Energy

Saudi and Kuwait delay Hout oil field bids

Kuwait and Saudi Arabia have delayed until early September bidding for onshore and offshore gas work contracts at the Hout oil field, Reuters has reported, citing industry sources. The bid extension was widely expected, as contractors had asked for a delay of at least four weeks. The project involves building offshore gas gathering facilities, pipelines and onshore gas facilities. Contractors bidding for the onshore and offshore portions of the project can submit combined proposals. Source: Reuters

Algeria to deliver natural gas to power plants in Morocco

Morocco and Algeria signed a commercial contract on the delivery of Algerian natural gas to the power plants of Ain Béni Mathar and Tahaddart. Under this contract, 640 millions of cubic meters of gas will be delivered on an annual basis over 10 years. The gas will flow through the gazoduc Pedro Duran Farell (GPDF) pipeline linking Algeria’s gas fields to the Iberian peninsula through Morocco. The delivery will supply the Ain Beni Mathar power plants with 470 megawatts and Tahaddart with 385 megawatts. The contract was signed in Algiers by Director General of the National electricity utility (ONE) Ali Fassi Fihri and the CEO of Algerian state-owned hydrocarbon group Sonatrach, Nourredinne Cherouati. Source: Maghreb Arabe Presse

Two gas finds in Nile Delta and the Mediterranean

The Egyptian Natural Gas Holding Company (EGAS) announced two new gas finds in the Nile Delta and the Mediterranean. The 'South Abu El Naga-2' well in the Delta and the 'South el-Ameria-2' well in the Mediterranean host total recoverable reserves of 194 billion square feet, EGAS said in a report to Petroleum Minister Abdullah Ghorab. A recent report by Business Monitor International has forecast an increase in Egypt's production of natural gas from 66 to 95 billion cubic meters over the years between 2010 and 2020, recording a 43.93% rise. The report said the increase would secure the flow of foreign currency and ease the impact of the import bill, given Egypt's great potential for exporting gas. Source: Global Arab Network

Allied Petroleum signs Oman exploration deal

Canada-based Allied Petroleum Exploration has signed an exploration agreement with the Omani Oil and Gas Ministry for the exploration and production in the Sultanate. Under the terms of the agreement, the Canadian firm will explore for oil and gas at Block 36, located in the Governorate of Dhofar. Allied Petroleum Exploration is to perform a program that includes acquiring new seismic data along with reprocessing of old seismic data and drilling wells based on technical evaluations. Source: Oman Tribune

Qatargas eyes LNG supply deal with Vietnam

Qatargas, the world's leading LNG exporter, has said that it's currently negotiating to supply Vietnam with significant amounts of liquefied natural gas. The Vietnamese government has approved a plan to build a $1 billion LNG import terminal to handle 2-3 million tons a year, and Qatargas is keen to meet the south-east Asian country's growing need for power plant fuel. Source: Reuters

Iraq agrees $6.5bn Karbala refinery deal

The Iraqi oil ministry has signed an agreement with Refinery of Karbala Corp (RKC) for the construction of a new refinery at Karbala. The refinery will have a capacity of 200,000 barrels per day (bpd) of crude oil and will produce octane gasoline — both regular and premium — as well as diesel fuel for the domestic market. The processing and technical aspects of the project are to be handled by Italian engineering firm, Saipem. Source: Gulf News

IEA: Oil demand growth might freeze in 2012

The International Energy Agency has announced that global economic slowdown may stifle oil demand growth next year. The West's energy watchdog has warned that tightening supplies could still spur yet more oil price volatility. The International Energy Agency, adviser to industrialized nations on energy policy, has added that although it had not made big changes to its oil demand growth estimates for 2011 or 2012, its predictions were now at the mercy of the global economy's performance in the months to come. Source: Reuters

Egypt invests $1bn for drilling 60 oil, gas wells

Egypt’s Minister of Petroleum Abdullah Ghorab said that a plan is underway to explore for oil and natural gas in Sinai. The plan, to continue until the year 2014, aims to dig 60 oil wells with investments worth around $1 billion. Ghorab added that these wells should help meet the local market's needs and increase the strategic reserves of oil and natural gas. Source: Global Arab Network

Taqa plans to go ahead with Dutch gas storage project

Abu Dhabi National Energy Company (Taqa) is to go ahead with plans to establish Europe's largest gas storage facility despite a Dutch council order to halt the project over safety fears. A Taqa spokesman in Netherlands has said that the order will be in place until the Dutch council makes a decision, expected next year, on whether the project can go ahead. It is expected to push back the project's original 2013 completion date by at least a year. The company added they are confident that the verdict will be positive. Source: The National

Iran oil minister looks for $40bn to develop shared fields

Iranian oil minister Rostam Qasemi has said the country will need some $40 billion this year to spur the development of oil and gas fields it shares with neighboring countries, Reuters has reported. ""In order to launch the announced development plans (on the joint fields) there is need for more than $40 billion in investment in the current (Iranian) year (ending late March 2012),"" Qasemi was quoted by a local daily. Source: Reuters