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Dragon Oil H1 output below expectations
Dubai-based Dragon Oil has said its average production rose 11% in the first half of 2009, but said it was below its expectations due to changes in the drilling programme and some operational issues, Reuters has reported. The average daily production rate grew to 42,808 barrels of oil per day from 38,482 bopd in the year-earlier period, but the rate declined from 43,787 bopd in the first quarter as two new wells came on stream only at the end of May and on significantly lower output from the Dzheitune (Lam) A/127 well. However, the rate had declined from 43,787 bpd in the first quarter as two new wells came on stream only at the end of May and on significantly lower output from the Dzheitune (Lam) A/127 well, the firm said. The operational issues at this well are expected to be resolved later this year, it said.
PetroRabigh's loss doubles in Q2
Saudi-based Rabigh Refining and Petrochemical Co. (PetroRabigh), a joint-venture between Saudi Aramco and Japan's Sumitomo Chemical, has said its losses had more than doubled in the second quarter, citing higher costs and lower demand for petrochemical products, Reuters has reported. The JV made a net loss of SR236 million ($62.93m) in the quarter compared to a SR115 million loss in the same period last year. Operational losses increased in the second quarter by 90% to SR240 million, compared to SR126 million in the same period last year.
Edison to sell Abu Qir in 2010
Umberto Quadrino, chief executive of Italian power company Edison SpA, said the firm plans to sell a 25% stake in Egyptian gas field Abu Qir field by early 2010, Reuters has reported. Edison bought the Abu Qir field in 2008 for $1.405bn. It has reserves of about 70 billion cubic metres of gas equivalent of which Edison is entitled to about 40%.
Kuwait-Qatar electricity synchronization mission begins
A synchronization of the Kuwait and Qatar electricity network was announced successful on Monday, marking the first stage of the Gulf Cooperation Council electricity linkage project, KUNA has reported. Board Chairman of the Gulf Electricity Linkage Authority, Yousif Janahi has said the plan had included operation of the 'first stage' states. It consists of operating the first circuit of marine cables linked between Bahrain and the main network in Saudi, through Qatar and Kuwait on Tuesday. This would be followed by the synchronization process between networks of Bahrain, Qatar and Kuwait on Wednesday. The Gulf electricity linkage project will complete its three final stages by 2011.
Saudi Electricity net drops 8.5%
The state-controlled Saudi Electricity Co. has posted an 8.5% drop in second-quarter profit as new projects increased costs, Bloomberg has reported. The power producer's net income fell to SR715 million ($191m) from SR781 million a year earlier. Operating profit fell 2.5% to SR622 million. The company's operating loss, in the first half, had widened to SR276 million from SR193 million. The company has attributed the increased losses to higher costs from new projects entering service.
Private sector oil refinery installed near Arbil
A local company in Iraq's Kurdistan region has installed the first private sector oil refinery to the west of Arbil city with an initial capacity of 20,000 barrels per day (bpd), Aswat Al-Iraq news agency has reported. Construction work on the refinery began in 2005 under a contract between the ministries of oil, and industry and minerals. Work was planned to be carried out by the Iraqi government, but was later contracted out by the Kurdistan Regional Government to the private sector due to financing difficulties.
Egypt's water needs to surpass resources by 2017
A report by the Egyptian cabinet's Information and Decision Support Centre has said the country's water needs will surpass its resources by 2017 due to the fast increase in its current 76-million population, Reuters has reported. The Arab world's most populous country would need 86.2 billion cubic metres of water in 2017, while resources would expectedly be only 71.4 billion cubic metres. By 2017 the Nile, on which Egypt is heavily dependent, is expected to supply only 80.5% of Egypt's resources.
Aramco to award contracts in September
Saudi state oil giant Aramco would award contracts for project management support and front-end engineering and design (FEED) for the for the construction of gas facilities at Arabiyah and Shaybah fields in September, MEED has reported. Arabiyah is one of two offshore gas fields non-associated with oil Aramco discovered in January.
Hyundai wins Abu Dhabi deal
Abu Dhabi Gas Liquefaction Company has awarded the contract of the Integrated Gas Development (IGD) project to Hyundai Heavy Industries Co. The $1bn IGD project will produce one billion standard cubic feet per day from the Umm Shaif offshore gas fields of ADMA-OPCO. The gas will then be pumped through a sea pipeline to Gasco's Habshan plant. The project is scheduled for completion by Q3 2013.
Gasco awards EPC deals
The Abu Dhabi Gas Industries (Gasco) has announced that it has awarded the contracts for engineering, procurement, construction and commissioning (EPC) works for the integrated gas systems projects worth Dhs34bn, Wam has reported. Eighteen companies had participated in the tenders for these projects either individually or in consortiums, Gasco has said. The projects include the gas treatment plant in Habshan-Habshan Complex 5 and its utilities and annexes, the fourth LNG fractionation train at the Ruwais Plant and storage tanks for propane, butane and pentane products.
Crescent, NIOC deal to go to arbitration
Crescent Petroleum, the Middle East's oldest private oil and gas company, has announced that it is taking its gas supply contract with the National Iranian Oil Co. (NIOC) to international arbitration, in response to demands for performance by customers in the UAE who have lost patience after delays in the delivery of contractual commitments of natural gas by NIOC, Wam has reported. The 25-year contract, Iran's first contract for gas export from the south of Iran, was signed between Crescent and NIOC in 2001 after several years of negotiations. NIOC had contractually committed to commence gas deliveries in December 2005.
Ras Laffan to sell bond
Ras Laffan Liquefied Natural Gas, a joint venture between Qatar Petroleum and Exxon Mobil, plans to sell $2.23bn of international bonds, Bloomberg has reported. Standard & Poor's, which affirmed its 'A' rating to RasGas bonds, had said on July 9 that the bond proceeds are to partially fund the completion of the remaining work on RasGas LNG trains 6 and 7, various shared facilities, and offshore developments, and to repay loans.
OPEC forecasts slow oil demand recovery next year
The Organization of Petroleum Exporting Countries (OPEC) has said in its monthly report that it expects a slower rebound in oil demand next year than the International Energy Agency. Worldwide crude-oil consumption will increase by 500,000 barrels a day, or 0.6%, to 84.3 million a day in 2010 as industrial production gradually picks up after this year's recession, the report said. That compares with an increase of 1.4 million barrels a day, or 1.7%, to 85.2 million, forecast by the IEA on July 10, reported Bloomberg.
Morgan Stanley hikes 2010 oil forecast
A new report by Morgan Stanley predicts that crude oil prices will average $85 a barrel in 2010, 31% higher than its previous estimate of $65 a barrel. The report said commodities will rise as investors' appetite for risk revives along with the global economy, while at the same time oil production will drop as much as 6.3% a year among suppliers outside Opec and by 3.5% within the group.
Qatar to shut largest LNG unit around October
Qatar is scheduled to shut its largest LNG production unit, QatarGas2, train 4, around October for about two weeks for an inspection that includes the unit's Frame Nine turbines, Bloomberg has reported. Train 4 was shut for about one month after it began operation after experiencing vibrations, Faisal al-Suwaidi, QatarGas' CEO had said at the April 6 inauguration of the unit.
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