Connect with us

Oil

Oil-Tanker Charter Data Show Shift to China

Published

on

BEIJING – Steady energy demand in the world’s second-largest oil-consuming country has been a saving grace for the oil-tanker market, with much of the credit going to one Chinese oil trader: China International United Petroleum & Chemicals Co., better known as Unipec.

Unipec was the No. 1 charterer of oil tankers for the second year in a row in 2013, beating global oil giant Royal Dutch Shell PLC in both years, according to consulting firm Poten & Partners. Unipec accounted for 791 fixtures—or agreements to hire tankers for specific routes—last year and also accounted for the largest volume of cargo transported, at 171 million metric tons, or 11% of the total, the data show.

Shell trailed with 752 fixtures and less than half of Unipec’s volume, at 83 million tons.

A decade ago, Unipec didn’t even figure among the top-20 charterers of oil tankers. Since then, trade flows have dramatically changed and the tanker-chartering business has seen some ups and downs, with the 2008 financial crisis having dealt the most serious blow, part of a broader decline in shipping as demand growth for commodities slowed.

Oil-Tanker in ChinaAlthough China’s economic growth has diminished since the early post-financial-crisis period, when massive government stimulus made the country the last great hope of exporting nations, its gross domestic product growth has maintained a level above 7.5% that is enviable in most developed countries. It imported 255 million barrels of oil in the first 11 months of 2013, or 5.6 million barrels a day, up 3.2% on year. Its steady demand combined with the U.S.’s declining need for imports thanks to its energy boom have skewed the global flow of both oil and products.China’s move up the rankings—PetroChina Co. is also increasing its presence among tanker charterers, joining the top-10 group last year—reflects its growing control over elements of its oil supply chain and underscores the rising influence of national oil companies at the expense of private oil majors as the center of global oil demand growth shifts toward developing Asia.

In the segment for very large crude carriers, or VLCCs, which sail long distances from the Middle East to China, Unipec —a unit of China Petroleum & Chemical Corp., or Sinopec—accounted for 556 fixtures, more than the next four charterers combined.

That contributed to a 5.5% on-year increase in overall chartered volume last year, according to Poten & Partners. ”Chinese chartering activity was the driving force behind the total increase in volumes this year as many charterers…reported declines of 20% or greater when compared to 2012,” the firm said.
– WALLSTREET JOURNAL

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Oil

FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry

Published

on

In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.

The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.

The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.

Read Also: Atiku Calls For Rotational Presidency Across Nigeria’s Geopolitical Zones

These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.

The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.

This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.

These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.

The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.

 

Continue Reading

Business

Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative

Published

on

By Yemie Adeoye

NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.

The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.

“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”

The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.

“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.

Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.

Continue Reading

Oil

ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations

Published

on

As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.

Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”

Read Also: Offset Accuses Cardi B Of Cheating During Pregnancy

This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.

Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.

We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.

“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.

On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.

 

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.