Exxon reports fire, oil spill at Nigeria terminal

Exxon Mobil Corp. said thunderstorms caused a tank fire June 27 and an oil spill today, June 29, at the Mobil Producing Nigeria Qua Iboe Terminal it operates in Akwa Ibom state.

Offshore production and loading of oil continue, the Irving, Texas-based company said in an emailed statement. No fatalities or injuries were reported. The amount of oil lost to the fire and spill hasn’t been calculated, the company said.

Lightning ignited the tank and the fire was extinguished by noon local time June 27, according to the statement.

Lightning knocked out power to the terminal again today, resulting in a spill. Emergency response systems were activated to contain it, shoreline restoration has begun and relevant authorities and community leaders notified, according to the statement.

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N’Goma FPSO arrives at Paenal shipyard in Angola

Following a voyage of 7,331 miles (13,577 km), N’Goma FPSO safely berthed at Paenal’s 490 m quayside at Port Amboim on June 17, 2014. The arrival of the vessel in Angola from Singapore marks the young yard’s second mega FPSO in just eight months.

“Welcoming N’Goma helps to cement Paenal’s key position in the oil industry. Two of the FPSO’s modules were fabricated here, the Sulphate Removal Package and the Hot Oil Pump, both of which have been successfully lifted and integrated onboard the vessel. Paenal is building a reputation as a world-class fabrication and integration yard,” says Cesar Guerra, the yard’s General Manager.
 
Porto Amboim Estaleiros Navais Ltda - known as Paenal yard - represents an important part in the sustainable growth for Angola. The yard - a JV partnership between national oil company Sonangol, SBM Offshore and DSME with holdings of 40%, 30% and 30% respectively - provides an ideal base for the oil industry’s exploration and production offshore West Africa.

“The shipyard is the biggest employer in the region with over 1,200 employees of which over 85% are Angolan. This is an important consideration for our clients. SBM’s first FPSO to berth at Paenal is an important milestone for both the yard and the country,” says Jean-Philippe Rodrigues, SBM Offshore Business Development SVP.

“It demonstrates SBM’s extensive worldwide expertise in relocations and our EPCI capacity across the lifecycle. Together with our partners we look forward to the completion of this large FPSO for our client Eni,” says Ivan Replumaz, MD SBM Offshore Malaysia.

“To meet the project’s specific requirements, the conversion included major upgrade work on the hull, turret and integration of new and refurbished topsides, which was successfully completed in Singapore at Keppel Shipyard. We are now committed to concluding the heavy lifting campaign and integration at Paenal,” says Jerome Garidou, Project Manager.

Once the FPSO is completed, operations will begin on the Eni operated Block 15/06 West Hub offshore Angola by OPS - a JV company between Sonangol and SBM Offshore - which celebrated its 10th year anniversary of operations this month.

“The OPS team is keen to welcome the N’Goma FPSO into the Angolan fleet and to start a fruitful relationship with Eni Angola under the 12-year lease and operate contract,” says Fabrice Dumortier, OPS General Manager.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Giftelyon Multi-Sevices Int'l Ltd and services, UK, online.

Brent oil trades near three-week low on Libya supply, WTI Steady

Brent traded near the lowest price in more than three weeks as Libya prepares to increase exports and amid speculation that Iraq' s crude supplies remain safe from violence. West Texas Intermediate was steady in New York.

Futures were little changed in London after falling for a fifth day on July 4, the longest losing streak since January. Libya, the holder of Africas biggest crude reserves, lifted a force majeure at its Es Sider and Ras Lanuf terminals, National Oil Corp. said on July 6. Fighting in Iraq, OPECs second-largest producer, hasn' t spread to the south, home to more than three-quarters of its output.

"Oil is likely to remain flat," David Lennox, a resource analyst at Fat Prophets in Sydney, said by phone on July 7. Youve got Libyan supply coming back and nothing seems to have happened in the south of Iraq.

Brent for August settlement was at $110.72 a barrel on the London-based ICE Futures Europe exchange, up 8 cents, at 3.17 p.m. Sydney time. The contract dropped 36 cents to $110.64 on July 4, the lowest close since June 11. The volume of all futures traded was about 27% below the 100-day average.

WTI for August delivery was 10 cents lower from the July 3 close at $103.96 a barrel in electronic trading on the New York Mercantile Exchange. There was no floor trading during the Fourth of July holiday and transactions will be booked on July 7 for settlement purposes. The U.S. benchmark crude traded at a discount of $6.75 to Brent.

Libyan Supply

Brent declined 2.4% last week, erasing this years gains, as rebels seeking self-rule in Libyas east agreed to surrender the Es Sider and Ras Lanuf ports, the nations biggest and third-largest export terminals. The government in Tripoli has instructed National Oil to start marketing supplies from the two facilities, Mohamed Elharari, a spokesman for the state-run company, said by phone.

Es Sider can load 340,000 bpd while Ras Lanuf can handle 220,000 barrels, according to the Oil Ministry. Libya pumped 300,000 bpd last month, compared with 1.13 million in June 2013, ranking it as the smallest producer in the Organization of Petroleum Exporting Countries, data compiled by Bloomberg show.

In Iraq, fighting has been concentrated in the north, where insurgents from a breakaway al-Qaeda group known as the Islamic State captured the city of Mosul in June and declared a caliphate in the Iraqi and Syrian territory it controls.

"Theres quite a lot of supply out there," Tom James, the managing director of Navitas Resources in Dubai, said by phone on July 6. "Prices had already started calming down last week as we didn' t see anything sparking off in Iraq that was impacting the southern crude exports, and it looks like we may be seeing some Libyan crude coming back onto the market."

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Giftelyon Multi-Sevices Int'l Ltd and services, UK, online.