‘Resurgence’ for Capes but still ‘miserable’ for Panamaxes: Baltic

London: The Baltic Exchange reports that the Capesize market has seen a resurgence this week. Renewed interest on the period market has seen modern 177,000 dwt tonnage fixing for a year at $17,500 daily.

‘In Asia reports of Chinese buying spot iron ore from Australia for December shipments and resulting enquiry has seen the West Australia rate rise from about $4.35 to in excess of $5.50 by the week’s end which is approximately $11,000 daily for the round voyage, says the Baltic. But for Panamaxes the Far East has endured a miserable week, the Exchange reports. A modern 76,000 dwt, open Japan, agreed $3,000 daily for a round via Australia and a mid 90’s built 70,000 dwt in south China fixed a trip Indonesia to Korea at $2,500 daily. India, however, has been busy, including a 72,000 dwt obtaining $6,000 daily from Muscat for a trip India/China. Period trading has given some encouragement with rates reflecting a marked premium over the spot trip market, including a grain house booking a modern 72,000 dwt, open Continent end December, for a year at $10,750 daily. In the Handy/Supramax market East of Suez it was still the Indian ore markets that were providing the bulk of the business, with rates remaining at least steady, according to the baltic Exchange. It was becoming apparent that tonnage open further east with little to go for was now being attracted back into the Indian Ocean. The 2005 built 53,702 dwt Sapphire Seas was reported to have been booked by AHT with retroactive delivery Rizhao 5 December for a trip via West Coast India back to China at $3,300 daily. Earlier in the week, the 2005 built 55,695 dwt POS Freedom open Dalien spot was reported booked for a Pacific round voyage at a relatively respectable $5,000 daily.

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COSCO Group CEO sees shipping recovering in 2009

The downturn in the shipping sector will not last for long, the Chief Executive of Chinese giant COSCO has said, expressing hope that demand would rebound in the first half of next year.

‘Global shipping, facing its worst crisis in decades, has seen dry cargo rates dive more than 90 percent after a five-year boom. But COSCO said that investors need to replace panic with confidence to help the sector recover. ‘The financial tsunami affects real shipping demand. Shipping is diving due to the panic of investors …but the diver has to come up eventually, COSCO CEO Wei Jiafu said during a recent visit to Greece to sign a deal to operate container services at the country’s largest port. “The downturn in the shipping sector will not last for several years … I hope in the first half of next year shipping demand will be back.’ COSCO Pacific said last month it would cut capital spending in the fourth quarter and in 2009 to strengthen its balance sheet amid the global crisis. Mr Wei did not say if the company would cut investments to mitigate the effects of the crisis.

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Petro Andina bags four blocks in Colombia

Calgary-based Petro Andina Resources was the successful bidder for the right to negotiate for exploration and production contracts on four exploration blocks in the Republic of Colombia at the Colombia Mini Round 2008.

‘The results were posted on the Colombian Hydrocarbons Agency (ANH) website. Petro Andina and partner, Columbus Energy were awarded blocks LLA-16, LLA-20, LLA-29 and LLA-30 in the prolific Llanos basin. Under the terms of the Mini Round 2008, bidders committed to a minimum work programme proscribed for each block and then bid a supplemental work program plus an “X-Factor” or additional royalty. Petro Andina will be operator of record of the blocks with a 50% working interest. The four blocks cover an area of about 495,000 gross acres, and each have exploration periods of six years made up of two, three-year phases. The first exploration phase will involve the acquisition of three dimensional (3D) seismic data and the drilling of exploration wells by Petro Andina and Columbus. The total net cost to Petro Andina to complete this exploratory work is around $46 million. In addition to the work commitments, Petro Andina and Columbus bid an X-factor of one percent (equivalent to a one percent royalty) to the ANH. Blocks 16 and 20 surround an existing 50 million barrel oilfield, discovered in 1974. The blocks currently have about 1300 kilometres of existing two-dimensional (2D) seismic data which show several promising leads. Blocks 29 and 30 are on trend with the Oropendola block which is owned 100% and operated by Columbus. Collectively, these blocks have about 650 kilometres of existing 2D seismic data and evaluation of the blocks was conducted with the benefit of 3D seismic and well information from the adjacent Columbus lands. The blocks will be subjectto standard ANH contracts and Petro Andina anticipates signing the contracts in the first quarter of the coming year, pending final approval of the Directive Counsel of the ANH.

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