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Some oil fields likely to remain idle, says Saudi Aramco
Saudi Aramco CEO Khalid al-Falih has said there is little chance of pumping crude from idle fields next year as recovery in world demand is yet to begin, Bloomberg has reported. "We have the excess capacity in case it's needed but we also have the ability to sustain ourselves with production levels similar to what we see today at prices similar to what we have seen so far," he said. Global demand for oil is expected to rise 1.5% to 1.27 million barrels a day, according to the International Energy Agency, not enough for Saudi Arabia to resume all of its idled fields.
Dragon Oil asks for ultimatum on takeover bid
Dubai-based independent oil and gas producer, Dragon Oil, will ask the Irish Takeover Panel to issue an ultimatum to the oil explorer's largest shareholder, Emirates National Oil Company (ENOC), to either make a bid for the company or stop its takeover attempts, the Sunday Times has reported. ENOC, which owns 52% of Dragon, said in June it was considering a bid for the remaining 48%. Talks have stalled and HSBC and Davy Corporate Finance, Dragon's advisers, want to bring the situation to a head.
Dubai firm to build Iraq power plant
The Iraqi government has awarded Dubai-based URUK Engineering an $85m contract to build a 160 megawatt power station north of Baghdad to provide electricity for 80,000 homes, the Associated Press has reported. The power plant in Taji, just outside the capital, is set to be completed in 15 months, the government said.
Turkey-Qatar plan LNG pipeline
Turkey's Energy Minister Taner Yildiz has said that Turkey and Qatar have formed teams to start work on a possible LNG pipeline across Saudi Arabia that would ship Qatari gas to Turkey, Reuters has reported. A Turkish team will travel to Qatar within one or two months, he said.
Baker Hughes bids for Saudi well project
Houston-based oilfield services provider Baker Hughes Inc. has said it is bidding for the Saudi Well Project in the south of Ghawar field and the project could be awarded from Saudi Aramco, Bloomberg has reported. The project in Saudi Arabia involves 145 wells south of the Ghawar for five years. Baker Hughes is expected to provide well engineering and well-site supervision, as well as other segments such as drill bits, fluids and pumping and stimulation.
Kuwait Petroleum offers naphtha for spot lifting
Kuwait Petroleum Co (KPC) is offering 50,000 tons of naphtha for mid-October lifting, in an indication that its aromatics plant is unlikely to start up next month as expected. 'It seems like the market is not as strong as it appears to be. I shall now reverse my bullish view,' one trader told Reuters. According to traders, the plant, which was to soak up 1.5 million tons of naphtha a year, was due to begin operations initially in April, but that was delayed to July, and later to September and now to Q4.
Oman awards power station deal
Oman's Public Authority for Electricity and Water (PAEW) has awarded technical and financial advisory contracts for the 1,000 megawatts Duqm power station, Reuters has reported. Worsely Parsons has won the OR324,638 technical advisory contract for the project, while KPMG won the financial advisory deal worth OR418,511. 'The two contracts mean that we are going ahead with Oman's first coal-fired power project at Duqum,' PAEW has said.
Aramco invites Wasea plant bids
Saudi Aramco has invited contractors to submit their bid for the construction of a fuel distribution plant in Wasea, near the kingdom's capital Riyadh, Reuters has reported. The plant is a wholesale receiving and distributing facility for oil products and would have capacity to handle 185,000 barrels per day of oil. The closing date for bids is mid-November, one contractor said. The plant should be completed by November 2011.
Saudi Electricity gets government reprieve
State-controlled Saudi Electricity has been granted an additional ten-year reprieve on paying dividends to the government, saving the utility company hundreds of millions of riyals per year, Reuters has reported. The firm, undergoing a deep restructuring to maintain profitability as it faces a 9% annual rise in power demand, has cut its workforce, tapped the bond market and launched private sector partnerships to reduce the financial burden of its expansion.
OPEC raises oil demand forecasts
OPEC has raised its global demand forecast for 2010 by 150,000 barrels a day and 2009 by 140,000 barrels a day on expectations of economic growth. The group now predicts that consumption will contract 1.8% this year to average 84.05 million barrels a day, only to expand 0.6% in 2010 to 84.56 million a day. Oil prices around $70 a barrel 'are likely to persist', OPEC's Vienna-based secretariat said in its monthly market report.
Major power outage hits Sharjah
A power outage in the UAE emirate of Sharjah left up to 90% of the city without power for hours on Monday evening, reported Khaleej Times. The Sharjah Electricity and Water Authority blamed the disruptions, which occurred from 3-7:30pm, on cable maintenance work. Industrial areas in the emirate have been experiencing power outages for the last 28 days with economists estimating Sharjah is losing between Dhs5-7 million a day.
UAE delays nuclear reactor contract award
The UAE has delayed the awarding of its $41bn nuclear power station contract, originally due to take place this week, with all three groups of bidders still in the running, The National has reported. 'What happened ultimately was some of the bids were so close in some areas, we decided to proceed with all three,' a senior government official was quoted as saying. 'It will mean a slightly longer period of negotiations.'
Iraq to hold energy conference
Iraq's Electricity Ministry has said that a conference will be held in for international power companies on September 26 to explain and discuss its plans for urgently needed electricity projects up to 2012, Reuters has reported. The conference aims to identify selected sites according to the ministry's plans to build new capacity and giving an overview of 2010 power stations that will be tendered. The one-day conference will be held in Arbil, capital of Iraq's largely autonomous Kurdistan region.
Kuwait inks $2.5bn deal with GE, Hyundai
The Kuwait government has signed a $2.5bn deal with General Electric and Hyundai Heavy Industries to build and operate the Subbiya power plant in the north of the country, state news agency reported. The plant will produce 2,000 megawatts, or 20% of the country's current power output, Kuwait's Minister of Electricity and Water Badr al-Shuraian was quoted as saying by KUNA. 'The contract includes importing and assembly of six gas turbines that will produce 1,320 megawatts in addition to six steam turbines generating 700 megawatts,' al-Shuraian added.
Jordan to sign nuclear cooperation pact with Canada
Jordan Nuclear Regulatory Commission will sign an agreement with the Canadian Nuclear Safety Commission in the field of nuclear administrative procedures, the Jordan Times has reported. Under the agreement, the two sides will exchange information and expertise in the fields of nuclear energy administration and nuclear safety. The agreement also aims to boost Jordanian cadres' capabilities in monitoring and controlling the peaceful use of nuclear energy as well protecting the environment from radiation sources.
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