Energy

News Analysis: Will GECF become an emerging gas OPEC?

With its charter adopted and headquarters located during this month's high-level meeting in Moscow, the Gas Exporting Countries Forum (GECF) is apparently evolving towards a formal organisation that Russian leadership has proposed but some others worried. Founded in Tehran in 2001, the now 15-member GECF groups Russia, Iran, Qatar and other leading gas producers, which account for some 77 percent of the world's gas reserves and 48 percent of production. The forum's role was strengthened this year as Russia, the world's largest gas producer, intensified its efforts to tap energy globally and revealed its increasing interest on the potential price-control structure similar to the Organization of Petroleum Exporting Countries (OPEC) while denying it will be a gas cartel.

Kuwaiti company strikes gas in Texas

Kuwaiti oil and gas producer Aref Energy says it has found close to five trillion cubic feet of recoverable natural gas in south-central Texas. The company said that results of a survey of its joint venture operation in DeWitt County found that about 25 per cent, or 4.75 trillion cubic feet, of the roughly 19 trillion cubic feet of gas in the concession was available for production. The statement did not name the company's partners, who hold the remaining 50 per cent stake.

UAE to host region's first biodiesel plant

The first UAE-based biodiesel plant in the GCC region will produce 3 million gallons annually of environmentally-friendlier diesel to power vehicles, drastically reducing greenhouse gas emission due to its less toxic content, by next year. Biodiesel is made from a variety of organic sources such as vegetable oils, inedible oils and other biomass and can be blended with petrodiesel by up to 20 per cent for use in vehicles without any alteration to the engine.

Kuwait may delay some oil projects after price plunge

OPEC member Kuwait may delay some planned investments in the oil sector in light of the sharp drop in crude prices but will keep the main plans intact, Oil Minister Mohammad al-Olaim said. "We are in the process of assessing our (long-term) plan ... there could be some rescheduling of certain projects ... but we will keep the (main) goals," the minister told a press conference. Kuwait said at the start of the year that it had earmarked US$55 billion for investment over the next five years in the energy sector, including raising production capacity and building a new refinery.

Kurdish oil set for export via pipeline

The first oil from fields in the Kurdish region of northern Iraq--DNO's Tawke and Addax's Taq Taq--is set to be exported via the Kirkuk-Ceyhan pipeline, Iraqi officials said this month. The pending flows follow news last week that Baghdad has approved plans by the two companies to build pipeline spurs tying their fields into the main pipe, which runs to the Turkish Mediterranean. Exports could reach 50,000 barrels per day in the coming months, rising to 100,000 b/d later next year, according to Thamir Ghadhban, an adviser to Iraqi Prime Minister Nouri al-Maliki and a former oil minister.

NoozzVIEW; To Gas gamble pays off

The gamble taken by the newly-installed Emir of Qatar in the late 1990's to issue bonds to finance ambitious schemes to extract gas from the North Field, the world's largest reserve of non-associated gas, is about to pay off. According to Youssel Kamal, the finance minister, while the emirate's oil production this year is approaching 900,000 barrels-per-day and is a bigger revenue earner than gas, the situation is likely to charge in two years' time, with LNG moving into the premier position. Furthermore, its production next year should move ahead, topping 100,000 bpd.

UAE says agrees draft nuclear pact with US

The United Arab Emirates said it has agreed a draft pact with the United States for civilian nuclear cooperation, the first such deal between Washington and a Middle East nation. "The United Arab Emirates and the United States have completed their negotiations concerning signing a proposed draft of the civilian nuclear cooperation deal, a foreign ministry official said. The deal -- which comes even as the United States is spearheading a campaign against Iran's nuclear drive -- involves the exchange of nuclear materials and components for civilian use, he said.

Oman Oil Company boosts stake in MOL to 15.4pct

Oman Oil Company (OOC) announced it raised its stake in Hungarian oil and gas company MOL to 15.4 per cent on December 18th. MOL signed a strategic cooperation agreement with OOC in March under which it sold 8,774,040 shares -- equivalent to 8 per cent of the registered capital at the time, or 8.4 per cent following a 5 per cent capital reduction after the withdrawal of treasury shares in the spring -- at a price of US$145.43 per share to the company.

NoozzVIEW; Doubts over OPEC's influence

The apparent contradictory behaviour of the oil markets in the wake of OPEC's historic summit in the Algerian coastal city of Oran on Wednesday has raised fresh doubts about OPEC through supply control alone having the influence necessary to control the direction of the oil price at a time of world economic slowdown and other elements of financial turmoil. Thus despite the 13-strong oil producers' cartel agreeing to its biggest ever single cut to daily oil production 2.2 million barrels of crude , as opposed to the widely predicted cut of 2 million that many observers expected the price dropped below US$40 per barrel for the first time since 2004.

Qatargas launches one of the biggest laboratories in Qatar

Qatargas Operating Company this month celebrated the opening of a new state-of-the-art laboratory located at the campus of Qatargas in Ras Laffan. The new lab is built to manage the increased future project analysis requirements from the new expansion projects being completed at Qatargas. With 1600 m2 build-up area, it is one of the biggest labs in the oil and gas industry. It is divided into five major laboratories that can analyze; gas, petroleum, water, and sulfur. It is capable to meeting the many analysis requirements, especially those related to future expansion projects.

China, UAE offer to fund Brazil oil drilling

China and the United Arab Emirates have offered Brazil resources to fund production from its huge offshore oil fields, Energy Minister Edisao Lobao said in an interview. "China is offering Petrobras US$10 billion initially," Lobao said in response to a question about the Brazilian state-controlled oil company's investment plans amid the global credit crisis. "We also received a representative of a prince in the (United) Arab Emirates, which also want to invest in Petrobras," the energy minister said. Lobao said that to fund Petrobras's investment plans and pay for production from the pre-salt layer, Brazil has "several other alternatives," such as domestic loans, foreign loans, the government budget and the "possibility of using part of the country's foreign exchange reserves," which are estimated at around US$207 billion.