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Nine Expands With $493 Million Magnum Oil Tools Acquisition

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Nine Energy Service Inc.said Oct. 15 it plans to beef up its completion tools business with the $493 million acquisition of Magnum Oil Tools International Ltd.

Magnum is a downhole technology provider that has served the global oil and gas industry for over a decade. Headquartered in Corpus Christi, Texas, the company offers proprietary downhole completions products, including dissolvable and composite frack plugs, and other patented consumables with operating facilities in the Permian, Scoop/Stack, Bakken, Niobrara, Haynesville, Marcellus/Utica and Canada.

Nine will acquire Magnum, which does not have any debt, for a combination of about $334 million cash and 5 million shares of Nine common stock valued at $159 million, based on a 30-day value weighted average price as of Oct. 12.

Analysts with Tudor, Picking, Holt & Co. (TPH) said they were not surprised by Nine’s announcement since the company’s hunger for M&A had been well telegraphed. However, the analysts said they considered the deal pricey despite incremental downhole tools exposure being nice to see.

Businesses like this usually ain’t cheap given high returns on capital, free cash flow generation [$300,000 2017 capex] and it looks like Nine will pay about eight to nine times run rate 2018 EBITDA [vs. Nine trading about seven times 2018 EBITDA],” TPH analysts said in an Oct. 15 research note.

Magnum is the number two player in dissolvable plugs, according to the TPH analysts, who noted that 46% of the company’s 2017 revenue was from dissolvables.

Magnum CEO Lynn Frazier, who founded the company in 1985, said he sees the transaction with Nine as a “great next step for Magnum’s business evolution.”

Source:epmag

Scots tidal launches £7m crowdfund wave

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Orbital Marine Power, the new name for Scotrenewables Tidal Power, has launched a crowdfunding initiative with Abundance to raise up to £7m for the construction of its first 2MW commercial floating device.

The Scottish developer plans to build the Orbital O2 turbine next year for installation at the European Marine Energy Centre off Orkney.

Alongside the money to be raised from Abundance investors, the project already has £9m in grants and equity funding, including from the Scottish government. 

The Orbital O2 2MW benefit from five Renewables Obligation Certificates for all electricity it generates.

Orbital Marine Power chief executive Andrew Scott said: “We want the Orbital O2 2MW to be the springboard for a new, sustainable industry built around floating tidal – one that comes from an idea conceived in Orkney, engineered in Scotland and delivered across a UK supply chain, with the ability to change the world in a better way.”

Abundance will offer a 30-month secured debenture paying annual interest of 12%.

Abundance founder Bruce Davis said: “This is a chance for our customers to back one of the newest and most exciting renewable energy technologies and prove it can work on a commercial basis.”

Source:renews

Fairfield contracts two Solstad Offshore PSVs in UK North Sea

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Solstad Offshore has been awarded long-term contracts in the UK North Sea for two of its PSVs by Fairfield Betula Ltd.

Far Symphony has been contracted for 18 months plus options commencing in mid-October this year, while Normand Aurora has been contracted for 12 months plus options, commencing in mid-January 2019. Far Symphony has been supporting Fairfield’s UK operations since April 2017.

Built by Ulstein in 2003 to a P 105 design, Far Symphony measures 86.2 m in length, 19 m in breadth and has a dwt of 4,929. Normand Aurora is also a P 105 PSV, built by Merwede Shipyards in 2005 to the same dimensions.

Solstad Offshore’s international PSV/AHTS executive vice president Jon Are Gummedal said “Solstad is pleased to have been recognised as a preferred supplier by another important North Sea client. This furthers an already commendable relationship with Fairfield which we hope continues well into the future.

Source:osjonline

EU funded program funds new sail system for autonomous boats

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Marine-i, an EU funded program created to advance marine innovation in Cornwall, has made a grant award to the Falmouth-based company, Kiote. This company has created a new concept in sail technology that can propel an autonomous vessel.

Kiote created a sail system that can propel an autonomous vessel while also providing stability in rough seas. The system could be automatically controlled and offer zero-fuel, long-range, high-speed propulsion.

This system aims to address the fact that many unmanned, autonomous vessels are conducting a wide range of tasks at sea, such as surveying and exploration. However, these vessels have to stay at sea for very long periods of time, which places huge demands on their power systems.

Kiote will now carry out computer modelling of the concept to prove its potential, before developing a working prototype.

Marine-i Project Leader, Professor Lars Johanning, said that this project has the potential to present a new marine propulsion in Cornwall, as well as provide work for local marine businesses and suppliers.

Source:safety4sea

Ørsted selects GeoSea for Borssele 1 & 2 foundation and turbine transport and installation

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GeoSea, DEME’s specialist in complex offshore marine engineering projects, has been awarded a contract for the transportation and installation of 94 foundations at Ørsted’s Borssele 1 & 2 offshore wind farm in the Netherlands. Additionally, GeoSea secured the contract for the transport and installation of 94 turbines at the wind farm, DEME said in its press release.

Borssele 1 & 2 is located 23 km from the Dutch coast and will have a total capacity of 752 MW. GeoSea will be responsible for the full scope of the Borssele 1 & 2 foundation installation and scour supply and installation. In this project, GeoSea will transport and install the 94 wind turbine foundation structures including the supply, transport and installation of scour protection on each location. The foundation type for the 94 wind turbines will be a monopile foundation with pre-installed scour protection, an anode cage and a bolted transition piece. Water depths range from 14 to 36 metres.

Under a separate contract, A2SEA The turbine installation experts within GeoSea will also provide installation vessel capacity to transport and install 94 Siemens Gamesa 8 MW turbines at the Borssele 1 & 2 wind farm.

Jan Klaassen, business unit manager offshore renewables for GeoSea: “We are pleased that Ørsted has selected GeoSea for the largest offshore wind farm project in the Netherlands. The contract award demonstrates our leading position as a provider of state-of-the-art, integrated solutions for the offshore wind industry. We look forward to working with Ørsted and to leverage our joint expertise in order to successfully deliver this project.”

Monopile and turbine installation is scheduled in 2020, deploying vessels from the GeoSea fleet.

Source:portnews

Offshore and tug insurance package unveiled

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A new insurance package will cover liabilities and losses incurred during towage, tug, offshore oil and gas and renewables operations.

UK P&I Club has introduced specialist cover to meet the losses incurred and liabilities of its members in the offshore oil and renewables sectors.

This service will be provided in conjunction with Thomas Miller Specialty Offshore (TMSO). It will cover a wide range of operations such as anchor handling, tug and supply, offshore and diving support.

It will also cover offshore construction, pipe and cable laying, seismic research, windfarm support, and ROV/subsea operations.

TMSO has worked with UK P&I Club previously providing cover for offshore construction and P&I industries.

UK P&I Club chief underwriting officer Christopher Brown expects the indepth knowledge of both organisations to enable the club to “thoroughly understand” its members’ needs for liability and incurred losses.

The UK P&I Club was established in 1869 and now insures more than 240M tonnes of owned and chartered shipping. It is managed by international insurance group, Thomas Miller, has US$540M of free reserves and an A (stable) rating from Standard & Poor’s.

There are several insurance issues tug owners need to consider, especially if they are providing salvage services to ships in distress. The benefits and downfalls of salvage Lloyd's Open Form salvage contracts are discussed in detail by law group MFB.

Source:osjonline

UK works on zero emissions plan for shipping

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On the occasion of the first day of Green Great Britain Week, clean shipping experts met on 15 October, to plot the route to zero emissions for the UK maritime sector. The Clean Maritime Council is expected to devise a strategy to reduce greenhouse gas emissions from the sector to improve air quality on and around our waterways, ports and shipping lanes.

The clean maritime plan will be published next year containing policies to tackle emissions from shipping, while ensuring the UK can reap the economic benefits of the global transition to zero emission shipping.

Air pollution is the fourth greatest threat to public health after cancer, heart disease and obesity. In 2016, domestic shipping accounted for 11% of the country’s nitrogen oxide emissions.

In view of these, the Council has brought together experts from across the maritime sector – from industry leaders developing greener vessels, to academics studying the economics of emission reduction.

"The UK maritime industry has a vital role in improving air quality on and around water, and council members will be looking at innovative and practical ways to reduce emissions from the sector. The Clean Maritime Plan will bring new opportunities for Britain’s businesses to design, develop and sell green solutions to this global challenge,"…said Maritime Minister Nusrat Ghani, who opened the Council.

This comes in addition to several current plans underway in UK to tackle shipping emissions:

  • hybrid ferries using battery power alongside traditional engines are being used between Portsmouth and the Isle of Wight and in Scotland
  • shore-side electricity is already in place at Portsmouth (MOD), Fraserburgh and Brodick to reduce engines running at ports
  • Innovate UK is funding a project in Orkney to directly inject hydrogen into the fuel supply of a ferry

The environment is also one of the main strands of the government’s Maritime 2050 strategy, a long term look at the opportunities for the sector for the next 30 years.

Source:safety4sea

Trump Administration Considers Naval Bases for Coal, LNG Terminals

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U.S. Secretary of the Interior Ryan Zinke has expressed an interest in using military or government properties on the West Coast to handle U.S. coal or natural gas exports, thereby circumventing local opposition to fossil fuel projects.

"I respect the state of Washington and Oregon and California," Secretary Zinke told the AP in an interview. "But also, it's in our interest for national security and our allies to make sure that they have access to affordable energy commodities."

Zinke suggested that the long-abandoned base at Adak – a remote island in the Aleutian chain – could be an option as an LNG export hub. He did not name any other specific sites, but suggested the possibility of using "some of our naval facilities, some of our federal facilities" on the West Coast. 

Opponents of fossil fuel exports have succeeded in halting coal and LNG terminals in all three West Coast states, creating an effective blockade between inland energy producers and the Pacific Ocean. Coal mining firms from Wyoming's Powder River Basin – which have been hit hard by the popularity of cheap natural gas – have used Gulf Coast terminals as an alternative for export shipments, but access to the West Coast would offer them the lowest cost of transportation to the growing Chinese market. 

To gain access to the Pacific, these coal producers are fighting back. Coal terminal developer Lighthouse Resources is currently suing the state of Washington in federal court for refusing a key water quality permit, which effectively ended Lighthouse's plan for a facility in Longview. The firm alleges that the permit decision violated the Constitution's Commerce Clause by preventing interstate trade in coal. Washington, backed by a coalition of environmental groups, is contesting the claim, along with a parallel suit in state court. 

While Secretary Zinke's proposal for military export terminals could give coal or LNG producers an alternative route to the sea, the approach would not necessarily exempt their activities from a West Coast state's permitting process. In general, activities on federal military bases are still subject to state-level environmental law.

Zinke's plan was met with skepticism in Olympia, where Washington Governor Jay Inslee raised questions about its viability. "The men and women who serve at our military bases are there to keep our country safe, not to service an export facility for private fossil fuel companies," Inslee said. "This reckless, harebrained proposal undermines national security instead of increasing it, and it undermines states’ rights to enforce necessary health, safety and environmental protections in their communities."

Source:maritime-executive

Rolls-Royce and Intel announce autonomous ship collaboration

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Rolls-Royce and Intel are intending to collaborate on designs for sophisticated intelligent shipping systems that will make commercial shipping safer, the company said in its press release.

This will advance smart, connected and data-centric systems for ship owners, operators, cargo owners and ports, bringing together the expertise in advanced ship technology from Rolls-Royce with components and systems engineering from Intel. With a focus on safety, new ships will have systems with the same technology found in smart cities, autonomous cars and drones.

The new shipping intelligence systems will have data centre and artificial intelligence capabilities as well as sophisticated edge computing throughout that independently manage navigation, obstacle detection and communications. The components embedded in these systems are dedicated to work load consolidation, edge computing, communications and storage, including:

Intel® Field Programmable Gate Array (FPGA) technology will solve design challenges associated with shipping intelligence by providing engineers with a flexible platform and the IP and components for edge operations such as obstacle detection and navigation

Intel® Xeon® Scalable Processors optimised for High Performance Computing (HPC) technology will manage complex modelling of ship functions, with future developments using learning models to support fully autonomous operations

Memory and storage, including Intel® Optane™ DC Persistent Memory and Intel® Optane™ SSD Intel® 3D NAND SSD will ensure ship intelligence systems are reliable, responsive and support extracting maximum value from the data generated through real-time analysis and systems modelling.

Source:rolls-royce

Damen Maaskant Shipyards Stellendam celebrates 70 years

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On Saturday 13 October a party was held at Damen Maaskant Shipyards Stellendam (DMSS) to mark three key events; the 70th anniversary of the foundation of the yard, the departure of Managing Director Frits van Dongen and the appointment of Eric Moerkerk in his place.

Founded by Piet Maaskant and his two sons in 1948 as a repair yard in Bruinisse for the local fishing boats, the yard that is now DMSS has, despite a subsequent move to Stellendam, stayed true to its roots ever since. In that period it has developed a side specialisation in maintaining winches, but it has also built 627 new vessels, many of which have been fishing boats. This has been a cyclical market, but in the current decade the yard has benefited from demand from the offshore industry and, more recently, an upturn once again in the fishing industry. Recent deliveries have included the completion of the first new beam trawler in the Dutch fleet in a decade, and two innovative, tightly designed fly shooter & twin rig vessels.

As well as a celebration of all that has happened over the past seven decades, the party will mark the change in leadership at the yard. Frits van Dongen, who has worked at Damen for the past 40 years, with 25 of those as managing director of DMSS, handed over his responsibilities on the first of October to Eric Moerkerk. Eric was previously at Keppel Verolme, which became part of Damen in September 2016. At that point he moved to DMSS as project manager and ten months later was promoted to deputy director.

Frits has been an enthusiastic ambassador for the fishing industry,” says Jan-Wim Dekker, Chief Products Officer for the Damen Group. “He will continue to carry out support tasks for both Maaskant Shipyards and for our headquarters in Gorinchem while also partial making use (1 or 2 days in the week) of his early retirement entitlement. I would like to thank Frits for his commitment to Damen and wish Eric much success in his new role.”

“I`m happy to be back at home and, as a son of a fisherman and a member of a family that owned a Maaskant beam trawler, it really feels like coming home,” adds Eric Moerkerk. “I look forward to continuing our journey and to setting course for 100 years of Damen Maaskant. Despite the challenging conditions within our home market I am confident that we will continue to deliver sustainable and profitable products for our customers.”

Source:damen