Category Archives: Offshore

MOSCOW Some of Russia's super-rich have given up residency to escape a 2014 law requiring them to disclose offshore assets, wealthy businessmen told Reuters, a practice that could keep billions of dollars hidden from Moscow's tax authorities.

Interviews with more than a dozen people familiar with the practice -- including prominent tycoons, wealth managers, lawyers and current and former officials -- suggest a swathe of Russia's national wealth is now in the hands of a new class of semi-exiled oligarchs, who keep bases in their homeland but escape its tax net by spending fewer than 183 days a year there.

"You can scold them, call them unpatriotic, but the fact remains: the budget has lost out," Vladimir Potanin, one of Russia's ten richest men, told Reuters about the practice.

Potanin, co-owner of Arctic mining giant Norilsk Nickel, said he has remained a tax resident of Russia but watched as many of his peers moved out in response to the 2014 law.

Two other people on Forbes Magazine's list of the 100 richest Russians told Reuters they had given up Russian residency to escape the law, speaking on condition that they not be identified to avoid hurting their Russian business dealings.

Two more declined to say whether they had done so, but, like Potanin, said they also knew many fellow oligarchs who had.

No official data has been made public on how many people have given up Russian residency to escape the law, or the overall size of the assets they have shielded from Russian tax jurisdiction through the practice.

But Russian law firm Egorov, Puginsky, Afanasiev and Partners said it had conducted a survey of around 300 wealthy Russians and found as many as 40 percent of those with offshore companies had given up residency in Russia. Another 9 percent transferred the assets to relatives who are not tax residents.

The law, popularly known in Russia as "de-offshorizatsia", requires all Russian taxpayers to declare their interest in offshore companies they control, on which they can then become liable to paying tax in Russia. It is similar to the standard practice in most western countries, but represented a change for Russia, where previously taxpayers could hold interests in companies abroad without declaring them.

The change was a high-profile initiative of President Vladimir Putin, widely interpreted as a way to force Russians to do their patriotic duty by investing in their homeland. While there is no suggestion that it is illegal to avoid the law's requirements by giving up Russian residency, those who have done so told Reuters they accepted they were thwarting the law's aim.

In response to Reuters questions, Russia's economy ministry said the de-offshorization law was in line with global practice.

It said improving the investment climate was a government priority, with positive results, as demonstrated by Russia's improved ranking in the World Bank's ease of Doing Business index. Russia is now ranked 40th, up from 92nd in 2014.

The Kremlin declined to comment. The finance ministry did not reply to a request for comment by the time of publication. In response to a list of questions, the tax service said the number of tax cases it was pursuing against Russians with foreign tax exposure was rising, but it did not directly address the questions.

The impact of tax exiles giving up Russian residency is heightened because so much of the country's wealth is concentrated in the hands of relatively few people. According to Forbes, the 200 richest Russians have $460 billion in wealth, equivalent to nearly a third of Russia's nominal GDP.

"People are forced to decide: do they keep their business in Russia or become citizens of the world and take their assets offshore," said Konstantin Korishchenko, a former deputy head of the Russian central bank.

A former official who has kept close ties to the Kremlin and talks often to Russian oligarchs said that by his estimate a third of Russia's top 500 businesspeople had left the country over the past three years, in part because of the new law.

"IT'S IMPOSSIBLE NOW"

Some familiar with the practice said wealthy Russians were giving up their residency because they feared that disclosing their offshore companies would open them to the risk of the information being leaked to business rivals, or even abused by corrupt officials for spurious prosecutions or blackmail.

"The first thing that entrepreneurs say is that there is a big sense of mistrust: mistrust toward each other, mistrust towards the state," said Andrei Sharonov, dean of the Moscow School of Management, Skolkovo, which offers an MBA program.

Sitting on the leather sofa in his office in one of Moscow's most prestigious commercial addresses, one of the tycoons who gave up his residency told Reuters he made the move reluctantly.

Leaving his homeland for most of the year was a wrench. But because of the investment climate in Russia, he and his partners were looking for buyers for their Russian businesses and focusing instead on international holdings, he said.

"I would stay here and would continue paying taxes here if it was not for this law," the businessman told Reuters. "It's impossible now."

He now spends his time mostly in a European Union country where his family has settled some time ago, or traveling to meetings around the world. Such a lifestyle, he said, has become common among his peers since the law was passed: "Lots of people lived here and paid tax. Now they don't."

Another Russian businessman, a billionaire who also gave up his Russian residency over the de-offshorization law, told Reuters he and fellow tycoons were worried that it could be followed by further measures, tougher on businesspeople.

After three years of deep recession, Russia's economy is stabilizing but has not yet returned to the steady growth needed to begin making up lost ground.

The de-offshorization law is one of several factors discouraging investment in Russia, said Chris Weafer a senior partner at Russia-focussed consultancy Macro-Advisory Ltd.

"Its completely unrealistic to talk about raising growth rates to 4 percent, as Russian officials hope, without a sharp increase in inward investment," he said.

Businesspeople who spoke to Reuters said complying with the new rules meant they incurred hefty fees to lawyers and accountants to audit their offshore assets and prepare tax returns, they had to deal with a mountain of paperwork, and at the end risked having to paying more tax.

Several said privacy was also an issue, in a country where vendors at flea markets sell CDs purported to contain leaked information from the tax authorities' databases.

In the law firm's survey, almost two third of respondents said that they or their clients had encountered problems with leaks of confidential information from state services.

Ultimately, people do not trust the authorities to keep their information safe, said the businessman on the Forbes list of 100 richest Russians who did not reveal whether he had given up his residency.

"No one wants to show the money."

(Additional reporting by Darya Korsunskaya, Oksana Kobzeva, Svetlana Reiter, Anastasia Lyrchikova, Alexander Winning, Andrey Ostroukh, Kira Zavyalova and Olga Sichkar; editing by Peter Graff)

The U.S. Labor Department on Wednesday said it was rescinding the Obama administration's standard for determining when companies are "joint employers" of contract and franchise workers, in the agency's first major shift in labor policy under President Donald Trump.

Shares of gunshot-detection company ShotSpotter Inc , which is backed by walkie-talkie maker Motorola Solutions , rose as much as 21 percent in their market debut on Wednesday.

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Declare offshore wealth? Russia tycoons would rather ship themselves off shore - Reuters

Exclusive Consultancy goliath Ernst & Young is planning to offshore hundreds of IT jobs to India in its latest wave of outsourcing.

An email from EY, seen by The Register, told staff it has decided to work with India-based Tata Consultancy Services (TCS) to deliver its application support.

It said: "We recognise this is a big change that affects our people and we have sought to minimise the impact on them. We have already notified the people impacted by this decision and we will support them during this transition.

"The majority will be redeployed within EY or offered a role at TCS to support the EY account. We are also working through the notification process for incumbent suppliers."

According to one insider, almost all the roles in the 300-strong in-house app support and developer team have been earmarked for offshoring. The team spans EMEA and the US, and works with IBM, SAP and Microsoft to deliver tax, audit and fraud investigation tools for EY globally.

This is the third round of outsourcing at EY since 2015. The company has already outsourced its help desk function to TCS, and its more in-depth support services to India and Buenos Aires. The moves will affect both the US and UK.

Before the outsourcing process started in 2015, there were around 600 IT people in the UK. By the time it ends that number is expected to be fewer than 100, said the insider.

"Outsourcing was always in the background as a cost pressure, especially as EY was advising other companies to do it," he added. "In 2012 they brought in a global CIO from Goldman Sachs who parachuted in her own people in the US firm and ripped the heart out of a global organisation, experienced people in Germany and UK were sidelined and managed out and then the cost cutting started.

"That CIO, Mo Osborne, is now leaving end of June and a chunk of her appointees are going too."

An EY spokesman said the outfit regularly reviews its processes and systems. "Following our recent, independent IT strategy review, we are in the process of transforming how we deliver IT services to provide market differentiation for our clients.

"We are still finalising the recommendations from the IT strategy review and once this has been completed we will then be able to assess the potential impact on our people."

A number of large organisations have shown renewed interest in offshoring large swathes of their workforce to India. In December, Capita said it will axe roughly 2,250 staff, which includes sending more jobs to the subcontinent.

British Airways has also offshored a chunk of its workforce to TCS.

See the original post here:

Consultancy titan EY to offshore hundreds of jobs to India - The Register

MOSCOW Some of Russia's super-rich have given up residency to escape a 2014 law requiring them to disclose offshore assets, wealthy businessmen told Reuters, a practice that could keep billions of dollars hidden from Moscow's tax authorities.

Interviews with more than a dozen people familiar with the practice -- including prominent tycoons, wealth managers, lawyers and current and former officials -- suggest a swathe of Russia's national wealth is now in the hands of a new class of semi-exiled oligarchs, who keep bases in their homeland but escape its tax net by spending fewer than 183 days a year there.

"You can scold them, call them unpatriotic, but the fact remains: the budget has lost out," Vladimir Potanin, one of Russia's ten richest men, told Reuters about the practice.

Potanin, co-owner of Arctic mining giant Norilsk Nickel, said he has remained a tax resident of Russia but watched as many of his peers moved out in response to the 2014 law.

Two other people on Forbes Magazine's list of the 100 richest Russians told Reuters they had given up Russian residency to escape the law, speaking on condition that they not be identified to avoid hurting their Russian business dealings.

Two more declined to say whether they had done so, but, like Potanin, said they also knew many fellow oligarchs who had.

No official data has been made public on how many people have given up Russian residency to escape the law, or the overall size of the assets they have shielded from Russian tax jurisdiction through the practice.

But Russian law firm Egorov, Puginsky, Afanasiev and Partners said it had conducted a survey of around 300 wealthy Russians and found as many as 40 percent of those with offshore companies had given up residency in Russia. Another 9 percent transferred the assets to relatives who are not tax residents.

The law, popularly known in Russia as "de-offshorizatsia", requires all Russian taxpayers to declare their interest in offshore companies they control, on which they can then become liable to paying tax in Russia. It is similar to the standard practice in most western countries, but represented a change for Russia, where previously taxpayers could hold interests in companies abroad without declaring them.

The change was a high-profile initiative of President Vladimir Putin, widely interpreted as a way to force Russians to do their patriotic duty by investing in their homeland. While there is no suggestion that it is illegal to avoid the law's requirements by giving up Russian residency, those who have done so told Reuters they accepted they were thwarting the law's aim.

In response to Reuters questions, Russia's economy ministry said the de-offshorization law was in line with global practice.

It said improving the investment climate was a government priority, with positive results, as demonstrated by Russia's improved ranking in the World Bank's ease of Doing Business index. Russia is now ranked 40th, up from 92nd in 2014.

The Kremlin declined to comment. The finance ministry did not reply to a request for comment by the time of publication. In response to a list of questions, the tax service said the number of tax cases it was pursuing against Russians with foreign tax exposure was rising, but it did not directly address the questions.

The impact of tax exiles giving up Russian residency is heightened because so much of the country's wealth is concentrated in the hands of relatively few people. According to Forbes, the 200 richest Russians have $460 billion in wealth, equivalent to nearly a third of Russia's nominal GDP.

"People are forced to decide: do they keep their business in Russia or become citizens of the world and take their assets offshore," said Konstantin Korishchenko, a former deputy head of the Russian central bank.

A former official who has kept close ties to the Kremlin and talks often to Russian oligarchs said that by his estimate a third of Russia's top 500 businesspeople had left the country over the past three years, in part because of the new law.

"IT'S IMPOSSIBLE NOW"

Some familiar with the practice said wealthy Russians were giving up their residency because they feared that disclosing their offshore companies would open them to the risk of the information being leaked to business rivals, or even abused by corrupt officials for spurious prosecutions or blackmail.

"The first thing that entrepreneurs say is that there is a big sense of mistrust: mistrust toward each other, mistrust towards the state," said Andrei Sharonov, dean of the Moscow School of Management, Skolkovo, which offers an MBA program.

Sitting on the leather sofa in his office in one of Moscow's most prestigious commercial addresses, one of the tycoons who gave up his residency told Reuters he made the move reluctantly.

Leaving his homeland for most of the year was a wrench. But because of the investment climate in Russia, he and his partners were looking for buyers for their Russian businesses and focusing instead on international holdings, he said.

"I would stay here and would continue paying taxes here if it was not for this law," the businessman told Reuters. "It's impossible now."

He now spends his time mostly in a European Union country where his family has settled some time ago, or traveling to meetings around the world. Such a lifestyle, he said, has become common among his peers since the law was passed: "Lots of people lived here and paid tax. Now they don't."

Another Russian businessman, a billionaire who also gave up his Russian residency over the de-offshorization law, told Reuters he and fellow tycoons were worried that it could be followed by further measures, tougher on businesspeople.

After three years of deep recession, Russia's economy is stabilizing but has not yet returned to the steady growth needed to begin making up lost ground.

The de-offshorization law is one of several factors discouraging investment in Russia, said Chris Weafer a senior partner at Russia-focussed consultancy Macro-Advisory Ltd.

"Its completely unrealistic to talk about raising growth rates to 4 percent, as Russian officials hope, without a sharp increase in inward investment," he said.

Businesspeople who spoke to Reuters said complying with the new rules meant they incurred hefty fees to lawyers and accountants to audit their offshore assets and prepare tax returns, they had to deal with a mountain of paperwork, and at the end risked having to paying more tax.

Several said privacy was also an issue, in a country where vendors at flea markets sell CDs purported to contain leaked information from the tax authorities' databases.

In the law firm's survey, almost two third of respondents said that they or their clients had encountered problems with leaks of confidential information from state services.

Ultimately, people do not trust the authorities to keep their information safe, said the businessman on the Forbes list of 100 richest Russians who did not reveal whether he had given up his residency.

"No one wants to show the money."

(Additional reporting by Darya Korsunskaya, Oksana Kobzeva, Svetlana Reiter, Anastasia Lyrchikova, Alexander Winning, Andrey Ostroukh, Kira Zavyalova and Olga Sichkar; editing by Peter Graff)

LONDON/NEW YORK, Jun 6 Global investors are distinguishing between the UK and the rest of Europe as part of a fundamental reassessment of what investing in the region means, reflecting growing enthusiasm for Europe's broad economic prospects and nervousness about thorny and possibly protracted Brexit negotiations.

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Declare offshore wealth? Russia tycoons would rather ship themselves off s... - Reuters

The Commerce Department is proposing to grant five permits to survey the Atlantic coastline's seabed, a move that activists oppose because they see it as part of President Trump's plan to expand offshore drilling.

The proposed permits, filed on Monday for publication in the Federal Register, would allow companies to use high-powered air guns to conduct seismic survey activity. But environmental groups say the survey technique is harmful to marine mammals and other sea life and should not be used.

"The threats of seismic airgun blasting alone are bad enough, but it's also the first step to offshore drilling, which could lead to the industrialization of coastal communities and the risk of another BP Deepwater Horizon-like disaster," said the large conservation group Oceana. "The time to protect our coast is now."

The Commerce Department, however, is warning that any comments submitted to the agency in opposition to, or suport of, oil and natural gas drilling will not be accepted. The agency is accepting comments on its proposed permit authorization for 30 days.

"Comments indicating general support for or opposition to hydrocarbon exploration or any comments relating to hydrocarbon development (e.g., leasing, drilling) are not relevant to this request for comments and will not be considered," the notice read.

President Trump in an April executive order began the process of reversing the Obama administration's ban on drilling off the Atlantic Coast. The proposed survey activity is the first step in opening up oil and natural gas drilling on the East Coast by assessing what lies beneath the seabed.

Although the survey actions may help in planning future drilling operations, the action being taken does not allow any actual drilling to take place. That approval is still being worked out by the Interior Department.

The Commerce Department's fisheries division issues the permits, which allow companies to incidentally harm whales, seals and other aquatic mammals through conducting their activities.

"An authorization for incidental takings shall be granted if [the National Marine Fisheries Service] finds that the taking will have a negligible impact on the species," the notice read.

The survey area will stem from northern Florida to Delaware.

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Activists: Trump's Atlantic coast survey is the 'first step to offshore drilling' - Washington Examiner

By Casey Conely news@fosters.com

DURHAM Town councilors on Monday endorsed a resolution calling for a focused look at offshore wind development.

The measure, which passed 7-1, urges Republican Gov. Chris Sununu to ask the federal Bureau of Ocean Energy Management to form a task force dedicated to exploring commercial wind power in the Gulf of Maine. Councilor Firoze Katrak opposed the resolution and Councilor Carden Welsh was absent.

The benefits would be potentially federal grants to researchers (at UNH), investments in the local offshore region by wind energy companies and opportunities in the port of Portsmouth, said Mary Downes, who sits on Durhams Energy Committee.

It could lead to reduced reliability on other forms of energy we have to import and pay a lot of money for, she continued.

Durham became the first Seacoast community to approve the resolution, which is backed by several alternate energy organizations, including a state affiliate of the climate group 350.org and Durham-based Seacoast Anti-Pollution League.

Doug Bogen, an organizer with the Seacoast Anti-Pollution League, said the effort is in its early stages. However, the group hopes to build on recent local successes. Energy commissions in Dover, Durham and Portsmouth already have backed the resolution.

The climate is changing, Bogen told Durham councilors Monday, and we need to act much more (quickly).

The town councils approval follows President Trumps decision to pull the U.S. out of the 2016 Paris Agreement aimed at reducing global greenhouse gas emissions. Power plants that burn fossil fuels are a major producer of greenhouse gases.

In spite of the change weve seen at the federal level," Downes said, "there is a lot we can do at the state and federal level and this is one concrete action we can do."

Supporters argue offshore wind would be a boon for the environment and the New England economy. For instance, waters off New Hampshires sliver of coastline offers potential to generate to 2,600 mW of electricity more than enough to power the entire state, according to data from a 2010 federal Dept. of Energy report.

Large scale, commercial wind development also would support hundreds and potentially thousands of jobs, according to data provided by the Seacoast Anti-Pollution League.

Mondays resolution passed with little debate. Councilor Kenny Rotner pointed out the measure requires no financial commitment from the town.

Katrak likened alternative energy projects that require subsidies to reverse Robin Hood measures.

They take money from poor people and give it to the rich people, he said, suggesting costs of subsidies are borne by poorer residents.

In other town council news Monday, councilors made clear the towns consultants will share expert testimony related to the Seacoast Reliability Project transmission line with the state Site Evaluation Committee (SEC). Eversource has proposed building the line.

The town hired The Woods Hole Group and GeoInsight to review Eversources conclusions related to the project, and residents have expressed concern such data would not be submitted to the SEC. The SEC will consider approving the project this fall.

Town Administrator Todd Selig recommended the town ask its consultants to submit a report to the SEC, and councilors agreed, voting 8-0. Such a request will cost additional money, but roughly $35,000 is still available from an initial $90,000 allocation approved earlier this year.

Original post:

Durham Town Council backs resolution supporting offshore wind - Foster's Daily Democrat

Maltese prime minister Joseph Muscat was sworn in for five more years on Monday (5 June) despite aggressive revelations about offshore firms.

His Labour Party won 55 percent of the votes on Saturday, according to a first count by the electoral commission, beating the opposition Nationalist Party with 44 percent.

He described the result as a big vote of confidence after having called the elections to restore his authority amid corruption allegations.

These involved leaks that his wife, his chief of staff, and a minister had secret offshore accounts in accusations that remain under investigation.

"You have confirmed your confidence in the movement despite one of the most negative electoral campaigns in the country's history, Muscat told supporters in Valletta on Saturday.

Those who thought that the Maltese people would choose negativity dont truly know the Maltese people, because the Maltese people choose positivity, optimism, energy, goodwill, unity and equality, he said.

Simon Busuttil, the Nationalist Party leader, resigned after his defeat.

But he urged magistrates to continue their probes into the offshore leaks.

The fact that Joseph Muscat won the election does not mean that what happened has now been erased. It does not mean that the crimes committed have been forgotten. I hope Muscat at least realises that politics have to be cleaned up, Busuttil said.

Maltas president, Marie-Louise Coleiro Preca, the same day called on both parties to end their aggressive and abusive language.

The result clears a potential embarrassment for the EU, whose rotating, six-month presidency is currently being held by Malta.

Jean-Claude Juncker, the European Commission president, said in a letter to Muscat that: Your result is a remarkable tribute to your leadership over the last years.

Muscat, who is 43 years old, promised to cut taxes and raise pensions in his campaign, underlining the islands mini-boom in his past four years in power.

He also pledged to legalise gay marriage, building his international reputation on civil rights.

His strong new mandate saw 92 percent of Maltas 342,000 eligible voters cast a ballot.

Read the original post:

Offshore leaks fail to harm Maltese PM - EUobserver

A spectacular weather weekend!

Fishing was about as good as it gets, too.

It sounds from reports as though a lot of fishers were out on boats, casting from the surf, jetties or piers, buying tackle and bait, renting boats and fishing from kayaks and even paddleboards.

Sea bass and summer flounder were and are a potent 1-2 with middleweight to light-heavyweight striped bass, and 10-pound-plus bluefish are not too shabby, either. The continued improvement in weakfish catches adds to the fun.

Offshore fishing is starting to get exciting, too. Sea bass are plentiful and stacked up over the wrecks and from 25-30 miles off to as close as six miles.

A couple of sharks weighed over the weekend should get the offshore contigent wired.

Paul Hoffman at Canyon Club in Cape May had to borrow the scale from the companion South Jersey Marina in Cape May to weigh a 537-pound mako caught Saturday night on the Mushin (photo B8).

Alan Lee is captain of the Mushin and had his regular crew of Chad Bennett, Darryl Goffreda and Brian McCutchen.

Paul said it was a repositioning trip, moving from Pt. Pleasant south to the Canyon Club for next couple of months.

Pretty good timing for the South Jersey Shark Tournament this week at South Jersey Marina.

Tournament director Aaron Hoffman, Pauls son, was putting up the tent Monday afternoon for the ceremonies scheduled for Wednesday through Saturday.

Captains and crews can fish two of three days from Thursday through Saturday. Late registrations are $600 per boat starting at 6 p.m. Wednesday, with the captains meeting at 7:30.

Last years purse was a whopping $317,000.

Sterling Harbor Marina in Wildwood weighed a 293-pound thresher shark for Thomas Dalfonso, of Elk Township, on his boat Reel Trouble out of Wildwood. He was fishing with son Thomas and Mike Dougherty along the 30-Fathom Line.

It was entered into The Press Fishing Contest in the Offshore Category.

A couple of super weather days have made it almost seem like midseason on the fishing scene,

Catharine Algard from Sterling Harbor said there are plenty of blue sharks and some makos in the mix, too.

Jims Bait and Tackle ran its shark contest Friday and Saturday out of Cape May. They had some makos reported but none made the minimum.

The other offshore news from Jims is that a few bluefin tuna were reported caught on the troll at Baltimore Canyon and 28-Mile Wreck, according to Matt Slobodjian.

Saturdays results of the Greater Atlantic Bluefish and Striped Bass Tournament, presented by the Greater Atlantic Cancer Fund, is a good indication of continued super fishing for both.

Jason Pilla, of Galloway Township, took the bluefish division with a 10.32-pound catch. Jerry Coombs, of Little Egg Harbor Township, was the striper winner at 38.9 pounds.

This was the 30th year for the contest. All of the money raised assists people with cancer or other life-threatening illness who also are having financial difficulties due to their illness.

Thanks to Ed Goldman for the report.

A couple of weeks back, Ed also provided information prepared by David Burke about the Nuncio Bruno Kids Bluefish Tournament headquartered in the newly opened Chestnut Neck Boat Yard in Port Republic.

The 19th annual event honors the memory of Ann and Nuncio Bruno and is organized by the Absecon Saltwater Sportsmen Association.

Noel Feliciano said Friday he had a few weigh-ins by late afternoon.

James Sherman, a 5-year-old from Estell Manor, caught the heaviest blue at 11.92 pounds. Kylie Jenson, 4 from Milltown, was just behind at 11.39 pounds. Brandon Albett, 16 from Estell Manor, caught a 10.76-pounder. A total of 25 blues, five of which were more than 10 pounds, were caught in windy conditions by 54 contestants ages of 3 to 16.

Become a fan of Shep on Facebook at:

Mike Shepherd is the retired sports editor of The Press. His column appears in the Tuesday and Saturday print editions and online.

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537-pound mako shark highlights South Jersey offshore fishing: Shep - Press of Atlantic City

The Trump administration took a big step Monday toward permitting seismic testing for the presence of oil and natural gas in the offshore Atlantic, issuing the rules for how the tests take place.

The tests would provide data sold to drilling companies to locate where to drill test wells.

The move had been expected after President Donald Trump in April ordered a review of the Obama administration's closings and lease denials of potential new offshore drilling sites.

Five companies have filed permit requests, and all of them want to explore at least part of the waters off South Carolina.

The fight over drilling for many cuts to the heart of coastal life, where interests are divided between exploring for potential the economic benefit of fossil fuels to restricting exploration to protect marine life and a billion-dollar tourism economy.

Opposition to the drilling and testing has grown to millions of East Coast residents, more than 120 municipalities, 1,200 elected officials, 41,000 businesses and a half million fishing families.

Michael Jasny, a project director for the Natural Resources Defense Council compared the effect of the seismic blast tests to repeatedly setting off dynamite in a neighborhood.

Other critics pointed to previous industrial accidents.

Why would the government even think about allowing the filthy, accident-prone oil industry to proceed with this dangerous procedure that so greatly affects the same wildlife were all trying to protect through restrictive fishing regulations? asked Rick Baumann, the owner of Murrells Inlet Seafood.

Industry advocates said seeking current data is a responsible first step.

Dustin Van Liew, the government affairs director for the International Association of Geophysical Contractors, said the administration has recognized the need for new information "for making informed energy policy decisions about Americas resources on behalf of the American people."

Seismic-exploration companies survey for fossil fuels in the ocean bottom by detonating sound blasts from airguns that can deafen, injure and scatter marine animals, according to studies by the federal government and other groups. The findings are then sold to oil companies.

For the tests, the powerfully loud guns are fired underwater every 16 seconds to read echoes from the bottom geology. The tests take place over miles of ocean for months at a time.

Industry representatives say advances in drilling technology have made the operations safer, and that seismic surveys have taken place for a half-century with no direct evidence that they harm sea animals, commercial fishing or tourism. Advocates tout the economic benefit and potential job creation of the work.

Among other studies, a 2014 University of North Carolina Institute of Marine Sciences study during a National Science Foundation seismic mapping effort in the Atlantic Ocean off Beaufort Inlet found 78 percent of the fish on a nearby reef "went missing."

The rules set by the National Marine Fisheries Service include nearly 300 pages of restrictions and requirements, such as keeping watch for marine mammals, seasonal and critical zone closings. Conservationists say the restrictions aren't nearly comprehensive enough to assure the safety of the animals or prevent disruption to the fisheries.

The companies want to search through a vast area of ocean as large as the Southeast states combined. It stretches well past the Continental Shelf about 40 miles out. Testing as recent as the 1990s suggests there is little extractable oil or natural gas to be found with one exception: methane hydrates, a frozen form of natural gas.

The gas is known to be found in deep ocean beds, 100 miles out and more than 1,500 feet deep, under pressure like gas in a propane tank.The companies' focus is the Shelf, where the hope lies more reserves of gas and potentially oil might be found. The shelf and ridges somewhat closer in are the heart of the offshore fishing grounds.

According to the rules, testing could take place in all federal waters, starting three miles offshore, and at least one company has applied to test within 30 miles of the coast. The S.C. Department of Health and Environmental Control has asked federal regulators to keep companies that are permitted at least 50 miles out.

"If you're going to survey from three miles out you're going to affect nearly everybody who fishes in the ocean," Baumann said.

The rules go to public comment for 30 days. Contact NOAA Fisheries. Permits could be issued as soon as the fall, Jasny said.

Reach Bo Petersen Reporter at Facebook, @bopete on Twitter or 1-843-937-5744.

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NOAA sets table for seismic testing offshore, including off South Carolina - Charleston Post Courier

June 6th, 2017 Andre Wheeler Asia, Offshore, Opinion 0 comments

There has been a recent spate of news reports on the granting of an MIC approval to invest in an Offshore Supply Base (OSB) in Myanmar. We see two officially announced approvals located in close proximity to each other in the Ayeyarwady Region. Then there is a false report of an OSB in Mon State.

Having written extensively on the need and importance of this key piece of infrastructure to support the offshore oil and gas developments, this is welcome news that the MIC and government are now taking the issue seriously and getting a move on.

I recall addressing a summit in Yangon in 2014 warning that to have a successful offshore oil and gas sector you need to have a local supply base that creates jobs and preserves supply chain value within the state and union economy. However, I have also warned that the process of OSB approval/design / build needs to be carefully considered in order to ensure that a Myanmar solution is found and there is a functional fit to meet offshore operators needs.

As noted in previous articles on infrastructure and the OSB in particular, there have been a number of false starts by MOGE and government. These false starts have created confusion and chaos in this space.

It has also driven scepticism as to whether there is a comprehensive understanding of what is needed in a supply base and how best to deliver this key piece of infrastructure. An example is MOGE in November 2015 calling for expressions of interest from the market without a scope of works being given. They received 52 EOIs. With no criteria on which to evaluate the EOIs, MOGE has sought the assistance of Roland Berger in developing a scope and managing the tender process going forward. Discussions are ongoing and will no doubt be further confused by the recent MIC approvals. From an outsider perspective this raises the question as to whether there is in fact coherent and coordinated approach by the state to ensure delivery of infrastructure.

Adding fuel to the fire is the speed at which local companies have been granted approval. Questions that are raised is the ability / capability / criteria by which the local MIC applications were dealt with. Was it on the basis of local land ownership only? If so, this raises very serious questions as to the viability of these two approvals.

In the first instance, an OSB requires significant funds to build, with a lead time of three years before revenue generation to pay off debt. The project would need $50m in the initial stages, with at least $20m needed just to get the land cleared and in a suitable build condition. If a foreign entity loans them the finance in return for a long lease, this changes the basis upon which approval was granted and a new MIC approval would then be required. This would put investor funds at risk as well as raise the sovereign risk of Myanmar. If I have misunderstood the process and in fact this lease back arrangement is allowed, this sets a poor precedent and model for this type of investment. This model, as used in the likes of Africa, normally results in the proliferation of dummy or front companies with the concomitant increase in corrupt practice. This does not instill confidence in those foreigners wishing to invest in Myanmar.

In the second instance, did the approvals consider the physical constraints and location of the proposed sites? From an HSE perspective and international offshore operator perspective needs to be within 60 minutes by road to an operational airport for reasons of: evacuation, personnel transportation, as well as within 30 minutes by road to catered accommodation for at least 60 persons. Both sites appear not to meet this criteria.

Furthermore an OSB needs an integrated transport services network connected by road/rail/air to the sea. This is needed to ensure that you can manage and control truck marshalling areas, cargo consolidation space, and logistics for road and air freight. For this one would need approximately 20 25 ha of developable land that has good connectivity with a transport network. Again, this looks like it is missing with regards to the two locations that have poor infrastructure support as well available land being too small to accommodate supply base development.

I will not go into the other issues that can be raised, these will be discussed in an upcoming briefing session that I will be doing in Yangon, but the process used in granting MIC approval for an OSB suggests that Myanmar has not learnt from previous missteps. This does not give confidence to foreign investors at a time when the country needs an increase in foreign investment. Hopefully the warning sounded in March 2015 does not come to pass, in which I warned of the real possibility that undue consideration to process normally has a thoroughbred horse in mind, but a camel is the outcome.

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Myanmar offshore supply base development: Further chaos or progress? - Splash 247

By Anshuman Daga and Sumeet Chatterjee | SINGAPORE/HONG KONG

SINGAPORE/HONG KONG The sale by Malaysian energy firm Petronas of an estimated $1 billion stake in a local upstream gas project has moved to the second round and is set to attract interest from about half a dozen bidders including Royal Dutch Shell and ExxonMobil Corp, four sources familiar with the matter said.

State-owned Petroliam Nasional Bhd (Petronas) had kicked off a process to sell a stake of up to 49 percent in the SK316 offshore gas block in Malaysia's Sarawak state, Reuters reported in February.

Prospective buyers are expected to submit second round financial bids this month, and a final decision on the successful bidder is expected later this year, said two sources.

Sources said Total, PTT Exploration and Production PCL and some Japanese firms are also among those keen to bid for the asset.

The transaction, if completed, would mark Petronas' biggest upstream stake sale since oil prices started falling more than two years ago.

All the sources declined to be identified as discussions between Petronas and the companies are private, adding that terms of the deal could change depending on how the talks proceed.

Petronas, which last week maintained a cautious outlook for the rest of the year after reporting quarterly profit more than double a year ago, did not respond to a request for comment.

In a statement to Reuters in April, it had said that through its unit, Petronas Carigali, it was seeking partners who could bring the technology and capabilities to explore, develop and efficiently operate the various fields and opportunities in the SK316 offshore gas block.

Shell, ExxonMobil and Total declined to comment.

PTT Exploration said it was keen to invest in Thailand and Southeast Asia due to its expertise in these markets and as costs and risks were low.

"This area is consistent with the company's expansion strategy, however, the company will consider details of each project before making an investment decision," PTTEP said in response to a query on its interest in the Petronas asset.

Gas from the NC3 field in the SK316 block feeds Malaysia's LNG export project, known as LNG 9, a joint venture between Petronas and JX Nippon Oil & Energy Corp that began commercial production in January.

The sale of a stake in the offshore gas block has been clouded by political opposition to the process, but sources said this was unlikely to derail ongoing talks.

Opposition party leaders in Sarawak, a key vote base for Malaysian Prime Minister Najib Razak who is likely to call general elections this year, have expressed disapproval in Petronas' plan to find a partner.

One even called for the state to be given the option to acquire all or part of the stake that it proposes to sell.

Sarawak Chief Minister Abang Johari, however, has said the state did not want to take on the risk of developing the gas field as "the project cost billions of ringgit and it is of high risk," according to state news agency Bernama.

He said the state government was in talks with Petronas about the partner-finding process for SK316.

(Reporting by Anshuman Daga in SINGAPORE and Sumeet Chatterjee in HONG KONG; Additional reporting by A. Ananthalakshmi in KUALA LUMPUR and Chayut Setboonsarng in BANGKOK and Jessica Jaganathan in SINGAPORE; Editing by Richard Pullin)

U.S. homebuilder D.R. Horton Inc said on Monday it had offered to buy 75 percent of real estate development company Forestar Group Inc for about $520 million.

PARIS Societe Generale will sell up to 23 percent of its car leasing arm ALD Automotive in an initial public offering (IPO) this month, the French bank said on Monday, potentially raising as much as 1.6 billion euros ($1.8 billion).

UK mail delivery company DX Group agreed to acquire John Menzies' distribution arm through a reverse takeover on Monday, securing backing from its largest investors after terms of the deal were revised.

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Petronas' stake sale of offshore gas asset advances to second round: sources - Reuters