Monthly Archives: February 2020

GROTON Years before the Connecticut Port Authority approved a $157 million deal to redevelop State Pier in New London as a staging area for offshore wind, and before a $22 billion submarine contract was awarded to Groton-based Electric Boat, a growing ecosystem of smaller companies have been setting up shop in the region, hoping to service the wind and maritime industries.

Were a bunch of guys who started a company based on maritime [technology and data]. Many of us are former submariners and we sought to do things with autonomous vehicles that we used to do with submarines with the idea that if we did it right we could save 99 percent of the cost of things that we used to do, said Mike Connor, chief executive officer of ThayerMahan, during a roughly ninety minute conversation at their offices in Groton on February 3.

The brainchild of two retired submariners one, Richard Hine, the chief operating-financial officer, with significant business experience outside of the Navy, and the other, Connor, a thirty-five year Navy veteran and former Commander of Submarine Forces ThayerMahan was started just over four years ago.

The two founders started the company in a spare bedroom in Mystic creating undersea solar-powered monitoring systems that could collect and transmit data.

Basically we tow sensors around the ocean. Some of them are electronic, some are acoustic. These [host platforms] are energy-harvesting vehicles. They get propulsion from wave action, said Connor. In my old world, the tow vehicle was a $3 billion submarine. [Our system] doesnt require any food. It doesnt require any repair parts. No one gets sick. No one has a family emergency and has to go back to port. It goes out there on the ocean for 90 days at a time.

The company expanded, first into a two-room space in Mystic and then, almost two and a half years ago, into its current 14,000-square-foot warehouse and lab near the airport in Groton. A further expansion is planned for this spring.

In the meantime, with the offshore wind industry dropping into the region, Connor and Hine recognized a new market for ThayerMahan technology.

On January 30, just a few days before our visit to ThayerMahan, the company signed a memorandum of understanding with rsted and Eversource to provide a wide variety of possible services everything from environmental monitoring and seabed surveys, to offshore operations and maintenance, to real estate and construction consulting.

The agreement represents a kind of starting line, a marker, for onshore small businesses that want to work with offshore wind, said Connor, in a press release.

This MOU is yet another commitment, in writing, that offshore wind will grow Connecticuts economy and that the joint venture is truly interested in working with our local developers and inventors, he said.

I retired from the Navy out of Norfolk in fall 2015. Rich was living in the Norfolk area. We decided [start a business] in the summer of 2015. I knew I was going to retire from the Navy and had to decide to do something or nothing and I decided to do something, said Connor. Rich had spent decades in real estate development and was looking for a change, so basically over a golf weekend, we decided to go into business together. Weve been friends for 30-plus years.

We served together on our first submarine the U.S.S. Pittsburgh in the 1980s, added Hine.

So, when I retired from the Navy, my wife said, youve been dragging me around the world for 35 years. I want to live in Mystic when we retire. So we did . But it turns out, as far as the state, as far as the details of going from that to setting up shop here, the state was very helpful with some incentives and loans. Rich is an expert in working with the state, said Connor.

The two worked with Connecticut Innovations, the states venture capital arm, as well as Connecticut Small Business Express and CTNext, which provided start-up and equipment loans and grants.

The states been a wonderful asset for us. We joke, everyone says Connecticuts a terrible place to do business, you should think about Alabama, Mississippi or South Carolina, but for us in terms of local infrastructure and organizations that are related to the sub-sea domain, and state support for what were doing, its been a fantastic place to locate, said Hine.

Connor said the talent base in southeastern Connecticut is deep due to the presence of Electric Boat and other maritime-related organizations.

[Electric Boat] brings in top flight engineers from all over the country and they have 22,000 employees and 6,000-7,000 engineers and, just out of a body of engineers that size and just sort of normal churn, theres a lot of people. And they just happen to understand maritime things, sonar things, communications because thats all part of what weve been doing, he said.

The robotics industry is kind of centered in southeastern New England if you take from Boston to Groton to Woods Hole and make a triangle, theres a lot of assets and organizations, the Coast Guard R&D center, UWDC [Undersea Warfighting Development Center], the sub base, Electric Boat, UConn, URI, Woods Hole. So its a great place to draw people from, Hine said.

Revolution Wind, the first announced project by rsted and Eversource a 304-megawatt wind farm planned halfway between Long Island and Marthas Vineyard is scheduled to come online in 2023.

Its just one of many planned and plausible projects and business opportunities related to energy, security, fisheries and the environment along the east coast from New England to South Carolina, which could be based out of Connecticut.

According to a 2019 report by the University of Delawares Special Initiative on Offshore Wind, over the next decade energy production alone off of the northeast of the United States could be worth $70 billion dollars (20 gigawatts) In the long-term for offshore wind energy, according to the analysis, considering shipping lanes, bird flyways, and other sensitive ocean areas, there are 330 gigawatts of developable resource more than enough to supply all the electricity needs of the East Coast.

Before Connor and Hine knew offshore wind would take a significant role in their future business, they marketed their systems to the U.S. Navy and the U.S. Department of Homeland Security. Offshore wind opened up new uses for ThayerMahan systems, including monitoring endangered sea mammals and ship activity during turbine construction and maintenance, which Connor said could have the side benefit of increased productivity.

We would basically alert them there are whales in the area, which changes the way they operate the ship, generally they have to slow to five knots, however if we can certify that there are no mammals in the area, everybody gets to operate at normal speed, which saves money, said Connor. In the case of the mammals, it should allow work year-round or at least year-round subject to mammals, and there are things too like weather what it does is it gives better information so they can make better decisions.

The passive acoustic sensors used by ThayerMahan can listen at long range and identify the direction of a sound, a big advantage over a conventional moored hydrophone, said Connor.

Say were five miles away and we know theyre on the seaward side of us, then that probably allows [the developer] to continue construction and we would just monitor for that situation to change, he said. [Because] were not moored means that we can do the monitoring without becoming an entanglement threat, which is an issue with lobster pots and other things where you have mooring.

Each device weighs about 600 pounds and looks kind of like a surfboard with solar panels attached on top and a propulsion fins suspended below. The technology isnt exactly new, explained Connor.

Were a systems integrator, said Hine.

This technology has been around for a decade. We make it do useful things. It started out with a bunch of Silicon-Valley millionaires who had houses on the Big Island in Hawaii and they wanted to listen to whale noises from their offices in San Francisco but they wanted it to be live and so they designed this thing to communicate by radio to their office in San Francisco, he said.

what we wanted to do is just change the whole approach from small numbers of exquisite, but very expensive things, to large numbers of relatively inexpensive things so we could be in more places at one time

Connor said he came across the idea while he was still in the Navy and just tried to think of something to do with it.

One of the issues I had in the Navy I ran the U.S. nuclear submarine force and realized that we could only put things in so many places at one time, he said.

In an email, Connor later said that with a limited submarine force and a growing list of missions, the U.S. can only put so many submarines on station around the world in so many places and that one of the companys goals is to support the effectiveness of U.S. submarine fleets.

The traditional way to overcome that would be to ask for more money for submarines so what we wanted to do is just change the whole approach from small numbers of exquisite, but very expensive things, to large numbers of relatively inexpensive things so we could be in more places at one time, he said.

The systems move at about two knots, said Connor. We cant rush from place to place in these things but we can be in places for long periods of time, understanding what goes on there because we always have a sensor that we can talk to and then we can move.

The engineers who program the systems at ThayerMahan are in their twenties and thirties, said Connor.

Theyre the experts, which is pretty cool. We say its sobering for us because we decide what it is we want to accomplish, we know what the needs are because weve been out there and we spend a lot of time drawing boxes on white boards and saying you need to write some software that will do this and, [they say,] yeah, I can do that, and they do it, said Connor. These are 21st-century skills that they have. I really think this industry the maritime sensing industry is migrating in these 21st century techniques.

The first vehicle the company developed was named Alfred, after historian Alfred Thayer Mahan, the companys namesake who wrote Influence of Sea Power Upon History: 16601783, and inspired the building of Teddy Roosevelts Great White Fleet a generational change in military maritime thinking.

Were rather presumptuous, but were saying this approach is going to set strategy for the next century and decided to take a historic name and apply it to the company. People in the business understand who Alfred Thayer Mahan is and its a good place to start talking when we first meet, Connor said.

We didnt think Hine Connor merged together, Hine laughed.

Connor is ambitious about the companys potential, especially for the field of national security.

[Our systems] give us a greater understanding of marine life, period whether its rising ocean temperatures, shipping patterns or whatever. We should all get smarter

Our vision is, were going to help industry, like offshore wind, academia, like our friends at Woods Hole and Scripps and other places and UConn and URI, and we can also work on the national security with the U.S. and allies. We can do it by having more sensors in more places for less money and therefore better awareness, he said.

The collected data can also be used to increase transparency and cooperation among offshore industries and activities, he said.

Offshore space is increasingly a shared space. Youve got commercial, youve got wild-catch fishing, youve got fish farms, youve got offshore wind shipping is up 400 percent in the last 15 years so were all sharing this very valuable resource and the idea is our equipment will help create a more transparent environment so that we can share this resource more responsibly, Connor said.

ThayerMahan systems can survey and transmit in real time sonar images to a resolution of three square centimeters, and can be used to understand the long-term impact of offshore development whether wind energy or other human activities on marine life, said Connor.

[Our systems] give us a greater understanding of marine life, period whether its rising ocean temperatures, shipping patterns or whatever. We should all get smarter, he said.

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Excerpt from:

Groton Startup ThayerMahan Grows to Capture Offshore Wind and Electric Boat Opportunities - CT Examiner

]]> Boston Dynamics-built quadruped robot Spot is one of the robots involved in the initiative. Credit: Aker BP.

Norwegian oil exploration and development firm Aker BP has formed a strategic partnership with global industrial artificial intelligence (AI) software-as-a-service (SaaS) firm Cognite to explore the potential of robotics in the offshore oil and gas platform.

The two firms will focus on the use of robotics systems to carry out safer, more efficient and sustainable offshore operations.

According to Aker BP, Cognites Cloud-based industrial data operations and intelligence platform Cognite Data Fusion (CDF) will serve as the data infrastructure for the initiative.

The CDF software platform will provide open and unified industrial data model. This allows for easy access to enable analytical operations and data-driven decisions.

The two firms will conduct several tests using robots and drones on the Aker BP-operated Skarv installation in the Norwegian Sea this year.

Aker BP said that it will test the robotics systems for their performance in autonomous inspection and high-quality data capture. Other testing tasks may include the systems response to leaks and gauge the performance in automatic report generation.

Aker BP CEO Karl Johnny Hersvik said: Digitalisation will be one of the differentiators between the oil companies of the world, in order to be able to deliver low cost and low emissions. Exploring the potential of robotics offshore underpin our digital journey.

Boston Dynamics-built quadruped robot Spot and other robots have involvement in the initiative.

Cognite and Aker have already tested Spots mobility in simulated oil and gas environments. This ensures that the system can operate in locations in the facilities that are difficult to access through traditional automation.

Cognite CEO John Markus Lervik said: The key to Aker BP and Cognites robotics initiative is that it combines industry-leading hardware and software.

By ingesting data collected by robots into Cognite Data Fusion, Aker BP engineers will be able to see it in context with data from across the companys operations and make data-driven decisions that improve efficiency and safety.

In August 2018, Aker BP signed a smart service contract with Cognite and Framo Services to digitalise its Ivar Aasen platform in the North Sea.

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Cognite and Aker BP to explore robotics in oil and gas operations - Offshore Technology

The German Nature And Biodiversity Conservation Union (NABU) has filed an objection against the building permit for the Gennaker offshore wind project.

NABU states that installing the projects 103 turbines some10km north of Dar will result in massive environmental damage as the units will be located in the middle of a bird migration corridor.

Unfortunately, Gennaker reveals the total failure of the regional wind power planning.Despite massive conservation concerns and a lack of grid connection, the wind farm was approved.It would cut off one of the most important bird migration lines in the southern Baltic Sea, said NABU President Jrg-Andreas Krger.

NABU added that there are shortcomings in the approval, including incomplete procedural documents, however the incompatibility of the project with the adjacent bird sanctuaries is particularly critical.

According to the organization, although current studies show that seabirds avoid turbines with a radius of over 10km, the Gennaker project takes into consideration only 2km, which massively underestimates the loss of habitat in two EU bird protection areas.

There is hardly a more unsuitable place for a wind farm.The Rgen-Schonen line is the central flight corridor for millions of migratory and resting birds, including cranes, mourning and iron ducks and countless songbirds, said Stefan Schwill, State Chairman of NABU Mecklenburg-Vorpommern.

The expected number of collisions and loss of habitat are not compatible with nature and species protection law.The approval is illegal.

To remind, in May 2019, the state ofMecklenburg-Vorpommern granted a license toOWP Gennaker GmbH, a subsidiary of wpd, to build and operate the 865.2MW offshore wind farm.

The project will feature Siemens Gamesa 8MW turbines with a rated output of 8.4MW, two offshore substations and the inter-array cables.

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NABU Objects to Gennaker Offshore Wind Project - Offshore WIND

SIHANOUKVILLE, CAMBODIA - A frightening weeklong odyssey is nearing an end for almost 1,500 passengers on board the cruise shipMSWesterdam, which had been turned away from ports in four virus-wary countries before being allowed to anchor this week in Cambodia.

Officials said passengers would be permitted to disembark Friday in the Cambodian port of Sihanoukville provided a health check showedtheywere free of COVID-19, the deadly, fast-spreading coronavirus first reported inWuhan, China.

The government of Cambodia, which has strong ties to Beijing, finally allowed the stranded cruise liner to anchor off itscoastThursday morning. The vessel, with 1,455 passengers and 802 crew on board, had previously been turned awaybyJapan, Taiwan, the Philippines and Thailand.

Another cruise ship, theDiamond Princess, has been off the coast of Yokohama, Japan, for 10 days, with at least 218 passengers infected by the coronavirus.

TheMSWesterdamarrived off Preah Sihanouk provinces Sihanoukville town about 7 a.m. local time Thursday, according to provincial authorities, but passengers have not been allowed off the ship, which is owned by U.S.-based Holland America Line. The ship left Hong Kong on February 1.

'It is taking time'

Holland America posted on its Facebook page Thursday morning, Inspection and clearance procedures are proceeding. Given the number of organizations involved in supporting todays complex operations, it is taking time. We are grateful to everyone in Cambodia who are helping and welcoming us.

Local Cambodian authorities said the passengers could disembark only after clearing a health check, and if they had confirmed flight bookings from Sihanoukville International Airport. Passengers who meet these requirements are expected to come ashore on Friday, according to the provincial governor, Kuoch Chamroeun.

Lou Kim Chhun, director general of the Sihanoukville Autonomous Port, said the cruise ship would remain anchored 2.5 kilometers offshore and cleared passengers would be taken by buses to the airport on Friday.

A fleet of buses with Welcome to Cambodia signs was parked on shore all day Thursday.

In a statement emailed on Thursday, Holland America said It is expected that a full disembarkation will take a few days given the charter flight schedule. During this time, guests will remain comfortably on board with full service in operation.

The line has given each passenger a 100% refund of their cruise fare, plus an additional 100% future cruise credit. Passengers and crew are receiving complimentary onboard internet and phone access, the statement continued to guests and crew to stay in contact with loved ones.

They will be able to leave if they have the flight tickets to go back. If they have a ticket, we will help coordinate, said Kuoch Chamroeun.

The provincial governor added that some 80 health workers performed health checks on the passengers Thursday and had found some passengers to be unwell, but did not provide additional details.

20 ill, but no coronavirus

Or Vandine, a Health Ministry spokesperson, said 20 passengers showed symptoms of the flu, diarrhea and stomachaches. She said these passengers underwent tests for COVID-19 and samples had been flown to Phnom Penhs Pasteur Institute.

We have received the information that there are people whose health is not normal. But there is no case of COVID-19 so far, she said.

Mam Bunheng, Cambodiashealthminister,said later Thursday that 20 ill passengershadtested negative for thecoronavirus.

We did the test and the result is negative, he said. It is done, he added when askedif there wouldbe more tests.

Christina Kerby, a passenger onboard theMSWesterdamwho has been tweetingabout the ships wanderings, said the captain hadtoldpassengers the clearance process was proceeding butwastaking longer than anticipated.

U.S.Embassy spokesperson Emily Zeeberg told VOA Khmer therewere more than 600 U.S. citizens on theMSWesterdamcruise ship.

The U.S. Embassy in Phnom Penh is working closely with the government of Cambodia to help facilitate the docking and a safe disembarkation, she said.

Zeeburgsaid thataU.S.Embassy team was assisting U.S. citizens transiting to theirdestinations.

It remainedunclear if countries that had refused to allow the ship to dock wouldnow allow passengers who passed Cambodias health screening to transit through their airports.

However,The Nationnewspaper in Thailand quoted an immigration official Thursday who said that the passengers wouldbe allowed to travel to other countries, including Thailand.

We have requested the Cambodian government to submit the list of any passengers who want to enter Thailand as well as their health examination results, said ArchayonKraithong, commander of Immigration Police Division 3.

Hun Sen downplays risks

Cambodias Prime Minister Hun Sen has downplayed the risks from the COVID-19 outbreak by refusing to restrict air and sea connections with China, even encouraging Chinese nationals to continue to travel to Cambodia.

He balked at evacuating Cambodian students from Wuhan, saying it was more important to show solidarity with the Chinese people.

The prime minister and Cambodia have received praise, though, for allowing the cruise liner to dock at Sihanoukville.

Cambodia wants to show that Cambodia doesnt only cooperate with China, but we cooperate with all nations because this has become a global concern, Hun Sensaidin an interview with local media on Wednesday.

On Thursday, Hun Sen posted on his Facebook page that he would go to welcome [the passengers] in Sihanoukville as the host country which has solidarity and responsibility.

'Welcome act of solidarity'

Tedros Adhanom Ghebreyesus, director general of the World Health Organization, praised Cambodia on Twitter, a tweet that was quickly postedbythe ChineseEmbassy in Phnom Penh.

This is a welcome act of solidarity at a time when the world has a window of opportunity to stop COVID-19 and avoid stigma and fear, Ghebreyesustweeted.

Since the outbreak, Cambodian authorities have confirmed only one case of COVID-19. The Chinese nationals case was confirmed on January 27. He tested negative three times and was released from a Sihanoukville hospital earlier this week, according to a Ministry of Health spokesperson.

Holland Americas statement also said, The future voyage plan between cruises is still being finalized. The Feb. 15 Westerdam cruise scheduled to embark in Yokohama has been canceled.

In another statement issued Thursday, the cruise line said, We hope that guests on this voyage will join us again and sincerely thank them for the many compliments we have received for our crew and the acknowledgements that this situation was out of our control.

Manilene Ek of VOAs Khmer Service contributed to this report from Washington, D.C.

See original here:

Cruise Ship Welcomed by Cambodia Is Anchored Offshore Pending Coronavirus Check - Voice of America

Image: Ocean Onyx Courtesy: Offshore Energy Today

Diamond Offshore (NYSE:DO) is one of the offshore drillers that I am regularly following on Seeking Alpha.

As I said in my preceding articles, the company presents definitive weaknesses when it comes to its rig fleet, but up until now, Diamond Offshore had its balance sheet quite in order. The fourth quarter is putting a dent on that idea, and I will explain it later in this article.

Diamond Offshore continues to shrink in size, and it is taking a severe toll on its balance sheet, the company is now expecting only $210 million (midpoint) for the first quarter of 2020.

Despite one substantial asset segment called the moored assets class right now (e.g., Ocean Onyx, Ocean Apex, etc.), it seems that the backlog is disintegrating in front of our eyes. Now, less than $1.6 billion remaining and only $50 million added in the last fleet Status.

Looking at the overall situation, they are not more advanced than a quarter ago.

Despite some rare contracts, I am far from being impressed by the pace and the strength of the "recovery".

Thus, I recommend being extremely cautious when it comes to investing in this sector until a time when the recovery is noticeable in the balance sheet with better margins and free cash flow, which is not what is expected by the company in 2020.

Meanwhile, trading the offshore drilling sector short term is highly recommended and perhaps the only way to make a decent profit.

Data by YCharts

Note: Diamond Offshore is 53% owned by Loews Corp. (NYSE:L), which gives some credibility and safety long term.

1,975

1,976

Note: Most of the data indicated above come from Morningstar and company release.

1 - Quarterly revenue of $276.4 million in 4Q'19

Diamond Offshore posted $276.34 million in revenues in the fourth quarter of 2019, an increase of 18.9% when compared to its revenues of $232.522 million in the same period last year.

Diamond dropped to a $74.770 million loss in its 4Q 2019 (EPS $0.54 per share) from a loss of $79.207 million in the prior-year quarter. Adjusted loss per share was $0.45.

During the third quarter of 2019, the average company dayrate was $264K/d, a decrease compared to $315K/d in the corresponding quarter of last year. Utilization was up to 59% from 46% in 4Q'18. However, the dayrate average is up a little sequentially, suggesting some support.

Marc Edwards, the CEO, said in the conference call:

2019 was an unusually heavy CapEx year for Diamond as we focused on strategic upgrades for our most marketable rigs. We believe these investments will be beneficial to Diamond in the long run. Moving forward, we will focus on preserving liquidity and limiting CapEx into 2020 and beyond.

It surmises the issue and why Diamond Offshore is struggling financially with a continual loss in free cash flow, as I have shown below.

2 - Free Cash Flow is a loss of $53.0 million in 4Q'19

Diamond Offshore is generating negative free cash flow yearly. The loss in FCF annually ("TTM") is $369.972 million, with a loss of $53 million in the fourth quarter of 2019.

As we can see, Diamond Offshore is bleeding free cash flow regularly despite the recent new contracts awarded, confirming an uptrend in daily rates. The issue is that the loss in free cash flow is not related to an increased CapEx but a decrease in profit margin.

Scott Kornblau, the CFO, said in the conference call:

Full year 2019 capital expenditures of $326 million came in approximately $45 million less than mid range of the revised guidance of $360 million to $380 million given on our previous calls.

During 2020, Diamond Offshore is planning to undergo three 5-year special surveys that require zero dayrate time and are generally costly.

The first one is already complete as the drillship Ocean BlackRhino spent about two weeks in January performing its survey.

The second one is the drillship Ocean BlackLion, which is scheduled to go into a shipyard in the latter half of the first quarter to conduct its survey and the automation upgrades.

Also, during 2020, the drillship Ocean BlackRhino will go into a shipyard to perform similar upgrades to the other black ships and prepare for its 2021 contract commencement in West Africa.

3 - Quarterly backlog history and discussion

Diamond Offshore released its fleet status on February 10, 2020.

What happened since the last fleet status?

The company added a total of over $50 million in the backlog.

Below is the backlog repartition per year:

And below is the contract backlog repartition per year indicating that the drillship segment is the most significant at $994 million in the contract backlog:

The backlog now stands at $1.6 billion as of January 1, 2020, with about ~$664 million in 2020 (not including the effect of the projected out-of-service time for the remainder of the year).

Diamond's average dayrate in 4Q 2019 dropped to $264k/d from $315K/d in the fourth quarter of 2018. However, utilization increased to 59% from 46% in 4Q 2018.

From PR

CEO Marc Edwards said on the conference call:

It is clear that since the trough in 2016, day rates have risen for all asset classes. However, upward pricing momentum remained slow due to ongoing rig capacity overhang, especially in the drillship market as well as the short-term nature of the awards.

4 - Net Debt is $1.82 billion in 4Q'19

Net Debt is now $1.766 billion, with a net debt-to-EBITDA ratio of 23.8x, which is very high and means that the company can repay its net debt in about 24 years based on its EBITDA ("TTM"), which is $76.414 million.

Scott Kornblau said in the conference call:

We finished 2019 with $156 million of cash and nothing drawn on our revolver. However, we soon expect to start drawing on our revolver likely in the second quarter and we expect to be cash flow negative during 2020 and end the year with a drawn revolver balance

The street did not react well to this news, and the stock plunged significantly.

Diamond Offshore's recent results were again not inspiring with a contract backlog continuing to degrade now below $1.6 billion (estimated at $1.57 billion in February). However, they were above analysts' expectations. Still, reading between the lines push the market to think twice before investing in this stock, especially with first-quarter 2020 anticipated contract drilling revenues in the range of $205-$215 million.

As I said above, 2020 is going to be another "expensive" year in terms of CapEx with about three to four drillships 5-year special survey SPS. However, for 2020, the company anticipates CaPEx to be $190 million and $210 million. I am a little skeptical and find it a little light.

The big issue with Diamond Offshore is that the company is accumulating free cash flow losses regularly and warn that it will be the same in 2020. Worse, the company will have to tap into its revolver after indicating that cash flow will be negative in 2020. Total cash is now well below what it was the same quarter a year ago.

Technical Analysis

DO is showing a descending channel pattern with successive lower lows, which is bearish. Line support is at about $3.85 now, and line resistance is $7.3. However, I see a new intermediate resistance at $5.00 now.

The trading strategy is to buy and accumulate at around $3.90 or lower, assuming no damaging news coming from the oil prices. The first sell target is $5, at which point it is a good idea to take about 20% off the table.

If oil prices recover from the coronavirus' Black Swan event, I believe DO will have a resistance breakout at $5 with a potential retest at $7.00 later.

The worst-case scenario could be a mounting scare about the virus and a significant drop in oil prices. In this bearish case, the next support is around $2.50. Trading DO is risky, watch oil prices like a hawk.

Author's note: If you find value in this article and would like to encourage such continued efforts, please click the "Like" button below as a vote of support. Thanks!

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Diamond Offshore: The Slide Continues - Seeking Alpha

NEW LONDON, Conn. (WTNH) Improvements to the state pier in New London are going forward. Governor Ned Lamont says the project will bring more jobs and a world-class offshore wind center.

Governor Lamont announced Tuesday the state and its partners at Gateway Terminal, Orsted and Eversource, have reached a final agreement on a harbor development plan for the state pier in New London through a combined public-private investment of $157 million.

We got to think about a renewable carbon free future and wind power is our future, said Governor Ned Lamont.

Connecticut can be the Saudi Arabia of wind power, offshore wind generating power in a cost, very economical with everything else, at a price thats coming down dramatically.

This pier allows us to greatly accelerate maritime traffic in and out, interconnecting the rail service coming in.

The governor said the project will expand the use of carbon-free energy sources.

Danish-based company, Orsted, has built offshore wind centers around the globe.

Thomas Brostrom, the CEO of Orsted, told News 8, It basically takes a lot of fossil fuels away and replaces fossil fuels. It is as clean as you get. It basically harvests the strong winds that you see at sea and you bring them to shore.

The project will create hundreds of permanent jobs and is planned to become a transportation hub for companies. The first phase of the project will be infrastructure upgrades.

There will be a lot of transportation. A lot of the vessels will be coming out of there, supplies coming out of there so we see a lot of other needs.

Whether it is catering transportation needs, we are going to do some dredging there and of course port enhancements for a vessel that will be 500 feet long, 150 wide.

Construction is expected to begin in early 2021 and be completed by August 2022.

Originally posted here:

State pier project to bring more jobs, offshore wind center to New London - WTNH.com

Union GMB Scotland has accused the UK government of washing its hands of the responsibility to deliver local offshore wind jobs.

The workers group was responding to comments made by Scottish Secretary Alister Jack (pictured) who told parliament on Wednesday that fabrication taking place overseas is the market economy.

Jack was addressing a question about the fabrication in Indonesia of jacket foundations for EDF Renewables 450MW Neart na Gaoithe wind farm.

He also said the UK needs to find a better way of efficiently delivering offshore wind components.

GMB Scotland organiser Hazel Nolan said: Alister Jack has unwittingly revealed the truth: the UK government has washed their hands of their responsibility to deliver renewables jobs here in the UK.

Far from the market economy, what we are seeing is yards here in the UK being abandoned by our government and left to compete with heavily state subsidised yards abroad.

The Scottish and UK governments have failed to produce an industrial strategy to match the rhetoric on green jobs and its energy consumers here in the UK that are propping up this rigged market with spiralling energy bills.

EDF Renewables UK chief executive Matthieu Huesaid:We dont recognise many of the statistics being quoted here. However, only this week, we have outlined details of four supply chain events to be held in Scotland at which Scottish companies will be introduced to the Tier 1 contractors for Neart na Gaoithe."

He added: "We are committed to generating as much work as possible here in Scotland. The full extent of the benefit to the Scottish supply chain will become clear once all Tier 2 and Tier 3 contracts have been awarded.

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UK has 'washed its hands' of offshore jobs - reNEWS

Transmission systems operator TenneT has entered into an innovation partnership with a number of companies to develop a 2GW offshore grid connection system.

Given that such a platform does not exist, a new platform design and a high voltage direct current (HVDC) transmission system that allows increased power transfer is required, TenneT said.

To realise such a system, TenneT launched the design phase with five HVDC suppliers on the basis of an innovation partnership: ABB Power Grids, GE Renewable Energys Grid Solutions (Netherlands), Consortium Global Energy Interconnection Research Institute Co. Ltd. (GEIRI) & C-EPRI Electric Power Engineering Co. Ltd. (C-EPRI) (China), Siemens (Germany), and Xian Electric Engineering Co., Ltd (China).

The first two grid connections of this kind will be installed in the IJmuiden Ver offshore wind area in the Dutch North Sea.

Given the combination of the large distance to the coast and the size of the IJmuiden Ver wind energy area, a 2GW direct current (HVDC) solution, based on 525 kilovolts, appears to offer most economical advantages, according to TenneT.

The selected suppliers will develop this 2GW 525 kV HVDC solution based on criteria set by TenneT.

They will provide specific information on this to Iv-Offshore&Energy b.v., which is carrying out the Front-End Engineering Design (FEED) study on behalf of TenneT. On this basis, a standardised platform design will be developed for all HVDC solutions.

The information from the joint R&D innovation phase will be used for the final design of the platform. TenneT will use this standardised design for the contracting of several 2GW grid connections, including IJmuiden Ver Alpha and Beta in the Dutch North Sea, the first two grid connections of this kind to be built

TenneT also plans to realise at least four 2GW offshore grid connection projects in Germany from 2029 onward.

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TenneT Gathers 2GW Offshore Grid Connection Team - Offshore WIND

SPT Offshore has received an order from a Chinese client for the design, supply, installation, and support services for two meteorological mast structures.

The two met masts, designed by KCI the engineers B.V., are intended to measure the meteorological and oceanographic data required for the future offshore wind farm developments.

These masts are intended to be installed 30 kilometres offshore in the Yellow Sea at water depths of ~ 31 metres.

The support structure will be a mono-pod supported by a three-suction pile cluster due to its cost-efficiency for these soil conditions, according to KCI.

The advantages of suction pile foundations are less structural steel required compared to the traditional foundations, no necessity of the revolving heavy offshore cranes, no hammers, no mud mats, no pile guides, no levelling systems required, and silent installation, KCI said.

The foundation installation is reversible to enable relocation for re-use or decommissioning purposes.

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SPT Offshore to Deliver 2 Met Masts in China - Offshore WIND

]]> The Government of South Africa has approved Africa Oils acquisition of a 20% participating interest and operatorship of Block 3B / 4B from Azinam. Credit: Steph Lee.

The Government of South Africa has approved Africa Oils acquisition of a 20% participating interest and operatorship of Block 3B / 4B from Azinam.

Situated in the Orange basin in offshore South Africa, Block 3B / 4B covers an area of 17,581km2. It has a maximum water depth of 2,500m.

Africa Oil will assume operatorship for the joint venture (JV) partners Azinam and Ricocure. They will respectively own a 20% and 60% participating interest in the block.

Operators are intending to drill several exploratory wells in the mid-Cretaceous oil play, the location of Block 3B / 4B.

Africa Oil president and CEO Keith Hill said: Together with our equity interests in Impact Oil and Gas and Africa Energy Corp., Africa Oil has a significant footprint in several emerging plays extending from South Africa to Namibia, where both Total and Shell plan to drill potential play-openers in 2020 and at the same time are increasing their positions in other blocks adjacent to Block 3B/4B.

From existing 3D seismic surveys, we have identified a number of similar prospects to those that the majors are targeting.

Africa Oil also said that it will participate in a $40m capital raising by Impact Oil and Gas. Impact intends to use these proceeds to fund its interest in high-impact 2020 drilling programmes.

These programmes include drilling the Venus-1 exploration well on block 2913B in offshore Namibia. They also include the drilling of Luiperd-1 well on block 11B/12B in offshore South Africa.

In February 2018, Africa Oil signed agreements to acquire a 25.2% equity interest in Impact Oil and Gas.

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Africa Oil receives approval to acquire interest in South Africa's block - Offshore Technology