Energy

Saudi Aramco, Total to go ahead with new refinery

State oil giant Saudi Aramco and France's Total have decided to go ahead with plans to build a new 400,000 barrels per day (bpd) refinery in Saudi Arabia, Aramco and Total said in a joint statement.

The plant is one of four that the world's top oil exporter aims to build to boost domestic refining capacity by as much as 1.6 million bpd from 2.1 million bpd. The refinery on the Gulf coast at Jubail will start up at the end of 2012, the companies said.

Oman secures Iranian gas supplies

Oman has secured at least 1 billion cubic feet per day (10.4 billion cubic metres per year) of Iranian gas by signing up to develop the Kish gas field in southern Iran. It is undertaking to develop the field under a buyback deal with a still-to-be identified Asian strategic partner, sweetened by a 25-year gas supply arrangement, Omani sources said.

Topaz to acquire Doha Marine Services for QR450m

Topaz Energy and Marine Ltd. (Topaz), a subsidiary of Renaissance Services SAOG Oman, has made a dramatic entry into the buoyant hydrocarbon market in Qatar.

With the acquisition of the Doha Marine Services (DMS) fleet of 14 owned and managed vessels, Topaz has added 4 of its own vessels into Qatar to corner an impressive 18 percent of the Offshore Marine Services sector in Qatar. The entire transaction is valued at just over QR 450m (US$124 million) and will be concluded in phases in compliance with the regulatory processes prevalent in Qatar.

Saudis give Morocco US$500m for oil price shock

Saudi Arabia has granted Morocco, its staunchest ally in the Maghreb, US$500 million to help it weather the shock of oil price increases, the government in Rabat said earlier this month.

Oil prices forecast to hit US$200 per barrel in two years

Petroleum prices hit an all-time peak of US$126 per barrel on May 13. At the same time, tensions in US and Venezuelan relations—the latter being a major oil supplier to the US and many other world countries—is further exacerbating concern in international oil markets, observed Goldman Sach's Energy Bulletin.

Iraq asks oil majors to submit contract proposals; boosts refining capacity

Iraq's Ministry of Oil has asked major international oil companies to submit their final contract proposals to boost production at the country's largest oil fields after several rounds of talks in Amman on six contracts worth a combined total of US$3 billion.

Technical talks between Iraqi oil officials and senior executives from Royal Dutch ShellRoyal Dutch Shell, BP, Exxon Mobil, Chevron, France's Total, Anadarko Petroleum and BHP Billiton Ltd. were concluded in Amman this month.

DME to launch cash-settled Brent, Oman futures June 2

The Dubai Mercantile Exchange (DME) will launch two cash-settled crude futures contracts next month, hoping to attract more financial players who have so far stayed away from the first Oman futures, physically-delivered, contract.

The new contracts for Brent and Oman crude will start on June 2, a year after the DME launched its first Oman crude futures contract, the first such sour crude contract to remain actively traded a year after its launch.

NoozzVIEW; Clinton threat to OPEC

Only days after sending shock waves through the Middle East by threatening to “obliterate” Iran in the event of any attack from it on Israel, Democratic presidential hopeful Hillary Clinton has vowed to dismantle OPEC, the 13-strong oil producer's cartel – of which Iran is a leading member.

Dolphin Energy ready to launch US$4bn gas installations

Dolphin Energy Co. confirmed completing preparations to launch its US$4 billion natural gas installation at Ras Laffan.

The Dolphin project aims to pump 2 billion cubic feet of natural gas per day from Qatar to the UAE via a 370-kilometre underwater pipeline stretching from Ras Laffan (in Qatar) to Al Tuwailah (in the UAE).

Kuwait's KNPC awards US$2bn plant order to SK Construction

State refiner Kuwait National Petroleum Co (KNPC) has awarded a US$2.06 billion refinery plant order to South Korea's SK Engineering and Construction Co Ltd, the South Korean company said.

The construction is part of an US$8.3 billion project to build a large refinery with daily production of 615,000 barrels in Al-Zour on the Persian Gulf, unlisted SK Engineering said in a statement.

Kuwait, US Excelerate sign LNG facility deal

Kuwait said it signed a US$150 million contract with US Excelerate Energy to build import facilities for liquefied natural gas (LNG) for completion by April 2009.

Kuwait is short of gas for power generation during the peak period of electricity demand in the summer, when the country often suffers from blackouts. The country plans to begin LNG imports next summer to help plug the shortfall.

JGC picked to build Mideast's biggest oil plant in Kuwait

JGC Corp. said that its alliance has been awarded a project in Kuwait to construct the largest oil production plant in the Middle East.

JGC and South Korean firm GS Engineering & Construction Corp. will jointly build crude oil distillation and desulfurization facilities for about 400 billion yen (US$3.9 billion) by 2012. JGC's share of the contract is expected to top 200 billion yen. The two partners will soon sign the contract with the Kuwait National Petroleum Co.

Egypt: Energy outlook

The Egyptian government has approved a rise in fuel prices, enacting a set of tax and duty increases for energy products such as natural gas, petrol and diesel, part of the country's move away from heavily subsidised energy.

Following President Hosni Mubarak's decision at the end of April to ease the strain of rising food prices by increasing public sector salaries by 30 percent, the government is looking to raise additional funds to help cover the additional US$2.3 billion strain on the budget.

Ithmaar Bank launches US$1bn fund

Bahrain-based investment bank, Ithmaar Bank has signed a partnership agreement with the Kazakh government to set up a US$1 billion energy fund for the country. According to senior market sources, the deal will act as the catalyst for capital investment of up to US$10 billion.

The Ithmaar Kazyna CIS Energy Fund with Kazyna Capital Management, a subsidiary of Kazakhstan's Sustainable Fund, Kazyna, will have a term of ten years and target Kazakhstan's and the Commonwealth of Independent States' soaring demand for investment energy.