Ballast water convention: Worldwide updates

► Update 16th February 2007: Norway has announced that the ballast water exchange standards are expected to be in force at Norwegian ports by the end of this year (2007).

Norway intends to implement all the ballast water convention rules before the convention enters into force internationally. It is anticipated that:

□ ships will be expected to have ballast water management plans and ballast water record books covering ballast water exchange (end of 2007)
□ violations of the convention requirements may result in ships being detained or excluded from ports/offshore terminals or prevented from discharging ballast water
□ the Norwegian government will designate ballast exchange areas along the Norwegian coastline

Source: Wikborg Rein Shipping Offshore update

Wikborg Rein is one of Norway’s leading law firms with close to 150 lawyers in Oslo, Bergen, London, Singapore, Kobe, and Shanghai.

The IMO ballast water convention was adopted on 13th February 2004 and is expected to enter into force 12 months after ratification by 30 states representing 35% of the world merchant shipping tonnage.

The convention requires that ships meet a:
1. Ballast water exchange standard (Estimated entry into force: January 2009)
2. Ballast water performance standard

TEN Announces Charters for Tankers

New Charters Expected to Generate a Minimum of $42M in Gross Revenue Tsakos Energy Navigation Ltd. (TEN) announced the fixture of the 2006-built 1A ice-class Handysize product tanker Andromeda for three-years to an international trading house for a minimum rate and a 50:50 profit share if rates exceed that minimum.

Concurrently with this fixture, TEN concluded a three-year charter, to the same end-user and for the same terms, for the sister handysize vessel Aegeas which is expected to be delivered in April 2007 from Hyundai Mipo Dockyard in South Korea.

The charter of the Andromeda will commence in May 2007 while for the Aegeas immediately upon delivery. By earning just the minimum rate, the company expects to generate at least $42 million in gross revenues over the corresponding charter period.

Source: Marine

DNV Gets Half of All Middle East Shipbuilding Contracts

Risk manager for the oil and gas sector, Det Norske Veritas (DNV), has won more than half of all new shipbuilding contracts for owners in the Middle East and India, according to AB. The company will undertake 90 new-build projects in total, all of which are scheduled for delivery over the next two years. The orders, which bring DNV's total dead weight tonnage (DWT) on order to over 6.6 million, follow the delivery of 14 vessels in 2006, with a combined DWT of 1.24 million.

DNV is currently working on a number of new-build vessels in the Dubai DryDocks, including two of the biggest drilling rigs in the world and five tankers being converted to floating production, storage and offloading vessels (FPSOs). The company stressed the need for finance to support the offshore industry in the Middle East and called for better management of oil and gas firms.

DNV plans to set up a training academy in India for future employees, as well as for those working for ship owners. Grostad said this was essential, as finding qualified staff for newer industries, such as LNG, has proved difficult. DNV recorded annual growth figures for 2006 of 13%, with its AED 87 million maritime revenue contributing towards the AED 163 million achieved for all DNV businesses combined. As a result, the company plans to open new offices in Tehran, Oman, Abu Dhabi and Visakhapatnam in India, in addition to recently opened offices in Mumbai, Doha and Fujairah.

Source: AB