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Bengal Tiger Line boss outlines plans

Bengal Tiger Line boss outlines plans

Singapore: Celebrating his silver jubilee with the firm, Bill Smart, managing director of Bengal Tiger Line, is today’s shipowner profile on our sister site, Maritime CEO. The boss of the Singapore feeder line discusses regional trading patterns to South Asia and the plans to grow the fleet of BTL.

KrisEnergy completes 2D seismic program offshore Bangladesh

KrisEnergy completes 2D seismic program offshore BangladeshSingapore: KrisEnergy has announced that the Binh Minh 2 vessel has completed a 3,146km 2D serismic acquisition program in the SS-11 exploration block offshore Bangladesh. The 22-day program was conducted by CGG Services.

Congo oil firm eyes Southeast Asia market

Congo oil firm eyes Southeast Asia marketSingapore: The state oil firm of the Republic of Congo has opened an oil marketing office in Singapore as it targets Southeast Asian buyers for crude output due to come onstream next year, Reuters has reported. "The US market is n...

Thailand signs up to container monitoring program

Thailand signs up to container monitoring programBangkok: Thailand has joined the UNODC-WCO Container Control Program becaming the first country in the Association of Southeast Asian Nations (ASEAN) to enter this program.

Kuok-owned shipyard in China plans expansion

Kuok-owned shipyard in China plans expansionSingapore: Expansion work is planned at China's PaxOcean Engineering Zhuhai shipyard for offshore vessels, which is a joint venture between Singapore-based Kuok and China’s Guangdong Yuexin Ocean Engineering. The yard says the e...

Havyard’s new Singapore appointment

Havyard’s new Singapore appointment Singapore: Norwegian ship designer and technology firm Havyard Group has appointed Hallvard Fosnavaag, 51, as its new head of Havyard Far East in Singapore responsible for the markets in Asia and the Middle East, with the exception o...

Construction nears for North Sumatra mega port

Construction nears for North Sumatra mega port Jakarta: Details have emerged of state port operator Pelindo I’s planned $1.2bn port project in North Sumatra. The Kuala Tanjung port will be based in Batubara regency, home to resources such as oil palm and aluminium.

Hibiscus Petroleum awarded licence

Hibiscus Petroleum awarded licenceKuala Lumpur: Hibiscus Petroleum announced that its jointly controlled entity Lime Petroleum Norway has been awarded a licence PL591C, an extension of its current licences awarded in 2014. PL591C has the same partnership structure...

Calls grow to develop Sabah

Calls grow to develop SabahKuala Lumpur: The campaign to make Sabah Port Malaysia's eastern transhipment hub is gaining traction, according to the president of the Federation of Sabah Industries, Datuk Wong Khen Thau. "We hope the plan could be implemented ...

Bangkok looks beyond Myanmar for gas supplies

Bangkok looks beyond Myanmar for gas suppliesBangkok: The Thai government is looking to diversify its gas dependence on neighbour, Myanmar. Myanmar currently supplies around a quarter of Thailand’s gas demand, but Myanmar’s own energy needs are growing leading Bangkok to s...

Coastal Contracts sets up in Mexico

Coastal Contracts sets up in MexicoKuala Lumpur: Another Southeast Asian offshore operator is looking to get in on the booming Mexican energy scene. Malaysia’s Coastal Contracts has incorporated Coast Oil (COSA) in Mexico. The subsidiary will lease and sublease a...

Sihanoukville port readies IPO

Bangkok: Sihanoukville Autonomous Port (SAP) is gearing up for an IPO. The port, which handles nearly two thirds of Cambodia’s sea traffic, has seen an average annual revenue growth rate of 10% since 2012. The port is now preparing its IPO docu...

Singaporean and Indonesian victims named in Jingjiang tugboat sinking

Singapore: Two Singaporeans and one Indonesian national have been named among the 22 people killed when a tugboat sank last week in the Yangtze River, near Jingjiang, China. Jurong Marine Services’ assistant manager Baginda Ali Bin Zainul Abidin...

Tanjung Offshore investigated by anti-corruption commission

Kuala Lumpur: Tanjung Offshore has announced that The Malaysian Anti-Corruption Commission (MACC) is probing the company in an on-going inquiry, in which the company is extending its full cooperation. "The company received a request for more infor...

New ecoship research initiative

Singapore: Four organisations will collaborate to development new ecoship. A*STAR's Institute of High Performance Computing (IHPC), Semcorp Marine, University of Glasgow and UGS signed a thee-year memorandum of understanding (MoU) today.

SBIC set to axe more subsidiaries

Hanoi: The slimming down of Vietnam’s top shipbuilder in the wake of a deep financial crisis will continue this year. State-run Shipbuilding Industry Corporation (SBIC), formerly known as Vinashin before its spectacular crash five years ago, wil...

Call to allow foreigners to control greater slice of public firms

Hanoi: The State Securities Commission (SSC) is pushing forward a proposal to make IPOs of state run firms more attractive. With many IPOs failing to garner much interest of late, including a slew of port offerings from Vinalines, the SSC has prop...

Fund raising for Thoresen Thai

Bangkok: Thoresen Thai Agencies has settled the rights offering subscription price for its newly issued shares at THB 14 per share, representing a 25% discount, at a ratio of 15 existing shares to six newly issued shares with two free warrants. In ad...

PetroVietnam boss admits oil production likely to be slashed

Hanoi: With oil prices falling quicker a lead filled ballon the Vietnam National Oil and Gas Group (PetroVietnam) is likely to slash oil production this year by around 450,000 tonnes. PetroVietnam chairman Nguyen Xuan Son told local media the grou...

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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>>