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Ophir spuds Paus Biru well offshore Indonesia

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The COSL jackup HYSY 937 has spudded the Paus Biru-1 exploration wellin the Sampang PSC, offshore Indonesia.

Earlier today the conductor has been installed to a depth of 105 m (344 ft) and drilling of the 26-in. hole was due to get under way soon. Water depth at the location is 30 m (98.4 ft).

Ophir Energy subsidiary Santos (Sampang) operates the well, which should take two weeks to reach a TD of 650 m (2,132 ft) TVDSS.

According to partner Cue Energy, the main objective is to test the early Pliocene Mundu Globigerina limestone reservoirs in the Paus Biru structure, defined by 3D seismic as a four-way dip closure with direct hydrocarbon indications.

The Mundu formation is a proven producing reservoir in the Oyong and Wortel fields to the west and Maleo and Peluang fields to the east.

A secondary objective is the overlying siltstones within the Paciran formation, which again have proven to be productive in Oyong.

Logging data will be acquired to optimize development studies. Evaluation of the two reservoirs will initially employ LWD tools while the sections are drilled.

Further assessment could follow with wireline formation evaluation tools, including pressure testing and fluid sampling. And if there is a significant discovery, there could be up to two cased hole drillstem tests.

The well will be P&A’d post-completion: if successful, a horizontal production well will be drilled at a later stage.

Source:offshore-mag

Port of Vancouver announces end of cruise season

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The Port of Vancouver announced the end of the cruise season, as the last cruise ship, 'Emerald Princess', departed from the Port today (October 19), heading to LA and then Hawaii.

The 'Star Princess' was the ship that started the 2018 season and her sister ship, the 'Emerald Princess', was the last to depart Canada Place.

In 2018, Vancouver accommodated over 900,000 cruise passengers on 243 ship visits. This is an increase of 7% in passenger volumes over 2017. Cruise is considered as a key economic driver for the region as each cruise ship adds about $3 million to the local economy.

During this year, the Port welcomed the 25-millionth cruise passenger and also hosted the largest cruise ship ever to visit Vancouver, the 'Norwegian Bliss'.

Peter Xotta, vice president of planning and operations at the Vancouver Fraser Port Authority, said:"This year was an especially exciting season for the cruise industry in Vancouver."

The 2019 cruise ship season will start with the arrival of the 'Emerald Princess' on March 29.

Source:safety4sea

The Future of South African Ports

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Earlier this month, an elected member stood up to address the South African national assembly saying that the nation’s currency, the rand, that dropped to almost have its value against the American dollar since South Africa’s previous president assumed office. Recent related news reports from South Africa have advised that several of South Africa’s state enterprises, including South Africa Airways, the national power company, the national railway company and the national roads department were in serious fiscal difficulty. South Africa’s ports are state owned.

Introduction

There was a period over 25 years ago when South Africa was Africa’s leading economy, with a national income that exceeded the combined national income of all other sub-tropical Southern Africa nations. During that period, the financial performance of several state enterprises was comparable to that of privately owned entities of other nations. Except that during that period, South Africa administered a repugnant social policy that made the nation an international pariah state. Despite the repugnant social policy, the South African economy remained vibrant with Port of Durban achieving its status as Africa’s busiest port.

During that earlier era, South Africa’s main ports of Durban and Cape Town could easily berth and service the largest non-bulk freight ships in the world, with the largest bulk carriers sailing into the deep water ports of Richard’s Bay located north of Durban and Saldanha Bay located north of Cape Town. South Africa’s economy then and now depends on the export of natural resources via the deep water ports served by extended length “unit trains’ traveling along dedicated railway lines built many years ago prior to the change of government that occurred in 1994.

Natural Resources

South Africa is blessed with abundant natural resources that include coal, iron ore, bauxite, manganese, gold, platinum, iridium, chromium and many other mineral ores for which international markets exist. Some minerals and metallic ores seem to occur abundant in South Africa and are otherwise rare and scarce in other nations’ mining sectors. While South Africa’s mines are predominantly in private ownership, the South African government seeks state ownership of South Africa’s mineral resources and mining sector. Export of South Africa’s mineral resources sustains the operation of South Africa’s deep water ports.

State Transportation Sector

The South African Department of Transportation controls airports, airline companies, railway lines, passenger railway transportation, freight railway transportation as well as ports. South African Airways (SAA) was at one time a highly respected carrier with fiscal performance comparable to that of large private airline companies. Except that at the present day, the operation of SAA and its affiliate state-owned domestic carriers requires massive government fiscal input, as does South Africa’s road and railway system. The fiscal performance of the national electric power company, water department and national broadcasting company have been little different.

North of South Africa in the nation of Zambia, the fiscally constrained national government turned over ownership of the national power company and national broadcasting company to Chinese interests. The governments of several African nations are fiscally constrained and urgently need foreign investment to further develop their national economies. China has urgent need for the kinds of natural resources that occur in several African nations and has been willing to invest in African transportation development. Sino – African transportation investment includes railway lines that connect Zambia and Ethiopia to sea ports along with the new railway line in Kenya.

The African Silk Road Option

Many African leaders see the economic future of their nations depending on future trade with nations such as China and India, both of which seek to invest in overseas transportation development. Prior to the renewal of American economic sanctions on Iran, India sought to build a railway line between southeastern and Tehran, to connect with railway lines that connect into Europe. China’s early African railway investment connected Tanzania to South Africa as well as to a trans-Southern African railway line to Angola and an Atlantic coastal port, perhaps the precedent for future Chinese African railway development.

China’s recent railway investment in Kenya could extend into Uganda while their railway investment in Ethiopia could eventually connect into Sudan. China has also invested into railway development in Nigeria and nearby nations such as Cameroon and nations to the west of Nigeria. There is the future possibility of these railway lines eventually being connected to form a trans-Central African railway between Indian Ocean and Atlantic Ocean, with a possible future connection to the southeastern region of the Mediterranean Sea. China has also invested into industrial development in several African nations.

Future Investment

During an earlier time, African leaders gained notoriety for amassing national debt by mismanaging national resources to the point of making their nations dependent on foreign aid. Compared to Western donor nations, China provides foreign aid very differently by investing in infrastructure development in the needier nations. Nations that seek fiscal assistance from China need to offer collateral and the nation of Zambia that benefited from earlier Chinese railway investment offered the national electric power company and broadcasting company as collateral. Chinese ownership of formerly state-owned African companies is a future possibility in several African nations. 

South Africa’s news media has frequently reported about mismanagement that occurred under a previous state president, a situation that the new president seeks to remedy with the assistance of investment from China. The decline in South Africa’s national currency against other international currencies reduces the cost of South African mineral resources, which nations such as China and India seek to purchase in abundance. Such export requires reliable performance along the railway lines that connect the mines to South Africa’s deep water sea ports, opening the door to possible future Chinese investment into the South African transportation infrastructure.

South African Collateral

As South Africa’s new president seeks to develop his nation’s under-performing economy, once the most vibrant on the African continent, he seeks investment from China that in turn seeks security or collateral in the event of a default. As a result of default, China owns Zambia’s electric power company and South Africa certainly has plenty of security in the form of state-owned enterprises such as ports, railway lines, a national airline company and a national electric power company. Investing in railway lines and ports assures future trade and future access to crucial resources.

The railway lines that connect to the deep-water sea ports and the ports could become collateral or security for future investment from China. South Africa’s container ports could be future collateral, especially Cape Town that is close to the trade sea route between China and Brazil as well as Indian and Brazil. Brazilian container ports and a southwestern Indian port are being upgraded to berth the largest container ships afloat, suggesting the desirability to upgrade a terminal at Port of Cape Town. In the future, South Africa might have to consider selling off state enterprises to secure overseas investment.

Conclusions

South Africa’s new state president has reached out to China to provide funding to help develop South Africa’s economy that over the past decade, has forfeited an estimated $10 billion worth of new private business development. Several of South Africa’s state-owned transportation sector enterprises are technically bankrupt. While the South African government may be reluctant to sell off these enterprises, some of these enterprises may be the only security that South Africa could offer in exchange to secure loans from overseas. A combination of three maritime ports, two main railway lines that connect to the deep-water ports and the national airline are prospective candidates for future foreign ownership.

Source:maritime-executive

Bulker Attacked by Pirates off Somalia

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On Wednesday, the bulker KSL Sydney was attacked by armed men in a skiff far off the east coast of Somalia, the latest sign that piracy remains a threat in the western Indian Ocean.  

According to the IMB ICC and EUNAVFOR Operation Atalanta, a skiff with four armed pirates approached the Sydney at a position about 340 nm off Mogadishu. The captain mustered the crew in the vessel's citadel and set off the SSAS alarm. Meanwhile, the Sydney's embarked security team engaged the attackers in a "sustained exchange of fire," according to EUNAVFOR. The skiff eventually broke off and abandoned the pursuit. 

"Due to the application of BMP protection measures by the master, his crew and the private security team, the piracy attack was thwarted and the crew and vessel remained safe," said EUNAVFOR in a statement. 

EUNAVFOR issued an alert to merchant shipping and launched a response, including the deployment of several counter-piracy assets. 

Somali piracy has fallen far from its peak in 2011-2012, when pirate "mother ship" boats and go-fast skiffs ranged as far abroad as the coastal waters of India. A combination of armed shipboard security contractors and multinational naval patrols ultimately suppressed the problem, resulting in several years without a reported successful attack. Somali piracy re-emerged last year with a series of attacks on small dhows and foreign bulkers, including the hijacking of the OS 35, which was ultimately thwarted by Chinese naval forces. 

Source:maritime-executive

Ten Scrubber Questions Answered

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The Clean Shipping Alliance 2020, a new organization consisting of 25 leading maritime companies representing over 2,000 ships, answers 10 questions about scrubbers.  

1.    How does a scrubber reduce sulfur oxide (SOx) emissions?

A scrubber sprays alkaline water into the vessel’s exhaust, which removes SOx from the ship’s engine and boiler exhaust gases. In a seawater system the sea’s natural alkalinity largely neutralizes the results of SO2 removal before discharge back to the sea. In a fresh water system, the wash-water used for scrubbing and neutralization is treated with an alkaline chemical such as sodium hydroxide. In both cases the sulfates resulting from the SO2 removal will be discharged with the wash-water to the sea.   

2.    Is the sulfur included in the wash-water from the scrubbing process harmful to the sea?

Sulfur in the form of sulfate is the end product of the scrubbing process and is a naturally occurring constituent of seawater and therefore not harmful to the sea. The oceans are the Earth’s natural reservoir of sulfur and play a key role in the sulfur cycle. Sulfur is one of the most common elements and is both biologically necessary and critical to many metabolic processes.

To provide perspective, consider the following: If all the sulfur in the oceans were accumulated at the bottom of the ocean the layer would be five feet thick; adding all the sulfur from all the oil and gas reserves in the world would add only the thickness of a sheet of paper. Compared with the quantity of sulfate existing in the oceans, the small amounts of sulfate contributed by exhaust gas scrubbing are insignificant and benign.

Removing sulfur from the exhaust via the scrubbing process has the important added environmental benefit of reducing the negative impact of emissions to air, as air emissions in the form of SO2 can add to the formation of particulate matter.

3.    Do scrubbers have an acidification effect on seawater?

During the desulfurization process within the scrubber, SO2 gas is absorbed by the seawater spray. Through a series of reactions within the wash-water, the SO2 is converted to an end product of sulfate (SO4), water (H2O) and carbon dioxide (CO2).

During the scrubbing process any decrease in the pH of the wash-water is largely neutralized by the natural alkalinity found in seawater. This ensures that the pH of the discharged water is in compliance with guidelines established by the International Maritime Organization (IMO). The resulting discharge contains only a slight increase in the natural concentration of sulfate in water.

Direct measurements on 40 ships monitored by maritime classification societies while the ships were in port have shown that pH levels of scrubber discharge water revert to ambient seawater pH levels within two to four meters of the discharge point – exceeding the IMO requirement. As shown by a 2012 Danish Environmental Agency study, there is negligible acidification effect from scrubbers, even in semi-enclosed ocean areas with high traffic levels of scrubber-fitted ships.

4.    How is it ensured that the water discharged into the sea does not harm the environment?

The following discharge water parameters are continuously monitored through water analysis instruments, and the results are securely logged against time and the ship’s position:

(a) pH (with temperature compensation),
(b) polycyclic aromatic hydrocarbons (PAH), and
(c) turbidity.

All are per IMO Resolution MEPC 259(68) 2015 Guidelines for Exhaust Gas Cleaning Systems. The data must be retained on board for a period of not less than 18 months from the date of recording and is subject to auditing and verification by port states and by classification societies, on behalf of flag states.

5.    Do scrubbers on ships using heavy fuel oil (HFO) reduce SOx emissions as efficiently as the use of compliant fuel?

According to several studies, such as a 2014 Fridell and Salo study, scrubbers on ships using HFO remove more than 98 percent of the sulfur oxides from the exhaust, resulting in emissions lower in sulfur oxides than those of marine gasoil (MGO), which is considered the benchmark for the IMO’s 0.5 percent sulfur cap scheduled to be implemented on January 1, 2020. As a result, scrubbers are an approved method of compliance with the sulfur regulation by the IMO, European Union and US Environmental Protection Agency.

6.    Do scrubbers reduce other type of emissions as well?

Independent studies and research demonstrate that scrubbers are capable of removing 60 to 90 percent of particulate matter (PM), including a portion of small PMs (10 and 2.5 micron, and ultrafine) which results in releasing fewer PMs in the atmosphere compared to using MGO.

Scrubbers are also effective in removing black carbon (BC), of particular interest because of the potential impact in Arctic regions.

7.    Will the use of scrubbers increase the speed of the vessels and subsequently CO2 emissions? 

No, there is no link between scrubbers and vessel speed. All practical methods which reduce CO2 emissions are welcome, and the option of slow steaming is one way of reducing fuel usage and CO2 emissions that is always available. Scrubbers do not interfere with this in any way.

8.    What other environmental benefits do scrubbers have? 

Scrubbers allow vessels to continue using HFO, a residual fuel with high energy content that is difficult to refine, providing an environmentally sound outlet for this refinery byproduct. To further process HFO, refineries would need to invest heavily in upgrading their facilities, which would take years to materialize.  

Less refining also means less greenhouse gas emissions associated with HFO versus MGO production. Also, the lower combustion temperatures of HFO result in less NOx production at sea.

9.    Is scrubbing technology new to the shipping industry?

Inert gas systems installed on tanker vessels have been using the same principle as exhaust gas scrubbers for decades. Scrubbers for SOx removal have been in operation in the global maritime sector for over 10 years. Currently, hundreds of vessels are successfully using scrubbing technology to comply with the 2015 sulfur regulation in existing Sulfur Emission Control Areas (ECAs) under rules from the IMO/Marine Environment Protection Committee (MEPC) Guidelines, as well as the EU Sulfur Directive, US EPA Vessel General Permit and US Coast Guard Directives.

Scrubbers for SOx removal have also been in successful use on land for many years all over the world and continue today, including for oil-fired power generation plants.  

10.   Are scrubbers a better way to comply with the IMO 2020 sulfur cap compared to compliant fuel?

Both scrubbers and compliant fuel are equally acceptable and environmentally sound methods of compliance with the 2020 sulfur cap, and scrubber use is an equivalency under Marpol VI for global operations. However, CSA 2020 believes that both are essential tools for significantly reducing the environmental impact of the maritime sector.

CSA 2020

CSA 2020 is an international organization formed with the mission of providing information about the environmental benefits of scrubbers

Members of the CSA 2020 include:
1.    Blystad Group
2.    Cargill Inc.
3.    Carnival Corporation
4.    Delta Tankers and Marmaras Navigation
5.    DFDS Group
6.    DHT Holdings
7.    Eagle Bulk Shipping
8.    Eastern Pacific Shipping
9.    Fomento Shipping
10.  Frontline Ltd.
11.  Golden Ocean Group Limited
12.  Grimaldi Group
13.  Hunter Group ASA
14.  John Samonas & Sons Ltd.
15.  Navig8 Group
16.  DS Norden
17.  Okeanis Eco Tankers
18.  Oldendorff Carriers
19.  Olympic Shipping Group
20.  Pacific Carriers Limited
21.  Safe Bulkers, Inc.
22.  Spliethoff
23.  Star Bulk Carriers Corp.
24.  Torm
25.  Trafigura

Source:maritime-executive

ABN AMRO, Samsung SDS and the Port of Rotterdam Authority launch container logistics blockchain pilot

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ABN AMRO, the Port of Rotterdam Authority and Samsung SDS, the logistics and IT arm of Samsung, have joined forces to launch a pilot based on block chain technology. The ultimate goal is for a complete, paperless integration of physical, administrative and financial streams within international distribution chains. The transportation, monitoring and financing of freight and services should be just as easy as ordering a book online.

Currently payments, administration and the physical transportation of containers still take place entirely via separate circuits, explained Paul Smits, the Port of Rotterdam Authority’s Chief Financial Officer. This results in inefficiency as many parties are involved and everything is organised via paper documentation. For instance, an average 28 parties are involved in container transport from China to Rotterdam. The transportation, monitoring and financing of freight and services should be just as easy as ordering a book online. The development of the pilot was assigned to BlockLab (link is external), which was established by the Port of Rotterdam Authority.

Daphne de Kluis, ABN AMRO CEO Commercial Banking: We will be integrating all these flows in our pilot: from workflow management combined with track & trace to the digitisation of paper documentation such as waybills and the financing of handled freight or services. The ultimate goal is to reach an open, independent and global platform that operates from the perspective of shippers. This will make the logistics chain more transparent and efficient, and millions of euros can be saved in the long term.

We will be using blockchain technology to create this, added Sanghun Lee, President of Samsung SDS EU/CIS. Blockchain offers all parties in the logistics chain the opportunity to coordinate activities using validated data and without central management. Digitisation provides automation, which creates an ultra-efficient logistics chain. What is particularly special about the project is that, for the first time in the rather short history of this technology, we can have different blockchains operating together. This takes place via an overarching ‘notary’ that connects entirely separate blockchains in Korea and the Netherlands.

The pilot involves the multi-modal transport of a container from a factory in Asia to a location in the Netherlands. In the first instance, the pilot will be implemented by the three parties, but the cooperative network will then become open for other parties to join. The pilot starts in January next year, and the results will be announced in February 2019.

Source:portnews

U.S. Carrier Operates in the Arctic for First Time in Decades

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The USS Harry S. Truman and her escorts in Carrier Strike Group Eight are presently operating above the Arctic Cirle in the Norwegian Sea, the first time since 1991 that an American aircraft carrier has traveled so far north. 

"It has been over three decades since carrier aviation has been tested by this environment, and, despite the arduous weather and sea conditions, these men and women are demonstrating this ship can bring a full-spectrum of capabilities to bear anywhere in the world," said USS Truman's commanding officer, Capt. Nick Dienna.

After honing its skills independently, the Truman CSG will join 30 NATO allies and partners in exercise Trident Juncture 2018, which will take place in Norway, the North Atlantic and the Baltic from October 25 to November 23. More than 14,000 U.S. servicemembers, 36,000 partner nation personnel, 150 aircraft, 65 ships and 10,000 vehicles will participate. 

The operation appears to be aimed squarely at the United States' sole near-peer competitor in the Atlantic basin. Russian naval activity in the North Sea and the North Atlantic has accelerated dramatically over the past several years, and the U.S. Navy has reinstituted its 2nd Fleet regional command to focus attention on the new security challenge. 

“The combined and bilateral operations we have conducted in the region over the last several months embody the U.S.’s commitment to our NATO allies and partners,” said CSG Eight commander Rear Adm. Gene Black in a statement. “Together, our maritime partnership creates a global network of navies capable of uniting against any potential threat.”  

The exercise follows shortly after a similar operation involving U.S., French and Italian forces in the Mediterranean, where the Russian Navy has built up a significant presence in recent months. The Russian-allied government of Syria may launch an assault on rebel-held Idlib province in the near future, unless diplomatic efforts to maintain a demilitarized zone prevail. Russia has staged multiple surface vessels and submarines in the Eastern Mediterranean for drills ahead of the expected operation.  

Source:maritime-executive

Public eyes on Hornsea 4

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Orsted is holding several public events next week to provide information on the proposed Hornsea 4 offshore wind farm development off the east coast of England.

The up to 180-turbine project would be located to the west of the under construction 1218MW Hornsea 1 development about 65km off Flamborough Head on the Yorkshire coast, the Danish company said.

It added that proposals for Hornsea 4 are still at a “very early stage” in the development process, but the events will allow local people to find out more about the project, view early plans and to provide initial feedback.

Orsted is preparing a project scoping report for the meetings that will present desk-based research on the existing onshore and offshore environments in the location of the Hornsea 4. 

The first meeting will be on 22 October at Foston on the Wolds village hall, followed by a second at Barmston and Fraisthorpe village hall on the 25 October.

Leconfield village hall will host the third event on 26 October, with the final meeting at Woodmansey vilage hall the following day.

The first three events will run from 2pm to 8pm, with the last one from 10.30am to 4pm.

Orsted project development manager Stuart Livesey said: “Proposals for Hornsea 4 are still at a very early stage and there is a great deal of consultation and assessment work ahead.“

We’d encourage any interested individuals and groups to attend the events, so they can better understand what is being proposed and the project team can capture their thoughts and comments.

“Understanding what issues are most important for the local community is key, and the feedback gathered at these events will help us to shape our proposal going forward.”

Source:renews

Simec Atlantis makes Normandy landing

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Simec Atlantis Energy and the regional government of Normandy are to form a joint venture to develop tidal projects off northern France.

President of the Normandy region Hervé Morin said the venture to be named Normandie Hydrolienne would be created within weeks.

The new company will be majority owned by Simec Atlantis with a minority stake taken by Normandie Participations, the regional government’s seed capital outfit.

Morin said the creation of Normandie Hydrolienne would be a “first step” to develop tidal energy potential in the region.

“Atlantis, in connection with (regional development company) AD Normandie and Normandie Participations, is already exploring ways to collaborate with French energy companies as well as with Normandy industrialists in order to optimize the local spin-offs of the Normandie Hydrolienne project,” he added.

Simec Atlantis has been pursuing tidal opportunities in northern France for several years.

Earlier this year, the Edinburgh outfit submitted a strategic plan to the French government outlining how 1GW of tidal power could be installed off Normandy by 2025 and 2GW by 2027.

Source:renews

BP starts up latest Thunder Horse expansion project in the deepwater GoM

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BP has started up the Thunder Horse Northwest Expansion project in the deepwater Gulf of Mexico, four months ahead of schedule and 15% under budget.

Originally planned for start-up in early 2019, the project adds a new subsea manifold and two wells tied into existing flowlines 2 mi (3.2 km) north of the Thunder Horse platform. First oil was achieved 16 months after being sanctioned.

The new project is expected to boost production at Thunder Horse by an estimated 30,000 boe/d at its peak, taking gross output to more than 200,000 boe/d.

“This latest expansion of Thunder Horse is another important milestone in our efforts to maximize value from our assets in the Gulf,” said Starlee Sykes, regional president of BP’s Gulf of Mexico and Canada business. “Over the past five years we’ve driven up production through safe and reliable operations and bringing on new deepwater projects in a more efficient and standardized way. All this hard work is now delivering results. Our Gulf of Mexico business is thriving.”

It comes after two other major field expansions at Thunder Horse in recent years. In 2017, an expansion of Thunder Horse’s south field – a four-well tieback to the floating hub – boosted gross production at the field by more than 50,000 boe/d. In 2016, BP started up a major water injection project at Thunder Horse to further enhance oil production at the field.

Developed with partner ExxonMobil, the Thunder Horse platform is in more than 6,000 ft (1,829 m) of water and began production in June 2008. It has the capacity to handle 250,000 b/d of oil and 200 MMcf/d of natural gas (gross).

Over the last five years, BP’s net average daily production in the Gulf of Mexico has increased from less than 200,000 boe/d in 2013 to more than 300,000 boe/d and is set to grow further with the addition of the Mad Dog Phase 2 platform in 2021 and other upcoming projects.

Source:offshore-mag

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