HALIFAX -- An important milestone for the Irving Shipyard in Halifax and Canada's shipbuilding strategy is arriving soon.

On Friday, the East Coast shipyard is set to deliver the first of the new offshore Arctic patrol ships to the Royal Canadian Navy about five years after the program began.

At 103 metres long, 19 metres wide and 6,615 tonnes, Harry DeWolf is the largest ship built for the Royal Canadian Navy in 50 years. It is the first of six ships destined for the navy from the Irving Shipyard, with two more expected for the Canadian Coast Guard.

Harry DeWolf is almost two years behind schedule, with some of the delay being blamed on the COVID-19 pandemic. Operations at the Irving Shipyard were shut down for over three months while the company implemented new protocols to deal with the coronavirus. No cases of COVID-19 were reported among shipyard workers.

Speaking to CTV News Thursday, Irving Shipyard president, Kevin McCoy, said it has been a long journey to re-establish shipbuilding on a large scale here in Canada.

"The ship is going to be, I would say, a jack-of-all-trades for the Canadian navy," McCoy said. "Everything from persistent offshore Maritime surveillance to patrols in the Arctic, to even humanitarian assistance and disaster relief to the homeland."

The contract for the six Arctic patrol vessels is pegged at $3.5-billion under Ottawa's national shipbuilding strategy. An additional 15 ships will be built by Irving Shipyard to replace the navy's 12 frigates and three recently retired destroyers at an estimated cost of $60 billion. Construction of those were set to begin in 2023, but McCoy says that date could be pushed back due to the pandemic.

In May 2018, Prime Minister Justin Trudeau announced plans to spend an additional $15.7 billion for 18 Canadian Coast Guard ships, including two additional Arctic patrol vessels from Irving. Seaspan Shipbuilding in Vancouver will build the rest; as well as four science vessels for the coast guard and two naval support ships.

Speaking further of the delay in completing the Harry DeWolf and her sister ships, McCoy said, worldwide, it's challenging to build any new class of ship.

"We had to not only build a new class of ship; but also re-establish an entire industry in Canada," said McCoy. "hire new people, train new people. We had to put $400 million worth of infrastructure in we've learned a tremendous amount."

McCoy expects the timeline for the remaining ships coming off the line to be faster.

As for cost, McCoy said the Harry DeWolf and the remaining ships will be built within budget.

"This ship, all in, about $500 million dollars, with the follow on ships considerably less," said McCoy.

The next ship will be off the line and ready for delivery in the spring of 2021.

In terms of the function of the vessels, they will conduct surveillance operations throughout Canada's waters. They will operate in the Arctic between June and October and are capable of operating in first-year ice of 120-centimetre thickness.

The ships can assist in anti-smuggling and anti-piracy operations. Depending on mission requirements, it can accommodate small utility aircraft up to the new Sikorsky CH-148 Cyclone helicopter.

Additionally, the ships can carry shipping containers, underwater survey equipment, or landing craft. The ship is equipped with a 20-tonne crane, providing self-load and unload capability. In order to provide rapid mobility on land or ice, the ship has a bay for specialized vehicles such as pickup trucks, ATVs, and snowmobiles.

The ship can hold a crew of 65, with an additional 20 people, and can sustain crews at sea for four months.

Meanwhile, Friday's handover ceremony will take place at 1 p.m. at Her Majesty's Canadian Dockyard in Halifax.

With files from The Canadian Press

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Irving Shipyard to deliver first offshore Arctic patrol vessel to the navy Friday - CTV News Atlantic

(Courtesy International SOS)

Offshore staff

LONDON International SOS and Singapore-based Energy Drilling Management have successfully piloted the ICC AOKpass mobile app for an offshore drilling program on behalf of Thailands PTTEP.

Use of the app is said to provide trust in individuals COVID-19 compliance status, in this case from Singapore to Thailand.

Following a pilot launch in May, Energy Drilling and International SOS tested the app for a 10 strong crew needing to travel aboard the drilling vessel.

All the personnel underwent screening with a PCR swab test. Results were verified by a doctor and then saved on the crews individual AOKpass app before being sent to the client in Thailand ahead of their journey.

Using these results, the two companies and PTTEP were able to smooth entry to the Songkhla Port Authority following the vessels arrival in Thailand. They were able to demonstrate to the authorities that the medical test results were from an accredited source and had been authenticated via the AOKpass app.

Alex Maroske, Head of Quality, Health, Safety, Environment at Energy Drilling, said:Using blockchain to secure and verify the data, as well as the ability to control and carry around your own health records is a breakthrough and will be a major enabler in allowing businesses to return to work.

According to International SOS, users can download the ICC AOKpass app to their mobile device and then securely store an authenticated digital copy of their COVID-19 compliance status certificate, as provided by their consulting medical professional.

Data entered into ICC AOKpass remains localized at all times within the users app and does not rely on centralized data records or external systems. Hardcopy certificates issued by medical professionals, are digitized, authenticated and made available for verification by employers, authorities or other third parties.

07/30/2020

Read more from the original source:

AOKpass app confirms offshore drill crew's COVID-19 compliance - Offshore Oil and Gas Magazine

Offshore Heavy Transport (OHT), a company specializing in, well, offshore heavy transport, has decided to diversify its offering and dive into the offshore wind turbine generator installation business.

OHT said Thursday it had entered into a binding Heads of Agreement with China Merchants Heavy Industry (CMHI) in Jiangsu, China for the construction of two wind turbine generator (WTG) installation vessels.

The company will have options to order two more vessels of the same type. On behalf of OHT, the HoAs were signed by its subsidiary VIND Offshore Installation AS.

The vessels will be jack-ups of GustoMSC design and will be prepared to handle the next generation WTGs, featuring a telescopic crane with a maximum capacity of 2,500t and a maximum lifting height of approx. 165 meters.

The units will be capable of installing offshore wind turbines in water depths up to 65 meters.

OHT says the vessels will have reduced environmental footprint by way of energy and heat recovery, battery hybrid solutions as well as a sophisticated electrical and control system, reducing CO2 emissions by 20% compared to similar units.

As a future option, the vessels have been prepared for fuel cells powered by hydrogen to be installed to cut emissions even further, OHT said.

"By working closely with GustoMSC, the shipyard and key vendors to optimize the design, the commercial and delivery terms are very attractive in todays market," the company added.

The first unit will be delivered in early 2023, while the delivery structure for the second unit is flexible, Offshore Heavy Transport said.

Responding to client demand for highly capable vessels

Torgeir E. Ramstad, CEO for OHT said: Through this initiative, OHT firmly establishes its position as a leading, fully integrated Transport and Installation (T&I) company for offshore wind. In doing so, we are responding to client concerns about the lack of capable vessel capacity in the booming offshore wind market. We hear them applauding the development of a capability by a single company to handle the T&I of next-generation foundations and turbines.

The venture is based on a concept and business model initially developed by VIND Offshore Installation AS and its founder Rune Magnus Lundetr, the company said.

Rune Magnus Lundetr said that OHT already has the organization, systems, track record, and market presence required to successfully deliver and execute the offshore wind installation initiative.

"We look forward to our involvement in the worlds first integrated pure-play T&I company in the offshore wind segment with interesting triggers for further growth, including the expansion of the Alfa Lift series of foundation vessels and possibly more jack-ups through exercising the options," he said.

The company is not new to offshore wind per se, as its vessels have transported a plethora of offshore wind turbine components in recent years.

"Since 2017 the company has been targeting a leading position in this market, resulting in several contracts to transport offshore wind foundations. Most notably the ongoing Moray East project where OHT is transporting 48 jacket foundations from the UAE to Scotland," OHT said.Alfa Lift Foundation Installation Vessel will be delivered in 2021 - Credit: OHTTwo years ago, OHT ordered what it said would be the worlds largest and most efficient offshore wind foundation installation vessel Alfa Lift at CMHI. This vessel, to be delivered next year, is designed to install monopiles and jackets from a floating vessel in dynamic positioning mode to achieve higher efficiencies and lower cost.

"Combined with the existing transportation fleet, OHT will be able to deliver class-leading Transport & Installation services of the largest foundations, whether they are produced near to the windfarm or on a different continent," the company said.

Once delivered, the Alfa lift will transport and install foundations at the worlds largest offshore wind farm Dogger Bank A & B from 2022.

"With the addition of the two jack-up installation vessels, OHT further demonstrates its commitment to offshore wind, securing a leading market position. With this latest announcement, OHT further strengthens its vision to contribute to an efficient and sustainable energy supply for the future," OHT said.

Read the original here:

OHT Enters Offshore Wind Turbine Installation Business - MarineLink

Offshore staff

LUXEMBOURG Jan De Nul Group has started transporting the pin piles for the 376-MW Formosa 2 wind farm offshore Taiwan.

The first batch of 26 pin piles was loaded on the transportation vessel BBC Onyx at EEW SPCs facilities in South Korea and offloaded in the Formosa 2 marshalling port of Taichung in Taiwan.

The company subcontracted EEW SPC for the supply of all 194 pin piles. It started fabrication in January at three different yards in South Korea and Malaysia. This first pile delivery is one of eight batches in total assigned to BBC Chartering.

All the pin piles will be stored in Taichung Port until foundation installation starts later this year.

Developed by Macquaries Green Investment Group, JERA and Swancor Renewable Energy Company Ltd., Formosa 2 will have 47 Siemens 8-MW turbines on jacket foundations in up to 55 m (180 ft) water depth. The wind farm will be located between 4 and 10 nautical miles off Miaoli County.

07/31/2020

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First Formosa 2 offshore wind farm pin piles arrive in Taiwan - Offshore Oil and Gas Magazine

Boston Energy has secured a contract to support MHI Vestas during wind turbine pre-assembly operations on two offshore wind projects in the UK.

Boston Energy will assist MHI Vestas on the 857 MW Triton Knoll and the 950 MW Moray East projects.

These are due to commence later this year in Invergordon for Moray East and Able Seaton for Triton Knoll, Boston Energy said.

This is fantastic news for Boston Energy; this contract award solidifies our close relationship with MHI Vestas which has been built since 2017 in supporting their last 5 major pre-assembly projects for Burbo Bank, Walney Extension, Northwester, Northwester 2 and Borssele, Rob Wilhoite, Boston Energy Account Manager & Project Lead said.

Located over 32 kilometres off Lincolnshire, England, Triton Knollwill comprise 90 MHI Vestas 9.5 MW turbines set to be commissioned in 2021.

Moray East will feature 100 MHI Vestas 9.5 MW turbines installed some 22 kilometres off the Aberdeenshire coast, Scotland, and slated for commissioning in 2022.

View original post here:

MHI Vestas and Boston Energy Team Up on Two UK Offshore Wind Projects - Offshore WIND

Sleep deprivation and offshore sailing go hand in hand for navigators, and in particular for short-handed sailors. Yachting Worlds Mike Broughton shares his top tips on dealing with a lack of sleep:

Theres no getting away from the fact that tiredness profoundly affects our performance. Sleep deprivation can severely degrade our decision-making abilities. The latest scientific research into sleep, such as brain scans carried out by leading neuroscientist and sleep specialist Professor Matthew Walker, has shown how we are more likely to make flawed decisions when tired, sometimes with big consequences.

The military use sleep deprivation in training and selection procedures and have been at the forefront of research into its effects. Sleep education was considered an unusual subject when I first learnt to fly in the Fleet Air Arm, but there are many times sleep deprivation has been shown to be a major factor in accidents and disasters, from the Exxon Valdez tanker grounding and oil spill, to the Chernobyl nuclear disaster, and the fatal Air France crash in 2009.

On a less cataclysmic scale, two of Britains best single-handed racers have grounded their yachts while leading their race. They wont thank me for mentioning it, but Mike Golding had a huge lead in the Around Alone Race in 1999 before he grounded on New Zealands North Island while suffering from heavy sleep deprivation.

Meanwhile, in the last Route du Rhum, Alex Thomson had a 200-mile lead on the final approach to Guadeloupe. Unfortunately for Thomson, he slept through his sleep alarm and sailed Hugo Boss onto the rocks on the northern corner of the island and had to use his engine to extricate himself, incurring a penalty, which lost him the race win.

For sailors likely to experience sleep deprivation, understanding the different cycles of sleep is important, and can hopefully help mitigate mistakes. The cycles are categorized into Non- Rapid Eye Movement (NREM, both deep and light sleep) and the more active dreaming cycles of Rapid Eye Movement (REM). Full story

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Sleep deprivation and offshore sailing - Scuttlebutt Sailing News

Metocean devices will be deployed in the Irish Sea in late July or early August to collect data on waves and currents at the site of the proposed Arklow Bank offshore wind project.

Four separate devices will be deployed off the East Coast of County Wicklow, Ireland, using either the AMS Retriever or Husky, a Notice to Mariners said.

They will include a seabed frame with the sensors mounted on it, an anchoring system, and a surface marker buoy.

The devices will remain in place for approximately six months, serviced on a three-monthly basis.

Hydrographic and geophysical surveys are also currently ongoing at the site.

The Arklow Bank Wind Park Phase 2 site is being developed by SSE Renewables.

The project, with a consented minimum installed capacity of 520 MW, is planned to be built by 2025.

SSE also co-developed the 7-turbine 25 MW Arklow Bank Phase 1 with GE Energy in 2004 as a demonstrator project to prove the opportunity that offshore wind energy could represent for Ireland. The Arklow Bank Phase 1 is Irelands first and only operating offshore wind farm.

Continue reading here:

Metocean Survey Starts Offshore Ireland - Offshore WIND

Business Maverick's Ruan Jooste, left, political analyst Dr Ralph Mathekga, centre, co-founder, director and investment strategist at Brenthurst Wealth Management Magnus Heystek, right. (Photos supplied)

There is not a South African investor that has not watched the meteoric share price rise of the FAANGS Facebook, Amazon, Alphabet, Netflix and Google with something close to envy.

The Big Tech superstocks arent just surviving the coronavirus crisis, theyre thriving.

The NYSE FANG+ index, also home to the likes of Tesla, Twitter, Nvidia and Alibaba, is blowing away the rest of the stock market and flirting with record highs of its own.

All this while local markets have returned just 2% to 3% over the past five years.

However, there is no reason why South African investors should watch from the sidelines. While repressive laws and capital regulations prevented outward investing in the 1980s and 90s, this changed as the ANC government loosened capital controls in the 2000s, and the rise of exchange-traded products made the process easier and cheaper.

The result was that over the past decade there has been a slow but steady trickle of funds out of South Africa.

But then along came the Covid-19 pandemic and South Africas infamous lockdown, now on day 126, which will prove to be the proverbial straw that broke the back of the economy.

South African consumers and investors, more depressed than at any other time in this nations history, are wondering whether it is worth investing their hard-fought-for funds into local stocks. Will the returns justify the risk?

Daily Maverick associate editor Ruan Jooste hosted a webinar to discuss this topic. Her guests were Magnus Heystek, co-founder and director of Brenthurst Wealth Management, an outspoken advocate for offshore investment, and Dr Ralph Mathekga, an equally outspoken political and economic analyst who provided some perspective on the local political landscape.

Historically investors did not need to take the risk, says Heystek. Local returns easily matched or beat offshore returns. But this started to change in 2010 when the commodity cycle started to turn. By 2013 the rand was losing value as a result of the economic policies of the ANC and the JSE started to lose its sparkle. The returns over the last decade suggest you should definitely add to your offshore portfolio.

Hindsight is a marvellous thing, but $100 invested into Netflix 10 years ago would be worth $6,000 today. The tech funds have been growing at 15% per annum in dollar terms, says Heystek. Domestic investors dont have this opportunity, simply because we dont have a tech or biotech sector in South Africa. One hundred years ago, if you wanted gold you had to come to SA. The gold mines of today are in Silicon Valley and elsewhere.

The problem with any conversation on offshore investing, as Heystek will attest, is that it quickly becomes emotional, with those investing offshore branded as unpatriotic.

Its an emotional topic, says Mathekga. It becomes even more so when its assumed that offshore investors are rich whites. But that is not necessarily the case. Offshore investors are those who want to manage their money wisely whether they have a lot or a little.

He finds the idea of economic patriotism an odd one. People cannot invest in one place just because it makes emotional sense. You must go where the returns are and where the fundamentals make sense. In SA the fundamentals can be questioned.

Inevitably, what investors really want to know is: Is South Africa the next Zimbabwe?

What is disconcerting, says Mathekga, is that the government has shifted visibly during the time of Covid towards a command-style economy.

We are becoming more inward-looking with a bigger role for the state. The political circumstances are not in favour of growth.

Heystek is blunt.

Are we going the route of Zimbabwe? No. But the country we should compare ourselves to is Argentina.

In the 1930s it was believed that Argentina would be the next United States, a superpower in the making. Instead, since then it has defaulted on its sovereign debt at least nine times. It was just bad politics.

Today Argentina is paying the price with a currency that has collapsed to ARS72 to one dollar. A decade ago it was ARS3 to the dollar.

Under the circumstances then, it seems that if one has the means to do so, some offshore investing is prudent.

How much one invests is up to the individual investor.

Finding a balance can be tough, says Heystek. But if you view yourself as a global citizen, one who plans to travel, or consume products produced overseas like the iPhone, it might even be close to 100%.

Of course, for those invested in funds governed by Regulation 28 of the Pension Funds Act, there is little choice. The rules allow fund managers to invest a maximum of 30% of the fund into offshore equities.

There has been talk about National Treasury possibly adjusting some of the rules governing asset allocation within pension funds, but this requires a lengthy period of consultation with the asset management industry and is unlikely in the immediate future.

What is alarming investors is the suggestion that the government will direct a portion of pension fund investments into strategic projects.

Can we trust a government that has failed to manage its own funds adequately and is now extending its hand? asks Mathekga. The public mood is not in favour of this.

Of course, unless ones employer directs it so, investing in a retirement fund is entirely voluntary but there are massive tax advantages to doing so. The pros and cons make for an interesting discussion, but one that was well beyond the 60-minute limit of the webinar.

For individuals older than 55, Heystek suggests maturing their retirement annuity and taking out the one-third allowance, which is tax-free. This can be invested offshore into ETFs, gold coins or biotech funds, he says. Convert the balance into a living annuity that you can take 100% offshore. The returns last year were 37%.

If you are younger, he says, look at your portfolio and move funds within the portfolio to ensure it has offshore exposure.

He favours developed markets particularly tech, healthcare and biotech but also advocates for a small exposure to emerging markets like China.

China has only recently been included in the MSCI and Morningstar benchmarks. One or two local fund managers have made great returns investing in China, but I would not put all my money there maybe 10%.

South African asset managers offer a variety of products that make offshore investing relatively simple. Some are rand-denominated, while others are denominated in dollars, euros or sterling and require that you convert your funds before investing your bank or investment platform will do this for you.

And for Mathekga, who claims he is looking for easy-to-understand investment solutions, as do most millennials, the likes of Sygnia, CoreShares, Easy Equities, Satrix and globally, Blackrock, offer an easy entry into the world of investing. BM/DM

There is a wealth of information available on this topic for anyone interested in reading further:

SA investors in deep denial, should invest 80% offshore 

Best property investment is far from home

Regulation 28: hindering investors’ ability to maximise return or protection from greater downside?

The economic cost of tax, our low savings rate and red tape

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Offshore investing: Its not unpatriotic - Daily Maverick

Natalie - courtesy of Cuxhavener Schiffahrtskontor (CSK) GmbH & Co.

By The Maritime Executive 07-27-2020 03:05:27

An offshore supply vessel has reportedly been attached in the waters near the Mexican state of Veracruz. This latest attack highlights the increasing dangers for seafarers in the Bay of Campeche area of the southern Gulf of Mexico.

Dryad Global is reported that on July 24 the Mexican-flagged offshore supply vessel the Natalie was boarded. The incident took place overnight with the vessel be boarded under the cover of darkness. At the time of the attack, the supply vessel was approximately 12 nautical miles northeast of Coatzacoalcos, Mexico. The Natalie is believed to be currently under the management of Cuxhavener Schiffahrtskontor (CSK) GmbH & Co., a shipping and port agency based in Cuxhaven, Germany.

Dryad is reporting receipt of a message from the crew saying, We would like to inform you that at this moment pirates are getting on board the ship Natalie which is near the ODIN platform. The report says that the crew were subjected to a violent armed boarding and robbery of personal belongings but it is unknown if the crew was kidnapped or injured nor if any of the cargo aboard the ship was stolen.

This area near Mexico has been coming under increasing attack with a broad range of vessels, including other supply ships, oil platforms, fishing vessels and other commercial ships, all having been targeted. The US Government recently issued a warning about dangers in the region.

At least five vessels were attacked in April 2020 with Dryads analysis showing that a total of 20 fishing vessels and 35 oil platforms and offshore supply vessels have been targeted in the Bay of Campeche area since January 2018. This has included the use of guns resulting in thief, crew injuries and hostage situations according to Dryad. However, it is believed that attacks in region are being under reported, especially against larger commercial vessels.

The ICC International Maritime Bureau recently reported that attacks on seafarers were on the increase in 2020. The IMB report cites four attacks in Mexico all targeting offshore vessels and happened within an 11-day period in April. One anchored accommodation barge the IMB said was boarded by six people wearing face masks and armed with automatic weapons and pistols. They attempted to enter and opened fire, injuring a crew member and damaging three windows. Despite raising the alarm and a naval boat being dispatched the attackers reportedly escaped with high-value project equipment.

Local authorities are continuing to investigate the current incident and Dryad is monitoring for additional details regarding the status of the crew and the attack.

Read this article:

Offshore Supply Vessel Attacked off the Coast of Mexico - The Maritime Executive

On July 15, 2020, U.S. Customs and Border Protection issued Jones Act guidance on the installation of offshore wind farms in U.S. waters. This is the first offshore wind guidance issued by CBP since 2011.

The Jones Act is the popular term for a group of laws which restrict certain activities in U.S. waters to qualified U.S.-flag vessels. Section 27 of the Merchant Marine Act, 1920 in particular restricts the transportation of merchandise between two points in the United States to qualified U.S.-flag vessels owned and operated by U.S. citizens absent an exception.

Similar laws apply to the transportation of passengers as well as dredging, fishing and towing in defined U.S. waters. A point in the United States is every place within U.S. territorial waters as defined by CBP (out to three nautical miles from the coast) and can also include any man-made object, such as a drill rig, attached permanently or temporarily to the U.S. outer continental shelf beyond three nautical miles for defined purposes.

The request for guidance stated that the installation operations will occur at two sites located in U.S. territorial waters off the coast of Rhode Island and Massachusetts. It is not evident from the ruling which sites CBP is referring to since U.S. territorial waters for purposes of the Jones Act (unlike other purposes) is three nautical miles from the coast, not 12 nautical miles from the coast.

In the ruling, CBP confirmed the well-understood maxim that a foreign installation vessel can install wind tower components so long as the vessel is stationary and does not transport components but is provided those components from shore via Jones Act qualified feeder vessels.

CBP also addressed the issue of vessel equipment for the first time since it issued new guidance on December 11, 2019, effective February 17, 2020. That guidance is the subject of ongoing litigation in the U.S. District Court for the District of Columbia.

CBP has long held that vessel equipment is not merchandise and therefore can be transported by a foreign vessel between two points in the United States. The original definition utilized by CBP of vessel equipment is a 1939 definition providing that vessel equipment is portable articles necessary and appropriate for the navigation, operation or maintenance of the vessel and for the comfort and safety of the persons on board . . ..

Commencing in 1976, CBP issued a number of rulings focusing on whether items were necessary for the mission of the vessel as a gloss on the concept of being necessary and appropriate for the operation of the vessel. Subsequent rulings also focused on whether the item was used on or from the transporting vessel, whether the employment of items was foreseeable, incidental or de minimis (with unforeseeable, incidental or de minimis deployments weighing in favor of an item being equipment).

Under these formulations, CBP issued rulings to the effect that a variety of items utilized in oil and gas operations, such as risers and pipe connectors, were vessel equipment primarily under the interpretation that they were necessary for the mission of the vessel and therefore could be transported from a U.S. port to a U.S. point and installed by a foreign vessel.

These rulings became particularly controversial in 2009 when CBP first issued, and then withdrew, a ruling to the effect that a sub-sea assembly known as a Christmas tree was vessel equipment. CBP then proposed to revoke or modify a whole series of vessel equipment rulings, but the public opposition was substantial and CBP eventually withdrew that notice. Under that proposal, the term vessel equipment would have been very narrowing defined.

Ultimately, CBP issued a December 11, 2019 notice where CBP retained the 1939 definition as the basis for its interpretations and added that vessel equipment means items necessary and appropriate for the vessel to include, inter alia, those items that aid in the installation, inspection, repair, maintenance, surveying, positioning, modification, construction, decommissioning, drilling, completion, workover, abandonment or similar activities or operations of wells, seafloor or subsea infrastructure, flowlines, and surface production facilities.

CBP further emphasized that the fact that an item is returned to and departs with the vessel after an operation is completed, and is not left behind on the seabed, is a factor that weighs in favor of an item being classified as vessel equipment, but is not a determinative factor.

For some reason, CBP did not cite to its December 2019 guidance in its July 15, 2020 ruling. There it affirmed that tools taken on board a tower by the installation crew of the installation vessel that are returned to the vessel are vessel equipment, based on the 1939 definition, and can be transported from work site to work site by the foreign vessel. CBP also indicated that items needed for the comfort and safety of the crew such as containers, bags, personal protection equipment, food and drink and hand washing materials were also vessel equipment. CBP did not address items taken on board towers by the installation crew intended to be left behind such bolts and grout and other expendables.

With respect to the transportation of the installation crew from work site to work site, the question was apparently not addressed to CBP whether such crew are passengers or not within the meaning of the Passenger Vessel Services Act. A foreign vessel would only be prohibited from such transportation if such persons were considered passengers rather than crew.

See the original post here:

US Customs Issues Offshore Wind Farm Installation Guidance - Lexology

This is the second part in a two-blog series about offshore wind development in California. In Part 1, we explained why offshore wind might be the missing link in Californias zero-carbon electricity future. In this blog, we describe the barriers offshore wind development faces and trace a path to jump-start the industry in California.

The California Public Utilities Commission estimates that about 7 GW of offshore wind could be part of Californias ideal zero-carbon electricity mix by 2045. This is equal to around 9 % of the total electricity producing capacity in California. Any strategy to develop offshore wind in California needs to solve for offshore winds own three-body problem: avoiding local environmental impacts; figuring out how to meet stakeholder needs which includes state and federal regulatory requirements, the needs of the fishing industry, and the Department of Defense; and building enough offshore wind to make it profitable to developers while being a cost-effective investment for Californians.

To solve this problem in a timely manner, the state and stakeholders need to commit to getting the first 100 MW of offshore development commissioned within the next year. 100 MW is enough to meet the electric demand of approximately twenty five thousand average California homes and more than three times the amount of floating offshore wind that exists worldwide today.

This initial project is big enough to pique the industrys interest. It will also be a valuable source of data to (1) figure out the impacts these wind farms have on the environment, (2) balance stakeholder needs and figure out smooth regulatory processes to permit offshore wind build-outs, and (3) enable the industry to get going in California to bring down the cost of future offshore wind development.

The rest of the blog explains in detail the barriers offshore wind faces and why building the first 100 MW project is the way to go.

We must strive to make sure offshore wind development in California has minimal environmental impacts on its unique and diverse marine ecosystem. To accomplish this, we need to prioritize understanding how offshore wind farms could impact Californias marine ecosystem, and then figure out how to site and maintain these wind farms to minimize any ecological disruption.

Californias Pacific coastline is well known for its scenic beauty and biologically rich ecosystems. Iconic species such as the blue whale, the humpback whale, the fin whale, and the gray whale call its waters home. NRDCs report Harnessing the Wind: How to Advance Wind Power Offshore recommends measures to mitigate construction noise that can be harmful to these species. Solutions such as bubble curtains, ultraviolet lights and ultrasonic noise emitters can protect birds and bats from crashing into the turbines.

Untangling the regulatory complexities of offshore wind isnt an easy task. Offshore wind in California will most likely be built in federal waters beyond three nautical miles or around three and a half miles. This means that the electricity these turbines produce will travel via undersea transmission cables through federal and state waters to reach the electric grid. Federal and state agencies have separate regulatory processes that offshore wind companies must follow to get approval for construction and operation.

In addition to these permitting challenges, there are key stakeholder concerns that must be addressed if offshore wind development is to proceed smoothly.

First, on the Central Coast, offshore wind development needs to overcome the Department of Defenses concerns that offshore wind projects can interfere with long-range radars (air defense and homeland security radars), weather surveillance radars, and military operations. Second, the states commercial fisheries generate millions of dollars of revenue annually, and Californias fishermen are concerned that large scale offshore wind development could strip them of important fishing grounds and habitat. Finally, offshore wind farms would need to be sited so as not to conflict with intensively used shipping routes.

What scale and pace of offshore wind deployment are cost-effective for the states electricity sector, and to Californias economy at large? The California Public Utilities Commission estimates that approximately 7 GW of offshore wind may be needed to get to our 2045 zero-carbon goals. Of that 7 GW, 1.6 GW may be needed by 2030 if we set an aggressive 2030 carbon reduction milestone, and no out of state wind is available.

Creating an offshore wind industry in California will require building infrastructure, custom-built floating turbines, dedicated transmission lines, and port upgrades, to name a few. All this spending will have a positive impact on the state. The National Renewable Energy Laboratory (NREL), through an unrelated study, estimated that if California builds 10 GW of offshore wind, it could bring in approximately $20 billion to Californias economy and create a total of 14,890 construction jobs by 2050.

Although offshore wind development needs to get started, building small pilot projects isnt attractive for developers or cost-effective for electricity consumers. This is because of the large amount of capital necessary to get these turbines built and to connect them to the grid. But, going too big, too soon, would mean overlooking environmental concerns, the needs of the fishing industry, and the Department of Defense.

Until the first wind farm floats, we wont know the impact these turbines will have on local ecosystems, the fishing industry, or the Department of Defenses activities. Moreover, to provide clean electricity in a timely manner to help California get to its clean electricity goals, environmentally responsible offshore wind deployment needs to start soon. A right sized near-term commitment will open the gate to unleash Californias offshore wind potential. Committing to developing the first 100 MW in the three call areas (Humboldt, Morro Bay, and Diablo Canyon, which combined can easily handle that) within the next year is the way to go.

Industry, environmental organizations, and regulators should work together through the Bureau of Ocean Energy Management and the California Energy Commissions existing processes to determine how to get this first 100 MW built. Then industry and stakeholders can begin collecting the data that we need to figure out how to scale up offshore wind to seventy times that size - 7 GW.

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Bringing Offshore Wind into California's Future - Natural Resources Defense Council

In a new report, the UK Oil & Gas Authority (OGA) highlights that the countrys offshore sector improved its production efficiency for the seventh straight year.

In 2012, fixed-leg platforms and floating facilities in the UK continental shelf operated with a production efficiency rate of only 60%. In 2019, the figure jumped by 5% year-over-year to hit 80%a target the OGA hoped would be reached by 2022.

Based on best practice guidelines established in partnership with the SPE, the OGA calculates production efficiency by comparing actual wellhead production vs. the maximum economic production potentials. Production losses include reservoir degradation, plant shutdowns, and pipeline constraints. Under this equation, actual wellhead production improved by only 1% but factoring in reduction in economic production potential resulted in a 5% increase in efficiency.

The OGA said the recent gains are the result of a concerted effort by the industry to stem production losses and avoid plant shutdowns, which exceeded schedule by only 1% last year compared with a 15% overrun in 2018.

Improvements in operations resulted in higher efficiencies across every major offshore region except for West of Shetland, home to the UKs northernmost frontier exploration areas.

In the central North Sea region, production efficiency mirrored the aggregate with a wellhead output increase of 1% and an efficiency increase of 5%. The most efficient operations in the region were floating production hubs which boasted an 85% efficiency rate compared with 80% on large fixed-leg platforms.

Between operations in the Irish Sea and the southern region of the UKs North Sea, overall efficiency was 75% and 76%, respectively. Among the two regions, unmanned platforms improved efficiency by 14% but overall efficiency remained well below the regional average at 68%. Meanwhile, small manned platforms achieved 80% efficiency. The regions also combined for a planned shutdown overrun rate of 10%.

OGA estimated that the increasing production efficiency rates since 2014 have lowered the emission intensity of each produced barrel by 10%. To learn more, access the full report.

Source: UK Oil & Gas Authority

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UK Offshore Production Reaches 80% Efficiency Years Ahead of Expectations - Oil and Gas Facilities

Japanese investors have played a significant role in Europe's 22-GW offshore wind industry and now the experience accrued over the course of a decade in European projects is starting to pay off in their home market.

It has been nine years since Marubeni Corp., one of Japan's largest trading houses, became the first Japanese company to invest in offshore wind, acquiring a 49.9% stake in rsted A/S's Gunfleet Sands project in the U.K.

That deal paved the way for rivals like Sumitomo Corp. and Mitsubishi Corp. to make their own entries into offshore wind buying into projects led by experienced utilities like Engie SA and innogy SE, or independent developers like Parkwind NV and later opened the door for other kinds of Japanese companies, along with investors from elsewhere in Asia, to make their way to Europe.

At the time of Marubeni's entrance, Europe had about one-third of the offshore wind capacity it has now. And during the early 2010s, the cost of installing a turbine offshore was many times higher than it is today.

"In hindsight, it was a really astute decision for some of these Japanese trading houses to get involved [in offshore wind] so early on," said Ross Schloeffel, a partner at London-based law firm Linklaters, given the construction and technology risk involved in some of the early projects.

Fallout from Fukushima

Nearly a decade on from that first investment, construction of Japan's first large-scale offshore wind farms is underway in Akita prefecture, led, in an act of symmetry, by Marubeni. But the story could have been very different if not for the Fukushima nuclear disaster, which occurred just six months before Marubeni's Gunfleet Sands deal was announced.

The events of March 2011 had huge social and political ramifications for the country. "The Fukushima disaster was absolutely a wake-up call for the Japanese government ... It changed the political thinking about their future energy plan," said Feng Zhao, strategy director at the Global Wind Energy Council, or GWEC.

Most notably, it led to the decommissioning of most of the country's nuclear fleet and a search for alternative sources of power generation, including a rush for solar and a refocusing toward gas and coal. Offshore wind came into play more recently, with the government now aiming for 10 GW of capacity by 2030.

"If it wasn't for Fukushima, you may not have had offshore wind in Japan," said Marc Fevre, partner at law firm Baker McKenzie.

Gathering experience

Beginning with Marubeni, several of Japan's largest general trading houses sprawling conglomerates with interests in multiple business lines globally were among the earliest strategic investors in Europe's offshore wind market, which now attracts a broad range of capital, from oil majors to pension funds.

The first few transactions saw them buy stakes in operating projects. More recently, they have become comfortable with construction risk a microcosm of a wider market trend.

Against the backdrop of Fukushima, Japanese companies invested early in European offshore wind to eventually help build a market back home. "Generally speaking, the Japanese investors invest in these projects to learn about the contracting. That's the main reason: getting some operational experience," said Michael van der Heijden, managing director at Amsterdam Capital Partners, a financial advisory firm.

The Japanese corporation most active in offshore wind projects is Sumitomo, which in 2014 acquired a stake in the Belwind and Northwind wind farms in Belgium from developer Parkwind.

"[Offshore wind] was a new sector to many [investors at that time], and obviously for a big Japanese trading house to enter at an early stage and to have quite some ambition in the market ... We had not immediately predicted that. They were really very motivated," said Pieter Marinus, Parkwind's general counsel and investment relations director.

Sumitomo went on to invest in two other Parkwind projects this time taking on construction risk as well as projects in the U.K. and France with other partners. While its primary rationale for doing so may be to export the knowhow back to Japan, the company has a broader objective to invest in renewable energy globally, Marinus said: "[Sumitomo's intention was] not just to learn. They just saw it as an interesting investment opportunity."

"Trading houses invest because it's good business to be had," added Baker McKenzie's Fevre. "That's been their model in the power sector globally and they've become more sophisticated in their approach."

The trading houses, which did not respond to requests for interviews, have also invested across the energy value chain. Marubeni, for instance, is a shareholder in Seajacks International Ltd., which supplies offshore installation and maintenance vessels for wind farms and the oil and gas sector.

Meanwhile, Mitsubishi has an offshore wind turbine manufacturing joint venture, MHI Vestas Offshore Wind A/S, with Denmark's Vestas Wind Systems A/S, and also in March joined forces with Chubu Electric Power Co. Inc. to acquire Dutch energy company Eneco Groep NV with a view to expanding into offshore wind markets in the U.S. and Japan.

Crowding in capital

The presence of the trading houses in Europe's offshore wind sector has spurred multiple waves of capital from Japan. "The trading houses really paved the way for other Japanese capital to flow into Europe," said Marinus.

Marubeni has helped attract compatriots, selling its stake in Gunfleet Sands to the Development Bank of Japan Inc. and Japan's largest utility, JERA Co. Inc. a joint venture between Chubu Electric Power and Tokyo Electric Power Co. Holdings Inc., or TEPCO. Meanwhile, Germany's innogy offloaded an interest in its Triton Knoll project in the U.K. to utilities Electric Power Development Co. Ltd., also known as J-Power, and The Kansai Electric Power Company Inc.

Floating wind, which has recently emerged as the next frontier for offshore renewables, is also attracting the attention of Japanese investors: Tokyo Gas Co. Ltd. invested in floating developer Principle Power Inc., while JERA formed a joint venture with France's Ideol SA to develop 2 GW of floating projects globally. The companies will be hoping to repeat the pioneering role that Japanese companies have played in Europe's fixed-bottom offshore wind market, and also perhaps have one eye on their home market, whose deep waters make it better suited to floating turbines.

Japan has about 66 MW of offshore wind in operation today but its nearly 30,000 kilometers of coastline make it ripe for development, according to GWEC. While floating turbines might be the end game, fixed turbines will account for most of the government's 10-GW capacity target by 2030. "We think Japan will predominantly be a bottom-fixed market over the next decade," Imogen Brown, wind energy analyst at BloombergNEF, said on a July 14 webinar hosted by Reuters Events.

Investment in European offshore wind projects comes from other parts of Asia, too. Chinese state-owned companies like China Three Gorges Corp., State Development & Investment Corp. Ltd. and China Resources (Holdings) Co. Ltd. have invested in European projects in recent years. Unlike Japan, China already has an established offshore wind market, with nearly 7 GW installed, according to GWEC.

"As many Asian governments continue to promote international investment in key strategic sectors, debt and equity providers and equipment manufacturers from Asian countries will likely be increasingly active in the European renewables and power sectors in the months and years ahead," Paul Doris, a partner at multinational law firm Dentons, said in an email.

With Asia set to overtake Europe as the world's largest offshore wind market, with as much as 613 GW of capacity by 2050, according to projections by the International Renewable Energy Agency, the cooperation between the two continents is working in the opposite direction, too.

rsted and Germany's wpd AG are already active in the nascent Taiwanese market, and rsted has a joint venture with TEPCO to work on offshore wind in Japan, whose power sector, like Taiwan's, is seen as open to foreign investors.

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Japan's influence in European offshore wind starts to bear fruit back home - S&P Global

On July 21, 2020, New York Governor Andrew Cuomo announced the largest combined clean energy solicitation ever issued in the United States, seeking up to 4 GW of renewable capacity. This capacity is broken up into 2500 MW of offshore wind and 1500 MW of onshore large-scale renewable energy projects.

The United States remains one of the most attractive jurisdictions for renewable energy investments. It is the worlds biggest consumer of electricity and is now increasingly transitioning to renewable energy sources. It is a growing market with a stable regulatory environment and a transparent legal system and access to low cost of capital. The size and diversity of the United States also create numerous opportunities for various types of renewable energy projects.

The United States is ranked first in theEYs 2020 Renewable Energy Country Attractiveness Index. According to Bloomberg New Energy Finance, a total of$55.5 billionwas spent in the US renewables sector in 2019 alone (setting new investment records), an increase of 28%, second only to China and beating Europe.

This is New Yorks second offshore wind solicitation; last years solicitation resulted in awards for projects of nearly 1700 MW in total capacity. The solicitation this year requires offshore wind generators to partner with any of the 11 prequalified New York ports to stage, construct key components, manufacture and coordinate operations and maintenance activities. New York is seeking at least 1000 MW of offshore capacity and will be accepting bids of between 400 MW and 2500 MW. New York will be providing $400 million in private and public funding to upgrade the states port infrastructure.

The timeline for the latest round of solicitations includes an online conference for bidders on August 12, 2020, followed by a September 23, 2020, deadline for notices of intent to propose and an October 20, 2020, deadline for the submission of proposals.

See more about the Offshore Wind solicitationhere.

Governor Cuomo also announced that the New York State Energy Research and Development Authority (NYSERDA) and the Power Authority of the State of New York (NYPA) will be running a coordinated solicitation to procure over 1500 MW of renewable energy. Projects selected in these solicitations will be fast-tracked to construction by seeking permitting through the new Office of Renewable Energy Siting.

NYSERDA is seeking Tier 1 renewable energy projects with combined generation of 1.6 million MWh annually. Eligible projects must have entered operation after January 1, 2015, and must enter commercial operation by November 30, 2022 (or November 30, 2025 with extensions). NYSERDA will also allow proposers to leverage renewable energy credits (REC) via the Index REC contract structure for the first time.

NYSERDA will open the Step One Eligibility Application on August 5, 2020.

See more about the NYSERDA solicitationhere.

NYPA is seeking solar photovoltaic and wind projects (with an option to combine with energy storage) with combined generation of 2 million MWh annually. Eligible projects will be required to interconnect into New York state and have generation capacities of between 20 and 25 MW or 100 MW or larger. NYPA will be purchasing energy, capacity and RECs from the selected projects, which are expected to come online between 2021 and 2024. Winning bidders are expected to be notified in late 2020.

See more about the NYPA solicitationhere.

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New York Offshore Wind and Onshore Renewable Energy - The National Law Review

The barge CC Atlantique with 2 x 4,000 metric ton cable moored in Rotterdam.

(Courtesy Blue Offshore)

Offshore staff

THE HAGUE, the Netherlands Van Oord has contracted Blue Offshore to supply a full cable transport spread for both the Hollandse Kust (zuid) Alpha and Beta campaigns.

On Sunday July 19, the tug Kamarina and barge CC Atlantique carrying more than 8,000 metric tons of high voltage cable arrived in Rotterdam, the Netherlands. The cables will form the connection of TenneTs Hollandse Kust (zuid) Alpha platform to the onshore grid.

For this transport Blue Offshore mobilized what is said to be the worlds first certified double basket carrousel barge, with each carrousel carrying about 4,000 metric tons of cable. The transport took place from Hellenic Cables in Greece to the port of Rotterdam.

Van Oord charted the 122-m (400-ft) long CC Atlantique. Besides two large carousels and the dedicated control systems, Blue Offshore provided all deck engineering, technical crew and complete mobilization service.

The cables will soon be loaded onto Van Oords cable lay vessel Nexus for installation offshore in the Dutch North Sea. A spare cable will be delivered to TenneT in Eemshaven.

The Hollandse Kust (zuid) Alpha grid connection is expected to be ready in 2021. Beta is scheduled for completion in 2022. The HKZ wind parks will supply 1,500 MW of renewable energy, sufficient to power 3 million households.

07/28/2020

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Blue Offshore transports Hollandse Kust (zuid) offshore the Netherlands wind farm cables - Offshore Oil and Gas Magazine

Save to read list Published by Lydia Woellwarth, Deputy Editor Energy Global, Thursday, 30 July 2020 11:20

Jan De Nul Group has started transportation of the pin piles for the 376 MW Formosa 2 Offshore Wind Farm. The first batch of 26 pin piles was loaded on the transportation vessel BBC Onyx at EEW SPCs facilities in South Korea and offloaded in the Formosa 2 marshalling port of Taichung in Taiwan.

Jan De Nul Group subcontracted EEW SPC for the supply of all 194 pin piles needed for the Formosa 2 Project. EEW SPC started fabrication in January at three different yards in South Korea and Malaysia. This first pile delivery, one of eight batches in total assigned to the German BBC Chartering, is a significant milestone given the COVID-19 outbreak and its severe impact worldwide. All the pin piles will be stored in Taichung Port until foundation installation commences later this year.

Local supply chain

With Taichung Port being the logistics and operations hub for the Formosa 2 offshore wind farm project, Jan De Nul Group continues its partnership with Taiwan International Ports Co. Ltd (TIPC) following the successful co-operation on the Formosa 1 Phase 2 project. For the port operations, Jan De Nul Group collaborates with Belgium-headquartered Sarens and a team of Taiwanese suppliers including its long-standing partner Hung Hua Corporation, Ta Jia International Co. Ltd, Jin An Logistics International Co. Ltd and the Glory Shipping Agency Corporation.

Formosa 2 offshore wind farm

Developed by Macquaries Green Investment Group, JERA and Swancor Renewable Energy Company Ltd, and located between four and ten nautical miles off Miaoli County, the 376 MW Formosa 2 offshore wind farm will have 47 Siemens 8 MW turbines on jacket foundations in up to 55 m water depth.

Read the article online at: https://www.energyglobal.com/wind/30072020/first-pin-piles-arrive-in-taiwan-for-formosa-2-offshore-wind-farm/

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Avangrid Renewables has sold 85% ownership of the Tatanka Ridge Wind Farm to WEC Energy Group for approximately US$235 million.

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First pin piles arrive in Taiwan for Formosa 2 offshore wind farm - Energy Global

German energy company EnBWs Renewable Energies segment more than doubled its operating result in the first six months of 2020, mainly due to the Hohe See and Albatros offshore wind farms coming into operation.

The companys renewables segment reported an operating result (adjusted EBITDA) of EUR 426 million, a 108 percent increase compared to EUR 204.9 million adjusted EBITDA reported for the first six months of 2019.

The French wind and solar power company Valeco and better wind conditions at offshore and onshore wind farms also contributed to the positive earnings performance.

With earnings guidance held stable, earnings between EUR 825 million and EUR 925 million are expected for the Renewable Energies segment, EnBW said.

Overall, EnBW reported a 2.9 percent dip in revenue which stood at EUR 9.73 billion in the first six months of 2020. The adjusted EBITDA was EUR 1.59 billion in the first half of 2020, an increase of 24.3 percent on the same period a year earlier.

This increase was also attributed to the positive performance of the Renewable Energies segment.

Net profit attributable to the shareholders of EnBW AG went down from EUR 286.2 million in the previous years period to EUR 184.2 million in the period under review, primarily due to the lower financial results, the company said.

Our EnBW Hohe See and Albatros offshore wind farms have doubled the earnings contribution from renewable energy sources, EnBWs CFO Thomas Kusterer said.

The operating businesses show positive performance across the board and that at a time when the outbreak of the corona pandemic confronted us with major challenges, to which we as a company responded with targeted action at a very early stage. This shows the stability of our business portfolio after years of systematic transformation. However, corona will still not leave us completely unaffected.

With a combined capacity of 609 MW, the Hohe See and the nearby Albatros became fully operational in November 2019 and January 2020, respectively.

Located some 95 kilometres north of the Borkum island in the German North Sea, the two wind farms comprise 87 Siemens Gamesa 7 MW wind turbines.

EnBW also operates the 336 MW EnBW Baltic 1 and Baltic 2 offshore wind farms.

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Hohe See and Albatros Come Through for EnBW - Offshore WIND

International energy consultancy EPI has signed an memorandum of understanding with Offshore Powerto collaborate and combine resources in business development, marketing and delivering their services to the US offshore wind market.

Under the terms of the arrangement, EPI is establishingservice linesto provide geophysical, geotechnical, environmental and UXO services and advice to its clients, in conjunction with Offshore Powerwho are an established operative in the US offshore renewable energy market.

Together they expect todevelop relationships and opportunities in the offshore USA wind energy market.

EPI chief executive Andy Smart said: At a time when the US offshore wind market has such exciting potential, EPI are very pleased to have the opportunity to be able to demonstrate its skills and expertise while bring value to its clients via this strategic partnership with Offshore Power..

Offshore Power LLC (OP), was founded in June 2018 to target the North American subsea power cable and offshore renewable industry by providing expert qualified local content while leveraging the experience and expertise from Europe and elsewhere abroad.

Offshore Power has created a strategic consortium of diverse companies which EPIare now members, who together provide a wide range of vital capabilities for the emerging US offshore wind markets.

The third member is Installit AS, a subsea, cables, engineering and operations business.

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Energy consultancy partners on US offshore wind - reNEWS

Billionaire Gautam Adani-controlled Adani Ports and Special Economic Zone (SEZ) Ltd on Wednesday launched an offshore bond offering, raising as much as $750 million.

This is the third and the largest offshore bond deal launched by an Indian company since the pandemic disrupted global markets in March. State-owned REC Ltd and agrochemicals major UPL Ltd raised $500 million each in May and June, respectively.

The Adani Ports bond sale comes after SoftBank-backed Indian renewable company SB Energy pulled back its $600 million bond offering in July.

According to the terms of the deal, seen by Mint, Adani Ports is raising the capital through seven-year bonds, maturing in 2027, at a rate of 4.2%. Investment banks Barclays, Bank of America and Citigroup, among others, are advising Adani Ports on the bond sale. The capital raised will be used to repay loans of Adani Ports and its subsidiaries, which could include the debt of Krishnapatnam Port Co. Ltd, which Adani agreed to acquire in January. The deal is yet to be closed.

Earlier in July, Adani Ports board had approved offshore bond capital raise of up to $1.25 billion. A spokesperson for Adani group could not be immediately reached for comment. According to industry experts, offshore bond issuances from Indian corporates continue to be muted, especially for below-investment-grade issuers or so-called high-yield issuers.

I think that while the hedging cost for issuers has gone down substantially due to Mifor collapse, the market isnt there yet in terms of its evolution for non-IG (investment grade) issuers from India," said Shantanu Sahai, managing director and head of debt at Nomura India.

The markets had started to open up secularly since early June which had led to the hope that HY (high yield) issuers would be able to access it in July or August, but the opening has stalled while the market moves sideways in the past two-three weeks. The only HY issuance that has been seen has been from China," said Sahai.

He added that the second coronavirus wave across Asia as well as concerns over ratcheting US-China rivalry and the economic recovery have been the primary reasons for investors becoming more cautious around credit. Last December, Mint had reported that after tapping the dollar bond market twice in 2019, Adani Ports was preparing for a fresh issuance of dollar bonds in 2020.

In June 2019, Adani Ports had raised $750 million through a bond sale, and followed it up with a $650-million buyback offer for bonds maturing in 2020 in the next month

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Adani Ports SEZ raises $750 million through an offshore bond issue - Livemint

Abu Dhabi has approved the transfer of rights, from China National Petroleum Corp. (CNPC) to Cnooc Ltd, in the Lower Zakum and Umm Shaif and Nasr offshore concessions.

The deal will give Cnooc a 4% stake in Lower Zakum and 4% in Umm Shaif and Nasr.

The Supreme Petroleum Council (SPC) has approved the transfer, Adnoc said. Cnooc Hong Kong Holding will have a 40% stake in CNPCs PetroChina Investment Overseas (Middle East) subsidiary.

PetroChina will keep its 6% stake in the areas.

Adnoc said the move reinforced the strong and strategic bilateral ties between the United Arab Emirates and China.

The transfer also illustrates Adnocs strengthened access to international markets and partners and our commitment to generating sustainable returns for the UAE, said Adnocs group CEO and the UAE Minister of Industry and Advanced Technology Sultan Ahmed Al Jaber.

The entry of Cnooc to the concessions will bring world-class expertise and technology to help us continue to maximise value from the concessions as we create a more profitable upstream business and deliver our 2030 strategy.

We are very pleased to participate in the Lower Zakum and Umm Shaif and Nasr concessions. This further strengthens the strategic relationship with ADNOC and PetroChina. Cnooc will leverage our extensive expertise in the offshore sector and be dedicated to value creation in these concessions for our mutual benefit, said Cnoocs chairman Wang Dongjin.

Wang has spent most of his career at CNPC, reaching the position of president at PetroChina in 2013. He joined Cnooc in 2018.

Speaking to Energy Voice, Ian Simm, principal advisor at consultancy IGM Energy, said Cnoocs entry exemplifies the increasing involvement of Chinese state firms in Abu Dhabis upstream sector since CNPC was awarded a stake in the Adnoc Onshore concession in early 2017.

Simm noted the broader trend of Asian companies picking up stakes in Emirati oil and gas projects. This follows the expiry of the old ADCO and ADMA-OPCO concessions.

Firms from China, India, Japan, Thailand and South Korea have all picked up shares, in most cases, reducing the participation of Western IOCs.

With the majority of demand growth forecast to come from customers in Asia, this should come as little surprise, as the new agreements lay the foundations for deeper co-operation throughout the hydrocarbon value chain while fulfilling the UAEs key objective of firming up future market share.

Adnoc and Cnooc signed a framework agreement in July 2019.

Adnoc has a 60% stake in both licences. An Indian group led by ONGC Videsh has a 10% stake in Lower Zakum. Inpex Corp. has 10%, Eni 5% and Total 5%. In the Umm Shaif and Nasr concession, Eni has 10% and Total 20%.

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UAE approves Cnooc's offshore entry - News for the Oil and Gas Sector - Energy Voice