Dutch Freighter Sinks after Colliding with LNG Carrier

By Reuters 2015-10-06 02:08:56

A small Dutch freight ship sank early Tuesday morning after colliding with an LNG tanker in the North Sea off the Belgian coast, the Netherlands’ coast guard said. All on board were saved.

Coast Guard spokeswoman Vanessa Strijbosch said 11 of the 12 crew of the Dutch freighter Flinterstar were rescued from frigid North Sea waters, and one was being treated for hypothermia.

The Marshall Island-flagged tanker Al-Oraiq also suffered damage and is anchored by the site of the collision, 10 kilometers from the coast near the Belgian port of Zeebrugge, she said.

Traffic has been halted from entering or exiting the Western Schelt estuary, an important shipping route to the port Antwerp.

The 122,079 dwt Al-Oraiq is not leaking any petrochemicals.

The rescue operation, which included at least three rescue ships, five tug boats and a helicopter, was led and coordinated by the Belgian coast guard, with assistance from the Dutch.

The cause of the collision is not yet known.


Two Firms Fined over Offshore Wind Worker Death

By MarEx 2015-10-05 22:52:05

Two companies have been sentenced after a worker was killed and another seriously injured during construction of an offshore wind farm.

The incident happened when a team of engineers were loading wind turbine blades onto a sea barge for delivery to Greater Gabbard, off the Suffolk coast in the U.K., on May 21, 2010.

During the loading of wind turbine components at Pakeston Quay, Harwich, a 2.11 ton part of the blade transport arrangement fell off, crushing and fatally injuring one worker and seriously injuring another.

Chelmsford Crown Court heard both workers were employed by Siemens Windpower A/S but were working for Fluor Ltd, the principal contractor.

The injured man, Frank Kroeger, was airlifted to Addenbrookes hospital in Cambridge where he was resuscitated twice. He suffered a ruptured spleen, lacerations to his liver, a collapsed lung collapsing, multiple rib fractures on his left side, and significant crush injuries to his right arm and hand, with nerve damage to his thumb and fingers.

His injuries were life-changing and required almost three weeks in hospital in the U.K., followed by a long period of rehabilitation and treatment near his home in Germany.

The family of the fatally-injured man has asked that his name not be released.

The investigation carried out by HSE found serious safety failings in the two firms’ management systems for the loading operation, which allowed vital parts of equipment to go unchecked before being lifted.

Following a four-week trial in July, prosecuted by the U.K. Health and Safety Executive (HSE), Fluor was found guilty of breaching Section 3 (1) of the Health and Safety at Work etc. Act 1974 and was ordered to pay £275,000 ($417,000) in fines and £271,048 ($411,000) costs.

Siemens Windpower was charged with the same offence and also a Section 2 (1) breach of the same act, but pleaded guilty at an earlier stage. They were ordered to pay £375,000 ($569,000) in fines with costs of £105,355 ($160,000).

Speaking after the hearing, HSE Inspector Julie Rayner said: “This incident could easily have been avoided had suitable systems and procedures been in place to ensure that all loads were properly connected whilst being lifted.

“Had the right questions been asked when the lift was being planned and had the bolt and two brackets holding the blade and frame together been checked before they were lifted, the death and serious injury of two workers could have been prevented.

“This case clearly highlights the need to ensure that relevant information is considered when lift plans are produced to ensure that all of the relevant risks are considered.”


Rolls-Royce Cutting More Marine Jobs

By MarEx 2015-10-05 17:15:51

Britain’s Rolls-Royce said it would cut an additional 400 staff from its marine business by the end of next year, its latest move to make the unit more efficient and cope with a fall in orders sparked by lower oil prices.

The marine unit, which depends on oil and gas-related customers for about 60 percent of its business, has seen some of its orders cancelled in the past 16 months as the price of Brent crude collapsed to six-year lows.

Rolls-Royce had already announced in May that it would cut 600 jobs in its marine business, which employs 5,800 people in 34 countries and builds propulsion systems, winches and anchors. The latest job cuts would be worldwide, it said.

In 2014, the marine unit accounted for about 12 percent of Rolls-Royce total group revenue.

Rolls-Royce’s Chief Executive Warren East, who took up the role on July 2, is in the process of carrying out an operational review of the whole business, the results of which he will present on November 24.

The group issued a profit warning last year as it was hit by the slump in oil prices and earlier this year said profits at its biggest business, which makes aero-engines for large planes, would also falter next year.

Maintaining current profit guidance for the marine unit, Rolls-Royce said on Monday it would invest the cost-savings from the job cuts into research and development activity.

“We will sharpen our focus on the marine technologies of tomorrow by significantly increasing our current rate of investment in research and development,” Rolls-Royce’s marine president Mikael Makinen said in a statement.

“This is a fundamentally strong business, but we have to take decisive action to position it for future growth, with a structure that is simple, efficient and effective,” he said. “Reducing our workforce is never an easy decision, but the continued weak oil price, and the need to become more competitive, means it is necessary, if we are to build a strong base from which we can successfully grow this business in the future.”

The company said the latest job cuts would generate full-year savings of 40 million pounds ($60.7 million) with incremental benefits from 2016 onwards, and that the cost would be covered by a previously flagged 30 million pound restructuring charge which would now be spread over this year and next.

“This is an acceleration of the downsizing,” said Haitong Research analyst Edward Stacey.

Shares in Rolls-Royce, which hit a four-year low in September, traded up 3.5 percent to 729 pence, ahead of a two percent rise in Britain’s blue-chip index.

The company added that its focus in the marine unit was to improve competitiveness by reducing corporate and administrative costs.


EPA to Rewrite Ship Ballast Dumping Rules

By Reuters 2015-10-05 16:36:13

A federal appeals court in New York ordered the government to rewrite its rules regulating the discharge of ballast water by ships, in a victory for environmental groups that said the rules were too lenient and threatened the nation’s waterways.

The 2nd U.S. Circuit Court of Appeals on Monday said the Environmental Protection Agency acted “arbitrarily and capriciously” when it decided in 2013 to follow an international standard governing the discharge of harmful organisms, though technology was available to adopt a higher standard.

Writing for a 3-0 appeals court panel, Circuit Judge Denny Chin also said the EPA, using its authority under the Clean Water Act, should have considered onshore facilities to treat ballast water rather than focus on pollution controls aboard ships, where a lack of space might limit their effectiveness.

“It’s a huge win for the environment,” said Allison LaPlante, a professor at Lewis & Clark Law School in Portland, Oregon representing four environmental groups that challenged the EPA.

The EPA did not immediately respond to requests for comment.

Ships take on and discharge ballast water, in quantities estimated at more than 21 billion gallons (79 billion liters)annually in the United States, to maintain stability and compensate for changes in weight, such as when they load and unload cargo or consume fuel.

But in taking on ballast water, ships can inadvertently pick up harmful organisms, as well as sediment and pollutants, and later spread them to other bodies of water.

One such organism, zebra mussels, has caused particularly heavy damage in the Great Lakes region, the environmental groups have said.

The Natural Resources Defense Council, National Wildlife Federation, Center for Biological Diversity and Northwest Environmental Advocates had sued the EPA over its “Vessel General Permit” governing ships’ release of ballast water.

“Invasive species ruin aquatic communities and their ecosystems,” LaPlante said. “The EPA appeared to the take the path of least resistance by adopting an existing international standard that is inadequate to prevent their colonization.”

In court papers, the EPA said it “proceeded methodically and reasonably” toward its conclusions, rather than focus on methods “destined not to play a role at the present time in redressing aquatic nuisance species in ballast water.”

The case is Natural Resources Defense Council et al v. EPA et al, 2nd U.S. Circuit Court of Appeals, Nos. 13-1745, 13-2392, 13-2757.


Trans-Pacific Partnership Agreement Reached

By Reuters 2015-10-05 15:09:43

The United States and 11 other Pacific Rim countries have reached a sweeping deal to set up a free-trade zone for 40 percent of the world’s economy, but the accord on Monday faced initial skepticism in the U.S. Congress.

The Trans-Pacific Partnership is the most ambitious trade pact in a generation and could reshape industries and influence the cost of products from cheese to cancer treatments, presenting key issues also for drug companies and automakers.

Tired negotiators worked round the clock over the weekend to settle tough issues such as monopoly rights for new biotech drugs. A demand by New Zealand for greater access for its dairy exports was only settled at 5 a.m. EDT (0900 GMT) on Monday.

Details of the pact were emerging in statements by officials after days of marathon talks in Atlanta.

The 12 countries will cut trade barriers and set common standards for a region stretching from Vietnam to Canada. The agreement could be a legacy-defining achievement for Democratic President Barack Obama, if it is ratified by Congress.

Lawmakers in other TPP countries must also approve the deal, which would reduce or eliminate tariffs on almost 18,000 categories of goods like machinery, chemicals and food.

The Obama administration hopes the pact will help the United States increase its influence in East Asia to help counter the rise of China, which is not one of the TPP nations.

Initial reaction from U.S. lawmakers, including Democrats and Republicans, ranged from cautious to skeptical.

Vermont Senator Bernie Sanders, a U.S. Democratic presidential candidate, said he was disappointed and warned the pact would cost U.S. jobs and hurt consumers.

“Wall Street and other big corporations have won again,” he said in a statement. Many Democrats and labor groups fear the TPP will mean manufacturing job losses and weaker environmental protections.

Senator Orrin Hatch, a powerful Republican who heads the Senate Finance Committee, was also wary.

“While the details are still emerging, unfortunately I am afraid this deal appears to fall woefully short,” said Hatch, who had urged the Obama administration to hold the line on intellectual property protections, including for drugs.

U.S. lawmakers have the power to review the agreement and cast an up-or-down vote, but not amend it.

A firm TPP champion, Obama said it will “level the playing field” for U.S. workers and businesses.

U.S. trade negotiators will begin briefing Congress about the deal as soon as Monday afternoon, but deliberations will take months, said U.S. Trade Representative Michael Froman.

“This is really a 2016 issue for Congress to consider, not a 2015 issue,” he told reporters.


The agreement will include a parallel forum for finance ministers from the participating countries to discuss a basic set of principles on currency policy, ministers said on Monday.

That takes account, in part, of concerns among U.S. manufacturers and critics who have suggested that Japan has unfairly driven the yen lower to the benefit of its car exporters and other companies.

Democratic Representative Debbie Dingell from Michigan, home of the U.S. auto industry, said currency has been inadequately dealt with. “Nothing that we have heard indicates negotiators sufficiently addressed these issues,” she said in a statement.

The trade talks had snared earlier on how long a monopoly period should be allowed on next-generation biotech drugs, until the United States and Australia negotiated a compromise.

Negotiating teams had deadlocked over the minimum period of protection to the rights for data used to make biologic drugs, made by companies including Pfizer Inc, Roche Group’s Genentech and Japan’s Takeda Pharmaceutical Co.

Negotiators compromised on minimum terms short of what U.S. negotiators had sought. Under the deal, countries would give drugmakers at least five years of exclusive access to the clinical data used to win approval for new drugs.

An additional several years of regulatory review would likely mean pharmaceutical companies would have an effective monopoly for about eight years before facing lower-cost, generic competition, officials said.

The United States, Mexico Canada and Japan agreed to auto trade rules on how much of a vehicle must be made within the TPP region to qualify for duty-free status.

The North American Free Trade Agreement between Canada, the United States andMexico mandates vehicles have local content of 62.5 percent. The way that rule is implemented means just over half of a vehicle needs to be made locally. It has been credited with boosting auto-related investment in Mexico.

The TPP would give Japan’s automakers, led by Toyota Motor Corp, a freer hand to buy parts from Asia for vehicles sold in the United States, but it sets long phase-out periods for U.S. tariffs on Japanese cars and light trucks.

The deal also provides minimum standards on issues ranging from workers’ rights to environmental protection.

Trade ministers said the TPP would be open to other countries in the future, including potentially China.

“There is a real opportunity for China to be a part of this,” Malaysian Trade Minister Mustapa Mohamed said.


Shell Begins Production Off Nigeria

By MarEx 2015-10-05 14:13:16

Shell Nigeria Exploration and Production Company (SNEPCo) has started production at the Bonga Phase 3 project offshore Nigeria.

Bonga Phase 3 is an expansion of the Bonga Main development, with peak production expected to be about 50,000 barrels of oil equivalent per day (boepd). The oil will be transported through existing pipelines to the Bonga floating production storage and offloading facility, which has the capacity to produce more than 200,000 boepd and 150 million standard cubic feet of gas per day.

Production began at the Bonga field in 2005. The Bonga field was Nigeria’s first deepwater development, with a water depth of more than 1,000 meters.

The Bonga project is operated by SNEPCo as a contractor under a production sharing contract with the Nigerian National Petroleum Company, which holds the lease for OML 118, in which the Bonga field is located.

SNEPCo holds a 55 percent interest in OML 118. The other co-venturers are Esso Exploration & Production Nigeria Ltd (20 percent), Total E&P Nigeria Ltd (12.5 percent) and Nigerian Agip Exploration Ltd (12.5 percent).


Deepwater Horizon Settlement Finalized

By MarEx 2015-10-05 12:40:55

The U.S. Department of Justice (DOJ) has finalized a settlement of more than $20 billion with BP PLC arising from 2010’s Deepwater Horizon oil spill. The settlement resolves all federal and state claims against BP for the accident. Louisiana, Mississippi, Alabama, Texas and Florida will be the settlement’s primary recipients and will use the funds for environmental remediation and economic development.

The Deepwater disaster, the largest oil spill in U.S. waters, killed 11 crew members and leaked millions of barrels of crude into the gulf, coating hundreds of miles of shoreline with oil. DOJ announced tentative terms of the deal in July.

The $20.8 billion settlement comes in addition to the $44 billion BP has already incurred in legal fees and cleanup costs.

Deepwater Horizon exploded on April 20, 2010 after gas seeped into the well the rig was drilling. The leak caused an eruption on the deck and the rig sank soon after. Plugging the leak took several months.

BP’s payments will reportedly make payments of about $1.1 billion per year over the next 18 years.

In addition, BP has also committed to paying about $500 million over 10 years to support independent research through the Gulf of Mexico Research Initiative.

The Gulf of Mexico Research Initiative had awarded approximately $315 million in grants as at the end of 2014. Grant recipients are investigating topics including the fate of oil released, the ecological and human health impact of spills and the development of new technology for future spill response, mitigation and restoration.

The Gulf of Mexico Research Initiative was created following the spill through an agreement between BP and the Gulf of Mexico Alliance, a non-profit partnership formed by the states of Alabama, Florida, Louisiana, Mississippi and Texas.

Deepwater Horizon Gulf Restoration Plans Announced

NOAA and the other Deepwater Horizon Natural Resource Trustees have released a 15-year environmental ecosystem restoration plan for the Gulf of Mexico.

The Draft Deepwater Horizon Oil Spill Draft Programmatic Damage Assessment and Restoration Plan and Draft Programmatic Environmental Impact Statement allocates monies that are part of a comprehensive settlement agreement in principle among BP and the U.S. Department of Justice on behalf of federal agencies and the five affected Gulf States announced on July 2, 2015.

In the draft plan, the Trustees detail impacts from the Deepwater Horizon oil spill to wildlife, habitats and recreational potential. They determined that “overall, the ecological scope of impacts from the Deepwater Horizon spill was unprecedented, with injuries affecting a wide array of linked resources across the northern Gulf ecosystem.”

The Trustees are proposing to accept a settlement, which includes, among other components, an amount to address natural resource damages of $8.1 billion for restoration and up to $700 million for addressing unknown impacts or for adaptive management. These amounts include the $1 billion in early restoration funds which BP has already committed.

“NOAA scientists were on the scene from day one as the Deepwater spill and its impacts unfolded. NOAA and the Trustees have gathered thousands of samples and conducted millions of analyses to understand the impacts of this spill,” said Dr Kathryn D. Sullivan, undersecretary of commerce for oceans and atmosphere and NOAA administrator. “The scientific assessment concluded that there was grave injury to a wide range of natural resources and loss of the benefits they provide. Restoring the environment and compensating for the lost use of those resources is best achieved by a broad-based ecosystem approach to restore this vitally important part of our nation’s environmental, cultural and economic heritage.”

NOAA led the development of the 1,400 page draft damage assessment and restoration plan, with accompanying environmental impact statement, in coordination with all of the natural resource Trustees. Specific projects are not identified in this plan, but will be proposed in future project-specific restoration proposals.

The draft plan has an array of restoration types that address a broad range of impacts at both regional and local scales. It allocates funds to meet five restoration goals, and 13 restoration types designed to meet these goals.

The 13 proposed restoration activities cover:

• Restoration of wetlands, coastal and nearshore habitats

• Habitat projects on federally managed lands

• Nutrient reduction

• Water quality

• Fish and water column invertebrates

• Sturgeon

• Submerged aquatic vegetation

• Oysters

• Sea turtles

• Marine mammals

• Birds

• Low-light and deep seafloor communities

• Provide and enhance recreational opportunities

The draft plan is available for 60 days of public comment. Public comments on the draft plan will be accepted at eight public meetings to be held between October 19 and November 18 in each of the impacted states and in Washington, DC.

Comments will also be accepted online and by mail sent to: U.S. Fish and Wildlife Service, P.O. Box 49567, Atlanta, GA 30345. The public comment period will end on December 4, 2015.

The plan is available here.

Timeline of Events

April 20, 2010, RIG EXPLODES: An explosion on the Deepwater Horizon oil rig at the Macondo exploration well kills 11 workers and releases millions of barrels of crude oil into the Gulf of Mexico. The well is capped in mid-July. BP ultimately sets aside $42 billion to pay for cleanup costs, damages and penalties.

November 2012, CRIMINAL CASE SETTLED: BP agrees to pay $4.5 billion in fines and other penalties and pleads guilty to 14 criminal charges. The U.S. government bans BP from new federal contracts, imperiling the company’s role as a top U.S. offshore oil producer and No. 1 military fuel supplier. Separately, the U.S. Department of Justice files criminal charges against three BP employees in connection with the accident.

December 2012, CLASS ACTION SETTLED: U.S. District Judge Carl Barbier gives final approval to BP’s settlement with individuals and businesses claiming to have lost money and property because of the spill. BP initially estimates it will pay $7.8 billion to settle more than 100,000 claims, but the dollar amount is not capped. The company later says the payout may grow substantially, in part because of payouts to many claimants who suffered no harm, and files numerous legal challenges to the agreement.

February 2013, CIVIL TRIAL BEGINS: Officials from the federal government and several U.S. states begin facing BP in court at a three-phase civil trial over how blame should be apportioned between BP, Transocean Ltd, which owned the drilling rig, and Halliburton Co, which did cement work. Government lawyers urge Barbier to find BP grossly negligent, which could roughly quadruple the amount of fines under the U.S. Clean Water Act.

September 30, 2013, SECOND PHASE OF TRIAL BEGINS: The second phase begins to determine how much oil was spilled.

September 4, 2014, JUDGE FINDS BP BEARS MOST OF THE BLAME: Barbier finds BP “grossly negligent” for its role in the oil spill. He assigns 67 percent of the fault to BP, 30 percent to Transocean and 3 percent to Halliburton. BP pledges to appeal.

January 15, 2015, SIZE RULING: Barbier determines that 3.19 million barrels of oil spilled. The amount would be used to calculate damages.

Feb. 24, 2015, SIZE APPEAL: BP appeals judge’s ruling on size of the oil spill.

July 2, 2015, SETTLEMENT REACHED: BP agreed to pay about $18.7 billion in damages for water pollution caused by the spill, settling claims with the U.S. government and Louisiana, Mississippi, Alabama, Texas and Florida.


A2Sea looks to Far East for growth

A2Sea, the Danish offshore wind farm installation vessel and cable-laying group, is looking at the Far East as a potential new market for growth of its business, said Hans Schneider, COO of the Fredericia-based company.
In Europe, the volume of wind farm installation work has fluctuated from one