The United States on Friday imposed new sanctions following North Korea’s latest missile launches this week, targeting a fuel procurement network that Washington said supports Pyongyang’s weapons programs and its military.

Friday’s action targeted two Singapore-registered companies and a Marshall Islands-registered firm, the U.S. Treasury Department said in a statement, as Washington seeks to hold North Korea accountable for ship-to-ship transfers that circumvent United Nations sanctions on the country.

“By designating these entities and individuals, the United States is sending a clear message that we will continue to take actions against those who support the development and sustainment of the DPRK’s military and weapons arsenal,” U.S. Secretary of State Antony Blinken said in a separate statement, referring to North Korea by the initials of its official name.

North Korea’s mission to the United Nations in New York did not immediately respond to a request for comment.

The sanctions came after North Korea fired an intermediate-range missile over Japan on Tuesday, which prompted joint South Korean and U.S. missile drills.

North Korea also fired two short-range ballistic missiles into the sea on Thursday in the direction of Japan, after the return of a U.S. aircraft carrier to the region and a U.N. Security Council meeting in response to the North’s recent launches.

Those launches were the sixth time in 12 days that North Korea has test fired ballistic missiles.

Decades of U.S.-led sanctions have not stemmed North Korea’s increasingly sophisticated missile and nuclear bomb programs, and North Korean leader Kim Jong Un has shown no interest in returning to a failed path of diplomacy he pursued with former U.S. President Donald Trump.

The United States accused China and Russia on Wednesday of enabling Kim by protecting Pyongyang from attempts to strengthen U.N. Security Council sanctions imposed over its nuclear weapons and ballistic missile programs.

The Treasury in the fresh sanctions on Friday said it targeted Singapore-based Kwek Kee Seng, Taiwan-based Chen Shih Huan and Marshall Islands-registered company New Eastern Shipping Co Ltd – which Treasury said also has an address in China and Singapore.

It accused them of being involved in the ownership or management of a vessel that has participated in several deliveries of refined petroleum to North Korea.

Washington said the vessel conducted ship-to-ship transfers with North Korean vessels and at least one direct delivery and said it engaged in “deceptive shipping practices.”

United Nations sanctions monitors have found that North Korea has repeatedly circumvented restrictions on trade of things like coal and oil, often through transfer from ship to ship at sea.

Also designated were Singapore-registered Anfasar Trading (S) Pte. Ltd. and Singapore-registered Swanseas Port Services Pte. Ltd. over their links to Kwek, Treasury said.

Swanseas Port Services and Anfasar Trading did not immediately respond to a request for comment on the sanctions on the companies or Kwek. Reuters could not immediately reach New Eastern Shipping for comment.

https://www.marinelink.com/news/us-sanctions-firms-transferring-oil-north-500051

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Produced volumes requiring transport key shuttle tanker markets Brazil, Canada, Norway, the U.K. and Russia are expected to rise to 3.3 billion barrels per year before the end of the decade, jumping 35% from 2.5 billion in 2021, according to a recent report from the Norwegian analyst group.

Apart from minor dips in total utilization across these countries in 2018 and 2021, shuttle tanker activity has increased year-on-year since 2013 and is set to grow further by a compound annual growth rate (CAGR) of 3.5% between 2021 and 2030.

“There is a need for a new influx of shuttle tankers to meet the increasing demand and replace some of the ageing capacity that will be taken out of service,” said Oddmund Føre, senior vice president of energy service research with Rystad Energy. “Crude oil extraction will continue for many years to come and, given the robust economics and competitiveness of the offshore industry, new investments in offshore production are likely to continue building, ensuring a bright future lies ahead for the shuttle tanker industry.”

(Image: Rystad Energy)

Shuttle tankers, typically used in locations where subsea pipelines are unviable, are crucial for moving liquids from wells to refineries and terminals. The North Sea was once the pioneer region and largest market for shuttle tankers due to its harsh environmental conditions and fragmented field structure, but the concept has been exported to other offshore areas with great success. Brazil is now the largest market for shuttle tankers due to its ultra-deep-water oilfields and will account for more than half the shuttle market demand from 2026.

The surge in offshore production in Brazil has seen a significant rise in the utilization of shuttle tankers, with activity soaring by 55% from 695 million barrels for 2013 to 1.07 billion in 2021, according to Rystad, which forecasts a further 72% increase by the end of 2030 when total volumes handled by shuttle tankers in the country will hit 1.84 billion barrels.

Despite being surpassed by Brazil, Norway and the U.K. remain significant players in the shuttle tanker market. Norwegian shuttle tankers handled 763 million barrels in 2021, while counterparts in the U.K. handled 312 million. In comparison, Canadian shuttle tankers transported just 96 million barrels, and Russian shuttle tankers moved 213 million. However, the Russian market is set to experience steady declines over the next few years, falling by almost half to 122 million barrels by 2030.

Tracking the vessels
With nearly 100 vessels now in operation and a handful on order, the shuttle tanker market remains one of the smallest and most surveyable shipping market segments. Despite its small size, there are significant variations and differences across regional shuttle tanker markets. The North Sea and the Norwegian side of the Barents Sea have around 25 shuttle tankers in operation and comprise 25% of the global market. Although the North Sea market provides more diversification than other markets, Equinor and state-owned Petoro are responsible for over 35% of the volumes shuttled off oilfields.

The high standards and operational knowledge in the North Sea have helped other regions adopt the same infrastructure. Brazil is now the largest market with 40 vessels and three times the production of the North Sea. Unlike in the North Sea, however, Brazilian field operators have developed their form of regulation without authorities playing an active role. Knutsen NYK Offshore Tankers (KNOT) and Altera Infrastructure are two of the main shuttle tanker owners operating in Brazil with decades of experience operating vessels in the North Sea, helping create continuity and efficient operations in Brazil’s deep waters. The Brazilian market is less diversified, with Petrobras handling 70% of offshore shuttle tanker production with vessels that are either chartered by the Brazilian state giant itself or international operators. While international companies must leave Brazil every 90th day to meet local content regulations, Petrobras can operate more efficiently with significantly more trips per vessel than its in
ternational competitors.

In Russia, the shuttle tanker market is the same size as the North Sea but is divided into the Arctic Russia and Far East Russia markets. The former is focused on shuttling from Arctic oilfields to Murmansk, with the latter shuttling crude and condensate from the Sakhalin fields to the Asian market. Due to the relatively light-weight class of Russian shuttle tankers and the fact that they are ice-classed, there tends to be a higher vessel intensity per barrel produced in the region than in other markets.

Looking ahead
Rystad expects the North Sea will be a crucial driver for increased activity as a new investment spree follows the Norwegian government’s tax regime, introduced in mid-2020, which is aimed at incentivizing sanctioning activity to be filed by the end of 2022. Brazil has also been vocal about its ambitions to become more energy independent, with many wells to be drilled by 2030. In addition, Rystad noted a growing number of international players are entering the stage in Brazil with their stake in crude oil production. This trend alone will drive shuttle tanker demand upward as the vessel intensity per barrel produced is higher than local leader Petrobras.

Source: www.marinelink.com

Image: www.pexels.com

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