explosion and resulting massive oil spill killed 11 people and leaked 3.19 million barrels of oil and gas into the ocean about 42 miles off the coast of Louisiana for 87 days.

Despite this and other disasters, Trump wants to sell off more of our publicly managed coastal areas to the oil industry and the administration has begun taking steps to make this a reality. His executive order proposes to open the Arctic and Atlantic to new offshore oil drilling, seeks to remove important security measures for oil extraction operations, and attempts to remove protections designed to preserve our most valuable, ecologically rich ocean resources. The Department of the Interior has already announced plans to allowseismic blastingoff the Atlantic coasta dangerous precursor to drilling. These loud underwater explosions harm marine life and disrupt sensitive ecosystems and the activities surrounding these like fishing, recreation and tourism.

Communities across the country have already declared their opposition to expanded offshore drilling and are sending a message to our elected leaders to keep dirty, dangerous oil drilling, including the seismic exploration for oil, off our coasts and out of the ocean.

Latino, African American, Asian American, indigenous communities have expressed strong opposition to turning these public waters over to private companies, recognizing that expanded Atlantic and Arctic drilling leaves us all vulnerable to disasters that pose an unacceptable risk to our oceans, beaches, coastal communities, marine life, and to the livelihood of the millions of Americans who depend on healthy oceans for fishing, recreation, and tourism dollars.

Communities in the United States and around the world are directly suffering the impacts of climate change on their health, security, and way of life, and want action. Our communities cannot wait. Not only are we more likely to experience asthma, sea-level rise, and other negative health impacts due to the pollution driven by carbon and other fossil-fuels, millions in our communities rely on healthy oceans to sustain our economies and feed our families. Our future depends on clean renewable energy, not sacrificing our oceans to drill for oil that harms our families health and pollutes our world.

Over the next year, the Department of the Interior and Congress will consider options for expanding offshore drilling to regions including the Mid- and South Atlantic, Floridas Gulf Coast, the CaliforniaCoast, and the Arctic Ocean. This misguided move ignores the fact that clean energy is now the fastest-growing and cheapest source of power in the country. Far more Americans want to preserve our oceans than sell them to oil companies to exploit.

The millions of Americans who live in these areas know whats at stake. Whether we live in Colorado or Virginia, Alaska or Houston, Americans know that reckless government actions like these, which threaten our public landsplaces that belong to all of usmust be stopped.

Please visit ourcampaign pageand tell Secretary Zinke and President Trump to keep drilling off our coasts and protect our oceans and our world.

Director of Partner Engagement

See the article here:

Oil & Oceans Don't Mix: Say No to New Offshore Drilling - Natural Resources Defense Council

Nova Scotia's offshore natural gas industry is about to take another hit, as Encana Corp. prepares to close its Deep Panukeproject.

The Calgary-based energy producer published an expression of interest last month seeking companies to plug its fivesubseawells. The request for bids closed June 8.

Encanaspokesman Doug Hock said there's no set timeline for the project's closure, but the company aims to have the plugging work completed between 2019 and 2021.

"We are in the latter phases of the life of the project but... we're operating on a seasonal basis to get the most value from the project," he said.

The Deep Panuke project is located about 250 kilometres southeast of Halifax.

WithExxonMobil'sSable Offshore Energy Project also winding down, the closures signal change for the province's natural gas sector.

Sandy MacMullin, the executive director of the provincial Energy Department's petroleum branch, said the two closures don't necessarily mean the sector is dead in the water.

The Deep Panuke gas field is about 250 kilometres southeast of Halifax on the Scotia shelf. (The Canadian Press)

"I think it's fair to say that right now we're probably looking at a windup of gas production in the short term," he said.

"That being said, it'snot absolute becausethere are always companies that are looking at offshore assets and looking where they can develop some undeveloped resources."

The Deep Panuke project has been plagued by problems since long before the gas began flowing. Originally, production was supposed to start in 2005, but it didn't begin until 2013.

In 2003, Encana asked for a "time out" from the regulatory approval process because the company was no longer sure there was enough natural gas to make the project worthwhile. Crews had hit four dry wells over the previous two years. But later in 2003, the company drilled two successful wells and decided to go ahead with the project after all.

The Acergy Discovery hit the Deep Panuke natural gas platform in 2011. (CBC)

By October 2007, Deep Panuke had passed all the provincial and federal regulation requirements and the company set a goal of beginning production by 2010.

In 2011, a ship hit the platform. The start date was repeatedly delayed first to 2011, then to 2012, then to 2013. In January 2013, a fire broke out in an electrical cabinet in the emergency switchboard room on the platform, and another fire hit the project in 2014.

Production finally started in late 2013, and Encana reaped huge profits from the project in early in 2014, thanks in part to high gas prices.

But by November 2014, Encana announced a planned shutdown to deal with water that was seeping into the gas reserve. By March 2015, it was announced that the project would yield at least 50 per cent less gas than originally thought, thanks to the water in the reservoir. Since then, it has only been operating seasonally.

Hock admitsthat Deep Panuke has encountered challenges, including the water problem. Asked whether production met expectations, he simply said, "projects evolve over time."

So, was the project worthwhile for Encana?

"It's generated cash flow for us, so it certainly has provided some value for us and will continue on in that manner," Hock said.

Encana has encountered many troubles with the Deep Panuke project since its inception. (The Canadian Press)

MacMullinis a bit more blunt.

"Sometimes you end up with nice surprises.Sometimes you end up with asurpriseyou weren't hoping for," he said.

"The test results from the wells were very, very positive. They had flowed a lot of gas without having to break too much sweat but there was always an underlying fear that pardon the pun, but water that sits under that gas column would potentially break through into the wells and end up with premature decline in gas production.

"It's fair to say it wasn'tunexpected, but yeah, it's disappointing."

ExxonMobilexpects a rig to arrive off Nova Scotia in late 2017 or early 2018 to begin plugging the wells at the Sable Offshore Energy Project, which has been producing gas since 1999 just off Sable Island.Production will continue while that work gets underway. ExxonMobil aims to start removingthe offshore facilities in 2020, a company spokesman said.

The Sable Offshore Energy Project has generated almost $2 billion in royalties for the province of Nova Scotia over the project's lifespan. (Canada-Nova Scotia Offshore Petroleum Board)

MacMullin said the Sable Projectwas a success on several fronts, as it helped develop the market for natural gas in Atlantic Canada, showed that the area can produce gas for a lengthy period of time, generated royalties for the province of about $2 billion over its lifespan, andwas "a really good employer."

Between Deep Panuke and the Sable Project, the province has received $149 million in revenues since 2010, including projected revenues for 2017-18.

Once gas stops flowing from Deep Panuke and the Sable Project, consumers could see a bump in prices.

Ray Ritcey, the CEO of theMaritimes Energy Association, anot-for-profit organization that representsbusinesses that provide goods and services to the energy industry, saidthat increase would likely be greater than 10 per cent.

"At some point if you do not replace the gas supply with locally produced gas supply, you're going to be replacing it with higher-priced gas supply.

Consumers of natural gas may see a price increase once Deep Panuke and the Sable Project are closed down.

"So for consumers of natural gas in the province, they are going to incur a higher cost for the product mainly because it has to move here from another location."

MacMullin agrees that the price will likely rise.

"It will affect it. Whether it's significant or not remains to be seen," he said. "The issue is going to be, is the cost of natural gas going to be so high thatit's going to cause customers to switch to a different fuel?"

Go here to read the rest:

Encana prepares to close Deep Panuke offshore gas project - CBC.ca