Energy

Egypt: Providing Syria with gas

A new pipeline to export gas to Syria has recently begun operations. Initially connecting Middle Eastern customers, the longer term aim is to reach European markets.

After completion of the final section of the pipeline on Syrian territory, Egyptian gas began to arrive at the Deir Ali electric power station, south of Damascus, on July 9th. The new line will provide the country with 88.3 million cubic feet (2.5 million cubic metres) of gas per day, eventually increasing to 212 million cubic feet (6 million cubic metres) per day over the next nine years, Sufian Allaw, Syria's petroleum and mineral resources minister told international media.

Turkey eyes Iraq oil fields, new energy projects in pipeline

A visit by the prime minister to Iraq paved the ground for a new era between Ankara and Baghdad, setting the ground for immense energy cooperation between the two countries as various agreements were reached.

A landmark consensus to secure Turkey's rights to Iraqi oil, which grants authorisation to the Turkish Petroleum Corporation, or TPAO, for oil exploration, drilling and marketing, was reached in a written document signed by the Iraqi oil minister at the last minute.

NoozzVIEW; Europe may get Iraqi gas

Only days after Iraqi energy experts revealed that oil and gas fields in the country’s western Anbar province may soon be pumping much-needed oil and gas to European markets, Iran was faced with the bleak prospect of the last major Western energy group to have seriously considered investing in the country’s huge gas reserves announcing that it was pulling out.

Christophe de Margerie, the head of Total said that it would be “too much of a political risk” to go ahead with the planned development of the huge South Pars gas field in Southern Iran. But in Iraq, the mood was very different. Assem Jehad, spokesman for the Ministry of Oil confirmed that an agreement has been signed between the EU and Baghdad to provide European countries with natural gas from the Akkas field.

Gulf's first step into Russian energy

World's decision to diversify into the Russian energy market with its joint takeover of OGK-1 is certainly a bold move.

The deal, worth over US$5 billion, requires DW to make an initial investment guarantee of US$100 million, on the basis that further funding for the full amount can be secured alongside Russian partner Roskommunenergo. The deal marks the first Gulf entry into the Russian energy sector, and some analysts in the GCC believe it could be the first of many, following former Russian President Vladimir Putin's efforts to strengthen ties with the region.

Saipem wins €1.6bn onshore contracts

Italy's Saipem SpA has won onshore contracts in Saudi Arabia and Nigeria totalling about €1.6 billion (US$2.51 billion), the oilfield services company said.

Saudi Aramco has awarded Saipem the lump sum turnkey contract for the first package of the Manifa Central Processing Facilities project. It is part of a programme aimed at increasing Saudi Arabia's production capacity by 900,000 barrels per day.

Russia Stroytransgaz wins UAE gas pipeline deal

Russia's Stroytransgaz has won a US$418 million contract to build a gas pipeline across the United Arab Emirates, the UAE's Dolphin Energy said in a statement.

Stroytransgaz beat Italy's oilfield services company Saipem and Greece's Consolidated Contractors International Co to the contract. Dolphin shortlisted the three companies for the contract to build the 240 kilometre (150 miles) pipeline earlier this month.

Libyan oil company, UAE group sign deal on refinery

The Libyan National Oil Corporation and the Star Alliance based in the UAE signed an agreement in Tripoli to set up a joint company with equal shares to improve the performance of Ras Lanuf refinery and upgrade its installations.

The two companies had signed, in the Libyan capital on January 7th this year, a general framework agreement for the creation of such a company. The volume of investment for this partnership is estimated at US$2 billion.

Iraq to limit no-bid oil contracts to one year

Iraq is planning to limit no-bid contracts being negotiated with several major oil companies to one year to avoid overlap with longer-term deals expected to be signed next June, said an unnamed senior Iraqi oil ministry official.

"We want to avoid any overlap in this process," the official said, adding the government will soon ask the oil companies to submit one-year proposals. Iraqi oil officials said earlier this month they had concluded talks with oil majors on six no-bid interim and short-term technical service contracts, or TSCs, and hoped to sign them in July this year.

Gulf countries will invest about US$200bn to boost energy output

Gulf Cooperation Council countries will be investing US$160 billion-US$200 billion to develop 14-20 energy projects, according to reports from the energy sector.

Dr Abdullah Al Amiri, chairman of the Emirates Energy Award, said that this amount would be invested "in the next 10-12 years to meet the increase in the Gulf energy consumption." He said most of the investment in UAE would be for erecting utility projects like power and district cooling plants, to meet the demands in energy consumption, especially in the construction business.

Saudi oil: A crude awakening on supply?

Saudi Arabia's ability to calm panicky oil markets has been waning for years. With oil prices doubling since last summer, to more than US$140 a barrel, Saudi King Abdullah on June 22nd convened an extraordinary meeting of OPEC members, international oil industry CEOs, and foreign leaders in an effort to calm the markets. The kingdom's message was clear: Saudi fields can pump oil to market quickly, if demand warrants.

However, it appears that for at least the next five years, and possibly longer, the Saudis are likely to produce less crude than promised.

News Analysis: Setback for oil majors

With oil around US$145 a barrel, the world is thirsty for increased production from the Middle East. But a substantial proportion of the region's reserves remain untapped as a result of ongoing political infighting.

According to the US Department of Energy, Iraq has untapped oil reserves of around 400 billion barrels. But hope is now diminishing that these huge reserves might begin to relieve some of the upward pressure on oil prices any time very soon.

Kuwait: Building capacity

Kuwait has announced plans to issue tenders next month to upgrade two of its three existing oil refineries, at a potential cost of US$15 billion. The news follows the award in May of a US$15 billion contract to an international consortium to build a fourth Kuwaiti refinery at Al Zour, taking the total planned investment in refinery capacity in coming years to US$30 billion.

Earlier this year, the government said that it intends to invest a total of US$51 billion over the next five years to increase both upstream and downstream capacity in its hydrocarbons sector. The concentration of almost three fifths of that investment on new downstream activities reflects both current global shortages in refinery capacity, and a shift in the types of oil Kuwait expects to be refining in coming years.

Abu Dhabi's Taqa buys Shell, Exxon North Sea interests

Abu Dhabi National Energy Co (Taqa) said it had bought northern North Sea equity interests from Shell and ExxonMobil as part of efforts to consolidate its presence in Europe.

"The announcement brings us one step closer to our stated strategy of building a global energy company, with an equal distribution of assets in North America, Europe and the Middle East," Taqa CEO Peter Barker-Homek said in a statement.