Tuesday, August 31, 2010 2010-046

Maritime Press Clipping

Maritime Press Clipping taken from various internet news sites

SHIPBUILDING

WWW.SOUTHSEAS-INT.COM

Vietnam suspends new head of ship-

building group
Hanoi - The Vietnamese govern-
ment has suspended the head of
one of the country's largest state-
owned enterprises for alleged mis-
management less than two months
after he took office, state media
said Monday.
Tran Quang Vu, the chief executive
officer of Vietnam Shipbuilding In-
dustry Group (Vinashin), was sus-
pended Friday decision to allow an
investigation into Vinashin's recent
operations, the state-run newspa-
per Thanh Nien quoted Nguyen
Xuan Phuc, head of the government
office, as saying.
The suspension occurred less than a
month after police arrested Vinash-
in chairman Pham Thanh Binh for alleged mismanagement that led the company to the brink of bankruptcy.
The government appointed Vu, the former chief executive officer of one of Vinashin's top subsidiaries, chief
executive of Vinashin on July 1, but media reports said Nam Trieu Shipbuilding Industry Corporation also got
into financial trouble under Vu's management.
Vinashin got into financial difficulties when it diversified beyond its core business and the global recession hit its
revenue. It left the company unable to keep up with its debt repayments and resulted in salary cuts for more
than 70,000 employees and the dismissal of 5,000 others, the government said.
As of the end of June, Vinashin had total assets worth 90 trillion dong (4.63 billion dollars) and debts in different

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SHIPBUILDING

currencies totaling 4.6 billion dollars, the government said.

Several economists have criticized the government for offering Vinashin unjustified state support, including a
750-million-dollar state loan in 2005 financed by a bond sale.
In a move to rescue Vinashin, the government last week asked local commercial banks to allow Vinashin to sus-
pend payments on its debts and negotiated with international creditors.
Source: earthtimes.org

Yangzijiang in talks to buy more ship-

yards

Yangzijiang Shipbuilding Holdings Ltd., the biggest Chinese shipbuilder listed in Singapore, is in talks to buy ship-
yards after an industrywide slump in orders last year damped prices.
"We are in active negotiations," Zhang Yao, head of the company's board of directors' office, said on Aug. 23 by
phone from Jiangyin, eastern China, without naming any targets. "Asset prices for potential acquisitions are rea-
sonable and may become even more so as some smaller shipyards may have cash-flow problems."
The company in June bought control of Jiangsu Changbo Shipyard Co. as shipping lines begin to resume buying
new vessels following the end of the global recession. China has also encouraged consolidation in the shipbuild-
ing industry to reduce excess capacity after orders slumped 55 percent last year, according to government fig-
ures.
"Demand is slowly recovering and the orders are starting to stream in," Zhang said. The company is seeing more
demand for container ships rather than dry-bulk vessels, he said.

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SHIPBUILDING
The shipbuilder is also trying to boost its scraping and repair operations, as well as seeking to develop a marine-
engineering business, to help guard against fluctuations in vessel prices, Zhang said.
Yangzijiang Shipbuilding closed unchanged at S$1.51 in Singapore trading yesterday. The stock has risen 25 per-
cent this year compared with a 0.9 percent gain for the Straits Time Index.
The shipbuilder said earlier this week that it had agreed to buy land and a wharf for 107.7 million yuan (US$16
million) in the eastern Chinese province of Jiangsu, to expand its shipbuilding capacity.
The company bought 51 percent of Jiangsu Changbo for 51 million yuan in June and injected 105.1 million yuan
to increase capital reserves. Jiangsu Changbo had an order book worth US$338 million, comprising 20 vessels
scheduled to be delivered between the second half of this year and the middle of 2012, according to a June 28
statement.
Source: etaiwannews.com

Yangzijiang clinches 28 shipbuilding

deals worth US$915m
SINGAPORE : Mainboard-listed Yangzijiang Shipbuilding has entered into 28 shipbuilding contracts with a total
value of about US$915 million since July 1.
The orders are for containerships and dry bulk carriers, which will be scheduled for deliveries from year 2011 to
2013.
Out of the 28 contracts, 5 contracts worth about US$127 million have been factored into the order book after
receiving initial deposits from the ship-owners.
Another 15 contracts with the value of some US$490 million will be effective upon receiving the initial deposits
from the ship-owners.
The remaining 8 contracts worth about US$$298 million are options to be exercised by the ship-owners.
The China-based group said these new contracts will not have a significant impact on its earnings for the finan-
cial year ending 31 December 2010.
Yangzijiang added that since July 1, it has successfully delivered 13 more vessels.
It said, in total, the group has delivered 35 vessels so far in 2010 and will deliver 13 more vessels as per sched-
uled for the rest of the year.
Source: channelnewsasia.com

S.KOREA'S POSCO INKS DEAL TO TAKE

OVER DAEWOO INTERNATIONAL
South Korea's top steelmaker POSCO (KSE:005490) signed a final deal with the country's state debt
clearer on Monday to buy a controlling stake in Daewoo International Corp. (KSE:047050) for 3.37 trillion won
(US$2.8 billion).
Under the deal, POSCO will buy a 68 per cent stake, or 68.68 million shares, in the local trading company, Korea
Asset Management Corp. (KAMCO) said, adding that the sale price is lower than the initial offer of 3.46 trillion
won.
KAMCO holds a 35.5 per cent stake in Daewoo International. Other creditors, including the Export-Import Bank
of Korea, have a combined 32.65 per cent interest in the trading company.
The formal deal came after POSCO was chosen in May as the preferred bidder for Daewoo International, whose
business line ranges from trading to overseas energy development.
POSCO expects the acquisition to help the steelmaker procure raw materials due to the trading firm's energy
exploration business and global distribution network.
Daewoo International has been developing gas fields off the coast of Myanmar and plans to explore a nickel
mine in Madagascar. The company has been exploring nickel, copper and uranium mines in Australia and Boliv-

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Maritime Press Clipping Tuesday, August 31, 2010

SHIPBUILDING

ia.
The steelmaker said earlier it will develop Daewoo International into a global company with more than 100
overseas units, raising the trading firm's annual sales to 20 trillion won by 2018, nearly twice the company's
2009 sales of 11 trillion won.
Meanwhile, Chung Joon-yang, chief executive of POSCO, said the steel giant has no plan to take over Daewoo
Shipbuilding & Marine Engineering Co. (KSE:042660), South Korea's No. 2 shipbuilder.
In 2008, POSCO formed a consortium with GS Group, an energy and construction conglomerate, to jointly bid
for a controlling stake in the shipbuilder, but the group backed away from the bid, rendering the steel giant inel-
igible.
Chung also said that nothing has not been decided yet on the sale of a 24 per cent stake in Kyobo Life Insurance
Co., the country's third-largest local insurer owned by Daewoo International.
Shares of POSCO rose 2.79 per cent to 498,000 won as of 11:52 a.m. on the domestic bourse, and shares of
Daewoo International gained 2.34 per cent to 32,750 won.
Source: tradingmarkets.com

Jadaf Dubai in pact with Goltens

Dubai: Jadaf Dubai, one of
the oldest ship repair yards in
the Arabian Gulf and a part
of Drydocks World Group,
has awarded a 25-year lease
of two plots to Goltens.
The company recently signed
a long-term ground develop-
ment lease agreement
(Musataha) with Goltens, a
global ship repair and
maintenance specialist.
The agreement with Goltens
for a shipbuilding and ship
repair facility at the Industrial
Precinct of Dubai Maritime
City was signed by Hamad Al
Maghrabi, managing director
of Jadaf Dubai and director,
As part of an agreement with Goltens, Jadaf Dubai will undertake a shipbuilding Shiplift, and Paul Friedberg,
and ship repair facility at the Industrial Precinct of Dubai Maritime City.Image president of Goltens Co Lim-
Credit: Supplied picture ited — the Dubai branch of
Goltens Worldwide Services,
at a private ceremony held at the Intercontinental Hotel, Dubai Festival City.
Under the Musataha lease agreement, DMC Industrial Precinct plots 6 and 7 measuring about 23,000 square
metres will be leased to Goltens for a period of 25 years. During the past five years, Goltens has established sev-
en new global repair centres, lifting its annual ship repair revenue from $90 million (Dh330.4 million) in 2005 to
approximately $200 million in 2010.
The new agreement will strengthen Jadaf Dubai's stronghold in the shipbuilding and ship repair market. The
Industrial Precinct is a part of Maritime City that is dedicated to ship repair facilities, yacht repair and manufac-
turing, as well as workshop units that service the needs of the maritime industry as a whole.
Al Maghrabi said: "Goltens has been one of our key partners for 22 years and they have proved to be outstand-
ing service providers. Goltens have demonstrated strong capabilities in all-inclusive services in ship repair and
maintenance and our partnership with the company confirms our commitment to excellence and is in line with

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Maritime Press Clipping Tuesday, August 31, 2010

SHIPBUILDING

our policy of facilitating businesses that enhance Dubai's standing as the premier maritime hub in the region."
Paul Friedberg, president of Goltens Worldwide Service, said: "The new repair facility places us in a better posi-
tion to offer a comprehensive range of ship repair and maintenance solutions to our growing customer base in
the region."
A new advanced ship lift facility has been built at Dubai Maritime City and is managed and operated by Jadaf
Dubai. Occupying 106 hectares of land oriented around a central vessel basin, which is just under half of the 2.4
million square metres of the total area of Dubai Maritime City, the new facility has open sea access, ready ac-
cess to an expanding market, opportunities for networking among entities having similar interests, advanced
and efficient services — all in close proximity to the commercial districts of Dubai.
The new site has enhanced capability ship lifts of 3,000 and 6,000 tonnes each, 700-tonne travel lifts and offers
other value-added services geared to meet needs of small vessel owners.
Source: gulfnews.com

ENGINEERED
TRANSPORT
MALAYSIA SINGAPORE MIDDLE EAST
JWS Engineered Transport Sdn Bhd JWS Engineered Transport Pte. Ltd. Joint World Lifting Services Est
23E, Worldwide Business Park, 192 Waterloo Street, Shop 3 Mussaffah Sanaya MW 4,
Block 2, Jalan Tinju 13/50, #05-01 Skyline Building, Plot No 130,
Section 13, 40675 Shah Alam, Singapore 187966 Mussaffah, Abu Dhabi
Malaysia. UNITED ARAB EMIRATES
Tel: 603-5511 6575 Fax: 603-5511 6585 Tel: (65) 6337 9959 Fax: (65) 6336 4757 Tel: +971 2 5506 305 Fax: +971 2 5506 306

WWW.LOADOUT.NET

Hyundai Heavy builds drill ships for the

first time
Hyundai Heavy Industries Co., the world's leading shipbuilder, said Saturday that it has successfully built two
drill ships.
It marks the first time that the South Korean company has built such ships used to explore for oil in deep water.
The drill ships, 229.22 meters long, 36 meters wide and 18.3 meters high, will be delivered by May 2011 after
tests.
Hyundai Heavy said it is currently working on building its third drill ship.
In the first seven months of the year, Hyundai Heavy earlier said orders for ships and plants have more than
doubled to US$11.3 billion compared to the same period in 2009.
Sales gained 4.5 percent in July from a year earlier to 1.65 trillion won, it said.
Source: tradingmarkets.com

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Maritime Press Clipping Tuesday, August 31, 2010

SHIPBUILDING

Hanjin books 56 vessel orders worth

$4.9B

SUBIC BAY FREE PORT—Korean shipbuilder Hanjin Heavy Industries Corp.-Philippines (HHIC-Phil) has booked 56
new building projects for its shipyard at Subic’s Redondo Peninsula, putting projected sales for all its vessel or-
ders at $4.9 billion, a return which is more than double the firm’s total investments of $1.9 billion in the past
four years.
According to Taek Kyun Yoo, HHIC-Phil’s general manager for external business, the Korean shipbuilder contin-
ues to receive ship orders, thereby increasing the firm’s manpower requirements to about 25,000 workers by
2012.
“Hanjin has contracted the construction of 20 more vessels worth about $1.2 billion in the first half of this
year,” Yoo said in a recent briefing conducted for Zambales Gov. Hermogenes Ebdane Jr. and other provincial
officials at the HHIC-Phil headquarters here.
The new contracts, Yoo also told Ebdane and his group, would progressively increase the number of shipyard
workers from 16,000 in 2008 to 22,000 by the end of 2010, to 24,000 in 2011, and 25,000 in 2012.
Yoo also said in his presentation that Hanjin had already delivered 14 vessels since starting its maritime business
here in 2006 with an initial investment of $750 million.
The Subic-made ships had so far ranged from container carriers, like the Panamax-type MV Argolikos, the first
to be delivered in July 2008, to the Aframax-type crude oil tanker Eser K, which was delivered in March.
Yoo said, however, that the 56 vessels in Hanjin’s order book includes 34 bulkers that would range from
175,000 to 250,000 deadweight tons (DWT); 16 container ships with capacities ranging from 3,600 to 12,800
twenty-foot equivalent units (TEUs); and six tankers, two of which will be ultra-large crude containers with a
capacity of 320,000 DWT.
With the new orders, Yoo said Hanjin has projected its sales performance to reach about $700 million this year,
$935 million in 2011, and $1.28 billion in 2012.
Noting Hanjin’s projections, Ebdane said the growing job prospects at the Hanjin shipbuilding facility “augurs
well for the development of the Zambales province, and to local efforts to strengthen the economic empower-
ment of Zambaleños.”
For this, Ebdane expressed appreciation of efforts by HHIC-Phil and the Subic Bay Metropolitan Authority
(SBMA), the manager of the Subic Bay free port, for providing more local employment opportunities.
Ebdane said that for its part, the Zambales provincial government “would help out in the selection of qualified
shipyard workers” through its Public Employment Services Office.

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SHIPBUILDING

“We will be your partner in this effort, as you and the SBMA will be ours in making Zambales more progressive,”
Ebdane said.
Yoo added that since 2007, Hanjin has trained some 22,000 welders, painters, pipe fitters, electricians, machin-
ists and outfitters at its skills-training center in the Subic Bay free port. The trained workers were mostly hired
later at the Hanjin shipyard, he said.
In a statement earlier, the SBMA said Hanjin has remained the topnotch export producer since last year by
posting freight on board (FOB) value totaling $372.74 million in the first half of 2010.
SBMA Administrator Armand Arreza also said the SBMA expects Subic’s export FOB value to grow in the coming
months, as Hanjin and other free-port enterprises roll out more products due to brightening prospects in global
trade.
Arreza added that Hanjin’s new projects would boost not only local employment, but also the shipbuilding skills
of Subic workers.
“This, in turn, would increase the attractiveness and competitiveness of the Subic Bay free port as an invest-
ment destination with a readily available pool of highly skilled manpower,” he added.
Source: businessmirror.com.ph

Ulstein: 10 X-Bow vessels to hit market

Norwegian shipbuilder Ulstein has recently revealed it has ten new X-Bow hull design vessels under construc-
tion, building on the 20 it has already delivered to the market. The inverted bow concept was launched in 2005.
Initially developed for offshore support vessel, Ulstein says new markets are being explored where the X-Bow
can be delivered. Recently the XDS 3600 deepwater drillship was introduced to the market, being the largest X-
Bow ever developed up to date.
Ulstein has developed two concepts for turbine installations for the offshore wind energy market, the Windlifter
system and the F2F (floating to fixed) concept.
“The Windlifter is a dynamically positioned vessel suitable for single lift offshore wind turbine installations, and
unlike jack-up units is not limited by water depth. The vessel with an Ulstein X-Bow transports four turbines at
the same time and uses a modular, mechanical system to skid the turbines from the vessel onto the founda-
tion,” said the head of customised design at Ulstein, Bob Rietveldt.
“As a company we invest heavily in research and development projects and allocate approximately NOK100 mil-
lion (US$16.5 million) annually to innovation and new development,” said Tore Ulstein.
Source: bairdmaritime.com

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OFFSHORE & ENERGY

Keppel AmFELS on track to deliver next

Rowan rig
Keppel Offshore & Marine's wholly owned U.S. subsidiary, Keppel AmFELS L.L.C., in Brownsville, Texas, is on
track to deliver the second of four EXL rigs to Rowan Drilling Companies, Inc. on time, within budget and with
zero lost-time incidents.
The rig, christened Rowan EXL-II last Friday, is scheduled for delivery August 31 and will depart the Keppel Am-
FELS shipyard within the next month. It is expected to be deployed to Trinidad for three years under contract
with BP Trinidad and Tobago.
Construction for the Rowan EXL-II began in April 2008. Built as an enhancement of the LeTourneau Super 116E
design with leg lengths of 511 ft and a capable hook load of 2,000,000 lb, the ABS-classed rigs employ the latest
state-of-the-art technology to drill high-pressure, high-temperature and extended-reach wells in jack-up mar-
kets throughout the world. They are capable of operating in 350 ft of water or more and drilling to a depth of up
to 35,000 ft.
Keppel AmFELS is currently constructing two other similar new build jack-up rigs for Rowan. The construction of
these rigs is progressing well and is within schedule and budget.
Mr. David Russell, President of Rowan Drilling Companies, said, "We continue to see a strong demand for higher
-specification jack-ups worldwide. The Rowan EXL rigs, built to distinction with Keppel AmFELS's experienced
project management and production capabilities, solidly augment our premium fleet."
Mr. G.S. Tan, President of Keppel AmFELS, said, "Keppel O&M's Near Market, Near Customer strategy gives us
the leverage to better understand and support our customers in the local markets where they operate.
"The Rowan EXL-II is another well-executed project, proving our track record in this region and strengthening
the partnerships with our repeat customers such as Rowan."
Since its establishment in 1990, Keppel AmFELS has built up its facilities and equipment to become the what
Keppel O&M says is most well equipped offshore shipyard in the Gulf of Mexico. The yard engages in the con-
struction, refurbishment, conversion, life extension and repair of a complete range of mobile drilling rigs and
platforms. Its comprehensive facilities are first class, with a dry dock capable of docking the largest semisub-
mersible drilling units and a modern steel processing plant.
Source: Marine Log

Baghdad says RWE gas deal with Iraqi

Kurds "illegal"
Iraq's Oil Ministry slammed as " illegal" an agreement signed between RWE, the German energy firm, and the
Kurdish regional government (KRG) to help build infrastructure for possible future gas supply for the Nabucco
gas pipeline project.
"The export of Iraqi crude oil, gas and their derivatives are exclusively under the authority of the Oil Ministry of
the central government in Baghdad and its State Oil Marketing Organization (SOMO)," The ministry said in a
statement obtained by Xinhua on Monday.
"Any contracts or agreements signed out of the legal framework formally considered in SOMO are null and
void," the statement said.
The ministry's statement came as the German RWE announced on Friday it has signed a gas cooperation agree-
ment with the KRG "to develop and design domestic and export gas transportation infrastructure, creating a
route to market for Kurdistan's gas reserves."
The RWE also said the cooperation agreement is expected to enable gas supply from the Kurdish region to be
transported to Turkey and Europe via the Nabucoo pipeline.
Iraq's central government in Baghdad opposes unilateral oil and gas deals signed by the KRG as dispute over

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OFFSHORE & ENERGY

energy resources and revenue sharing is still unsolved more than seven years of the topple of the former presi-
dent Saddam Hussein's regime.
Source: Xinhua

Karoon signs farm-in agreement with

Petrobras
Karoon Petroleo e Gas, a wholly owned subsidiary of Karoon Gas Australia, has executed a farm-in agreement
with Petroleo Brasileiro, or Petrobras, to acquire a 20% interest in blocks BM-S-41/ S-M 1352, Maruja Prospect,
and BM-S-41/ S-M 1354, Quasi Prospect, located in the offshore Santos Basin, Brazil.
Subject to obtaining regulatory approvals in Brazil (including from the Brazilian Petroleum agency), Karoon will
earn a 20% interest in both blocks by funding 35% of a well in the Maruja Prospect, as part of a two well drilling
program. Karoon will then pay its equity share of continued work and reimburse Petrobras for sunk costs, Ka-
roon said.
Drilling has commenced in the Quasi Prospect and drilling in the Maruja Prospect is expected to commence in
September 2010. Results from both wells are expected by the end of 2010. Petrobras is the operator and the
parties are currently finalizing the terms of a joint operating agreement to govern operations on the blocks
moving forward.
Source: tradingmarkets.com

Second oil find sparks new wave of North

Sea interest
A second North Sea oil discovery in just a week has sparked hopes of a revival for the industry in Scotland.
Another giant find is expected to be announced following a discovery at the Cladhan field, north east of Shet-
land, and is understood to hold between 100 million and 200 million barrels.
For both Encore Oil, a London-listed explorer and Wintershall, the oil arm of BASF, the German chemicals giant,
it is the second big find of the summer.
It comes just days after it was revealed that Wintershall’s first discovery, estimated at 60 to 100 million barrels,
was made at its Blakeney well, 150 miles east of Aberdeen.
The Cladhan find follows a string of coups that has triggered a new wave of international interest in the North
Sea and could also spark takeover interest in Encore, the only London-listed explorer in the Cladhan prospect.
The share price of Encore has tripled since June when the 300- million-barrel Catcher field was identified. It was
hailed as the biggest find in the North Sea since the 550-million-barrel Buzzard field, 60 miles off the Aberdeen
coast, was discovered in 2001.
The consortium first drilled Cladhan in 2008 when the result was inconclusive, but they tried again this month
on the back of geological data.
The companies are now likely to drill horizontally to determine the total size of the fields and conduct flow tests
to establish how much can be extracted.
However, environmentalists fear the Shetland find could result in deep-sea drilling.
MPs announced last month there is to be an inquiry into the Gulf of Mexico spill and the energy and climate
change committee will examine the hazards of drilling in deeper waters west of Shetland. Its inquiry will also
look at whether the Government was right to rule out a moratorium on deep-water drilling.
But just last week oil giant BP abandoned plans to drill off the coast of Greenland, amid suggestions the Gulf of
Mexico spill could be a factor in its decision.
Campaigners at Greenpeace said that while oil companies may be “licking their lips” at the prospect of a second
find, it was time to pause.

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OFFSHORE & ENERGY

Ben Aylife, senior climate campaigner at Greenpeace said: “The Atlantic frontier off the coast of Shetland is one
of the most unique, pristine, areas of wilderness in the UK, and home to unique deep water corals and virtually
a whale motorway. The idea of drilling there at greater depths is questionable in the extreme.”
The Blakeney well discovery, reported in The Herald last week, is sizeable in terms of recent finds, which typical-
ly come in at around 25 million barrels for wells in a sector where production is now into its fifth decade.
The size of oil and gas discoveries in the North Sea has been dropping in recent years. A spokeswoman for the
Scottish Government said the recent announcements prove the North Sea still has a huge amount to offer.
She added: “This underlines why it is essential that Scotland benefits fully from its own resources.
“These discoveries show that huge quantities of oil remain to be extracted, and make it imperative that a
Scottish oil fund – similar to Norway’s, which is now worth around £300 billion – is now established to help se-
cure this vast wealth for future generations.
“The most recent Government Expenditure and Revenue report showed that in 2008-09, with a geographical
share of North Sea oil revenues, Scotland was £1.3bn in surplus, compared to a UK deficit of almost £50bn.
“At a time when we are facing unprecedented budget cuts from Westminster, the case for Scotland being given
its fair share of North Sea resources is rapidly becoming unanswerable.”
Source: heraldscotland.com

BAM Clough receives letter of intent for

contract in PNG
BAM International bv, operating company of Royal BAM Group, together with engineering and construction
company Clough Ltd has received a Letter of Intent from Chiyoda JGC Joint Venture to proceed with the design
and construct of the LNG and condensate offloading jetty for the Papua New Guinea (PNG) LNG project. The
contract is valued at approximately USD 260 million (more than EUR200 million). Engineering, procurement and
planning work for the project has already commenced under a separate work order.
The LNG and condensate jetty will be constructed adjacent to the planned LNG facility twenty kilometres north-
west of Port Moresby on the coast of the Gulf of Papua, utilising an anticipated workforce of up to 500. The
scope includes the design and construction of a 2.4-kilometre-long trestle with substation platform, loading
platform and single berth. The contract period is 30 months, completion is scheduled for year-end 2012.
BAM Clough JV is a 50/50 joint venture between BAM International bv and Clough Ltd. Established in 1965, the
joint venture has successfully delivered several jetty projects for the oil and gas sector in that 45-year period.
Source: minsk.by

Chevron to explore for oil off Liberia

MONROVIA (Reuters) - Chevron Corp has signed a deal with Liberia to explore for oil and gas in three deepwater
blocks off the West African country's coast, an official in the president's office said.
The exploratory work, which has been submitted to parliament for approval, is expected to begin in the fourth
quarter of this year and will last three years, the official said on Monday.
Liberia is slowly recovering from nearly 15 years of conflict that only ended in 2003. Prospects for tapping into
oil were boosted last year when a consortium led by Anadarko Petroleum Corp made a find in Sierra Leone,
near Liberia's border.
"We are delighted to welcome Chevron as a partner for Liberia to explore out oil and gas assets," Liberian presi-
dential press secretary Cyrus Badio said on Monday.
"Along with its involvement, Chevron will bring the latest technologies, best practices in transparency and effi-
ciencies and an excellent record of community and social responsibility."
No further details were given on the deal.
The gradual return to peace has led to mining and agriculture companies launching projects worth billions of
dollars in Liberia, but its development remains fragile and elections are due next year.

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OFFSHORE & ENERGY

President Ellen Johnson Sirleaf, who came to power in 2006, is likely to stand for re-election.
She has been praised for restoring stability and encouraging investors, which include ArcelorMittal and the
world's biggest miner BHP Billiton, though critics say she has failed to crack down on corruption.
Source: Reuters

OHT is a Norwegian shipping company, owning and

operating four semi-submersible heavy-lift vessels. The
vessels are suitable for dry transportation of offshore
facilities and equipment, up to app. 40,000 tons.
The company is the second largest heavy-lift operator in
the world

Gran Tierra Energy buys exploration and

production properties in Brazil
CALGARY - Gran Tierra Energy Inc. (TSX:GTE), a Calgary junior which focuses on oil and gas exploration and pro-
duction in South America, says it has finalized a deal to acquire oil and gas interests in Brazil.
The company said Monday it will pay Alvorada Petroleo S.A. US$22.6 million and commit to drilling two wells in
2011 to acquire a 70 per cent working interest in several properties in the on-shore Reconcavo Basin in Brazil.
The transaction is subject to Gran Tierra obtaining regulatory approvals from the Brazilian government.

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OFFSHORE & ENERGY

"This farm-in opportunity presents Gran Tierra Energy with a solid entry-point into Brazil, with new light oil re-
serves, production and exploration upside, including near-term drilling opportunities," Dana Coffield, president
and CEO, said in a release before stock markets opened.
"Gran Tierra Energy continues to evaluate additional exploration and production opportunities in Brazil, with
the intention of expanding our presence in Brazil's growing oil and gas sector."
Under terms of the agreement, Gran Tierra will become the operator of Blocks REC-T-129, -142, -155 and -224
and has committed to pay 100 per cent of the costs of drilling an exploration well on each of Blocks REC-T-129
and -142.
The exploration properties are located 70 kilometres northeast of Salvador, Brazil in the prolific Reconcavo Ba-
sin. This basin covers an 10,000 square kilometres and contains 129 oil and gas fields, and has produced over
1.5 billion barrels of oil to date.
Gran Tierra holds interests in producing and prospective properties in Argentina, Colombia, Peru, and Brazil.
Source: winnipegfreepress.com

Bristow secures billion deal

Three Sikorsky S92 helicopters will fly from Flesland heliport for Statoil from 15 January 2012. The ten year deal
also includes a new hangar and office facilities at Flesland.
The contract has a value of more than two billion Norwegian kroner.
Secures competition
“Statoil is thus secured helicopter capacity for a long time,” says Kjell Kristoffersen, vice president of the opera-
tions and maintenance unit in Statoil. “This long-term agreement ensured good competition as several helicop-
ter companies participated in the tendering process.”
Replacing the helicopter fleet to the latest generation of helicopters fitted with the latest in safety equipment, is
a harmonised strategy on the Norwegian continental shelf, according to Statoil.
Replacing the entire fleet
“This contract has ensured that we are nearing our goal of replacing our entire helicopter fleet with the very
latest in tested helicopter technology,” says Hans Jakob Hegge, head of Statoil’s operational development unit.
“The transition to new technology is one of the most important measures to improve helicopter safety.”
Statoil has flights from six helicopter bases along the Norwegian coast. The Bergen base is the largest and the
only location with two helicopter contracts.
Two helicopter companies are currently contracted by Statoil on the NCS, Bristow Norway and CHC Norway.
From 2012 Bristow Norway will fly Statoil personnel from Sola, Bergen and Hammerfest, while CHC Norway will

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OFFSHORE & ENERGY

fly from Bergen, Florø, Kristiansund and Brønnøysund.
Source: offshore247.com

DOF Subsea Norway got Shtokman con-

tract
The subsea service company will do a geotechnical survey in cooperation with PeterGaz Ltd.
DOF Subsea Norway will commence the work in early September using its own vessel Geobay, reports Subsea
World.
The work consists of offshore geotechnical survey, onshore testing and reporting. The company will manage the
project primarily from their main facilities in Bergen in Western Norway along with assistance from their newly
established subsidiary DOF Subsea Arctic in Moscow.
Source: barentsobserver.com

Scotland Announces the First Offshore

Floating Wind Turbine by Statoil
The Government of Scotland has announced the completion of its 2.3 MW prototype, floating offshore Hywind
wind turbine module positioned 10 KM offshore at Karmoy in Norway in 200 m deep water. The offshore wind
turbine is constructed by Statoil, an international energy company from Norway.
The floating wind turbine designed to work up to 700 m depth is said to be performing beyond its rated capacity
and delivering power to the grid since the starting of the tests from September 2009. The government is plan-
ning to install three to five such units in its shore lines to check the commercial feasibility of the project. Statoil
is planning to test the wind turbine in places off Norway and Maine to check its functionality and a decision on
this move will be taken next year.
Earlier Alex Salmond, Scottish First Minister, met the officials from Statoil and discussed the move of the compa-
ny to perform commercial testing for the Hywind floating wind turbines in deep sea waters either off the coast
of Aberdeenshire or Lewis. The minister mentioned in the press release about the higher offshore wind energy
potential of his country and its intention to develop a suitable renewable energy technology to harvest the wind
potential. He added that while the offshore wind power generation requires around £30 billion in investments it
also offers around 20,000 jobs for the people of the country while drastically reducing greenhouse gas emis-
sions.
Source: azocleantech.com

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Dry bulk market stabilizes, albeit at a

falling note
The dry bulk market’s leading benchmark, the Baltic Dry Index (BDI) ended the week at 2712 points, a marginal
weekly loss of 1.6% or 44 points versus the previous week. As a result, August’s monthly average is now at 2417
points, significantly improved over last
month’s average of 1910 points. Ac-
cording to a weekly report prepared by
N. Cotzias Shipping Group, the BDI is
set to increase before year end and
possibly peak beyond the 5,500 points
mark. “For this increase to be effective
some resistance levels have to be met
and surpassed and some other condi-
tions have to be met”. Commenting on
this week’s performance of the mar-
ket, the Piraeus-based shipbroker said
that it was a mixed feeling week, a
breather. “The larger capes and panamaxes suffered minor losses and the smaller supramaxes and handymaxes
posted minor gains. Overall the general index fell and the overall sentiment is that the overwhelming increased
was too rapid and had to correct somehow. Still there are many ships chasing lesser/fewer cargoes and this im-
balance of the market is self-implicated and will sooner become far worse than better. Have owners been
shooting at their own feet? Definitely yes!” the broker mentioned.
Still, the shipping markets seem to have regained a great share of the heavy losses encountered during the first
two months of this summer period and “before August says “kalo xeimona” - a Greek traditional wish for a
pleasant winter - to us, we will be in a positive situation where we recovered a great percentage share of the
heavy losses in both the indices and actual daily freight hire. The shipping markets were greatly assisted, by the
added momentum that were offered in the past 2 weeks by the Capes and the Supramaxes. However the un-
derlying global market fundamentals still pose a great degree of an uncertainty level although overall the pic-
ture looks much better than 2 months ago. China has imposed their game rules in the iron/ore pricing agree-
ment, and the country’s size and import appetite on its own have such great weight that they can and have
brought the per tone prices to the desired levels. Russian grain exports embargo/ban went into action as from
the 15th August until 31st December 2010, and the Russian exports will be limited to 60-65 million tones for
2010 as opposed to 97 million tones for 2009. This is a serious quantity reduction that will be needed to be
shipped from alternative locations and this will definitely act positively on shipping freights as the per ton mile
cost will increase. A notable slowdown in period and time charter fixtures was noticeable this week and a total
of only 84 fixtures were recorded compared with 112 of last week” Cotzias said.
Meanwhile, in a separate report by shipbrokers Golden Destiny, last week ended with 29 sales reported in the
secondhand and demolition market. The highest activity has been recorded in the newbuilding market with 48
orders reported in total. “The secondhand market has been marked with almost 52.17% negative yearly change
with 11 vessels reported to have changed hands this week equalling a total amount of money invested around
$185,800,000. In the demolition market, 18 vessels have been headed to the scrap yards of total deadweight
356,048 tons, while in 2009 14 vessels reported for scrap indicating a positive yearly change of around 28.5%. In
the newbuilding market, 48 vessels reported to have been ordered equalling a total deadweight around
4,490,500 tons. The dry sector has held the largest share of newbuilding contracts, equalling a total deadweight
of 2,154,500 tons, with kamsarmaxes being the most popular vessel type. The Greek presence has been noticed
this week in the secondhand market with 2 transactions, one in the handysize bulkcarrier sector and one in the
MR tanker sector, and in the newbuilding market with 5 transactions, 1 in the kamsarmax bulkcarrier sector, 2
in the handysize bulkcarrier sector and 2 in the container handy sector. The cumulative amount invested by
Greeks can be calculated only in the secondhand market, which was $ 11,000,000 , since in the newbuilding
market the relevant information has not been disclosed” Golden Destiny concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

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Yangtze River now world's busiest ship-

ping river

The Yangtze River has become the world's busiest navigable river, according to China Youth Daily. Along with
the deepening of China's opening up policy, the number of the foreign ships that sail into the Yangtze River,
Asia's largest river, increased sharply from an average of hundreds per year at the beginning of the reforms up
to an average of hundreds per day.
Statistics from the Changjiang Pilot Center show that the center has accumulated pilot work of more than
360,000 ships since the Yangtze River opened. In 2009, the number of ships reached over 50,000, of which for-
eign ships numbered, 37,500, accounting for almost 70 percent.
The rapid increase of foreign ships led to an average double-digit yearly growth of the annual volume of goods
transported, rotation volume of goods transported and the port throughput in the Yangtze River.
In 2009, the volume of goods transported on the main lines of the Yangtze River reached 1.33 billion tons, more
than 60 percent of the national total volume of goods transported in inland rivers, two times than that of the
Mississippi River in the United States, three times than that of Europe’s Rhine river, and the Yangtze River has
outranked inland rivers for five consecutive years.
Source: People's Daily Online

Canada rescues cruise ship in Arctic

Ocean
Passengers aboard a cruise ship that ran aground on a rock in the Arctic Ocean on August 27 are finally being
ferried to a small town called Kagluktuk by the Canadian Coast Guard.
The ‘Clipper Adventurer’ is carrying 128 passengers and 68 crewmembers, all of who are safe. The vessel has a
slight list but remains stable.
A coast guard icebreaker is currently ferrying the passengers to land.
Source: bairdmaritime.com

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Korea, Singapore sign maritime MOU

The Maritime and Port Authority of Singapore (MPA) and the Min-
istry of Land, Transport and Maritime Affairs (MLTM) of the Repub-
lic of Korea, have signed a Memorandum of Understanding (MOU)
to further maritime relations between Singapore and the Republic
of Korea.
Mr Lam Yi Young, Chief Executive of MPA at the signing of MOU
with Mr Lim Ki-Tack, Director-General of Maritime Safety of MLTM
in the Republic of Korea.
This MOU provides a platform for both MPA and MLTM to increase
cooperation and promote maritime safety and protection of the
marine environment. Its scope includes cooperation in internation-
al forums such as the International Maritime Organisation (IMO),
the Regional Cooperation Agreement on Combating Piracy and
Armed Robbery against Ships in Asia (ReCAAP) and the Co-operative Mechanism for Safety of Navigation and
Environmental Protection in the Straits of Malacca and Singapore.
"As IMO Council member states, the Republic of Korea and Singapore have made great contributions to the in-
ternational community to ensure maritime safety and the development of the shipping industry,” Mr Lim Ki-
Tack, Director-General for Maritime Safety of MLTM
The MOU provides opportunities to cooperate beyond the IMO, including ReCAAP-based cooperation against
the threat of piracy in Asia as well as the promotion and enhancement of navigational safety in the Straits of
Malacca and Singapore.
Source: bairdmaritime.com

Retired after 50 years of service

The passenger vessel Kristina Regina
has most likely done her last longer
sea journey and is after a docking to
be permanently moored in Turku as a
floating hotel, restaurant and muse-
um. The vessel arrived at Naantali on
August 29, where she during the se-
cond half of September will be docked
at Turku Repair Yard. During the refit
she will be painted in her original Bore
-livery and get her old name back. The
vessel was delivered in 1960 by Os-
karshamn’s Varv in Sweden to the
Finnish shipping company Bore as the
Bore. Kristina Cruises has replaced the
Kristina Regina with the newer cruise
The Kristina Regina approaching Naantali on August 29 during her
vessel Kristina Katarina, which started
probably last voyage in open sea. Photo: Pär-Henrik Sjöström
her maiden voyage the same day as
the Kristina Regina left the fleet after having been handed over to her new owners.
Source: shipgaz.com

Mæ rsk sued for 70 million kroner

Shipper is accused of walking away from deal with British retailer
Shipping firm Mærsk is being sued for 70 million kroner by British retailer Argos, writes financial daily Børsen,

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citing British newspaper The Independent.

Argos is suing Mærsk for 8 million pounds (approximately 72 million kroner), accusing Mærsk of walking away
from a deal to transport 5,000 40-foot containers from the Far East to Britain in 2010 and another 5,000 in
2011.
Argos states it was informed by Mærsk on January 15 that Mærsk could no longer guarantee space for the con-
tainers at the price agreed, and that Argos would need to increase the payment from 930 to 2,730 dollars per
container.
Documents filed by Argos with the UK High Court claim that Mærsk ‘wrongfully repudiated and/or renounced
the contract’ and that Argos ‘had to find another shipping line in order to ship containers from the Far East to
the UK’, resulting in aggregate losses of close to 14 million dollars.
Neither firm has commented on the report.
Source: cphpost.dk

Four Wilh. Wilhelmsen ro-ro’s to recy-

cling in China

Toba and three sisters are sold for recycling. Photo: Dale E. Crisp

Wilh. Wilhelmsen has sold four of its car carriers to China for recycling. Since the market for vehicle carriers col-
lapsed in 2008, the ships have been surplus. The ships are the Tampere (built in 1979 as Barber Nara), Tapiola
(built in 1978 as Bongabilla), Toba (built in 1979) and Tourcoing (built in 1978). Two of the Singapore-flagged
vessels were laid up at Lyngdal, Norway, from April 2009 to April 2010. The four ships are sold for an undis-
closed price, but in the last couple of weeks recyclers in China have paid around USD 407 per light ton. The sum
is a substantial increase from last months USD 360. The 32,000 DWT ro-ro’s are have around 4,300 lane metres
on the decks.
Source: shipgaz.com

GSI expands into Jiangsu

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Hong Kong: Larger handysize tanker newbuildings will soon be
on offer at Guangzhou Shipyard International as it expands into
another province. 
The Hong Kong-listed builder is looking to
alleviate a logjam of orders as well as chase higher turnover
through the lease of a yard in Jiangsu province. 
It is paying
CNY 90m ($13.24m) to rent the property in Runzhou Industrial
Park in Zhenjiang City for four years starting from August 27th.

GSI is renting the land from Jiangsu Shenghua “for shipbuild-
ing and other projects”, a bourse statement read on Friday.

“The board considers that the assets lease contract could help
the company to alleviate its workspace bottle neck, improve its
shipbuilding capacity, secure orders for large-size handy-size
tankers, and improve the shipbuilding output as well as turno-
ver,” the statement read. 
The 450,000-square-metre plot
comes equipped with a drydock and a berth, both operational since March. Some other shipbuilding equipment
and infrastructure is in the process of being built.
Source: Seatrade Asia Online

Even better Performance Monitoring with

new module OCTOPUS-onboard
OCTOPUS-Onboard is extended with a module that constitutes a new dynamic approach to voyage planning. It
combines onboard measurements and forecasts with a new algorithm which will assist the Master to reach the
destination by choosing the route with the lowest resistance and cruising with the optimal speed. Furthermore
the crew and for that matter the office ashore will obtain a clear view of the hull performance of the vessel
throughout its lifecycle.
Large international companies like Dockwise, CMA CGM en Jumbo Shipping are using OCTOPUS-onboard. To-
gether with these companies, Amarcon is continuously working on refining the system, tailored to the individual
wishes of these companies.
Source: Amarcon

India plans to triple its port capacity

India, Asia’s third biggest economy, plans to triple port capacity within a decade as it tackles infrastructure defi-
ciencies that threaten to damp growth.
The country needs “urgent action” to ensure that it has sufficient seaport capacity, Secretary of Shipping K. Mo-
handas said in an interview last Wednesday in his office in New Delhi.
“Ports are very important to India’s economic growth.”
The government intends to open new harbours and sell stakes in ports to help annual capacity reach 3.2 billion
tons under a 10-year plan that will be released next month, Mohandas said.
The nation is also building highways, railways and airports to ease transport bottlenecks that could cost 1.1 per-
centage points of growth in fiscal 2017, according to McKinsey & Co.
Indian ports will likely handle more than 2.5 billion tons of cargo a year by 2020, Mohandas said. Throughput in
the year ended March rose 14 per cent to 844.9 million tons. Nationwide capacity is about 996 million tons, said
Rakesh Srivastava, joint secretary for ports at the shipping ministry.
Contracts for 25 public-private port projects will be awarded in the year ending March, which will draw 140 bil-
lion rupees (100 rupees = RM6.93) of private investments, Mohandas said. The government awarded 13 pro-
jects last fiscal year. State contributions to these partnerships are usually in the form of land, dredging and con-
nections to road and rail links, he said.
The government also intends to award concessions for two new terminals at the Jawaharlal Nehru Port here
this fiscal year, including one for a facility able to handle more shipments than the harbour’s three existing ter-
minals, Mohandas said.

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The state-controlled operator of Jawaharlal Nehru, India’s busiest container harbour, will likely be turned into a
corporation by the end of March, paving the way for an eventual share sale, Mohandas said.
“Jawaharlal Nehru Port is the first possible candidate for corporatisation,” he said. “A final decision has not
been taken, but hopefully it will happen this year.”
Source: dredgingtoday.com

Watchdog fights piracy with owners

ANTI-PIRACY watchdog ReCAAP said it has signed an MoU with
the Asian Shipowners Forum allowing it to forge ahead with its
work combating piracy.
The Memorandum of Understanding covers co-operation be-
tween ReCAAP and ASF in areas such as information exchange,
mutual support, and future collaboration.
“It is crucial to streamline inter-agency information flow and shar-
ing,” said Pornchai Danvivathana, chairman of ReCAAP.
“Emphasis must be given to the continuous engagement between
ReCAAP and the local maritime industry,” he added.
The two organisations also discussed inter-governmental links,
shared experiences and best practices. The MoU expressed ap-
preciation for the efforts made by multilateral bodies in addressing the problem of piracy in the Gulf of Aden.
The signing took place at a meeting jointly organised by Thailand’s Foreign Ministry and the Royal Thai Navy in
Phuket. It is the third such meeting, with this year’s theme being ‘enhancing operational co-operation’.
Source: safetyatsea.net

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