News

Indonesia to bring ports online in September

Indonesia to bring ports online in September

Jarkata: The Indonesia government is expected to start operation of a new online system at the country’s four major ports in September this year. According to the Transportation Ministry's sea transportation director general, Bobby Mamahit, the Inaportnet system will allow traders to request clearances and permits online to move cargoes.

Emas Offshore takes two year option on Perisai Petroleum crewboats

Emas Offshore takes two year option on Perisai Petroleum crewboatsKuala Lumpur: Perisai Petroleum Teknologi has announced that subsidiary Intan Group has received notice from Emas Offshore to exercise a two year option on three vessels on bareboat charters.

BW LPG exercises purchase option on VLGC

BW LPG exercises purchase option on VLGCOslo: BW LPG has exercises its purchase option on VLGC Vermilion First (49,999dwt, built 2010) from Japan’s Daiichi Chuo Marine for $73m. The vessel, which has a capacity of around 77,323 cu m, has been on a time charter with BW...

Songkhla Port upgrades facility for better access

Songkhla Port upgrades facility for better accessBangkok: Songkhla Port in southern Thailand has renovated its breakwater structures for better ship access. The thalweg at the port usually becomes shallower during monsoon seasons as waves often sweep sand from the breakwater ont...

Questionable disability claims tarnishing Philippines’ crewing credentials

Questionable disability claims tarnishing Philippines’ crewing credentials Manila: A crewing expert in Manila has warned the Philippines crewing industry is losing out because of many fake disability claims. Speaking with our sister site, Maritime CEO, Barista Uno, founder of the widely read Marine Café Bl...

Thai energy minister calls off oil concession bid

Thai energy minister calls off oil concession bidBangkok: Thai energy minister Narongchai Akaraseranee endorsed an announcement calling off the 21st round of petroleum exploration and exploitation concession auction. Akaraseranee said the cancellation of the bidding is in line w...

Danang sets out port expansion plans

Danang sets out port expansion plansHanoi: The central Vietnamese port of Danang has mapped out its expansion plans. Its Tien Sa terminal will have $47m spent on it by 2018 to allow ships of up to 50,000 dwt to call. A logistics service centre will be built on 20 ha...

Tuas reclamation to start soon

Tuas reclamation to start soon Singapore: Singapore’s huge Tuas port project is set to kick off in about three months time with South Korea’s Daelim Industrial and Belgium’s Dredging International set to get reclamation work underway in the middle of the yea...

Kalimantan coal terminal under construction

Kalimantan coal terminal under construction Jakarta: Coal mining giant Asiatic Universal Indonesia has started building a $3bn coal port and processing plant in Muara Badak and Merangkayu in Kutai Kartanegara, East Kalimantan. Construction will take two years. The port is one ...

Taskforce to cut turnaround times at Indonesia’s ports

Taskforce to cut turnaround times at Indonesia’s portsJakarta: Indonesia’s president Joko Widodo is setting up a taskforce to speed up turnaround times at the nation’s ports. Turnaround times in the archipelago average around eight days, while neighbour Singapore handles a ship typi...

Singapore firm to build offshore base in Myanmar

Singapore firm to build offshore base in Myanmar Kuala Lumpur: Singapore-based Myanmar Offshore Supply Base (MOSB) will construct, manage and operate a new port facility in Mawlamyine in Mon state. The site is on the Gulf of Martaban, acorss the bay from Yangon. The port will help ...

Five more for Maybulk

Kuala Lumpur: Malaysian Bulk Carriers (Maybulk) has set aside RM400m as it goes about another fleet expansion with five new bulkers eyed which will take its fleet to 27 or 1.5m dwt by 2018. “Many shipping companies are increasingly running into f...

Icon Offshore awarded major Petronas umbrella contract

Kuala Lumpur: Malaysian offshore operator Icon Offshore has received a letter of award from Petronas Carigali for the provision of spot charter marine vessels under an umbrella contract. The contract is for a period of two years with a one year op...

Singapore to implement revised bunkering guidelines

Singapore: The Maritime and Port Authority of Singapore (MPA) has advised via circular, that its revised bunkering guidelines announced at SIBCON last year will come into effect from September 1. The two sets of guidelines, namely the Singapore St...

Alam Maritime wins ExxonMobil vessel charter deal

Kuala Lumpur: Malaysian offshore vessel operator Alam Maritim has received a letter of award from ExxonMobil Exploration and Production Malaysia for the provision of an accommodation work vessel for Tapis EOR Brownfield Modifications and Retrofits Pr...

Rehobot found almost one month after pirate strike

Manila: After more than three weeks the tanker Rehobot has been found in Philippine waters. The Indonesian-flagged chemical tanker was hijacked on the night of January 28 off Lembeh Island in Indonesia. Three days later all 14 Indonesian crew were ...

Singapore’s first War Risks Mutual launched

Singapore: The Standard Club Asia Ltd (Standard Asia) has announced the launch of its new Singapore War Risks Mutual (SWRM) Class. This is the first Singapore-based national mutual war risks insurance and is fully supported by the Singapore Shipping ...

Philippines cabotage changes pass first test

Manila: The Philippines senate has approved a bill which allows foreign vessels to dock in multiple ports, provided the cargo being carried is for import or export. Should it be approved in the house of representatives, the change will allow for t...

Swire Bulk Logistics forms New Zealand partnership

Singapore: Swire Bulk Logistics, the industrial shipping division of China Navigation Company, has formed a partnership with New Zealand’s Golden Bay Cement, a trading division of Fletcher Building, to build, own and operate a dedicated, self-disch...

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In Focus

Cheaper oil puts brakes on OSVs

Kohe Hasan from law firm Oon & Bazul on the offshore outlook for 2015

Cheaper oil puts brakes on OSVs

The offshore supply vessel (OSV) industry has seen significant growth in recent years. However, the steep fall in oil prices of late could put a spanner in the works for the OSV industry.

At present, global oil prices are in the middle of one of its steepest selloffs since the financial crisis of 2008/2009.  World oil prices, which were hovering in the region of $110 per barrel from January 2010 until mid-2014, have taken a nose dive since June, more than halving in the past six months.

Whilst the decline in oil prices is likely to be a boon for consumers, the same cannot be said for the OSV industry. This is because oil majors are likely to cancel or delay their drilling operations and big-ticket production projects which are predicated on high oil prices. Evidence of this can already be seen in the recent announcement by ConocoPhillips that it would be cutting investment spending in 2015 by 20%.

The potential reduction in drilling operations and production projects would be of particular significance to OSV operators (both owners and charterers). This is so as drilling operations are a key driver in the demand for the use of OSVs such as platform supply and anchor handling tug vessels. OSV operators are therefore expected to experience a fall in the demand for OSVs.

One possible repercussion of the fall in the prices of oil and the expected fall in demand for OSVs is that charterers may seek to discharge themselves from charterparties which they had concluded prior to this decline. Such a trend was seen from the collapse of the freight market in 2008 which saw many charterers in the dry bulk industry attempt to discharge themselves from unprofitable charters. Similarly, this trend is likely to be seen in the context of the OSV industry as charterers would find that their charterparties have become significantly less profitable if the OSVs are unutilised as a result of the fall in demand. The need to discharge  ...   More>>