FPSO problems hits Teekay

http://www.tankeroperator.com/ViewNews.aspx?NewsID=6131

Teekay Corp has reported an adjusted net loss of $12.6 mill for the third quarter of this year, compared to adjusted net loss of $36 mill, for the same period in 2013.

       

The adjusted net loss excluded a number of specific items that had the net effect of increasing GAAP net income by $15 mill for the quarter and increasing GAAP net loss by $13.1 mill for the 3Q13.

Including these items, the company reported, on a GAAP basis, a net income of $2.4 mill for 3Q14, compared to net loss of $49.1 mill for 3Q13. Net revenues for 3Q14 increased to $456 mill, compared to $426.8 mill for 3Q13.  

For the nine months ended September 30, 2014, Teekay Corp reported an adjusted net loss $29.2 mill, compared to an adjusted net loss of $81 mill for the same period of 2013.

Again this adjusted net loss excluded a number of specific items that had the net effect of increasing GAAP net loss by $11.9 mill and decreasing GAAP net loss by $37.1 mill for the same period last year.

Including these items, the company reported, on a GAAP basis, a net loss of $41.1 mill, compared to a net loss of $43.9 mill for the same period in 2013. Net revenues for the nine months ended 30^th September, 2014 increased to $1,346.3 mill, compared to $1,256 mill for the 2013 period.

"While the third quarter 2014 results improved from the previous quarter, our results were lower than anticipated due to lower than expected production on the ‘Foinaven’ FPSO relating to subsea issues and the delayed start-up of the ‘Banff ‘FPSO and the Hi-Load DP unit charter contract," commented Peter Evensen, Teekay's president and CEO.

"We recently announced our new dividend policy, which represents the next step in Teekay's transformation into a pure-play owner of two general partnerships," Evensen continued. "Based on the increase in cash flows, we expect to receive from our general partner and limited partner ownership interests in Teekay Offshore following the proposed dropdown of the ‘Knarr’ FPSO, we intend to raise Teekay's annualised cash dividend to between $2.20 and $2.30 per share, representing an increase of approximately 75-80%.

“In addition, with a project backlog of approximately $5 bill of known growth capital expenditures at Teekay Offshore and Teekay LNG, we expect that Teekay's dividend will continue to grow by approximately 20% per annum for at least the three years, following the initial dividend increase.

"The proposed dropdown of the ‘Knarr’ FPSO is an important milestone in Teekay's transformation because it will provide for significant de-leveraging of Teekay Parent's balance sheet. The ‘Knarr’FPSO, which has now been offered to Teekay Offshore and is currently being reviewed by Teekay Offshore's conflicts committee, is anticipated to achieve first oil in December of this year," he said.

As for Teekay’s publicly listed entities, Teekay Offshore’s  cash flow from vessel operations increased to $120.1 mill in 3Q14, from $92.3 mill in 3Q13.

This increase was primarily due to the contributions from the ‘Voyageur Spirit’FPSO following the commencement of its timecharter in August 2013, the three BG shuttle tanker newbuildings following commencement of their respective timecharters in August and November 2013 and January 2014, respectively and the ‘Suksan Salamander’FSO following commencement of its timecharter in August 2014.

These increases were partially offset by the layup and sale of older shuttle and conventional tankers during 2013 and 2014, as their charter contracts expired, or terminated and the scheduled drydocking of the ‘Navion Saga’ FSO during 3Q14.

The results for the third quarter of 2014 were also negatively impacted by the delayed start-up of the Hi-Load DP unit charter contract.This unit continues to undergo operational testing and related delays in commencement of operations may affect its previously anticipated cash flow. Upon successful completion of the testing, the unit is expected to commence its timecharter contract with Petrobras.

In October 2014, Teekay Offshore, through its 50/50 joint venture with Odebrecht Oil & Gas, signed a letter of intent with Petrobras to provide an FPSO for the Libra field located in the Santos Basin offshore Brazil.

The contract, which is expected to be finalised in the fourth quarter of this year, will be serviced by a new FPSO converted from Teekay Offshore's 1995-built shuttle tanker, ‘Navion Norvegia’.

The conversion project will be completed at Sembcorp Marine's Jurong Shipyard in Singapore and the FPSO is scheduled to commence operations in early 2017 under a 12-year firm period fixed-rate contract with Petrobras. The FPSO conversion is expected to be completed for a total fully built-up cost of about $1 bill.

In late October 2014, Teekay Offshore, through its wholly-owned subsidiary ALP Maritime Services (ALP), agreed to acquire six modern long-distance towing and anchor handling (AHTS) vessels for around $220 mill.

Including these vessels, along with ALP's four long-distance AHTS newbuildings, scheduled to deliver in 2016, ALP will become the world's largest owner and operator of DP AHTS. All 10 vessels will be capable of long-distance towing and offshore unit installation and decommissioning of large floating exploration, production and storage units, including FPSOs, FLNGs and floating drill rigs.

Teekay LNG's total cash flow from vessel operations, including cash flows from equity-accounted vessels, was $123.3 mill in 3Q14, compared to $125.2 mill in 3Q13.

The decrease was primarily due to the sale of three 2000 and 2001-built conventional tankers and four older LPG carriers in Exmar LPG BVBA in 2013 and 2014 and the scheduled drydocking of one LNGC and two LPG carriers in Exmar LPG BVBA during 3Q14, partially offset by the acquisitions of, and contributions from, the two Awilco LNGCs in late 2013 and higher revenues from Exmar LPG BVBA, as a result of three newbuilding deliveries in 2014.

In late October 2014, Teekay LNG agreed to acquire a 2003-built 10,200 cu m LPG carrier, ‘Norgas Napa’, from IM Skaugen (IMSK) for about $27 mill. Teekay LNG expects to take delivery of the vessel in mid November, 2014. Upon its delivery, IMSK will bareboat charter the vessel back for a period of five-years at a fixed rate, plus a profit share component based on actual earnings of the vessel, which is trading in IMSK's Norgas pool.

Meanwhile, cash flow from vessel operations from Teekay Tankers increased to $21.2 mill in 3Q14, from $14 mill in 3Q13. This increase was primarily due to stronger average spot tanker rates in the third quarter of this year, compared to 3Q13, an increase in fleet size due to the addition of six  chartered-in vessels during 2014 and higher equity income, as a result of commercial and technical management fees earned through Teekay Tankers' 50% interest in the conventional tanker commercial management and technical management operations acquired from Teekay on 1^st August, 2014.

In October 2014, Teekay Tankers secured timecharter-in contracts for two additional Aframaxes, which increased the company’s' total timechartered fleet to 10 vessels. The new timecharter contracts have an average daily rate of $18,000 and firm contract periods of six months to 33 months, with extension options.

Finally, for 3Q14, Teekay Parent generated negative cash flow from vessel operations of $13.1 mill, compared to a negative cash flow from vessel operations of $36.3 mill in 3Q13.

The reduction in negative cash flow is primarily due to the ‘Banff’FPSO recommencing operations under its timecharter contract in July 2014 following a storm event in late-2011, the re-delivery of several chartered-in tankers over the past year and higher spot tanker rates.

In July 2014, repairs to the gas compressors on the ‘Foinaven’ FPSO were completed and the unit was available to produce at its maximum capacity. However, due to issues with the subsea flow lines, which are the responsibility of the charterer, the field was unable to produce at maximum capacity. As a result, the FPSO is expected to generate lower revenues until these issues are resolved by the charterer.

In late-June 2014, Teekay Parent took delivery of the newbuilding ‘Petrojarl Knarr’ FPSO and the unit arrived in Norway in mid-September 2014. Following installation and offshore testing on the Knarr field, the unit is anticipated to commence its 10-year charter contract with BG Group in December 2014.

In September 2014, Teekay Parent offered to sell the FPSO to Teekay Offshore for its fully built-up cost of about $1.16 bill. The offer is currently being reviewed by Teekay Offshore's board. Once approved by the conflicts committee and the board, the sale will remain subject to the ‘Petrojarl Knarr’ achieving first oil.

U.S. gasoline prices move with Brent prices this week

U.S. Energy Information Administration  

http://www.cattlenetwork.com/cattle-news/US-gasoline-prices-move-with-Brent-prices-this-week-281660751.html

Recent increases in U.S. crude oil production have sparked discussion on how this increase in supply will be used by U.S. refiners, given current limitations on exporting domestic crude. On October 30, EIA released a study that explored the relationships between crude oil and gasoline prices (Figure 1).

Key findings from the analysis include:

The price of Brent crude oil, an international benchmark, is more important than the price of West Texas Intermediate (WTI), a domestic benchmark, for determining gasoline prices in all four U.S. regions studied, including the Midwest.

The effect that a relaxation of current limitations on U.S. crude oil exports would have on U.S. gasoline prices depends on its effect on international crude prices, such as Brent, rather than its effect on domestic crude prices.

Gasoline is a globally traded commodity, and prices are highly correlated across global spot markets.

Gasoline supply, demand, and trade in various regions are changing; one effect is that U.S. Gulf Coast and Chicago spot gasoline prices, which are closely linked, are now often the lowest in the world during fall and winter months.

A change in current limitations on crude oil exports could have implications for both domestic and international crude oil prices. Such a relaxation could raise the prices of domestically produced oil. If higher prices for domestic crude were to spur additional U.S. production than might otherwise occur, the increase to global crude oil supply could reduce the global price of crude.

The extent to which domestic crude prices might rise, and global crude prices might fall, depends on a host of factors, including the degree to which current export limitations affect prices received by domestic producers, the sensitivity of future domestic production to price changes, the ability of domestic refiners to absorb domestic production, and the reaction of key foreign producers to changes in the level of U.S. crude production.

Relationships between gasoline and crude oil prices

U.S. retail gasoline prices reflect four key components: the price of crude oil; refining costs and profit margins; retail and distribution costs and profit margins; and taxes. The first two factors tend to be more volatile, causing most of the variation in retail gasoline prices, while the latter two reflect the retail portion and tend to be relatively stable.

A general guideline for how crude oil prices affect gasoline is that a $1-per-barrel change in the price of crude oil translates into a change of about 2.4 cents per gallon of gasoline. (There are 42 gallons in one barrel, and 2.4 cents is about 1/42 of $1.)

Don't rule out OPEC cut, say top oil traders

President and CEO of Vitol Group Ian Taylor participates in a question and answer session during the Oil & Money conference in London October 1, 2013.

http://www.reuters.com/article/2014/11/05/us-commodities-summit-opec-oil-idUSKBN0IO1T220141105

(Reuters) - Forget conspiracy theories and be prepared for OPEC to cut output in November because this is what they need to do and have done in the past, veteran oil traders who run and co-own some of the world's biggest trading firms told the Reuters Commodities Summit.

The views from the top executives of Vitol, Gunvor and Mercuria go against expectations that the 12-member Organization of the Petroleum Exporting Countries is unlikely to step in and support prices.

Oil prices have fallen sharply from $115 a barrel in June to a four-year low near $82 on Tuesday on weakening demand, ample supply and the perception that OPEC heavyweight Saudi Arabia is happy to keep prices at levels of $70-$80 per barrel.

OPEC members Kuwait and Iran have also said a cut in production at the Nov. 27 OPEC meeting was unlikely. Saudi Arabia has yet to comment publicly.

"My feeling is we're underestimating now the possibility of OPEC cutting," Vitol's [VITOLV.UL] chief Ian Taylor said. "Everybody says they are not going to cut, and I'm not 100 percent sure. I think there will be serious discussions at the OPEC meeting about cutting."

Taylor, who at last year's Reuters Summit saw a chance of a steep fall in oil prices, said the major decline may have already occurred. "I'm not convinced we've got another big leg down," he said.

So far, the only specific call for a cut has come from Libya's OPEC governor - with the proviso that Libya itself is exempt. Venezuela said it and fellow member Ecuador are working on a joint proposal to support prices.

The chief executive and majority owner of Switzerland-based Gunvor, Torbjorn Tornqvist, also sees a chance of OPEC action.

"I think they will defend, short-term, the market from going lower," he said.

"I think the Saudis will not have a problem to maybe cut 400,000-500,000 barrels and maybe you'll see some symbolic cuts from the other Gulf states. Kuwait and the Emirates will maybe add something to half a million or so."

Tornqvist doubted any OPEC action would drive prices back to $100 a barrel, a level many members including the Saudis had endorsed. "I would say we'll see $80 to $90 in the medium term, next year," he said.

The head of Mercuria, the world's fourth largest oil trader, said OPEC needed to remove 1.5 million barrels per day - assuming no lifting of sanctions on Iran - and there was a 50:50 chance of a cut.

"I am probably slightly more optimistic about the possibility of a cut, but I still don't see that as a more than 50 percent chance," Mercuria CEO Marco Dunand said.

The meeting in Vienna is set to be one of OPEC's most important in years. Any cut in output would be OPEC's first since the 2008 financial crisis.

Before then, a deadline to complete an agreement on Iran's nuclear program falls on Nov. 24. Any deal, and lifting of the Western sanctions on Iran that have forced Tehran to cut exports, could add to OPEC's challenge.

"That itself can have an impact on how much production needs to be cut by OPEC," said Dunand.

PLAY THE LONG GAME?

A cut is by no means certain and a fourth senior figure addressing the summit, Trafigura's Chief Financial Officer Pierre Lorinet, pointed out an argument against doing so.

"I can see OPEC and Saudi Arabia playing the long game. A low price for a period of time may actually play into the hands of people with a lot of reserves in the ground at cheap cost," he said.

Saudi Oil Minister Ali al-Naimi has made no public comment on the oil market since September and a number of theories have emerged about the kingdom's possible strategy.

Those have ranged from Riyadh looking to curtail the steep growth in U.S. shale oil, which is eroding OPEC's market share, to the kingdom's desire to punish Iran and Russia, which heavily depend on oil revenues, over Syria.

Asked whether he saw a change of tack in OPEC to keeping market share from defending prices, Vitol's Taylor said he thought Saudi Arabia wanted to make sure its fellow OPEC members take part in any reduction.

"Yes and no. I'm sure the Saudis will wish to ensure that if there's going to be a cut, everybody participates, it's not just them. And that's where the difficult conversations start to happen."

"But at the end of the day, for a lot these countries, a price at this level or lower gets a bit serious."

Saudi Arabia's reluctance to cut output has parallels with previous falls in oil prices. When crude crashed during the Asian financial crisis of 1998-1999 and then after the 9/11 attacks of 2001 Riyadh took its time to recruit other producers, including non-OPEC suppliers, to the cause, although on both occasions OPEC shouldered the lion's share of output reductions.

The 2008 financial crisis price crash happened so quickly - within weeks of prices hitting a record high of $147 a barrel - that OPEC was forced to act quickly without non-OPEC help.

Taylor and Dunand both gave short shrift to suggestions that Saudi Arabia wanted lower prices to make shale oil uneconomic, or to weaken Iran or Russia.

"I don't actually buy too much of the conspiracy theories. I think it is more for them (the Saudis), the issue of having other countries sharing the burden of cutting production than anything else," the Mercuria boss said.

Taylor's view was similar: "It's market share that is important to them, and if everybody is willing to cut I suspect they might as well."

Follow Reuters Summits on Twitter@Reuters_Summits

(Editing by Michael Urquhart)

Swiss Prosecutors Contact Oil Traders in Nigeria Fuel Scam Probe

http://www.bloomberg.com/news/2014-11-05/swiss-prosecutors-contact-oil-traders-in-nigeria-fuel-scam-probe.html

By Andy Hoffman

Swiss prosecutors contacted commodity traders including Gunvor Group Ltd. and Vitol Group as they assist a Nigerian investigation of an alleged multi-billion dollar scam over subsidies for oil-product imports.

Gunvor, the fifth-largest independent oil trader, said the firm was notified in June by Switzerland’s attorney general that it was assisting a probe by Nigeria’s Economic and Financial Crimes Commission of fraud involving local fuel importers.

“The Swiss authorities have requested from Gunvor assistance in gaining understanding about product trading in Nigeria,” Seth Pietras, a Geneva-based spokesman for the commodity trader, said in an e-mailed response to questions.

Nigeria, Africa’s largest crude producer, subsidizes local companies to import about 70 percent of the nation’s gasoline, diesel and other petroleum products as aging and inefficient refineries can’t meet demand. Fraudulent payments related to subsidized fuel imports are estimated to cost the continent’s biggest economy as much as $7 billion a year, according to a 2012 report by Nigeria’s Parliament.

The Swiss arm of the investigation is being handled by the Geneva prosecutor’s office, said spokesman Henri Della Casa.

“The Geneva prosecutor has acknowledged Nigeria’s request for assistance and is moving forward with an investigation,” Della Casa said by phone.

Confidential Conversations

Vitol Group, the world’s largest oil trader, has also been contacted by Swiss authorities regarding product imports to Nigeria, according to a person with knowledge of the matter.

“Conversations with government authorities are confidential,” Fabian Gmuender, a spokesman for Amsterdam-registered Vitol, which has major trading operations in London and Geneva, said in an e-mailed statement. “Vitol cooperates with all relevant authorities in all jurisdictions in which we operate.”

The system of fuel-import subsidies, which are supposed to be passed on to consumers, is opaque and rife with “endemic corruption,” according to the April 2012 Nigerian parliamentary report. Two months later, President Goodluck Jonathan dismissed the head of Nigerian National Petroleum Corp. after the report said the state oil company, the country’s biggest gasoline importer, received illegal fuel-subsidy payments.

Wilson Uwujaren, a spokesman for Nigeria’s Abuja-based Economic and Financial Crimes Commission, didn’t respond to phone calls and e-mails seeking comment.

Lamido Sanusi, former Governor of Nigeria’s central bank, was suspended by Jonathan in February after saying that as much as $20 billion of state oil receipts may be missing.

Gunvor has provided documentation to the Swiss prosecutor since first being contacted on the matter five months ago, said Pietras.

Cyprus-based Gunvor is “happy to comply,” said Pietras, adding that no raids have taken place at the trading house’s Geneva offices.

To contact the reporter on this story: Andy Hoffman in Geneva at ahoffman31@bloomberg.net

To contact the editors responsible for this story: Will Kennedy at wkennedy3@bloomberg.net Dylan Griffiths, Alex Devine

Nigeria assumes $78 a barrel oil price benchmark for 2015 budget

http://www.reuters.com/article/2014/10/22/nigeria-budget-idUSL6N0SH4SY20141022

(Reuters) - Nigeria is assuming an oil price price of $78 per barrel for its 2015 budget, up from $77.5 per barrel in 2014, according to its 2015-2017 budget framework document seen by Reuters on Wednesday.

The document, which forms the basis for preparing the budget, assumed oil production of 2.27 million barrels per day in 2015, down from 2.38 million barrels in 2014. It projected oil output to reach 2.32 million barrels per day in 2016, rising to 2.40 million barrels by 2017.

A higher assumed oil price means a slightly looser budget for 2015 than for 2014, although that was to be expected given this is an election year, when demands for funds from politicians tends to surge. President Goodluck Jonathan faces what is likely to be a closely fought presidential poll in February 2015.

The document, dated to the month of September, assumed gross domestic product (GDP) growth of 6.35 percent for 2015, down from 6.56 percent estimated for 2014 -- figures which differed slightly from some given by Finance Minister Ngozi Okonjo-Iweala in a news conference on Tuesday.

There, she projected 6.75 percent growth in 2015, with this year expected to finish at 6.2 growth.

The budget framework paper said the budget deficit rose to 2.41 percent of GDP in 2014 on higher debt servicing, up from an expected 1.85 percent.

Nigeria's external and local debt stood at $65.26 billion as at end March 2014, up from $48.50 billion end March 2013, the budget framework document said.

In theory Nigeria saves money over a benchmark oil price in its Excess Crude Account (ECA), which then provides a cushion for when oil prices fall or extra cash is needed for spending on infrastructure.

Lawmakers tend to inflate the benchmark price if they believe it is too low, which can bring them into conflict with Okonjo-Iweala.

With global oil prices falling and a benchmark of $78 a barrel -- a figure lawmakers wanted for 2014 -- they may agree not to try to raise the benchmark this time. However, the ECA is still prone to being raided for distribution to feed extensive patronage networks, analysts say.

The ECA declined as low as $2.5 billion at the start of 2014, from around $11.5 billion at the start of January 2013, according to the central bank, despite consistently high oil prices over that period.

It has since recovered to around $4 billion.

Okonjo-Iweala sought to allay concerns over falling oil prices in Tuesday's press conference, arguing that the country still had funds to pay salaries and keep its debt obligations. Brent crude, the benchmark against which Nigeria's oil is measured, has declined by around 25 percent since June.

Nigerian assets have taken a beating over the past two months. Nigeria's naira was hovering around a seven-month intraday low of 166 on Wednesday, before the central bank intervened to prop it up. (Reporting by Camillus Eboh; Additional reporting by Chijioke Ohuocha in Lagos; Writing by Tim Cocks; Editing by Ruth Pitchford)

FPSO workers’ strike to cost Ghana oil revenue

http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=332869

The strike by workers on the FPSO Kwame Nkrumah is likely to cost Ghana huge sums in oil revenue.

A vessel, the Arctic, arrived last Tuesday to lift almost a million barrels of oil from the belly of the FPSO, but the Arctic is now anchored at the Jubilee Fields two days after its arrival because of the strike.

Ghana and the Jubilee Partners are expected to pay between $30,000 and $40,000 in demurrage charges if the ship delays further at the anchorage.

To avoid the huge demurrage, the operator of the FPSO Kwame Nkrumah, MODEC Ghana, is considering other options to load the Arctic, while it works to resolve the issues with the workers.

However, the workers have vowed not to resume work until their grievances are addressed.

The current situation is that the cleaners, technical staff and cooks on the FPSO Kwame Nkrumah who are on the strike have also refused to fly back to shore for replacement until their demands for better conditions of service are met.

Officials of MODEC Ghana are considering sacking the workers if the strike continues.

To protect the installation and ensure that the striking workers do not disrupt operations, the Western Regional Police Command, at the request of MODEC Ghana, has deployed seven policemen to ensure the safety of other workers on the FPSO Kwame Nkrumah.

Production of oil on the FPSO Kwame Nkrumah, which is automated, is currently going on undisrupted.

The In-country Manager of MODEC, Mr Jones Barnes, has said the decision of the workers to embark on the strike without prior notice and without cause was in complete disregard of sections 159 and 160 of the Labour Act, 2003 (Act 651).

In a letter, he warned the striking workers that they would lose their remuneration for the period they were on strike, in pursuant of Section 168 of the Act.

The letter justified the request by MODEC for police protection of the multi-million dollar production platform.

By the letter, MODEC Ghana requested all employees who were engaged in the strike to leave the installation and attend a meeting in Takoradi to discuss the situation, but the workers thought the meeting was a ploy to eject them from the platform.

Some of the workers were of the view that bringing them to the shore was a ploy to send other workers to perform their duties.

They said they would not move, would remain calm but would not work until they received a directive from their mother union onshore.

Markets - Charter rates go north

http://www.tankeroperator.com/ViewNews.aspx?NewsID=6108

VLCCs firming trend during the past week, or so, with continuous high activity into November has pushed rates up and earnings for MEG/East routes well into $40,000s per day.

       

Fearnleys said that owners’ expectations for the winter market are running high. They have set their sights on pushing rates further.

Tonnage is becoming tighter both for MEG and also West African cargoes, helping to sustain the generally firm trend.

With present earnings, waiting days are getting more ‘expensive’ thus owners may elect to lock in their preferred voyages on their dates, which may flatten the forward rate-curve to some extent. However, optimism is however strong for the VLCCs in general.

After a dip in Suezmax rates, particularly from West Africa (down to WS 65) at the beginning of the week, interest from charterers picked up again and owners bullishness increased.

There are several charterers working in the same laycan window in West Africa and we expect this market to improve even further, Fearnleys said.

The stem programme from Black Sea/Med seems lighter than last month, however, with firmer rates in the major Suezmax West Africa/West route, we expect rates to follow the upward trend in this area as well.

The Aframax market in the West saw continuous high activity this week and the trend is very firm in all the three major trade regions; Baltic/North Sea, Black Sea/Med and the Caribs.

Owners optimism has not been curbed, despite an expected maintenance period in Primorsk/Ust-Luga from 10-15th November.

The North Sea/Baltic and Black Sea/Med markets have more of an upside, as Russian stem programmes for remainder of November looks quite extensive.

We expect this firm trend to be sustained, as with a more uncertain weather prospect expected as winter approaches, bringing more weather delays.

The newbuilding sector remains lacklustre with just four contracts reported recently.

These for for two 22,000 cu m LPG carriers for Navigator at Hyundai Mipo and two 35,000 dwt chemical carriers at Kitanihon for Tokyo Marine.

Returning to the timecharter market, brokers reported that Clearlake had fixed the 2007-built Aframax sisters ‘Aegean Nobility’ and ‘Aegean Power’ for 30 months at $20,000 per day each, while Shell was believed to have taken the same vintage Aframax ‘Bergina’ for 12 months at $17,000 per day.

Illustrating the strength of the LR1s at present, Petrobras was believed to have locked in the 2008-built Tsakos sisters ‘Selecao’ and ‘Socrates’ for two years at $16,450 per day each.

In the MR sector, Morgan Stanley was said to have chartered the 2005-built ‘Apollon’ for three, plus three months at $13,950 per day, while Koch was believed to have fixed the 2008-built ‘Prisco Alexandra’ for 12 months at $14,000 per day.

Reported sales were few and far between with the 2000-built MR sisters ‘Risanger’ and ‘Ravnanger’ reportedly sold to unknown interests for $10.25 mill each.

Leaving the fleet was the 1991-built Aframax ‘Europrogress’ sold to Pakistani interests on private terms.