2002
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Qatar wants an end to quota busting
Qatar oil minister Abdullah Al Attiyah has asked fellow Opec members to restrain from quota busting and work to prevent an oil price collapse early next year. A Reuters survey showed that quota busting is now running at 3.2m bpd above the official ceiling on production. The minister said that such production levels could negatively affect prices.
Oman LNG wraps up Spanish deal
Oman LNG has agreed to deliver 1.8bn cubic metres of LNG to Spanish utility Union Fenosa Gas for delivery in 2004-2005, reported Gulf News. In May this year Union Fenosa also signed a long-term agreement to buy 50 per cent of the output of the third Oman LNG train for 20 years, and become a partner in developing the train.
Opec may cut production next month
Opec is likely to cut production without raising formal limits which are now well below actual production due to quota busting, reported Reuters. Otherwise some ministers fear that oil stockpiles may lead to a price crash next year. Output is presently running at 2.8m bpd above the formal quota limit of 21.7m bpd.
Kuwait, Indonesia renew contract
Indonesia has renewed a contract to buy 21.6m barrels of gas oil from Kuwait next year, the same amount as in 2002, said industry sources. Prices for the first six months of 2003 are at a premium of 15 and 30 cents a barrel over Singapore spot prices.
IEA will boost supplies during war
The International Energy Agency told the Wall Street Journal that it is ready to pump oil supplies if a war in Iraq was to disrupt supplies. The IEA could release up to 12m bpd from its access to commercial inventories of 2.5bn barrels of oil in 26 countries. This is in addition to 1.3bn barrels held by governments.
Kuwait backs USD20-25 a barrel
Kuwait finance minister Youseff Al Ibrahim told Al Hayat that oil prices of USD20-25 per barrel were good for his country. The emirate has 10 per cent of the world's proven reserves. He did not specify which crude oil price benchmark was being used.
Shell to expand Aqaba investment
Shell Chemical's logistics arm Solvochem is to expand its investment in the Jordanian Red Sea port of Aqaba, reported Shell in the Middle East magazine. Five new storage tanks are under construction to add to the existing 35 tanks, while drum filling facilities and further storage expansion are planned for the future, said officials. They said the Aqaba Free Trade Zone was an ideal location for logistics.
Fire in Kuwait's Burgan oil field
A leak in a pipe connecting an oil well to gathering centre No4 in Kuwait's Burgan oil field caught fire on Sunday, reported AP. The fire injured one worker and led to the temporary closure of the centre, according to a statement from the Kuwait Oil Company. Last January a much larger explosion caused by an oil leak killed three workers and a firefighter at the Rawdatain oil field.
Crude oil storage ramped up
Crude oil storage levels are being ramped up this month, industry sources told the Financial Times. Data from Lloyd's Maritime Intelligence Unit shows abnormally high volumes of crude oil moving from the Gulf, with the number of very large crude carriers up from 10-15 to 23 this month. Before the 1991 Gulf War a similar pattern of VLCC movement was noted.
BP inks BP Oman management deal
BP is to carry on running BP Oman for a year on a management contract, despite having sold its 49 per cent stake in the company last week, reported Gulf News. The BP Oman name will also stay on its 74 petrol stations for the time being. Oman Oil is believed to have paid USD23m for the stake.
Iraqi war, less impact than Gulf War
A second Gulf War would probably have much less impact on oil prices than its predecessor over a decade ago, experts told Reuters. They pointed out that the world is far less dependent on Iraqi oil that it was 12 years ago. In addition, Opec members would quickly make up any deficit, and US government stockpiles could smooth out any spike in prices, they noted.
Opec plans to rein overproduction
Gulf sources told Reuters that all Opec cartel members are now moving to rein in overproduction to prevent an oil price fall in Q2 2003. A recent survey estimated that Opec members are pumping 3m bpd above the official ceiling of 21.7m bpd. Opec still wants to maintain oil prices in its price band of USD22-28 per barrel.
Anadarko to triple Qatar output
Anadarko Petroleum plans to triple output at an oilfield in Qatar where it took full control from BP earlier this year, reported Bloomberg. This will take production at Rayyan from 11,000 bpd to 35,000 bpd, said a spokeswoman.
Riyadh to rein in overproduction
Saudi Arabia has decided to rein in overproduction, having been the main source of oversupply in the past month or so, reported Reuters. The move comes as Opec members have expressed concern that quota busting is getting out of hand. Oil prices have fallen back from almost USD30 per barrel to USD24 in this timeframe.
Jordan shortlists three for Iraq link
Jordan has shortlisted three contractors from Oman, Russia and Britain to build a 150,000 bpd pipeline to Iraq, reported AFP. The 300km, build-own-operate project should be awarded in January with its financial close in May next year. However, a potential US-led war in Iraq could upset this timetable.
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