It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Monday, May 08, 2023
Nigeria To Finally Commission Huge 650,000 Bpd Oil Refinery
After years of delays and massive cost overruns, Nigeria is set to finally see a 650,000 barrels per day (bpd) oil refinery commissioned later this month.
The Dangote Refinery, built by the group of the same name of Africa’s richest person, Aliko Dangote, is expected to be inaugurated by Nigeria’s outgoing President Muhammadu Buhari on May 22, Nigerian outlet THISDAY reported on Sunday, quoting a source at the refinery.
Construction at the refinery has been completed, and tests are being carried out, the source told THISDAY.
The Dangote Group has previously said that it aims to commission the refinery before President Buhari leaves office at the end of May after serving the maximum of two consecutive terms per the constitution.
It looks like this time the timeline will be kept, as a presidential spokesperson told Reuters on Sunday that the refinery near Lagos is set for inauguration on May 22.
The refinery has cost around $20 billion, up from initial cost estimates of between $12 billion and $14 billion.
The huge refinery will be able to meet domestic fuel demand and even have some part of the fuel left for exports.
The Dangote refinery expects to export diesel to customers in Europe, as well as gasoline to Latin American and African markets.
Nigeria, OPEC’s top crude oil producer in Africa, has had to rely on fuel imports due to a lack of enough capacity at its refineries, some of which had to undergo refurbishment in recent years.
At the end of last year, the then oil minister Timipre Sylva said that the country expects to stop importing petroleum products starting in the third quarter of 2023.
A refurbished refinery in Port Harcourt in the Niger Delta is expected to be producing 60,000 bpd of refined crude oil per day, and the new Dangote refinery is expected to come online in 2023, Sylva said at the end of November.
By Tsvetana Paraskova for Oilprice.com
ON APACHE LAND
Rio Tinto under ‘immense pressure’ to develop US copper project Reuters | May 4, 2023 | Image from Resolution Copper.
Rio Tinto Ltd is under “immense pressure” from the US government to develop its Resolution copper project in the United States, given the copper it holds accounts for a quarter of all US reserves, its chair Dominic Barton said on Thursday. Copper is vital for the transition to green energy but the project in Arizona is opposed by all of the state’s tribal councils, including the San Carlos Apache because it would destroy a heritage site of religious significance. Rio Tinto has pledged to follow United Nations principles that require full consent from Indigenous groups for mining on traditional lands in the wake of its destruction of significant rock shelters in Western Australia for an iron ore mine in 2020.
“We are getting immense pressure to proceed because of the copper reserves that are there,” Barton told shareholders at Rio Tinto’s Australian shareholders meeting.
Pressure was coming from “parts of the US government,” Barton clarified on a media call following the meeting, as US senators seek to get copper put on the US critical mineral list which would allow copper projects access to tax breaks.
“We are engaging and we are not (making) any conclusions but we are going through a process right now,” CEO Jakob Stausholm said.
“It’s not just a matter of government approvals, but it’s also a matter of us convincing ourselves it’s the right thing.”
The US Forest Service is set to approve a land swap between the US government and Rio Tinto that would allow the mining giant to develop Resolution but Indigenous groups object to the transfer and contest ownership of the land.
Rio Tinto has been under a “deep engagement” process with the groups for the past nine years. “Ultimately it’s societal choice,” Stausholm added.
The US consumes around 2 million tonnes of copper a year but produces less than 1 million tonnes, Stausholm noted, and US copper demand is only expected to grow sharply in coming years, he added.
(By Melanie Burton; Editing by Himani Sarkar and Stephern Coates)
CRIMINAL CAPITALI$M
After Accounting Scandal, Austal USA Hires Former Fraud Prosecutor
Austal USA has hired a former federal prosecutor with 10 years of experience on white collar crime cases to serve as its chief compliance officer. The new appointment may have relevance for Austal's current needs: the Justice Department recently indicted three former Austal USA executives on charges of accounting fraud during the early days of Austal's Littoral Combat Ship program.
Austal USA's new vice president of legal affairs and chief compliance officer will be Adam Overstreet, a veteran of the U.S. Attorney's Office for the Southern District of Alabama. For 10 years, he served in the office's criminal division and handled fraud prosecutions.
Overstreet also has relevant experience in shipbuilding. Most recently, he served as Ingalls Shipbuilding’s senior counsel, where he led internal investigations for Ingalls and managed the litigation docket for HII’s Mission Technologies Division.
The appointment also sends a signal. “Austal USA takes compliance with all laws and government regulations seriously,” Austal USA President Rusty Murdaugh said in a statement. “Adam’s deep and diverse experience in compliance, investigations, litigation, and federal procurement makes him well-suited to place Austal in the best position for continued success as a top maritime defense contractor.”
Last month, the U.S. Securities and Exchange Commission indicted three former executives of Austal USA on charges of accounting fraud, including one individual who was a current employee until the day of the indictment.
The accused include the former director of Austal USA's Independence-class Littoral Combat Ship (LCS) program, William Adams; former president Craig Perciavalle; and director of financial analysis Joseph Runkel. They have been charged with five counts of wire fraud and four related charges; if convicted, the maximum possible penalties for each charge are measured in decades.
The three men stand accused of manipulating an accounting metric known as “estimate at completion” (EAC) for multiple LCS ships that Austal USA was building in 2013-2016. According to charging documents, reducing this metric inflated the reported earnings (EBIT) of Austal USA's publicly-listed Australian parent company, Austal Ltd., boosting the value of its stock.
In mid-2016, Austal USA was forced to admit that its costs on LCS were higher than previously disclosed. This led to an unexpected full-year loss of $120 million, down from a profit of $86 million the year before.
Alleged accounting scandal aside, Austal USA is at least as important to the U.S. defense industrial base now as it was in 2013. The Department of Defense has invested $50 million in infrastructure to add steel hull construction capability to Austal's all-aluminum lineup, and the shipbuilder is one of the main contenders for a follow-on yard contract for the new Constellation-class frigate (
Report: Lagging U.S. Offshore Wind Power Could Swell to 51 GW in Years
ACP sees rapid growth in the U.S. offshore wind capacity while cautioning of challenges
While there has been a lot of attention on the emerging offshore wind sector, a new market analysis from the American Clear Power Association (ACP) illustrates how far behind the United States is in comparison to not only global economies but small countries including Vietnam and Taiwan. The trade group for the clean power industry illustrates that while the U.S. currently lags in the global offshore wind market, the pipeline for projects is growing rapidly with more than 51 GW already identified and the scoping process continuing.
According to the report, the United States currently ranks tenth based on global installed offshore wind capacity with a paltry 42 MW of offshore wind capacity online. That’s less than five percent of the capacity of Vietnam and 0.0013 percent of the capacity of world leader China. China has over 31 GW of installed wind capacity having flown past the UK which is at approximately 14 GW installed. Other leaders are Germany, the Netherlands, Denmark, and Belgium.
Yet, while the U.S. is far behind on installed capacity, the pipeline is swelling quickly according to ACP. They calculate the total capacity of identified projects that have completed at least initial leases is nearly 51.4 GW. The U.S. has 32 leases in active development with two projects with 948 MW of capacity under construction in federal waters, Avangrid and Copenhagen Infrastructure Partners’ 816 MW Vineyard Wind 1 and Ørsted and Eversource’s 132 MW South Fork Wind Farm.
Most of the U.S. pipeline remains in the development stage with 18 projects in advanced stages which include signing offtake agreements or proceeding with equipment orders. These projects will add more than 16.5 GW while there are an additional 18 projects with the capacity for nearly 33.9 GW in early-stage development. Those projects have completed leases and are starting the permitting and agreements process.
”The rapid growth in the U.S. offshore wind pipeline reflects strong federal and state government commitment to clean energy expansion and the industry’s response to these goals,” said John Hensley, VP of Research & Analytics for ACP.
Most of the current capacity in development the report says will start to come online in 2026 and beyond. They highlight the Biden Administration's goal of 30 GW of installed capacity by 2030 noting that the Bureau of Ocean Energy Management (BOEM) is continuing to pursue its Path Forward launched in 2021. The current timeline calls for lease auctions in the Gulf of Mexico, Central Atlantic, and off the coast of Oregon all in 2023, and the Gulf of Maine in 2024.
The trade group also highlights the broader economic benefits from the emerging industry. In total, they calculate that more than 30 new or refit vessels have been ordered or under construction at U.S. shipyards, with more in the pipeline. While Dominion Energy’s Charybdis wind turbine installation vessel is the sole installation vessel, orders have been placed for support vessels including a subsea rock installation vessel. ACP also highlights to meet the Jones Act requirements there are plans to build vessels for feeder installation strategies.
The report calculates that there are at least 21 known crew transfer vessels that have been ordered or are already under construction in the U.S., with one existing vessel retrofit to serve as a CTV. Additionally, there are three service operation vessels (SOVs) ordered or under construction with three more existing vessels being retrofitted as SOVs to serve the U.S. offshore wind industry.
In the components supply chain, there are currently two cable facilities and one offshore substation facility in operation. Fourteen additional facilities have been announced or are under construction.
Hensley added, “While the U.S. offshore wind industry is making tremendous strides, it’s essential to address the challenges to ensure the long-term economic viability of these projects. A strong, collaborative approach between industry stakeholders and government bodies will help us tackle obstacles – like clarifying permitting processes – and realize the full potential of offshore wind as a key component of our clean energy future.”
The ACP highlights that project costs are rising due to supply chain disruptions, commodity price increases, macroeconomic inflationary pressures, and higher interest rates. Rising steel prices in particular pose challenges for offshore wind developers the group says highlighting that steel represents a significant portion of project material costs. Lengthy and unclear permitting and regulatory timelines make issues worse the report highlights. Resolution of these permitting and siting challenges, alongside improving economic conditions, would strengthen the economic viability of offshore wind projects concludes the ACP.
The report concludes that the industry is making strong progress and with its current pipeline has the potential to power more than 20 million homes. They also point to the strong economic contributions while cautioning that more has to be done to realize the potential that is in the pipeline and maintain the momentum.
The Cost of Crime and Corruption for Pacific Fisheries
Chinese maritime militia vessels at Whitsun Reef, March 2021 (Image courtesy Armed Forces of the Philippines)
The Pacific Ocean is the most abundant fishing region, however an uptick in illegal, unreported and unregulated (IUU) fishing around the islands means that might not always be true. Pacific tuna fisheries – a staple food and valuable economic source within and beyond the region – saw an estimated 192,186 tonnes, valued at $333.5 million fished illegally between 2017 and 2019, and the problem is growing. Worse, climate change further affects at least 41 per cent of already threatened marine species, according to the International Union for Conservation of Nature, the governing body for protected species.
Globally, estimates suggest that in 2020 we each consumed 20.2 kilograms of seafood. That number is expected to rise, acknowledging the health benefits, income growth, technological advancements, as well as seafood-dependent communities. Clearly, fisheries are a natural resource that requires protection from illegal activity.
Despite efforts to raise awareness of IUU fishing globally and regionally within the Pacific, and curb it, a solution remains elusive. The recent case involving alleged corruption in the mackerel fishing industry of Vanuatu highlights the need to continue conversation and limit the opportunity for illegal and unsustainable fishing practices.
Corruption within fisheries is no doubt a contributory factor in enabling private operators to exceed and undercut available fishing quotas. This also limits potential income for the state. A zero-tolerance approach to corruption among fisheries decisionmakers is central. What is alleged in the Vanuatu case is unlikely to be unique among other small island developing states, particularly those adjacent to rich fishing grounds. Indeed, corruption is an issue across the Pacific Islands region, according to Transparency International’s 2022 Corruption Perception Index.
There is a need to resist acceptance of a culture of corruption as the standard operating procedure, particularly within fisheries, and instead ensure transparent and sustainable contractual arrangements with private operators that benefit the government and people of today, and into the future. Tolerating corruption comes at a cost.
Fish know no sovereign boundaries and freely migrate across national and international borders. Therefore, the international role in responding to IUU fishing needs to be clarified and bolstered, rather than relying on optional recommendations which are clearly not having enough impact. Otherwise, the incentive to adopt and enforce obligations is unlikely to take hold.
Logical action for protecting species from overfishing rests with a collective, regional approach. Geographic and species-focused regional fisheries management organisations span about 90 per cent of all oceans and collaborate relating to specific fisheries stock management to ensure the long-term conservation and sustainability of these fisheries. However, greater collaboration between regional states is also relevant and necessary for monitoring and enforcement strategies aligning the specific states, particularly when fished in national borders.
A collective response directly aligns with the original intention of Article 1 of the UN Charter, while recognising state’s freedom to fish under Article 116 of the UN Convention on the Law of the Sea. More recently, the UN sustainable development goals require IUU fishing to be addressed as a matter of urgency via goal 14, and encourages anti-corruption approaches and strengthened international collaborative responses via goal 16. The latest addition to the international legal landscape is the High Seas Treaty, agreed to in March this year, which promises to deliver greater protection over the high seas. This valuable addition will, however, take time to enter into force.
The UN Convention against Corruption has one of the highest number of parties of all international treaties, indicating global condemnation for corruption. International collaboration, particularly as it relates to corruption, is necessary in response to IUU fishing in international waters, in regions where there is an abundance of fish, corruption tolerance and limited law enforcement capacity to effectively monitor catches, and reliance on fishing to support GDP.
Regional collaboration supporting monitoring and enforcement efforts is critical, as highlighted in an AP4D report released in April 2023. Australia has an important role in strengthening collaboration across the Pacific region networks, which will no doubt impact on the Australian consumer. Advancements in monitoring technology, law enforcement training, and testing capabilities on landed catches will all limit the opportunity for IUU fishing to go unnoticed. The importance of competent and well-funded response to IUU fishing has never been greater.
Dr Jade Lindley is a criminologist based at The University of Western Australia Law School and Oceans Institute. Her research focuses on various transnational crimes and their intersection with international law. Jade is particularly interested in the criminal motivations to conduct transnational crimes, particularly in the environmental crime and maritime security space, and international responses to control these crimes.
This article appears courtesy of The Lowy Interpreter and may be found in its original form here.
Video: USCG Medevacs Burn Victim From Bulker off North Carolina
On Wednesday, the U.S. Coast Guard medevaced a bulker crewmember who had sustained serious burns in an onboard accident.
The 60,000 dwt PRT Ace was drifting off the coast of North Carolina after a voyage from Cartagena, Colombia. On Wednesday, Watchstanders with Coast Guard 5th District received a request for help from the Ace's crew, who reported that a 29-year-old crewmember had been accidentally burned while using the ship’s incinerator.
The PRT Ace was located about 150 nautical miles east of Morehead City, North Carolina. 5th District's watchstanders launched a Coast Guard Air Station Elizabeth City helicopter crew and an HC-130 Hercules airplane crew, and asked the crew of PRT Ace to change course and head for Morehead City.
The helicopter crew arrived on scene and safely hoisted aboard the injured crewmember. Video from the rescue suggests that the victim sustained burns to both arms. The aircrew took him to Norfolk Sentara Hospital for further medical care.
PRT Ace is a 2014-built bulker operated by a Japanese firm. In January, port state control inspectors in the Netherlands cited her for five deficiencies, including problems with a fixed firefighting installation and ISM-related issues, according to her Equasis record.
Oil Suspected from Pablo Wreck Washes Ashore in Indonesia
Oil has begun to wash up hundreds of miles away in Indonesia that is suspected of coming from the wreck of the Pablo (MMEA photo)
Days after the fire that heavily damaged the tanker Pablo in the waters near the off Malaysia officials are now reporting widespread pollution which they believe is coming from the hulk. Indonesian officials are reporting that they have begun to investigate the sources while Malaysia said so far it has remained too dangerous to board the burnt-out tanker.
The fire began mid-day on Monday as the Pablo (96,773 dwt) was traveling in ballast reportedly to Singapore from China. Subsequent investigations have uncovered that the vessel was part of the so-called “shadow fleet” working to avoid sanctions primarily on Iranian oil exports. Some reports suggest the Pablo was preparing for a ship-to-ship transfer receiving Iranian oil destined for China when the fire destroyed the tanker.
The Royal Malaysian Navy’s KD Pendekar and the MV Polaris of the Marine Department continue to stand by the wreck. The Marine Department reports their vessel had carried out water-spraying operations on the hull to cool the wreck. Conditions however have prevented the Hazardous Materials Special Team from the Fire and Rescue Department to begin their operations. They were scheduled to inspect the hulk for contamination and search for three crewmembers that continue to be missing.
The Malaysian Maritime Enforcement Agency reports that it is continuing to search the waters for the missing crew covering an area of 393 square nautical miles. They said modeling showed that the crew could have been carried into Tanjung Pinang waters in Indonesia. They have requested help from Indonesia’s Search and Rescue National Agency (BASARNAS) to search Indonesia waters.
Starting Wednesday morning, May 3, officials in Batam, Indonesia on the south side of the Singapore Strait report that large amounts of oil have begun to wash up on their beaches and foul fishing areas. So far, they are reporting removing four tons of black oil waste from the beaches of Batam. The police said the pollution has centered on three locations in the eastern region with an estimated spill area of over five square miles.
The head of the special crimes unit in the Riau Islands told reporters that based on satellite data they believe the oil is coming from the wreck of the Pablo. Fishermen complaining about the pollution said that Batam is frequently contaminated with oil from passing vessels.
Indonesia's Environment and Forestry Ministry reports it is taking samples of the oil to determine where the waste is coming from. At the same time, they are using trucks to remove the oil and store it in drums and sacks for further investigation.
The Pablo’s fuel tanks were ripped open by a series of explosions during the fire. Images show large sections of the deck being blown into the air and hanging over the side of the vessel. In the aftermath, pictures show the tanks are ripped open although there have not been reports of significant breaches to the hull.
International Court Convenes as Heroic Idun Crew Awaits Release
Crew of the Heroic Idun continues to wait for their release in Nigeria (All India Seafarers Union file photo)
The Nigerian Navy issued a statement confirming that a plea deal has been struck for the release of the crew of the tanker Heroic Idun while also denying media reports that the crew has been released. The Navy is emphasizing that there are pre-conditions on the release. This came out as it was also reported that the Marshall Islands as the flag state for the tanker has again sought the assistance of the International Tribunal for the Law of the Sea to resolve the dispute.
Giving an update on the trial at the Federal High Court in Port Harcourt, naval spokesman Commodore Ayo Vaughan said, “The plea bargain was in the interest of justice, the public, and for public policy interest.” He, however, noted that the release of the ship is subject to the fulfillment of all conditions of the plea bargain to the satisfaction of the court. The statement dated May 3 says, “The online reports and stories of the release of the vessel are thus false, mischievous, and misleading.”
The Nigeria Navy reiterated its claims that the Heroic Idun (300,000 dwt) had entered Nigeria on August 7, 2022, and headed for the Akpo Field without any form of authorization or clearance, an accusation firmly denied by the vessel’s owner Ray Car Carriers and BP which had the vessel under charter. The Nigerian Navy contends the captain of the tanker initially responded to the Nigerian Navy ship Gongola but later failed to respond to an order to proceed to the Bonny Anchorage to await paperwork. Days later, the vessel was detained in neighboring Equatorial Guinea and ordered to return to Nigeria on November 12, 2022, to stand trial. The plea deal was announced on April 28 in the court.
The International Tribunal reports that the Marshall Islands and Equatorial Guinea had reached an earlier agreement on April 18 after discussions with their representatives in Hamburg, Germany. Both sides agreed to submit the dispute to a special chamber of the Tribunal made up of the president and four judges. The order for the special chamber hearing was entered on April 27, the day before the court hearing in Nigeria, and was announced by the tribunal on May 2.
It was the second time the Marshall Islands sought the aid of the tribunal, which was established by the United Nations as an independent judicial body to adjudicate disputes arising from the Third United Nations Convention on the Law of the Sea adopted in December 1982. The tribunal is rarely invoked, with the previous case having been in 2020 between Switzerland and Nigeria over the detention of the tanker San Padre Pio and before that to settle disputes concerning the delimitation of maritime boundaries.
In November 2022, the tribunal agree to hear a case calling for the immediate release of the vessel. The case was later withdrawn after the vessel was transferred to Nigeria. The new special chamber will be formed to hear the dispute concerning the Heroic Idun and her crew. The Marshall Islands previously argued that Equatorial Guinea had illegally detained the vessel and its crew.
Commodore Ayo-Vaughan, Director of Information for the Nigerian Navy, laid out the conditions that they believe must be met before the vessel and crew are released. He said after acceptance of the plea bargain and after the conviction and sentencing by the court, the Heroic Idun and its owners are to pay fines to the Federal Government. In addition, they need to make an apology to the Nigerian Government in print and electronic media, including Lloyd’s List.
In turn for accepting the plea bargain, Nigeria agreed not to further criminally prosecute and/or investigate the vessel, her owners, charters, or her crew in the matter of her crime against the state.
No timing was announced when the release might be completed. At the same time, the Nigerian Navy said it will continue to “sustain a posture of zero tolerance to crude oil theft and other criminal activities.”
New Zealand will undertake a review of the risks and benefits of seabed mining and whether domestic regulation is needed, the government announced on Friday.
Environment Minister David Parker said there was a range of strong views on seabed mining and a review would give New Zealanders a say on the issue.
“Concerns about the environmental impacts of seabed mining need to be considered, along with the potential role that minerals recovered by seabed mining could play in New Zealand’s transition to a decarbonised economy,” Parker said in a statement.
Seabed mining is allowed in New Zealand but it has to be approved by the Environmental Protection Agency. Although three projects have been proposed to the agency none has been given final clearance.
An increasingly contentious debate is happening over whether the world’s seabeds should be mined for nickel and other green energy transition minerals.
Last October, New Zealand backed a conditional moratorium on seabed mining in areas beyond national jurisdiction.
“New Zealand’s international position does not require the government to change its domestic approach to seabed mining. But having backed a conditional moratorium, it is timely to examine our own regulatory settings,” Parker said.
Feedback and inquiry findings from the review would inform any regulatory changes, the government said.
A new joint EU-UK project is seeking to develop retrofit carbon capture solutions to be used onboard in-service ships. The initiative, the Green Marine Project, is being led by the Cyprus Marine & Maritime Institute (CMMI) and brings together 10 partners from industry and academia from all over Europe and UK. The University of Strathclyde’s Department of Naval Architecture is leading the project’s research component.
The Green Marine team intends to develop and validate retrofitting protocol tools suitable for adapting engines, flue gas carbon capture, and an integrated energy-saving solutions for ships worldwide. The team proposes to develop a nano-particle suitable for gaseous streams to allow free-air reuse in enclosed areas resulting in savings on HVAC (Heating, Ventilation, and Air-conditioning) energy use. Utilizing such a pre-treatment technology, the team believes, will help to reduce OPEX costs of carbon capture technologies in flue gas streams.
In the first phase of the project, they plan to demonstrate the system onboard vessels operated by Caledonian MacBrayne (CalMac), the UK's largest ferry operator. They did not specify which of CalMac 33 vessels would be involved in this first phase of proof of concept tests. There is also a plan to replicate the project’s learnings to the larger global marine community of shipowners, shipyards, and equipment providers. To aid shipowners in their decision-making, the team reports it will also develop a software catalog that gathers knowledge on a vessel’s fuel efficiency.
“If we can develop solutions that can capture carbon emissions, we can accelerate the climate neutrality of existing fleets,” said Dr. Iraklis Lazakis, the Green Marine Project lead from Strathclyde University.
They illustrate the importance of the project by highlighting that existing, in-service vessels represent 13 percent of the total European transport carbon emissions. They could represent a critical part of the ongoing shipping decarbonization efforts.
In a new study by the Lloyd’s Register, the technology readiness level of onboard carbon capture, utilization, and storage was found to be high in the shipping industry. This compares with just a few years ago when experts doubted that carbon capture would be a viable technology on ships. The Lloyd’s report suggests the advancements could in part be attributed to the development and usage of carbon capture technology outside the maritime sector.
Meanwhile, the report highlighted several key gaps hindering the effective deployment of carbon capture technologies. The most critical one is the standardization of safety and operational procedures used in offloading liquefied CO2 from the carbon capture process. Additionally, regulations need to be updated to address some practical challenges, including carbon accounting and aligning onboard capture with MARPOL regulations.
The Green Marine Project is expected to run until January 2027. The EU and the UK are providing nearly $5.5 million in funding for the research.
