Category Archives: Offshore

NEW DELHI: India-focused offshore funds and exchange-traded funds (ETFs) have pumped in over USD 500 million in May, taking the total to USD 3.6 billion so far this year.

An offshore India fund is one that is not domiciled in the country but invests primarily in its markets.

According to a report by mutual fund tracker Morningstar, India-focused offshore funds have infused a net amount of USD 360 million last month, while that of ETFs poured in USD 140 million, during the same period.

This comes following a total net inflow of USD 1.10 billion in April.

In comparison, net inflow by Foreign Portfolio Investors (FPIs) in equities stood at USD 1.4 billion last month.

"The most prominent reason for the inflow is expectation from the government that it would speed up development and economic reforms in their last two years in office before going for elections in 2019. The government finalising GST rates and expectation that it will be rolled out on time in addition to forecasts of normal monsoon also led to positive sentiments," he added.

So far in 2017, India focused offshore funds have pumped in USD 2.7 billion compared to USD 895 million by India focused offshore ETFs, the report noted.

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Offshore India funds, ETFs pump in $500 million in May - Economic Times

After several years of discussing the possibility of setting up a new shipyard in Saudi Arabia, the Kingdoms national oil company, Saudi Aramco, has entered into a new adventure. As one of the first NOCs, Aramco is diversifying its operations from upstream and downstream operations to become a major offshore services provider and operator. After decades of the hiring offshore rigs and vessels from third parties, such as Arabian Drilling Company, Aramco has now taken the step not only to own its own jack-up rigs but also to build them at a new shipyard in Ras Al Khair. Aramco has signed a joint-venture (JV) deal with UAE based engineering company Lamprell, Saudi national shipping company Bahri and Asian giant Hyundai Heavy Industries Company. As stated by Saudi officials, the yard will be the anchor project within the King Salman International Complex for Maritime Industries and Services located in Ras Al Khair, near the Jubail Industrial City on the Kingdoms east coast.

The current plans entail the set-up of the Gulfs largest integrated maritime yard, not only in production capacity and scale, but also in having Saudi Aramco as the main investor. This will present Aramco with the opportunity to design, construct and maintain around 20 jack-ups, while also having the capacity to support the manufacture, maintenance, repair and overhaul of offshore support vessels and commercial vessels. Taking into account that Saudi Arabias main shipping company Bahri is one of the partners, the yard is expected to also service very large crude carriers (VLCCs).

The original plans were put in place based on the assessment that the JV will offer Saudi Aramco a local provider for its offshore drilling and shipping activities. Cost optimization, reduced response times and higher agility is to be expected. Present capacity is slated to entail the construction of four offshore rigs, around 40 offshore vessels (including three VLCCs) and service of 260 maritime products per year. The first vessels and rigs are expected to be built from 2019 onwards, while full production capacity is projected to be reached in 2022. Related:Canada Pushes For Zero Emission Vehicle Strategy

Not mentioned in any of the current media reports is the fact that the Ras Al Khair yard, owned and paid for by Aramco, will not only be targeting local Saudi demand. The Ras Al Khair will be competing with existing yards in the GCC (UAE-Bahrain) and Asia. Looking at the current offshore rig market, this is a big gamble. Since the crude oil price crash, a long list of offshore rigs have been stacked while other projects have been put on hold. Commercial incentives for new builds are not easily found.

But the Ras Al Khair Yard is the new kid on the block, and it has lots of influence behind it. Aramco is the majority stakeholder, able to force other partners in the JV to comply to local demands and specifications. Looking at the offshore market at present, it could even be stated that Aramco will be able to force other yards out of business as it can demand that its co-investors build all new rigs in Saudi Arabia. With a list of 20 new builds already, Aramcos pulling power is not to be ignored. Related:Has Permian Productivity Peaked?

If Aramco is able to construct and operate the new yard to the highest standards while also supporting the schooling of Saudi offshore rig engineers in the coming years, current rig builders will be in trouble. The localization drive, as linked to Saudis Vision 2030 and Aramcos IKTVA, is a new influence that the market will need to get acquainted too. If Aramco succeeds here, other NOCs are sure to follow suit, leaving the traditional parties without any real options to survive the current onslaught. Offshore engineering companies, ship yards and rig providers will have to reassess their options. The traditional market structure may already be obsolete.

The $5.2 billion Ras Al Khair Yard project is a prime example of the ongoing changes within Saudi Aramco at present. The industry giant is going through dramatic changes, expanding beyond its NOC status and challenging on the international market. Aramco has entered the market with a bang, and markets should expect more big moves in the build up to what is being marketed as the biggest IPO in history.

By Cyril Widdershoven for Oilprice.com

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Aramco Aims To Take Over The Offshore Rig Market - OilPrice.com

BP Trinidad & Tobago (bpTT) has made two significant gas discoveries after drilling the Savannah and Macadamia exploration wells in offshore Trinidad.

Both discoveries are estimated to contain nearly two trillion cubic feet (Tcf) of gas, which will encourage new developments in the area.

bpTT regional president Norman Christie said: We are starting to see the benefits of the significant investment we have made in seismic processing and Ocean Bottom Seismic acquisition. Savannah and Macadamia demonstrate that with the right technology, we can continue to uncover the full potential of the Columbus Basin.

bpTT drilled the Savannah exploration well into an untested fault block located east of Juniper field in more than 500ft water depths, nearly 80km south-east coast of Trinidad.

A semi-submersible rig was used to drill the well, which encountered 650ft net pay in hydrocarbon-bearing reservoirs in two main intervals.

"It was drilled to test exploration and appraisal segments below the existing SEQB discovery."

The company intends to develop these reservoirs through future tieback to the Juniper platform due to come on-stream this year.

The Macadamia well was drilled to test exploration and appraisal segments below the existing SEQB discoveryand penetrated hydrocarbon-bearing reservoirs in seven intervals with around 600ft in net pay.

bpTT owns 100% working interest in Savannah and Macadamia wells.

In addition, the company received approval to develop its Angelin offshore gas project located nearly 60km from south-east coast of Trinidad in water depth of around 65m.

The project comprises construction of a new platform which will represent bpTTs 15th offshore production facility in the area.

Continued here:

BP makes two offshore gas discoveries offshore Trinidad - Offshore Technology

Victoria is angling fora massive floating liquefied natural gas import facility to allow the state to buy gas from overseas to help tackle a serious supplycrisis.

Despite the state's potentially enormous gas reserves in Bass Strait, and Australia's position as one of the world's largest exporters,the Andrews government is understood to be in active talkswith energy giant AGL to build afloatingLNG import terminalclose to Melbourne, possibly in Western Port.

The terminal, which would supply the east-coast gas grid,would allow Victoria, NSW and South Australiato import lower cost gas,potentially from the US or Western Australia.

Premier Daniel Andrews is expected to press the planat a Council of Australian Government's meeting on Friday, along with a new proposalto help prevent local manufacturers and households from being denied access to cheaper gas because of big export contracts to Asia.

The state government is understood to have offered to "fast track" the environmental and planning approvalprocess for the facility, which would be likely to cost $200 to $300 million, although the decision would ultimately lie with the Commonwealth.

Victoria is believed to be seen as a favourable option,partly because it is located between NSW and South Australia, which would lower pipeline costs, and partly because, unlike NSW, it already has significant storage capacity at the Iona plant, near Port Campbell inthe state'ssouth-west.

The idea of the new import facility was first floated by AGL chief executive Andy Vesey in November last year.

At the time, the idea thatAustralia, soon to be the world's largest LNG exporter, would need to import gas was dismissed.

But with some businesses in the southern states reportedly being quoted as much as $20 a gigajoule this year, up from as little as $4 a gigajoule in 2015, the idea is gaining traction.

Industrial gas users in Japan which is the largest buyerof AustralianLNG pay much less, about $12 agigajoule.

The global price is now even lower than the price that has been contracted by LNG producers to supply the Asian market, thanks to a significant oversupply.

The idea of the new terminal would be to buy LNG for south eastern Australiaat the lower global price.

Energy Minister Lily D'Ambrosiosaid there was something "seriously wrong" when Australia gas was being sold in Japan for a lower price than businesses were being charged for it in Victoria.

University of Melbourne Climate and Energy College research fellow Dylan McConnell said releasing new gas supplies into the Victorian market was unlikely to influence short-term prices for industrial users because new supplies could take a long time to development.

Governments also needed to consider that some consumers were shifting away from gas due to new household technologies that relied on electricity, Mr McConnell said.

He argued that some households were withdrawing from gas in favour of new electric technologies, including induction cook tops, electric hot water and heating and rooftop solar.

The Australian Energy Market Operator has also raised doubts about whether new supplies would translate to lower prices, citing the increased cost of sourcing new gas and the "geological challenges of extraction".

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Floating offshore gas hub proposed to tackle Victoria's energy supply crisis - The Age

Director of the Gas Projects Coordinating Office (GPCO), Peter Koim, tells Loop PNG that there are currently some loopholes that need to be addressed before a fully-fledged offshore project takes place.

Our different laws have been initially designed to host on-shore projects, whether it be mining, LNG projects, or oil projects, said Koim.

There are some deficiencies in the existing laws to address a full fledged operation offshore. And I think our state solicitors office and our legal experts are looking at those missing links so there will be amendments to close in on those gaps before we move offshore projects into the development forum and actual development.

One of the loopholes that Koim pointed out in the current act is the free carry two percent equity for landowners.

He said this clause is not applicable for an offshore project, Koim said.

When the law was enacted, this particular area was not looked at.

Like now the Pasca Project, were using the oil and gas act to try and address the issue but then, the project has to make available two percent free carry equity to the landowner. But we dont have landowners in the ocean. So who benefits from that two percent?

How are you going to answer that question so these are things that within the state we are looking at and we will find some answers and address it by way of amendment to the act.

Two offshore gas discoveries include the Pandora Field, between Torres Strait and PNG, and Pasca A, located in the Gulf of Papua. Twinza Oil has acquired a majority of interest in both gas fields.

Other potential offshore projects include Petroleum Prospecting License (PPL) 374 and PPL 375, which is operated by ExxonMobil, of which Oil Search has in each a 40 percent interest.

Loop file photo

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Potential offshore projects prompt review of Act - Loop PNG

Updated June 02, 2017 10:47:57

Plans for an Australian-first offshore wind farm off Victoria's south-east coast, which could provide almost a fifth of the state's energy, have won cautious government support.

Offshore Energy has been working with the Federal Government on a feasibility study for the 250-turbine proposal, and will present details of the plan to a Victorian Government-led energy roundtable in Churchill today.

The wind farm which would be built 1025 kilometres offshore in waters near Port Albert would spread over 570 square kilometres in Commonwealth waters, and could provide 18 per cent of the state's energy.

Offshore Energy's managing director Andy Evans said the $8 billion project could reduce carbon emissions by about 10.5 million tonnes per year.

"The benefits of offshore wind, particularly off the coast of Gippsland, is it's a much more consistent and constant wind resource," he said.

"You don't have as many of the restrictions as you would have with other land-based wind resources."

Mr Evans said the wind farm would connect to the existing network and could supply power to 1.2 million homes.

He said the feasibility testing phase would take three years.

"Offshore wind projects have been developing rapidly, particularly in Europe, but also in the northern hemisphere," Mr Evans said.

"There are a number of offshore developers and certainly large infrastructure investors, particularly here and overseas, that are progressing these projects."

Preliminary planning and environmental studies show the plant could generate direct about 12,000 direct and indirect jobs, in a region that has been plagued by job losses since the Hazelwood power station shutdown.

Federal Infrastructure and Transport Minister Darren Chester, who is the MP for Gippsland, has given early support, pending an environmental study.

"We have great natural resources in Gippsland wind off the coast, coal timber. If there are ways to capture that and turn into energy that powers manufacturing sector, I am all for that," he said.

"But it's important the proponents work with the local community."

Victoria's Energy Minister Lily D'Ambrosio said the company would first need to get the go-ahead from the Federal Government, before seeking Victorian planning and environmental approvals.

"This is a massive project. It's an exciting project, it is unprecedented and one that our Government supports and we'll continue to work alongside Offshore Energy to work through all of the planning requirements," she said.

"We will work together with the Commonwealth to ensure that all of the necessary approvals are dealt with so in the end Offshore Energy can go ahead."

The company said it had not discussed federal funding options.

Richard Elkington from Regional Development Victoria warned the feasibility study was expensive and could lead to disappointment.

"It's a good idea for all sorts of reasons it's not coal," he told ABC Gippsland.

"We shouldn't be carried away with the job numbers though. We've been hearing about potential coal projects for the last 20 years.

"It's always just around the corner and it holds out the prospect of hundreds or thousands of jobs and we've got a great future in the Latrobe Valley, but none of those projects have been realised."

Port Albert cafe owner Michael Hobson raised concerns about the environmental and economic impact on the coastal town, which has a population of about 250, and is a base for fishing fleets and boating.

Mr Hobson said the proposal was close to globally recognised wetlands, and could affect local wildlife.

"It's internationally significant in regards to the birdlife and migratory birdlife that travel out of the area," Mr Hobson said.

"We're looking at excluding our commercial fishing operators and our recreational fishers, which is a significant part of our local economy.

"So of course, that comes with its own issues as well."

Mark Wakeham from Environment Victoria said the offshore windfarm could be a huge opportunity, but there would be risks to manage.

"On balance, we're pretty excited about the potential for this project although we'll be looking very closely at the environmental impacts of it," he said.

Topics: wind-energy, alternative-energy, environment, state-parliament, parliament, government-and-politics, federal---state-issues, port-albert-3971, churchill-3842, melbourne-3000, vic

First posted June 02, 2017 09:31:30

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Offshore wind farm proposed for waters off Victoria's Gippsland - ABC Online

Teesside Offshore Wind Farm, operated by EDF Energy Renewables Ltd., in Hartlepool, U.K., on Wednesday, May 3, 2017. The wind farm has a capacity of 62.1 megawatts. Photographer: Matthew Lloyd/Bloomberg

Victoria could get an $8 billion, 2000 megawatt wind farm off the coast of Gippsland - Australia's first offshore wind farm - if bold plans being hatched by two Melbourne energy executives bear fruit.

Andy Evans, who helped build the 192MW Waubra wind farm in Victoria as an executive with Spanish firm Acciona, and Terry Kallis, a former general manager with Electranet, the South Australian transmission monopoly, and former chief executive of Petratherm, a geothermal hopeful, have formed Offshore Energy to undertake an exhaustive three year feasibility study of the proposal.

Mr Kallis is also involved in the giant 600W Ceres wind farm proposal in SA.

The project could create as many as 12,000 jobs during a construction phase expected to last about a decade if the project gets the green light at the end of the three year feasibility period.

That's a potential boon in a region that faces the loss of thousands of power industry jobs as the La Trobe Valley's highly polluting brown coal power stations close down - starting with the 1600MW Hazelwood power station in March.

But Mr Evans and Mr Kallis are emphasising that their plan is at an early stage and - with the energy industry in flux - far from certain to get up. They are working withleading global engineering firm WSP/Parsons Brinckerhoff on planning and feasibility.

Offshore wind has long been touted as a more reliable source of clean power than onshore wind because it blows more constantly and at higher speeds on the high seas. But offshore wind farms also face higher capital costs, construction risk and maintenance costs because of the challenging conditions out at sea.

Still, the project illustrates the upheaval in the energy industry as nations grapple with the challenge ofaddressing climate change without disrupting economic growth orr disrupting energy stability and supply.

Australia is enjoying a wave of investment in wind farms and large scale solar farms as memories of former Prime Minister Tony Abbott's attempt to nobble the Renewable Energy Target fade and confidence returns to the sector.

Traditional coal power, by contrast, is regarded as uninvestiblebecause of the long term carbon risk and the Turnbull government has been forcedto enlargethe legislative mandate for the Clean Energy Finance Corporation in a bid to get some new investment in carbon capture technology for coal plant.

Offshore Energy's proposal is believed to be the first for a major offshore wind farm in Australia. Denmark is the global centre for offshore wind farms, taking advantage of the windswept North Sea.

Mr Evans and Mr Kallis believe Bass Strait off the Gippsland coast has similar high and constant winds to make it highly prospective for offshore wind.

MrEvans said that offshore wind's natural higher capacity factor and more constant generation would benefit electricity system capacity and security as Australia transitions to a more diverse energy mix.

"When placed in the right wind conditions like those off the coast of Gippsland, offshore wind delivers a high, consistent flow of electricity."

Mr Evans said the delivered cost of electricity from offshore wind had plummeted in recent years. "Even on current cost, offshore wind provides a new and exciting option for Australia's energy capacity and security. We expect technology and installation costs to continue to come down."

The proposed wind farm wouldinclude up to 250 turbines within a 574 square kilometre area in Commonwealth waters off the Gippsland coast,deliver about8,000GWh of electricity per year - roughly18 per centof Victoria's power usage or enough to power 1.2 million homes - and reduce carbon emissions by about 10.5 million tonnes per year.

Offshore Energy has $9 million of paid capital, according to ASIC records, a significant down payment on the expected cost of the feasibility studies.

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Giant $8 billion offshore Victoria wind farm studied - The Australian Financial Review

MADRID Spain's anti-corruption prosecutor, who was in charge of graft investigations involving members of the ruling People's Party (PP), stepped down on Thursday after coming under fire for holding a stake in an offshore company in Panama.

Manuel Moix's appointment in February had already led to a row between the minority PP government, which approved his nomination, and opposition parties which criticized the way he handled some cases involving the governing party.

Moix confirmed on Wednesday that he had a 25 percent stake in an offshore company which he shared with his siblings and had inherited from his father. He denied any wrongdoing and said in a Spanish radio interview that the arrangement was legal.

He stepped down on Thursday, though Spain's public prosecutor Jose Manuel Maza, who announced the anti-corruption chief's resignation, defended Moix's track record.

"I'm satisfied that there is absolutely nothing in the way he behaved that has been irregular or illegal," Maza told a news conference.

Several Spanish newspapers reported in April that Moix had tried to hinder a probe, still at the pre-trial stage, which involved the PP's Madrid branch.

Moix denied any wrongdoing, but opposition parties called for his resignation.

Moix's appointment had become increasingly embarrassing for Spanish Prime Minister Mariano Rajoy, whose party is embroiled in a series of corruption scandals, as opposition parties questioned his credentials.

Rajoy, who is not himself accused of any wrongdoing, has been trying to distance himself from corruption scandals that have come at a cost in the ballot box.

The conservative prime minister managed to stay on for a second term in office after the PP won the most votes in two inconclusive elections at the end of 2015 and in mid-2016.

But the PP lost its absolute majority meaning it has to negotiate policies on a case-by-case basis with the opposition to get laws through parliament, like a much-delayed budget for 2017 for which it managed to scrape enough support this week.

(Reporting by Raquel Castillo, Writing by Sarah White,; Editing by Sonya Dowsett and Stephen Powell)

BRUSSELS China and the European Union will seek on Friday to save a global pact against climate change from which U.S. President Donald Trump said he will withdraw.

CARACAS Venezuela's President Nicholas Maduro said on Thursday a referendum would be held on his controversial plan to create a new super-body known as a constituent assembly with powers to rewrite the constitution.

HAVANA Cuba and the United States have dramatically reduced the rate of human trafficking since reaching a landmark accord in January but risk losing those gains if the two neighbors fail to resume high-level talks, Cuban Interior Ministry officials said in an exclusive interview.

Original post:

Spanish anti-corruption chief resigns over offshore company - Reuters

Mary Ann Bragg @MaryAnnBraggCCT

NEWTONOptimism was in the air Wednesday.

Inside a conference room at the Boston Newton Marriott, offshore wind energy developers met potential suppliers of the materials, labor and facilities for their projects on 15-minute speed dates.

In the room with 250 people, two of the three developers with thousands of acres leased south of Martha's Vineyard and Nantucket for offshore wind farms predicted construction on the projects in the early 2020s. A sense of relief and excitement prevailed among attendees, including those with ties to Cape Cod.

There have been a lot of these sessions, starting with Cape Wind, said ocean safety consultant Ron Beck. The thing that distinguishes this is that there are turbines in the water, and the industry is now spending money.

Wednesdays conference, sponsored by Massachusetts Clean Energy Center, was a chance for wind farm developers Deepwater Wind, Bay State Wind and Vineyard Wind, along with turbine manufacturers and major contractors, to describe what materials and manpower they will need, how they might obtain it, and a timeline for the projects. Port and infrastructure facilities in New Bedford, Fall River and Boston were also discussed.

The offshore wind companies are drawn to Massachusetts with the guarantee of power sales from a bill signed by Gov. Baker in 2016, requiring the states three electric distribution companies to buy 1,600 megawatts of offshore wind energy within 10 years. The first competitive bid solicitation is expected at the end of the month.

A 1,600-megawatt procurement for the U.S. is absolutely significant and will kick-start the industry, said Thomas Brostrom, general manager for North America for DONG Energy, which has partnered with Eversource Energy on Bay State Wind.

For some at the conference, though, the Cape Wind project was still in the back of their minds.

Maritime consultant Thomas Bushy recalled a Cape Wind conference several years ago at which a union diver asked about jobs, and Bushy had told him there would be plenty.

This is it, Bushy said. Im really happy to see that the vision that I was part of is happening.

Cape Cod Chamber of Commerce chief of staff Christopher Adamssaid offshore wind is a new source of year-round jobs for residents. The thorny days of Cape Wind are over, he said.

The controversial 130-turbine Cape Wind project planned on 30 acres in Nantucket Sound remains in good standing with its federal lease payments but is not seen as a viable project by state offshore wind proponents after losing critical power contracts in 2015.

There are many roles to be played and a lot of opportunities for the old manufacturers, said Carl Horstmann, president of Middleboro-based Mass Tank, which makes water and fuel tanks.

The company, along with Gulf Island Fabrication and EEW, had intended to partner with Cape Wind president James Gordon.

We all learned and are very thankful to Jim Gordon for being a trailblazer and pushing everybody towards renewable energy, said Horstmann, who attended the Wednesday conference where Gulf Island and EEW, among others, gave presentations.

Mass Tank could supply any of the metal fabrication needs of the developers, Horstmann said.

Beck, along with Megan Amsler, executive directorof Cape & Islands Self-Reliance in North Falmouth, and others hope to supply training for the industry.

The industry is already clamoring for this, Amsler said about a suite of safety classes based on Global Wind Organization standards, such as how to survive in the open ocean.

The Massachusetts Maritime Academy could be the first in North and South America to offer a one-stop shop for the certifications, Amsler said.

The school, located in Buzzards Bay, will very likely be able to adapt its current vessel safety training, based on U.S. Coast Guard standards, to offshore wind, said Hung Tom Pham, who directs the academys Marine Hydrokinetic Research Center.

But we want to make sure the training is properly geared to not only the U.S. standard but also the European standard, Pham said.

In the fall, Bristol Community College, headquartered in Fall River, will offer new coursework for a wind turbine technician position, predicted to be a fast-growing career in the next decade with pay starting in the mid-$50,000 range, said Paul Vigeant, a workforce development specialist at the college.

Follow Mary Ann Bragg on Twitter: @maryannbraggCCT.

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Cape businesses hopeful about offshore wind projects - Cape Cod Times (subscription)

CAMERON PARISH -

The U.S. Department of Energy announced today that it has approved a long-term application to export liquefied natural gas (LNG) from the first offshore project, Delfin LNG, LLC (Delfin). Exports in the amount of 1.8 billion cubic feet per day (Bcf/d) of natural gas are approved from Delfin's proposed offshore Louisiana floating LNG terminal in the Gulf of Mexico.

Development of the Delfin project offshore of Cameron Parish will include the construction of floating liquefaction and storage vessels. Due to its offshore location, the environmental review of Delfin was led by the Maritime Administration and the U.S. Coast Guard.

U.S. Secretary of Energy Rick Perry stated, "I am pleased that with this authorization the administration can continue to strengthen the United States as a dominant energy force with further exports of our abundant amounts of natural gas. Investing in American natural gas not only helps our economy and our jobs, but also helps our allies maintain their energy security. This represents a true win-win for everyone involved."

With the rapid increase in domestic natural gas production, the United States is transitioning to become a net exporter of natural gas. The Department of Energy has now authorized a total of 21 Bcf/d of natural gas exports to non-free trade agreement (non-FTA) countries from planned facilities in Texas, Louisiana, Florida, Georgia, Maryland, and now, with Delfin, from the Gulf of Mexico. The Delfin project would further position the United States to become the predominant LNG supplier to the rest of the world, according to a release from the Dept. of Energy.

The full final authorization for Delfin LNG, LLC, can be found under "Recent Orders" HERE.

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Additional LNG exports from Cameron Parish offshore project approved - KATC Lafayette News