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Thai energy minister calls off oil concession bid

Thai energy minister calls off oil concession bid

Bangkok: 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 with the government’s latest decision to put off the international bidding until the existing Petroleum Act is amended as demanded by civic and energy activist groups.

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

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 increasing...

Icon Offshore awarded major Petronas umbrella contract

Icon Offshore awarded major Petronas umbrella contractKuala 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 w...

Singapore to implement revised bunkering guidelines

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...

Alam Maritime wins ExxonMobil vessel charter deal

Alam Maritime wins ExxonMobil vessel charter dealKuala 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...

Rehobot found almost one month after pirate strike

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 Indo...

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...

Westports hunting terminal acquisitions

Kuala Lumpur: Terminal operator Westports Holdings is on the hunt for Asian merger and acquisition (M&A) targets, its ceo Ruben Emir Gnanalingam told Malaysia’s StarBiz newspaper. “I can tell you that we are keen, but we want to pursue the righ...

Myanmar mulls ditching Yetagun gas field

Bangkok: As has widely been predicted falling oil prices are likely to dent Myanmar’s offshore plans. The future of Yetagun, one of the country’s four offshore gas projects, will be reviewed soon.

Coastal’s first win in 2015

Kuala Lumpur: Coastal Contracts has secured contracts for the sales of two OSVs for an aggregate value of approximately RM197m, the company’s first orders of 2015. Both of these vessels were sold to new customers in Mexico.

Petronas shifts LNG carriers MISC’s way

Kuala Lumpur: In a switch between subsidiaries Petronas has sold five LNG carriers being built at Hyundai Heavy Industries to its shipping line, MISC, for $1.1bn. the ships are due for delivery from September 2016 to December 2017. Petronas will then...

New Philippine dry bulk terminal

Manila: Seasia Nectar Port Services Inc (SNPSI), a joint venture between Seasia Logistic Philippines Inc and the UK’s Nectar Group, has started building a P813m dry bulk terminal in Bataan to the north of Manila.

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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>>