Energy

NoozzVIEW; Qatar to host gas group

Amid loud protestations that the new group is not modelled on OPEC and has no OPEC-style ambitions to control price, many of the world’s leading gas exporters have now overcome their differences and formed a formidable sounding organisation aimed at coordinating gas policy. Although Doha beat off strong competition from both St Petersburg and Tehran to become the world’s base for the new grouping, there is already concern among the main consumer nations as the creation of the group – which includes Russia, Iran, Qatar, Venezuela and Algeria, who between them control nearly two-thirds of the global gas reserves and 42 per cent of its total production – comes at a time when gas supply in Europe is in crisis over a dispute between Ukraine and Russia.

Eni, Nippon Oil, Repsol compete for Iraq oil contract

Italy's Eni SpA (E), Japan's Nippon Oil Corp. and Spain's Repsol YPF SA are competing for a contract to develop the Nassiriya oil field in southern Iraq, one of the world's vast oil fields, an authorised oil ministry spokesman said. "The ministry has asked the three companies to submit their bids to develop Nassiriya oil field," the spokesman said.

UAE fund to invest in Japan renewable energy firms

Abu Dhabi's Masdar, a clean energy venture, and Japan's SBI Holdings Inc may invest up to US$300 million in Japanese alternative energy start-ups through a joint investment fund, SBI said. Masdar's investment vehicle, the Masdar Clean Tech Fund, and SBI have agreed to each put up to US$10 million to create a first fund to invest in firms involved in solar, wind and other alternative energy, SBI officials said.

Kuwaiti firm forms ventures with Russia's Gazprom

An investment firm in Kuwait is forming a pair of joint venture companies with Russia's OAO Gazprom. Noor Financial Investment Co. will join with the Russian oil and gas giant's Gazprom Geofizika subsidiary to form one venture in Russia and another in Kuwait.

NoozzVIEW; Qatar looking to nuclear energy

At a sensitive time when one of the major issues facing the new American President, Barack Obama, is dealing with allegations that Iran is attempting to acquire nuclear weapons capability – claims flatly denied in Tehran – Qatar, the emirate which houses the main American military presence in the Gulf region, has announced that it is considering building a nuclear research reactor for peaceful purposes. The announcement from Doha comes soon after the UAE has unveiled details of a significant advancement in its own nuclear energy ambitions under a deal with the old Bush Administration that the new incumbent in the White House will soon have to confirm. Other Arab states at various stages in the regional nuclear race include Egypt, which is well-advanced.

Italy’s Edison partners with Egypt in US$3.2 billion offshore oil venture

Egypt’s Petroleum Minister Sameh Fahmy unveiled an agreement with energy heavyweight Edison allowing the Italian corporation access to develop the Abu Qir offshore oilfield. The US$3.2 billion joint investment venture brands Edison as a partner with the Egyptian government in developing the field under the production sharing system. Fahmy, who signed the agreement with Edison’s Chairman Umberto Quadrino, considered the deal to mirror multinational corporations’ confidence in social, economic and investment climate in Egypt, particularly in the petroleum sector.

Dubai to invest in Nigerian oil sector

Dubai said it has reached a deal with Nigeria to invest in the African nation's conflict-ravaged oil industry and other sectors of the economy. The agreement appears to be the first for a company the fast-growing Middle Eastern city-state set up last year to invest in natural resources in the developing world. Under the deal, Dubai Natural Resources World, a subsidiary of state-owned conglomerate Dubai World, would manage the development and output of Nigeria crude oil and gas reserves. Dubai World called the agreement "far reaching," but provided few details, including the financial terms.

Circle Oil strikes oil in Egypt concession

United Kingdom-based Circle Oil says it has struck oil at one of its appraisal wells near the Gulf of Suez Basin. Circle said the onshore well in the North West Gemsa Concession, located about 190 miles (300 kilometres) southeast of Cairo, tested at an average of 5,785 barrels of oil per day and 7.8 million standard cubic feet per day of natural gas. An assessment of the reserves has yet to be completed.

Bechtel wins nuclear power plant deal

The Ministry of Electricity and Energy of Egypt has disclosed that Bechtel Power has been contracted to design and consult on a nuclear power plant worth around E£1 billion (US$180 million). Egypt currently has a 22MW nuclear research reactor at Inshas in the Nile Delta, built by INVAP S.A. of Argentina; it began operations in 1997. Three other possible 600MW power station projects are also said to be in the pipeline.

South Korea Honam Petchem says Qatar JV delayed to 2013

A top executive at South Korea's Honam Petrochemical Corp said its US$2.6 billion joint venture with Qatar Petroleum will be delayed by a year to early 2013 due to the current slump in oil demand. "The joint project with QP is now on suspension and will be delayed by about a year," Chong Bum-shick, president of the firm, told reporters. The comment, which was the first official confirmation from Honam, was in line with previous reports that the project would be postponed to at least 2012. "We are reassessing the EPC (Engineering Procurement Construction) cost... we had initially planned this when oil prices were near US$150.00 a barrel and that's quite far off from now," Chong said.

PetroChina starts exploration of al-Ahdab oilfield in Iraq

PetroChina started to explore the al-Ahdab oilfield in Iraq this month in accordance with the US$3 billion contract, according to China's Ministry of Commerce (MOC). PetroChina announced signing a 23-year contract with Iraq on developing the al-Ahdab oilfield in November last year. The new move indicates that the cooperation has entered into material operation phase. The contract required PetroChina to adopt advanced and practical technology for oilfield exploration and build up a production capacity of 25,000 barrels per day in three years, and 115,000 barrels per day in six years.

Aramco, Total sign new Jubail refinery deal

Saudi Aramco and Total reaffirmed their resolve to complete the world-class Jubail refinery project that is designed to supply 400,000 barrels per day, the Saudi Press Agency said. "The two companies signed a new contract to implement the project," the official agency said, adding that the new refinery would begin operations at the end of 2012.