Forbes | Can You Opt Out Of Big IRS Offshore Penalties? Forbes Undisclosed foreign accounts or income can trigger significant civil penalties. They can even carry potential criminal penalties. Since 2009, many U.S. persons with foreign accounts and income have come within the IRS's enormous offshore enforcement ... |
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This might be the last chance to sell or short GulfMark Offshore (NYSE:GLF).
GulfMark's Highland Knight. Source: Adrian SPye, Creative Commons.
Cash Running Low
The company's last financial statements are from Q3 2016. GLF shareholder equity fell from about $1 billion in 2014 to $518M last quarter, a decrease of almost 50% since the beginning of the market downturn. The company operates 71 vessels that provide support to offshore operations of the oil and gas industry, and fixed assets' carrying value has been impaired in the last months. The cash position is $10 million, and working capital is $23 million. But cash flow last quarter was -$12 million.
The cash from financing is mostly from increasing debt. At this burn rate the company should have already run out of cash by Q4 2016, and all working capital will be gone in by Q2 2017. Also, the company disclosed in their last 10-Q a cash commitment of $24 million:
We have a vessel under construction in Norway that was scheduled to be completed and delivered during the first quarter of 2016; however, in the fourth quarter of 2015, we amended our contract with the shipbuilder to delay delivery of the vessel until January 2017. Concurrently, in order to delay the payment of a substantial portion of the construction costs, we agreed to pay monthly installments through May 2016 totaling 92.2 million NOK (or approximately $11.0 million) and to pay a final installment on delivery in January 2017 of 195.0 million NOK (or approximately $24.4 million at September 30, 2016)
The company's access to the revolvers is subject to the valuation of the collateral (vessels) that could be further impaired in quarters to come, and many other inconvenient covenants that:
This latter point might ultimately prove to be a killer because the company is operating at a negative EBIT.
What's Next?
According to Stein's Law: "If something cannot go on forever, then eventually it must stop." Sooner rather than later, GLF will be unable to pay the interest on its debt (carried at about $473 million). GLF debt has been trading at deep discounts, between $30 and $65. The current prices around $60 represent a 100% rally from historic lows.
As previously mentioned on Seeking Alpha, a group of hedge funds has acquired a significant portion of the debt. Based on the table above, I believe their cost basis for the debt could be between $140 and $310 million. In other words, after a hypothetical bankruptcy, they will have acquired the company and its 71 offshore vessels at about $2 to $4.5 million each.
Market price of GLF debt. Source: Borse Berlin.
Worse Than Insider Selling
On March 7, the company disclosed the resignation of William Martin as a director. Martin is the CIO of Raging Capital Management, an investment fund that as of Dec. 31, 2016, was GulfMark's largest shareholder. This development might reflect differing interests between Raging Capital as a shareholder and as a bond holder.
Competitive Position
One of the main markets for GulfMark is the North Sea. In this region, the industry has begun to see consolidation through a three-way merger between Solstad Offshore (the aqcuirer), Farstad Offshore, and Deep Sea Supply. This deal is illustrative of what can happen to a distressed OSV (offshore support vessel) operator. After heavy losses, Farstad had an unsustainable capital structure:
Source: Created by author with data taken from Farstad's financial statements.
The company reached a restructuring deal with their debt holders that includes:
After the deal, old shareholders would keep 0.8% of the company:
Source: Created by author with data taken from Farstad's restructuring press release.
Immediately after this restructuring, Farstad and Solstad will merge through a stock-for-stock transaction. The ratio will be 0.35 shares of Solstad for every 12.5 shares of Farstad. Immediately afterward, Deep Sea Supply will merge into the new "Solstad Farstad." This new company will be a major global player in the industry, with a fleet numbering 155 vessels. The share of vessels provided by each predecessor is as follows:
Source: Created by author with data take from the companies' websites.
There are many differences among vessels in design, deadweight tons, etc., but this provides some insight about the merger. The actual ownership of the resulting entity will be split in such a manner that Farstad post-restructuring shareholders will own 59% of the company.
Solstad Farstad ownership will be as follows:
Source: Created by author with data from Farstad's restructuring press release.
There is, certainly, some important dilution for continuing Solstad shareholders: Now, they collectively own just 31% of the resulting company. But this could prove highly beneficial for them since they have received an almost debt-free Farstad, and the total debt/equity ratio is going down.
Contrast and Compare
One of the approaches I learned from Benjamin Graham is to compare the financial information of several companies to try and find which one has a better relative valuation. For example, I've taken the main, public American OSV companies:
Note: Income figures are in thousands. Source: Created by author with data taken from the companies' financial statements (GLF Q3 2016, TDW and HOS Q4 2016).
Only Hornbeck Offshore Services (NYSE:HOS) has positive cash flow, and their CEO announced plans to position the company as an acquirer in the industry.
Highway to Liquidation
Debtholders in the OSV industry face three scenarios:
1. The company is strong and there's little fear of a default under any circumstances.
2. The company is near insolvency, so it can be readily taken over and liquidated, merged, etc.
3. The company is in trouble but insolvency could happen a few years from now. By then, demand for secondhand vessels is going to be close to zero. This situation offers the least chance of recovering the principal.
It is in the best interests of debtholders to sell the underlying assets as fast as possible. Time works against them: As months go by, more cash is burnt by the companies and other foreclosures satisfy the secondhand vessel demand. I believe that intelligent debtholders will try to accelerate the realization of the company's assets, as long as they keep some resale value. The urgency will decline as the fleet approaches scrap value.
Catalyst
Tidewater (NYSE:TDW), the industry leader, is expected to announce either a restructuring or a bankruptcy on Monday, March 13. This could have contagious effects on the rest of the industry. Currently, the company does not comply with the debt covenants, and debtholders have been granting temporary waivers in order to avoid a default situation. Management has already warned that "it is likely that the shareholders' ownership interests will, at a minimum, be significantly diluted." It isn't pleasant for shareholders to be at the mercy of vulture funds.
The Effects of Consolidation
The OSV market is grossly oversupplied, and it is almost impossible to sell a fleet one vessel at a time. In many countries, cabotage laws restrict the operation of foreign-owned or foreign-flagged vessels, notably in the American Gulf of Mexico. Finding buyers will be harder as time goes by. Therefore, debtholders who want to maximize the probability of recovering their principal need to dispose of their fleets in the most value-adding manner. In the North Sea, Farstad's debtholders essentially wiped out the equity and traded the company as a whole. In return, they get shares of a promising industry leader that they can sell immediately in the stock market.
Now, consolidation is very bad news for the acquired companies (Farstad shareholders essentially got wiped out). There are many other Farstads out there and their shareholders face permanent capital losses. There is still a lot of pain coming for the equity in this industry.
Key Takeaways
Disclosure: I am/we are long HOS.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.
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GulfMark Offshore: Insolvency Ahead? - GulfMark Offshore, Inc ... - Seeking Alpha
It might not look like it based on Transocean's (NYSE:RIG) most recent earnings reports, but the company is making some very large strides to improve its position in the rig market. While once seen as a company with an extremely old, ineffective fleet, Transocean now looks younger, leaner, and ready to position itself for the upturn in the offshore market.
In fact, Transocean is so confident in its current position that it thinks it can do something that has been almost completely unheard of in recent years: According to executives in its fourth-quarter earnings call, it's ready to make an acquisition. Here are some notable quotes from the call that illustrate what management is thinking.
Image source: Getty Images.
There hasn't been a lot of new work for rigs out there. So even the shortest, cheapest contract can be helpful in putting some cash in the coffers. According to Transocean CEO Jeremy Thigpen, the company has actually been doing a rather remarkable job of capturing what little work that is available:
I'd also like to thank our marketing contracts team, which in 2016 despite intense competition, won roughly one-third of the contracted global floater fixtures. The combination of our long-standing and deep customer relationships, our global footprint, our excellent operational performance and our internal confidence to offer innovative commercial models helped us to capture market share in this challenging market without bidding below cash breakeven dayrates. Of note, we were also able to secure contracts for two cold-stacked rigs when our competitors had hot rigs that were available.
It may not be showing up much in the bottom line of Transocean's results, but keeping rigs working at even the most modest profits will go a long way for any rig company, especially since we have yet to hit the bottom of the market.
As the offshore rig industry goes through this deep downturn, one of the silver linings is that it is forcing companies to think of better ways to operate. One thing that Transocean is looking to do is coordinate more with its suppliers and equipment manufacturers to lower operational downtime and maintenance costs. According to Thigpen, the company is trying a novel approach:
[W]e are more closely collaborating with our supply partners, and leveraging our respective strength to further enhance our riser inspection maintenance program and proven optimized [blowout preventer] performance, further improve reliability and reduce the total cost of ownership over the lives of the assets. We will accomplish these joint objectives by migrating our service model to reflect actual use in lieu of a more traditional calendar-based approach to service and maintenance. This reliability-centered approach has been approved by [Det Norske Veritas], and being embraced by the respective [original equipment manufacturers]. Ultimately, through closer collaboration, coordination and the aligning of incentives, we are confident that we can further improve rig uptime while reducing our operating costs.
Transocean isn't the only company taking this kind of approach to equipment performance. In 2016, Diamond Offshore (NYSE:DO) signed an agreement with General Electric (NYSE:GE) where it sold its blowout preventers back to GE and, in exchange, will lease them from GE. The idea here is that the OEM will have a better understanding of the equipment itself and will be more in tune with the maintenance needs. It also puts skin in the game for the OEM, as it is only paid for when the equipment is in use.
This seems to be a trend taking hold across the industry, so don't be surprised if we see more offshore rig owners move toward these equipment leasing options in the future.
Probably the thing that investors care about more than anything else is when we can expect the market to turn for offshore operators. Based on Thigpen's statements, 2017 isn't going to be the year. Integrated oil and gas companies (thinkExxonMobiland Chevron) represent the bulk of offshore development money, and those players don't have much of their budget dedicated to offshore work and reserve replacement. But Thigpen's more optimistic about 2018:
As we looked toward 2018, we're increasingly encouraged. The [integrated oil companies], which represent the majority of the offshore and specifically, the Deepwater market, recognize that their future is ultimately dependent on reserve replacement and production growth, yet 2017 will represent the third consecutive year of reduced capital spending and underinvestment in core high-return assets. As such, we expect the natural course of accelerating depletion to narrow the gap between the supply and demand of oil, and place upward pressure on its price, ultimately encourage incremental activity. Additionally, by 2018, we as an industry, will have further streamlined our organization and our processes, realizing additional performance improvement in cost savings that will result in even lower breakeven for our customers.
Transocean has been the most aggressive company in terms of scrapping older rigs that probably won't have much use in the future. The demands from operators today mean only the highest-specification rigs get work. As much work Transocean has done in right-sizing its fleet, Thigpen admits there is still lots of progress left to be made by the industry as a whole:
Still, with approximately 315 floaters in the current market, which includes those under construction, we as an industry remain oversupplied, even when considering the more optimistic estimates of recovery. Although we cannot accurately predict what others will do as the market unfolds, we will continue to be very pragmatic in evaluating both our rigs rolling off contract and our assets that are currently stacked. As we identify rig that no longer fulfills our fleet strategy and/or does not best address what we believed to be our customers' specific demand, we will continue to quickly make the decision to recycle it.
Transocean's most recent rig report showed it had nine older rigs that are only deepwater and midwater capable.These are the most likely candidates to be recycled. Some are still under contract, though, so don't expect them to be sent to the scrap yard before their contracts are up.
This was probably the most interesting quote from the whole earnings call. Thanks to Transocean's efforts to right size the fleet, delay delivery of some rigs under construction, and maintain a strong balance sheet, Thigpen actually sees a ripe opportunity to make some acquisitions:
In addition to retiring less-marketable assets, there is a significant number of high specification rigs, either in the possession of the stressed market participants or shipyards that could enhance our overall fleet and competitive position. We will continue to evaluate these assets, and remain ready to act under the right circumstances.
Thigpen went on to say that there two ways Transocean can deal with this. Either it can use cash to take over a shipyard delivery that was supposed to go to another player, or it could use its equity to absorb a competitor. Using equity today isn't ideal -- shares are trading for the absurdly cheap valuation of 0.31 times tangible book value -- but even that low share price is better than some of its peers.
RIG Price to Tangible Book Value data by YCharts.
If the company is going to make those kinds of deals, though, CFO Mark Mey thinks the company will need to act fast to get the best deal possible.
[Y]ou cannot wait too long because the opportunity may not be there for you. So you have to make a pre-emptive strike. I think Transocean, given our marketing presence and market intelligence, we probably have the best information out there, and probably get a look before most people do. So I think when we do decide to go out and strike, you can read that as a sign that we think the market is certainly troughed and improving from there.
Transocean has pretty much been the only company as of late to discuss the possibility of making an acquisition right now, which shows what kind of strength it has in the market in general. If this isn't a sign that the company is one of the best-positioned to bounce back in the offshore drilling industry, I'm not sure what is.
Tyler Crowe owns shares of General Electric and Seadrill. The Motley Fool owns shares of and recommends Atwood Oceanics. The Motley Fool owns shares of General Electric. The Motley Fool has a disclosure policy.
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Is Transocean About to Make a Big Splash in the Offshore Rig Industry? - Motley Fool
Native Hawaiians say Hawaiis tallest mountain is a sacred realm of creation.
Scientists believe its the best spot in the world for exploring the very origins of our galaxy.
For more than a decade, theyve been arguing over what happens on the summit of Mauna Kea. And, as it turns out, thats a good place to view the current international debate over indigenous rights, the importance of science in society and Americas legacy of colonialism.
In its second season, Offshore our podcast in partnershipwith PRX explores the clash between science and culture using the ongoing debate over whether a new telescope should be allowed on Mauna Kea on the Big Island.
The Thirty Meter Telescope is a $1.4 billion project proposed by a consortium of astronomers in collaboration with the state and the University of Hawaii. In late 2015, the Hawaii Supreme Court invalidated the state permit for the project and kicked it back to the Board of Land and Natural Resources for a new hearing, an event that recently wrapped up after months of testimony from dozens of people on both sidese.
Offshore editor Ben Adair records audio while Pua Case, a Native Hawaiian and opponent of the Thirty Meter Telescope, prays at an ahu across from Saddle Road at the base of Mauna Kea.
Jessica Terrell/Civil Beat
In this season, The Sacred Mountain, well take listeners to the summitas we explore why this mountain is so special to many people.
And then well take you to other places where the same debate overscience and culture, land use versus preservation, is playing out to North Dakota where the Standing Rock Sioux tribe is trying to protect itsland from an oil pipeline and to Arizona where the San Carlos Apaches have already been dealing with telescopes atop their mountain and now are trying to stop a mining company from operating on sacred lands.
Our question this season:Can these special places support a culture that goes back centuries and allow for science and technology to move forward?
Now this season of Offshore is available now on iTunes, Stitcher and anywhere you listen to podcasts. Offshore is produced by Jessica Terrell and April Estrellon, and edited by longtime radio producer Ben Adair.
And, on Saturday, the first season of Offshore A Killing in Waikiki will begin airing on Hawaii Public Radio. Offshore is scheduled to air at 4 p.m. Saturdays with a repeat of the episode the following Friday.
Season 1, which has been downloaded more than 700,000 times on podcast apps, examines the issue ofrace and power through two of Hawaiis most infamous court cases the Massie case in 1931 and the Deedy case in 2011. In both instances, a Native Hawaiian was killed by a white person in a position of power. We wondered what Hawaii, Americas most muticultural state, had learned that would be helpful to other areas of the country struggling with police shootings, for instance.
The answer might surprise you.
So download our new season of Offshore or listen to Season 1 on HPR starting this Saturday. You wont be disappointed.
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Our 'Offshore' Podcast Continues With Season 2 'The Sacred Mountain' - Honolulu Civil Beat
MUMBAI: The Authority of Advance Ruling (AAR) recently held that the entire revenue of a company registered in Singapore from supplying goods or rendering services in India is taxable in India.
The contract under consideration was awarded to L&T, which in turn awarded a sub contract to the Singapore Company. The Singapore company was required to design the curtain wall and faade, supply all materials, erect, install, inspect, test and commission the entire subcontract, a research report by Nangia and Co, a tax consultancy, said.
The Singapore company was of the view that the scope of work could be broadly divided into two aspectsoffshore supply of goods and installation and other work to be executed at the airport.
AAR held that the entire money received by the Singapore company was taxable in India since the contract was a composite one and there was no evident division in the contract for supply of services.
This ruling shall impact all foreign companies executing EPC (Engineering, Procurement, and Construction) contracts in India. The observation of AAR shall act as a guiding factor for those planning to enter into an EPC contract in India, although an AAR is only binding on the applicant and that too for the specific case, Rakesh Nangia, managing director, Nangia & Co said.
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A poster for Nazanin Sahamizadehs play Manus, which follows the lives of seven Iranian men who flee Iran only to wind up in the offshore detention centre run by Australia on Papua New Guineas Manus Island. Photograph: Nazanin Sahamizadeh
A Tehran playwright wants to bring her production, Manus, to Australia to help the outside world hear the voices of refugees held on the remote island.
Nazanin Sahamizadehs play follows the lives of seven Iranian men who flee by various means from Iran, seeking protection and freedom, only to wind up in the offshore detention centre run by Australia on Papua New Guineas Manus Island. The play centres around their time on the island and their struggle to cope with the violence, indignities and privation of their indefinite detention, and the uncertainty over their futures.
The seven-man production is in the middle of a two-month run at the Qashqai Hall of Tehrans City Theatre complex and Sahamizadeh hopes to soon take it further afield.
I wish, firstly, to perform it in Australia and then in other places in the world, to allow people to hear the voices of refugees, she told the Guardian. And I hope to create a movement towards closing Manus and Nauru camps as soon as possible and helping to free the refugees held there.
One of the lead characters is Kurdish Iranian refugee Behrouz Boochani, who has emerged as one of the most prominent advocates for the rights of refugees from inside the Manus detention centre. He and Nazanin were in almost daily contact as the play was being written and workshopped.
We worked together for more than a year, I sent her information about what is happening in Manus, like the court news, the Australian election, the changes inside the detention centre, even when people attempted suicide. I was reporting almost every day. My role in this project was to take Nazanin into this prison by describing life in Manus. It was important that Nazanin understood well how life is in Manus to tell the story in artistic language.
When the play was ready Nazanin invited me to inaugurate the play, Boochani told The Guardian. That was an interesting moment... I went to beach and made a short speech to the actors and audience and read a part of my own writing about Manus prison and the concept of being a prisoner.
Sahamizadeh said few people in Iran were aware of Australias offshore detention regime, despite Iranians being the largest cohort of detainees on both of Australias offshore islands.
There is no information about these camps at all in Iran and no news about the events and disasters that have been happened there, she said. Maybe just a few people have heard a brief headline of news.
I thought only Reza Barati had been killed by camp authorities but others have also died in the camps.
She said she had been stunned to learn of the detention centre on Manus ruled illegal and unconstitutional by the supreme court more than 10 months ago and that men had been held there for more than three years.
It is so tragic and shocking, she said. Because Australia is first-world country and a pretender [to uphold] human rights. But this behaviour with refugees and asylum seekers is completely against humanity.
The play deals with violence in the island camps and the deterioration of the protagonists mental and physical health. But the show does not aim to preach, Sahamizadeh insisted.
Ive mostly tried to give audiences awareness and make them think, instead of giving them just message.
She said people brought, and left with, different attitudes towards the issue of irregular migration and of those who seek asylum.
Some believe that refugees should not use illegal ways and government has right to deal with them but the majority are saying that these camps should be closed and government should not act like this.
She said the play, despite its controversial subject matter Irans theocratic regime is sensitive to the issue of its citizens fleeing to claim protection and refuses to accept failed asylum seekers forcibly returned to its territory has not attracted the attention, nor opprobrium, of authorities.
My play is a social show and not political and is for ordinary people and not authorities.
Hossein Babaahmadi, a former asylum seeker held on Manus who has since returned to Iran, spoke at a performance of the play, telling the audience he was still suffering from his time seeking asylum and in detention.
Only those who been through this can imagine this journey every single moment of it was like death.
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Australia's 'shocking' offshore immigration regime inspires play ... - The Guardian
Credit: Scripps Institution of Oceanography
Above: This map shows the Newport Inglewood Rose Canyon Fault, and underwater topography off the coast of Southern California, and the San Onofre Nuclear Generating Site, or SONGS, site, February 2017.
The offshore Newport-Inglewood and Rose Canyon faults are part of the same fault system and could produce earthquakes of a magnitude 7.3 or greater, according to a study released by the Scripps Institution of Oceanography Wednesday.
The faults, which run from San Diego to Los Angeles, had previously been considered separate.
RELATED: Seismic Research Explores San Onofres Earthquake, Tsunami Risks
Instead, they are actually one continuous system running from San Diego Bay to Seal Beach in Orange County, then on land through the Los Angeles basin, according to the study, published in the American Geophysical Union's Journal of Geophysical Research.
"This system is mostly offshore but never more than four miles from the San Diego, Orange County, and Los Angeles County coast," said lead author Valerie Sahakian, who performed the work during her doctorate at Scripps.
"Even if you have a high 5- or low 6-magnitude earthquake, it can still have a major impact on those regions which are some of the most densely populated in California," said Sahakian, now a postdoctoral fellow with the U.S. Geological Survey.
An offshore quake could register as much as 7.3, however, while one on land could hit 7.4, she said.
Researchers processed data from previous seismic surveys, and supplemented it with high-resolution underwater topography data gathered offshore by Scripps researchers between 2006 and 2009 along with seismic surveys conducted aboard Scripps research vessels in 2013.
The disparate data have different resolution scales and depth of penetration, which allowed the scientists to define the fault architecture at an unprecedented scale and create magnitude estimates with more certainty, according to Scripps.
The fault system most famously produced a 6.4-magnitude quake in Long Beach that killed 115 people in 1933.
Researchers have found evidence of earlier earthquakes of indeterminate size on onshore portions of the fault, finding that at the northern end of the fault system, there have been between three and five ruptures in the last 11,000 years. At the southern end, there is evidence of a quake that took place roughly 400 years ago and little significant activity for 5,000 years before that.
The Rose Canyon Fault runs alongside the northern San Diego County coast, comes inland around La Jolla, extends under downtown San Diego and winds up offshore again off Imperial Beach.
The authors conclude that further study is needed to improve the understanding of the threat posed to urban areas between Tijuana and Los Angeles.
Researchers at the Nevada Seismological Laboratory assisted with the study, which was funded by Southern California Edison.
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Study: Offshore Fault System Could Produce 7.3 Earthquake - KPBS
Image: SemiSubmersible Sevan Driller
Investment Thesis
The offshore drilling industry is suffering through the worst bear cycle in history. The oil crash that began late in 2014 had a terrible effect on the offshore drilling players such as Transocean (NYSE:RIG), Seadrill (NYSE:SDRL) or Noble Corporation (NYSE:NE) and another dozen or more companies struggling to avoid a financial meltdown, due to a basic lack of work, dismal day rates and rig oversupply, which is the unavoidable trichotomy of an offshore drilling bear market that continues unabated as I speak today.
Oil majors have reduced exploration CapEx to a bare minimum just barely higher in 2017 but still painfully insufficient.
I have followed this sector closely for years and tried to report the slow degradation of the business environment until now and I am still waiting to see some meaningful signs of a potential recovery. However, of late, we may have experienced an important change in the oil market that may lead to a bottom for offshore drilling and a possible recovery late in 2018 or early 2019?
OPEC and non-OPEC producers have agreed to cut production by a little less than 1.8 MBOPD, and quickly in December 2016 the price of oil began to trend up, at least until January 2017. Unfortunately, oil prices have stalled abruptly after reaching a range of $53-$56 per barrel, due to a booming US shale new activity -- especially in the Permian sector and doubt about the effectiveness of this supply reduction long-term.
Yet, some analysts are still forecasting slightly over $60 a barrel in 2018, which is enough to change the dynamic in the offshore exploration, notably in the deepwater segment which needs about $63 per barrel to be economical. Nonetheless, the situation is not an easy one and a potential to return to the $40's a barrel is also a present and real danger.
While waiting for concrete signs of tendering activity, it is important to know what exploration sectors will provide for the deepwater and ultra-deepwater business in the near future?
One important area that could help the offshore industry to survive this downturn is India offshore, which is the main topic of my article today. ONGC is active and is about to award three rigs on a three-year contract for its KG-DWN-98/2 block.
Description of the Krishna Godavari basin:
Total oil initially in place in the KG-DWN-98/2 block is estimated at 106 million cubic meters, production of only 26.71 million cubic meters is envisaged during 2019-2031.
Similarly, the gas initially in place is estimated at 69.57 billion cubic meters "BCM," of which only 51.33 BCM can be produced during 2018-34.
On December 23, 2016, we learned from Upstream that ONGC submitted offers for two units able to drill in 1500 meters of water, and one rig to drill in 600 meters.
[Translated from Norwegian] Seadrill is one of several bidders in a tender for three deepwater rigs from India's state oil company ONGC, reports Upstream, according to TDN Finans. The rigs will be used on flagship block KG-DWN-98/2 outside India's east coast. The first part of the tender process consists according to news agency two dynamically positioned drillship or semi rigs to drill in 1,500 meters. It is in this category Upstream sources mention Seadrill that one of the bidders, with the drillship "Sevan Driller". In addition participates among others Transocean , Vantage Drilling (OTCPK:VTGDF), Universal Energy Resources, Noble Drilling ((NYSE:NE)) and Ocean Rig (NASDAQ:ORIG).
On March 3, 2017, We learn again from Upstream that ONGC is now close to award the three 3-year contracts.
Three leading international drilling contractors are poised to win three-year, deep-water rig contracts from India's Oil & Natural Gas Corporation (ONGC) for its flagship Block KG-DWN-98/2 development off the country's east coast.
ONGC requires two 1500-metre, dynamically positioned drillships or semi-submersibles in one category and a single anchor-moored rig capable of drilling in 600 meters of water in the second.
London-headquartered giant Seadrill and Singapore's Vantage Drilling are expected to win three-year rig charter contracts in the 1500-metre category, while Brazil's Queiroz Galvao Oil & Gas (QGOG) is likely to win a three-year rig contract in the 600-metre category, sources said.
On February 27, 2017, commercial bids were opened by ONGC and the results are indicated in a small table below:
Seadrill with its Subsidiarie Sevan Drilling.
Sevan Drilling ASA (SEVDR.OL) (OTCPK:SDRNF), listed on the Oslo stock exchange: SDRL owns 50.11% (14.897 million shares) of the company.
Semisubmersible Sevan Driller (2009)
Actually Ready stacked in Singapore
Drillship Platinum Explorer
(2010)
Actually Ready stacked in India
Midwater Semisub Olinda Star
(1983)
Actually Ready stacked in Brazil
Transocean (RIG) is said to be the biggest loser in this fight for survival. The company offered no less than three drillships in the first category and one semisubmersible in the second category:
More than a dozen rigs were offered by nine contractors in the 1500-metre category.
Transocean is believed to have offered the highest bid with $166,750/d for the three drillships offered. For the second category, Transocean was the second bidder with $146,050/day (only three bidders in this category with the Semisubmersible Hakuryu-5 from Japan drilling but seems to have been disqualified?
Conclusion:
Let's all be honest here. Who in its right business mind and most importantly, why, a company is willing to commit to a 3-year drilling contract at a certain operating loss? The basic reasoning is evading my understanding. It doesn't make any sense. To paraphrase Galileo Galilei "and yet it moves", I would say, and yet offshore drillers do it.
First topic: What is the actual average day rates for Semisubmersibles and Drillships. According to IHS Markit.
Day rates are quite constant since October 2016 which is a sign that we are now at breakeven level.
As an example, let's calculate a breakeven cost using Transocean, which is the leader in this sector. I took this table from my article about Transocean 4Q'16 results. If you want to read it please click here.
Day rate for RIG fleet.
Dayrate
2016 Estimated
$K/d
4Q'16
$k/d
3Q'16
$k/d
2Q'16
$k/d
1Q'16
$k/d
4Q'15
$k/d
3Q'15
$K/d
2Q'15
$K/d
4Q'14
$k/d
Operating and Maintenance expenses were $314 million in 4Q'16 and total revenues were $974 million for the same period. Operating and maintenance expenses are 32.2% of the total revenues. I do not even talk about the debt here...
I we apply to the average day rate 4Q'16 for UDW we have a breakeven price per day of, $490,600/d x 32.2% = $158,000/d
Thus, I consider that $158k/d is a good estimate of what could be considered as "breakeven operating price" for a drillship in 2017, in general. This simple calculation justifies the day rate offered by Transocean for the three drillships at $167k/d including tax.
Transocean offers its service at breakeven operating costs for 3-years. Now, how can Vantage drilling Inc., or Sevan Drilling can justify such day rate?
I am sure, many will find a way to justify this move, but, the fact of the matter is that the companies working for ONGC will consistently lose money, and for the next three years, period.
The Industry is not thinking straight, in my judgment. The price war has gone too far, and should not be even tolerated.
Risks of labor abuse and all kinds of neglect of basic maintenance costs may result to catastrophic hiccup down the road. The Industry should meet and create a minimum guideline with a minimum viable day rate under which it is not allowed to go.
Important note: Do not forget to follow me on SDRL and other offshore drillers. Thank you.
Disclosure: I am/we are long RIG AND OTHERS.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.
Excerpt from:
LINTHICUM HEIGHTS, Md. - Offshore wind developers discussed plans to bring wind farming to Maryland Tuesday.
The Business Network for Offshore Wind (the Network) sponsored a breakfast to introduce Deepwater Wind and US Wind to industry leaders.
The developers submitted proposals to the Maryland Public Service Commission to build the first offshore wind farm off Maryland's coast.
Offshore wind power is inevitable. If we want to meet our clean energy goals, if we want to hedge our bets against fossil fuel volatility, if we also want to have the lights come on around the most congested areas where the load centers are (which are our coast) then we have to have offshore wind, said Liz Burdock, the executive director at Business Network for Offshore Wind.
In Maryland, offshore wind is much more powerful than onshore wind, and in 2013, the Maryland Offshore Wind Energy Act was passed creating subsidies for offshore wind facilities.
The application process opened last year and this year, the Maryland Public Service Commission will review and potentially approve one of the two projects.
We've proposed the Skipjack Wind Farm, which is a 120 megawatt project that's located 17 miles off the coast of Ocean City, Maryland. It'll consist of 15 wind turbines and it'll produce enough power for about 35,000 Maryland homes, said Clint Plummer, the vice-president of development for Deepwater Wind.
Deepwater Wind is the developer of Americas first offshore wind farm launched off Block Island in Rhode Island last December. Also competing for approval is U.S. Wind.
This is a huge economic development project, which will employ 5,000 or more people over the course of a generation as we not only build our project but build out the Port of Baltimore and Ocean City to support projects up and down the east coast, said Paul Rich, the project development director for U.S. Wind.
Part of the financing for the projects will come from Marylanders who pay for public utilities. The act made available up to $1.9 billion in financing, but it also put a cap on the monthly charge to consumers.
The Maryland law establishes a cap of no more than $1.50 per customer per month, said Plummer.
However, rate payers won't see an increase in their bills until the turbines start spinning and that's not anticipated til around 2022. Proponents of the projects also call it a nominal fee for something that will potentially change the way Americans generate power.
The opportunity to bring a Silicon Valley of offshore wind is very real and we need to seize this opportunity as Marylanders, Rich said.
Packed house for @DeepwaterWind @uswindinc breakfast meeting #moveosw pic.twitter.com/1Vqbv1n8fM
According to officials, The Northeast regional pipeline of offshore wind would create about 75,000 jobs.
The meeting was held at the Maritime Conference Center Maritime Institute.
There will be two public hearings on the proposed projects. The first will be on Saturday, March 25, beginning at noon in the cafeteria of Stephen Decatur Middle School located at 9815SeahawkRoad, Berlin, Maryland 21811. The second hearing will be held on Thursday, March 30, at 6 p.m. in the Joint Committee Hearing Room in the Legislative Services Building located at 90 State Circle, Annapolis, Maryland 21401.
The Public Service Commission is expected to make a decision on May 17, 2017.
The first offshore wind project was installed in Denmark in 1991.
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WMAR Staff contributed to this report.
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Offshore wind developers talk plans to bring first wind farm to Maryland's coast - ABC2 News
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Teekay Corporation (NYSE: TK), and Teekay Offshore Partners L.P. (NYSE: TOO) today announced the following changes to their respective Boards of Directors:
"I am very pleased that Bill Utt will be taking over the Chairmanship of both the Teekay and Teekay Offshore Boards of Directors," commented Mr. Day. "After 18 years chairing the Teekay Corporation Board, and 11 years chairing the Teekay Offshore Board, I believe now is the right time for me to pass on the Board leadership to Bill, who has extensive experience in the energy industry and an appreciation of Teekay's culture." Mr. Day continued, "Since joining the Teekay Board in 2015, Bill has brought his deep project management knowledge to bear on Board deliberations and I have no doubt he will lead with enthusiasm and skill in his new role. I remain committed to both Teekay and Teekay Offshore and am pleased to continue serving as a Board member of each entity and offer my support to Bill, Teekay CEO Kenneth Hvid, and the rest of the Teekay team."
Mr. Utt responded "I am honored to succeed Sean as Chair of both the Teekay Corporation Board and the Teekay Offshore Board. Sean has done an excellent job of leading the Board and I am delighted that he will continue to serve on the Board as I take on this important leadership role."
Mr. Axel Karlshoej, Chairman Emeritus of the Teekay Corporation Board and brother of the founder, Torben Karlshoej, said, "I want to thank Sean for his extraordinary leadership over the past 18 years. During his tenure, he has overseen enormous growth in the Teekay Group, including the establishment Teekay LNG Partners L.P., Teekay Offshore Partners L.P. and Teekay Tankers Ltd. In each case, he has been instrumental in establishing strong, cohesive boards with a focus on corporate governance best practices. I am pleased that Bill Utt has agreed to take on the Chairmanship of both the Teekay Corporation and Teekay Offshore Boards. Bill has been a strong contributor to the Teekay Board since he joined in December 2015 and I am confident that his expertise and strong leadership skills make him an excellent successor to Sean Day."
Mr. Utt has been a Teekay Board member since December 2015, and has over 30 years of engineering and energy industry experience. Until his retirement in 2014, he served as Chairman, President and Chief Executive Officer of KBR Inc., a global engineering, construction and services company. Before that, Mr. Utt served as the President and CEO of SUEZ Energy North America and President and CEO of Tractebel's North American energy businesses. Mr. Utt also currently serves as Chairman on the Board of Directors at Cobalt International Energy, a position he has held since June 2016, and is a member of the Board of Directors for Brand Energy & Infrastructure Services, a Clayton, Dubilier & Rice, LLC portfolio company.
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March 8th, 2017 Grant Rowles Asia, Offshore, Operations 0 comments
V.Ships Offshore, part of V.Group, has tied up a contract with Singapores Ultra Deep Solutions for the full technical and crew management of high spec dive support vessel Lichtenstein.
The vessel is due to join the Ultra Deep Solutions fleet this month, having been acquired recently from China Merchants Industry Holding after the original order for the vessel was cancelled by Thailands Mermaid Maritime.
Shel Hutton, chief executive officer Ultra Deep Solutions, commented: We thank V.Ships for signing the contract with Ultra Deep Solutions. With their vast experience in offshore subsea management, we look forward to this great opportunity to work closely with them on our fleet of vessels.
The vessel will be managed by the V.Ships Offshore office in Singapore and continues a good run for V.Ships in the large offshore vessel sector. They are good and are picking up all the big boats. They now have the Pride with Fortress, the Amazon with McDermott and now the Lichtenstein, an industry observer in Singapore told Splash.
Ultra Deep Solutionshas four vessels on order and Hutton recently told Splash the company islooking to sign another three to four contracts in the coming 12 months.
Grant Rowles
Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrades Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
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V.Ships Offshore adds another with Ultra Deep Solutions management deal - Splash 247
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Source: Offshore Energy Today - Gulf of Mexico
W&T Offshore, Inc. (NYSE:WTI)
W&T's growth in the deepwater Gulf of Mexico has been significant in recent years. Between 2009 and 2015, average deepwater production has grown nearly 700% and SEC proved reserves are up over 850%. Gross Acres have increased ~200% from 2009 to 2015. We define a deepwater property as one in over 500 feet of water.
From the company [website]
To access the WTI 4Q'16 conference call transcript, please [click here]
Q4 2016 Financial Snapshot (Nine Consecutive Quarters).
Total revenues
in $ million
Total production per day
In kBoe/d
Total production for the Q
in MMBoe
Average price oil eq.
$/Boe
Lease Operating Expenses ("LOE")
in $ million
Net income/loss
in $ million
45.93
G&A
in million
Operating loss/gain
in $ million
Cash and cash equivalent
in $ million
Total debt (long-term + current portion)
in $ million
Net Debt estimated
in $ million
EPS in $/s
(Excluding special item/with) in $/s
0.12
0.06
0.48
(0.24)
(1.58)
(0.47)
(2.49)
(0.95)
(0.68)
(0.44)
(6.29)
(0.82)
(3.43)
(0.54)
(3.36)
(0.96)
(0.44)
(0.54)
Shares outstanding
in million
Adjusted EBITDA (excluding special item)
in $ million
69.6
60%
52.48
49%
40.81
41%
16.55
21%
36.53
35%
59.20
79.67
53%
48.35
38%
Reserves:
The Company's year-end 2016 SEC proved reserves were 74.0 million Boe.
Liquidity:
At December 31, 2016, our total liquidity was $219.7 million consisting of cash balances of $70.2 million and $149.5 million of availability under our $150 million revolving bank credit facility.
Capital expenditures for 2017:
Are currently estimated at $125 million. Plug and abandonment activities for 2017 are currently estimated to total $78.3 million and are expected to be funded with cash on hand and cash flow from operating activities.
Commentary
W&T Offshore released its fourth quarter 2016 results on February 27, 2017. Revenues for Q4'16 were $115.21 million, up 7.5% quarter over quarter. The net Profit was $16.5 million or $0.12 per share.
Comparative data for the last nine Quarters (click graph to enlarge).
M. Tracy Krohn, CEO, said:
We are as enthusiastic as ever about the opportunities in the Gulf of Mexico and believe we are in a good position to take advantage of this prolific basin. We are entering 2017 with a lower cost structure and a capital program of profitable projects that should allow us to build cash. We expect to benefit from improved seismic technologies, lower operating costs and less competition in the Gulf. Assuming commodity prices continue to remain steady, our 2017 capital plan allocates approximately $125 million to projects that we believe provide a low-risk and high return in producing fields. These projects should yield moderate production growth in 2017 over 2016.
Three important topics:
1 - Production decline in the GOM well in the early years is much shallower than the unconventional shale plays. M. Krohn said in the conference call:
This shallow decline curve of many of our projects contributed to our ability to maintain steady production on a small capital program. It's one of the things we've always liked about the Gulf of Mexico and which obviously contributed to our value.
The Permian well has a depletion of nearly 70% the first year, while WTI well depletion is only 10% for the first year and 20% for the 5.5 years.
2 - According to SEC rules, the assumed oil price in this year's reserve report is set at $39.25 per barrel for the life of all reserves.
The company believes that the reserves are significantly under-booked on initial production due to the strict SEC guidelines, and therefore, WTI assumed asset value can be considerably understated and not indicative of our true underlying real asset value.
3 - The BOEM withdrew certain orders related to sole liability properties.
4 - Production in 2017 will be 4% above 2016 or approximately 16 MMBOE.
Conclusion:
W&T has improved significantly its balance sheet due to better oil prices. The recent positive momentum of the oil prices should help the stock in 2017 as well, and bring additional revenues that are indispensable for the survival of the business, as it is.
Oil prices are really the name of the game here, and it is still hard to see how they can really trade above $60 per barrel anytime soon with the US Shale booming again? Risk of a downside back to $45 per barrel cannot be brushed away.
Yet, one positive about WTI is that many of the company fields have reservoirs with multiple stacked pays, such as the Mahogany, UM Bank 9-10, Virgo and other stacked pay fields.
On January 6, 2017, I commented about the Ship Shoal 359 A-18 well has logged 149 feet of net oil pay in five zones and extended the size and depth of the Mahogany field.
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W&T Offshore - A Complete Review Of Q4 2016 Results - Seeking Alpha
SINGAPORE - Offshore and solar firm SBI Offshore said on Tuesday (March 7) that its founder and former chief executive officer Tan Woo Thian has withdrawn his appeal against a High Court decision to grant final judgment for the sum of S$624,631 plus interest and legal costs and disbursements in favour of the company.
Mr Tan was granted leave on March 6, 2017, to withdraw his appeal with costs fixed at S$1,500, said the Catalist-listed firm in a filing witht the Singapore Exchange.
The appeal was scheduled to be heard on March 6. In January this year, Mr Tan paid S$648,495.41 to SBI Offshore, comprising the judgment sum of S$624,631 plus interest and the company's costs. The payment was made without prejudice to the appeal.
On March 2, SBI Offshore's solicitors, Rajah & Tann, received a letter from Mr Tan's solicitors, Messrs Vijay & Co, stating that he would not proceed with the appeal and would seek the court's leave to withdraw it.
Mr Tan was among a group of substantial shareholders who tried last year to unseat SBI Offshore's current CEO John Chan.
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SBI Offshore says founder and ex-CEO drops appeal against court ... - The Straits Times
BBC News | Offshore capital 'urgently needed' warns Oil and Gas UK report BBC News The offshore sector may face a significant decline in production if fresh capital is not urgently secured, according to an industry report. The Oil and Gas UK Business Outlook warns of a major drop-off in production from 2020 without the investment. UK Offshore Regains Some Lost Ground |
Continued here:
Offshore capital 'urgently needed' warns Oil and Gas UK report - BBC News
Will a man living in Ireland but with assets in, and a pension from, the UK and who pays tax to HMRC be included in any offshore investigation by Irelands Revenue?
You have been writing recently about Revenues clampdown on offshore assets. I am a pensioner living in Ireland after a lifetime working in Britain, where I was born. My pension comes from the UK and I also have a property and bank accounts there. My children still live in the UK.
I am not an Irish citizen and I pay tax to HMRC. I am wondering if will be included in any investigation by Irelands Revenue, and, if so, why?
Mr NC, Dublin
Tax is one of those funny areas at least, its not funny per se but there are all sorts of fiddly rules and regulations regarding who is liable to what.
However, one of the primary considerations in determining liability to tax is the notion of tax residence. Related to this is the concept of domicile.
Tax residence is fairly straightforward. You are tax resident generally in the country in which you live. That generally means you are liable in that country for tax on your worldwide income from all sources.
Where a local jurisdiction also deducts tax on property or foreign earnings for instance there are a series of agreements between states to ensure that people are not taxed twice on the same income or gain, known commonly as double taxation agreements.
Where things get a little more complicated is when domicile comes into the picture. Domicile is not a black-and-white issue. In general, but not exclusively, a persons domicile will be determined by the country in which they are born or the domicile of their parents. For instance a child born to an Irish soldier serving abroad will be deemed to have Irish domicile, not that of the country in which they are actually born.
You can change domicile but not willy-nilly. For instance, if someone born in Ireland and of Irish domicile emigrates to the UK and makes their life there, they could reasonably change their domicile from Irish to British.
In your case, as someone born in the UK and having worked there and made your life there until you moved over here in retirement, your domicile would reasonable be assumed to be British. Thus your primary liability will be to Her Majestys Revenue Commissioners (HMRC) as you state.
It is worth noting that, while citizenship can point to domicile, it does not determine it. Its perfectly possible to be a British citizen with Irish domicile and vice versa.
The importance of this is that someone like you, who is tax resident in Ireland but not domiciled here, is liable to Irish Revenue only on money earned and assets owned in the State. So you are not liable to Revenue clawback on bank accounts, property or even pensions earned in the UK, unless you bring the money into Ireland.
However, any funds that are brought into Ireland will become liable for assessment by the Revenue in that tax year. This is known as the remittance basis of assessment.
Send your queries to Dominic Coyle, Q&A, The Irish Times, 24-28 Tara Street, Dublin 2, or by email to dcoyle@irishtimes.com. This column is a reader service and is not intended to replace professional advice.
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Foreign domicile changes tax rules on offshore assets - Irish Times
about 19 hours ago Updated: about 18 hours ago
Nabawi Mosque in Medina, Saudi Arabia: moving back to Ireland after 17 years in the country. Photograph: iStock
I am Irish citizen who has worked in Saudi Arabia for the last 17 years. I will return to live in Ireland on December 1st.
I have offshore bank accounts but will close these and send funds to Ireland before I leave Saudi. I also have two overseas properties (in Spain and Italy) which I rent out for maximum of three weeks a year.
Am I liable to the Irish Revenue for rental income while I was outside Ireland? Or will I only be liable for any rental income when I return to Ireland?
I have a bank account in Spain where rental funds are sent. It is my plan to re-enter the Irish workforce part-time in January 2018.
Ms CE, Saudi Arabia
Clearly, news that the Irish Revenue is clamping down on offshore assets held by Irish taxpayers is causing a bit of a stir. Hardly surprising, I guess, when as many as 500,000 letters are being sent to taxpayers on the subject.
The key thing, especially for people in your position, is that Revenues target is assets or income earned and held offshore by people who are tax resident in Ireland ie, they are liable to tax here.
As someone who has been out of the State for 17 years, you will not have been liable to Irish tax at all. Your liability would be to the local Saudi authorities.
Of course, up to now there has been no tax on personal income in the kingdom, although that is changing as the country comes to terms with declining revenue from oil. I gather a nominal annual charge is being introduced this year up to roughly 25 a month although this will scale up to 200 per person a month by 2020.
By European standards these rates may sound laughably low but it is a major step for the Saudis where up to a third of the workforce is expatriate and there is a battle to find a balance between the need to boost exchequer funds and the importance of remaining attractive for prospective expatriate employees.
Anyway, the point is that for the past 17 years, any accounts and/or property you own and any rental income from it has been a matter for the Saudis and of no relevance to the Irish Revenue.
So you have nothing to fear on your return home. It is only once you are back in Ireland that you will become liable to Irish Revenue.
The concern for Revenue, in relation to offshore bank accounts, is where the money in them came from and what income is delivers by way of interest. On property, again they want to be reassured that it was bought with money that was properly taxed and they also want to know about rental income.
In your case, the accounts are funded with money earned in your job in Saudi Arabia which is absolutely valid and not liable to Irish tax. If you keep these accounts open following your return to Ireland, you will need to declare any interest income in an annual tax return.
It is important to note that there is nothing preventing an Irish taxpayer having an offshore bank account as long as it contains money that has already been taxed and, if necessary, declared to Irish Revenue.
As youre closing the Saudi account, thats a moot point but it may be an issue for the account in Spain that receives the rental income on your holiday/investment properties or at least the interest those funds earn. But, importantly, there is no retrospective liability. You will only be liable to income earned after your return to Ireland.
The same is true of your properties in Spain and Italy you will liable to tax on any income earned on them (after allowing for expenses) only from the date you return to Ireland. Any income they yield up to December 1st is of no relevance to Irish Revenue.
Finally, if you receive any further income from Saudi Arabia following your return to Ireland such as a pension it would need to be declared.
Send your queries to Dominic Coyle, Q&A, The Irish Times, 24-28 Tara Street, Dublin 2, or by email to dcoyle@irishtimes.com. This column is a reader service and is not intended to replace professional advice.
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NEW YORK, March 6, 2017 /PRNewswire/ -- The Global Offshore Drilling Market is poised to grow at a CAGR of around 6.2% over the next decade to reach approximately $153 billion by 2025. Some of the prominent trends that the market is witnessing include increasing investments in emerging regions, burgeoning consumption of oil & gas across globe, recent technological developments of offshore drilling and growth opportunities/investment opportunities.
Read the full report: http://www.reportlinker.com/p04652958-summary/view-report.html
Based on application the market is categorized into deepwater drilling, shallow water drilling and ultra-deepwater drilling.
Depending on the service the market is segmented by offshore contract drilling, offshore directional drilling, Offshore Logging While Drilling (LWD), Offshore Measurement While Drilling (MWD) and subsea production & processing.
This industry report analyzes the market estimates and forecasts for all the given segments on global as well as regional levels presented in the research scope. The study provides historical market data for 2013, 2014 revenue estimations are presented for 2015 and forecasts from 2016 till 2025. The study focuses on market trends, leading players, supply chain trends, technological innovations, key developments, and future strategies. With comprehensive market assessment across the major geographies such as North America, Europe, Asia Pacific, Middle East, Latin America and Rest of the world the report is a valuable asset for the existing players, new entrants and the future investors.
The study presents detailed market analysis with inputs derived from industry professionals across the value chain. A special focus has been made on 23 countries such as U.S., Canada, Mexico, U.K., Germany, Spain, France, Italy, China, Brazil, Saudi Arabia, South Africa, etc. The market data is gathered from extensive primary interviews and secondary research. The market size is calculated based on the revenue generated through sales from all the given segments and sub segments in the research scope. The market sizing analysis includes both top-down and bottom-up approaches for data validation and accuracy measures.
This report provides data tables, includes charts and graphs for visual analysis.
Regional Analysis: North America - US - Canada - Mexico
Europe - France - Germany - Italy - Spain - UK - Rest of Europe
Asia Pacific - China - Japan - India - Australia - New Zealand - Rest of Asia
Middle East - Saudi Arabia - UAE - Rest of Middle East
Latin America - Argentina - Brazil - Rest of Latin America
Rest of the World - Africa - Caribbean
Report Highlights: - The report provides a detailed analysis on current and future market trends to identify the investment opportunities - Market forecasts till 2025, using estimated market values as the base numbers - Key market trends across the business segments, Regions and Countries - Key developments and strategies observed in the market - Market Dynamics such as Drivers, Restraints, Opportunities and other trends - In-depth company profiles of key players and upcoming prominent players - Growth prospects among the emerging nations through 2025 - Market opportunities and recommendations for new investments
Read the full report: http://www.reportlinker.com/p04652958-summary/view-report.html
About Reportlinker ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
__________________________ Contact Clare: clare@reportlinker.com US: (339)-368-6001 Intl: +1 339-368-6001
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/global-offshore-drilling-market-analysis--trends---industry-forecast-to-2025-300418793.html
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Over the weekend, the Islamic Republic ofIran test-fired two ballistic missiles into the Gulf of Oman, with one sinking a floating barge approximately 155 miles away, according toFox News.
The first missile was fired on Saturday, but missed the target. A day later, a secondattempt was made successfully.
The two short-range ballistic missiles originatedfrom Islamic Revolutionary Guard Corps bases in Bandar-e-Jask, Iran.
"It's a concern based on the range and that one of the missiles worked," said a defense official.
Two years ago, Iran held a similar exercisedestroying a large barge designed to look like an American aircraft carrier.
In February,Ali Akbar Velayati, advisor to Ayatollah Ali Khamenei, made it clear that Iran has no plans of slowing down its nuclear program. The aide to Iran's supreme leader ripped an "inexperienced" President Donald Trump and assured the world that his country would continue ballistic missile testing.
"This is not the first time that an inexperienced person has threatened Iran," Velayati said. "Iran is the strongest power in the region and has a lot of political, economic and military power ... America should be careful about making empty threats to Iran.
"Iran will continue to test its capabilities in ballistic missiles and Iran will not ask any country for permission in defending itself," he said.
See more here:
Iran Launches Two Ballistic Missiles, Sinking an Offshore Barge 150 ... - Townhall
March 6th, 2017 Jason Jiang Greater China, Shipyards 0 comments
Cosco Shipping Heavy Industry (CSHI), the newly restructured shipbuilding entity of China Cosco Shipping Corporation, plans to close down three offshore shipyards in an effort to cut overcapacity.
According to the plan, CSHI will close its shipyards in Nantong, Zhoushan and Dongguan by 2020 and the group will consolidate offshore equipment construction operations at its Dalian and Qidong yards.
Liang Yanfeng, general manager of CSHI, said the move will effectively optimise resources, cut overcapacity and prevent price competition between its subsidiaries.
CSHI was established in October 2016 after Cosco and China Shipping merged 13 affiliated yards together.
CSHI announced a plan last year to cut its total shipbuilding capacity from 12.05m dwt to 10.6m dwt by the end of 2017 and further reduce capacity to 9.6m dwt by the end of 2020.
Jason Jiang
Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jasons access to the biggest shippers with business in China has proved an invaluable source of exclusives.
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