NNPC to be Split Up

 

http://www.petroleumafrica.com/nnpc-to-be-split-up/ 

As part of the Nigerian government’s bid to transform its state-run oil and gas firm, Nigerian National Petroleum Corp. (NNPC), the firm is to be broken up into 30-revenue generating companies. Speaking at the 25^th Oloibiri Lecture Series and Energy Forum in Abuja, Minister of State for Petroleum Resources and Group Managing Director of NNPC, Dr. Ibe Kachikwu, said that the companies would have separate managing directors.

“For the first time, we are unbundling the subset of the NNPC to 30 independent companies with their own Managing Directors. Titles like Group Executive Directors are going to disappear and in their place you are going to have Chief Executive Officers and they are going to take responsibilities for their titles. At the end of the day, the CEO of an upstream company must deliver an upstream result,” Kachikwu stated.

He went on to say that the state-run firm had made up some of its losses, moving a little bit nearer the red, going from N160 billion to N3 billion in January. Kachikwu added that by the end of the year NNPC should start seeing a profit.

FPSO for TEN Arrives Offshore Ghana

 

http://www.petroleumafrica.com/fpso-for-ten-arrives-offshore-ghana/

The FPSO for the TEN development, Professor John Evans Atta Mills, named after the late president, has arrived offshore Ghana after traveling from Singapore. The vessel will move directly to the installation when it arrives on station and is expected to start producing oil from the TEN fields by July or August, according to a statement from Tullow Oil.

The statement went on to say that following the installation, the hook-up of subsea facilities via flowlines, risers and control umbilical will take place. In addition, six wells have already been completed, and the completion of the remaining wells is on schedule. The integrated facilities will undergo final commissioning and testing during the second quarter of this year before first oil.

“We are extremely pleased and proud that Ghana’s second FPSO has arrived safely here on our shores. It is a source of pride to note that many of the component parts of both the FPSO and the subsea infrastructure were built and supplied by Ghanaian companies. Tullow and its partners remain at the forefront of unlocking Ghana’s oil resources for the mutual benefit of the Nation and Shared Prosperity. We can look forward to First Oil from the TEN fields by July/August this year,” Tullow Ghana Managing Director, Charles Darku said.

The FPSO Professor John Evans Atta Mills was constructed by MODEC and will be operated by MODEC Ghana Ltd on behalf of the TEN Partners.

Crude rates continue to slide

http://www.tankeroperator.com/ViewNews.aspx?NewsID=7437

Despite a general feeling that VLCC activity was slow last week, the volumes were actually ‘normal’. 

 

The oversupply of tonnage weighed heavy on sentiments and rates went down sharply on all major VLCC routes, Fearnleys reported.

Earnings for MEG/East and West Africa/East fell to below $40,000 per day and even Caribbean/East rates dropped sharply, due to lower volumes and too many ships. There were still delays being experienced in eastern ports, but thus far, this has had little to no effect on the general sentiment.

As anticipated, the soft sentiment continued last week for Suezmaxes with limited activity in the Med/Black Sea and West Africa. A tonnage build up was unavoidable and resulted in rates dropping further below the WS70 mark for voyages from West Africa to Med and Continent.

Going forward, we feel that an increase in activity for the remainder of the second week of this month will change the momentum resulting in an upward adjustment in rates as the bottom had possibly been reached, Fearnleys said.

Since last week, North Sea and Baltic Aframax rates have continued to move sideways at bottom levels. Crude cargoes ex Baltic are now covered to the 15^th of this month and owners saw no signs of a short term recovery.

Med and Black Sea expectations were high, due to the heavy March programmes. However, unfortunately for the owners, the reality was very different. The main reason was the amount of prompt ship availability.

Two ex Med cargoes loading this week received 10 and 12 offers, respectively. The 10 offer cargo went on subs at WS80 while the 12 offers sent the market further down to an astonishing WS70. charterers saw the window of opportunity and followed up with several Black Sea cargoes, which were all fixed rather quickly at WS85 levels.

Even if the low numbers look depressing for owners, we believe this market will recover over the next couple of weeks, as a lot of the ships are now disappearing being committed far ahead and will not come back into position before the end of the month.

Meanwhile, Reliance reportedly fixed three VLCCs for period business. The 2002-built ‘DHT Eagle’ and the similar vintage ‘Britanis’ were thought fixed for two years at $40,000 per day, while the 2007-built ‘Bunga Kastura Empat’ was said to have attained $38,500 per day for a three year charter.

The 2003-built Aframax ‘ADS Oslo’ was said to have been fixed to AET for two years at $23,500 per day.

Scorpio Tankers (STI) has confirmed it had time chartered-in three Ice Class 1A Handymaxes.

Each fixture is for three years at $15,600 per day. STIK said that it also had two consecutive one year options to extend the charters at $16,500 per day and $17,500 per day, respectively.

The charters were expected to commence before the end of this month. In addition, STI has the option to timecharter-in up to four more Ice Class 1A Handymaxes on the same terms, the company said.

In the S&P sector, Bahri has purchased the 2011-built VLCC ‘Hanjin Ras Tanura’ for $75 mill, following its foray into the MR market a couple of weeks ago. Greek-based NGM Energy was believed to have purchased the 1998-built VLCC ‘Takachiho II’ for $21.45 mill.

The 2007-built MRs ‘St Johannes’ and ‘St Marien’ were thought sold to undisclosed interests, possibly an in-house deal, for $22 mill each, which included a timecharter back to the sellers at $15,500 per day each.

Hyundai Merchant Marine (HMM) has told newswires that it is considering selling its tanker division in the light of massive debts thought to be more than $5 bill.

 

HMM has already said it will sell part of its drybulk assets, plus a terminal in Busan.

A meeting with creditors is scheduled in the middle of this month to discuss pushing back debt payments, Splash reported.

Major Iranian oil shipments still some way off

http://www.tankeroperator.com/ViewNews.aspx?NewsID=7436

The Islamic Republic of Iran Shipping Lines (IRISL) was believed to have signed a co-operation agreement with Singapore’s Pacific International Lines (PIL).

 

According to a report in the Iran Business News, this agreement could lead to the development of a tanker operation to ship products and petrochemicals from East Asia to as far as West Africa, although PIL is predominantly a containership operator.

IRISL head Mohammad Saeidi was quoted by Iranian media as saying that the company plans to expand its current fleet of tankers, containerships and drybulk carriers, Iran Business News reported.

Meanwhile, Frontline has reportedly said that securing insurance for oil cargoes from Iran  could take another two to three months, potentially limiting Iran's ability to quickly ramp up oil exports.

"We have not lifted anything yet, there are still terms of insurance and payments. There are still some outstanding (issues). (But) we expect that to be in place within two to three months," said Robert Hvide Macleod, Frontline CEO said. "That could change, but two to three months (is) our estimate," he told a conference call with investors on Monday, reported Reuters.

The US still prohibits US individuals or companies from trading with Iran and insurers are trying to clarify the details of the sanctions.

"In terms of volumes, (Iran's) pre-sanctions levels were 2.8 mill barrels of oil per day. Their domestic refineries consumed about 1.8 mill," MacLeod said. "There is a million left to export, which they did on their own ships. Now the post-sanctions volumes available into 2016 looks to be between 1.5 mill to 2 mill barrels."

MacLeod said once the insurance issues are resolved, Iran would rely more on international shipping. Iranian tankers have been storing oil and will continue to do so, due to a lack of land storage facilities, he said.

"We expect the chartering requirement from Iran to increase and (for) them to fix international tonnage," he said, reported Reuters. 

San Leon Secures Funds for Nigeria Buy

http://www.petroleumafrica.com/san-leon-secures-funds-for-nigeria-buy/

San Leon Energy secured the funds to needed to complete the Mart Resources Arrangement Agreement. Completion of the arrangement agreement is subject to necessary approvals.

This forms part of the broader proposed transaction outlined in January that has San Leon acquiring Mart and in addition an interest in Martwestern Energy, and to restructure the assets and liabilities of these acquisitions with Midwestern Oil and Gas Company, Mart’s partner on the Umusadege field and OML 18 block, onshore Nigeria. San Leon and Midwestern will acquire, through a Canadian acquiring entity, all of the issued and outstanding common shares of Mart by way of a Plan of Arrangement.

Oisin Fanning, San Leon’s Executive Chairman, commented: “We are delighted to have secured the funds to enable this company-changing transaction to complete, subject to necessary approvals.”

Energy pioneer McClendon dies in fiery car crash, a day after indictment

         

A vehicle, in which Oklahoma City Police Department said former Chesapeake Energy co-founder Aubrey McClendon died one day after a federal indictment, burns in Jones, Oklahoma March 2, 2016 in a picture courtesy of Cris Yelton.

Reuters/Cris Yelton/Handout via Reuters

http://www.reuters.com/article/us-chesapeake-enrgy-mcclendon-idUSKCN0W42ME

Former Chesapeake Energy Chief Executive Aubrey McClendon, a brash risk-taker who helped transform the U.S. energy industry with shale gas, died when his car slammed into an overpass on Wednesday, one day after being charged with breaking federal antitrust laws, police said. He was 56.

McClendon was alone in his 2013 Chevy Tahoe when it sped into an embankment along a remote two-lane road in Oklahoma City, where it burst into flames, a police spokesman said. The cause of death will be determined later by a medical examiner, the spokesman said.

The crash occurred less than 24 hours after the U.S. Department of Justice announced that McClendon had been indicted for allegedly colluding to rig bids for oil and gas acreage while he was at Chesapeake. He had denied the charges.

At a press briefing in Oklahoma City, Captain Paco Balderrama said McClendon was traveling at “well above” the 40 mile per hour speed limit before he "pretty much drove straight into the wall." He was not wearing a seat belt.

“There was plenty of opportunity for him to correct or get back on the roadway and that didn't occur," Balderrama said.

Industry executives and state officials remembered McClendon as a "visionary" who ushered in a new era of U.S. energy abundance by pursuing the hydraulic fracturing technology that would unlock decades' worth of domestic natural gas and oil resources.

Over more than two decades, he built Chesapeake from a small wildcatter into one of the world's biggest natural gas producers before resigning in 2013, after a corporate governance crisis and investor concerns over his heavy spending

It may take one to two weeks to complete an investigation into the accident, which occurred about 8 miles (13 km) from American Energy Partners, the company that McClendon founded shortly after leaving Chesapeake.

• › McClendon remembered as energy 'visionary' despite controversy

"Aubrey's tremendous leadership, vision and passion for the energy industry had an impact on the community, the country and the world. We are tremendously proud of his legacy," American Energy Partners said in a statement.

Tuesday's indictment followed a nearly four-year federal antitrust probe that began after a 2012 Reuters investigation found that Chesapeake had discussed with a rival how to suppress land lease prices in Michigan during a shale-drilling boom. Although the Michigan case was subsequently closed, investigators uncovered evidence of alleged bid-rigging in Oklahoma.

Chesapeake CEO Aubrey McClendon dies in car crash

 

REVERED FOR HELPING OKLAHOMA

A native of Oklahoma, McClendon attended Duke University before starting Chesapeake in 1989 with his friend Tom Ward. Ward, who later broke away to launch his own company, SandRidge Energy Inc, called McClendon's death "not only a heartbreaking day for me but a sad day for all of Oklahoma."

McClendon was known for his high tolerance for risk and debt and for his lavish lifestyle, which included the purchase of high-end homes, antique boats and an extensive wine cellar.

On his watch, Chesapeake leased a fleet of planes that shuttled executives to oil and gas fields - and the McClendon family to far-off holiday destinations.

Closer to home, McClendon was revered for helping to bolster the Oklahoma economy and revitalize its biggest city, including landing its first major sports franchise, the Oklahoma City Thunder basketball team, in which he had a minority stake.

He was “a visionary who raised the profile of Oklahoma,” Governor Mary Fallin said.

McClendon was one of the foremost leaders of a U.S. energy boom that lifted output to the highest levels in years, reduced reliance on foreign oil and mobilized new pools of investment capital for wildcat drillers.

"I’ve known Aubrey McClendon for nearly 25 years. He was a major player in leading the stunning energy renaissance in America," Texas energy investor T. Boone Pickens said in a statement. "He was charismatic and a true American entrepreneur. No individual is without flaws, but his impact on American energy will be long-lasting.”

Chesapeake, which had recently sued McClendon's AEP on accusations of stealing trade secrets, offered condolences.

"Chesapeake is deeply saddened by the news that we have heard today and our thoughts and prayers are with the McClendon family during this difficult time,” the company said in a statement.

McClendon is survived by his wife, Katie, and their three children, Jack, Callie and Will.

(Additional reporting by Liz Hampton and Ernest Scheyder in Houston, and Jessica Resnick Ault in New York; Writing by Terry Wade and Lisa Shumaker; Editing by Leslie Adler)

Nigeria Deploys Troops to Protect Oil Facilities From Sabotage

http://www.bloomberg.com/news/articles/2016-03-01/nigeria-deploys-troops-to-protect-oil-facilities-from-sabotage

• Halted Forcados oil pipeline showed signs of external damage
• Troops will guard oil installations in the Niger Delta region

Nigeria is deploying more troops to protect oil installations to curb sabotage after a leak forced crude loadings to be suspended last month at a major export terminal.

“We’ve observed that some internal forces are bent on sabotaging the activities of the oil production companies,” Brigadier-General Rabe Abubakar, Nigeria Defence spokesman, said in interview in Abuja, Nigeria. “We are taking extra steps to ensure that we guard these facilities” including pipelines, oil platforms and other installations, he said.

Loading at the Forcados oil terminal, where Nigeria shipped around 200,000 barrels a day last year, was halted after the leak appeared on Feb. 14, according to Royal Dutch Shell Plc. While the company stopped short of calling it an act of sabotage, it said damage observed on the export pipeline was “consistent with the application of external force.”

Shell hasn’t said when it will lift the force majeure -- a legal status protecting a party from liability if it can’t fulfill a contract for reasons beyond its control -- on Forcados shipments.

Criminal Gangs

Nigeria, Africa’s biggest oil producer, loses an estimated 300,000 barrels a day to criminal gangs that tap crude from pipelines that criss-cross the oil-rich southern delta, using it in local refineries or selling it to tankers waiting offshore, according to state-owned Nigerian National Petroleum Corp. The country pumped 1.9 million barrels a day last year on average, according to data compiled by Bloomberg.

“We have a large task force that can contain any aggression,” Abubakar said. “We have enough troops and other security agencies that can face the challenge of the times.”

The move to protect energy installations follows complaints on Feb. 29 from Shoreline Natural Resources Ltd., the third biggest non-international Nigerian oil and gas producer. Chief Executive Officer Kola Karim urged the deployment of troops to the Delta region following the suspension of crude loadings at Forcados.

“We’re faced with the devil on all fronts,” Karim said. “Prices are awfully low, our export terminal has been attacked and we can’t export even if we produce.”