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Update

Pasha Hawaii

orders LNG duo from Keppel AmFELS Honolulu-based Pasha Hawaii has

selected Keppel AmFELS shipyard, Brownsville, TX, to build two new LNG-fueled Jones Act containerships, with an option to order two additional vessels—the vessels will be the first LNG containerships in Pasha Hawaii’s fleet. The two-ship contract, worth $400 million, will result in the delivery of two 774 ft, 2,525 TEUs ships by 2020. “This contract with Keppel allows Pasha Hawaii to continue to move forward in our commitment to providing the best resources possible for our customers and Hawaii’s shipping industry, while minimizing our environmental footprint,” says George Pasha, IV, President and CEO of The Pasha

Group. “We are proud supporters of the Jones Act and look forward to working with Keppel’s team of highly skilled shipbuilders.” “We are pleased that Pasha has chosen us to build their first two LNG fueled containerships to our innovative design,” said Simon Lee, President of Keppel AmFELS. “Keppel O&M is at the forefront of designing vessels that run on LNG propulsion systems and has the experience in LNG vessel conversions as well as the expertise in newbuild specialized vessels.” The U.S.-flag ships will have a fully laden capacity of 500 45-foot containers, 400 refrigerated containers and 300 40-ft dry containers. Each ship will have a service speed of 23 knots.

Fat Leonard Case: The Guilty Pleas Pile Up THE ONGOING saga, known in Navy circles as the Fat Leonard Affair, has once again resulted in a prison sentence. Last month, two former executives of foreign defense contractor Glenn Defense Marine Asia (GDMA) were sentenced to prison terms for their part in the years-long corruption and fraud scheme. Neil Peterson, former Vice President of Global Operations for GDMA, and Linda Raja, GDMA’s General Manager for Singapore, Australia and the Pacific Isles, were sentenced to 70 and 46 months, respectively. Both were arrested at the request of the U.S. government by authorities in Singapore and were extradited last October. Each pleaded guilty to one count of conspiracy to defraud the U.S. with respect to claims. 8 Marine Log // September 2017

Peterson and Raja admitted that they and other members of the GDMA management team knowingly created and approved fictitious port authorities with fraudulently inflated port tariff rates, and approved the presentation of such fraudulent documents to the U.S. Navy. This resulted in GDMA charging the U.S. Navy inflated prices. The two admitted that, as a result of the scheme, the losses to the U.S. Navy exceeded $34,800,000. But, GDMA employees weren’t the only ones involved in the scheme. Several U.S. Navy officers, too, played a role. Most recently, an active-duty U.S. Navy Commander, Bobby Pitts, pleaded guilty for his role in the case—one count of conspiracy to defraud the U.S.

BIZ NOTES Total to acquire Maersk Oil in multibillion dollar deal TOTAL sA has acquired 100% of the equity of the E&P company Maersk Oil & gas A/S (Maersk Oil), a wholly owned subsidiary of A.P. Møller – Maersk in a share and debt transaction valued at a total of $7.45 billion. Under the deal, A.P. Møller – Maersk will receive a consideration of $4.95 billion in Total shares and Total will assume $2.5 billion in Maersk Oil’s debt. Total will issue A.P. Møller – Maersk 97.5 million shares based on the average Total share price on the 20 business days prior to the August 21 signing. Total has also offered a possible seat on its Board of Directors. A.P. Møller – Maersk says the deal brings it another step closer to creating an integrated transport and logistics company by separating out its oil-related activities. Patrick Pouyanne, Chairman and CEO of Total says the move will give the company “strong production profiles in the UK, Norway and Denmark, thus increasing exposure to conventional assets in OECD countries.”

Marine Log September 2017