Tuesday, June 12, 2012

WAfrica Crude-Nigerian overhang puts grades under pressure


http://www.reuters.com/article/2012/06/11/markets-oil-westafrica-idUSL5E8HB9IH20120611
 
LONDON, June 11 (Reuters) - Nigerian crude oil differentials
came under renewed selling pressure on Monday as unsold cargoes
competed with limited buying interest from Asia and Western
markets. 
    As many as 20 Nigerian cargoes for loading in July remained
unsold and on offer, traders said, just a week before the new
loading programmes for August were due to be announced. 
    Several light Nigerian crude oil grades saw their asking
differentials squeezed lower, particularly those with relatively
high yields of naphtha and gasoline, markets that have been
depressed in recent weeks. 
    One grade, the ultra-light crude Agbami, which is so light
it is sometimes classified as a condensate, has been sold at
least once at a substantial discount to the North Sea benchmark,
dated Brent, which is considered of inferior quality. 
    "Most of the Nigerian grades have suffered from low demand
in recent months," said a physical crude oil trader with an
independent commodities house. "Naphtha grades have been hit
particularly hard as crack values have narrowed and
Mediterranean grades are more competitive." 
     
    NIGERIA 
    * Qua Iboe: Nigeria's benchmark Grade eased 5 to 10 cents
per barrel to around dated Brent plus $1.80/$2.00, about 30-40
cents below levels only a week ago. A cargo was heard offered at
dated plus $2 a barrel and two cargoes were reported done below
that level. 
    * Bonny Light: assessed at Qua Iboe minus 20-30 cents. 
    * Agbami: Chevron was reported to have sold an Agbami cargo
for July 14-15 to Petrobras as low as dated Brent minus 75
cents, at the bottom of a reported talking range of minus 50-75
cents. 
    Yoho: differentials also also under heavy pressure as
naphtha cracks have fallen, traders said, but exact levels
unclear. 
         
    ANGOLA 
    * Angolan state oil company Sonangol has already sold all
its cargoes for July ahead of the loading programme for August,
due to be released at the end of this week. 
     
    ASIAN BUYING TENDERS 
    * India's largest refiner, Indian Oil Corp, bought up to 4
million barrels of West African crude in a tender for loading in
the second half of July, traders said. IOC bought 1 million
barrels each of Hungo and Agbami from Shell, plus 950,000
barrels of Kissanje from Sonangol and 950,000 barrels of Dalia
from Mercuria, they said. Prices were not immediately available.
IOC last bought a Kissanje cargo from Sonangol.  
         
    DATABASE  
    For a database of oil supply and demand fundamentals
upstream and downstream, Reuters subscribers can click on: 
    here 
 
 (Reporting by Christopher Johnson; Editing by Alison Birrane)

Monday, June 11, 2012

Poor jet fuel management to blame for plane crash?


http://thefuelhandler.com/index.php?option=com_content&view=article&id=67&Itemid=60&item_id=5020

An investigation has begun into what caused a Dana Air jet to crash in Lagos, Nigeria.

The incident killed all 153 people on board and a currently unidentified number of people on the ground.

The two potential causes currently being investigated are a bird strike and a lack of fuel.

According to the Aviation Safety Network, the same aircraft was forced to make an emergency landing on 19 April 2010 after a number of birds were ingested as it departed from Lagos Airport.

The other theory is that the aircraft ran out of fuel. If this were the case, both engines would have failed, leaving the pilot with no other option but to land somewhere in the highly built-up area.

Three crewmembers, one of which was responsible for fuel management, were working in the airplane's cockpit at the time of the incident.

A report outlining the findings of the incident will not be released for a number of months.

UGS president warns of trouble ahead


http://www.tankeroperator.com/news/todisplaynews.asp?NewsID=3568

Despite the deep financial crisis of the entire planet and especially Greece, Greek shipping remains at the top of the international league.

Greek owners control a fleet of 3,325 vessels, totalling of 227 mill dwt with an average age of 10,5 years, Union of Greek Shipowners’ (UGS) president T Veniamis said at a conference in Athens on Friday.

“You may know,” Veniamis said, “that my compatriot shipowners on my island, Chios, used to say that the sea gets sick but never dies. We fully share this belief and we try to follow their task. Of course, the overall environment has changed. The circumstances at sea are completely different today, compared to past years.

“Sometimes they may be better but in many cases, they are adverse and complicated, demanding faith, strength and hard effort. Globalisation and its side-effects, the galloping development of marine technology, the exaggerated and not always disinterested measures at central and regional level, disturbing the smooth operation of vessels, the financial and lending illiquidity, the effects of the economic crisis on the freight market but also the scourge of piracy, are critical challenges for the shipping industry of the 21st century,” he said.

With regard to the problem of piracy, in particular, the UGS President emphasised that the threat increases day by day, the reason being the absence of the strong political will of the international community to address it in the most effective way.

Recently, the Greek state, reacting to a proposal of the shipping community, adopted the necessary legislation to allow the use of certified private armed guards on board Greek flag vessels along the lines of similar legislation of other countries.

However, Veniamis warned that it should be emphasised that the use of armed guards is not a panacea. “It does not constitute a solution of the problem but only a supplementary measure for the protection of seafarers, vessels and cargoes,” he said.

Another issue of serious concern is the large number of technical measures imposed on shipping at international, or regional level, based on new environmental standards. In the context of international pressure for the reduction of green house gases from ships, unfortunately shipping has been identified as one of the potential convenient sources of revenue, but not proportionate with the low level of its contribution to air pollution.

However, a positive move was that IMO was the first international organisation to adopt new international regulations for the reduction of CO2 emissions from ships, proving that it has the dynamism to continue the exclusive handling of this case.

Since 2009 at national level, Greek shipping, despite the impressive foreign exchange inflow dependant on the freight market level - and the opportunity of employment offered on board ships and ashore, was deprived unjustifiably of the supportive services of its qualified administrative authority.

The abolition of the Ministry of Mercantile Marine, in a country with one of the largest fleets in the world and the detachment of the Coast Guard corps, resulted in administrative de-regulation and confusion in the implementation of the proper policy for shipping operations and, in particular, for the closer ties between vessels and the national economy, which inevitably are seriously impeded, Veniamis said.

The shipping community is always preoccupied and especially lately with the need for modernisation and upgrading of the entire maritime education system in order to optimise as much as possible the evident recent turn of youngsters to the seafaring profession.

Despite the international economic crisis, which is adversely hitting world seaborne trade, Greek shipowners believe that they will successfully respond to the several big challenges and that their shipping will keep its leading role in the international league of “tomorrow”.

“The above statements cover the position and progress of Greek shipping today”, Veniamis said. “Taking the opportunity of this gathering, I would also like to announce the following.

“The shipping community is prepared to intervene most effectively in order to give its due support to the hardly tried segments of our society. It has done so several times in the past, personally and collectively, with care, responsibility and also deep and disinterested human and patriotic feeling. And always without publicity.

“The UGS has already at its disposal the necessary capital from contributions, especially from our colleagues, but also from their collaborators all over the world. We are in the process of setting up special projects, following thorough research, in order to safeguard the best possible disposal of the collected sums.

“You will receive more detailed information on this endeavour shortly,” he concluded.

Friday, June 8, 2012

CP 614 Crude Oil Train.



Southbound on the NS Buffalo Line at MP: BR 296 with CP 8869 & CP 8514.
June 7, 2012

Thursday, June 7, 2012

Light Oil Struck off Cote d'Ivoire


http://www.petroleumafrica.com/en/newsarticle.php?NewsID=13710

Tullow Oil has made a light oil discovery off the coast of Cote d’Ivoire on Block CI-103. The drilling of the Paon-1X well, the first well to be drilled on the block, encountered good quality light oil in a Turonian fan system.

Paon-1X, drilled by the Eirik Raude, encountered 31 meters of net oil pay in a gross interval of 74 meters of turbidite sands. Pressure data indicates that this interval contains a continuous hydrocarbon column and samples show that it is a light oil of 41 degrees API. Further analysis is required to determine reservoir quality and the extent of the fan system.
Following completion of logging operations, the well will be suspended for possible future use in appraisal and development operations.

Participants in the drilling of the Paon-1X well are Tullow Oil (operator), Anadarko Petroleum, and Côte d’Ivoire’s state-run firm Petroci.

Angus McCoss, Tullow’s exploration director, said: “The discovery of light oil in our first well in CI-103 extends the proven play for oil westwards from our successes in Ghana and is encouraging for our future exploration efforts elsewhere in this licence. We look forward to further drilling in CI-103 during 2013.”

“The Paon well marks the first deepwater discovery in the CI-103 block offshore Côte d'Ivoireand opens up an entirely new play for the countryand our partnership,” Anadarko Sr. VP, Worldwide Exploration, Bob Daniels said. “This discovery confirms the Upper Cretaceous fan system present in Ghana extends westward into Côte d'Ivoire and provides significant running room within the CI-103 block. We are very encouraged by these resultsand look forward to appraising this discoveryand testing a number of other identified prospects on our acreage.”

Another tanker attack off West Africa

http://www.tankeroperator.com/news/todisplaynews.asp?NewsID=3554

Pirates have attacked an unnamed Greek-owned oil tanker off Nigeria late last week, according to the International Maritime Bureau (IMB).

However, they failed to hijack the ship after the crew hid in a safe room.

The tanker was anchored off Lagos when armed pirates boarded early on Friday, said Noel Choong, head of the IMB's piracy reporting centre in Kuala Lumpur to news agency AFP.

The 23 crew on board managed to lock themselves into a safe room and sent out a distress call that was received by the IMB, which in turn alerted the Nigerian navy and other warships patrolling the area, Choong said.

Choong also said the pirates, likely aiming to steal the ship's cargo, abandoned their plan as they could not enter the safe room and urged crews of other ships off west Africa to be vigilant.

"The area remains risky," he told AFP. "We urge all ships to maintain strict anti-piracy watches.”

At least 21 attacks in the Gulf of Guinea off the west coast of Africa have taken place this year, with four vessels hijacked, according to Choong.

Two seafarers have been killed, two injured and three kidnapped, he said. Nigeria, Africa's largest oil producer, was targeted in 13 out of the 21 attacks, Choong told AFP.

Wednesday, June 6, 2012

Cuba to increase storage capacity


http://tankstoragemag.com/industry_news.php?item_id=5009

Cuba may upgrade some of its oil tanks in a move that will increase storage capacity in the region.

The majority of these improvements will be carried out by oil company Cubapetroleo, which is planning upgrades to its 50,000m3 Matanzas province-based tanks.

These works will ensure the storage tanks remain operational for the next 20-25 years.

Cubapetroleo has also built a new wastewater treatment facility. The plant can receive oil vessels weighing up to 180,000 tonnes and 20m deep.