Delta Tankers finds no spill evidence: Update

Market: Crude oil, Freight
04/11/19

Adds details throughout.

The owner of the suspected culprit of a major late-July oil spill off the Brazilian coast said that its internal investigation found no evidence that the spill came from its tanker.

"There is no proof of the vessel having stopped, conducted any kind of ship-to-ship (STS) operation, oil leaked/spilled, slowed down or veered off course" on its passage from Venezuela to Malacca, Malaysia, Greece-based Delta Tankers said over the weekend.

Delta Tankers said it searched material from the ship's cameras and sensors and will share this material with Brazilian authorities, should they contact the company.

The firm denied on 2 November that it has been contacted by Brazilian authorities. Brazilian police had said it carried out a search at the Rio de Janeiro office of the owner of the targeted tanker. The police searches were later determined to have focused on the Rio offices of Lachmann Shipping Agency and Witt O'Brien's.

Lachmann said it was not the focus of the police investigation of the spill, but was only required to cooperate with investigators. "The agency is at the disposal of the authorities for any further information." Witt O'Brien's said Delta is not a client in Brazil.

In a televised broadcast yesterday, Brazilian president Jair Bolsonaro said all facts pointed to Delta Tankers' involvement in the spill that has reached more than 230 points along Brazil's northeastern coast and is now headed toward a coral reef. He warned the "worst is yet to come" in terms of the environmental impact.

In separate remarks today, Brazil's defense minister Fernando Azevedo e Silva described the spill as an unprecedented disaster. "This type of oil is not noticeable by radar, by satellite. We don't know how much is yet to come," he said. Brazilian authorities have previously identified the crude as extra-heavy grade from Venezuela. Caracas has denied any responsibility.

Brazilian police on 1 November pointed to the Suezmax Bouboulina, one of Delta Tankers' 30 crude vessels, as the source of the oil spill that the chief executive of Brazil-state controlled Petrobras has called the biggest environmental "attack" the country has ever experienced.

Two sources in Venezuela, one from state-owned PdV and the other from the oil union, say the tanker loaded 16°API Merey blend in mid-July on behalf of Rosneft, the Russian company that has emerged as the main lifter of Venezuelan crude since the US imposed oil sanctions on Caracas in late January. Shipping data shared with Argus confirms that the crude was lifted on behalf of Rosneft.

The Bouboulina is steaming east under the horn of Africa after loading a cargo in Nigeria, according to vessel tracking.

The spill has cast a shadow over what was expected to be a celebratory week for Brazil's oil industry. Brazil will offer up to 15bn bl of oil equivalent of excess reserves in the Santos basin cluster known as the Transfer of Rights (TOR) on 6 November and five pre-salt blocks in the Campos and Santos basins on 7 November. The government has said the spill will not interfere with the offers, but the high-profile nature of the incident has consumed much of the attention surrounding the industry.

Bolsonaro has hinted that the spill was intended to disrupt the TOR auction.

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20/12/24

US House votes to avert government shutdown

Washington, 20 December (Argus) — The US House of Representatives voted overwhelmingly today to extend funding for US federal government agencies and avoid a partial government shutdown. The Republican-controlled House, by a 366-34 vote, approved a measure that would maintain funding for the government at current levels until 14 March, deliver $10bn in agricultural aid and provide $100bn in disaster relief. Its passage was in doubt until voting began in the House at 5pm ET, following a chaotic intervention two days earlier by president-elect Donald Trump and his allies, including Tesla chief executive Elon Musk. The Democratic-led Senate is expected to approve the measure, and President Joe Biden has promised to sign it. Trump and Musk on 18 December derailed a spending deal House speaker Mike Johnson (R-Louisiana) had negotiated with Democratic lawmakers in the House and the Senate. Trump lobbied for a more streamlined version that would have suspended the ceiling on federal debt until 30 January 2027. But that version of the bill failed in the House on Thursday, because of opposition from 38 Republicans who bucked the preference of their party leader. Trump and Musk opposed the bipartisan spending package, contending that it would fund Democratic priorities, such as rebuilding the collapsed Francis Scott Key Bridge in Baltimore, Maryland. But doing away with that bill killed many other initiatives that his party members have advanced, including a provision authorizing year-round 15pc ethanol gasoline (E15) sales. Depending on the timing of the Senate action and the presidential signature, funding for US government agencies could lapse briefly beginning on Saturday. Key US agencies tasked with energy sector regulatory oversight and permitting activities have indicated that a brief shutdown would not significantly interfere with their operations. But the episode previews potential legislative disarray when Republicans take full control of Congress on 3 January and Trump returns to the White House on 20 January. Extending government funding beyond 14 March is likely to feature as an element in the Republicans' attempts to extend corporate tax cuts set to expire at the end of 2025, which is a key priority for Trump. The Republicans will have a 53-47 majority in the Senate next month, but their hold on the House will be even narrower than this year, at 219-215 initially. Trump has picked two House Republican members to serve in his administration, so the House Republican majority could briefly drop to 217-215 just as funding for the government would expire in mid-March. Congress will separately have to tackle the issue of raising the debt limit. Conservative advocacy group Economic Policy Innovation Center projects that US borrowing could reach that limit as early as June. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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US government agencies set to shut down

20/12/24

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20/12/24

US government agencies set to shut down

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Viewpoint: More changes for Dated crude benchmark ahead

20/12/24

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20/12/24

Viewpoint: More changes for Dated crude benchmark ahead

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Trump backs new deal to avoid shutdown: Update

19/12/24

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19/12/24

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US Congress passes waterways bill

19/12/24

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19/12/24

US Congress passes waterways bill

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