GIF Energy Tracker
2023March 15, 2023OPEC+ to stick to production cut
Saudi Arabia’s energy minister Prince Abdulaziz bin Salman has said that the OPEC+ alliance will stick to the agreed production cuts until the end of the year.
March 15, 2023Iran’s South pars gas company reports 42% increase in LPG production
Ahmad Bahoush, the managing director of South Pars Gas Company (SPGC), has announced that the production of liquefied petroleum gas (LPG) at the complex has increased by 42% during the 2023 Iranian calendar year, which ends on March 20th. The rise of LPG production at SPGC comes as Iran seeks to increase its non-oil exports to boost its economy, which has been struggling under the weight of international sanctions.
March 14, 2023Oman Hydrogen signs $20 billion green hydrogen agreements
Oman Hydrogen has signed 6 agreements for green hydrogen production in Oman worth more than $20 billion. Oman aims to increase green hydrogen production from 32,500 to 3.75 million tonnes per year by 2040 and from 3.5 to 8.5 million tonnes per year by 2050. The country estimates that it will need a cumulative investment of $140 billion over this period to reach its production target by 2050.
March 14, 2023OPEC predicts “modest” oil surplus amidst demand lull for Q2 2023
According to OPEC, global oil markets appear on track for a modest surplus next quarter amid a seasonal lull in demand. OPEC is pumping about 28.92 MMbpd, or about 300,000 barrels a day, more than it expects will be needed in the second quarter. The surplus could be even larger if Russian oil production continues to prove resilient to international sanctions, since OPEC’s outlook assumes a sharp drop in the country’s output next quarter.
March 14, 2023Saudi Aramco eyes additional 3 million bpd export capacity by 2030
Saudi Aramco has said it is aiming for 3 million barrels per day of additional oil export capacity by the end of this decade. This increase would be led by incremental oil and gas projects in the country and by replacing liquid fuels.
March 14, 2023Saudi energy minister: Kingdom will not sell oil to any country that imposes a price cap
Saudi Energy Minister Prince Abdulaziz bin Salman has said that the Kingdom will not sell oil to any country that attempts to impose a price cap on its supplies. According to Prince Abdulaziz, placing a ceiling on oil prices would inevitably lead to market instability, and Saudi Arabia would reduce its oil production.
March 13, 2023Oman awards 500MW Manah Solar II IPP to Sembcorp Utilities-Jinko Power JV
Singapore-based energy company Sembcorp Industries has announced that it has received an award from Oman Power and Water Procurement Company (OPWP) to build, own and operate the Manah Solar II Independent Power Project in Manah, Oman. The 500 MW solar power plant is expected to be operational by 2025 and will be backed by a 20-year power purchase agreement with OPWP.
March 12, 2023UAE’s ADNOC Gas shares surge 19% in $2.5bn IPO
Shares in the United Arab Emirates’ ADNOC Gas rose 19% on their first day of trading in a $2.5 billion initial public offering. At more than 50 times oversubscribed, it was the biggest demand ever seen for an initial public offering in the Middle East and North Africa.
March 12, 2023Iran reports highest oil exports yet since US applied sanctions over nuclear deal
Iran has said that its oil exports had risen over the past year, reaching their highest level since the US imposed fresh sanctions in 2018. Oil Minister Javad Owji has stated that 83 million more barrels of oil were sold since the start of the Iranian year on March 21, 2022, than in the same period over 2021-2022.
March 11, 2023Saudi Aramco makes a historic $161B profit in 2022
Saudi Aramco reported earning $161 billion last year, claiming the highest-ever recorded annual profit by a publicly listed company. Profits rose 46.5% thanks to the rising energy prices after sanctions were placed on Russia for invading Ukraine.
March 11, 2023Oman: Oil production increases by 3.6% in 2023
Oil production in the Sultanate of Oman increased by 3.6%. Crude oil production reached 25,978,600 barrels and condensate oil production reached about 7,45,200 barrels with the average price of oil in 2022 being $94/bbl.
March 9, 2023Saudi Arabia And China Sign Clean Hydrogen Energy Agreement
The Saudi Ministry of Energy and the National Energy Administration of China have signed an agreement regarding clean hydrogen energy. The signing occurred after the Shura Council, one of the two main branches of Qatar’s legislative body, approved the draft agreement.
March 9, 2023Saudi Aramco signs $6bn deal with Korea Eximbank
Korea Eximbank, also known as the Export-Import Bank of Korea, has signed a framework deal with Saudi Aramco. Korea Eximbank can lend as much as $6bn, with $1bn is set aside for the hydrogen and renewable energy deals, to Aramco, which in turn pays South Korean companies involved in projects whose orders were placed by the state-owned oil major.
March 8, 2023Abu Dhabi’s EWEC aims to boost solar power generation capacity by 600%
Emirates Water and Electricity Company is targeting 7.3 GW, a 606% rise, in its solar power generation capacity by 2030 as the UAE pursues its target of achieving net zero by 2050. This requires an additional 3 gigawatts of solar power capacity by 2029 on top of the 1.5 gigawatts procured from the Al Ajban Solar PV Project once it becomes operational in 2026. The Emirates plans to invest $160 billion in clean and renewable energy sources over the next three decades.
March 7, 2023Siemens Energy signs contracts for power plant maintenance in Iraq
Siemens Energy has signed contracts with Iraq’s Ministry of Electricity to maintain three power plants of around 1 GW for five years as well as train local employees in the field. Siemens Energy had already signed a memorandum of understanding for the expansion of electricity infrastructure with Iraq’s Minister of Electricity, Siad Ali Fadhil, in Berlin. Several projects, which together are expected to run into the billions, are intended to reduce the Iraq’s frequent power outages and cut CO2 emissions.
March 7, 2023Oman’s OQ drilling unit raises $244m in IPO
Abraj Energy Services of OQ raised about 94 million Omani rials ($244 million) from its initial public offering. The IPO, the country’s biggest since 2010, sold more than 377 million shares and was “heavily oversubscribed,” generating more than 790 million Omani rials ($2 billion) in bids.
March 6, 2023Adnoc Drilling recommends dividend of $341m for second half of 2022
Adnoc Drilling has recommended a dividend of $341.25 million for the second half of 2022. This represents a 5% annual increase and comes after the company posted a sharp rise in net profit for the year.
March 6, 2023Iran says it’s discovered what could be the world’s second-largest lithium deposit
Iran says it has discovered a massive deposit of lithium in one of its western provinces. The ministry believes the deposit holds 8.5 million tons of lithium, which, if true, would make the deposit the second-largest known lithium reserve in the world after Chile. After several years of international sanctions, Iran’s economy would greatly benefit from the export of this valuable resource.
March 6, 2023Oman set to award over $700 million contracts for solar energy projects
Oman Power and Water Procurement Company is awarding solar energy projects worth $777 million to international investors after securing approvals from the Authority for Public Services Regulation. The Manah 1 and 2 projects, which will jointly produce a total of 1,000MW, is set to come up on a 15 million sq m area within the Governorate of A’Dakhiliyah. About 2 million solar panels will be installed in these two stations, which will be the largest solar panel project for Oman.
March 6, 2023Houston summit brings OPEC officials and heads of US oil companies together to discuss energy issues
Executives from major U.S. oil companies and top OPEC officials held private meetings on the sidelines of a Houston conference to discuss energy issues, continuing a tradition that began nearly five years ago when the two sides were at odds. Both parties are enjoying strong global demand for oil and gas and have posted record profits over the past year.
March 6, 2023Russian crude oil heads to UAE as sanctions divert flows
The United Arab Emirates has been taking more cargoes of Russian crude oil, an example of how Western sanctions on Russia have adjusted traditional energy trade flows. Russia has been selling both crude and refined products at discounted prices after international sanctions over its invasion of Ukraine. The development also highlights growing cooperation between Russia and top Gulf oil producers, such as Saudi Arabia and the UAE.
March 5, 2023Japan’s JBIC to provide $103mln green loan for Saudi-Egypt interconnection project
The Japan Bank for International Cooperation will provide a “green” loan of $103 million to the Saudi Electricity Company for an electricity interconnection project that will link Saudi Arabia and Egypt. The interconnection project comprises a 3,000 MW high-voltage direct current system with 1,350 km of overhead power lines and 22 km of submarine cables to connect northwestern Saudi Arabia and Egypt.
March 5, 2023ADNOC Raises $2.5 Billion in Gas IPO
Abu Dhabi National Oil Co (ADNOC) has netted $2.5 billion from the initial public offering of its subsidiary ADNOC Gas. This biggest-ever issue in Abu Dhabi was oversubscribed more than 50 times as investors placed offers worth $124 billion for a 5% stake in the United Arab Emirates-based firm.
March 5, 2023QatarEnergy strikes oil again in Namibia
QatarEnergy announced a light oil discovery in the Jonker-1X deep-water exploration well, which marks the company’s third recent discovery offshore Namibia. QatarEnergy announced two similar discoveries in February 2022 in the Graff-1 well and in the Venus-1X prospect, both located in the Orange Basin offshore Namibia.
March 4, 2023Saudi Arabia’s ACWA Power to build two solar plants in Uzbekistan
According to Uzbekistan’s Energy Ministry, Saudi Arabia’s ACWA Power will build two solar plants in Uzbekistan with a total capacity of 1.4 gigawatts and three power storage systems with a combined capacity of 1.2 gigawatts. The two parties have signed investment agreements on the project worth $2.5 billion and deals under which Uzbekistan will buy power from the facilities. Uzbekistan plans to produce more than a third of its energy from renewable sources by 2030.
March 4, 2023Eni agrees on energy deal with UAE’s ADNOC as Italy rebuilds relationship
Italian oil and gas group Eni has said it will cooperate with Abu Dhabi National Oil Co (ADNOC) on energy transition projects. State-controlled Eni said that together with ADNOC it will explore opportunities in renewable energy, blue and green hydrogen and carbon dioxide capture and storage. They will also work on reducing greenhouse gas and methane gas emissions, as well as routine gas flaring. The two countries are working to rebuild ties after tensions from 2021.
March 4, 2023Iran Says Questions About Suspected Highly Enriched Uranium Are Resolved
The head of Iran’s Atomic Energy Organization, Mohammad Eslami, has claimed that “ambiguities have been resolved” over the presence of the particles at its Fordow enrichment plant. However, the International Atomic Energy Agency’s director has also stated that more work needs to be done. The International Atomic Energy Agency reported a week before that inspectors detected uranium particles enriched to 84% purity, near weapons-grade level, in Iran.
March 3, 2023Adnoc Gas Draws $124 Billion of Orders for $2.5 Billion IPO
Abu Dhabi’s Adnoc Gas raised $2.5 billion from its initial public offering. Investors placed $124 billion of orders for a 5% stake in Adnoc Gas, an oversubscription level of more than 50 times.
March 2, 2023TotalEnergies expands its upstream portfolio in UAE with several offshore fields
TotalEnergies has inked a deal with CEPSA to acquire its upstream assets in the United Arab Emirates, which will enable the major oil company to add multiple offshore fields to its asset portfolio. The company will acquire a 20% participating interest in the Satah Al Razboot, Umm Lulu, Bin Nasher, and Al Bateel offshore concession.
March 2, 2023SABIC announces strategic project to manufacture catalysts
SABIC announced a strategic project to manufacture catalysts with the aim of transforming Saudi Arabia into a manufacturing hub for specialized materials. The project will contribute to industrial advancements as envisioned in Saudi Vision 2030, including improving competitiveness of the energy sector, developing industries associated with oil and gas, and raising the level of local content in the area.
March 1, 2023$8.5 Billion Financing Agreement for Green Hydrogen Project in Saudi’s Neom
Acwa Power has closed a financing agreement worth $8.5 billion for a sizable green hydrogen project that will be built at Saudi Arabia’s futuristic city Neom. The project’s funding will come from a combination of long-term debt and equity.
March 1, 2023ACWA Power signs MoU with Pupuk Indonesia for large-scale green hydrogen project
ACWA Power and Indonesia’s state-owned fertilizer producer Pupuk Indonesia have signed a Memorandum of Understanding to develop a large-scale green hydrogen project. Pupuk Indonesia PT is the largest fertilizer manufacturer in Southeast Asia with a total production capacity of 12.71 million tons per year.
February 28, 2023Arab Crude Oil Reaches 94.4% Of Japan’s Imports In January
The total crude oil Japan imported in January amounted to 84.423 million barrels with 94.4% of that amount coming from the five GCC countries of Saudi Arabia, UAE, Kuwait, Qatar and Oman, according to data from the Agency for Natural Resources and Energy of the Japanese Ministry of Economy, Trade and Industry.
February 28, 2023IAEA report pressing Iran on uranium enrichment to near bomb-grade
The International Atomic Energy Agency is in discussions with Iran on the origin of uranium particles enriched up to 83.7% purity, very close to weapons grade, at its Fordow enrichment plant. Iran has denied ever having sought nuclear weapons and states that it only wants to master nuclear technology for civil uses.
February 27, 2023IPO final session highlights detailed offerings of Abraj Energy’s shares
As part of its IPO introductory sessions tour, Abraj Energy, a subsidiary of OQ, organized its last introductory meeting, in cooperation with the branch of the Oman Chamber of Commerce and Industry in Dhofar Governorate. Eng. Saif Al Hamhami, Chief Executive Officer of Abraj Energy Services said that by listing its shares for the public offering, the company aims to build a strategic partnership with local, regional, and international investors.
February 27, 2023Madayn Signs Agreement With Solar Wadi For 100-MW Solar PV Plant In Suhar Industrial City, Oman
The Public Establishment for Industrial Estates (Madayn) signed an agreement with an Oman renewable energy company, Solar Wadi, for the allocation of land in Suhar Industrial City for the construction of a 100-MW solar PV plant. The total investment in Suhar Industrial City is RO 2.3 billion. There are more than 360 industrial projects on an area of 29 million square metres.
February 27, 2023Saudi Arabia Moves Forward With Bids For Nuclear Plant
Saudi Arabia is progressing with its plans to build its first nuclear power plant and has received a number of bids. The Saudi Ministry of Finance’s 2023 budget statement published on February 15 notes that bids to build the plant were received last December. Saudi Arabia has been interested in nuclear energy for decades and recently, it has been considering developing nuclear energy for peaceful purposes. This is also in line with the kingdom’s strategy to diversify its energy mix and in doing so, reduce its dependence on oil.
February 26, 2023Oman’s Abraj Energy Forms Strategic Partnership To Explore Oil In Kuwait
Oman’s oil and gas drilling services firm, Abraj Energy, is set to explore oil in Kuwait. It has signed an agreement with the Kuwaiti national oil company, Kuwait Gulf Oil Co., and the Saudi Arabian-based chemical plant, Saudi Chevron Co. Abraj Energy will explore ways to extract oil in Kuwait. The agreement aims to strengthen and expand Abraj Energy’s operations in the Middle East and North Africa region.
February 25, 2023Baynouna Solar Energy Station Opens
The Baynouna Solar Park, the largest clean energy project in Jordan, was inaugurated in a ceremony. The 200-megawatt station was carried out by Baynouna Solar Energy Company, a joint venture between the UAE’s energy company, Masdar, and Finnish investment and asset management group Taaleri. This project is said to have strengthened the strategic relationship between the UAE and Jordan and support Jordan’s goal of receiving 50% of its electricity from renewable sources by 2030.
February 24, 2023Iraq’s January Output Hits 10-Month Low
Iraq’s crude output fell by around 100,000 barrels per day in January to 4.29 million b/d, according to Energy Intelligence estimates, its lowest in 10 months and 140,000 b/d below its Opec production target, due to weather-related loading disruptions at Basrah and refinery turnarounds. The weather disruptions caused a build in Basrah crude stocks which forced the oil ministry to cut production.
February 23, 2023Adnoc Gas $2 billion IPO covered in hours
Within hours after the initial public offering kicked off, Adnoc Gas’ initial public offering order book was fully covered. Abu Dhabi National Oil Co. sold a 4% stake in Adnoc Gas, offering 3 billion shares between Dh2.25 and Dh2.43. The company will be valued at $50.8 billion, making it one of the world’s largest listed gas firms.
February 23, 2023Japanese corporation to explore role in Oman green ammonia project
Japanese heavy engineering manufacturer IHI Corporation and Indian green energy developer ACME Group have signed a Memorandum of Understanding. Backed by India, Japan could potentially be participating in a green ammonia project currently under development in Oman. The cooperation between Japan and Oman would build on a broader pledge by the two countries to cooperate across the green energy value chain.
February 22, 2023Iraq Partners With UAE And Chinese Firms To Develop Six Oil And Gas Fields
Iraq has signed deals with two Chinese companies and UAE-based Crescent Petroleum for the development of six oil and gas fields. This is an effort by the country to cut gas imports by improving domestic production of oil and gas. Under the 20-year contract, Crescent will develop the Gilabat-Qumar and Khashim fields in Diyala. The fields are expected to initially produce 250 million standard cubic feet per day of natural gas. Crescent Petroleum exploration and production executive director Abdulla Al Qadi said, “Gas and oil supplies from these operations will help improve services and local economic development for the people of Iraq.” This comes in light of Iraq signing two other contracts with China’s Geo-Jade for the exploration and development rights to the Huwaiza oilfield in the south, and the Naft Khana, northeast of Baghdad.
February 22, 2023Iran Ready To Build Oil Refineries For Turkmenistan: Deputy Minister
Iran’s Deputy Minister of Oil for Engineering, Research and Technology Vahidreza Zeydifard has said that Tehran is ready to build oil refineries in the Central Asian country. Over 70% of the equipment used to build the refineries is to come from Iran itself and will be exported to Turkmenistan. There have been positive dynamics in the growth of trade between the two countries. In June 2022, the Iranian and Turkmen presidents signed a series of nine Memorandums of Understanding ranging from finance to energy.
February 22, 2023Saudi Arabia’s Oil Revenues Reach $326bn IIn 2022, Highest In 10 Years
According to local reports released on 21 February, Saudi Arabia achieved its highest oil revenues in 2022 in the past 10 years, amounting to $326 billion. However, even though it reached its highest revenue, Bloomberg reported that the kingdom’s monthly oil revenues decreased in the second half of the year. Saudi Arabia’s oil exports amount to 70% of its total exports that year.
February 21, 2023TotalEnergies becomes QatarEnergy’s first partner on the North Field South LNG project
TotalEnergies, already involved in the North Field East liquefied natural gas (LNG) project, has been chosen as the first international partner for the North Field South LNG project. Under the new agreement with QatarEnergy, TotalEnergies will gain a 9.375% stake in the North Field South project. TotalEnergies has taken stake with what is claimed to be the world’s largest LNG project in terms of capacity.
February 21, 2023UAE’s Crescent Petroleum signs agreements to develop Iraqi oil and gas fields
Sharjah energy company Crescent Petroleum has signed three 20-year agreements to develop oil and gas fields in Iraq, as the country seeks international collaboration to boost its energy supply. The company will produce gas in two oil and gas blocks in the northern Diyala province and explore a third block in Basra. These operations are expected to increase local economic development within Iraq.
February 20, 2023Saudi energy minister says OPEC+ is flexible enough to change decisions whenever required
At a media forum in Riyadh, Saudi Arabia’s energy minister Prince Abdulaziz bin Salman stated that the OPEC+ alliance is flexible enough to change decisions whenever it is required.
February 20, 2023Energy Giant Saudi Aramco Signs Agreement With droppGroup to Build Web3 Tech
Saudi Arabian Oil Group (Saudi Aramco) has signed a memorandum of understanding with droppGroup to explore co-developing a range of Web3 technologies. The Web3, the third generation of the internet driven by blockchain technology, applications will be aimed at helping Aramco’s employees, including potential on-boarding, training ecosystems, as well as a tokenized network and rewards program.
February 20, 2023Omani oil and gas sector to witness growth over next 5 years
According to a report, Oman’s oil and gas sector will witness growth with a compound annual growth rate of more than 5 percent during the period from 2023 to 2028. Factors such as supportive government policies and efforts to develop the sector along with future projects are expected to drive the growth of the market.
February 19, 2023Executive Director of IEA warns of energy supply shortage next winter
Executive Director of the International Energy Agency (IEA) Fatih Birol has warned of possible energy shortages next winter. Birol has said an additional 23 billion cubic metres of LNG is expected this year and that China would likely swallow 80 percent of the extra gas. He has also stated that European households and firms need to continue efforts to reduce gas usage, renewable energy outputs need to expand faster, and countries should reconsider their plans to phase out nuclear energy.
February 18, 2023US and Canada ready to work with Iraq to tackle gas flare
According to the US and Canada ambassadors, the two countries are willing to help Iraq by investing in gas capture technology in order to boost power production and reduce the adverse health implications of the emissions. Iraq is the second-highest emitter of gas flares in the world, flaring around 16 billion cubic meters of gas on a daily basis. If captured, the gas could potentially power around 3 million homes.
February 18, 2023Iraqi Premier and European Commission address European investments in Iraq
Iraqi Prime Minister, Muhammed Shia Al-Sudani, met with European Commission President, Ursula von der Leyen, on the sidelines of the 59th Munich Security Conference. The President of the European Commission expressed the EU’s cooperation and determination to forge productive partnerships in energy, particularly in the renewable energy sector.
February 17, 2023ExxonMobil Sells Iraq Stake To Pertamina
American giant ExxonMobil has confirmed that “ExxonMobil Iraq Limited reached an agreement with Pertamina to sell 10% of EMIL’s interest in West Qurna I.” Exxon has been seeking to quit the field and Iraq entirely since January 2021, but Baghdad blocked its planned sale to Chinese firms, prompting Exxon to file for arbitration.
February 16, 2023Iraqi Ministry of Electricity and GE sign Principles of Cooperation
GE has signed Principles of Cooperation in Energy with the Ministry of Electricity, Republic of Iraq. The initiative aims to explore opportunities to increase Iraq’s output through a variety of different methods, such as establishing new power plants, expanding capacity at existing facilities, and driving the decarbonization of the country’s energy sector. The overall goal is to help “address the current electricity shortfall across Iraq and meet the growing power needs of the people to accelerate the nation’s sustainable economic development.”
February 16, 2023Saudi Energy Minister says OPEC+ deal will continue until end of year
Saudi Energy Minister Prince Abdulaziz bin Salman has stated that the current OPEC+ deal on oil output would be locked in until the end of the year, adding that he has remained cautious about Chinese demand forecasts. OPEC+ agreed in October 2022 to cut oil production targets by 2 million barrels per day until the end of 2023.
February 15, 2023Kuwait invites bids to power oil and gas facilities with renewable energy
According to a report, the Kuwait National Petroleum Co and the Kuwait Integrated Petroleum Industries Co have invited consultancy bids from five Western firms to study the use of renewable energy. The two companies want to follow a trend by most operators in the oil sector to switch to clean fuel, mainly solar and wind energy.
February 15, 2023RWE receives first LNG cargo at Brunsbuettel port
Utility RWE’s RWEG.DE trading arm received the first cargo of liquefied natural gas under a deal with Abu Dhabi National Oil Company as part of German efforts to ensure supply after cuts to Russian gas exports. ADNOC and RWE agreed to a deal last year for several years of LNG supplies to Germany starting from 2023.
February 14, 2023Vale acquires Oman’s OQ 30% stake in Vale Oman
Brazilian mining company Vale has bought back a 30% stake in Vale Oman from Oman’s state energy company OQ. Vale Oman has become a 100% foreign company after the acquisition.
February 13, 2023China’s CNPC set to seal Qatari LNG deal
China National Petroleum Corp is close to finalizing a deal to buy liquefied natural gas from QatarEnergy’s North Field expansion project for over 30 years. If sealed, this would be the second such deal between major LNG exporter Qatar and China, the world’s second-highest LNG buyer, as Beijing looks to beef up gas supply and diversify its sources in a drive to replace coal and cut carbon emissions.
February 12, 2023OPEC Secretary General shares expectation that oil demand to reach pre-pandemic levels this year
OPEC Secretary General Haitham Al Ghais has stated that the group expects oil demand to exceed pre-pandemic levels this year, reaching almost 102 million barrels a day. He also stated that demand is projected to further rise to 110 million barrels per day by 2025.
February 12, 2023Abu Dhabi’s ADNOC Drilling net profit rises 33% in 2022
Abu Dhabi’s ADNOC Drilling reported a rise of 33% in 2022 net profit, with revenue boosted by its onshore and oilfield services businesses. The company said its results were largely driven by new rigs entering its operational fleet, now consisting of 115 rigs. The company also presented strong guidance for 2023, with revenue projected at between $3 billion and $3.2 billion, representing year-on-year growth of up to 20%, and is expecting record net profit in 2023 of $850 million to $1 billion in the same period.
February 11, 2023Oman Oil-Drilling IPO Draws PIF as Anchor Investor
Oman’s OQ SAOC plans to raise as much as $244 million from the initial public offering of its oil-drilling unit and has brought in Saudi Arabia’s wealth fund as an anchor investor. Three subsidiaries of state-owned energy firm OQ are selling 49% of Abraj Energy Services SAOC — or just over 377 million shares. Oman is joining the Gulf’s listing boom, which has mainly been confined to Saudi Arabia and the United Arab Emirates.
February 10, 2023Germany in advanced talks with Oman for natural gas supplies
Germany has been in talks with Oman to sign a long-term agreement that would last at least 10 years. Two sources with direct knowledge of the matter said the deal with Oman would be for between 0.5-1 million tonnes per annum (mtpa), with one specifying around 0.8 mtpa over 10 years. This comes in light of Berlin searching for an alternative to Russian fuel supplies. As a result of the war in Ukraine, Europe has been trying to replace all Russian energy imports by mid-2024.
February 9, 2023Adnoc Natural Gas, LNG IPO Seen as ‘Highly Feasible’ Amid Broader Expansion Plans
Abu Dhabi National Oil Co. (Adnoc) is advancing plans to launch an initial public offering (IPO) that would combine the United Arab Emirates’ (UAE) largest natural gas companies as part of a broader plan aimed at attracting more foreign investors and funding for long-term projects. The new company would bring Adnoc’s liquefied natural gas and gas processing units together to form Adnoc Gas. The newly formed company would have a production capacity of 10 Bcf/d across eight onshore and offshore sites and a pipeline network of more than 2,020 miles, making it one of the largest gas processing and marketing companies in the Middle East.
February 8, 2023Dana Gas reports 53% rise in adjusted net profit for 2022
Middle East’s private natural gas company, Dana Gas, reported an adjusted net profit of Dhs718m ($196m) for the full year of 2022, on the back of high energy prices, and the group’s adjusted net profit last year grew 53% from Dhs469m ($128m) earned in 2021. The CEO stated that the results are a testament to Dana Gas’ ability to control costs and maintain production levels amid a prolonged environment of high energy prices.
February 8, 2023Iraq awards 6 oil concessions to UAE and Chinese firms
As part of the fifth licensing round for Iraq, Sharjah-based Crescent Petroleum, the Middle East’s largest private upstream oil and gas company, was awarded three concessions covering the production and development of oil and gas fields, and three concessions were awarded to the Chinese Geo-Jade Petroleum Company. Three of the fields are located in Basra in South Iraq, while the other three are in the Northeastern Diyala Governorate.
February 7, 2023Saudi Wealth Fund Raises $5.5 Billion From Green Bond Sale
Saudi Arabia’s sovereign wealth fund raised $5.5 billion from a three-part green bond sale, the second debt offering by the Public Investment Fund within four months. The PIF secured more than $32 billion of orders for the bonds that have maturities of 7, 12 and 30 years. The PIF plans to use the proceeds for general corporate purposes and to finance, refinance and invest in green projects.
February 7, 2023SABIC plans $1.3bn investments in second stage of energy transition
Saudi Basic Industries Corp. is set to invest $1.3 billion in the second phase of its energy transition. Speaking during a panel discussion at the 44th International Association of Energy Economics Conference, a SABIC official revealed that in the first phase of its transition worth $1 billion, the company recorded a 10 percent drop in carbon emissions.
February 7, 2023Oman LNG inks 4-year deal to supply China’s Unipec with 1 mln tonnes of LNG a year
Oman LNG has agreed to supply China’s Unipec with around 1 million metric tonnes of liquefied natural gas per year for four years starting in 2025. This is the first contract that Oman LNG has signed with a Chinese firm, with the contract being a step that “promotes the company’s efforts to reach new markets.”
February 6, 2023Turkey’s Ceyhan Oil terminal and Iraq KRG Pipeline halted after quake
A major earthquake that struck Turkey and Syria has halted operations at Turkey’s oil terminal in Ceyhan and flows via Iraq’s northern oil export pipeline from Kirkuk. Iraq’s Kurdistan Regional Government, which halted flows through the pipeline which runs from Iraq’s northern Kirkuk fields to Ceyhan, had been pumping 400,000 barrels per day (bpd) and Iraq’s federal government was pumping 75,000 bpd through the pipeline.
February 6, 2023Iran Begins Exploitation of ‘Biggest’ Uranium Mine
Iran has started the exploitation phase in the central province of Yazd for what is believed to be the biggest uranium mine. After extraction, the uranium from this mine will apparently be sent to Isfahan for purification and for making nuclear fuel. According to Mohammed Eslami, head of the Atomic Energy Organisation of Iran (AEOI), “expanding nuclear power production and application of radiation are among the major goals pursued by the AEOI as part of the comprehensive strategic plan for the nuclear industry”.
February 6, 2023Alfanar sign $1.5bn deal with Daewoo E&C during iktva 2023
During Saudi Aramco’s iktva 2023 Forum and Exhibition, Amer Al-Ajmi, executive vice president of Alfanar, and Sungmin Yang, senior vice president of Daewoo, signed a $1.5 billion agreement aimed towards joint cooperation in future projects for the oil, gas and petrochemicals sectors. Through this agreement, Alfanar will work on transferring and localizing expertise in the engineering construction field, and exchanging the expertise of advanced technologies used in design, procurement and project execution for the oil, gas and petrochemicals sectors.
February 5, 2023GE, Samsung C&T, EDF in race for 7.2GW Saudi power projects
Saudi Power Procurement Company has announced that 21 major developer/developer consortiums, including global energy leader GE, French utility major EDF, Samsung and India’s energy conglomerate NTPC, have prequalified for the development of four combined-cycle electrical power generation projects with provision for Carbon Capture and Sequestration readiness. Each of the projects boast a capacity of 1,800 MW, and will be located in either Taiba or Qassim City within the Kingdom.
February 5, 2023Total refinery products in Oman rises by 4%
According to the latest data issued by the National Centre for Statistics and Information, the total refinery products in the Sultanate of Oman increased by 4% until the end of December 2022 compared to the same period in 2021. While Oman’s production of diesel and benzene decreased, the production of petrol, standard grade petrol, and polypropylene increased.
February 4, 2023Iran signs $900 milllion deal with local firm to develop Kish offshore gas field
Iran signed a $900 million contract with Iranian Offshore Engineering and Construction Co (IOEC) to develop the first phase of its Kish offshore gas field in the Gulf. Under the contract, IOEC will launch production of 28 million cubic meters per day of gas in 14 months, which will be sent to installations in Asalouyeh on Iran’s Gulf coast via a 210 km undersea pipeline.
February 4, 2023Saudi energy minister warns sanctions could result in energy shortages
During an industry conference in Riyadh, Saudi Energy Minister Prince Abdulaziz bin Salman warned that sanctions and underinvestment in the energy sector could result in a shortage of energy supplies. This was stated during a time when the European Union has imposed a series of sanctions against Russia, reducing Russian energy exports, and other Western powers have also imposed measures as they seek to further limit Moscow’s ability to fund its war in Ukraine.
February 3, 2023Aramco Sets Out Project Plans for the Next Three Years
Saudi Aramco expects to award contracts for some 90 projects over the next three years as it presses ahead with major expansions of its upstream oil and gas capacity. Aramco is apparently ramping up investment again after a slow period during the Covid-19 pandemic and the accompanying economic slowdown.
February 3, 2023Saudi Arabia Plans Trillion Riyal worth of Clean Power Investments
Saudi Arabia plans to invest more than SR1 trillion ($270bn) into its power sector by 2030 in order to boost clean energy generation capacity and expand and modernize its transmission and distribution networks. The kingdom intends for the powergen mix to be split 50:50 between gas and renewables by 2030, entailing the development of 58.7GW of renewable capacity. This will displace more than 1mn b/d of oil from the power and water sector, freeing volumes up to be exported to global markets.
February 1, 2023Basra Oil Company head expects Qatar to take 20-25% stake in TotalEnergies’ Iraq project
The head of Iraq’s Basra Oil Company (BOC) expects Qatar to acquire a 20-25% stake in TotalEnergies’ $27 billion cluster of energy projects in the country, with the Baghdad government aiming to hold around 40%. Although talks are still ongoing, the major investment from a Gulf State is considered to be a step towards countering Iranian influence within Iraq.
February 1, 2023Gas to Reach Sea of Oman Coasts
The third largest gas project in the Sistan-Baluchestan Province of Oman will become operational soon with the completion of the 290 km Iranshahr-Chabahar-Konarak gas pipeline. The project will supply gas to the southern regions of the province and the coasts alongside the Sea of Oman. It is considered that this project, in addition to providing the energy needed by petrochemical units and power plants in the region, will help with the sustainable development in the southeast of Iran, and improve economic, industrial and tourism activities in the underprivileged province.
January 31, 2023Saudi energy minister invites oil companies to move their headquarters to Dhahran
Saudi Arabia’s Energy Minister Prince Abdulaziz Bin Salman has called on the global oil companies to move their headquarters to Dhahran in the Eastern Province of Saudi Arabia and home to Saudi Aramco. Prince Abdulaziz made these remarks during his speech at the seventh edition Aramco’s iktva exhibition 2023.
January 30, 2023OPEC+ seen sticking with oil output policy at February 1st meeting
An OPEC+ panel is likely to recommend keeping the oil producer group’s current output policy unchanged when it meets this week. OPEC+ agreed in October to cut its production target by 2 million barrels per day, about 2% of world demand, from November until the end of 2023.
January 30, 2023Turkey and Oman sign deal to purchase 1.4B cubic meters of gas per year
The Turkish energy minister has announced that Turkey is signing a new gas deal with Oman, a move to diversify Ankara’s gas supplies. Turkey also entered similar deals with Bulgaria, North Macedonia, Romania and Moldova. Turkey is looking to become a gas trade center at a time when Europe suffers from gas supply problems.
January 30, 2023Saudi Arabia will invest $266 billion in clean energy
According to Energy Minister Prince Abdulaziz bin Salman, Saudi Arabia will invest one trillion riyals to generate “cleaner energy” and add transport lines and distribution networks. The eventual goal is to export energy to the world and produce clean hydrogen. He also stated that Saudi Arabia is determined to become the leading exporter of hydrogen.
January 30, 2023Saudi Crown Prince and Putin discuss OPEC+ cooperation for oil market stability
Saudi Arabia’s Crown Prince Mohammed bin Salman discussed in a phone call with Russian President Vladimir Putin cooperation within the OPEC+ group countries to maintain the stability of the oil market. The Crown Prince and Putin also discussed further development of bilateral cooperation in the political, trade, economic and energy fields. Although the current oil prices in the market are stable, there remains a factor of uncertainty when it comes to how supply will be impacted with the recent Western sanctions on Russia’s oil industry imposed over Moscow’s war on Ukraine, as well as the price caps introduced on Russian products in December.
January 30, 2023Iranian gas supplies to Iraq stop
The Iraqi Minister of Electricity, Ziyad Ali Fadel, announced that Iraq’s imports of Iranian gas completely stopped due to maintenance works in the gas pipeline inside Iran. The current rate of electric power production in Iraq is only 15,000 megawatts out of 24,000 megawatts, due to Iran’s halt in gas supplies to Iraqi power plants. The Iraqi government is currently working to tackle the problem of gas imports from Iran, which are 40 million cubic meters per day, in cooperation with international companies to invest in Iraqi gas.
January 29, 2023Iraq Militia states that Basrah-Aqaba oil pipeline ‘will never be’
Iraqi aspirations to move ahead with a long-planned crude pipeline from Basrah to Aqaba in Jordan have been dealt a major blow after Ali al-Asadi, head of Iraq’s Harakat Hezbollah al-Nujaba (HaN), said the project will “never” happen. Al-Asadi issued the statement after Iraqi lawmaker Mustafa Jabbar Sanad revealed that Jordanian officials had met with senior Iraqi Shia, Sunni, and Kurdish officials and agreed on the pipeline’s implementation.
January 28, 2023Tanzania and UAE firm sign petroleum facility deal
The Tanzania government signed a Memorandum of Understanding with a United Arab Emirates firm for the construction of petroleum receiving and storage infrastructures. The deal was signed by the Ministry of Energy and representatives of the UAE-based Emirates National Oil Company Group. The decision aims at making Tanzania a petroleum hub in East and Central Africa as well as sustaining the country’s fuel demands for up to six months.
January 27, 2023Aramco invests $14 million into drone business
Wa’ed Ventures, the venture capital arm of Aramco, has invested $14 million into Japanese drone provider Terra Drone Corporation. The financing involves the establishment of a new subsidiary in the Kingdom of Saudi Arabia, Terra Drone Arabia, to conduct drone survey, inspection and unmanned traffic management across various projects. This support is in line with the Saudi government’s “Vision 2030” reform plan, which seeks to stimulate economic transformation in the country by reducing its dependence on hydrocarbons.
January 26, 2023Qatar’s energy giant joins Lebanon gas exploration group
Qatar’s state-owned oil and gas company will participate in oil and gas exploration of two offshore blocks off the coast of Lebanon, joining France’s TotalEnergies and Italy’s Eni. Lebanon told TotalEnergies and Eni to start gas exploration after an agreement with Israel regarding the maritime territory. QatarEnergy’s participation in the consortium also demonstrates Qatar’s continued interest in helping Lebanon to secure its own gas supply and alleviate Lebanon’s current economic crisis.
January 26, 2023Qatar in talks to join TotalEnergies’ $27 billion Iraqi energy project
Qatar is in talks to acquire a stake from French company TotalEnergies’ $27 billion cluster of energy projects in Iraq as Baghdad hopes to stem efforts by Western energy companies to exit the country. QatarEnergy is looking to acquire a stake of around 30% in the project. A major investment by a Gulf state would mark an important win for Iraqi Prime Minister Mohammed al-Sudani, who took office last October following more than a year of political turmoil, and would also be considered a step towards countering Iranian influence.
January 25, 2023Oman allocates 250 km2 for solar and wind farms in Duqm SEZ
Duqm is expected to become the biggest contributor to Oman’s sustainability goals, allocating 250sq km for solar and wind farms that will then produce green hydrogen and green ammonia for local use and for export. Two licenses have already been granted; one of which is at the stage of implementing a 300 MW plant while the other is at the stage of detailed studies for a much larger capacity.
January 24, 2023Oman’s OQ will inaugurate Bisat oil field on January 26
The Bisat oil field in Oman’s Block 60 concession area – which is operated by the sultanate’s global integrated energy company OQ – will be inaugurated. The Bisat oil field, located at Abu Tubul, is one of the most important projects of OQ Group in the upstream sector.
January 23, 2023Iran raised to 4th place among top OPEC producers in December by the IEA
The International Energy Agency (IEA) in its latest “Oil Market Report” put Iran’s oil production in December at 2.72 million barrels per day, indicating that the country has risen to the fourth place among OPEC’s top oil producers. Iran’s oil exports have reached new highs in the last two months of 2022 and are making a strong start to 2023 despite U.S. sanctions. Iran has been ramping up its oil production and exports over the past year as the country has been implementing new strategies to overcome U.S. sanctions.
January 23, 2023UAE plans to reach 14GW of renewable energy by 2030
The UAE plans to reach 14 gigawatts (GW) of clean energy by 2030, while continuing to supply oil and gas. Climate Minister Mariam Almheiri also claims that by 2050, 50% of the UAE’s energy supply will come from clean and renewable energy sources.
January 23, 2023TotalEnergies starts production from Oman onshore gas field
French firm TotalEnergies and its partners have started gas production from the Mabrouk North-East field in onshore Block 10 in Oman. TotalEnergies also signed a long-term LNG purchase contract with Oman LNG, whereby the French firm will purchase 0.8 million metric tonnes of LNG per year. TotalEnergies has said that the contract, which has a term of ten years starting from 2025, would contribute to its LNG integrated portfolio and help in addressing the European and Asian markets.
January 22, 2023Oman energy firm OQ to sell 49% stake in oil-drilling unit IPO
Oman energy firm, OQ SAOC, plans to sell up to 49% of its oil drilling unit, Abraj Energy Services SAOC, in an initial public offering, kick-starting the sultanate’s push to join a listings boom sweeping through the Middle East. The Oman Investment Authority has said that it plans to raise more than $1.3 billion by exiting its investments in eight sectors this year. Oman is joining its energy-rich Gulf neighbors in selling assets to fund the diversification of their economies and open up their stock markets to more international investors.
January 22, 2023Iran Oil Exports To China Surge
The Persian Gulf country’s oil exports climbed to about 1.3 million barrels a day in November, and last month held near the highest in four years. Much of it appears to be going to China, and the surge is offering solace to both Tehran and a global market fretting over the prospect of sanctions squeezing Russian supply.
January 21, 2023Qatar Development Bank launches ‘green financing’ for environment-friendly projects
Qatar Development Bank launched the Clean Energy and Eco-Friendly Financing programme, also known as Green Financing for Qatar-based Small and Medium Enterprises. The Green Financing programme will finance 85% of the cost for businesses adding technological solutions or environment-friendly operations and 80% of the cost for companies producing green products with a positive and sustainable environmental impact. The program is considered to be part of the bank’s strategy to support environmentally friendly projects in line with the country’s national vision for building a sustainable knowledge-based economy.
January 20, 2023ACWA Power plans to develop Uzkebistan’s first hydrogen project
ACWA Power has signed extensive heads of terms agreements to develop a green hydrogen facility and a green ammonia pilot project in the Republic of Uzbekistan with the country’s Ministry of Energy and Uzkimyosanoat, a state-owned chemical company. Aside from these green hydrogen and green ammonia projects, ACWA Power also has five existing projects in Uzbekistan, and Uzbekistan is the second largest in terms of value for the company after its home market of Saudi Arabia.
January 20, 2023Saudi Arabia will continue talks with Russia to stabilize oil prices
According to the kingdom’s foreign minister, Saudi Arabia is set to continue talks with Russia over determining avenues to stabilize prices for crude oil. Due to western sanctions placed on Russia over its military operation in Ukraine, Liquified Natural Gas prices have vastly increased as the EU has deviated from Moscow as a primary oil supplier in search of new ones.
January 19, 2023IEA chief expects tighter energy markets in 2023
International Energy Agency (IEA) head Fatih Birol states that energy markets could be tighter in 2023, adding that he hopes prices would not rise further in order to ease the pressure on energy-importing developing countries. Birol elaborates that even though currently there was no tightness in the market, there were uncertainties to watch out for, namely Chinese demand and Russian supply. Two Gulf OPEC+ producers, UAE energy minister Suhail al-Mazrouei and Saudi Aramco chief Amin Nasser have said that they see oil markets as balanced.
January 18, 2023Saudi Aramco increases access to North America’s largest oil refinery as it launches new US subsidiary
Saudi Aramco’s global trading arm has bought US firm Motiva Trading and has also launched a Texas-based subsidiary – Aramco Trading Americas. The new entity will be the sole supplier and ‘offtaker’ of Motiva Enterprises, the owner of North America’s largest oil refinery with a crude capacity of 630,000 barrels a day of consumer and commercial grade fuels and base oils.
January 18, 2023Germany Holds Talks with Iraq for Potential Gas Imports to Help Wean Off Russian Energy
According to German Chancellor Olaf Scholz, Germany is engaging in bilateral talks with Iraq over potential gas imports to help Berlin diversify its energy sources. The latest meeting between the German chancellor and the Iraqi government is among the recent bilateral talks between Berlin and other countries, including the US, UAE, and Qatar, to secure alternative gas supplies following Moscow’s invasion of Ukraine.
January 18, 2023Oman LNG signs deals with TotalEnergies and Thailand’s PTT
Oman LNG has agreed to supply up to 1.6 million metric tonnes of liquefied natural gas to France’s TotalEnergies and Thai state-owned firm PTT Pcl. TotalEnergies and PTT will each receive 800,000 tonnes of LNG per year, with the French firm commencing a 10-year deal in 2025 and the Thai company taking supply for nine years beginning in 2026.
January 18, 2023Masdar partners with SOCAR to develop 4 GW renewable energy projects
Masdar has signed joint development agreements with the State Oil Company of the Republic of Azerbaijan (SOCAR) for onshore wind and solar projects, and integrated offshore wind and green hydrogen projects, with a total combined capacity of 4 GW. The agreements were signed on the sidelines of Abu Dhabi Sustainability Week, the global platform for accelerating sustainable development hosted by Masdar. Azerbaijan is pursuing a national target of producing 30% of its domestic power needs from renewable energy sources by 2030, as the nation looks to diversify its economy and reduce greenhouse gas emissions.
January 18, 2023Zambia to develop solar projects worth $2 billion with UAE as country faces rolling blackouts
Zambia’s state-owned power company Zesco signed an agreement with the United Arab Emirates’ renewable energy company Masdar to develop solar projects worth $2 billion. Once completed, the projects will result in an additional 2,000 megawatts of electricity in the country within the next few years. The project will increase the country’s generation base by more than half.
January 17, 2023India eyes UAE’s cooperation in developing green hydrogen industry
India’s Power, New & Renewable Energy Minister R.K. Singh visited the UAE and signed a memorandum on green hydrogen development and investment with his Emirati counterpart, Energy and Infrastructure Minister Suhail Al-Mazrouei. The agreement with the UAE is seen as a step forward in implementing India’s plan to reduce India’s dependence on fossil fuels and cut import costs by 1 trillion rupees.
January 17, 2023Oil Industry Workers Stage New Round Of Strikes In Iran
Amid natural gas shortage in Iran due to the government inability to invest in production, a new wave of strikes by oil and gas industry workers has kicked off in the country with gatherings in Ahvaz, Asaluyeh, Dehloran, Shiraz, Ilam, Bandar Lengeh and Aghajari in the south and southwest of Iran. These strikes are at a time when people are also protesting the incompetence of the government to supply natural gas to households in some regions.
January 16, 2023Qatar expects natural gas markets will remain volatile for years
According to the energy minister of Qatar, natural gas markets could whipsaw for the next several years because there’s still too little supply to meet rising demand. Qatar, which vies with the US as the world’s top exporter of LNG, is investing around $45 billion to increase its production by almost 60%, but the project will not finish until 2027.
January 16, 2023Oman’s Asyad Shipping inks pact for two new LNG carriers
Asyad Shipping, a subsidiary of Asyad Group, signed an agreement with Hyundai Samho Heavy Industries to build two modern LNG carriers dedicated to meeting the growing demand for energy logistics services in anticipation of an uptick in the global demand for gas transportation. These advanced tankers will join the Asyad fleet, which includes various types of tankers and ships, including oil and gas VLCCs, bulk carriers and container ships.
January 15, 2023Iranian Oil Exports End 2022 At a High, Despite No Nuclear Deal
Despite U.S. sanctions, Iranian oil exports hit new highs in the last two months of 2022 and are making a strong start to 2023 on higher shipments to China and Venezuela. To evade sanctions, most of Iran’s crude exports to China, their biggest customer, are rebranded as crude from other countries.
January 15, 2023Kuwaiti Oil Exports Record 25% Rise To Independent Chinese Refineries
Standard & Poor’s Global Commodity Agency reported that the imports of independent Chinese refineries from Kuwait increased by 25.2% in 2022 compared to 2021, noting that Kuwait exported more than 5.5 million tons/meter in the previous year, compared to more than 4.4 million tons/meter in 2021. Kuwait’s exports to independent Chinese refineries last year ranked seventh, after Malaysia, Russia, Saudi Arabia, the UAE, Iraq and Oman.
January 15, 2023U.S., UAE Say $20 Billion Investment To Fund 15 GW In New Clean Energy
The United States and United Arab Emirates announced that the first $20 billion of their $100 billion clean energy partnership would be allocated to fund 15 new gigawatts of renewable energy projects before 2035. The investments would be led by UAE’s Masdar and a consortium of US private investors, and financed through $7 billion in private sector cash equity and $13 billion in US debt financing and other instruments.
January 15, 2023UAE Launched 11 Environmentally Friendly Energy Projects Worth $43.2 bln In 2022
The United Arab Emirates launched 11 environmentally friendly energy projects worth AED 159 billion ($43.2 billion) in 2022. The energy minister has also highlighted the launch of the UAE Energy Strategy 2050 – the country’s first unified energy strategy – which aims to integrate the renewable and clean energy mix to achieve a balance between economic needs and climate goals, in addition to reducing dependency on other fuel sources over the next three decades.
January 15, 2023UAE’s Dana Gas Says Explosive Device Was Detonated In Iraqi Khor Mor Gas Field
UAE-based Dana Gas said that an explosive device was dropped and detonated within its Khor Mor Block in the Kurdistan Region of Iraq last week. The energy firm said the detonations on Friday morning caused no injuries to people or damage to facilities, and production operations continue at the Khor Mor Gas plant as normal without interruption.
January 14, 2023Iraq Parliament Speaker: Basra-Aqaba Oil Pipeline To Be Executed Soon
Iraq’s parliament Speaker Mohammad Al-Halbousi has said that the Iraqi government will start implementing the Basra-Aqaba oil pipeline project soon. He indicated that high financial cost was the most important obstacle the Iraqi government dealt with by preparing a new low-cost study, and that all costs will be paid by Iraq because it is an Iraqi project aiming to increase its oil exports and financial revenues.
January 14, 2023UAE Energy Minister: OPEC+ Faces Oil Market Volatility In Both Supply And Demand
UAE energy minister Suhail al-Mazrouei told Asharq TV that OPEC+ is facing “volatile prospects” in oil markets both in supply and demand. He said this was due to European sanctions on Russian crude taking effect in addition to China lifting its “zero-COVID” policy, and that the UAE is taking preemptive steps to compensate for the reduced oil production capacity in some countries by bringing forward its five million barrel per day oil production capacity expansion to 2027 from a previous target of 2030.
January 13, 2023UAE And UK Sign Agreement To Enhance Clean Energy Co-operation
The UAE and UK have signed an agreement that will enable sharing of technical knowledge in clean energy, including low-carbon hydrogen and nuclear energy. The agreement was signed by Sharif Al Olama, undersecretary of the Ministry of Energy and Infrastructure for Energy and Petroleum Affairs, and UK Business Secretary Grant Shapps. The agreement will enhance strategic and technical co-operation between the nations in the energy sector and develop renewable energy technology, including regulatory frameworks and incentives.
January 13, 2023Qatar Takes FID On Huge Petrochemicals Complex
QatarEnergy announced that it has taken a final investment decision on its $6bn Ras Laffan Petrochemicals Project alongside partner Chevron Phillips (30%). The facility is being developed at the Ras Laffan industrial city in northern Qatar and is due to begin production in late 2026. The complex is centered on a 2.08mn t/y ethane cracker, which, once operational, will be the largest such facility in the Middle East.
January 13, 2023Masdar Signs Agreement to Explore Exporting Green Hydrogen from Abu Dhabi to Europe
Masdar, Port of Amsterdam, SkyNRG, Evos Amsterdam and Zenith Energy have signed a memorandum of understanding to explore the development of a green hydrogen supply chain between Abu Dhabi and Amsterdam to support Dutch and European markets.The exported green hydrogen will be delivered to key European sectors – sustainable aviation fuel, steelmaking, and bunkering for shipping – and will also be supplied to new, emerging European offtakers, via pipeline, truck and barge.
January 13, 2023Saudi Arabia’s Petromin Revives $1 Billion IPO Plan
Saudi Arabian automotive services firm Petromin is reviving plans for its initial public offering in the kingdom that could raise as much as $1 billion. The company, which is also the Middle East’s oldest lubricants firm, is working with Saudi National Bank and Moelis & Co. on the planned offering.
January 12, 2023Gulf Markets Subdued Ahead Of U.S. Inflation Data; SNB Lifts Saudi
Most major Gulf stock markets were subdued on Thursday as sentiment across markets remained frail ahead of upcoming inflation data from the United States. Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar, exposing them to direct impacts from any Fed monetary tightening.
January 12, 2023Bahrain’s Alba Awards Over 6MW Solar Farm Project To Saudi Firm
Aluminium Bahrain (Alba), one of the world’s largest aluminum smelters, has awarded its solar farm project to Advanced United Systems, to install solar photovoltaic panels over 37,000 sq m with a capacity of more than 6 megawatts. Advanced United Systems is a Saudi company and part of the Taj Holding Group that specializes in smart grid solutions, energy, and renewable energy services. The project will generate in the range of 10,539 MWHr per year and approximately 7,591,760 kilograms of carbon emissions would be reduced per year – corresponding to a total reduction of 189,794,000 kilograms of carbon emissions over a 25-year span.
January 12, 2023UAE Names Oil Company Chief To Lead UN’s COP 28 Climate Talks
Emirati authorities on Thursday nominated Sultan al-Jaber, a confidant of UAE President Sheikh Mohammed bin Zayed Al Nahyan and also serves as CEO of the Abu Dhabi National Oil Co., to preside over the upcoming United Nations climate negotiations in Dubai. Al-Jaber’s firm pumps some 4 million barrels of crude a day and hopes to expand to 5 million daily, but the Emirates’ state-run WAM news agency has noted al-Jaber’s years also serving as a climate envoy.
January 11, 2023Alba To Start Installing Solar PV Panels Over 37,000 m2
Aluminium Bahrain B.S.C. (Alba), one of the world’s largest Aluminum smelters, announced that it has awarded its Solar Farm Project towards Advanced United Systems to install Solar Photovoltaic Panels over 37,000 m2 with a capacity of more than 6 Megawatts. The Solar Farm Project will generate in the range of 10,539 MWHr per year and approximately 7,591,760 kilograms of carbon emissions would be reduced per year – corresponding to a total reduction of 189,794,000 kilograms of carbon emissions over a 25-year span.
January 11, 2023Shell Oman Signs Agreements For Syngas And LNG Offtake; Takes Stake In Green Hydrogen Project
Shell Oman has signed a Letter of Intent with Oman’s Ministry of Energy and Minerals to explore the deployment of Liquified Synthetic Gas in Oman. In another agreement, Shell Oman has taken a 35 percent stake in Green Energy Oman, the consortium that is developing the country’s largest renewable green hydrogen project. In a third agreement, Shell Oman has signed a term sheet with Oman LNG for the purchase of 0.8 million metric tonnes per year of liquefied natural gas for a period of 10 years, starting from 2025.
January 11, 2023Russia’s Putin and Iran’s Raisi Discuss Energy And Transport In Telephone Call
Russian President Vladimir Putin discussed energy and transport projects with Iran’s President Ebrahim Raisi in a telephone call. The Kremlin has said that “The presidents spoke in favor of the consistent implementation of mutually beneficial projects in the energy, transport and logistics sectors.” Moscow and Tehran have moved to forge closer relations after Russia sent tens of thousands of troops into Ukraine last February, prompting sweeping Western sanctions. Russia and Iran, which are also under Western sanctions, are among the world’s largest oil exporters.
January 10, 2023Gulf Markets Slightly Weaker As Oil Prices Slip
Gulf stock markets opened slightly in the red on Tuesday as oil prices fell. Oil prices, a key catalyst for the Gulf’s financial markets, edged lower on expectations that further interest rate hikes in the United States, the world’s biggest oil consumer, will slow economic growth and limit fuel demand.
January 10, 2023UAE’s Masdar To Develop Renewable Energy Projects In Kyrgyzstan
Abu Dhabi renewable energy firm Masdar has signed an agreement with Kyrgyzstan’s energy ministry to develop clean energy projects with a capacity to generate 1 gigawatt. The pipeline of projects will start with a 200 megawatt solar photovoltaic plant scheduled to begin operations by 2026. Kyrgyzstan is looking to reduce its greenhouse gas emissions by 44% by 2030 and achieve carbon neutrality by 2050.
January 10, 2023Qatar Moves Ahead With $6 billion Ras Laffan Petrochemicals Project
QatarEnergy announced the final investment decision with Chevron Phillips Chemical Co. to build the 2.1 million mt/year ethylene project in Ras Laffan for $6 billion, marking the company’s largest investment in petrochemicals in Qatar. Both sides agreed to establish a joint venture for the Ras Laffan petrochemicals project that will be 70% owned by QatarEnergy and 30% by Chevron Phillips. The go-ahead is the latest in a raft of projects planned by state-owned oil and natural gas companies in petrochemicals in the region as they seek to broaden the scope of their business.
January 10, 2023Kahramaa To Set Up 150 Electric Charging Stations In 2023
While continuing its sustainability practices and efforts to reduce carbon emission, the Qatar General Electricity and Water Corporation (Kahramaa), represented by the National Programme for Conservation and Energy Efficiency (Tarsheed), will set up 150 electric vehicle (EV) charging stations across the country in 2023. Engineer Mohamed Khalid al-Sharshani, head of the technical section at Tarsheed, has said that they are “looking to expand the network to 600 to 1,000 fast charging stations by 2025.”
January 10, 2023Kuwait Expected To Award Substations Contract In Q1 2023
Kuwait’s Ministry of Electricity, Water and Renewable Energy (MEW) is expected to award the engineering, procurement and construction (EPC) contract for four main substations – Rumaithiya C, Salmiya X, Egaila Entertainment Projects G and Salwa E – by the first quarter of 2023. The estimated total project value is at $70 million.
January 9, 2023Kuwait To Export Five Times As Much Diesel To Europe In 2023
Kuwait will send to Europe five times its usual shipments of diesel, around 2.5 million tonnes, this year as an anticipated ban of oil products from Russia takes effect. The EU is expected to ban Russian imports on February 5 as part of ongoing sanctions on Russia for its invasion of neighboring Ukraine.
January 8, 2023Iran’s LPG Exports Increase 86%
The value of Iran’s liquefied petroleum gas (LPG) export rose 86 percent from the beginning of the current Iranian calendar year (March 21, 2022) up to December 31, as compared to the same period of time in the past year. Iran exported $6.783 billion worth of LPG in the mentioned period to register a new record in the country’s gas exports.
January 8, 2023Iraq Approves $3bln Power Plant
OPEC member Iraq has approved the construction of a new power plant at a cost of around $3 billion. The project will be in the Southern Dhi Qar Governorate with a generation capacity of 3,000 megawatts. The project will boost Dhi Qar’s electricity output from 850 MW to 3,950 MW and will “provide a final solution to the Governorate’s power crisis.”
January 6, 2023JERA Signs Agreement With Oman LNG Project
JERA Co., Inc. has signed a key term sheet for the sale and purchase of LNG with Oman Liquefied Natural Gas LLC (Oman LNG). JERA will purchase up to 12 cargoes (approximately 0.8 million t) per year of LNG produced from the Oman LNG project from 2025 for 10 years. LNG procurement competition has been intensifying, and stable procurement of fuel in a timely manner in line with the domestic electricity supply-demand situation is thus needed to secure a stable supply of energy in Japan.
January 5, 2023ADNOC Allocates $15 Billion To Low-Carbon Projects
ADNOC announced today an investment of $15 billion in projects by 2030 that will help the state-owned energy company accelerate its low-carbon growth strategy. These projects will include investments in clean power, carbon capture and storage (CCS), further electrification of its operations, energy efficiency, and new measures to build on ADNOC’s long-standing policy of zero routine gas flaring. Together with the recent formation of the ADNOC’s new Low Carbon Solutions and International Growth Directorate, these represent tangible and concrete action as the company reduces its carbon intensity by 25% by 2030 and moves towards its Net Zero by 2050 ambition.
January 5, 2023Saudi Arabia Cuts Oil Prices For Main Market As Demand Slows
Saudi Arabia cut oil prices for Asia, signaling that demand in its main market remains sluggish, as economies slow and coronavirus cases in China surge. Saudi Arabia sells most of its oil under long-term contracts to Asia, pricing for which is reviewed each month, with China, Japan, South Korea and India being the biggest buyers.
January 4, 2023OPEC Oil Output Rises Despite Production Target Cuts
OPEC oil output rose in December despite an agreement by the wider OPEC+ alliance to cut production targets to support the market. The rise was led by recovering output in Nigeria, which has been battling with crude theft and insecurity in its oil-producing region. This output has weakened compliance with the 2 million bpd cut to OPEC+ output target announced in November 2022.
January 3, 2023Abu Dhabi Sustainability Week Hosts First Green Hydrogen Summit in Year of Climate Action for UAE
Abu Dhabi Sustainability Week (ADSW) will hold its first annual Green Hydrogen Summit on January 18th, 2023, highlighting green hydrogen’s growing importance in the global drive toward net zero. The inaugural Green Hydrogen Summit at ADSW will cover topics including, developments in hydrogen production, conversion, transport, storage, and use. It will also include high-level discussions focused on the development of the UAE hydrogen economy, the role of government and regulation, and panel sessions on a broad range of topics including innovation, sustainable finance, green energy in Africa, and hydrogen’s value chain.
January 3, 2023Iraq Oil Revenues In 2022 Exceed $115 Billion
Iraq’s oil revenues in 2022 exceeded $115 billion- a four-year high following a collapse in prices during the coronavirus pandemic. The country exported more than 1.2 billion barrels in 2022, averaging 3.3 million barrels per day.
January 3, 2023Oman’s Production Of Crude Oil, Condensates Surges 10%
Oman’s production of crude oil and condensates recorded a rise by 10% till the end of November 2022, standing at 355.473 million barrels, an increase from the previous year’s 323.174 million barrels. The average price of Oman’s crude oil surged by 52.7% till the end of November 2022 at USD 95.8 per barrel compared to $62.77 per barrel by the end of November 2021.
January 1, 2023Clean Energy Reaches 14% Of Dubai’s Total Power Production Capacity
Saeed Mohammed Al Tayer, MD and CEO of Dubai Electricity and Water Authority (DEWA), has announced that the production capacity of clean energy in Dubai has reached 2,027 megawatts (MW) using photovoltaic solar power (PV) and concentrated solar power (CSP). This is about 14 percent of Dubai’s total power production capacity of 14,517 MW. He made the announcement during his visit to the Mohammed bin Rashid Al Maktoum Solar Park, which DEWA is implementing. This is the largest single-site solar park in the world using the Independent Power Producer (IPP) model and will have a production capacity of 5,000 MW by 2030, using photovoltaic solar panels and CSP technologies.
2022December 30, 2022Iran’s First Coal-Fired Power Station Plan on Track
The construction of the first phase of Iran’s first coal-fired power plant in Tabas, South Khorasan Province, is 35% complete. The Tabas power station is expected to not contribute to air pollution as it will be equipped with advanced pollution-reduction systems. The Energy Ministry plans to build coal-fired power stations capable of producing 5,000 megawatts of power over the next two decades as Iran moves forward in its plan to diversify its sources of energy.
December 29, 2022New Law In Saudi To Enhance Energy Efficiency, Promote Low-Carbon Circular Economy
Approved by the Saudi Council of Ministers, the new Energy Supplies Law aims to privatize the energy sector, including electricity supply, oil refineries, petrochemicals, water desalination, mining, agriculture, construction and related sectors. The law stipulates the formation of a committee, with representatives of 15 bodies, to study executive regulations and approve privatization criteria. The law is also expected to have several advantages that contribute to improving the efficiency of energy supply and promote a low-carbon circular economy.
December 29, 2022Oman To Set Up Integrated Company To Manage Natural Gas Assets
Oman plans to establish an integrated gas company to manage all natural gas assets, including exports and imports of the commodity and its derivative products. The new company by Oman’s Finance Ministry is aimed at improving the country’s economic indicators by excluding gas purchase and transport costs from the general state budget. The move will “upgrade” the efficiency of the sector by recognising the net revenue from gas sales.
December 28, 2022Kuwait’s Oil Corporate Investment Put At $2.43bln
Kuwait’s state oil operator and its subsidiaries control stake in 13 local and foreign companies with a total value of around 738.5 million Kuwaiti dinars ($2.43 billion). The Kuwait Petroleum Corporation (KPC), which manages the OPEC producer’s massive hydrocarbon industry, and its affiliates own shares in two major South Korean groups and a number of firms in Kuwait, Asia and Europe.
December 28, 2022558,340 kwh Of Clean Energy Produced From Waste Generated During World Cup
As much as 558,340 kwh of clean energy was produced from the waste generated throughout the FIFA World Cup Qatar 2022. While 72% of the waste from the event was recycled, the rest was used to produce clean energy in cooperation with the Supreme Committee of Delivery and Legacy (SC) and the private sector.
December 27, 2022Oman, Japan Sign MoUs In Energy Field
Oman and Japan signed a memorandum of understanding (MoU) in the field of hydrogen, fuel ammonia and carbon recycling. The two countries also signed a third extension for a MoU in the field of crude oil, natural gas and clean energy. The first MoU aims to accelerate the Oman-Japan energy and resources cooperation and acknowledge the continued role and contribution of Oman to Japan’s energy security. The second MoU was first signed on January 9, 2014 in confirmation of the two sides’ mutual intention and desire to promote and develop cooperation in the field of crude oil, natural gas and clean energy development on the basis of reciprocal benefits.
December 26, 2022The GCC’s First Hydroelectric Power Plant Reaches 58% Completion
Dubai Electricity and Water Authority (DEWA)’s pumped-storage hydroelectric power plant site in Hatta is 58.5% complete. The station is the first of its kind in the GCC, has investments up to AED 1.42 billion, and is expected to be completed in 2024. The power plant is part of DEWA’s efforts to achieve the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050 to provide 100% of Dubai’s total power production capacity from clean energy sources by 2050.
December 26, 2022Saudi Arabia’s ACWA Power Signs $2.4bn Wind Energy PPA With Uzbekistan
Saudi Arabia’s ACWA Power has signed a power purchase agreement with the National Electric Grid of Uzbekistan to build three wind power plants in the north-western Karakalpakstan region of Uzbekistan. The agreement is valued at $2.4 billion and is expected to offset 2.4 million tons of carbon emissions per year and power 1.65 million homes.
December 26, 2022Saudi Arabia and Japan Sign Investment Agreements In The Petrochemicals And Automotive Sectors Among Others During Bilateral Forum
Saudi Arabia and Japan on Monday signed 15 strategic investment agreements spread across various industries during the Saudi Japan Investment Forum held in Riyadh. During the forum Saudi Minister of Investment Khalid Al-Falih said the two countries have bolstered their relationship as the Kingdom targets $3.3 trillion worth of investments with Japan by 2030. The Kingdom aims to become the world’s leading energy nation as the two countries intend to cooperate for a smoother energy transition.
December 25, 2022Saudi Arabia, Japan Sign Agreements On Circular Carbon Economy, Clean Hydrogen, Fuel Ammonia
Saudi Arabia and Japan signed a memorandum of cooperation (MoC) on Sunday in the fields of the circular carbon economy, carbon recycling, clean hydrogen and fuel ammonia. Under the two memoranda of cooperation, the two countries will accelerate the use of hydrogen in transport, promote research and development of hydrogen and fuel ammonia technologies and their use at the local, bilateral, regional and international levels.
December 23, 2022Yemen And Masdar Signs Agreement To Build 120 MW Solar Power Plant In Aden
Yemen’s Ministry of Electricity and Energy signed an agreement with Abu Dhabi Future Energy Company, Masdar, to provide the interim capital, Aden, with a solar power plant with a total capacity of 120 megawatts.
December 22, 2022Germany’s Uniper And Masdar To Build Green Hydrogen Plant In UAE
Masdar’s executive director for clean energy, Mohammad Abdelqadar El Ramahi, said in an interview that Germany’s Uniper SE is teaming up with Masdar, one of the Middle East’s biggest renewable-energy firms, to make green hydrogen in the United Arab Emirates. The two companies will build a plant that will run on almost 1.3 gigawatts of solar power and is expected to produce hydrogen from 2026. Uniper’s shareholders agreed to a €33 billion ($35 billion) rescue this week that will lead to the utility’s nationalization and avoid its collapse following a surge in natural-gas prices in the wake of Russia’s invasion of Ukraine. The German government expects Uniper to strengthen its climate targets in the coming years.
December 22, 2022QatarEnergy Signs Agreement With QPD To Continue Al-Karkara And A-Structures Offshore Fields Development, production
QatarEnergy and Japan’s Qatar Petroleum Development Company (QPD) signed a new agreement for the continued development and production of the Al-Karkara and A-Structures oil fields, located in the territorial waters of Qatar. The new five-year agreement, which commences on December 23 succeeds the development and production sharing agreement signed in December 1997. Under the new agreement, QPD will continue to act as the operator of the oil fields. The fields started production in March 2006, and since then have produced a total of 33.5mn barrels of crude oil.
December 21, 2022Opec+ To Remain ‘Proactive’ Amid Oil Market Uncertainty, Saudi Energy Minister Says
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said in an interview with official news agency SPA that OPEC+ will remain “proactive” as global oil markets face uncertainty, “In face of a wide range of uncertainties, OPEC+ has no choice but to remain proactive and preemptive, and this is not an easy task, especially that the market has the tendency to overreact to news in both directions.”
December 21, 2022TotalEnergies Raises The Bar With Its Renewable Ambition In Saudi Arabia
On December 19, Frence’s TotalEnergies announced the commencement of Saudi Total Petroleum Products Co.’s solar project of installing a rooftop system on its lubricants blending plant, located at King Abdullah Economic City’s Industrial Valley. The solar system will be implemented by a joint venture named Saudi French for Energy Efficiency and Renewables, established in 2021 by the Jeddah-headquartered Zahid Group and French energy company TotalEnergies. In line with the renewable energy goals of Vision 2030, TotalEnergies is aiming to be a world-class player in the energy transition by becoming a multi-energy company.
December 20, 2022OPEC Fund Approves Over $500m In New Global Development Support
On December 20, OPEC Fund for International Development (OFID) has approved more than $500m in new financing at the most recent meeting of its governing board and in the final quarter of 2022. The 15 new projects approved reflect OPEC Fund’s launch of a $1bn food security action plan and the adoption of its first dedicated climate action plan. The OPEC Fund Governing Board approved projects in the following countries: Niger, Bangladesh, Uzbekistan, Tanzania, Benin, Liberia, Cote d’Ivoire, Kyrgyzstan, Madagascar, Mauritania, Botswana.
December 18, 2022SABIC, Aramco, Sinopec To Assess Viability Of Developing Petrochemical Complex
Saudi Basic Industries Corp. has signed a memorandum of understanding with energy giant Saudi Aramco and China Petroleum & Chemical Corp., known as Sinopec, to assess the economic and technical feasibility of developing an integrated petrochemical complex with an existing refinery in Yanbu. Apart from the deal with SABIC, Sinopec, in December, also signed a framework agreement with Saudi Aramco to build a Phase II 16 million-ton-a-year refining project and 1.5 million-ton-year ethylene units in Gulei, Fujian. Aramco said the announcements support its role as a reliable energy supplier to China as the company seeks to expand its liquids to chemicals capacity to up to 4 million barrels per day by 2030.
December 17, 2022Iran Says Enriched Uranium Capacity Hits Record
Iran said Saturday its uranium enrichment capacity has increased to record levels, a day before United Nations nuclear monitors are set to visit the country. Mohammad Eslami, head of the Atomic Energy Organization of Iran said, “Currently, the enrichment capacity of the country has reached more than twice the entire history of this industry,” The International Atomic Energy Agency will send a technical team to try to resolve a deadlock over the detection of traces of radioactive material at sites not declared as having hosted nuclear activities. The issue has hindered efforts to revive a 2015 nuclear deal between Iran and major powers.
December 16, 2022Aramco, TotalEnergies Invest $11 Billion In New Oil Complex In Saudi Arabia
Aramco and TotalEnergies are joining forces and investing $11 billion to build a new petrochemicals complex in Saudi Arabia. Aramco is funding 62.5% of the project whilst TotalEnergies is funding the other 37.5%. The complex will be operated by both companies and will be integrated into the Saudi Arabia Total Refining and Petrochemicals (SATORP) and will be located in Jubail. This venture will open up 7,000 new jobs in Saudi Arabia and comes in light of the Russia-Ukraine war which has provided Saudi Arabia with the opportunity to “strengthen its position in the oil sector”. The kingdom has also been investing in other places, such as South Korea.
December 14, 2022Aramco Partners With US Software Company For Carbon Capture Tech
Aramco has partnered with US-based Aspen Technology to introduce practical and economic solutions for carbon capture and utilization (CCU). The technology was developed as a part of a collaboration between Aramco and Korea Advanced Institute of Science & Technology (KAIST). By considering economics, process design and operations constraints and CO2 reduction, the technology aims to address the identification of the best CCU paths.
December 14, 2022Hungary To Start Talks With Qatar About Buying LNG -Foreign Minister
Hungary and Qatar agreed that Hungary’s energy group, MVM, and Qatar’s QatarEnergy will begin talks about the latter supplying Hungary with liquefied natural gas (LNG) within the next three years. Qatar is currently one of the world’s top LNG exporters and several European states have already been in talks with Qatar in an effort to reduce their reliance on Russian energy supplies. This agreement would also require the European Union to expand the capacity of the continent’s Southern LNG terminals.
December 13, 2022Saudi’s PIF Acquires Up To 9.5% Stake In Skyborn Renewables
Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF) has announced the acquisition of up to 9.5% of Skyborn Renewables, alongside Global Infrastructure Partners. Skyborn is an offshore wind developer and operator that has projects in Germany, France, and Taiwan. Through this acquisition, PIF is involved in the acceleration of energy transition and clean energy at an international scale. PIF has also been investing in the low carbon sector in an effort to develop 70% of the kingdom’s renewable energy by 2030. It comes in light of the fund investing in other renewable energy companies such as ACWA and Sudair and Al Shuaibah Solar Energy Projects.
December 13, 2022UAE To Open Facility That Converts Waste To Green Hydrogen
Sharjah-based sustainability group, BEEAH, signed an agreement to build the United Arab Emirates’ first waste-to-hydrogen power plant. The memorandum of understanding was signed between BEEAH, Air Water (a Japanese gas conglomerate), and Chinook Sciences (a British waste-to-fuel technology firm). The goal is to create a facility that will convert waste wood and plastic to hydrogen which will then be used for fuel. This agreement is reflective of UAE’s policy of moving towards green technology, away from oil and gas.
December 13, 2022Saudi Arabia Will Host The Middle East’s Largest Solar Facility
Saudi Arabia’s Water and Electricity Holding Company (Badeel), a subsidiary of the Public Investment Fund (PIF), and ACWA Power have signed power purchase agreements to develop the largest solar energy plant in the Middle East. The 2,060 MW plant is to be built in Al Shuaibah and is expected to be operational by 2025. The electricity generated from this solar energy plant will be sold to the Saudi Power Procurement Company and is expected to power 350,000 homes. Yazeed A. Al-Humied, head of MENA Investments at PIF, said in a statement, “This marks a key achievement toward PIF’s commitment to develop 70% of Saudi Arabia’s renewable energy by 2030.”
December 12, 2022Aramco ‘In Talks’ With Investors On $110bn Jafurah Gas Project
Aramco has begun talks with investors for the new Jufarah gas development project to fund the midstream and downstream projects there. The Jufarah gas project is an ambitious attempt by Saudi Arabia to diversify their energy exports. Aramco has reached out to large funds and private equity firms that would be able to offer stakes in projects such as carbon capture and storage. The company will use the gas produced in the Jufarah gas field to create blue hydrogen that will be exported as a clean energy source. The war in Ukraine has led to European countries looking to the Gulf for oil and gas supplies, causing the Gulf states to embark on ambitious projects to expand their oil and gas output, such as this one.
December 12, 2022Aramco, Shandong Energy to collaborate on projects in China; cooperation across H2, renewables and carbon capture technologies
Aramco and Shandong Energy signed a Memorandum of Understanding (MoU) regarding petrochemical and refining opportunities in China. The memorandum consisted of a potential crude oil supply and chemicals product offtake agreement. Their collaboration also extends to future cooperation in the sectors of hydrogen, renewable energy, and carbon capture technologies. The MoU comes in the context of the summit of Gulf Arab leaders in Riyadh where Chinese President Xi Jinping said that China would buy oil and gas in yuan, which is seen as an attempt to weaken the hold of the US dollar on world trade. This agreement is also in the context of various other energy-related deals signed between the two countries.
December 11, 2022Aramco Gulf Operations, Kuwait’s KGOC Agree To Develop Durra Gas Field, Saudi News Agency Reports
It was reported that Saudi Aramco Gulf Operations Company signed a Memorandum of Understanding on Sunday with Kuwait Gulf Oil Company (KGOC) to develop the joint Durra gas field. Its result is supposed to be producing 1 billion cubic feet of gas and 84,000 barrels of liquefied gas per day.
December 9, 2022Saudi ACWA Power Signs Deals With 9 Chinese Entities On Clean Energy, Renewables
Saudi Arabia’s ACWA Power signed agreements with 9 Chinese entities on matters related to clean energy and renewables. These agreements will lay the foundation for the “financing, investment and construction” of ACWA Power’s clean and renewable energy projects. The memorandums of understanding were signed during the 1st China Arab Summit and it comes in light of Saudi Arabia and China signing deals in several sectors including green energy and information technology amongst others. The Chairman of ACWA Power said, “we are in a unique position to support both the energy transition and economic transformation envisioned by Saudi Arabia’s forward-looking and iconic Vision 2030, as well as China’s Belt and Road initiative.”
December 9, 2022Gulf Producers Lead On OPEC+ Cuts, Saudi Crude Output At 6-month Low: Platts Survey
The OPEC+ oil producer alliance decreased their output by 700,000 barrels per day in November; this was a move conducted by 14 out of the 22 countries in the coalition and was the steepest decrease since April of this year. Additionally, the Saudi Energy Minister argued that the major oil producers were dedicated to maintaining the current quotas. Whilst countries like Iraq and the UAE cut their oil output, there was an increase in oil production in places like Kazakhstan, Nigeria and Russia. The goal for 2023 is therefore to make sure that the OPEC+ Alliance keeps the quotas steady.
December 9, 2022Oman Minister Says Oil Producers Are Uneasy Over Russia Price Cap
Oman’s energy minister has said that there is a great amount of unease amongst oil-reliant economies over the cap that the Group of Seven put on the price of Russian barrels. There has been a price ceiling placed on Moscow’s oil exports. This is significant because the restrictions will lead to overall less investment in global oil production. OPEC+ have also agreed to keep production steady at 2 million barrels a day.
December 8, 2022Saudi and Chinese Companies Sign 34 Investment Agreements
Saudi and Chinese companies signed 34 investment agreements that covered several sectors in the field of energy, including “green energy, green hydrogen, photovoltaic energy, information technology, cloud services, transportation, logistics, medical industries, housing and construction factories.” These agreements were signed during China’s President Xi Jinping’s visit to Saudi Arabia. The Saudi Minister of Khalid bin Abdulaziz Al-Falih said that this agreement is a reflection of the two countries’ “keenness” to develop and strengthen existing relations in all fields. This investment agreement also comes in light of Saudi’s Vision 2030 which aims to offer investment opportunities in many different sectors including those of energy.
December 8, 2022Oil Prices Fall To Lowest Since January Despite Saudi-backed Production Cut
Oil prices have fallen to a yearly low despite Saudi Arabia’s efforts to cut oil production. The OPEC+ alliance met on December 4th and agreed to keep oil production to 2 million barrels per day. Despite the decrease in oil production, which should in theory lead to increased oil prices, there was a fall in oil prices. Simon Henderson of the Washington Institute for Near East Policy said that this was “related to the global economy” and that it could reflect “market anxieties about the prospect of a recession.” However analysts argue that it is not going to cause a collapse in oil prices as it did in 2020 when there was a price war between Russia and Saudi Arabia which led to massive oil price drops.
December 8, 2022Abu Dhabi’s ADNOC, TAQA And Mubadala Complete Deal To Acquire Masdar Stakes
Abu Dhabi National Energy Company (TAQA), Mubadala Investment Company (Mubadala) and Abu Dhabi National Oil Company (ADNOC) have completed a deal with Masdar where they will become shareholders in the Abu Dhabi-based clean energy company. This will result in Masdar’s growth as it will expand and cover “renewable power, green hydrogen and other enabling clean energy technologies, a statement said.” It is an effort to help the UAE reach its Net Zero by 2050 strategic initiative and to meet the world’s demand for clean energy. With this partnership, Masdar’s target for renewable energy capacity is 100GW and it aims to increase production of green energy to one million tons by 2030.
December 7, 2022Saudi Arabia Expects Narrower 2023 Surplus as Uncertainty Clouds Oil Outlook
Saudi Arabia is expected to have a budget surplus in 2023 but it is 84% lower than that of this year due to “uncertain global economic outlook and lower crude prices.” The budget of 2023 will be 1.114 trillion-riyals ($296 million) with a surplus of 0.4%. The surplus is to be used “to boost government reserves, support state funds, like PIF, and strengthen the kingdom’s financial position,” as was said by Crown Prince Mohammed bin Salman. Furthermore, Monica Malik, chief economist of the ADCB claims that the economic impact of this reduction in surplus is to be “limited”. The country has exhibited restraint fiscally following the COVID-19 pandemic where oil prices “collapsed”. However, due to rising oil prices, Saudi Arabia was able to have its first budget surplus this year since 2013.
December 6, 2022Adnoc to set up new vertical in decarbonisation push
Adnoc is hastening its decarbonisation strategy by setting up a new low carbon solutions and international growth vertical. The new vertical will focus on renewable energy, clean hydrogen and carbon capture and storage, as well as international expansion in gas, liquefied natural gas (LNG) and chemicals. Adnoc has set a new methane emissions target for its upstream unit as part of its efforts to reduce its overall greenhouse gas emissions. The state-owned oil company is aiming for the “Middle East’s lowest” methane intensity target of 0.15 per cent by 2025.
December 6, 2022Global renewable capacity to double over next 5 years as energy crisis deepens: IEA
Global renewable power capacity is expected to double over the next five years primarily driven by energy security concerns caused by Russia’s invasion of Ukraine, according to the International Energy Agency. In its annual report on the outlook of renewables, the organization noted that the capacity of renewables globally is expected to grow by 2,400 gigawatts over the 2022-2027 period, an amount equal to the entire power capacity of China today. According to the report, Europe is leading the energy transition from the front as EU nations are looking to rapidly replace Russian gas with alternatives post the conflict in Ukraine. The report added that countries like China, US and India are implementing policies and introducing regulatory and market reforms to combat a possible energy crisis.
December 5, 2022Saudi Arabia sets Jan Arab Light prices to Asia at 10-mth low
Saudi Arabia cut the January official selling price (OSP) for its flagship Arab Light crude for Asian buyers to a 10-month low, on concerns over faltering demand and a potential increase in Russian competition. The OSP for January-loading Arab Light to Asia was trimmed by $2.20 a barrel from December to $3.25 a barrel over Oman/Dubai quotes. The new OSP is just above the previous low of $2.80 per barrel, set for March 2022. Although the market remains cautious on lifting Russian crude as the price cap is just set, it is unlikely that more cargoes will flow to Asia and compete with the Middle Eastern crude.
December 5, 2022Saudi Arabia explores opportunities with Netherlands on energy, circular economy in key meeting
Senior officials and business leaders from Saudi Arabia and the Netherlands have met to discuss potential collaborations regarding the energy and circular economy fields. The meeting also shed light on potential opportunities in the Kingdom, specifically in addition to discussions on the development in the labor market and women’s participation in the workforce.
December 4, 2022OPEC+ maintains status quo on output amid fresh price cap on Russian oil
OPEC+ has agreed to roll over its existing output policy, just a day after the Group of Seven nations decided to put a price cap on Russian energy supplies. The decision was made at the 34th OPEC and non-OPEC Ministerial Meeting, which was held virtually, on Dec. 4, 2022. OPEC+’s key ministers will next meet on Feb. 1 for a monitoring committee while a full meeting is scheduled for June 3-4.
December 3, 2022Iran Increases Gas Exports to Iraq After Payment Settlement
Iraq has settled all payments related to purchases from the National Iranian Gas Company according to the Iranian oil minister. Last year they received about €1 billion [$1.05 billion] and this year €1.6 billion [$1.685 billion] from Iraq regarding its gas debts to Iran. The volume of gas exports to Iraq since the beginning of the current Iranian year [started March 21] has increased by 1.5 billion cubic meters compared with the same period of last year. Iraq has secured special waivers from the US sanctions on Iran to be able to import natural gas and electricity from its eastern neighbor.
December 2, 20227.3 Billion Tons of Potential Phosphate Reserves in Saudi Arabia
The world will need to increase the production of some types of minerals by 500% to meet the future demand for clean energy, according to Saudi Vice Minister of Industry and Mineral Resources for Mining Affairs Khalid Saleh Al-Mudaifer, during the Mines and Money conference in London. Saudi Arabia has become one of the most prominent countries in the field of producing phosphate fertilizers, with potential reserves of phosphate amounting to 7.3 billion tons. The World Bank estimated that there is a need for more than 3 billion tons of minerals and metals.
November 29, 2022Germany to get new Qatari LNG flows through QatarEnergy, ConocoPhillips deal
Germany is set to receive new flows of Qatari liquefied natural gas from 2026 after QatarEnergy and ConocoPhillips signed two sales and purchase agreements for its export covering at least a 15-year period. This comes as a result of sanctions placed on Russian LNG, on which European countries were heavily reliant. This new venture will help ease the potential energy crisis that Germany is facing and strengthens ties with Qatar.
November 28, 2022Kuwait’s $6.3 bln clean energy projects under implementation
Kuwait has clean energy projects worth $6.3 billion under implementation, while it has only 0.5% of the installed clean energy capacity. A report also indicates that Kuwait has multiple projects which are still in the “study phase” which bodes well for future clean energy endeavors. Amid global economic decline, however, it is understood that their spending on these projects may not be as aggressive as they look to take the most economically suitable approach.
November 24, 2022SABIC and Aramco plan to start crude-to-petrochemicals project in Ras Al-Khair
SABIC is planning to start a joint project with Saudi Aramco to convert crude into petrochemicals. As oil receives strong demand, the Saudi energy minister confirmed that this venture will accelerate growth by 60% until 2040. This strategy is currently in its final stages and it includes building an important chain from basic petrochemicals to specialized petrochemicals. The system aims to convert about 4 million barrels of crude and liquids into petrochemicals for local projects. Aramco has been working to commercialize crude to chemicals technologies as part of the strategy to position itself as a preeminent player in the global petrochemicals industry.
November 23, 2022Saudi listed firms’ net profit soars 32% as energy, banking sectors shine
Energy firms and banks helped fuel a 32 percent year-on-year rise in aggregate profits for listed companies in Saudi Arabia in the third quarter of 2022. Companies operating in the Kingdom’s energy sector witnessed the maximum profit during the third quarter at $41.2 billion, driven by crude oil prices and volumes sold. UAE-listed companies were the only others in the region to record higher profits for the quarter. GCC companies net profits continued to show growth in the third quarter of 2022 and were up by almost a quarter to reach $70.7 billion as compared to $57.2 billion during the same period in the previous year. These reports further establish the strength of GCC states economically and especially in the energy sector.
November 23, 2022Masdar agrees to build 100MW solar PV plant in Turkmenistan
Masdar has signed a joint development agreement (JDA) with Turkmenistan’s state-owned power company Turkmenenergo to build a 100MWac solar photovoltaic (PV) plant. The two companies agreed to explore development and investment opportunities in solar and wind power projects on a public-private partnership basis. This development aims to reduce Turkmenistan’s dependence on hydrocarbons and strengthen their energy infrastructure.
November 22, 2022Oil rises 1% as OPEC+ focus on supply cuts outweighs recession concerns
Oil prices rose about 1% on Tuesday after top exporter Saudi Arabia said OPEC+ was sticking with output cuts and could take further steps to balance the market. However, prices pared gains late in the session after Bloomberg reported that the European Union watered down its latest sanctions proposal for a price cap on Russia’s oil exports by delaying its full implementation and softening key shipping provisions. In focus later will be the latest weekly snapshots of supply in the United States, which are expected to show crude inventories fell by 2.2 million barrels.
November 22, 2022Iran to enrich Uranium to 60 percent purity at Fordow nuclear site
Iran has begun enriching uranium to 60 percent purity at its underground Fordow nuclear site. This is one of many sites where Iran has pursued nuclear development, directly defying the IAEA. Iran are currently being urged to comply with western demands, as they claim that their current ventures violate the agreements signed at the 2015 nuclear pact. Iran responded with claims that these investigations are politically motivated, and that they are not violating any treaties.
November 21, 2022Saudi energy minister denies output increase discussion
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman has denied recent reports stating that the Kingdom is currently discussing an increase in production by 500,000 barrels per day with other OPEC+ producers. He affirmed that it is clear OPEC does not discuss any decisions before its meetings. The UAE energy minister affirmed that his country is “engaging in any discussion with other OPEC+ members to change the last agreement which is valid until the end of 2023.” OPEC remains committed to maintaining balance in the oil markets and global economy.
November 20, 2022Saudi Arabia’s Crown Prince visit Thailand to ink landmark deal on energy
The kingdom’s crown prince visited Thailand to encourage hopes of a productive and permanent relationship between the two countries. After 30 years of no diplomatic relations, ties were regained when Thai Premier Prayuth Chan-ocha trip to Riyadh at the beginning of the year. This meeting presented several deals on energy, tourism as well as normalizing diplomatic ties, Thais who give info to Arab News stated that it was vital to them on a personal level as well.
November 18, 2022Oil slides on China demand concerns, easing supply worries
Oil fell around 2 percent on Friday and was on track for a second weekly decline, pressured by concern about weakening demand in China and further interest rate rises by the US Federal Reserve. China, which sources say is looking to slow crude imports from some exporters, has seen a rise in COVID-19 cases, while hopes for the moderation of aggressive US rate hikes have been dented by remarks from some Fed officials this week. Brent crude was down $1.80, or 2 percent, at $87.98 a barrel by 1325 GMT, having touched $87.86 earlier, the lowest since Oct. 3. US West Texas Intermediate (WTI) crude was down $1.52 or 1.9 percent at $80.12. OPEC+, which began a new round of supply cuts in November, holds a policy meeting on Dec. 4.
November 17, 2022S. Korea, Saudi Arabia agree to boost energy and defense ties
The leaders of South Korea and Saudi Arabia agreed Thursday to boost ties in key sectors such as energy and defense, with the oil-rich kingdom signing a slew of deals including a $6.7 billion petrochemical agreement. During the visit, the two governments and companies from both countries — including some of Seoul’s top conglomerates — signed about 20 deals in areas from agriculture to railways. Among the agreements was Saudi investment for South Korean refiner, S-OIL’s Shaheen project, which would build petrochemical production facilities in South Korea worth $6.7 billion.
November 16, 2022OPEC Sec Gen says organization is ready to intervene for the benefit of oil markets
OPEC Secretary General Haitham al-Ghais said on Wednesday that the organization is ready to intervene for the benefit of oil markets, Saudi-owned Al-Arabiya TV reported. Ghais also said that Organization of the Petroleum Exporting Countries (OPEC) is aware, cautious and monitoring economic developments worldwide.
November 13, 2022Saudi Arabia has ‘green vision’ at COP27, critics unmoved
“We have hugely ambitious goals and targets,” Saudi climate envoy Adel al-Jubeir said at the two-day Saudi Green Initiative Forum on COP27′s sidelines. “We want to be an example to the world in terms of what can be done.” The effort is part of a large push by Saudi Arabia to make the case that the nation should be part of the transition to renewable energies while holding on to its role as the top global crude oil exporter. Saudi Aramco plans to build the world’s biggest carbon capture and storage hub, which will store up to 9 million tons of carbon dioxide when its up and running in 2027.
November 11, 2022Kuwait Reshuffles Oil & Gas Sector Leadership
Kuwait Petroleum Corporation (KPC) CEO Sheikh Nawaf Saud Al Sabah has reshuffled the leadership of the state umbrella firm’s subsidiaries. The move comes six months after his appointment to the role and just weeks after a new oil minister was appointed. Back in February 2021, some of the subsidiaries were given the same CEOs in order to facilitate their subsequent merging, but now those plans have been ditched. Kuwait’s two domestic upstream firms, KOC and KGOC once again have separate CEOs, as do Kuwait’s two domestic downstream firms, KNPC and Kipic.
November 11, 2022Saudi Aramco partners with energy ministry to establish carbon capture and storage hub
Saudi Arabian Oil Co., one of the biggest oil producers in the world, has joined hands with the Kingdom’s energy ministry to establish a carbon capture and storage hub as Saudi Arabia steadily progresses to achieve its net-zero ambition by 2060. During the speech, Saudi Aramco CEO Amin Nasser said that the new CCS hub would be located on the east coast of Saudi Arabia in Jubail. According to Nasser, the hub will have a storage capacity of up to 9 million tons of carbon dioxide a year by 2027.
November 11, 2022Saudi Arabia announces 13 new renewables projects in latest move towards net-zero
Thirteen new renewables projects are currently under development, the Kingdom’s Minister of Energy Prince Abdulaziz bin Salman announced as the country pushes towards its goal of achieving net-zero by 2060. The projects have the capacity of 11.3 Gigawatts and the ability to reduce approximately 20 million tons of carbon emissions per year. The past year alone, Saudi Arabia has managed to reduce emissions by about one million tons.
November 10, 2022Saudi Aramco, Energy ministry sign agreement to establish a carbon capture and storage hub
Saudi Aramco signed a joint development agreement in partnership with Saudi Arabia’s Energy ministry to establish a carbon capture and storage hub which will potentially be able to safely store up to 9 million tonnes of carbon dioxide a year by 2027. This is a major step in the development of safer fuel alternatives.
November 9, 2022UAE’s Biggest Clean-Energy Firm to Look at Deals in US, Europe
In an effort to achieve a net zero carbon production, the UAE’s largest renewable energy company will make acquisitions and sell bonds as part of a plan to more than double its operations. Masdar, an Emirati company, plans to acquire foreign power firms in an ambition to reach 100GW of production, versus its current rate at 20GW. Additionally, the company has incorporated the development of nuclear, hydrogen, and other eco friendly energy sources in their expansion plans.
November 8, 2022Bahrain announces two new natural gas discoveries
Bahrain has announced two natural gas discoveries in the Al-Joubah and Al-Jawf reservoirs. However, officials have not disclosed the potential of these reserves to the public. It is likely that this discovery will benefit the nation as they deliberate a new plan within the next six months.
November 8, 2022COP27: UAE and Egypt agree to build one of world’s biggest wind farms
An agreement between the Presidents of the UAE and Egypt will see the development of one of the world’s largest wind farms. This is a venture initiated by UAE energy company Masdar, and is projected to produce 47,790 GWh of clean energy annually and offset 23.8 million tonnes of carbon dioxide emissions, equivalent to around 9% of Egypt’s current CO2 emissions. The project further cements the UAE as a leader in reducing carbon emissions, and progresses Egypt’s goal of net-zero carbon emissions.
November 8, 2022Saudi Arabia Signs Energy MoUs with Egypt, Oman
Saudi Arabia has signed two MoUs with Egypt and Oman in an effort to expand operations involving renewable energy, transport of clean hydrogen transport, and electrical interconnection. The agreement with Egypt also encourages digital transformation, innovation, cyber-security, and artificial intelligence. The Saudi minister of Energy and his Omani counterpart, Minister of Energy and Minerals Salem bin Nasser Al-Awfi, signed an MoU for energy cooperation, which includes strengthening cooperation in renewable energy, electricity, energy efficiency and hydrogen, applying the circular carbon economy approach to reduce the effects of climate change, and developing standards to support the use of sustainable materials.
November 8, 2022UAE’s Biggest Clean-Energy Firm to Look at Deals in US, Europe
In an effort to achieve a net zero carbon production, the UAE’s largest renewable energy company will make acquisitions and sell bonds as part of a plan to more than double its operations. Masdar, an Emirati company, plans to acquire foreign power firms in an ambition to reach 100GW of production, versus its current rate at 20GW. Additionally, the company has incorporated the development of nuclear, hydrogen, and other eco friendly energy sources in their expansion plans.
November 7, 2022Kuwait says to become carbon neutral in oil and gas by 2050
Kuwait is committed to becoming carbon neutral in the oil and gas sector by 2050 and in the whole country a decade after that. This is an important step following announcements made by UAE, Saudi Arabia, and other GCC states who have adopted a net-zero carbon production plan for the future. This announcement came as a result of the COP27 climate summit in Egypt which experts hope will create a trend of carbon-conscious operations.
November 6, 2022Kuwait appoints new CEOs for state oil companies
Ahmed Jaber al-Aydan was appointed as CEO of Kuwait Oil Company, and Wadha al-Khateeb as CEO of Kuwait National Petroleum Company. New leaders were also chosen for Kuwait Integrated Petroleum Industries Company (KIPIC) and other state companies in the sector.
November 6, 2022Saudi energy ministry approves feedstock allocation for Alujain’s $2bln petrochemical project
Saudi industrial group Alujain Corporation announced on Sunday that it has received the Ministry of Energy’s nod on feedstock allocation for establishing a new petrochemicals project in Yanbu Industrial City at a total cost of 7.5 billion Saudi riyals ($2 billion). The project, upon completion, will produce more than 600,000 tonnes/year of polypropylene, polypropylene compounds, and specialized construction materials from polypropylene derivatives, in addition to about 25,000 tonnes/year of saleable hydrogen.
November 4, 2022ADNOC, Baker Hughes Sign Agreement To Explore New Technology for a Clean Energy Future
Baker Hughes, an energy technology company, and the Abu Dhabi National Oil Company (ADNOC) signed a strategic technology collaboration agreement during ADIPEC 2022 to explore collaboration opportunities around research and development (R&D) for technologies that can help drive a sustainable energy future in the UAE. “ADNOC is accelerating the development and deployment of advanced technologies to provide smarter, lower carbon, energy to the world. Together with Baker Hughes, we will focus on finding innovations that help the UAE achieve its Net-Zero by 2050 strategic initiative, while also generating In-County Value,” said Sophie Hildebrand, ADNOC Group Chief Technology Officer.
November 3, 2022Moody’s upgrades Qatar outlook on higher energy prices
Ratings agency Moody’s has upgraded Qatar’s credit outlook to positive from stable, citing higher energy prices expected to bring significant budget surpluses that will help the Gulf state to manage its medium-term debt profile. “The change of outlook to positive reflects the prospect that the improvement in Qatar’s debt metrics, observed in 2021-22 as a result of elevated energy prices, can be sustained in the medium term even if oil and natural gas prices moderate over the next few years,” Moody’s said. High energy prices have so far translated into a budget surplus of almost 50 billion Qatari riyals ($13.7 billion), the Emir Sheikh Tamim bin Hamad al-Thani.
November 3, 2022Kuwait’s Kufpec offers LNG cargo from Australia’s Wheatstone plant
Kuwait Foreign Petroleum Exploration Co (KUFPEC) has issued a tender offering a liquefied natural gas (LNG) cargo for loading in Australia in December. The cargo is offered on a free-on-board (FOB) basis from the Wheatstone plant in Australia for Dec. 19 to 24 loading. KUFPEC, the foreign energy exploration arm of Kuwait, is a stakeholder in the Chevron-operated Wheatstone LNG project.
November 2, 2022Iran To Sign $40 Billion Deal With Russian Gas Giant
A senior Iranian diplomat was quoted saying that Iran expects to sign an energy agreement with Russian gas giant Gazprom worth around $40 billion. “We have concluded an agreement worth about $6.5 billion with Gazprom. We hope that the remaining agreements totalling to $40 billion will be signed (in December). The negotiations are currently ongoing,” said Mahdi Safari, Iranian Deputy Foreign Minister for Economic Diplomacy. Iran’s Petroleum Minister Javad Owji said at the bilateral forum that the public and private sectors in both countries are looking to “neutralize the sanctions.”
November 1, 2022US, UAE sign deal on $100 bil global investment in clean energy to 2035
The US and the UAE have signed an agreement that will help galvanize $100 billion in investments to develop 100 GW of clean energy globally by 2035, as the two oil producers seek to boost their renewables portfolios amid net zero emissions targets. “The US-UAE Partnership for Accelerating Clean Energy (PACE) is set to catalyze $100 billion in financing, investment, and other support and to deploy globally 100 gigawatts of clean energy by 2035 to advance the energy transition and maximize climate benefits,” the White House said in a Nov. 1 statement. The White House reflected on the need to bridge the gap between developed and developing countries in the investment in and deployment of clean energy, stating that the two countries intend to work together to prioritize commercial projects in developing and low-income countries as well as provide them technical and financial assistance.”
November 1, 2022Opec says $12.1 trillion investments required for oil industry until 2045
Opec has called for $12.1 trillion worth of investments in the oil industry over the next two decades to meet the rising demand for hydrocarbons, at least until the middle of the century. “If $12.1 trillion investment isn’t realised (by 2045), consequences could be severe” Opec secretary general Haitham Al Ghais told the ADIPEC conference, adding that the crisis could be more severe than that being witnessed today. Opec believes that global oil demand could rise from almost 97 million barrels per day in 2021 to around 110 million bpd in 2045.
November 1, 2022OPEC Sec Gen: Oil investment lag sowing seeds for future energy crises
OPEC Secretary General Haitham Al Ghais said that he world must act swiftly to invest in oil to prevent future energy emergencies as global demand for the hydrocarbon grows in the long term. “If we don’t get it right this time we are sowing the seeds for future energy crises – not just one, but multiple.” He added that “We are already hearing messages coming out of all the industry leaders and policymakers about the importance of investing in the oil sector. They realize now that the lack of investments over the past few years is a big part of why we are in the situation we are in today.” He said that OPEC’s key message is that the world will continue to require oil in the long term.
October 31, 2022OPEC Says World Can’t Live Without Oil, Demand Will Keep Rising
OPEC held firm to projections that global oil demand will keep growing for another decade, and said it would be dangerous to abandon fossil fuels. It said in its annual World Oil Outlook that oil consumption will climb by 13% to reach 109.5 million barrels a day in 2035 and hold around this level for another decade. OPEC Secretary-General Haitham Al Ghais reiterated the warning given at last year’s climate talks that a complete break with hydrocarbons is “potentially dangerous to a world that will continue to be thirsty for all energy sources.”
October 31, 2022Saudi Arabia, UAE defend oil production cuts as US warns of ‘economic uncertainty
Saudi Arabia and the United Arab Emirates defended the decision by OPEC and its allies to cut oil production, even as an American envoy warned of “economic uncertainty” ahead for the world. Emirati Energy Minister Suhail al-Mazrouei said that OPEC and its allies are “only a phone call away if the requirements are there” to raise production and that “the United Arab Emirates, as well as [their] fellow colleagues in OPEC+ are keen on supplying the world with the requirement it needs,” although “at the same time, we’re not the only producers in the world.”
October 27, 2022Saudi Aramco launches $1.5 billion fund, says energy transition plan flawed
Saudi Aramco launched a $1.5 billion fund to support an inclusive global energy transition, as the switch from hydrocarbons could take decades, Saudis announced. These investments take place amid criticisms from SaudI Arabia and OPEC+ criticisms that there is an overall underinvestment in energy transitions. As of today, the current transition plan is flawed, and today alternatives are not ready to shoulder a heavy load of the growing energy demand and therefore we need to work in parallel until alternatives are ready, ARAMCO CEO claims. This new sustainability investment will target specific ventures globally, such as carbon capture and storage, greenhouse gas emissions, as well as hydrogen, ammonia and synthetic fuels. OPEC+ countries will continue to invest in these sectors, and hope that this sparks involvement from fuel-demanding countries worldwide.
October 27, 2022India’s Russian oil binge sends Middle East imports to 19-month-low
India has been receiving Russian oil in larger quantities than from Middle East imports, setting the record for a 19 month-low. While India’s overall oil imports in September fell to a 14-month low of 3.91 million barrels per day (bpd), their Middle East imports specifically decreased to 2.2 million bpd. This is in contrast to their Russian imports surged to an all-time high of 23% from 19%, reaching about 896,000 bpd. These imports are amid sanctions placed on India by the United States. One can interpret this cooperation as a statement by India, that they are not bound to any specific sources for their fuel.
October 27, 2022OMV and ADNOC sign MoU in presence of UAE President
OMV and ADNOC have signed agreements to explore new partnerships in deliveries for LNG, the signing taking place in front of UAE and Austrian officials. OMV is seeking to provide Austria with more energy security amid recent conflicts. While the two companies work together on many other exploration and investment projects, this deal will further cement ties between Austria and ADNOC.
October 27, 2022Shell sees ‘robust’ profits
Shell disclosed on Thursday that the income attributable to its shareholders in the third quarter of 2022 totalled $6.7 billion compared to $18 billion in the second quarter of 2022. The decrease in income is attributable to lower LNG trading and optimisation results, lower chemicals and refining margins, as well as higher underlying operating expenses, partly offset by increased volumes from higher-value barrels in deep water. We can also infer that profits and production decreased in the third quarter due to the derecognition of Salym in Russia and unscheduled deferments.
October 26, 2022G7 price caps add new uncertainties to market: Aramco CEO
G7 and the EU have agreed upon Russian export restrictions and price caps which Aramco CEO claims will add more uncertainties to the market. These price caps are placed on Russian oil barrels at a yet to be determined price, as a way of minimizing the profits Russia can draw from crude sales, and which help fund the war in Ukraine. However, this will cause an issue for European energy reserves as they have to find new sources for oil imports and increase tensions with Russia. These sanctions will create more energy instability as the demand for crude rises.
October 26, 2022Shell unveils £8.1bn profits in another monster quarter of trading
Shell has reported third quarter profits of £8.1bn ($9.45bn) with cash flow from operations clocking in at £10.76bn ($12.5bn) for the three months of summer trading. These profits combined with record breaking second quarter profits will result in higher dividends per share (about 15%) for shareholders. However, shareholders must take into account that the company’s net-debt increased to 41.58bn ($48.3 billion) in the third quarter, however this includes the absorption of the Sprng energy debt – after it acquired the Indian energy firm earlier this year.
October 25, 2022Saudi Arabia in talks with European countries to boost oil exports
Saudi Arabia is in talks with European states over oil and energy requirements, because Europe is experiencing an energy crisis. Previously, Russia was the biggest exporter of LNG to the region but European and American sanctions have limited their exports. Instead, the EU looked to Saudi Arabia who exported 950,000 barrels per day of crude to Europe last month, compared to 490,000 bpd in the same period a year earlier. These talks will likely lead to more EU-Saudi ventures as they look to meet the rise in demand for oil.
October 25, 2022Oil prices rise on weaker dollar, supply worries
Oil prices rose this Tuesday, despite having fallen more than $1 per barrel. This is because the U.S. dollar index fell during afternoon trade, making greenback-denominated oil less expensive for other currency holders and helping to push prices higher. The IEA executive officer and Saudi energy minister warned that while the energy crisis is currently manageable, countries must brace for a severe shortage of crude oil in 2023.
October 25, 2022China Imports Record Levels Of LNG And Coking Coal From Russia
Russian LNG imports to China rose by one-third in September compared to the same period in 2021. Their overall imports, however, decreased by 12% in the last month, which is in line with a forecasted decrease in LNG imports for this year. Chinese imports of Russian coking coal, used in steelmaking, nearly tripled to 2.5 million tons last month from 900,000 tons in September last year. Combined imports of thermal coal and coking coal from Russia jumped by 20% year over year in Sept to nearly 7 million tons. We can see that China is taking advantage of Russian sanctions and price caps and are joined by India, who have also increased Russian imports.
October 25, 2022IEA says developing nations are the No. 1 casualty of the energy crisis
The IEA executive director has warned that developing countries are the most vulnerable to rising energy prices. He further explains that while the United States is the most vocal about production cuts, it is countries in Africa, South America, and Asia who will take the most damage because of higher import prices and unstable currencies. The IMF has forecasted that the higher oil prices will add to a number of economic difficulties that developing countries already face. The IEA director goes further to claim that we are experiencing the first global energy crisis in light of ongoing conflicts and economic standoffs.
October 24, 2022Wave of LNG tankers is overwhelming Europe in energy crisis and hitting natural gas prices
As a result of sanctions that are placed on Russian exports, Europe has relied on American LNG imports. However, European ports have been overwhelmed by the influx of shipments as they are reaching maximum capacity. There are 641 LNG vessels operating in the world and 60 of them are waiting to discharge their fuel in Europe. These LNG tankers have been idling or slowly sailing around northwest Europe, the Mediterranean, and the Iberian Peninsula. The Europeans have failed to readjust their gas capacity, rendering them unable to use the gas they are receiving. As a result, European gas shortages continue to rise and have reached 93%. Additionally, prices will continue to rise on fuel companies.
October 24, 2022QatarEnergy announces Shell as second partner in NFS project
Shell has joined Qatar in its North Field expansion which will have two LNG mega-trains with a combined capacity of 16 million tonnes per annum (mtpa). Once completed, this would bring Qatar’s total LNG production capacity to 126 mtpa. These new LNG volumes are being brought to the market at an essential time as the world is experiencing its first energy crisis. Shell’s stake in this new venture will amount to 9.375% out of a total 25% for international companies. The project will begin production in 2026. In total, it will add more than 48 MTPA to the world’s LNG supply by 2027. In an effort to reduce carbon emissions, power for the project will come from the national grid The project will also include carbon capture and sequestration.
October 24, 2022Qatar energy chief says oil and gas trade should be depoliticized
Qatar Energies CEO has stated that energy trade should be depoliticized and handled in a purely economic context. The forecasted sanctions and price caps on Russia crude could potentially destabilize energy trade worldwide. G7 countries have announced that they are going to cap Russian oil prices by December fifth, which presents a concern for energy politics. Additionally, the CEO has condemned any attacks on energy bases and facilities in light of recent Russian attacks on Ukraines thermal energy plant. These statements make it clear that Qatar is in favor of peace in the region to promote trade and minimize risks to the energy industry, on which they are heavily reliant.
October 23, 2022Shell selected as partner in the North Field South LNG project
Shell has been selected to participate in the next wave of Qatar’s LNG expansions – the North Field South project (NFS). Shell will obtain a 9.375% participating interest in the 16 Mtpa NFS project – out of a total 25% interest available for international partners. QatarEnergy will hold the remaining 75%. At the signing ceremony, the CEO of Shell, stated that LNG has a key role in ensuring energy system reliability and that their investments with QatarEnergy will support the energy transition and energy security, two of the most fundamental challenges the world faces today.
October 23, 2022Iran’s Atomic Energy Agency Says Its E-Mail Server Was Hacked
Iran’s Atomic Energy Organization has said that an e-mail server belonging to one of its subsidiaries was hacked from a foreign country. The state media report came a day after an Iranian hacking group, Black Reward, claimed on social media that it had hacked the internal e-mail system of Iran’s Nuclear Power Production and Development Company. The Atomic Energy Organization stated that the move was an attempt at gaining public attention whilst state media claimed that the hacked content contained only routine exchanges and technical messages.
October 23, 2022Oil climbs on expectations of tight supply as Russia sanctions loom
Oil rose in early Asian trade as expectations of tighter supplies globally ahead of European Union sanctions on Russian oil underpinned prices. Brent crude futures climbed 54 cents, or 0.6%, to $94.04 a barrel by 0125 GMT while U.S. West Texas Intermediate crude was at $85.56 a barrel, up 51 cents, or 0.6%. In spite of Xi Jinping securing a third leadership term, analysts are not expecting any significant change in policy direction, including the zero-COVID strategy. U.S. energy firms added oil and natural gas rigs for the second week in a row as relatively high oil prices encourage firms to drill more.
October 23, 2022Exxon Mobil to unveil monster profits powered by oil and gas boom
Exxon Mobil is expected to unveil another quarter of monster profits powered by high natural gas prices next week. It is currently on track for a record annual profit of $54.8bn this year, which would be more than its cumulative earnings since 2018. The company’s shares have surged to record highs this week, and are up more than 70 per cent to date this year – vastly outperforming market gains from rivals Shell, BP and Chevron. The share rise has given the fossil fuel producer a market value of $438bn, making it the 10th highest valued public company in the world.
October 21, 2022Mozambique’s first LNG exports to Europe seen by early November
According to petroleum regulator INP, Mozambique expects to ship its first LNG exports to Europe from the Eni-operated Coral Sul floating plant later this month or early November, in a supply boost for the energy-starved region. BP’s LNG tanker has already arrived offshore northern Mozambique with all of Coral Sul’s annual gas output of 3.4 million tonnes contracted to BP for 20 years on a free-on-board basis. A sustained violent insurgency inland with links to Islamic State has scared off investors, as French oil major TotalEnergies last year declared force majeure on its $20 billion LNG project amid rising attacks in the north of Cabo Delgado province. However, according to INP, they are satisfied with the improvement of stability in Cabo Delgado Province and are expecting Total to return by next year.”
October 21, 2022U.S. LNG Production Declines Despite Robust Demand
Natural gas flows to liquefaction plants along the Gulf Coast of the USA have been on the decline since the start of October, reflecting a decline in LNG production prompted by maintenance and outages. The average daily volume of gas flows from U.S. fields to the liquefaction trains in the South stood at 11.1 billion cubic feet which is down from 11.5 billion cubic feet for September and further down from the record 12.9 billion cubic feet daily booked in March as demand for U.S. LNG from Europe surged.
October 18, 2022OPEC+ says growing risk of global recession justifies oil cuts
OPEC+ defended its oil-production cuts, saying they were justified by the growing risk of a global recession. Oil ministers from Congo and Equatorial Guinea reiterated this defense, while OPEC’s top official said the group had little choice but to take preemptive action. In the weeks since the meeting, Saudi Arabia and many other OPEC+ members have repeatedly said the motivation for the cuts was purely economic.
October 18, 2022QatarEnergy expanding in LNG, won’t divert supplies to Europe
According to CEO Saad al-Kaabi, QatarEnergy is working to expand its gas production and trading operations as global demand surges. He said it will not divert LNG contracted with Asian buyers to Europe this winter. Qatar is already among the world’s top LNG exporters and several European states, facing a spike in energy prices and a fuel supply crunch, have been in talks with the Gulf Arab state to reduce their reliance on Russian energy supplies.
October 17, 2022China To Stop Reselling LNG To Europe
Chinese state-owned energy giants have been recently told by authorities to stop reselling LNG cargoes to gas-starved Europe, in what could be a blow to the European hopes of continuous high inflows of LNG as the winter approaches. In recent months, Chinese LNG importers have been selling their excess inventories to Europe and reaping big profits from the sales because of lackluster demand in China due to incessant snap city-wide Covid lockdowns and a slowdown in economic growth. Now, the National Development and Reform Commission (NDRC), China’s top planning body, has told the country’s state-held LNG importers that they should stop reselling LNG cargoes and keep them to ensure Chinese gas supply this winter.
October 17, 2022QatarEnergy to take full control of solar power firm Siraj Energy
QatarEnergy has agreed to acquire the remaining 49% stake in Siraj Energy in a deal that will boost its total solar power capacity under direct control to 1.675 GW. Set up in 2017, Siraj Energy is active in financing, building, operating and maintaining solar power facilities across Qatar. According to Qatar’s Minister of State for Energy Affairs and CEO of QatarEnergy, the agreed buyout is an “important step for QatarEnergy in consolidating its position in the renewables business and in delivering its Sustainability Strategy mid-term target of generating 5 gigawatts of solar power by 2035.”
October 16, 2022Kuwait appoints new cabinet with Bader al Mulla as oil minister
Kuwait appointed Bader al Mulla as its new oil minister in a new cabinet. Abdul Wahab al-Rasheed is also appointed finance minister and Salem Al-Sabah as foreign minister. Earlier this month, the crown prince, who has taken over most of the emir’s duties, appointed Sheikh Ahmad as prime minister in July after some opposition MPs staged an open-ended sit-in to press for a new premier.
October 16, 2022Opec+ decisions are crucial to market stability, say Omani and Bahraini oil ministries
Oman’s energy minister has explained that Opec+ decisions are based on purely economic considerations and realities of supply and demand in the market. Additionally, Bahrain’s Minister of Oil and Environment, Special Envoy for Climate Affairs, Mohamed bin Mubarak bin Dainah said the decision comes after consensus among all members states in the alliance. These statements are in an effort to clarify that production cuts were not enforced because of geopolitical ties, as suggested by the United States, but were purely done for economic stability.
October 16, 2022Minister Al Kaabi meets US Energy Secretary
Qatari minister of energy affairs met with the United States secretary of energy affairs Jennifer M. Granholm. The meeting discussed bilateral relations in the field of energy between Qatar and the US and means to enhance them.
October 16, 2022Saudi king Salman says kingdom seeks stability and balance in oil markets
Saudi King Salman said the kingdom was working hard to support stability and balance in oil markets, including by establishing and maintaining the agreement of the OPEC+ alliance. He added that his country was a mediator of peace and highlighted the crown prince’s initiative to release POWs from Russia last month. He also called on Iran to fulfill its nuclear commitments and cooperate with the U.N. nuclear agency.
October 15, 2022Saudi Arabia, South Africa sign 11 deals to promote investment
Saudi Arabia and South Africa have agreed upon 11 deals to expand their investments in fields of energy, water, green hydrogen, waste diversion, logistics, and aerial survey services. Saudi Arabia’s investment minister praised South Africa and drew comparisons between the two countries to establish a similarity of interests among two “major economic powers” in their respective regions. With the world undergoing constant geopolitical and economic turmoil, strengthening this relationship will provide opportunities for growth in two countries who are rapidly expanding their operations.
October 14, 2022QatarEnergy acquires solar power Siraj Energy stake
QatarEnergy, will acquire a 49% stake in Qatar Electricity & Water Co.’s state-backed solar power entity Siraj Energy. This transaction is set to result in Siraj Energy being absorbed within QatarEnergy Renewable Solutions, the state energy firm’s renewable investments arm. They awarded the engineering, procurement and construction contract to South Korea’s Samsung C&T for two solar PV plants with a total combined capacity of 875MW, in August. Expected to complete by the end of 2024, the electricity generated by the two plants will be partly used for QatarEnergy’s liquefied natural gas production expansion. The 2.3 billion Qatari riyal ($632m) contract aligns with Qatar’s goal to generate up to 5,000MW of solar power by 2035.
October 13, 2022Saudi Arabia issues 52 new mining licenses in August
Saudi Arabia’s Ministry of Industry and Mineral Resources issued 52 new mining licenses in August 2022. In line with Saudi Vision 2030 and the National Industrial Development and Logistics Program, the ministry seeks to protect the mining sector and maximize its value. It aims to transform the mining sector into the third pillar of the national industry with the mineral wealth in the Kingdom being valued at around SR5 trillion ($1.3 trillion).
October 12, 2022After OPEC+ Cuts Oil Supplies, Nearly Half of U.S. Voters Support ‘NOPEC’ Bill
Lawmakers are calling on the Biden administration to put pressure on Saudi Arabia after the de facto leader of the OPEC+ slashed crude production by 2 million barrels per day for November, further straining global crude supplies to boost a weakened market. A new Morning Consult/Politico survey shows that just under half of voters would support the No Oil Producing and Exporting Cartels Act, known as NOPEC, which would allow the Justice Department to sue OPEC+ members and companies under antitrust violations. Facing higher gasoline prices, Democratic lawmakers have also offered myriad legislative options for handling Saudi Arabia’s defiance, including a potential pause or termination in arm sales to the kingdom and the removal of military support from Saudi Arabia and the UAE.
October 12, 2022Rockets target Khor Mor gas field in Iraq’s Kurdistan, operations not affected
At least eight Katyusha rockets were fired at the Khor Mor gas field in Iraq’s Kurdistan region, but according to the Head of Foreign Media Affairs for the Kurdistan regional government, the attack did not result in casualties or affect the operations. Khor Mor is in the Sulaimaniya region of northern Iraq and was attacked previously. While no group has claimed responsibility for the previous series of attacks on Khor Mor, Kurdish officials said publicly they believed they were carried out by Iranian-backed militias.
October 12, 2022Dubai’s Yellow Door Energy raises $400m in new funding as it plans expansion
Renewable energy developer Yellow Door Energy has raised $400 million in a new funding round led by British private equity company Actis, the Dubai company’s largest stakeholder, as it plans expansion into new markets. The World Bank’s International Finance Corporation (IFC), Japan’s Mitsui, and Saudi Arabia’s Arab Petroleum Investments Corporation (Apicorp), also increased their shareholding in Yellow Door Energy, which continues to develop sustainable energy projects in the Middle East and Africa.
October 11, 2022Putin says Russia not working ‘against anyone’ in energy markets
Vladimir Putin said that Russia was not working against anyone on energy markets and was seeking a balance between oil supply and demand, a week after Washington criticized a decision by OPEC+ to steeply cut oil production. Speaking with President Sheikh Mohammed bin Zayed al-Nahyan of the UAE, Putin said Russia aimed to create stability on energy markets and ensure that supply and consumption were balanced. He stated that they are actively working within the framework of OPEC+.
October 11, 2022Arabian Drilling set to raise over $700 million in IPO
Arabian Drilling Company, said it will price its initial public offering at 100 riyals a share and is set to raise 2.67 billion riyals ($710.58 million). The final price is at the top end of a price range announced last month, which would value it at 8.9 billion riyals. The deal is the latest in a string of IPOs from the Gulf that has continued this year in defiance of global market trends. The retail subscription period will start on Oct. 18 and end the following day. The final allocation of shares will be announced on Oct. 25 and the first day of trading is to be determined.
October 10, 2022Iran racing to expand enrichment at underground plant, confidential IAEA report shows
According to a confidential UN nuclear watchdog report, Iran is rapidly expanding its ability to enrich uranium with advanced centrifuges at its underground plant at Natanz and now intends to go further than previously planned. While indirect talks between Iran and the United States on reviving the 2015 Iran nuclear deal have stalled, Iran has bought an ever larger number of advanced centrifuges that the deal bans it from using to produce enriched uranium. Iran has also quickly completed the installation of seven cascades that were either not finished or at a very early stage of installation on Aug. 31.
October 9, 2022Saudi Aramco to keep full oil supplies to North Asia in Nov despite OPEC+ cuts
According to sources, Saudi Aramco has told at least five customers in North Asia they will receive full contract volumes of crude oil in November. The full supply allocation comes despite a decision by OPEC+, to lower their output target by 2 million barrels per day.
October 6, 2022Iraq and Jordan launch power grid connection project
The Iraqi prime minister and his Jordanian counterpart have established the foundation for an electricity grid interconnection project aimed at tackling Iraq’s chronic power shortage. The project is part of a larger plan to establish a pan-Arab power market by connecting the Gulf Cooperation Council, comprising Bahrain, the UAE, Kuwait, Saudi Arabia, Qatar and Oman, with Egypt, Jordan and Iraq. The first phase was scheduled to be completed by the end of 2023 and would supply Iraq with 400 megawatts. This will see Iraq become a transit point for Gulf energy supplies to Europe, within the next two years. In addition, this project will quell the protests that have risen as a result of a lack of power and rolling blackouts, which have been an issue since the US invasion in 2003.
October 6, 2022Qatar to inaugurate 800MW solar farm
Qatar is preparing to inaugurate its 800 megawatt solar photovoltaic power plant in Al-Kharsaah in mid-October. QatarEnergy CEO has announced that the project is ready for operation and will be one of the world’s largest solar power plants. It is projected to supply about 10% of the country’s energy, giving substantial relief to gas producers. Qatar’s solar power goal is to reach 5GW by 2035, and are expected to sign project deals with three partners to further develop the north field.
October 5, 2022OPEC+ nations agree to cut oil production to boost sliding prices
OPEC+ agreed to cut its collective output limit by 2 million barrels a day in an effort to stabilize the sliding oil prices. This is the biggest cut in production since 2020, but will have a smaller effect on global supplies than the projections suggest. OPEC wants prices to be at $90 per barrel, and Many member countries have based their 2023 budgets on that price, and “it would destabilize some economies” if that weren’t to happen. The US and Biden administration are not in agreement with this decision and plan to release an additional 10 million barrels of oil from the Strategic Petroleum Reserve in November, and to protect American consumers and energy security.
October 5, 2022UAE Says Oil Major Shell Is Helping Plan Its Net-Zero Push
UAE and Shell have agreed upon a plan that will reach net-zero emissions by 2050. This is an important step to limiting emissions in the Gulf region and shift towards cleaner energy solutions. UAE is set to host next year’s COP28 climate summit, where it has pledged to make oil majors feel welcome. Further cooperation with major oil companies will advance the clean energy dialogue rather than antagonizing them. The oil producers felt unwanted at the last summit, but, UAE hopes to establish a productive dialogue.
October 4, 2022Multiply Group acquires 80% of International Energy Holding
Abu Dhabi-based holding company Multiply Group has acquired 80 percent of International Energy Holding LLC. Through this new venture, Multiply Group is planning to continue expansion and investments in energy and utilities. IEH owns a PV power plant with a capacity of 1,347.734 megawatt peak/1,000 megawatt electric in Konya’s Karapinar region. This facility alone will meet the annual electrical needs of approximately 2 million people when it is completed in 2023. Additionally, IEH also owns wind farms in Turkey which they plan on expanding, and secures IEH position as a leading clean and renewable energy company.
October 4, 2022Saudi Cabinet signs off agreement with UK over energy expertise
Saudi Arabia and the UK have signed an agreement to share technical knowledge and expertise on energy. Such an agreement is a positive step in western-Saudi cooperation and will accelerate advancements in the energy sector.
October 3, 2022Houthis Warn Oil Firms To Leave Saudi Arabia And The UAE
Yemen’s Houthis have warned oil companies operating in Saudi Arabia and the UAE to flee as the warring sides in the Yemen conflict failed to reach an agreement to extend the six-month truce. The constant occurrence of these threats have prompted Saudi and UAE retaliation in the region, creating a conflict of multiple interests. Houthi rebels accuse the Yemen government of siphoning $13 billion of the country’s oil funds in the last 5 years to other states and that another $180 million in looted oil left the country on a Greek oil tanker in August. The Yemen government is trying to maintain control of their assets while the UN Special Envoy calls on the parties to maintain calm and refrain from provocations or any actions that could lead to an escalation of violence.
October 3, 2022Refiners Expect Saudi Arabia To Raise Oil Prices For Asia In November
Saudi Arabia may raise the prices for its crude export grades to Asia next month in response to signs of recovering crude demand in one of its biggest markets and the new batch of fuel export quotas issued by Beijing. As a result of this higher demand, Saudi Arabia’s official selling prices could rise by $0.25 per barrel for the flagship Arab Light crude. The new quotas suggest higher near-term demand for crude but, on the other, refining margins have sunk after the announcement of the new quotas in anticipation of a flood of new fuel supply. Experts believe that this will lead to a moderate increase in Saudi prices.
October 2, 2022Qatar Investment Authority invests $2.43bn to accelerate RWE’s green energy strategy
The Qatar Investment Authority has agreed to invest $2.43 billion in Germany’s largest power producer RWE AG, to help it buy US firm Con Edison Inc’s Clean Energy Businesses subsidiary for $6.8 billion. This venture means the German company is expected to become one of the major players in the US renewable energy sector. The transaction will nearly double RWE’s US renewables portfolio to more than 7 gigawatts and grow its regional project pipeline by 7 GW to more than 24 GW. Following the takeover, solar will account for 40 percent of RWE‘s US portfolio, up from 3 percent now. This is a great step in the renewable energy market and Qatar’s involvement cements their support for renewable energy initiatives.
October 1, 2022US Sanctions Indian Company for Iran Oil Deal
The United States has imposed sanctions on an Indian company for buying oil and petrochemical products from Iran. This is the first time and Indian entity has been directly sanctioned by the US and is a statement about relationships going forward. These sanctions targeted Iranian brokers in India, Hong Kong, and UAE. India has made it clear that they are allowed to buy oil from whomever they decide to purchase oil from, regardless of US interests.
September 29, 2022Qatar joins IAEA board of governors
Qatar has been elected for membership of the board of governors of the International Atomic Energy Agency for 2022-2024. This will give Qatar oversight power in policy-making bodies, reviews and approves budgeting, operational programs, safeguards agreements and safety standards. This inauguration is in lieu of Qatar’s recent approach to the peaceful use of nuclear power and the responsible development of a nuclear program. Qatar is committed to supporting the IAEA’s activities promoting the peaceful use of nuclear power, preventing the spread of nuclear weapons, and facilitating member states’ access to peaceful nuclear technology. This will further emphasize the use of soft power and potentially lead to a peaceful direction when discussing nuclear programs.
September 29, 2022Abu Dhabi Power Transmission Project signs $3.2b financing
Abu Dhabi Offshore Power Transmission Company has secured more than $3.2 billion in financing with export credit agencies and banks for an offshore electricity transmission project. The financing will be used to connect two offshore ADNOC facilities to Abu Dhabi’s onshore grid. Japan Bank for International Cooperation (JBIC) provided $1.201 billion for the direct current transmission project. The remaining $2 billion was financed by Export-Import Bank of Korea, Mizuho, Sumitomo Mitsui Banking Corporation , BNP Paribas Fortis and Standard Chartered. This project is in line with the JBIC’s requirement to cut carbon emissions to net zero by 2050. This will establish greater cooperation between UAE and Asian states, as well as reduce emissions from oil production.
September 26, 2022Kuwait in process of purchasing new gas-fired power plants
Saudi Arabia and Kuwait are in the process of purchasing new gas-fired power plants, because the importance of renewable energy sources will increase over time although fossil fuels – mainly gas – remain the dominant energy source generating power in the Gulf countries, reports Al-Anba daily. This new venture will maintain the strength of Saudi Arabia and Kuwait in the market while countries like Dubai and Oman, which suffer from a shortage of gas supplies, have already announced that they will not construct new gas-fired power plants.
September 25, 2022Germany inks LNG deal as chancellor visits Gulf to secure energy
German utility RWE has signed a deal with Abu Dhabi National Oil Company (ADNOC) to deliver liquefied natural gas to Europe’s largest economy by the end of December. This is an attempt by Germany to lessen their dependence on Russian gas and deepen their ties with the Gulf states. The cargo to be delivered this year by ADNOC will be for 137,000 cubic metres of LNG and will be the first LNG to be supplied to the German gas market via the floating LNG import terminal at Brunsbüttel near Hamburg. This venture marks the shift of European dependence on Russian gas to new partnerships with Gulf states.
September 25, 2022ADNOC, TAQA close $3.8bn deal for clean energy, decarbonization
Abu Dhabi National Oil Co., and Abu Dhabi National Energy Co., known as TAQA, have finalized a deal for the construction of a $3.8-billion strategic project to power and decarbonize ADNOC’s offshore production operations. A Korean (KEPCO) led coalition with France and Japan will build, own, operate and transfer its high-voltage direct current sub-sea transmission network in the Middle East and North Africa region. KEPCO holds a 40 percent stake in the operation while ADNOC and TAQA each hold a 30 percent stake. After 35 years, the rights to the project will fully go to ADNOC. Construction will start this year and operations will begin in 2025. Abu Dhabi has once again demonstrated its ability to successfully structure and close a bold and progressive transaction that will help secure our low-carbon future as we intensify our efforts to decarbonize our operations.
September 24, 2022QatarEnergy signs deal with TotalEnergies for North Field South expansion
TotalEnergies will invest around $1.5 billion in the planned expansion of Qatar’s liquefied natural gas capacity to meet the demand of “hungry European countries”. This deal comes at a time when Europe is aiming to lessen their dependence on Russian gas, in light of the conflict. As Qatar’s capacity increases, it solidifies its position as the world’s top LNG exporter. The french company TotalEnergies is eager to continue this expansion as the world’s demand for LNG increases.
September 23, 2022GCC banks returning to pre-COVID-19 levels amid higher oil prices: S&P Global
Gulf Cooperation Council banks are returning to form after a strong first half of 2022, with earnings for most of them reaching almost pre-pandemic levels by the end of the year, according to S&P Global Ratings. This optimism is spurred by high oil prices, rising interest rates, supporting the banks’ creditworthiness, along with new public-sector-backed projects. GCC banks face a less certain 2023, with expectations of lower oil prices and risks to economic growth in the US and Europe.
September 22, 2022Barakah Nuclear Energy Plant Unit 3 Star-up accelerates achievement of UAE net zero 2050
The Emirates Nuclear Energy Corporation (ENEC) announced that its operating and maintenance subsidiary, Nawah Energy Company (Nawah) has successfully started up Unit 3 of the Barakah Nuclear Energy Plant, located in the Al Dhafra Region of Abu Dhabi. The start-up of Unit 3 has been achieved one year after the start-up of Unit 2, with the next key milestone being the connection of Unit 3 to the national electricity grid in the coming weeks. Unit 4 is in the final stages of commissioning prior to completion of construction. When fully operational, the Plant will prevent 22.4 million tons of carbon emissions every year.
September 21, 2022Qatar Says Talks With Germany on LNG Contracts Ongoing
Qatar and Germany are continuing to discuss supplies of natural gas, as Europe tries to reduce its dependency on Russia for the fuel. The Qatari Foreign Minister confirmed that There are negotiations taking place between Qatar Energy and commercial entities in Germany although it’s not yet clear when state-controlled Qatar Energy and German companies will sign contracts. It has been reported that the talks were complicated by Qatar wanting to sign longer-term agreements than Germany, which wants to wean itself off gas and other fossils eventually as part of the energy transition.
September 21, 2022Saudi Aramco awards $40m steel pipes contract to homegrown producer
Aramco has awarded a deal worth $40 million to Saudi Steel Pipe Co. for the supply of oil and gas steel pipes. Saudi Steel Pipe expects to see financial impact from its new order in the second and third quarters of 2023. In May, the pipe producer signed a 10-month contract worth SR97 million with Saudi Aramco to supply the latter with oil and gas steel pipes. In June it won a contract worth SR58 million to supply Aramco with steel pipes for oil and gas extraction.
September 20, 2022Abu Dhabi’s Mubadala Energy makes new gas discovery in Malaysia
Abu Dhabi-based Mubadala Energy has announced it has made a discovery of a new gas reservoir off the coast of Sarawak province, offshore Malaysia. The oil and gas unit of Mubadala Investment Co. said its early analysis suggests a significant gas column of over 110 meters within the pinnacle carbonate reef reservoir. Since Mubadala Energy’s entry into Malaysia in 2010, it has made six gas discoveries with a success ratio of 75 percent.
September 20, 2022German utilities close to long-term LNG deals with Qatar
German utilities RWE and Uniper are reportedly close to striking long-term deals to buy liquefied natural gas (LNG) from Qatar’s North Field Expansion project to help replace Russian gas. Talks between Germany and Qatar have been fraught with differences over key conditions such as the length of contracts and pricing. Europe’s biggest economy aims to replace all Russian energy imports by as soon as mid-2024. While supply deals with Qatar would be positive for Germany, they would not offer an imminent solution to Berlin’s energy crisis as the vast North Field Expansion project is not expected to come online before 2026.
September 19, 2022UAE said to accelerate plan to increase its oil production capacity
The United Arab Emirates is reportedly accelerating a plan to raise its oil production capacity as it tries to cash in on its crude reserves before the world transitions to cleaner energy. Adnoc wants to be able to produce 5mn barrels a day by 2025, sooner than a previously disclosed aim of 2030. Adnoc has asked international companies that are partners in its oilfields to raise their long-term production levels by 10% or more. If the UAE is successful in reaching the 2025 goal, it may try to boost its capacity further to 6mn barrels daily by the end of the decade.
September 19, 2022Oman’s OQ Settles On BofA for $800 Million Gas Pipeline IPO
OQ reportedly settled on Bank Muscat and Bank of America Corp. to advise the initial public offering of its gas pipeline units as the sultanate kickstarts its privatization program. According to insiders who spoke to BNN Bloomberg anonymously, the IPO of OQ Gas Network could raise $800 million, adding that the company had communicated a possible dual listing in Saudi Arabia and Muscat.
September 19, 2022Crude falls; Kuwait’s oil output over 2.8m bpd
Oil fell by nearly 3 percent, pressured by expectations of weaker global demand and by US dollar strength ahead of possible large increases to interest rates, although supply worries limited the decline. Brent crude for November delivery fell $2.64, or 2.89 percent, to $88.71 a barrel. WTI for October dropped 2.96, or 3.48 percent, to $82.15. Also, Kuwait Petroleum Corporation’s CEO said that the Gulf state currently produces more than 2.8 million barrels per day of oil in accordance with its OPEC quota.
September 17, 2022Gulf’s natural gas ambitions are at a tipping point, with 30-50% production gains beckoning
Natural gas has been dubbed a ‘transition fuel’ for years, as its lower emission intensity can offer a set of benefits to a world transitioning to a net-zero world. The GCC alone accounts for roughly 60 percent of Middle East production and is forecast to increase even faster, by 31 per cent by 2030. Gas in the GCC and the East Mediterranean regions are poised to transform in the coming decade, driven by higher supply volumes, more infrastructure, and demand diversification. To boost domestic gas demand growth and diversify the economy in the most sustainable way, several countries will increase their gas production by more than 30-50 per cent over the next decade, including Qatar, Saudi Arabia, UAE, and Oman.
September 16, 2022Kuwait’s Al-Zour refinery to begin exports in last quarter: MEED
State-owned Kuwait Integrated Petroleum Industries Co.expects to start export of refined products from its $16 billion Al-Zour refinery in late October or early November. The refinery is set to be the largest in the middle east and north African region, and will mainly produce diesel, gasoline, and kerosine. Starting international exports at the end of October means a significant raise in Kuwait’s oil revenues.
September 14, 2022Oil demand set to stop growing in fourth quarter as slowdown bites
The International Energy Agency forecasts a grinding halt to demand for oil as the fourth quarter approaches, however, they believe that demand will steadily grow in 2023. They forecast a demand of 2.1 million bpd because of a foreseen leniency in China’s COVID lockdowns and increased air travel. While rich OECD countries accounted for most of the demand this year, the opening up of China’s economy is expected to maintain demand next year. If China is to reopen as expected, non-OECD countries are expected to cover three quarters of the gains in 2023.
September 13, 2022Qatar Poised to Award Next LNG Prize
Qatar Energy will name its first partner for the next phase of its 48 million tons per year as part of its expansion. LNG has confirmed that at least one company has already signed a deal and others such as Total Energies, Exxon Mobil, Shell, Eni and ConocoPhillips have won stakes in the project and are all in the running for the phase two awards. Qatar also pitched the expansion to multiple Asian LNG buyers but to no avail. In light of recent Russian sanctions, this project will see Qatar grow their influence on the global markets significantly as they meet demands in Europe. In relation to carbon conscious buyers, The LNG projects will include greenhouse gas mitigation measures, including carbon capture and sequestration and methane leak reduction technology costing more than $250 million. This is a great selling point to carbon-conscious global buyers because it emphasizes the effort made to lower emissions.
September 12, 2022Worlds largest waste-to-energy project in Dubai now 85% complete
Dubai Municipality announced that 85 percent of Dubai Waste Management Centre (DWMC), the world’s largest waste-to-energy project, has been completed. With the world’s largest operational capacity, DWMC will process 1.9 million tonnes of waste annually and convert it into renewable energy, generating enough energy to power 135,000 homes upon completion. Construction of the landmark project began in 2021 in an attempt to raise the UAE’s profile as a global model for sustainable development. The first-of-its-kind project will convert 45 per cent of the emirate’s municipal waste into renewable energy once complete, with the first phase of the world’s most efficient energy project will be ready by 2023, while the entire project is scheduled to finish by 2024.
September 9, 2022Aramco tenders Abqaiq plant revamp project: MEED
Saudi oil giant Aramco has invited companies to submit bids for a project to revamp facilities at the Abqaiq oil processing plant. Joining ARAMCO are Nasser Saeed Al-Hajri & Contracting and Samsung EPC Co, Daelim Saudi Arabia Co, Technip Italy, Hyundai Engineering & Construction Co. and Abqaiq plant revamp, all of whom aim to optimize oil production and cut costs by developing the Abqaiq plant.
September 9, 2022FM meets US special envoy for energy
The Deputy Prime Minister and Minister of Foreign Affairs in Qatar met Saturday with the US Special Envoy and Coordinator for International Energy Affairs. During the meeting, they reviewed bilateral cooperation relations between the two countries, especially in the field of energy security, in addition to a number of regional and international issues of common interest.
September 8, 2022Dubai-based firm to build offshore wind farm in UK
Lamprell, an Emirati company, announced a new a wind energy project in the United Kingdom today, signed with the Moray West Offshore Wind Farm in Scotland. Per the deal worth more than $200 million, Lamprell will construct wind turbine pieces for Moray’s offshore substations. The agreement between Lamprell and Moray follows the United Kingdom launching talks with Gulf states in June toward a free trade agreement.
September 7, 2022Gulf equities slide on volatile oil; Abu Dhabi gains
Gulf equities ended mostly lower as oil prices, a key driver for financial markets in the Middle East, fluctuated wildly as the market balanced demand worries related to looming recession risks with fears that Russia will halt all oil and gas supplies. Most GCC countries have their currencies pegged to the dollar and generally follow the Federal Reserve’s policy moves, exposing the region to a direct impact from any monetary tightening by the U.S. central bank.
September 6, 2022Iran proclaims world needs more of its oil after OPEC+ production cut
Iran’s minister of petroleum Javad Owji said the world needed more Iranian oil, and that his country was ready to play a role in providing it away from politics. He said, “We have always declared that we are ready to contribute to our role in the supply of oil and oil products and to improve energy security in the world by avoiding politicization of oil and the political use of energy”. Analysts predict that following a deal markets could be flooded with Iranian oil, providing competition to output from Gulf States and lowering prices. Iran has an estimated 100 million barrels of crude and condensate in storage that can be released almost immediately.
September 6, 2022Saudi Arabia cuts oil prices for Asia and Europe as demand cools
State-controlled Saudi Aramco lowered its key Arab Light grade for next month’s shipments to Asian refineries from a record to $5.85 a barrel above the Middle Eastern benchmark – a decrease of almost $4 from September. The move was largely in line with traders’ expectations and follows a 25 per cent drop in Brent crude futures in the past three months to below $95 a barrel. It also came a day after OPEC+ agreed to a surprise production cut for October. Despite signals of slowing consumption in many major economies, the global market remains tight. Many analysts forecast that demand will outstrip supply in the final quarter of this year, especially if Russia reacts to a G7-proposed cap on its oil prices by limiting exports.
September 5, 2022Crude climbs ahead of OPEC+ meeting; Germany to use windfall tax income to reduce energy prices
Oil prices jumped over $1 a barrel, extending gains as investors eyed possible moves by OPEC+ to cut output. Germany’s government will use income from windfall taxes to lower end-consumer prices for gas, oil and coal according to German Chancellor Olaf Scholz in an attempt to mitigate the impact of rising energy prices on its population as part of a 65-billion-euro package.
September 5, 2022Adnoc announces $548m contract for gas line at Lower Zakum field
Adnoc has announced the award of a $548 million contract to build a new main gas line at its Lower Zakum field offshore of Abu Dhabi. The award will increase Lower Zakum field’s gas production capacity from 430 million to 700 million standard cubic feet per day (MMSCFD), supporting Adnoc’s plans to enable gas self-sufficiency for the UAE and cater for increasing global energy demand. The project will be completed in 2025 and it will see the construction of a new subsea pipeline that will run 85 kilometers from Zakum West Super Complex to Das Island.
August 31, 2022Qatar to build world’s largest ‘blue’ ammonia plant
QatarEnergy will build the world’s largest “blue” ammonia plant, which is expected to come online in the first quarter of 2026 and to produce 1.2 million tons per year. While conventional ammonia production emits CO2 if it is made with fossil fuel, during the production of blue ammonia any carbon dioxide generated is captured and stored. According to the chief executive and state minister for energy, the facility, the Ammonia-7 project, will cost $1.156 billion to build and capture and sequester 1.5 million tons of carbon dioxide a year through the manufacturing process.
August 31, 2022OPEC oil output in August hits highest since pandemic’s early days
OPEC oil output rose in August to its highest since the early days of the pandemic in 2020 as Libyan facilities recovered from unrest and Gulf members raised output to unwind a production cut deal with allies. OPEC has pumped 29.58 million barrels per day this month, up 690,000 bpd from July and the highest since April 2020. With many producers lacking the capacity to raise output due to insufficient oilfield investment, the 10 OPEC members managed a 300,000 bpd increase from July and are still pumping far less than called for.
August 31, 2022Adnoc inks $1.83 billion deals for drilling-related services
Adnoc announced the award of five framework agreements valued at $1.83 billion for Directional Drilling and Logging While Drilling (LWD) to support its efforts to expand production capacity of its low carbon oil and gas resources to help meet the world’s growing demand for energy. The framework agreements are the largest of such awards in the oil and gas industry. The awards cover Adnoc’s onshore and offshore fields and will run for five years with an option for a further two years. Ahmed Mohammed Belajer Al Rumaithi, Undersecretary of the Abu Dhabi Department of Energy, said: “A vibrant low carbon hydrogen production and consumption industry will place Abu Dhabi and the UAE at the global forefront of countries producing green energy.”
August 29, 2022Oil Prices Hit $104 On New Supply Scare
Oil prices rose early on Monday, extending gains from Friday, with WTI crude up by 2.98% at $96.04 and Brent crude trading at $104, up by 2.98% on the day. Some OPEC+ producers have signaled support for new production restrictions. OPEC+ meets on September 5 at a regular meeting, but it’s not a given yet that it would discuss new production cuts. Another supply concern came from Libya as clashes between rival factions in Tripoli left at least 32 dead and dozens more wounded, stoking renewed concern of a larger military conflict that could choke Libya’s oil exports, again.
August 28, 2022Oman signed a deal to Develop New Pipeline for Crude Oil Export
The Ministry of Energy and Minerals and Oman Tank Terminal Company (OTTCO), a subsidiary of OQ Group, signed a framework agreement for joint cooperation to develop, build and operate a new pipeline. It will transfer, store and export Oman’s crude oil from the Ras Markaz crude oil storage terminal in the Special Economic Zone at Duqm (SEZAD). The agreement enables expansion in the energy sector by meeting the expected growth in SEZAD and the energy industry in Oman. The terminal will provide crude oil handling, storage, import and export services for refineries and petrochemicals downstream projects in SEZAD.
August 28, 2022Sinopec expects lower overall 2022 refining runs, plans first share buyback
China Petroleum and Chemical Corp, the world’s biggest oil refiner by capacity, said that annual processing volumes for 2022 will fall by 6% from a year earlier after the country’s COVID measures curtailed fuel demand at home. Vice President Ling Yiqun said that they expect China’s fuel demand to return to a reasonable level of growth in the second half. Sinopec also reported record net profit for the first half of 2022 with Chairman Ma Yongsheng stating that the company will buy back its Hong Kong and Shanghai-listed shares at an appropriate time for the first time since listing over 20 years ago. The company has made efforts to diversify crude oil sourcing, including a small share of purchases of Russian oil in the first six months. The refiner emerged as the top buyer of Russian Far East crude grade ESPO in May and June.
August 27, 2022Saudi Arabia’s June fuel oil imports increase 60% annually as supply rises
June fuel imports for Saudi Arabia grew 60% to 307,000 barrels per day in response to high air conditioning demand. This is an annual trend that occurs because of the heat which sees the fuel production nearly double each time. Instead of importing from Russia as usual, Saudi Arabia turned to the UAE, Egypt, Estonia, and other countries as their oil source because of the ongoing conflict with Ukraine. We are seeing a shift in the oil markets where countries are opting to get their oil elsewhere, due to the sanctions and difficulties involved with the Russia-Ukraine conflict.
August 26, 2022Oil prices rise on signals OPEC might cut output
Oil prices rose, boosted by signals from Saudi Arabia that OPEC could cut output. Trading was volatile as investors digested and ultimately shrugged off warnings from the head of the U.S. Federal Reserve about economic pain ahead. The United Arab Emirates became the latest OPEC+ member to state it is aligned with Saudi Arabia’s thinking on crude markets and Saudi Arabia flagged the possibility of production cuts to offset the return of Iranian barrels to oil markets should Tehran clinch a nuclear deal with the West.
August 25, 2022Oil to rebound to $125 in coming months, UBS says
The price of oil per barrel is projected to reach $125 per barrel because of a decrease of daily production, which reached a multiyear low. The EU wants to eliminate dependency on Russian energy imports in relation to the recent war with Ukraine which will have a significant impact on European economies as Russia supplied the EU with 2.8 barrels per day. The upcoming talks involving a nuclear deal with Iran combined with worrying statements from various leaders is causing an “extraordinary volatility” in oil markets.
August 25, 2022Global LNG investments to hit $42 billion in 2024
Investments in new liquefied natural gas (LNG) infrastructure are set to peak at $42 billion annually in 2024. These greenfield investments are 200 times compared to the amount in 2020 when only $2 billion was invested in LNG developments due to the pandemic. This rise is driven mainly by a short-term increase in natural gas demand in Europe and Asia due to the Russia-Ukraine conflict and the restrictions imposed on Russian gas exports. Project approvals after 2024 are expected to slow down as governments transition away from fossil fuels and accelerate investments in low-carbon energy infrastructure.
August 25, 2022QatarEnergy awards US$631m EPC contract for IC Solar project
QatarEnergy Renewable Solutions, has awarded an Engineering, Procurement and Construction (EPC) contract for its industrial cities solar power project (IC Solar) to Samsung C&T. The contract covers two large-scale photovoltaic (PV) solar plants to be built in Mesaieed Industrial City (MIC) and Ras Laffan Industrial City (RLIC). The plants are expected to start electricity production by the end of 2024. This project forms part of the strategy to diversify Qatar’s energy resources and to increase the reliance on high-efficiency renewable energy, with a mid-term target of having 5GW of solar generated power by 2035.
August 24, 2022Kuwait ramps up crude oil production to meet increased demand
Due to the rise in demand for oil, the Kuwaiti oil minister has announced that they will increase crude oil production and are expecting to meet the future demand. This can help stabilize the extreme volatility in oil markets at the moment which is a result of years of underinvestment, oil minister Al-Faris says. OPEC officials claim that the cut in production coincides with Iran’s potential reintroduction into the oil markets with the west.
August 24, 2022Iran Offers To Help Europe With Oil And Gas Deliveries This Winter
Officials in Iran have noticed European countries such as Germany, who are having difficulties with extremely high energy prices. Iran offered to help with the price pressure by exporting gas to European countries, all while making the case that this was a self-inflicted predicament as a result of US sanctions. Iran has been able to expand its oil exports to countries in Asia and South America, and can be a major support in lieu of the upcoming Russian oil sanctions.
August 23, 2022Oil jumps nearly 4% on possible OPEC+ supply tightening
Saudi Arabia suggested a cut in oil production, which led to a 4% increase in the price per barrel. The Saudi energy minister said OPEC+ had the means to deal with challenges including cutting production.
August 22, 2022OPEC+ Is Now Almost 3 Million Bpd Behind Its Production Target
With the gap between overall quota and actual oil production from the OPEC+ members growing for over a year, they eventually produced a reported 2.9 million barrels less than projected in the month of July. A partial reason for this is the staggering oil production of Russia, who is the leader of non-OPEC members in the OPEC+ pact, along with African countries such as Nigeria and Angola. This underperformance may lead to a significant increase in price per barrel.
August 22, 2022Saudi Minister Says OPEC+ Could Cut Production At Any Time
As a result of spare capacities being severely limited, Prince Abdulaziz bin Salman has prepared the market for a new round of production cuts with an announcement that “OPEC+ could cut production at any time.” This decision is partly due to the forecasted volatility and disconnect in the future oil markets, along with unforeseen sanctions or embargoes. To limit risks, OPEC+ members may cut production following a report that showed members underproduce by almost 3 million bpd in July. A cut in production will have a significant impact world wide and can spark tensions with the United States, who pushed for a higher production.
August 20, 2022Iran to develop oilfield shared with Saudi Arabia in 3 years
Iran is planning a multi-phase project which will allow them to pump oil from a key oil-field which straddles the maritime border with Saudi Arabia. In addition, Iran plans to open an exploration well in Esfandiar and begin drilling in a disputed location involving Kuwait and Saudi Arabia. This presents a promising sign to those who believe that an open relationship can be created between Saudi Arabia and Iran as they are doing business in previously disputed areas and finding common ground. However, as they find themselves on opposing sides in the Yemen crisis, this may lead to distrust among states.
August 19, 2022OPEC chief says blame policymakers, lawmakers for oil price rises
OPEC’s new Secretary General says that policymakers, lawmakers and insufficient oil and gas sector investments are to blame for high energy prices, not OPEC. A lack of investment in the oil and gas sector following a price slump sparked by COVID-19 has significantly reduced OPEC’s spare production capacity and limited the group’s ability to respond quickly to further potential supply disruption. Oil and gas investment is up 10% from last year but remains well below 2019 levels, according to the International Energy Agency. The OPEC Secretary stated, “We are not saying that the world will live on fossil fuels forever … but by saying we’re not going to invest in fossil fuels … you have to move from point A to point B overnight”. OPEC exists to ensure the world gets enough oil, but “it’s going to be very challenging and very difficult if there is no buy-in into the importance of investing”.
August 19, 2022Oil prices head for weekly drop on global economic slowdown worries
Oil prices slipped as market participants weighed worries about a global economic slowdown, which would dampen fuel demand, against expectations of tighter supplies toward year-end. Brent crude futures fell 68 cents, or 0.7%, to $95.91 a barrel by 0658 GMT after settling 3.1% higher on Thursday. U.S. West Texas Intermediate crude was at $89.81 a barrel, down 69 cents, or 0.8%, following a 2.7% increase in the previous session. Supplies could tighten again when European buyers start seeking alternative supplies to replace 1.2 mbpd of Russian oil ahead of European Union sanctions which take effect from Dec. 5.
August 19, 2022Qatar sees 12-fold jump in surplus on energy profit
Qatar witnessed a jump in its budget surplus to 47.3 billion riyals ($12.8 billion) in the first half of 2022, compared to 4 billion riyals in the same period last year, driven by soaring energy revenues. Oil and gas revenue surged 58 percent to 150.7 billion riyals during the period, compensating the increased government spending on wages and salaries. The Gulf country is benefiting from Europe’s interest in diversifying its gas supply away from Russia in the long-term. The International Monetary Fund projected the country’s economy will grow 5.4 percent this year and generate a surplus equivalent to about $45 billion.
August 19, 2022Middle East Producers Expect To Bank Additional $1.3 Trillion From Oil Exports
The major oil exporting countries in the Middle East are expected to receive an additional $1.3 trillion from oil by 2026, thanks to high oil prices and the global oil market turmoil after the Russian invasion of Ukraine, according to the International Monetary Fund (IMF). Saudi Arabia is likely to be one of the world’s fastest-growing economies this year as sweeping pro-business reforms and a sharp rise in oil prices and production power recovery from a pandemic-induced recession in 2020. Gross domestic product is expected to expand by 7.6 percent, the fastest growth in almost a decade.
August 19, 2022Saudi Aramco Confirms Estimated $100B Gas Field Phased Expansion
Saudi Aramco has confirmed a phased development for its Jafurah onshore gas production project with an estimated $100 billion overall investment. It is expected to produce up to 3.1 billion cu ft per day of natural gas liquids and condensates by the next decade. Construction of production facilities is in two phases—the first to complete in 2025 and the second two years later. It represents one of the largest shale gas fields outside the U.S. and holds an estimated reserve of 200 trillion cu ft of gas.
August 18, 2022Kuwait produces more than 2.8 million barrels per day of oil, KPC CEO says
Kuwait Petroleum Corporation’s (KPC) chief executive said that Kuwait currently produces more than 2.8 million barrels per day of oil in accordance with its OPEC quota. He also said Kuwait has plans to increase crude oil production whenever the market needs it, but currently the customers of the state-owned corporation still demand the same volumes with no change. Kuwait produces 650 million cubic feet of gas per day, and plans to increase it to one billion.
August 18, 2022Kuwait Oil Company aims to increase natural gas production to meet local demand
The state-owned Kuwait oil company aims to increase natural gas production to meet local demand. Demand for oil and gas returned to its pre-pandemic levels in 2019. In this high prices environment, the company is determined to increase its natural gas production in line with Kuwait Petroleum Corporation’s strategy to meet the domestic demand for energy.
August 17, 2022Iraq resumes crude exports from Basrah Oil Terminal after 24-hour halt
Iraq has resumed crude oil exports from Basrah Oil Terminal after an oil spill that occurred late Sept. 15 halted loadings from the facility, curbing some 1 million b/d of exports from OPEC’s second biggest producer. In the coming days, BOC will compensate for lost crude exports by pumping extra volumes so that planned export levels are not impacted. The terminal has long been a major risk for an oil spill, with the degrading of two ageing sea lines feeding jetties. In July, it was reported that bulges had appeared at the end of those lines and there were fears of a rupture that could cause a significant oil leak into the Gulf.
August 16, 2022Kuwait increased oil output by 37,000 barrels per day last August
OPEC said Kuwait continued to raise its oil production levels by 37,000 barrels per day last August to reach 2.810 million bpd. The average price of a Kuwaiti barrel of oil since the beginning of the year amounted to $106.24 per barrel during 2022, compared to 2021, which amounted to $66.40 per barrel. OPEC maintained its expectations of strong growth in global oil demand in 2022 and 2023, based on indicators that major economies are performing better than expected despite unfavorable factors such as high inflation. An OPEC monthly report stated that oil demand will increase by 3.1 million barrels per day in 2022 and 2.7 million barrels per day in 2023.
August 16, 2022Saudis seek green hydrogen commitment from EU
According to the President of the European Council, Saudi Arabia wants the EU to embrace long-term contracts in green hydrogen investment potential, with the UAE also suggesting investing in its renewable energy initiatives.
August 15, 2022Rystad warns no quick pipe fixes for Iran from Gazprom
Gazprom signed a deal in July to help National Iranian Oil Co. develop Iranian projects, but Rystad Energy has warned Russia lacks the required metallurgical supplies. As a result of sanctions on their energy indsutries, no European or Japanese supplies can provide OCTG or steel goods to Russia or Iran. The corrosive nature of Iranian oil and gas reserves requires high-grade piping for extraction, which neither Russia or Iran have the capacity or capability to produce in the short term. With Iran’s offshore gas fields needing relatively high volumes of these super-specialised grades, it is difficult to see how Gazprom can provide any well assistance to develop these fields quickly.
August 15, 2022Oil prices fall after weaker than expected US and China data
Brent crude dropped as low as $92.78 a barrel as gloomy reports from the world’s two leading economies added to worries that a slowdown in global growth will hit industrial and consumer demand. WTI slipped to $86.82, its lowest level since before Russia invaded Ukraine. This came after Chinese economic data showed that retail sales and industrial production rose less year on year in July than Economists had forecast. The oil markets struggle as weak macro data continues to put downward pressure on them, with this negative Chinese data coming immediately after poor consumer sentiment figures in Europe.
August 15, 2022Saudi oil windfall tops $65 billion even without dividend hike
The Saudi government’s oil income almost doubled in the second quarter even as state-controlled producer Aramco held dividends unchanged. Aramco pays a royalty of 80 per cent on Brent crude prices above $100 a barrel, and 45 per cent when oil’s at $70 to $100. Aramco made payments to the government – its 94 per cent shareholder – of more than $65 billion in the period, up from $35 billion a year earlier. Saudi Arabia’s crude is still the major source of government revenue and soaring prices are set to give the country its first budget surplus in almost a decade.
August 14, 2022Aramco 2Q profit at record on high oil prices
As a result of increases in oil prices, sales volumes and refining margins, Aramco’s second-quarter profit exceeded that of ExxonMobil, Shell and Chevron combined. It broke its quarterly profit record with a 90pc year-on-year jump to $48.4bn in the second quarter, which is more than it made in the first six months of 2021. The Aramco CEO acknowledged the market volatility and instability during the first half of this year but stated that the company forecast oil demand will continue to grow for the remainder of the decade, “despite downward economic pressures on short-term global forecasts.
August 14, 2022Saudi Aramco to raise output capacity to 12.3 million b/d by 2025
Saudi Aramco plans to raise its sustainable production capacity to 12.3 million b/d by 2025. Saudi Arabia claims a current production capacity of around 12 million b/d but Platts Analytics estimates this at closer to 11.5 million b/d. CEO Amin Nasser stated that in 2026, Aramco should go to 12.7 million b/d before reaching 13 million b/d by 2027.
August 12, 2022More Russian Oil Offtakers Crop Up in UAE
Russian oil companies are relying more heavily on little-known trading firms domiciled in the United Arab Emirates to market their crude. One of the attractions for Russian oil exporters is the UAE’s lack of interest in imposing any trade sanctions, as well as low taxation. Companies based in the UAE are not subject to any of the Russia trade sanctions that were introduced in recent months by the US, EU and Switzerland.
August 12, 2022Saudi Arabia’s Petro Rabigh Q2 net income surges on higher refining margins
Petro Rabigh’s net profit surged by 93.2% year on year in the second quarter on the back of higher refining margins. This is due to the fact that favorable market conditions for refined products supported the company’s earnings in the second quarter. This was driven by the increase in crude oil prices which led to improved margins.
August 11, 2022OPEC, unlike IEA, sees lower 2022 oil demand growth
OPEC on Thursday cut its 2022 forecast for growth in world oil demand for a third time since April, citing the economic impact of Russia’s invasion of Ukraine, high inflation and efforts to contain the coronavirus pandemic. OPEC in a monthly report said it expects 2022 oil demand to increase by 3.1 million barrels per day (bpd), or a 3.2% decrease to 260,000 bpd from the previous forecast. The IEA raised its forecast by 380,000 bpd to 2.1 million bpd.
August 11, 2022Iraq to supply Lebanon with fuel for electricity for another year -Lebanese PM
Iraq’s government has agreed to continue supplying Lebanon’s electricity company with heavy fuel oil for another year, Lebanon’s caretaker prime minister said on Thursday. This will alleviate pressure on Lebanon’s struggling power grid. Due to the inability of the Lebanese government to supply subsidized electricity to the people from July 2021- this has caused Lebanon to request 1 million tonnes from Iraq of heavy fuel in exchange for healthcare to Iraqi citizens.
August 11, 2022U.S. gasoline prices fall below $4 for first time since March
The average price of U.S. retail gasoline fell below $4 per gallon on Thursday for the first time in months, giving some relief to drivers in the world’s largest fuel consumer. The average price of gasoline peaked in June to a record $5.02 per gallon which caused consumer behavior to shift to purchasing less gasoline as compared to during the pandemic in July 2020.
August 11, 2022OPEC’s Oil Production Rises But Still Well Below OPEC+ Target
OPEC’s total crude oil production rose by 216,000 b/d in July compared to June. However, the 10 members in the OPEC+ pact pumped just over 25 mb/d in July in spite of quotas to collectively target crude oil production of 26.276 mb/d. As a result of this, despite raising its crude oil production in July by 500,000 b/day, the OPEC+ group was still well below its collective quota, pumping 2.75 mb/d below targeted output.
August 11, 2022ADNOC aims production growth with $1.17 bn contract
Abu Dhabi National Oil Company (ADNOC) has announced a $1.17 billion contract for the hire of 13 self-propelled jack-up barges. The five-year contract was awarded by ADNOC Offshore to ADNOC Logistics & Services for the multi-purpose assets that enable rig-less operations and maintenance, enabling enhanced efficiencies. The ADNOC Offshore CEO said that this will help deliver production capacity expansion offshore and directly support ADNOC’s strategic growth objective of 5 mb/d production capacity by 2030
August 11, 2022Hyundai Gets $1.5B LNG Order as Qatar Awards Charter to Asian Partners
QatarEnergy has awarded a consortium of four Asian shipping companies a long-term time charter for the operation of seven liquefied natural gas carriers to secure capacity to support the expansion of its LNG operations. It is the latest in a series of deals as the shipping industry faces a shortage of gas carriers to meet current demand. This $1.5 billion contract forms part of a long-term LNG $28.7 billion expansion project that seeks to increase annual LNG production and exports from 77 million tonnes to 110 million tonnes, ensuring that Qatar becomes the single largest exporter of LNG.
August 11, 2022OPEC Downgrades Crude Demand Outlook
OPEC officials have stated, in response to slowing global economic conditions, that it will cut its oil demand outlook by 260,000 b/d from an earlier forecast. The cartel cited remaining downside risks as a result of A combination of the 40-year high inflation in the United States, war in Ukraine that fuelled an energy crisis in Europe, and lingering pandemic woes in Asia. OPEC had already downgraded its global economic growth forecasts for 2022 to 3.1% from 3.5%.
August 11, 2022IEA Says Gas-to-Oil Switching Impacts Forecast
The IEA Oil Market Report (OMR) has found that soaring oil use for power generation and gas-to-oil switching are boosting demand and have subsequently raised their estimates for 2022 global demand growth by 380 kb/d. However, they have stated that these extraordinary gains, overwhelmingly concentrated in the Middle East and Europe, mask relative weakness in other sectors. World oil demand is now forecast at 99.7 mb/d in 2022 and 101.8 mb/d in 2023.
August 10, 2022Iraq’s July oil output rises by around 70,000 bpd, SOMO data show
Iraq pumped 4.584 million barrels per day (bpd) of oil in July, up by 69,000 bpd from June, data from state-owned marketer SOMO, seen by Reuters showed on Wednesday. According to the production figures, Iraq’s output was slightly above its designated OPEC+ quota of 4.580 mln bpd for July. The OPEC+ organization uses an average of secondary source production statistics to establish compliance with output quotas.
August 9, 2022OPEC+ crude oil output makes biggest gain in five months, but gap with quotas grows
OPEC and its nine allies posted their highest monthly crude oil production rise in five months in July, led by gains in Saudi Arabia and Kazakhstan, the latest Platts survey by S&P Global Commodity Insights showed.The OPEC+ alliance increased output by a substantial 490,000 b/d from June—although that is still short of the 648,000 b/d promised when the group agreed to accelerate their quota increases for July and August to meet global rising demand.
August 8, 2022U.S. crude, gasoline inventories seen lower last week
U.S. crude oil and gasoline stockpiles likely fell last week, while distillate inventories were unchanged, a preliminary Reuters poll showed on Monday.Crude inventories increased by 4.5 million barrels from July 29 to 426.6 million barrels, the EIA said, compared with analysts’ expectations in a Reuters poll for a 600,000-barrel decrease.
August 4, 2022OPEC Sec Gen says we should tread a fine line as not to consume all oil reserves
The Organization of Petroleum Exporting Countries (OPEC) should tread a fine line so as not to consume all oil reserves, the Organization’s Secretary General Haitham al-Ghais told Al-arabiya TV on Thursday. The Secretary General also stated that the increase of 100,000 barrels per day was to test the reaction of the oil market.
August 4, 2022Oil prices hit lowest since Ukraine invasion amid recession fears
Global oil prices dropped on Thursday to their lowest levels since before Russia’s February invasion of Ukraine, as traders fretted over the possibility of an economic recession later this year that could torpedo energy demand. Benchmark Brent crude futures settled down $2.66, or 2.75%, at $94.12, the lowest close since Feb18. West Texas Intermediate (WTI) crude futures settled down $2.34, or 2.12%, at $88.54, the lowest close since Feb 2. This decrease in oil prices is beneficial to consumer nations such as the United States and territories within Europe because of rapid inflation and limited supplies.
August 4, 2022Exclusive: Saudi, UAE save oil firepower in case of winter supply crisis
OPEC leaders Saudi Arabia and the United Arab Emirates stand ready to deliver a “significant increase” in oil output should the world face a severe supply crisis this winter, sources familiar with the thinking of the top Gulf exporters said. There are no specific quantities which have been agreed upon, but Saudi Arabia, the UAE and some other OPEC members possessed around 2.0-2.7 million bpd of spare production capacity, the source claimed.
August 4, 2022Saudi Arabia sets Sept crude prices to Asia at record high
Saudi Arabia, the world’s top oil exporter, raised September crude oil prices for Asian buyers to record high levels despite falling refining margins. Refiners have been concerned that a further hike in crude oil prices could prompt refineries to trim output to manage their balance sheets.Saudi’s OSPs also came after OPEC+ agreed to raise its oil output goal by 100,000 barrels per day from September, although the market saw the increase as too small to have any meaningful impact on the supply.
August 3, 2022OPEC+ agrees to raise September output target by 100,000 bpd
OPEC+ has agreed to raise its September oil output targets by 100,000 barrels per day, an OPEC+ source said.
August 3, 2022OPEC+ might have to raise oil output so market doesn’t overheat, Kazakhstan says
OPEC+ is set to raise its oil output goal by 100,000 barrels per day, an amount analysts said was a setback to U.S. President Joe Biden after his trip to Saudi Arabia to ask the producer group’s leader to pump more to help the United States and the global economy. The increase is minimal at a negotiated amount of only 0.1% following Joe Biden’s visit to Saudi Arabia and missile sales to the United Arab Emirates
August 2, 2022OPEC+ sees slightly smaller oil market surplus this year, sources say
OPEC+ sees this year’s oil market as slightly less supplied than previously predicted, a day ahead of a meeting at which the organization is set to decide on its production policy for next month. Data showed that the OPEC+ Joint Technical Committee (JTC), meeting on Tuesday, trimmed its forecast for a surplus in the oil market this year by 200,000 barrels per day (bpd) to 800,000 bpd, three OPEC+ delegates told Reuters.
August 2, 2022Kuwait nears maximum oil production, with politics, technical challenges stunting growth
Kuwait is close to exhausting its production capacity, capping its ability to bring on more crude oil supplies to meet elevated global demand. This comes as OPEC faces pressure from its key customers for price relief. Due to the bureaucratic challenges, the aging oil fields within Kuwait require foreign consultations which will allow there to be improvements in oil production and decrease technical challenges facing the country which has yet to be achieved.
August 1, 2022Saudi to push OPEC+ to increase oil production at upcoming meeting
Saudi Arabia will push OPEC+ to increase oil production at an upcoming meeting on Wednesday, a Fox Business news reporter said on Monday. This news comes following the trip of President Joe Biden to the Middle East last month when Saudi King Salman bin Abdulaziz assured Joe Biden of the OPEC+ production increase within the meeting.
August 1, 2022Kuwait reappoints Mohammed al-Fares as oil minister
Mohammed al-Fares retained his role as Kuwaiti oil minister following the formation of a new government on Aug.1 , amid rising pressure on the country to raise oil supplies as part of its OPEC+ agreement. This took place following the designation of a new PM Sheikh Ahmad Nawaf AlSabah in which the minister Mohammad AlFares retained his role as Oil minister within the cabinet.
July 29, 2022Moscow says Russia and Saudi Arabia ‘firmly committed’ to OPEC+ goals
Russia and Saudi Arabia remain firmly committed to the goals of the OPEC+ agreement to preserve market stability and balance supply and demand in the global oil markets, the Russian government said in a statement on Friday. Russian Deputy Prime Minister Alexander Novak met Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman and they officially discussed cooperation within the OPEC+ agreement that places a quota on oil production in a bid to balance oil prices.
July 28, 2022Iranian tanker to retrieve oil cargo confiscated by U.S. this week
An Iranian-flagged tanker anchored off the Greek port of Piraeus is expected this week to retrieve part of its cargo of oil confiscated by the United States and sail back to Iran following a Greek court ruling, government sources said on Wednesday. This occurred within Greek territorial waters near the town of Karystos and caused tensions between Tehran and Washington to further escalate.
July 28, 2022Oil prices pushed up by low chances of OPEC+ supply boost
Oil prices rose in European trading on Friday as attention turned to next week’s OPEC+ meeting and expectations that it will dash U.S. hopes for a supply boost.Brent crude futures for September settlement, due to expire on Friday, gained $2.89 to trade at $110.03 a barrel. Due to the weakness of the dollar globally, this has caused currencies to purchase oil at a cheaper price.
July 28, 2022Once an OPEC quota buster, Iraq struggles to raise oil output due to port limitations
Near-term prospects for increasing loading volumes at its aging Gulf terminal facilities at Basrah are dim, Iraqi officials acknowledge, preventing any meaningful gains in production that would allow the cash-strapped country to benefit from high oil prices. And the degraded pipelines connecting the terminal to loading jetties are a major risk for a catastrophic environmental disaster. The reason for the delay in Oil outputs is due to the political crisis which have caused instability and financial obstacles for Iraq to handle.
July 28, 2022OPEC+ to weigh holding oil output steady or small hike, sources say
OPEC and its allies will consider keeping oil output unchanged for September, when they meet next week, despite calls from the United States for more supply.However, a modest output increase is also likely to be discussed, eight sources have said. The OPEC+ organization, including Russia this year, will increase their exports exceeding limits which were situated due to the COVID-19 pandemic from 2020.
July 21, 2022Oil to fuel growth in Gulf economies this year, but will not sustain pace in 2023
Economies in the six-member Gulf Cooperation Council will grow faster this year than previously thought due to higher oil production, according to a Reuters poll of economists. They predicted growth to slow next year along with global demand. A Reuters poll from July 6-20 predicted exponential growth in the six GCC economies would average 6.2% this year, increasing from 5.9% predicted in an April poll.
July 21, 2022Iraq’s southern oil export capacity may rise to 3.35 mil b/d by September: SOMO
Iraq’s southern oil export capacity may go up to 3.35 million b/d by September, from around 3.3 million b/d now, as OPEC’s second biggest producer pumps more crude in line with OPEC+ unwinding output cuts, Deputy Director General of State Oil marketer SOMO said on July 21.
July 20, 2022Russia is China’s top oil supplier for 2nd month, Saudi volumes tumble – data
Russia held its spot as China’s top oil supplier for a second month in June as Chinese buyers cashed in on lower-priced supplies, slashing more costly shipments from Saudi Arabia, data showed on Wednesday. Chinese imports of Russian oil, including supplies pumped from the East Siberia Pacific Ocean pipeline and seaborne shipments from Russia’s European and Far Eastern ports, resulted in 7.29 million tonnes.This was an increase of approximately 10% from 2021, according to data from the Chinese General Administration of Customs.
July 19, 2022Saudi minister: we see lack of refining capacity in market, not lack of oil |
Saudi Arabia’s foreign minister Faisal bin Farhan Al-Saud said on Tuesday that he saw no shortage of oil in the market, but a lack of oil refining capacity, making it necessary to invest more in capacity to process crude oil into various oil products. As such, the Minister has stated there needs to be more innovation in the refining capacity, and not an increase in oil production.
July 18, 2022Oil gains $5 on weaker dollar, tight supplies
Oil prices rose by more than $5 on Monday, boosted by dollar weakness and expectations that the U.S. Federal Reserve won’t raise interest rates by a full percentage point at its next meeting to combat inflation.Brent crude exports for September gained $5.11, to settle at $106.27 a barrel, after rising 2.1% on Friday.
July 18, 2022White House expects OPEC+ oil production hike after Middle East trip
The White House said Monday it anticipates major oil producers in the OPEC+ alliance to increase crude production following President Joe Biden’s trip to the Middle East. Due to the midterm elections taking place on November 8 there is substantial pressure on Joe Biden to lower gas prices as a result of increasing resistance from middle class Americans.
July 17, 2022Saudis say crude output hikes are within OPEC+ as Biden leaves region without oil deal
Saudi officials said on July 16 that the country’s oil production policies are implemented within the OPEC+ group, as US President Joe Biden ended his four-day trip to the Middle East without a pledge for higher crude supply to further temper oil prices. The Saudis have stated that they believe the demands of Joe Biden are “unrealistic” and globally will not fix the oil prices dilemma within the country.
July 15, 2022U.S. not expecting Saudi Arabia to immediately boost oil production
The United States does not expect Saudi Arabia to immediately boost oil output and awaits the outcome of an OPEC+ meeting on Aug. 3, the U.S. national security adviser said on Friday. This lowers expectations as the U.S. President Joe Biden visits the kingdom. Notably, Saudi Arabia and the UAE are the world’s largest oil producers in the OPEC+ organization, alongside Russia.
July 15, 2022EXCLUSIVE Saudi Arabia doubles Q2 Russian fuel oil imports for power generation
Saudi Arabia, the world’s largest oil exporter, more than doubled the amount of Russian fuel oil it imported in the second quarter to feed power stations. This was done to meet summer cooling demand and free up the kingdom’s own crude for export, according to data and traders’ claims. Due to the invasion of Ukraine, Russia has resorted to selling their fuel at discounted prices which Saudi has increasingly imported into the country.
July 13, 2022Iraq plan to boost oil export capacity suffers setback, source says
Iraq’s bid to boost oil export capacity at its Gulf ports has suffered a setback due to delays in pumping station upgrades, an Iraqi oil source said.Iraq is OPEC’s second highest oil producer which aims to raise operational export capacity in Basra to 3.45 million barrels per day (bpd) from 3.3 million bpd.
July 12, 2022Asian refiners to receive full Saudi crude allocation in August
Saudi Aramco has notified at least three North Asian buyers that it will supply full contractual volumes of crude oil in August, sources with knowledge of the matter said on Tuesday. Saudi Arabia and other OPEC+ states agreed this month to increase production to commemorate Russian output losses by 648,000 barrels per day (bpd) in July- and a similar amount in August. This comes against the initial plan to add 432,000 bpd a month over three months until September.
July 12, 2022OPEC sees slower 2023 oil demand growth, no big shale gain
OPEC expects global oil demand to rise in 2023, albeit at a slower pace than 2022, the producer group said in its first forecast for next year, citing signs of robust economic growth and progress in containing COVID-19 in China.
One of the main reasons for slow oil demand growth is tight supply and logistical problems which have affected the process of oil demand growth.
July 11, 2022Oil slides on strong dollar and weaker demand outlook
Oil prices fell sharply on Tuesday on a strong dollar.Demand has sapped due to COVID-19 curbs in top crude importer China, and fears of a global economic slowdown. Due to the petro-dollar, this has caused the product to be more expensive for other global currencies to purchase the product, despite the lower price. Thus, this has resulted in a lower demand globally.
July 8, 2022OPEC+ boosts June crude output by 390,000 b/d, but wide quota gap persists: Platts survey | S&P Global Commodity Insights
OPEC and its Russia-led allies hiked crude oil production by 390,000 b/d in June, according to the latest Platts survey by S&P Global Commodity Insights, though almost all members continued to struggle to hit their output targets. The supply chain disruptions caused globally by the pandemic, coupled with geopolitical tensions and technical issues which resulted in a quota gap.
July 5, 2022Saudi Arabia sets August crude prices to Asia at near-record high
Saudi Arabia, the world’s top oil exporter, raised August’s crude oil prices for Asian buyers to near record levels amid tight supply and robust demand. OPEC+ has decided to stick to their projected market output despite demands from the United States and the United Kingdom to increase their oil output, in order to lower global oil prices.
July 5, 2022Shell Invests in Qatar’s $29 Billion Liquefied Gas Project
SHELL PLC became the latest international energy company to invest in Qatar’s $29 billion liquefied natural gas project, clinching a 6.25% stake as Europe races to secure new supplies of the fuel. This will cause the Gas output for Qatar to increase by 40% to 110 Million tons per year, in addition to cooperation from the gas firms of Total Energies SE and Exxon Mobil Corp.
July 5, 2022Oil falls as recession fears boost demand concerns
Oil plummeted by about $10 a barrel on Tuesday as concerns of a global recession curtailing demand overshadowed a strike by Norwegian oil and gas workers that could cut exports and exacerbate supply shortages. The demand for crude oil has sank, and fears of a recession have increased globally as central banks take aggressive measures against inflation.
July 4, 2022Oil prices reverse losses, gain on tight supply concerns
Oil prices reversed losses and edged up on Monday as concerns of tight supply amid lower OPEC output, unrest in Libya and sanctions on Russia outweighed fears of a global recession. This is due to Output decreasing in 10 countries by 100,000 BPD to 28.52 million BPD which is different from their projected increase of 275,000 BPD.
June 30, 2022Oil dips as supply concerns linger and OPEC+ sticks to policy
Oil prices sank around 3% on Thursday as OPEC+ confirmed it would only increase output in August by as much as previously announced despite tight global supplies, but left the market wondering about future output. This comes as a result of the OPEC+ meetings which included Russia and discussed strategic cooperation.
June 30, 2022OPEC+ reaffirms August oil production hike, leaves future output policy undecided
An increasingly stretched OPEC and its allies on June 30 reaffirmed plans for a nominal 648,000 b/d production rise in August, as questions continued to swirl about how much crude oil the group will be able and willing to pump in the months ahead.The OPEC+ and Russia, have been slowly raising their quotas each month, aiming to restore production to pre-pandemic levels by August, but many countries have not been able to keep up, due to slow infrastructure, lack of funds or political issues.
June 29, 2022Oil prices rise for fourth day on supply worries
Oil prices slid about 2% on Wednesday as a rise in U.S. gasoline and distillate inventories coupled with worries about slower economic growth around the world offset ongoing concerns about tight crude supplies. One of the reasons for the rise in oil prices is the stronger dollar which makes oil more expensive and slow economic growth globally.
June 27, 2022Oil prices edge higher ahead of G7 talks on new Russian sanctions |
Oil rose $2 a barrel on Monday as the prospect of even tighter supplies loomed over the market as the Group of Seven nations promised to tighten the squeeze on Russian President Vladimir Putin’s war chest, while actually lowering energy prices. Also, G7 should consider negotiations with the oil exporting nations of Iran and Venezuela due to the fact they both have been facing sanctions which affected their oil exportation techniques.
June 24, 2022OPEC and allies set to hold two meetings next week, OPEC website
OPEC is set to hold an ordinary meeting on June 29 followed by a meeting of OPEC and non-OPEC members on June 30, the producer group’s website showed.
June 23, 2022OPEC+ to stick to oil supply rise plan as Biden heads to Saudi – sources
OPEC and allied producing countries, including Russia, will likely stick to a plan for accelerated oil output increases in August, sources said, hoping to ease surging oil prices and inflation pressure as U.S. President Joe Biden plans to visit Saudi Arabia and the Middle East. This occurred after Biden’s administration pleaded for increased supply from the OPEC+ members as the world struggles to tackle the energy crisis.
June 21, 2022Kuwait has the capacity to reach its OPEC quota and any future increases -KPC CEO
Kuwait Petroleum Corporation chief said on Tuesday the Gulf oil producer had the capacity to reach its OPEC quota and any future increases. According to the KPC CEO Sheikh Nawaf Saud AlSabah the state-owned oil company is planning on investing in pipelines and the monetization of them as was the case by Aramco and ADNOC.
June 20, 2022Oil swings higher as tight supplies overshadow demand destruction
Oil prices swung higher in volatile trading on Monday, as traders focused on tight supplies over slowing global economic growth. The main factors that have affected the Oil demand increase are economic sanctions on Russia and the high prices decreasing demand internationally.Analysts believe that a global recession is imminent due to the increased inflation within the United States.
June 18, 2022OPEC’s Barkindo says common objective with non-OPEC partners is market stability
The common objective of the Organization of the Petroleum Exporting Countries and its non-OPEC partners has always been to maintain oil market stability, not to raise prices or bring them down, OPEC Secretary General Mohammad Barkindo said on Saturday. Moreover, the secretary general stated that the stability of oil prices globally is the responsibility of all oil producing nations in accordance with the market, and the laws of supply and demand.
June 18, 2022Oil slumps 6% to four-week low on recession worries, strong dollar
Oil prices tumbled about 6% to a four-week low on Friday due to the worries that interest rate hikes by major central banks could slow the global economy and cut demand for energy. Many central banks have globally tightened interest rates to fight inflation, however a global recession is imminent and can not be avoided.
June 17, 2022Exclusive: China firms in advanced talks with Qatar for gas field stakes, LNG offtake
China’s national oil majors are in advanced talks with Qatar to invest in the North Field East expansion of the world’s largest liquefied natural gas (LNG) project and buy the fuel under long-term contracts, three analysts have said.This deal will allow China to diversify their imports and also increase the exports of Qatar to China, as was the case when Qatar was China’s largest LNG supplier.
June 17, 2022UAE licenses third unit of Barakah nuclear power plant
The United Arab Emirates (UAE) has licensed the third unit of its Barakah Nuclear Energy Plant, the UAE’s permanent representative to the International Atomic Energy Agency, Hamad Al Kaabi, told reporters on Friday. This is significant because this is the Gulf region’s first fully operational nuclear powered plant Once completed, the plant will supply the UAE with 25% of national energy supply.
June 15, 2022Iraq to begin setting up electricity links with S.Arabia -state news agency
Iraq’s electricity ministry has begun establishing interconnection stations with Saudi Arabia and determining transmission paths, state news agency INA said on Wednesday. Due to a sudden electricity shortage during the summer months, Iraq has chosen to ask for assistance from Saudi Arabia which will join the list of other gulf states which assist Iraq’s energy supply.
June 13, 2022Exclusive: OPEC sees global oil demand growth slowing in 2023, sources say
World oil demand growth will slow in 2023, OPEC delegates and industry sources said, as surging crude and fuel prices help drive up inflation and act as a drag on the global economy. Although there has been a decline in oil growth in 2020 due to the pandemic, higher prices have become more realistic within this year. Moreover, the fuel price has rebounded this year because demand has soared after a decrease was witnessed in 2020.
June 12, 2022QatarEnergy signs deal with TotalEnergies for North Field East project
QatarEnergy signed a partnership deal with TotalEnergies on Sunday for the North Field East expansion of the world’s largest liquefied natural gas (LNG) project. The state owned company’s Chief Executive said more partners would be announced in the coming days.The rich Gulf state is relying on foreign consultants to develop the $30 billion expansion of the North Field project. The state of Qatar’s minister of energy stated that all foreign companies have been chosen and an official announcement will be made soon.
June 10, 2022Oil dives as U.S. inflation data surges; China imposes lockdowns
Oil prices sank on Friday, after U.S. consumer prices rose more than expected, and China imposed new Covid-19 lockdown measures .Many factors have contributed to the Oil dives such as the Iranian state removing nuclear monitoring, and Brent crude fell by $1.19 to $121.88 a barrel.
June 8, 2022Eni to join Exxon, Total, Shell, Conoco in Qatar’s mega-LNG expansion
Italian producer Eni (ENI.MI) has been picked, along with another four oil majors, by Qatar as partners in the near $30 billion expansion of the world’s largest liquefied natural gas (LNG) project,analysts said on Wednesday. The State sponsored company of Qatar Energy will hold a news conference and announce that the North Field Expansion project will expand from 77 million tonnes per annum (mtpa) to 126 mtpa by 2027.
June 8, 2022OPEC+ efforts to boost oil output ‘not encouraging’, UAE minister says
Efforts by OPEC+ oil producers to boost output are “not encouraging”, UAE energy minister Suhail al-Mazrouei said on Wednesday, noting the group was currently 2.6 million barrels per day short of its target.The minister Suhail Mohamed Al Mazrouei stated that the economic necessities of China will boost oil output since recent lockdown measures have decreased.
June 6, 2022Saudi Arabia hikes July crude prices surprisingly high for Asia buyers
Saudi Arabia, the world’s top oil exporter, raised July crude oil prices for Asian buyers to higher-than-expected levels amid concerns about tight supply, coupled with expectations of strong demand in the summer. The increase that was noted was approximately $6.5 a barrel, which is a substantial increase compared to the $2 a barrel previously expected by analysts.
June 3, 2022South Korean companies to build $1 billion green hydrogen plant in UAE
Three South Korean companies have signed an agreement to build a $1 billion green hydrogen and ammonia production plant in the United Arab Emirates, their UAE partner said on Friday. The attractiveness of green hydrogen has increased recently due to the fact it passes water through an engine to produce renewable energy and decrease greenhouse gas emissions. The plant is expected to be built near Abu Dhabi and is in accordance with UAE’s initiative to reduce reliance on oil and gas sectors.
June 2, 2022Iran’s energy export revenue up 60 pct in March-May vs year ago: Oil ministry media
Iran’s energy export revenue is 60 percent higher in the first two months of the Iranian year (March 21 to May 21) compared to the same period a year ago, an official from the Iranian oil ministry told SHANA news agency on Sunday. Although Iran has been hit with heavy sanctions by the US, the withdrawal of Trump from Iranian sanctions in 2018 has allowed the country’s oil exports to increase.
June 2, 2022OPEC+ raises output faster than expected as Russia’s war roils global energy markets
OPEC and its oil-producing allies agreed to hike output in July and August by a larger-than-expected amount, as Russia’s invasion of Ukraine wreaks havoc on global energy markets. This decision came as a result of Biden’s administration urging Oil companies to increase output in order to stabilize oil prices globally.
May 29, 2022Chairman of the Board of Directors of ACWA Power Saudi Arabia to CNBC Arabia: We signed an agreement for the Oman hydrogen project to produce green ammonia in cooperation with Omani OQ and Air products
Saudi Arabia’s ACWA and Oman’s OQ signed a deal to produce green ammonia energy. The project should support the regional effort to push renewable energy projects and part of the MOU signed between Oman and Saudi Arabia in December.
May 25, 2022Kuwait to start building world’s largest petroleum research center – oil ministry | Reuters
Kuwait plans to start building the world’s largest petroleum research center by the end of the year, the oil ministry said on Twitter on Wednesday. According to the ministry, the project will cost an estimated 120 Million Dollars and has been stalled due to logistical obstacles. The center will be created South of Kuwait City in Ahmadi and focus mainly on perfecting petroleum engineering techniques and innovative crude oil extraction which is essential to the field.
May 24, 2022Saudi Arabia says it’s done all it can for the global oil market, Energy & Commodities – THE BUSINESS TIMES
Saudi Arabia’s foreign minister said there’s nothing more the kingdom can do to tame oil markets, implying that the world’s biggest crude exporter has no plan to accelerate its gradual production increases.
May 20, 2022Qatar and Germany sign an energy partnership agreement
On May 20th, Germany and Qatar signed an agreement to develop their partnership in the energy field during the Emir of Qatar, Sheik Tamim bin Hamad Al Thani, visit to Germany. The war in Ukraine caused disruption of gas supplies from Russia to many European countries, and Europe is trying to reduce its reliance on Russian energy by the end of the year.
May 16, 2022Saudi Arabia set for oil output capacity above 13 million barrels per day by 2027, minister says | Reuters
Saudi Energy Minister Abdulaziz bin Salman said that his country is on track to lift oil production capacity by more than 1 million barrels per day to over 13 million bpd by the end of 2026 or the start of 2027.
May 16, 2022Bahrain still evaluating giant shale oil discovery despite high oil prices: minister | S&P Global Commodity Insights
Bahrain’s oil minister told reporters on May 16 that his country has yet to take a decision on its 80-billion-barrel offshore shale oil discovery in spite of higher oil prices. Due to the requirement of foreign consultations for this project, this has caused the process of development to be delayed. The oil ministry planned to develop the refineries within a period of five years with the support of international oil companies, but progress has been limited.
May 13, 2022Saudi Prince Abdulaziz bin Salman: Record Fuel Costs Driven by Refining Crunch – Bloomberg
The Energy Minister of Saudi Arabia Prince Abdulaziz bin Salman blamed the rise in gas prices on the closure of refineries in the US and Europe, not any shortage in oil supply.
May 10, 2022Saudi, UAE energy ministers say NOPEC bill risks destabilizing the oil market | S&P Global Commodity Insights
Targeted by so-called NOPEC legislation in the US that would allow antitrust lawsuits against the producer alliance, top OPEC officials said on May 10 that the bill would worsen market volatility by driving away investment in the oil industry. Due to the Russian invasion of Ukraine, global oil prices have substantially increased throughout the world.
May 5, 2022OPEC+ agrees to another modest production increase after EU outlines Russian oil ban
Oil producer group OPEC+ agreed on Thursday to raise production targets by 432,000 barrels per day for June, sticking to an existing strategy of gradually unwinding record supply cuts.
May 3, 2022Saudi Arabia lowers Arab Light oil price to Asia, Europe in June | Reuters
Saudi Arabia lowered the price of its Arab Light crude grade to Asia and Europe for the month of June, according to a pricing document released by oil producer Saudi Aramco on Sunday.
April 20, 2022China grows reliance on Middle Eastern crudes in Q1 as Russian inflows drop 11% | S&P Global Commodity Insights
China’s reliance on Middle Eastern crude oil grew sharply in the first quarter of 2022, as the country reduced inflows from Russia, Brazil and the US, data from the General Administration of Customs showed. Middle Eastern oil exports are 5.35 Million barrels per day accounting for 47.5% of market share within China. Specifically, Oman, Iraq, UAE, and Kuwait all increased their exports to China in the three-month period during 2022’s Q1 from 4.7% to 30.1%.
April 20, 2022Saudi says it and Kuwait have right to exploit gas-rich offshore zone -state news agency | Reuters
The Saudi cabinet reaffirmed the right of the kingdom and its neighbor Kuwait to exploit natural resources at a joint, energy-rich, offshore area. Iran has called for negotiations with Saudi and Kuwait to discuss their joint projects within the Durra gas field. This gas field is situated in the Gulf which is a contested water source by Iran, Saudi, and Kuwait.
April 20, 2022Japan refiner Eneos to buy alternative to Russian crude from Middle East
Japan’s biggest oil refiner Eneos Holdings Inc has no plans to buy Russian crude until all problems related to the Ukraine crisis are over and will purchase alternative supplies from the Middle East, its chairman said on Wednesday. As such, Eneos has stated that due to the “Special operation” occurring in Ukraine Eneos will not import any more oil from Russia.
April 20, 2022Iraq Aims to Close Qatar Gas Import Deal to Add Supply
Iraq plans to sign a deal next month to import liquefied natural gas from Qatar in an effort to secure enough of the fuel used for power generation and to diversify its sources of supply. Iran had a problem supplying Iraq with its LNG needs due to increased domestic demands inside Iran.
April 19, 2022Iran needs $80 bil gas investment to avoid becoming an importer: Owji | S&P Global Commodity Insights
Iranian oil minister Javad Owji said April 19 that his country needs to invest $80 billion in its gas industry to achieve its 1.4 Bcm/d production target. The flow of foreign investment into the US-sanctioned country has thinned since the US withdrew from a nuclear deal in 2018.
April 17, 2022Saudi Arabia’s MBS and Russia’s Putin back OPEC+ efforts to balance oil markets | S&P Global Commodity Insights
Saudi Arabia’s Crown Prince Mohammed bin Salman and Russian President Vladimir Putin discussed the role their countries play in ensuring oil market stability in a phone call on April 16, the Kremlin said in a statement. Russia, which is a Non-Opec oil exporting leader, was hit by western sanctions targeting its financial sector after it invaded Ukraine, which saw its crude production fall to 10.04 million b/d. Consequently, European economies have halted their oil trade with Russia due to the invasion of Ukraine.
April 17, 2022Qatar Energy Minister meets Korean counterpart
The energy minister of Qatar met with the Korean Energy minister within Doha on April 17, 2022 to discuss bilateral cooperation in the energy sectors in both countries.
April 15, 2022Iran Guards say they have seized two ships with smuggled fuel in Gulf
Iran’s Revolutionary Guards said on Friday they had seized two vessels along the country’s coast on the Gulf and the nearby Gulf of Oman for allegedly smuggling fuel. Due to subsidies and currency devaluation, Iran has some of the world’s cheapest fuel prices and has been fighting rampant fuel smuggling to neighboring states.
April 15, 2022Iraq maintaining its position in Indian market despite rise in Russian oil imports – SOMO head
Although India has increased its importation of Russian oil, Iraqi oil still remains a majority of Indian imported oil into the country. The reasoning behind the Russian alternative is that Indians and other consumer countries noticed that Russian oil is sold at a discounted price per barrel. As such, demand for Russian oil rapidly increased internationally. However, Iraq has been able to continue their competitive oil exports to India because of their government strategic agreements which bind the two countries. Moreover, Iraq has agreements with private companies within India.
April 13, 2022Kuwait, Saudi Arabia invite Iran to hold talks on gas-rich offshore zone -SPA
Saudi Arabia and Kuwait invited Iran to negotiate the eastern limit of a joint, energy-rich, offshore area, including the Durra natural gas field. Both states have claimed it is their right to develop in this area, with the Kuwaiti government stating that Durra is “entirely a Kuwaiti and Saudi field.” Iran has claimed that it has a stake in the field and the Saudi-Kuwaiti agreement to develop it is “illegal.”
April 12, 2022OPEC cuts 2022 world oil demand forecast due to Ukraine war
In a monthly report, OPEC said world demand would rise by 3.67 million barrels per day (bpd) in 2022, down 480,000 bpd from its previous forecast. According to the report, “the strong rise in commodity prices in combination with ongoing supply-chain bottlenecks and COVID-19-related logistical logjams in China and elsewhere are all fuelling global inflation.” OPEC said inflation was the major factor impacting the world economy and lowered this year’s economic growth forecast to 3.9% from 4.2% and said there was a chance of a further cut.
April 12, 2022Saudi Arabia leads OPEC decision to drop IEA data as US ties fray
OPEC has chosen to stop using oil data from the IEA, which is considered the West’s energy watchdog. This has raised concerns about the strained relationship between Saudi Arabia and Washington and how it may be impacting reactions to the Ukraine-Russia crisis. U.S. President Biden is facing pressure to lower gasoline prices and address inflation ahead of mid-term elections in November, however the lack of relations with Saudi Arabia has proven to make the situation even more delicate. Saudi Arabia and its allies are likely unwilling to assist the United States due to the lack of American addressal of Gulf concerns about Iran at nuclear talks in Vienna, the lack of support for offensive operations by the Saudi-led coalition in Yemen, and imposed conditions on U.S. weapons sales to Gulf states. OPEC’s dropping of the IEA data reflects this frustration of bias from the IEA towards the United States, and other factors straining U.S.-Gulf relations.
April 11, 2022OPEC tells EU not possible to replace potential Russian oil supply loss
OPEC Secretary General Mohammad Barkindo told the European Union on Monday that current and future sanctions on Russia could create one of the worst ever oil supply shocks and it would be impossible to replace those volumes.
April 10, 2022Kuwait raises May crude prices to Asia to record levels
Kuwait has raised the official selling prices (OSPs) for two crude grades it sells to Asia in May to record levels. The producer has set May Kuwait Export Crude (KEC) price at $9.30 a barrel above the average of Oman/Dubai quotes, up $4.50 from the previous month. It also raised the May Kuwait Super Light Crude (KSLC) OSP to $9.65 a barrel above Oman/Dubai quotes, up $3.70.
April 8, 2022Iraq can export more than 3.3 mln bpd from its southern ports, oil minister says
Iraqi oil minister Ihsan Abdul-Jabbar said Iraq can secure exports of more than 3.3 million barrels per day (bpd) from its southern ports, state news agency INA reported. The minister expressed his optimism that oil prices would continue to rise throughout 2022.
April 6, 2022Some Indian refiners set up to cut May Saudi oil, snap up Russian barrels
To mitigate the rising cost of oil imports, India has turned to Russian barrels that are available at a deep discount to the dated Brent benchmark, citing “national interests”. The Middle East accounts for the bulk of India’s oil imports, but at least two Indian refiners are planning on buying less Saudi oil as crude oil prices reach record highs.
April 5, 2022Iraq’s March oil output falls as gap with its OPEC+ quota widens
Iraq pumped 4.15 million barrels per day (bpd) of oil in March, 222,000 bpd short of its production quota under an agreement with other OPEC+ producers. Iraq’s March output fell by 112,000 bpd from February, largely due to field outages in the south, data from SOMO showed. Upgrade work on Iraq’s Gulf ports, which lasted for most of 2021 and is scheduled to be finished in the current quarter, has also prevented Iraq from pumping larger volumes.
April 3, 2022Oil prices fall after truce in Middle East conflict, petroleum reserve news
Oil prices fell as the United Arab Emirates and the Houthis welcomed a truce that would halt military operations on the Saudi-Yemeni border, alleviating concerns about potential supply issues. Early losses this week also come after oil prices settled 13% down last week due to President Biden’s U.S. oil reserves release.
April 1, 2022OPEC output rise in March falls short of pledged increase – survey
OPEC pumped 28.54 million barrels per day (bpd) in March, a Reuters survey found, up 90,000 bpd from February but short of the 253,000 bpd increase called for under its deal with allies including Russia. OPEC+ met on March 31 and confirmed previously agreed plans of a 400,000 bpd increase in March from all OPEC+ members, of which about 253,000 bpd is shared by the 10 OPEC producers the agreement covers. Outages in Libya and Nigeria also limited the increase in OPEC’s output.
March 31, 2022EU regulators close antitrust investigation into Qatar Energy
EU antitrust regulators closed their investigation into Qatar Energy after evidence they collected did not confirm their initial concerns with Qatar Energy’s supply agreements with European gas importers and their ability to sell liquefied natural gas in alternative destinations within Europe.
March 31, 2022OPEC holds special meeting to ditch IEA data – source
OPEC held an unusually brief meeting to ditch the International Energy Agency (IEA) from its list of trusted data contributors. Earlier this week, OPEC experts recommended ditching the IEA and choosing consultancies Rystad and Wood Mackenzie instead, in yet another sign of a hardening standoff with the West.
March 30, 2022Saudi Arabia may raise May crude prices to Asia to new record levels
Saudi Arabia is expected to raise crude prices to Asia in May, with the official selling price (OSP) for flagship Arab Light crude rising by $5 a barrel on average to reach nearly $10 a barrel above Oman/Dubai quotes, the grade’s highest premium ever. However, spot premiums have halved from peaks over the last week in muted trade, prompting some buyers to call for smaller hikes in Saudi oil prices. Saudi Aramco may also reduce price hikes for Saudi medium and heavy grades as Russian Urals crude is still heading into India, one respondent said. State oil giant Saudi Aramco sets its crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month, based on yields and product prices.
March 29, 2022Saudi energy minister says oil alliance OPEC+ will leave politics out of output decisions
Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, declared that OPEC+ would keep politics out of decision-making in favor of the “common good” of stabilizing energy prices. The minister said the organization’s very existence is dependent on separating its mission to stabilize oil prices from other geopolitical factors. UAE Energy Minister Suhail Al Mazrouei added that the organization had continued to operate while constituent members were at war, without taking a side. “Our aim is to calm the market, trying to come up with volumes as much as possible, and if we are asking anyone to leave, then we are raising the prices,” he said.
March 27, 2022France, Saudi, UAE talk about diversifying Europe energy supplies
Foreign Minister Jean-Yves Le Drian in a phone call with his Saudi and UAE counterparts Faisal bin Farhan Al Saud and Abdullah bin Zayed al-Nahyan underscored the importance of coordination with the two Gulf states with a view to diversifying the oil and gas supplies of European states, according to a statement from the Foreign Ministry. Le Drian is also scheduled to visit Qatar next week, during which the topic of energy diversification will be discussed, BFMTV news reported.
March 26, 2022Qatar to produce 800MW of solar power this year
Qatar’s Minister of Environment and Climate Change, HE Sheikh Faleh bin Nasser bin Ahmed bin Ali al-Thani, announced that Qatar would start producing solar power this year, in an effort to reduce gas emissions and increase the use of renewable energy. The minister declared Qatar would produce 800 megawatts of solar power this year, and the country’s goal of producing 1.6 gigawatts of solar power by 2030. Sheikh Faleh also noted that Qatar has managed to reduce 80% of gas emission in the Al Shaheen Gas field, one of the largest gas fields in the world.
March 25, 2022Oil rises to over $120/bbl after attack on Saudi facilities
Crude prices rose more than 1 percent, bringing the price to $120 a barrel, as traders dealt with the impact of a missile attack on an oil distribution facility in Saudi Arabia. Yemen’s Houthis said they launched attacks on Saudi energy facilities on Friday and the Saudi-led coalition said Aramco’s fuel distribution station in Jeddah had been targeted by an attack, but that a fire in two tanks at the facility had been brought under control.
March 24, 2022UAE expands nuclear power plant, doubles electricity production
The United Arab Emirates announced that it expanded its nuclear power plant, which was the first to be established in the Arab world. The Barakah Nuclear Energy Plant now produces a total 2,800 megawatts of total electricity, doubling the previous output. While oil and gas still dominate the energy production of the UAE, the country is looking to expand its renewable energy alternatives, even positing a target of the Barakah plant producing 85% of the state’s clean energy by 2025.
March 24, 2022U.S. refiners turn to Middle East for fuel oil after Russia import ban
After President Biden banned Russian oil imports over the invasion of Ukraine, U.S. refiners have turned to Middle Eastern producers for fuel oil cargoes. Last year, Russia accounted for just under half of the U.S. fuel oil imports, while the Middle East only provided about 5%. Middle East supplies are set to make up at least 17% of April U.S. fuel oil purchases, according to preliminary Refinitiv Eikon tanker tracking data. Saudi Arabia, Kuwait, Iraq and the United Arab Emirates make up roughly half of all fuel oil cargoes under contract and are expected to head to the United States in April. Iraqi fuel oil arrived in the U.S. this March, for the first time since mid-2021.
March 22, 2022Egypt, UAE, Israel discuss energy market stability
Egypt, UAE, and Israel have faced heavy pressure from Washington to shun Russia and, in the Emirates’ case, also to supply more oil to a world trying to wean itself from Russian energy. That arm-twisting has come as the United States pursues a renewed nuclear deal with Iran, a rival of Israel and the UAE, that would lift international sanctions on Tehran in exchange for limits on its nuclear program. The Emirates and Saudi Arabia, another important American ally in the region, have complained about what they see as a lack of American support after attacks that were linked to Iran.
March 21, 2022UAE, Netherlands forge partnership to boost clean hydrogen usage
As part of the Joint Economic Committee, the UAE and the Netherlands have been in discussion to identify common interests and create a partnership for decarbonization of the energy sector and increasing the use of clean hydrogen. Suhail Mohammed Al Mazrouei, UAE Minister for Energy and Infrastructure, and the Dutch Minister for Foreign Trade and Development Cooperation, Liesje Schreinemacher, signed the MoU at the Dutch Pavilion at Expo Dubai on Tuesday.
March 21, 2022Saudi Arabia, Kuwait agree on developing Durra gas field in the Gulf
Saudi Arabia’s energy minister has signed a document with his Kuwaiti counterpart to develop the Durra gas field, Kuwait Petroleum Corporation said in a statement on Monday. The Durra field, which is shared between the two Gulf states, is expected to produce one billion standard cubic feet per day of gas and 84,000 barrels per day of condensates according to the statement.
March 20, 2022Saudi oil refinery output drops following Houthi attack: State media
Production at Saudi Arabia’s oil refinery in Yanbu has dropped temporarily following a drone attack overnight claimed by the Houthi group in Yemen, the Saudi state news agency, SPA, reported on Sunday. The refinery, known as Yasref, on the Red Sea, will compensate for the shortfall from its stockpiles, the news agency said, citing a source at the Saudi energy ministry.
March 19, 2022Yemen Houthis attack Saudi energy facilities, refinery output hit
Yemen’s Iran-aligned Houthi group fired missiles and drones at Saudi energy and water desalination facilities, causing a temporary drop in output at a refinery but no casualties, the Saudi energy ministry and state media said on Sunday. “The assault on Yasref facilities has led to a temporary reduction in the refinery’s production, which will be compensated for from the inventory,” a statement said, referring to Yanbu Aramco Sinopec Refining Company, a joint venture between Saudi Aramco and China Petrochemical Corporation. Later in the morning, a water desalination plant in Al-Shaqeeq, a power station in Dhahran al Janub, and a gas facility in Khamis Mushait, were targeted as well.
March 19, 2022Iran oil minister says aiming for 1.4 million bpd crude exports
“In parliament, lawmakers decided to raise the ceiling of exports of oil and condensates from 1.2 million barrels (per day) to 1.4 million barrels. The Oil Ministry will do everything in its power to realize the level set in the budget,” Iranian Oil Minister Javad Owji said. Iran, facing U.S. sanctions on its crude oil exports, does not divulge exact figures on its oil sales. Owji said his ministry planned to raise production capacity of crude and condensates to 5.7 million bpd from about 3.7-4 million bpd, without giving a timeframe. In late 2020, Iran unveiled an ambitious plan to increase production capacity to more than 6.5 million bpd by 2040, a statement that is said to be unrealistic for experts.
March 18, 2022IEA urges reduced transport to cut oil use amid supply crunch
The plan by the Paris-based grouping of 31 industrialized countries – which does not include Russia – underlines the urgency of a supply crunch brought on by sanctions and buyer aversion to Russian oil, which has raised fuel prices. The recommendations – which include lower speed limits, working from home, car-free days in cities, cheaper public transport and more carpooling – could cut oil demand by 2.7 million barrels a day within four months, the International Energy Agency (IEA) said. The IEA urged governments to make the changes permanent, not just for economic reasons but in order to combat climate change.
March 18, 2022OPEC+ supply gap widens further as February compliance jumps
OPEC+ compliance with oil production cuts rose to 136% in February from 129% in January, two sources said, missing its target by over 1 million barrels per day (bpd), as an already tight oil market braces for major Russian disruption. The International Energy Agency said this week the oil market was set for a 700,000 bpd supply deficit in the second quarter as Western sanctions on Moscow and buyer reluctance could lead Russian oil supplies to drop by 3 million bpd in April.
March 17, 2022Most Gulf bourses rise tracking oil prices; financials boost Saudi
Most stock markets in the Gulf ended higher on Wednesday, as oil prices jumped after the International Energy Agency said three million barrels a day of Russian oil and products could be shut in from next month. “Gulf Cooperation Council stock markets were mostly performing positively today while investors return to the market to buy the dip after a week of price corrections,” wrote Miguel Rodriguez, chief market analyst at CAPEX.com, adding uncertainties on the supply availability of oil amid rising COVID-19 cases in China are still weighing on sentiment.
March 16, 2022UAE’s energy company ADNOC awards Dh2.4b in cementing services contracts
The UAE energy major ADNOC has signed ‘framework agreements’ valued at Dh2.4 billion for cementing services to five companies, including Halliburton Worldwide Ltd. Abu Dhabi and Baker Middle East. The other three are Emirates Western Oil Well Drilling & Maintenance Co., NESR Energy Services and Emjel Oil Field Services. These cover ADNOC’s onshore and offshore fields and will run for five years with an option for a further two years. Yaser Saeed Almazrouei, ADNOC Upstream’s Executive Director, said, “The awards for cementing services will support the ongoing expansion of ADNOC’s drilling activities as we grow our production capacity, strengthening our position as a reliable global supplier of some of the world’s most carbon efficient barrels.” Cementing represents a major process in the drilling and completion of oil and gas wells.
March 16, 2022UAE’s Masdar announces start of construction for solar PV plant in Azerbaijan
UAE-based renewable energy company Masdar has announced the formal start of construction for its 230-megawatt (MW) Garadagh solar PV plant in Azerbaijan. Masdar had signed agreements to develop the Garadagh project, situated nine kilometers northwest of the Alat settlement, in April of last year, with the plant expected to start commercial operation in 2023. The project will help to generate half a billion kilowatt-hours of electricity annually, adequate to meet the needs of over 110,000 houses, and will reduce emissions by more than 200,000 tons a year, a statement said. The Abu Dhabi Fund for Development (ADFD) is a finance partner for the project. The plant is the country’s first foreign investment-based independent solar power project.
March 15, 2022Oil price plunges on easing supply concerns, China COVID-19 cases
Oil prices tumbled to their lowest in almost three weeks on Tuesday as supply disruption fears eased and surging COVID-19 cases in China spurred demand concerns. The steep decline followed a statement from Russian foreign minister Sergei Lavrov, saying that Moscow is in favor of the 2015 Iran nuclear deal resuming as soon as possible. The talks to revive the nuclear accord, which would lead to sanctions on Iran’s oil sector being lifted and allow Tehran to resume crude exports, had recently been stalled because of Russian demands.
March 14, 2022Saudi cooperation with China continues with finalization of long-planned refinery deal
Saudi Aramco made the “final investment decision” to develop a refinery and petrochemical complex in northeast China with the North Huajin Chemical Industries Group Corporation and Panjin Xincheng Industrial Group companies, the official Saudi Press Agency reported. One Aramco executive said that China is key to their plans to expand in Asia. “China is a cornerstone of our downstream expansion strategy in Asia and an increasingly significant driver of global chemical demand,” said Mohammed al-Qahtani, per the agency. China has become Saudi Arabia’s top trading partner. The deal is the latest example of their extended cooperation, touching on multiple sectors as well.
March 12, 2022Germany discussed energy cooperation with Qatar
Germany is to close its last nuclear power plants this year and plans to build its first liquefied natural gas (LNG) terminal within two years. “We discussed bilateral cooperation particularly in energy and corporate investments,” Joerg Kukies, the German chancellery’s state secretary, stated, adding he talked to Deputy Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani, who also heads the Qatar Investment Authority sovereign wealth fund. Qatar has said it could divert probably 10-15% of its LNG shipping volumes, as the core energy producer to counter dependence on Russia. It plans to raise LNG production capacity to 126 million tonnes a year by 2027 from 77 million tonnes at present.
March 11, 2022Yemen’s Houthis claim drone attack on refinery in Saudi capital
The Iran-aligned Houthi movement targeted a Saudi Aramco refinery in Riyadh using three Samad-3 drones, its military spokesman Yahya Sarea said on Friday. Six Samad-1 drones were also fired at Aramco facilities in the Saudi cities of Jizan and Abha. According to the energy ministry of the Kingdom, “these repeated acts of sabotage and terrorism on vital installations and civilian structures do not just target the Kingdom, but aim to undermine the security and stability of global energy supplies.”
March 10, 2022Aramco says China joint venture to develop refinery and petrochemical complex
The Saudi Aramco joint venture in China, expected to be operational in 2024, combines a 300,000 barrel-per-day capacity refinery and ethylene-based steam cracker, with Aramco set to supply up to 210,000 barrels a day of crude oil feedstock. Huajin Aramco Petrochemical Company is a joint venture between Saudi oil giant Aramco and North Huajin Chemical Industries Group Corporation and Panjin Xincheng Industrial Group.
March 10, 2022UAE committed to OPEC+ pact, no plan to up own output -WAM
Until now, OPEC+ has resisted calls from the United States and others to increase output, even as oil prices surge to more than $120 a barrel. The United Arab Emirates is committed to the OPEC+ agreement on monthly oil production and has not agreed to individually increase production outside that framework, UAE energy minister Suhail al-Mazrouei told state news agency WAM.
March 9, 2022UAE committed to OPEC+ agreement and existing mechanism -UAE energy minister
The United Arab Emirates is committed to the OPEC+ agreement and its existing monthly production adjustment mechanism, the UAE energy minister, Suhail al-Mazrouei tweeted. “The UAE believes in the value OPEC+ brings to the oil market”. His comments came after UAE’s ambassador to Washington said his country favors an oil production increase and will be encouraging OPEC to consider higher output.
March 4, 2022Italy looks to boost energy ties with Qatar in wake of Ukraine crisis
Energy Transition Minister Roberto Cingolani said that Italy aimed to rapidly cut more than half its Russian gas import and to be independent of Russian supplies within two or three years. However, “in an emergency period, one can fix a maximum price above which European operators cannot buy,” he warned, adding that the move was needed to prevent Russia’s Gazprom profiting from surging energy prices. Italian Foreign Minister Luigi Di Maio flew to Qatar on Saturday for two days of talks on boosting energy cooperation as Rome stepped up efforts in order to secure new gas supplies in light of the Ukraine crisis.
March 3, 2022Higher oil prices boost Gulf markets, Aramco hits record high
Saudi Arabia’s benchmark share index ended 0.8% higher, with gains driven by Saudi Aramco which rose to a record high of 45 riyals and ended the session up nearly 3%. In the context of the war in Ukraine, “sanctions are pushing oil importers to look elsewhere for supplies at a time when the market is already struggling with rising demand and the sluggish supply policy laid out by OPEC,” said Daniel Takieddine, CEO MENA at BDSwiss. Abu Dhabi, Dubai and Qatar have seen their index rise too.
February 28, 2022Oil settles higher on Russian supply disruption
Oil prices jumped on Monday as Western allies imposed more sanctions on Russia and blocked some Russian banks from a global payments system, which could cause severe disruption to its oil exports. The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, a group known as OPEC+, are due to meet on Wednesday. The group is expected to stick to plans to add 400,000 barrels per day (bpd) of supply in April. Ahead of the meeting, OPEC+ revised down its forecast for the oil market surplus for 2022 by about 200,000 bpd to 1.1 million bpd, underscoring market tightness.
February 28, 2022No consultations with Saudi concerning U.S. potential release of oil reserves – source
No consultations have taken place with Saudi Arabia regarding a potential release of oil reserves by the United States and its allies, a senior Gulf source with knowledge of the matter said. “It is not customary for Saudi Arabia or key OPEC+ producers to conduct consultations outside the group on oil policy, especially prior to a meeting,” the source explained.
February 28, 2022Iraq’s Kurdistan region presidency rejects federal court’s oil and gas ruling
The Kurdistan Region’s presidency in Iraq rejected on Monday a federal court ruling on its oil and gas activities, and said the region would continue to exercise its constitutional rights on the matter. The Kurdish regional government (KRG) has been developing oil and gas resources independently of the federal government, and, in 2007, enacted its own law that established the directives by which the region would administer these resources. The Kurdistan region produced 425,000 barrels per day of oil in January, according to a document by state-owned marketer Somo seen by Reuters.
February 28, 2022Saudi Arabia’s sovereign fund lays out plan for green financing
Saudi Arabia’s sovereign wealth fund (PIF) laid out plans on Monday for raising green debt as the world’s top oil exporter strives to reach net zero carbon emissions by 2060. The PIF is at the center of Saudi Arabia’s ambitious plans to create new sectors and diversify revenues away from hydrocarbons. PIF published its green finance framework that will allow it to tap world markets to issue debt linked to environmentally friendly goals, including through the sale of green bonds.The Saudi government is also preparing its own green debt sales. Finance Minister Mohammed al-Jadaan said in October that advisers had been appointed but the format had not yet been decided.
February 27, 2022Bahrain Says ‘Everything’s on the Table’ for Oil Privatizations
Bahrain is in the process of hiring advisers to help sell stakes in some of its oil and gas assets as the Gulf’s smallest economy looks to open up an industry closed to foreign investments for decades. Nogaholding, which owns Bahrain’s oil and gas assets, is due to appoint a consultant and a financial adviser to work on a national energy strategy. Bahrain would be following a strategy similar to its larger neighbors, Saudi Arabia and the United Arab Emirates. Nogaholding is also in the process of refinancing a $1.6 billion loan, which includes some environment, sustainability, and governance targets.
February 27, 2022Saudi crown prince says kingdom still committed to OPEC+ oil agreement with Russia
Saudi Arabia remains committed to OPEC+ agreement, Crown Prince Mohammed bin Salman told French President Emmanuel Macron on February 27, in an endorsement for the bloc’s alliance with Russia amid that nation’s invasion of Ukraine.
February 27, 2022OPEC+ seen sticking to plan despite price shock from Ukraine crisis
OPEC+ will probably stick to its plan of only gradually increasing oil production when it meets this week, according to several delegates, even after Russia’s invasion of Ukraine sent prices surging. Saudi Arabia, the world’s biggest oil exporter, is saying it’s committed to the OPEC+ agreement. The kingdom and neighboring UAE are among the few OPEC members with significant spare output capacity.
February 27, 2022OPEC+ partners to decide whether to pump more oil
The Russian Foreign Ministry has announced that the UAE and Russian foreign ministers would meet today in Moscow to discuss “further expanding multifaceted Russia-UAE relations.” Gulf powerhouse Saudi Arabia has not reacted to the invasion, like the UAE, Bahrain, and Oman. Kuwait and Qatar have only denounced the violence, stopping short of criticizing Moscow. Gulf countries “understand that they need to diversify their alliances to compensate for the perceived withdrawal of the United States from the region,” Gadel told AFP.
February 25, 2022Iran to enrich uranium to 20% even after nuclear deal – nuclear chief
Iran will continue to enrich uranium to 20% purity even after sanctions on it are lifted and a 2015 nuclear deal with world powers is revived. “(Uranium) enrichment … continues with a maximum ceiling of 60%, which led Westerners to rush to negotiations, and it will continue with the lifting of sanctions by both 20% and 5%,” said the head of Iran’s Atomic Energy Organization, Mohammad Eslami. Yet, Iranian officials had told Reuters earlier that Iran had agreed to suspend its 20% and 60% enrichment if an agreement is reached in the Vienna talks to salvage the 2015 pact.
February 25, 2022OPEC+ deal seen on track despite Russia’s Ukraine invasion -sources
A deal among OPEC+ oil producers including Russia is showing no cracks so far after Russia’s invasion of Ukraine, OPEC+ sources said, and the group is likely to stick to a planned output rise the following week despite crude topping $100 a barrel. A Russian oil source said on Wednesday, OPEC+ has held some informal talks during which Moscow explained its position on Ukraine and the other OPEC+ countries seemed to show a neutral stance.
February 24, 2022Oil tops $105/bbl after Russia attacks Ukraine
Oil prices jumped on Thursday, with Brent rising above $105 a barrel for the first time since 2014 before easing, after Russia’s attack on Ukraine exacerbated concerns about disruptions to global energy supply. Analysts say Brent is likely to remain above $100 a barrel until significant alternative supplies become available from U.S. shale or Iran, for example. The United States and Iran have been engaged in indirect nuclear talks in Vienna that could lead to the removal of sanctions on Iranian oil sales. Iran’s top security official, Ali Shamkhani, said on Twitter that it is possible to achieve a good nuclear agreement with Western powers after significant progress in negotiations.
February 24, 2022Aramco shares rise to record high as oil tops $100 for first time since 2014
Saudi Aramco shares surged as much as 4.2% to a record high 42.25 riyals ($11.26) as oil prices breached the $100 a barrel after Russia attacked Ukraine.
February 22, 2022Qatar’s LNG production capacity to reach 126 mln T a year by 2027, says Emir
Qatar’s Emir Sheikh Tamim bin Hamad al-Thani said on Tuesday that Qatar’s liquefied natural gas production capacity will rise to 126 million tonnes a year by 2027. Al Thani touted a carbon capture facility Qatar is building – the biggest in the Middle East – he said, which will isolate and store 2.5 million tonnes of carbon per year in four years. By 2030, the facility will isolate 9 million tonnes per year. He adds that Qatar is also ready for cooperation with Iran and Iraq on the gas market. Meanwhile, Iran’s President Ebrahim Raisi said Iran has high capacity for gas production for domestic use and exports and will play an important role in international markets.
February 22, 2022Iraq aims to shift investment priority from oil to gas sector, minister says
Iraq aims to shift its investment priority from the oil sector to gas for the first time in the country’s history, oil minister Ihsan Abdul-Jabbar said on Tuesday at a gas exporters conference in Doha. This would allow Iraq to increase its production of liquefied petroleum gas (LPG) and distillates, Abdul-Jabbar added.
February 22, 2022Qatar says “almost impossible” to quickly replace Russian supplies to Europe
Neither Qatar nor any other single country has the capacity to replace Russian gas supplies to Europe with liquefied natural gas (LNG) in the event of disruption due to a conflict between Russia and Ukraine, Qatar’s energy minister said on Tuesday. With most of Qatari volumes locked into long-term contracts mostly to Asian buyers, the amount of divertable volumes that can be shipped to Europe is only 10-15%, Saad al-Kaabi added. “Most of the LNG is tied to long-term contracts and destinations that are very clear. So, to replace that sum of volume that quickly is almost impossible”. Thus, Qatar and other countries such as Japan have recently been approached by the United States to reroute gas supplies to Europe in case conflict escalates.
February 22, 2022Iraq aims to shift investment priority from oil to gas sector, minister says
Iraq aims to shift its investment priority from the oil sector to gas for the first time in the country’s history, oil minister Ihsan Abdul-Jabbar said on Tuesday at a gas exporters conference in Doha. This would allow Iraq to increase its production of liquefied petroleum gas (LPG) and distillates, Abdul-Jabbar added.
February 22, 2022Qatar says “almost impossible” to quickly replace Russian supplies to Europe
Neither Qatar nor any other single country has the capacity to replace Russian gas supplies to Europe with liquefied natural gas (LNG) in the event of disruption due to a conflict between Russia and Ukraine, Qatar’s energy minister said on Tuesday. With most of Qatari volumes locked into long-term contracts, mostly to Asian buyers, the amount of divertable volumes that can be shipped to Europe is only 10-15%, Saad al-Kaabi, the energy minister, added. “Most of the LNG is tied to long-term contracts and destinations that are very clear. So, to replace that sum of volume that quickly is almost impossible.” Thus, Qatar and other countries, such as Japan, have recently been approached by the United States to reroute gas supplies to Europe in case conflict escalates.
February 21, 2022OPEC+ compliance with oil output cuts near 130% in January, source says
As producers fell further behind their target and signaling a tight market that could push prices higher, OPEC+ is undoing output cuts put in place after the pandemic slashed demand. The 129% compliance in January cited by the source would be the highest in more than two years and marks a rise from 122% in December and 117% in November. Compliance from OPEC countries was 133% in January, while non-OPEC producers stood at 123%, according to data provided by the source. The head of International Energy Agency’s (IEA) Fatih Birol has called on OPEC+ to narrow the gap between their oil production targets and actual output.
February 18, 2022Oil falls on prospect of Iran oil sanctions easing
Brent posted a small 0.9% rise in its ninth weekly gain, while WTI fell 1.7% week, snapping an eight-week rally. Fears over possible supply disruptions resulting from the Russian military presence at Ukraine’s borders limited losses this week. The West has threatened Russia, a top oil and gas supplier, with new sanctions if it attacks Ukraine; Russia denies planning any attacks. The oil market rose slightly in after-hours trading after U.S. President Joe Biden said that he was convinced Russian President Vladimir Putin had made a decision to invade Ukraine in the coming days. A senior European Union official said that a U.S.-Iranian deal to revive Iran’s 2015 nuclear agreement with world powers was close but success depended on the political will of those involved. Adding pressure onto WTI, U.S. drillers added four oil rigs this week, with the rig count.
February 18, 2022OPEC+ would seek to bring Iran into oil supply deal
OPEC+ will work to integrate Iran into its oil supply-limiting accord should an agreement be reached on reviving its nuclear deal with world powers, sources close to the group said, seeking to avoid market share competition that could hit prices. Due to the impact of sanctions on its exports, Iran is exempt from the existing deal between the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, to limit oil supply. While that exemption allows Iran to boost output, OPEC+ would eventually seek to bring Iran into the accord, sources said. OPEC+ sources have also made the point that extra Iranian supply could also help plug the hole in OPEC’s output target misses.
February 17, 2022Oil slides 2% as Iran talks offset Ukraine crisis
Oil prices fell about 2% on Thursday as talks to resurrect a nuclear deal with Iran entered their final stages and could unlock more crude supplies, but losses were limited by tension between top energy exporter Russia and the West over Ukraine. “(The) oil market is locked in a tug of war between Iranian sanctions relief and Russian-Ukraine tensions,” said Stephen Brennock at brokerage PVM Oil. However, tension over a possible Russian invasion of Ukraine continued to support oil markets because of the potential disruption to energy supplies.
February 17, 2022Qatar Energy sells April al-Shaheen at record premiums – sources
Qatar Energy has sold al-Shaheen crude loading in April at record premiums, two trade sources who track the grade closely said on Thursday. The four cargoes were sold in a tender at an average premium of $4.44 a barrel to Dubai quotes, several trade sources said, a jump from $2.67 on average last month.
February 17, 2022Qatar LNG exports down on mega trains outage
Exports of liquefied natural gas (LNG) from Qatar’s Ras Laffan liquefaction plant have been lower over the past few days as two of the facility’s mega trains have been down. Qatar, one of the world’s top LNG producers, has recently been approached by the U.S. to reroute gas supplies to Europe in case Russia attacks Ukraine and the United States imposes sanctions on Moscow. It has most of its volumes locked up under long-term contracts mostly to Asian buyers but also sends cargoes to Europe. Qatar Energy plans to grow its LNG output by 40% with the north field expansion project, expected to come online by 2026.
February 16, 2022IEA’s Birol again urges OPEC+ to narrow gap between oil targets and output
OPEC+ oil producers have raised their output target by 400,000 barrels per day (bpd) each month since August as they unwind production curbs. However, they have repeatedly failed to hit those targets as some producers struggle to restore output. The IEA in its last monthly report said the gap between the target and output in January had widened to 900,000 bpd. The UAE Energy minister, Suhail al-Mazrouei, stated tensions between Russia and the West were driving oil prices rather than a fundamental shortage that would warrant accelerated output increases.
February 16, 2022Kurdish PM, Qatari energy minister discuss Kurdistan’s “huge gas potential”
The Prime Minister of Iraq’s Kurdistan region Masrour Barzani said on Wednesday that he explored Kurdistan’s “huge gas potential” in a meeting with Qatar’s Minister of State for Energy Affairs Saad al-Kaabi. Delegations from both governments also discussed energy investment, renewables, and regional energy cooperation, Barzani said on Twitter.
February 16, 2022U.S. crude stockpiles rise despite Cushing draw, record fuel demand – EIA
Fuel stocks fell and demand surpassed the previous week’s record, with total product supplied over four weeks averaging 22.1 million barrels per day, according to the EIA. The U.S. economy has recovered rapidly from the coronavirus-induced recession, boosting demand for fuels.
February 16, 2022South Korea, Iran discuss resuming oil trade, unfreezing funds
South Korea and Iran have held working-level talks on resuming imports of Iranian crude oil and unfreezing Iranian funds held in the East Asian nation, South Korea’s foreign ministry said on Wednesday. South Korea was previously one of Iran’s leading Asian oil customers. Iran and South Korea are also discussing the trading of crude oil and oil products, on the condition sanctions are lifted as progress is made in nuclear negotiations, the statement said.
February 14, 2022Iraq’s $27 bln TotalEnergies deal stuck over contract wrangling
A $27 billion deal between France’s TotalEnergies and Iraq that Baghdad hoped would reverse the exit of oil majors from the country has stalled amid disputes over terms and risks being scrapped by the country’s new government. Iraq has a history of international companies complaining with poor revenue on investments in the country. TotalEnergies agreed last year to invest in four oil, gas and renewables projects in the southern Basra region over 25 years. The deal, signed by Iraq’s oil ministry in September 2021, followed a visit from French President Emmanuel Macron. The terms, which have not been made public or previously reported, have raised concerns from Iraqi politicians, and according to sources close to the deal are unprecedented for Iraq. A group of Shi’ite lawmakers wrote to the oil ministry in January demanding details of the deal and asking why it was signed without competition and transparency, according to a copy of the letter seen by Reuters.
February 14, 2022UAE energy minister says infrastructure well-protected against attacks
UAE energy minister Suhail al-Mazrouei said on Monday that infrastructure in the UAE was well-protected against attacks and that the country had diversified its electricity infrastructure and has spare capacity. In recent weeks, the Iran-aligned Houthis have waged an unprecedented string of largely failed missile strikes on UAE targets that have triggered Emirati and U.S. air defenses and seen American troops briefly taking shelter.
February 12, 2022Saudi Arabia transfers Aramco shares worth $80 bln to state fund
Saudi Arabia’s Crown Prince Mohammed bin Salman has transferred 4% of Saudi Aramco shares worth $80 billion to the kingdom’s sovereign wealth fund, the government said on Sunday. The shares will bolster the Public Investment Fund’s (PIF) strong financial position and high credit ratings in the medium term, the crown prince said in a statement. The fund is the prince’s vehicle of choice to transform the Saudi economy and diversify away from oil revenues.
February 11, 2022Biggest Energy Firms in UAE Boost Spending on Surging Demand
The largest listed energy companies in the United Arab Emirates are ramping up spending to meet soaring demand for everything from fuels to electricity. ADNOC Drilling Co. boosted capital expenditure by 34% last year to $505 million, the unit of Abu Dhabi’s government-owned oil giant said in an earnings statement on Friday.To boost renewable energy production in the region, Taqa is developing solar power plants and announced plans to buy into Abu Dhabi’s largest renewable energy company. Surging oil and natural gas prices also helped the company bolster profit from its own fields, mainly in the U.K. North Sea. Taqa and ADNOC, which is also buying into the emirate’s clean energy producer, plan to invest globally to more than double the amount of green energy they produce. They are targeting 50 gigawatts of green power capacity by the end of this decade.
February 10, 2022Biden, Saudi King Discussed OPEC+, Oil Stability and Yemen
U.S. President Joe Biden and King Salman of Saudi Arabia discussed energy supplies in the face of soaring fuel prices and developments in the Middle East, including Iran and Yemen, in a telephone call on Wednesday. The two leaders committed to ensuring the stability of global energy supplies, the White House said in a statement. Last week, OPEC+ agreed to stick to moderate rises in its oil output, with the group struggling to meet existing targets and wary of responding to calls on its strained capacity for more crude from top consumers to cap surging prices. High oil prices are a risk to the Biden administration ahead of November’s congressional elections in which his fellow Democrats will defend slim majorities in the Senate and U.S. House of Representatives. A U.S. source familiar with the call said, “Saudi Arabia has historically played a vital role in ensuring global energy markets are well supplied to support strong and resilient economies. Oil has also been supported by the tension in Ukraine as Russia has put more than 100,000 troops on its borders.
February 10, 2022Iraq may import Qatari gas in 15 months if talks, infrastructure finalized
Importing the gas includes building the infrastructure and this will take at least a year to 15 months, depending on the agreement. This needs to happen because Iraq cannot continue to “rely on one source for gas.” Iraq imports Iranian gas and electricity to plug power shortages, but supply from its neighbor has been intermittent due to technical and financial problems. Iran cut or reduced gas and electricity supply to Iraq last year and in recent months, prompting Iraq to look for alternatives such as Qatari gas. Iraq didn’t receive any gigawatts last summer and current gas supply is 8 MMcf/d. One issue is the lack of penalties in the contract in case of non-supply, Karim added. The electricity ministry has also signed agreements to import power from Saudi Arabia, Jordan, Turkey and the grid of the six-member Gulf Cooperation Council via Kuwait. GCC countries include Saudi Arabia, Kuwait, Bahrain, Qatar, Oman and the UAE
February 9, 2022UAE Expands Strategic Oil Hub To Counter Iranian Threat
The announcement, that deliveries have now begun on the Fujairah Terminal expansion by Abu Dhabi (AD) Ports Group, positioned UAE’s Fujairah as an alternative global crude oil storage facility and transit hub to the perennially troublesome Strait of Hormuz. This push from Fujairah comes after the finalization in July 2021 of Iran’s own game-changing crude oil storage, transport and delivery mechanism, the Jask Oil Terminal and the 42-inch Guriyeh-Jask pipeline. The Guriyeh-Jask pipeline allows Tehran the option of disrupting all other oil supplies that travel through the Strait of Hormuz – around 35 percent of the world’s total.Part of the positive backdrop for the continued expansion of the Fujairah hub was always expected to be the trade flows coming out of the Dubai Multi-Commodities Centre, with more storage capacity allowing traders greater flexibility in their deals, and a very supportive financial infrastructure created by the Fujairah authorities. This proved to be the case and Fujairah further stands to benefit from the ongoing rise in volumes traded over the recently established Abu Dhabi-based ICE Futures Abu Dhabi (IFAD), with its focus on the trading of futures contracts for the light, sweet Murban crude oil that constituted around half of the UAE’s total near-4 million bpd crude oil production before the outbreak of the COVID-19 pandemic in 2020
February 8, 2022India’s top refiner raises Iraq oil supplies to offset Mexico cuts – sources
Indian Oil Corp (IOC), the country’s top refiner, will increase crude purchases from Iraq by 11.5% in 2022 to 390,000 barrels per day (bpd), partly to make up for a shortfall from Mexico and a possible supply cut from Kuwait, two sources familiar with the matter said. IOC has resorted to buying higher volumes from Iraq as Mexico is curbing supplies as it opens a new refinery, sources said. Iraq is the top supplier of oil to India and its market share there is set to rise as another refiner Hindustan Petroleum Corp will also buy more crude from the Middle Eastern nation.
February 8, 2022UAE’s ADNOC mulls sale of green bonds as it seek ESG funds
Abu Dhabi’s state oil producer is considering a sale of green bonds for the first time. ADNOC is speaking to banks about a possible green issuance, the people said. The company, which pumps almost all the crude in the UAE, may opt instead for sustainability-linked bonds, which provide more flexibility than green bonds because they’re not tied to specific projects, said the people. ADNOC is a crucial part of the UAE’s net-zero target. The company is planning to spend billions of dollars on technology to capture carbon and manufacture hydrogen, a fuel which emits only water vapour when burned. It’s also involved in the UAE’s strategy to ramp up solar power through renewable-energy firm Masdar.
February 8, 2022Middle East Crude Benchmarks jump to highest since November on Asia demand
Middle East crude benchmarks Oman and Dubai jumped to their highest since November on Tuesday as robust refining margins spurred demand in Asia. Complex refining margins in Asia are at their highest in more than three months, boosted by strong profits for gasoline, middle distillates and low-sulphur fuel oil. Brent’s premium to Dubai crude is also at its widest since November, making Atlantic Basin grades more expensive for Asian refiners. Iran said on Monday that Washington had to make a “political decision” regarding lifting sanctions on the Islamic Republic as Tehran’s demand for their full removal to revive a 2015 nuclear deal with world powers was non-negotiable.
February 7, 2022Oil drops near $90 mark after weeks-long rally
Oil dropped to trade near $90 a barrel, taking a breather from a rally that’s propelled crude to its highest since 2014. Futures in New York fell as much as 1.7 per cent on Monday after seven weekly gains in which oil’s gained 22 per cent. Diplomats are set to return to Vienna on Tuesday to resume Iran nuclear negotiations, which are viewed as a path to restore the nation’s sanctioned oil to global markets. On Friday, the US signed several waivers related to Iran’s civilian nuclear activities to ease diplomatic efforts. The potential for eventual Iranian barrels as well as crude being overbought from last week’s rally is prompting the market to take a “pause to refresh”
February 6, 2022Saudi Arabia’s Aramco raises oil prices as crude surges
Aramco’s decision came days after OPEC+ opted to increase its daily crude production by 400,000 barrels a day next month. Many energy analysts doubt the group, led by Saudi Arabia and Russia, will add that much to the market because of the supply problems among some of its members. State firm Saudi Aramco increased all grades for its main market of Asia in March. The company raised its key Arab Light oil for the region by 60 cents from February to $2.80 per barrel above the benchmark it uses.
February 3, 2022ADNOC confirms new gas discovery offshore Abu Dhabi
This discovery marks the first from Abu Dhabi’s offshore exploration concessions. “The discovery of material natural gas resources in Offshore Block 2 underscores how ADNOC’s expanded approach to strategic partnerships is enabling us to accelerate the exploration and development of Abu Dhabi’s untapped hydrocarbon resources and create long-term value for the UAE,” said Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO.
February 2, 2022Qatar can’t secure Europe’s gas supply unilaterally, says minister
Can Qatar supply extra gas to Europe if Russian flows are disrupted? As one of the world’s largest producers of liquefied gas (LNG), the Gulf state has become an essential ally of the West. Expectations are that Doha will step in if there are disruptions to gas supplies to Europe from Russia in the event of an escalation of tension with Moscow. Qatar is also seen as a long-term solution to Europe’s reliance on Russian gas. A major complication in the short term is that most of Qatar’s gas is shipped to Asia and China where the Gulf state’s customers agree to fixed, long-term contracts.
February 2, 2022OPEC+ agrees on another gradual oil-output hike for March
OPEC and its allies agreed to make another modest output increase in March, sticking to their plan even as the failure of several members to deliver the scheduled monthly supply hikes stokes a rally in crude prices. After a brief meeting on Wednesday, the 23-nation coalition rubber-stamped the nominal revival of 400,000 barrels a day for March, according to a statement posted on its website. Widespread difficulties in restoring supplies increasingly place the burden on the group’s Gulf nations: Saudi Arabia, the United Arab Emirates, Iraq and Kuwait. That’s leaving traders anxious over the spare capacity available to cover any disruptions, whether deeper losses in Libya or another attack like last month’s drone strike in Abu Dhabi.
January 31, 2022Iranian oil tanker to discharge 2 mln barrels in Venezuela, a document reveals
An Iranian supertanker carrying about 2 million barrels of condensate this week began discharging at Venezuelan state-run oil company PDVSA’s main oil port. Last year, the two state companies that are under U.S. sanctions exchanged some 4.82 million barrels of condensate for 5.55 million barrels of heavy crude, mostly transported in Iran-flagged vessels. Condensate is an extremely light oil.
January 27, 2022Aramco CEO says energy transition “not going smoothly”
Although acknowledging the emergency to shift toward renewable energies, Saudi Aramco Chief Executive Amin Nasser said that investment in oil and gas was needed to run alongside new energy investments until the latter can realistically support rising consumption. Aramco aims to achieve net zero emissions from its operations by 2050 while also building hydrocarbon capacity and expanding its maximum sustained production capacity to 13 million barrels per day. Saudi Arabia’s ambitious goal of ‘net zero’ emissions of greenhouse gasses – mostly produced by burning fossil fuels – by 2060 had to go hand in hand with new energies as demand for conventional energy would likely prevail for, “quite some time”.
January 27, 2022Oil dips from seven-year high as Russia tensions offset Fed tightening
Oil prices eased after Brent crude hit a seven-year high above $90 a barrel, while the market balanced concerns about tight worldwide supply with expectations the U.S. Federal Reserve will soon tighten monetary policy. U.S. crude fell 20 cents to $87.15 a barrel in a volatile session with both contracts see-sawing between positive and negative territory, amid tensions between Russia and the West and threats to the United Arab Emirates from Yemen’s Houthi movement that had added to oil market jitters. The market is starting to turn its attention to a Feb. 2 meeting of OPEC+, likely to stick with a planned rise in its oil output target for March. It has raised its output target each month since August by 400,000 barrels per day (bpd) as it unwinds record production cuts made in 2020.
January 26, 2022Power grid link between Saudi Arabia, Iraq to produce 1 gigawatt of energy initially – state news
Following the memorandum reached by the both countries earlier this week, the power grid link between Saudi Arabia and Iraq is expected to produce one gigawatt of energy during the initial phase, the Saudi Energy Minister Prince Abdulaziz bin Salman al-Saud told Iraq’s state news agency INA
January 26, 2022Oman launches first Middle East electricity spot market
Oman has formally launched the first in the Middle East electricity spot market. Concerned about increasing the efficiency of power procurement, the spot market will enable licensed generators for the first time to offer their surplus capacity at the most competitive rate. Responding to household energy costs – sensitive in the country that saw protests over unemployment – and to protests that occured, Omani finance minister Sultan al-Habsi has been parallelly reviewing electricity and water prices. Oman’s government also decided to cap power tariffs for residential consumers throughout 2022 at December 2021 levels.
GIF Energy Tracker
OPEC+ to stick to production cut
Saudi Arabia’s energy minister Prince Abdulaziz bin Salman has said that the OPEC+ alliance will stick to the agreed production cuts until the end of the year.
Iran’s South pars gas company reports 42% increase in LPG production
Ahmad Bahoush, the managing director of South Pars Gas Company (SPGC), has announced that the production of liquefied petroleum gas (LPG) at the complex has increased by 42% during the 2023 Iranian calendar year, which ends on March 20th. The rise of LPG production at SPGC comes as Iran seeks to increase its non-oil exports to boost its economy, which has been struggling under the weight of international sanctions.
Oman Hydrogen signs $20 billion green hydrogen agreements
Oman Hydrogen has signed 6 agreements for green hydrogen production in Oman worth more than $20 billion. Oman aims to increase green hydrogen production from 32,500 to 3.75 million tonnes per year by 2040 and from 3.5 to 8.5 million tonnes per year by 2050. The country estimates that it will need a cumulative investment of $140 billion over this period to reach its production target by 2050.
OPEC predicts “modest” oil surplus amidst demand lull for Q2 2023
According to OPEC, global oil markets appear on track for a modest surplus next quarter amid a seasonal lull in demand. OPEC is pumping about 28.92 MMbpd, or about 300,000 barrels a day, more than it expects will be needed in the second quarter. The surplus could be even larger if Russian oil production continues to prove resilient to international sanctions, since OPEC’s outlook assumes a sharp drop in the country’s output next quarter.
Saudi Aramco eyes additional 3 million bpd export capacity by 2030
Saudi Aramco has said it is aiming for 3 million barrels per day of additional oil export capacity by the end of this decade. This increase would be led by incremental oil and gas projects in the country and by replacing liquid fuels.
Saudi energy minister: Kingdom will not sell oil to any country that imposes a price cap
Saudi Energy Minister Prince Abdulaziz bin Salman has said that the Kingdom will not sell oil to any country that attempts to impose a price cap on its supplies. According to Prince Abdulaziz, placing a ceiling on oil prices would inevitably lead to market instability, and Saudi Arabia would reduce its oil production.
Oman awards 500MW Manah Solar II IPP to Sembcorp Utilities-Jinko Power JV
Singapore-based energy company Sembcorp Industries has announced that it has received an award from Oman Power and Water Procurement Company (OPWP) to build, own and operate the Manah Solar II Independent Power Project in Manah, Oman. The 500 MW solar power plant is expected to be operational by 2025 and will be backed by a 20-year power purchase agreement with OPWP.
UAE’s ADNOC Gas shares surge 19% in $2.5bn IPO
Shares in the United Arab Emirates’ ADNOC Gas rose 19% on their first day of trading in a $2.5 billion initial public offering. At more than 50 times oversubscribed, it was the biggest demand ever seen for an initial public offering in the Middle East and North Africa.
Iran reports highest oil exports yet since US applied sanctions over nuclear deal
Iran has said that its oil exports had risen over the past year, reaching their highest level since the US imposed fresh sanctions in 2018. Oil Minister Javad Owji has stated that 83 million more barrels of oil were sold since the start of the Iranian year on March 21, 2022, than in the same period over 2021-2022.
Saudi Aramco makes a historic $161B profit in 2022
Saudi Aramco reported earning $161 billion last year, claiming the highest-ever recorded annual profit by a publicly listed company. Profits rose 46.5% thanks to the rising energy prices after sanctions were placed on Russia for invading Ukraine.
Oman: Oil production increases by 3.6% in 2023
Oil production in the Sultanate of Oman increased by 3.6%. Crude oil production reached 25,978,600 barrels and condensate oil production reached about 7,45,200 barrels with the average price of oil in 2022 being $94/bbl.
Saudi Arabia And China Sign Clean Hydrogen Energy Agreement
The Saudi Ministry of Energy and the National Energy Administration of China have signed an agreement regarding clean hydrogen energy. The signing occurred after the Shura Council, one of the two main branches of Qatar’s legislative body, approved the draft agreement.
Saudi Aramco signs $6bn deal with Korea Eximbank
Korea Eximbank, also known as the Export-Import Bank of Korea, has signed a framework deal with Saudi Aramco. Korea Eximbank can lend as much as $6bn, with $1bn is set aside for the hydrogen and renewable energy deals, to Aramco, which in turn pays South Korean companies involved in projects whose orders were placed by the state-owned oil major.
Abu Dhabi’s EWEC aims to boost solar power generation capacity by 600%
Emirates Water and Electricity Company is targeting 7.3 GW, a 606% rise, in its solar power generation capacity by 2030 as the UAE pursues its target of achieving net zero by 2050. This requires an additional 3 gigawatts of solar power capacity by 2029 on top of the 1.5 gigawatts procured from the Al Ajban Solar PV Project once it becomes operational in 2026. The Emirates plans to invest $160 billion in clean and renewable energy sources over the next three decades.
Siemens Energy signs contracts for power plant maintenance in Iraq
Siemens Energy has signed contracts with Iraq’s Ministry of Electricity to maintain three power plants of around 1 GW for five years as well as train local employees in the field. Siemens Energy had already signed a memorandum of understanding for the expansion of electricity infrastructure with Iraq’s Minister of Electricity, Siad Ali Fadhil, in Berlin. Several projects, which together are expected to run into the billions, are intended to reduce the Iraq’s frequent power outages and cut CO2 emissions.
Oman’s OQ drilling unit raises $244m in IPO
Abraj Energy Services of OQ raised about 94 million Omani rials ($244 million) from its initial public offering. The IPO, the country’s biggest since 2010, sold more than 377 million shares and was “heavily oversubscribed,” generating more than 790 million Omani rials ($2 billion) in bids.
Adnoc Drilling recommends dividend of $341m for second half of 2022
Adnoc Drilling has recommended a dividend of $341.25 million for the second half of 2022. This represents a 5% annual increase and comes after the company posted a sharp rise in net profit for the year.
Iran says it’s discovered what could be the world’s second-largest lithium deposit
Iran says it has discovered a massive deposit of lithium in one of its western provinces. The ministry believes the deposit holds 8.5 million tons of lithium, which, if true, would make the deposit the second-largest known lithium reserve in the world after Chile. After several years of international sanctions, Iran’s economy would greatly benefit from the export of this valuable resource.
Oman set to award over $700 million contracts for solar energy projects
Oman Power and Water Procurement Company is awarding solar energy projects worth $777 million to international investors after securing approvals from the Authority for Public Services Regulation. The Manah 1 and 2 projects, which will jointly produce a total of 1,000MW, is set to come up on a 15 million sq m area within the Governorate of A’Dakhiliyah. About 2 million solar panels will be installed in these two stations, which will be the largest solar panel project for Oman.
Houston summit brings OPEC officials and heads of US oil companies together to discuss energy issues
Executives from major U.S. oil companies and top OPEC officials held private meetings on the sidelines of a Houston conference to discuss energy issues, continuing a tradition that began nearly five years ago when the two sides were at odds. Both parties are enjoying strong global demand for oil and gas and have posted record profits over the past year.
Russian crude oil heads to UAE as sanctions divert flows
The United Arab Emirates has been taking more cargoes of Russian crude oil, an example of how Western sanctions on Russia have adjusted traditional energy trade flows. Russia has been selling both crude and refined products at discounted prices after international sanctions over its invasion of Ukraine. The development also highlights growing cooperation between Russia and top Gulf oil producers, such as Saudi Arabia and the UAE.
Japan’s JBIC to provide $103mln green loan for Saudi-Egypt interconnection project
The Japan Bank for International Cooperation will provide a “green” loan of $103 million to the Saudi Electricity Company for an electricity interconnection project that will link Saudi Arabia and Egypt. The interconnection project comprises a 3,000 MW high-voltage direct current system with 1,350 km of overhead power lines and 22 km of submarine cables to connect northwestern Saudi Arabia and Egypt.
ADNOC Raises $2.5 Billion in Gas IPO
Abu Dhabi National Oil Co (ADNOC) has netted $2.5 billion from the initial public offering of its subsidiary ADNOC Gas. This biggest-ever issue in Abu Dhabi was oversubscribed more than 50 times as investors placed offers worth $124 billion for a 5% stake in the United Arab Emirates-based firm.
QatarEnergy strikes oil again in Namibia
QatarEnergy announced a light oil discovery in the Jonker-1X deep-water exploration well, which marks the company’s third recent discovery offshore Namibia. QatarEnergy announced two similar discoveries in February 2022 in the Graff-1 well and in the Venus-1X prospect, both located in the Orange Basin offshore Namibia.
Saudi Arabia’s ACWA Power to build two solar plants in Uzbekistan
According to Uzbekistan’s Energy Ministry, Saudi Arabia’s ACWA Power will build two solar plants in Uzbekistan with a total capacity of 1.4 gigawatts and three power storage systems with a combined capacity of 1.2 gigawatts. The two parties have signed investment agreements on the project worth $2.5 billion and deals under which Uzbekistan will buy power from the facilities. Uzbekistan plans to produce more than a third of its energy from renewable sources by 2030.
Eni agrees on energy deal with UAE’s ADNOC as Italy rebuilds relationship
Italian oil and gas group Eni has said it will cooperate with Abu Dhabi National Oil Co (ADNOC) on energy transition projects. State-controlled Eni said that together with ADNOC it will explore opportunities in renewable energy, blue and green hydrogen and carbon dioxide capture and storage. They will also work on reducing greenhouse gas and methane gas emissions, as well as routine gas flaring. The two countries are working to rebuild ties after tensions from 2021.
Iran Says Questions About Suspected Highly Enriched Uranium Are Resolved
The head of Iran’s Atomic Energy Organization, Mohammad Eslami, has claimed that “ambiguities have been resolved” over the presence of the particles at its Fordow enrichment plant. However, the International Atomic Energy Agency’s director has also stated that more work needs to be done. The International Atomic Energy Agency reported a week before that inspectors detected uranium particles enriched to 84% purity, near weapons-grade level, in Iran.
Adnoc Gas Draws $124 Billion of Orders for $2.5 Billion IPO
Abu Dhabi’s Adnoc Gas raised $2.5 billion from its initial public offering. Investors placed $124 billion of orders for a 5% stake in Adnoc Gas, an oversubscription level of more than 50 times.
TotalEnergies expands its upstream portfolio in UAE with several offshore fields
TotalEnergies has inked a deal with CEPSA to acquire its upstream assets in the United Arab Emirates, which will enable the major oil company to add multiple offshore fields to its asset portfolio. The company will acquire a 20% participating interest in the Satah Al Razboot, Umm Lulu, Bin Nasher, and Al Bateel offshore concession.
SABIC announces strategic project to manufacture catalysts
SABIC announced a strategic project to manufacture catalysts with the aim of transforming Saudi Arabia into a manufacturing hub for specialized materials. The project will contribute to industrial advancements as envisioned in Saudi Vision 2030, including improving competitiveness of the energy sector, developing industries associated with oil and gas, and raising the level of local content in the area.
$8.5 Billion Financing Agreement for Green Hydrogen Project in Saudi’s Neom
Acwa Power has closed a financing agreement worth $8.5 billion for a sizable green hydrogen project that will be built at Saudi Arabia’s futuristic city Neom. The project’s funding will come from a combination of long-term debt and equity.
ACWA Power signs MoU with Pupuk Indonesia for large-scale green hydrogen project
ACWA Power and Indonesia’s state-owned fertilizer producer Pupuk Indonesia have signed a Memorandum of Understanding to develop a large-scale green hydrogen project. Pupuk Indonesia PT is the largest fertilizer manufacturer in Southeast Asia with a total production capacity of 12.71 million tons per year.
Arab Crude Oil Reaches 94.4% Of Japan’s Imports In January
The total crude oil Japan imported in January amounted to 84.423 million barrels with 94.4% of that amount coming from the five GCC countries of Saudi Arabia, UAE, Kuwait, Qatar and Oman, according to data from the Agency for Natural Resources and Energy of the Japanese Ministry of Economy, Trade and Industry.
IAEA report pressing Iran on uranium enrichment to near bomb-grade
The International Atomic Energy Agency is in discussions with Iran on the origin of uranium particles enriched up to 83.7% purity, very close to weapons grade, at its Fordow enrichment plant. Iran has denied ever having sought nuclear weapons and states that it only wants to master nuclear technology for civil uses.
IPO final session highlights detailed offerings of Abraj Energy’s shares
As part of its IPO introductory sessions tour, Abraj Energy, a subsidiary of OQ, organized its last introductory meeting, in cooperation with the branch of the Oman Chamber of Commerce and Industry in Dhofar Governorate. Eng. Saif Al Hamhami, Chief Executive Officer of Abraj Energy Services said that by listing its shares for the public offering, the company aims to build a strategic partnership with local, regional, and international investors.
Madayn Signs Agreement With Solar Wadi For 100-MW Solar PV Plant In Suhar Industrial City, Oman
The Public Establishment for Industrial Estates (Madayn) signed an agreement with an Oman renewable energy company, Solar Wadi, for the allocation of land in Suhar Industrial City for the construction of a 100-MW solar PV plant. The total investment in Suhar Industrial City is RO 2.3 billion. There are more than 360 industrial projects on an area of 29 million square metres.
Saudi Arabia Moves Forward With Bids For Nuclear Plant
Saudi Arabia is progressing with its plans to build its first nuclear power plant and has received a number of bids. The Saudi Ministry of Finance’s 2023 budget statement published on February 15 notes that bids to build the plant were received last December. Saudi Arabia has been interested in nuclear energy for decades and recently, it has been considering developing nuclear energy for peaceful purposes. This is also in line with the kingdom’s strategy to diversify its energy mix and in doing so, reduce its dependence on oil.
Oman’s Abraj Energy Forms Strategic Partnership To Explore Oil In Kuwait
Oman’s oil and gas drilling services firm, Abraj Energy, is set to explore oil in Kuwait. It has signed an agreement with the Kuwaiti national oil company, Kuwait Gulf Oil Co., and the Saudi Arabian-based chemical plant, Saudi Chevron Co. Abraj Energy will explore ways to extract oil in Kuwait. The agreement aims to strengthen and expand Abraj Energy’s operations in the Middle East and North Africa region.
Baynouna Solar Energy Station Opens
The Baynouna Solar Park, the largest clean energy project in Jordan, was inaugurated in a ceremony. The 200-megawatt station was carried out by Baynouna Solar Energy Company, a joint venture between the UAE’s energy company, Masdar, and Finnish investment and asset management group Taaleri. This project is said to have strengthened the strategic relationship between the UAE and Jordan and support Jordan’s goal of receiving 50% of its electricity from renewable sources by 2030.
Iraq’s January Output Hits 10-Month Low
Iraq’s crude output fell by around 100,000 barrels per day in January to 4.29 million b/d, according to Energy Intelligence estimates, its lowest in 10 months and 140,000 b/d below its Opec production target, due to weather-related loading disruptions at Basrah and refinery turnarounds. The weather disruptions caused a build in Basrah crude stocks which forced the oil ministry to cut production.
Adnoc Gas $2 billion IPO covered in hours
Within hours after the initial public offering kicked off, Adnoc Gas’ initial public offering order book was fully covered. Abu Dhabi National Oil Co. sold a 4% stake in Adnoc Gas, offering 3 billion shares between Dh2.25 and Dh2.43. The company will be valued at $50.8 billion, making it one of the world’s largest listed gas firms.
Japanese corporation to explore role in Oman green ammonia project
Japanese heavy engineering manufacturer IHI Corporation and Indian green energy developer ACME Group have signed a Memorandum of Understanding. Backed by India, Japan could potentially be participating in a green ammonia project currently under development in Oman. The cooperation between Japan and Oman would build on a broader pledge by the two countries to cooperate across the green energy value chain.
Iraq Partners With UAE And Chinese Firms To Develop Six Oil And Gas Fields
Iraq has signed deals with two Chinese companies and UAE-based Crescent Petroleum for the development of six oil and gas fields. This is an effort by the country to cut gas imports by improving domestic production of oil and gas. Under the 20-year contract, Crescent will develop the Gilabat-Qumar and Khashim fields in Diyala. The fields are expected to initially produce 250 million standard cubic feet per day of natural gas. Crescent Petroleum exploration and production executive director Abdulla Al Qadi said, “Gas and oil supplies from these operations will help improve services and local economic development for the people of Iraq.” This comes in light of Iraq signing two other contracts with China’s Geo-Jade for the exploration and development rights to the Huwaiza oilfield in the south, and the Naft Khana, northeast of Baghdad.
Iran Ready To Build Oil Refineries For Turkmenistan: Deputy Minister
Iran’s Deputy Minister of Oil for Engineering, Research and Technology Vahidreza Zeydifard has said that Tehran is ready to build oil refineries in the Central Asian country. Over 70% of the equipment used to build the refineries is to come from Iran itself and will be exported to Turkmenistan. There have been positive dynamics in the growth of trade between the two countries. In June 2022, the Iranian and Turkmen presidents signed a series of nine Memorandums of Understanding ranging from finance to energy.
Saudi Arabia’s Oil Revenues Reach $326bn IIn 2022, Highest In 10 Years
According to local reports released on 21 February, Saudi Arabia achieved its highest oil revenues in 2022 in the past 10 years, amounting to $326 billion. However, even though it reached its highest revenue, Bloomberg reported that the kingdom’s monthly oil revenues decreased in the second half of the year. Saudi Arabia’s oil exports amount to 70% of its total exports that year.
TotalEnergies becomes QatarEnergy’s first partner on the North Field South LNG project
TotalEnergies, already involved in the North Field East liquefied natural gas (LNG) project, has been chosen as the first international partner for the North Field South LNG project. Under the new agreement with QatarEnergy, TotalEnergies will gain a 9.375% stake in the North Field South project. TotalEnergies has taken stake with what is claimed to be the world’s largest LNG project in terms of capacity.
UAE’s Crescent Petroleum signs agreements to develop Iraqi oil and gas fields
Sharjah energy company Crescent Petroleum has signed three 20-year agreements to develop oil and gas fields in Iraq, as the country seeks international collaboration to boost its energy supply. The company will produce gas in two oil and gas blocks in the northern Diyala province and explore a third block in Basra. These operations are expected to increase local economic development within Iraq.
Saudi energy minister says OPEC+ is flexible enough to change decisions whenever required
At a media forum in Riyadh, Saudi Arabia’s energy minister Prince Abdulaziz bin Salman stated that the OPEC+ alliance is flexible enough to change decisions whenever it is required.
Energy Giant Saudi Aramco Signs Agreement With droppGroup to Build Web3 Tech
Saudi Arabian Oil Group (Saudi Aramco) has signed a memorandum of understanding with droppGroup to explore co-developing a range of Web3 technologies. The Web3, the third generation of the internet driven by blockchain technology, applications will be aimed at helping Aramco’s employees, including potential on-boarding, training ecosystems, as well as a tokenized network and rewards program.
Omani oil and gas sector to witness growth over next 5 years
According to a report, Oman’s oil and gas sector will witness growth with a compound annual growth rate of more than 5 percent during the period from 2023 to 2028. Factors such as supportive government policies and efforts to develop the sector along with future projects are expected to drive the growth of the market.
Executive Director of IEA warns of energy supply shortage next winter
Executive Director of the International Energy Agency (IEA) Fatih Birol has warned of possible energy shortages next winter. Birol has said an additional 23 billion cubic metres of LNG is expected this year and that China would likely swallow 80 percent of the extra gas. He has also stated that European households and firms need to continue efforts to reduce gas usage, renewable energy outputs need to expand faster, and countries should reconsider their plans to phase out nuclear energy.
US and Canada ready to work with Iraq to tackle gas flare
According to the US and Canada ambassadors, the two countries are willing to help Iraq by investing in gas capture technology in order to boost power production and reduce the adverse health implications of the emissions. Iraq is the second-highest emitter of gas flares in the world, flaring around 16 billion cubic meters of gas on a daily basis. If captured, the gas could potentially power around 3 million homes.
Iraqi Premier and European Commission address European investments in Iraq
Iraqi Prime Minister, Muhammed Shia Al-Sudani, met with European Commission President, Ursula von der Leyen, on the sidelines of the 59th Munich Security Conference. The President of the European Commission expressed the EU’s cooperation and determination to forge productive partnerships in energy, particularly in the renewable energy sector.
ExxonMobil Sells Iraq Stake To Pertamina
American giant ExxonMobil has confirmed that “ExxonMobil Iraq Limited reached an agreement with Pertamina to sell 10% of EMIL’s interest in West Qurna I.” Exxon has been seeking to quit the field and Iraq entirely since January 2021, but Baghdad blocked its planned sale to Chinese firms, prompting Exxon to file for arbitration.
Iraqi Ministry of Electricity and GE sign Principles of Cooperation
GE has signed Principles of Cooperation in Energy with the Ministry of Electricity, Republic of Iraq. The initiative aims to explore opportunities to increase Iraq’s output through a variety of different methods, such as establishing new power plants, expanding capacity at existing facilities, and driving the decarbonization of the country’s energy sector. The overall goal is to help “address the current electricity shortfall across Iraq and meet the growing power needs of the people to accelerate the nation’s sustainable economic development.”
Saudi Energy Minister says OPEC+ deal will continue until end of year
Saudi Energy Minister Prince Abdulaziz bin Salman has stated that the current OPEC+ deal on oil output would be locked in until the end of the year, adding that he has remained cautious about Chinese demand forecasts. OPEC+ agreed in October 2022 to cut oil production targets by 2 million barrels per day until the end of 2023.
Kuwait invites bids to power oil and gas facilities with renewable energy
According to a report, the Kuwait National Petroleum Co and the Kuwait Integrated Petroleum Industries Co have invited consultancy bids from five Western firms to study the use of renewable energy. The two companies want to follow a trend by most operators in the oil sector to switch to clean fuel, mainly solar and wind energy.
RWE receives first LNG cargo at Brunsbuettel port
Utility RWE’s RWEG.DE trading arm received the first cargo of liquefied natural gas under a deal with Abu Dhabi National Oil Company as part of German efforts to ensure supply after cuts to Russian gas exports. ADNOC and RWE agreed to a deal last year for several years of LNG supplies to Germany starting from 2023.
Vale acquires Oman’s OQ 30% stake in Vale Oman
Brazilian mining company Vale has bought back a 30% stake in Vale Oman from Oman’s state energy company OQ. Vale Oman has become a 100% foreign company after the acquisition.
China’s CNPC set to seal Qatari LNG deal
China National Petroleum Corp is close to finalizing a deal to buy liquefied natural gas from QatarEnergy’s North Field expansion project for over 30 years. If sealed, this would be the second such deal between major LNG exporter Qatar and China, the world’s second-highest LNG buyer, as Beijing looks to beef up gas supply and diversify its sources in a drive to replace coal and cut carbon emissions.
OPEC Secretary General shares expectation that oil demand to reach pre-pandemic levels this year
OPEC Secretary General Haitham Al Ghais has stated that the group expects oil demand to exceed pre-pandemic levels this year, reaching almost 102 million barrels a day. He also stated that demand is projected to further rise to 110 million barrels per day by 2025.
Abu Dhabi’s ADNOC Drilling net profit rises 33% in 2022
Abu Dhabi’s ADNOC Drilling reported a rise of 33% in 2022 net profit, with revenue boosted by its onshore and oilfield services businesses. The company said its results were largely driven by new rigs entering its operational fleet, now consisting of 115 rigs. The company also presented strong guidance for 2023, with revenue projected at between $3 billion and $3.2 billion, representing year-on-year growth of up to 20%, and is expecting record net profit in 2023 of $850 million to $1 billion in the same period.
Oman Oil-Drilling IPO Draws PIF as Anchor Investor
Oman’s OQ SAOC plans to raise as much as $244 million from the initial public offering of its oil-drilling unit and has brought in Saudi Arabia’s wealth fund as an anchor investor. Three subsidiaries of state-owned energy firm OQ are selling 49% of Abraj Energy Services SAOC — or just over 377 million shares. Oman is joining the Gulf’s listing boom, which has mainly been confined to Saudi Arabia and the United Arab Emirates.
Germany in advanced talks with Oman for natural gas supplies
Germany has been in talks with Oman to sign a long-term agreement that would last at least 10 years. Two sources with direct knowledge of the matter said the deal with Oman would be for between 0.5-1 million tonnes per annum (mtpa), with one specifying around 0.8 mtpa over 10 years. This comes in light of Berlin searching for an alternative to Russian fuel supplies. As a result of the war in Ukraine, Europe has been trying to replace all Russian energy imports by mid-2024.
Adnoc Natural Gas, LNG IPO Seen as ‘Highly Feasible’ Amid Broader Expansion Plans
Abu Dhabi National Oil Co. (Adnoc) is advancing plans to launch an initial public offering (IPO) that would combine the United Arab Emirates’ (UAE) largest natural gas companies as part of a broader plan aimed at attracting more foreign investors and funding for long-term projects. The new company would bring Adnoc’s liquefied natural gas and gas processing units together to form Adnoc Gas. The newly formed company would have a production capacity of 10 Bcf/d across eight onshore and offshore sites and a pipeline network of more than 2,020 miles, making it one of the largest gas processing and marketing companies in the Middle East.
Dana Gas reports 53% rise in adjusted net profit for 2022
Middle East’s private natural gas company, Dana Gas, reported an adjusted net profit of Dhs718m ($196m) for the full year of 2022, on the back of high energy prices, and the group’s adjusted net profit last year grew 53% from Dhs469m ($128m) earned in 2021. The CEO stated that the results are a testament to Dana Gas’ ability to control costs and maintain production levels amid a prolonged environment of high energy prices.
Iraq awards 6 oil concessions to UAE and Chinese firms
As part of the fifth licensing round for Iraq, Sharjah-based Crescent Petroleum, the Middle East’s largest private upstream oil and gas company, was awarded three concessions covering the production and development of oil and gas fields, and three concessions were awarded to the Chinese Geo-Jade Petroleum Company. Three of the fields are located in Basra in South Iraq, while the other three are in the Northeastern Diyala Governorate.
Saudi Wealth Fund Raises $5.5 Billion From Green Bond Sale
Saudi Arabia’s sovereign wealth fund raised $5.5 billion from a three-part green bond sale, the second debt offering by the Public Investment Fund within four months. The PIF secured more than $32 billion of orders for the bonds that have maturities of 7, 12 and 30 years. The PIF plans to use the proceeds for general corporate purposes and to finance, refinance and invest in green projects.
SABIC plans $1.3bn investments in second stage of energy transition
Saudi Basic Industries Corp. is set to invest $1.3 billion in the second phase of its energy transition. Speaking during a panel discussion at the 44th International Association of Energy Economics Conference, a SABIC official revealed that in the first phase of its transition worth $1 billion, the company recorded a 10 percent drop in carbon emissions.
Oman LNG inks 4-year deal to supply China’s Unipec with 1 mln tonnes of LNG a year
Oman LNG has agreed to supply China’s Unipec with around 1 million metric tonnes of liquefied natural gas per year for four years starting in 2025. This is the first contract that Oman LNG has signed with a Chinese firm, with the contract being a step that “promotes the company’s efforts to reach new markets.”
Turkey’s Ceyhan Oil terminal and Iraq KRG Pipeline halted after quake
A major earthquake that struck Turkey and Syria has halted operations at Turkey’s oil terminal in Ceyhan and flows via Iraq’s northern oil export pipeline from Kirkuk. Iraq’s Kurdistan Regional Government, which halted flows through the pipeline which runs from Iraq’s northern Kirkuk fields to Ceyhan, had been pumping 400,000 barrels per day (bpd) and Iraq’s federal government was pumping 75,000 bpd through the pipeline.
Iran Begins Exploitation of ‘Biggest’ Uranium Mine
Iran has started the exploitation phase in the central province of Yazd for what is believed to be the biggest uranium mine. After extraction, the uranium from this mine will apparently be sent to Isfahan for purification and for making nuclear fuel. According to Mohammed Eslami, head of the Atomic Energy Organisation of Iran (AEOI), “expanding nuclear power production and application of radiation are among the major goals pursued by the AEOI as part of the comprehensive strategic plan for the nuclear industry”.
Alfanar sign $1.5bn deal with Daewoo E&C during iktva 2023
During Saudi Aramco’s iktva 2023 Forum and Exhibition, Amer Al-Ajmi, executive vice president of Alfanar, and Sungmin Yang, senior vice president of Daewoo, signed a $1.5 billion agreement aimed towards joint cooperation in future projects for the oil, gas and petrochemicals sectors. Through this agreement, Alfanar will work on transferring and localizing expertise in the engineering construction field, and exchanging the expertise of advanced technologies used in design, procurement and project execution for the oil, gas and petrochemicals sectors.
GE, Samsung C&T, EDF in race for 7.2GW Saudi power projects
Saudi Power Procurement Company has announced that 21 major developer/developer consortiums, including global energy leader GE, French utility major EDF, Samsung and India’s energy conglomerate NTPC, have prequalified for the development of four combined-cycle electrical power generation projects with provision for Carbon Capture and Sequestration readiness. Each of the projects boast a capacity of 1,800 MW, and will be located in either Taiba or Qassim City within the Kingdom.
Total refinery products in Oman rises by 4%
According to the latest data issued by the National Centre for Statistics and Information, the total refinery products in the Sultanate of Oman increased by 4% until the end of December 2022 compared to the same period in 2021. While Oman’s production of diesel and benzene decreased, the production of petrol, standard grade petrol, and polypropylene increased.
Iran signs $900 milllion deal with local firm to develop Kish offshore gas field
Iran signed a $900 million contract with Iranian Offshore Engineering and Construction Co (IOEC) to develop the first phase of its Kish offshore gas field in the Gulf. Under the contract, IOEC will launch production of 28 million cubic meters per day of gas in 14 months, which will be sent to installations in Asalouyeh on Iran’s Gulf coast via a 210 km undersea pipeline.
Saudi energy minister warns sanctions could result in energy shortages
During an industry conference in Riyadh, Saudi Energy Minister Prince Abdulaziz bin Salman warned that sanctions and underinvestment in the energy sector could result in a shortage of energy supplies. This was stated during a time when the European Union has imposed a series of sanctions against Russia, reducing Russian energy exports, and other Western powers have also imposed measures as they seek to further limit Moscow’s ability to fund its war in Ukraine.
Aramco Sets Out Project Plans for the Next Three Years
Saudi Aramco expects to award contracts for some 90 projects over the next three years as it presses ahead with major expansions of its upstream oil and gas capacity. Aramco is apparently ramping up investment again after a slow period during the Covid-19 pandemic and the accompanying economic slowdown.
Saudi Arabia Plans Trillion Riyal worth of Clean Power Investments
Saudi Arabia plans to invest more than SR1 trillion ($270bn) into its power sector by 2030 in order to boost clean energy generation capacity and expand and modernize its transmission and distribution networks. The kingdom intends for the powergen mix to be split 50:50 between gas and renewables by 2030, entailing the development of 58.7GW of renewable capacity. This will displace more than 1mn b/d of oil from the power and water sector, freeing volumes up to be exported to global markets.
Basra Oil Company head expects Qatar to take 20-25% stake in TotalEnergies’ Iraq project
The head of Iraq’s Basra Oil Company (BOC) expects Qatar to acquire a 20-25% stake in TotalEnergies’ $27 billion cluster of energy projects in the country, with the Baghdad government aiming to hold around 40%. Although talks are still ongoing, the major investment from a Gulf State is considered to be a step towards countering Iranian influence within Iraq.
Gas to Reach Sea of Oman Coasts
The third largest gas project in the Sistan-Baluchestan Province of Oman will become operational soon with the completion of the 290 km Iranshahr-Chabahar-Konarak gas pipeline. The project will supply gas to the southern regions of the province and the coasts alongside the Sea of Oman. It is considered that this project, in addition to providing the energy needed by petrochemical units and power plants in the region, will help with the sustainable development in the southeast of Iran, and improve economic, industrial and tourism activities in the underprivileged province.
Saudi energy minister invites oil companies to move their headquarters to Dhahran
Saudi Arabia’s Energy Minister Prince Abdulaziz Bin Salman has called on the global oil companies to move their headquarters to Dhahran in the Eastern Province of Saudi Arabia and home to Saudi Aramco. Prince Abdulaziz made these remarks during his speech at the seventh edition Aramco’s iktva exhibition 2023.
OPEC+ seen sticking with oil output policy at February 1st meeting
An OPEC+ panel is likely to recommend keeping the oil producer group’s current output policy unchanged when it meets this week. OPEC+ agreed in October to cut its production target by 2 million barrels per day, about 2% of world demand, from November until the end of 2023.
Turkey and Oman sign deal to purchase 1.4B cubic meters of gas per year
The Turkish energy minister has announced that Turkey is signing a new gas deal with Oman, a move to diversify Ankara’s gas supplies. Turkey also entered similar deals with Bulgaria, North Macedonia, Romania and Moldova. Turkey is looking to become a gas trade center at a time when Europe suffers from gas supply problems.
Saudi Arabia will invest $266 billion in clean energy
According to Energy Minister Prince Abdulaziz bin Salman, Saudi Arabia will invest one trillion riyals to generate “cleaner energy” and add transport lines and distribution networks. The eventual goal is to export energy to the world and produce clean hydrogen. He also stated that Saudi Arabia is determined to become the leading exporter of hydrogen.
Saudi Crown Prince and Putin discuss OPEC+ cooperation for oil market stability
Saudi Arabia’s Crown Prince Mohammed bin Salman discussed in a phone call with Russian President Vladimir Putin cooperation within the OPEC+ group countries to maintain the stability of the oil market. The Crown Prince and Putin also discussed further development of bilateral cooperation in the political, trade, economic and energy fields. Although the current oil prices in the market are stable, there remains a factor of uncertainty when it comes to how supply will be impacted with the recent Western sanctions on Russia’s oil industry imposed over Moscow’s war on Ukraine, as well as the price caps introduced on Russian products in December.
Iranian gas supplies to Iraq stop
The Iraqi Minister of Electricity, Ziyad Ali Fadel, announced that Iraq’s imports of Iranian gas completely stopped due to maintenance works in the gas pipeline inside Iran. The current rate of electric power production in Iraq is only 15,000 megawatts out of 24,000 megawatts, due to Iran’s halt in gas supplies to Iraqi power plants. The Iraqi government is currently working to tackle the problem of gas imports from Iran, which are 40 million cubic meters per day, in cooperation with international companies to invest in Iraqi gas.
Iraq Militia states that Basrah-Aqaba oil pipeline ‘will never be’
Iraqi aspirations to move ahead with a long-planned crude pipeline from Basrah to Aqaba in Jordan have been dealt a major blow after Ali al-Asadi, head of Iraq’s Harakat Hezbollah al-Nujaba (HaN), said the project will “never” happen. Al-Asadi issued the statement after Iraqi lawmaker Mustafa Jabbar Sanad revealed that Jordanian officials had met with senior Iraqi Shia, Sunni, and Kurdish officials and agreed on the pipeline’s implementation.
Tanzania and UAE firm sign petroleum facility deal
The Tanzania government signed a Memorandum of Understanding with a United Arab Emirates firm for the construction of petroleum receiving and storage infrastructures. The deal was signed by the Ministry of Energy and representatives of the UAE-based Emirates National Oil Company Group. The decision aims at making Tanzania a petroleum hub in East and Central Africa as well as sustaining the country’s fuel demands for up to six months.
Aramco invests $14 million into drone business
Wa’ed Ventures, the venture capital arm of Aramco, has invested $14 million into Japanese drone provider Terra Drone Corporation. The financing involves the establishment of a new subsidiary in the Kingdom of Saudi Arabia, Terra Drone Arabia, to conduct drone survey, inspection and unmanned traffic management across various projects. This support is in line with the Saudi government’s “Vision 2030” reform plan, which seeks to stimulate economic transformation in the country by reducing its dependence on hydrocarbons.
Qatar’s energy giant joins Lebanon gas exploration group
Qatar’s state-owned oil and gas company will participate in oil and gas exploration of two offshore blocks off the coast of Lebanon, joining France’s TotalEnergies and Italy’s Eni. Lebanon told TotalEnergies and Eni to start gas exploration after an agreement with Israel regarding the maritime territory. QatarEnergy’s participation in the consortium also demonstrates Qatar’s continued interest in helping Lebanon to secure its own gas supply and alleviate Lebanon’s current economic crisis.
Qatar in talks to join TotalEnergies’ $27 billion Iraqi energy project
Qatar is in talks to acquire a stake from French company TotalEnergies’ $27 billion cluster of energy projects in Iraq as Baghdad hopes to stem efforts by Western energy companies to exit the country. QatarEnergy is looking to acquire a stake of around 30% in the project. A major investment by a Gulf state would mark an important win for Iraqi Prime Minister Mohammed al-Sudani, who took office last October following more than a year of political turmoil, and would also be considered a step towards countering Iranian influence.
Oman allocates 250 km2 for solar and wind farms in Duqm SEZ
Duqm is expected to become the biggest contributor to Oman’s sustainability goals, allocating 250sq km for solar and wind farms that will then produce green hydrogen and green ammonia for local use and for export. Two licenses have already been granted; one of which is at the stage of implementing a 300 MW plant while the other is at the stage of detailed studies for a much larger capacity.
Oman’s OQ will inaugurate Bisat oil field on January 26
The Bisat oil field in Oman’s Block 60 concession area – which is operated by the sultanate’s global integrated energy company OQ – will be inaugurated. The Bisat oil field, located at Abu Tubul, is one of the most important projects of OQ Group in the upstream sector.
Iran raised to 4th place among top OPEC producers in December by the IEA
The International Energy Agency (IEA) in its latest “Oil Market Report” put Iran’s oil production in December at 2.72 million barrels per day, indicating that the country has risen to the fourth place among OPEC’s top oil producers. Iran’s oil exports have reached new highs in the last two months of 2022 and are making a strong start to 2023 despite U.S. sanctions. Iran has been ramping up its oil production and exports over the past year as the country has been implementing new strategies to overcome U.S. sanctions.
UAE plans to reach 14GW of renewable energy by 2030
The UAE plans to reach 14 gigawatts (GW) of clean energy by 2030, while continuing to supply oil and gas. Climate Minister Mariam Almheiri also claims that by 2050, 50% of the UAE’s energy supply will come from clean and renewable energy sources.
TotalEnergies starts production from Oman onshore gas field
French firm TotalEnergies and its partners have started gas production from the Mabrouk North-East field in onshore Block 10 in Oman. TotalEnergies also signed a long-term LNG purchase contract with Oman LNG, whereby the French firm will purchase 0.8 million metric tonnes of LNG per year. TotalEnergies has said that the contract, which has a term of ten years starting from 2025, would contribute to its LNG integrated portfolio and help in addressing the European and Asian markets.
Oman energy firm OQ to sell 49% stake in oil-drilling unit IPO
Oman energy firm, OQ SAOC, plans to sell up to 49% of its oil drilling unit, Abraj Energy Services SAOC, in an initial public offering, kick-starting the sultanate’s push to join a listings boom sweeping through the Middle East. The Oman Investment Authority has said that it plans to raise more than $1.3 billion by exiting its investments in eight sectors this year. Oman is joining its energy-rich Gulf neighbors in selling assets to fund the diversification of their economies and open up their stock markets to more international investors.
Iran Oil Exports To China Surge
The Persian Gulf country’s oil exports climbed to about 1.3 million barrels a day in November, and last month held near the highest in four years. Much of it appears to be going to China, and the surge is offering solace to both Tehran and a global market fretting over the prospect of sanctions squeezing Russian supply.
Qatar Development Bank launches ‘green financing’ for environment-friendly projects
Qatar Development Bank launched the Clean Energy and Eco-Friendly Financing programme, also known as Green Financing for Qatar-based Small and Medium Enterprises. The Green Financing programme will finance 85% of the cost for businesses adding technological solutions or environment-friendly operations and 80% of the cost for companies producing green products with a positive and sustainable environmental impact. The program is considered to be part of the bank’s strategy to support environmentally friendly projects in line with the country’s national vision for building a sustainable knowledge-based economy.
ACWA Power plans to develop Uzkebistan’s first hydrogen project
ACWA Power has signed extensive heads of terms agreements to develop a green hydrogen facility and a green ammonia pilot project in the Republic of Uzbekistan with the country’s Ministry of Energy and Uzkimyosanoat, a state-owned chemical company. Aside from these green hydrogen and green ammonia projects, ACWA Power also has five existing projects in Uzbekistan, and Uzbekistan is the second largest in terms of value for the company after its home market of Saudi Arabia.
Saudi Arabia will continue talks with Russia to stabilize oil prices
According to the kingdom’s foreign minister, Saudi Arabia is set to continue talks with Russia over determining avenues to stabilize prices for crude oil. Due to western sanctions placed on Russia over its military operation in Ukraine, Liquified Natural Gas prices have vastly increased as the EU has deviated from Moscow as a primary oil supplier in search of new ones.
IEA chief expects tighter energy markets in 2023
International Energy Agency (IEA) head Fatih Birol states that energy markets could be tighter in 2023, adding that he hopes prices would not rise further in order to ease the pressure on energy-importing developing countries. Birol elaborates that even though currently there was no tightness in the market, there were uncertainties to watch out for, namely Chinese demand and Russian supply. Two Gulf OPEC+ producers, UAE energy minister Suhail al-Mazrouei and Saudi Aramco chief Amin Nasser have said that they see oil markets as balanced.
Saudi Aramco increases access to North America’s largest oil refinery as it launches new US subsidiary
Saudi Aramco’s global trading arm has bought US firm Motiva Trading and has also launched a Texas-based subsidiary – Aramco Trading Americas. The new entity will be the sole supplier and ‘offtaker’ of Motiva Enterprises, the owner of North America’s largest oil refinery with a crude capacity of 630,000 barrels a day of consumer and commercial grade fuels and base oils.
Germany Holds Talks with Iraq for Potential Gas Imports to Help Wean Off Russian Energy
According to German Chancellor Olaf Scholz, Germany is engaging in bilateral talks with Iraq over potential gas imports to help Berlin diversify its energy sources. The latest meeting between the German chancellor and the Iraqi government is among the recent bilateral talks between Berlin and other countries, including the US, UAE, and Qatar, to secure alternative gas supplies following Moscow’s invasion of Ukraine.
Oman LNG signs deals with TotalEnergies and Thailand’s PTT
Oman LNG has agreed to supply up to 1.6 million metric tonnes of liquefied natural gas to France’s TotalEnergies and Thai state-owned firm PTT Pcl. TotalEnergies and PTT will each receive 800,000 tonnes of LNG per year, with the French firm commencing a 10-year deal in 2025 and the Thai company taking supply for nine years beginning in 2026.
Masdar partners with SOCAR to develop 4 GW renewable energy projects
Masdar has signed joint development agreements with the State Oil Company of the Republic of Azerbaijan (SOCAR) for onshore wind and solar projects, and integrated offshore wind and green hydrogen projects, with a total combined capacity of 4 GW. The agreements were signed on the sidelines of Abu Dhabi Sustainability Week, the global platform for accelerating sustainable development hosted by Masdar. Azerbaijan is pursuing a national target of producing 30% of its domestic power needs from renewable energy sources by 2030, as the nation looks to diversify its economy and reduce greenhouse gas emissions.
Zambia to develop solar projects worth $2 billion with UAE as country faces rolling blackouts
Zambia’s state-owned power company Zesco signed an agreement with the United Arab Emirates’ renewable energy company Masdar to develop solar projects worth $2 billion. Once completed, the projects will result in an additional 2,000 megawatts of electricity in the country within the next few years. The project will increase the country’s generation base by more than half.
India eyes UAE’s cooperation in developing green hydrogen industry
India’s Power, New & Renewable Energy Minister R.K. Singh visited the UAE and signed a memorandum on green hydrogen development and investment with his Emirati counterpart, Energy and Infrastructure Minister Suhail Al-Mazrouei. The agreement with the UAE is seen as a step forward in implementing India’s plan to reduce India’s dependence on fossil fuels and cut import costs by 1 trillion rupees.
Oil Industry Workers Stage New Round Of Strikes In Iran
Amid natural gas shortage in Iran due to the government inability to invest in production, a new wave of strikes by oil and gas industry workers has kicked off in the country with gatherings in Ahvaz, Asaluyeh, Dehloran, Shiraz, Ilam, Bandar Lengeh and Aghajari in the south and southwest of Iran. These strikes are at a time when people are also protesting the incompetence of the government to supply natural gas to households in some regions.
Qatar expects natural gas markets will remain volatile for years
According to the energy minister of Qatar, natural gas markets could whipsaw for the next several years because there’s still too little supply to meet rising demand. Qatar, which vies with the US as the world’s top exporter of LNG, is investing around $45 billion to increase its production by almost 60%, but the project will not finish until 2027.
Oman’s Asyad Shipping inks pact for two new LNG carriers
Asyad Shipping, a subsidiary of Asyad Group, signed an agreement with Hyundai Samho Heavy Industries to build two modern LNG carriers dedicated to meeting the growing demand for energy logistics services in anticipation of an uptick in the global demand for gas transportation. These advanced tankers will join the Asyad fleet, which includes various types of tankers and ships, including oil and gas VLCCs, bulk carriers and container ships.
Iranian Oil Exports End 2022 At a High, Despite No Nuclear Deal
Despite U.S. sanctions, Iranian oil exports hit new highs in the last two months of 2022 and are making a strong start to 2023 on higher shipments to China and Venezuela. To evade sanctions, most of Iran’s crude exports to China, their biggest customer, are rebranded as crude from other countries.
Kuwaiti Oil Exports Record 25% Rise To Independent Chinese Refineries
Standard & Poor’s Global Commodity Agency reported that the imports of independent Chinese refineries from Kuwait increased by 25.2% in 2022 compared to 2021, noting that Kuwait exported more than 5.5 million tons/meter in the previous year, compared to more than 4.4 million tons/meter in 2021. Kuwait’s exports to independent Chinese refineries last year ranked seventh, after Malaysia, Russia, Saudi Arabia, the UAE, Iraq and Oman.
U.S., UAE Say $20 Billion Investment To Fund 15 GW In New Clean Energy
The United States and United Arab Emirates announced that the first $20 billion of their $100 billion clean energy partnership would be allocated to fund 15 new gigawatts of renewable energy projects before 2035. The investments would be led by UAE’s Masdar and a consortium of US private investors, and financed through $7 billion in private sector cash equity and $13 billion in US debt financing and other instruments.
UAE Launched 11 Environmentally Friendly Energy Projects Worth $43.2 bln In 2022
The United Arab Emirates launched 11 environmentally friendly energy projects worth AED 159 billion ($43.2 billion) in 2022. The energy minister has also highlighted the launch of the UAE Energy Strategy 2050 – the country’s first unified energy strategy – which aims to integrate the renewable and clean energy mix to achieve a balance between economic needs and climate goals, in addition to reducing dependency on other fuel sources over the next three decades.
UAE’s Dana Gas Says Explosive Device Was Detonated In Iraqi Khor Mor Gas Field
UAE-based Dana Gas said that an explosive device was dropped and detonated within its Khor Mor Block in the Kurdistan Region of Iraq last week. The energy firm said the detonations on Friday morning caused no injuries to people or damage to facilities, and production operations continue at the Khor Mor Gas plant as normal without interruption.
Iraq Parliament Speaker: Basra-Aqaba Oil Pipeline To Be Executed Soon
Iraq’s parliament Speaker Mohammad Al-Halbousi has said that the Iraqi government will start implementing the Basra-Aqaba oil pipeline project soon. He indicated that high financial cost was the most important obstacle the Iraqi government dealt with by preparing a new low-cost study, and that all costs will be paid by Iraq because it is an Iraqi project aiming to increase its oil exports and financial revenues.
UAE Energy Minister: OPEC+ Faces Oil Market Volatility In Both Supply And Demand
UAE energy minister Suhail al-Mazrouei told Asharq TV that OPEC+ is facing “volatile prospects” in oil markets both in supply and demand. He said this was due to European sanctions on Russian crude taking effect in addition to China lifting its “zero-COVID” policy, and that the UAE is taking preemptive steps to compensate for the reduced oil production capacity in some countries by bringing forward its five million barrel per day oil production capacity expansion to 2027 from a previous target of 2030.
UAE And UK Sign Agreement To Enhance Clean Energy Co-operation
The UAE and UK have signed an agreement that will enable sharing of technical knowledge in clean energy, including low-carbon hydrogen and nuclear energy. The agreement was signed by Sharif Al Olama, undersecretary of the Ministry of Energy and Infrastructure for Energy and Petroleum Affairs, and UK Business Secretary Grant Shapps. The agreement will enhance strategic and technical co-operation between the nations in the energy sector and develop renewable energy technology, including regulatory frameworks and incentives.
Qatar Takes FID On Huge Petrochemicals Complex
QatarEnergy announced that it has taken a final investment decision on its $6bn Ras Laffan Petrochemicals Project alongside partner Chevron Phillips (30%). The facility is being developed at the Ras Laffan industrial city in northern Qatar and is due to begin production in late 2026. The complex is centered on a 2.08mn t/y ethane cracker, which, once operational, will be the largest such facility in the Middle East.
Masdar Signs Agreement to Explore Exporting Green Hydrogen from Abu Dhabi to Europe
Masdar, Port of Amsterdam, SkyNRG, Evos Amsterdam and Zenith Energy have signed a memorandum of understanding to explore the development of a green hydrogen supply chain between Abu Dhabi and Amsterdam to support Dutch and European markets.The exported green hydrogen will be delivered to key European sectors – sustainable aviation fuel, steelmaking, and bunkering for shipping – and will also be supplied to new, emerging European offtakers, via pipeline, truck and barge.
Saudi Arabia’s Petromin Revives $1 Billion IPO Plan
Saudi Arabian automotive services firm Petromin is reviving plans for its initial public offering in the kingdom that could raise as much as $1 billion. The company, which is also the Middle East’s oldest lubricants firm, is working with Saudi National Bank and Moelis & Co. on the planned offering.
Gulf Markets Subdued Ahead Of U.S. Inflation Data; SNB Lifts Saudi
Most major Gulf stock markets were subdued on Thursday as sentiment across markets remained frail ahead of upcoming inflation data from the United States. Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar, exposing them to direct impacts from any Fed monetary tightening.
Bahrain’s Alba Awards Over 6MW Solar Farm Project To Saudi Firm
Aluminium Bahrain (Alba), one of the world’s largest aluminum smelters, has awarded its solar farm project to Advanced United Systems, to install solar photovoltaic panels over 37,000 sq m with a capacity of more than 6 megawatts. Advanced United Systems is a Saudi company and part of the Taj Holding Group that specializes in smart grid solutions, energy, and renewable energy services. The project will generate in the range of 10,539 MWHr per year and approximately 7,591,760 kilograms of carbon emissions would be reduced per year – corresponding to a total reduction of 189,794,000 kilograms of carbon emissions over a 25-year span.
UAE Names Oil Company Chief To Lead UN’s COP 28 Climate Talks
Emirati authorities on Thursday nominated Sultan al-Jaber, a confidant of UAE President Sheikh Mohammed bin Zayed Al Nahyan and also serves as CEO of the Abu Dhabi National Oil Co., to preside over the upcoming United Nations climate negotiations in Dubai. Al-Jaber’s firm pumps some 4 million barrels of crude a day and hopes to expand to 5 million daily, but the Emirates’ state-run WAM news agency has noted al-Jaber’s years also serving as a climate envoy.
Alba To Start Installing Solar PV Panels Over 37,000 m2
Aluminium Bahrain B.S.C. (Alba), one of the world’s largest Aluminum smelters, announced that it has awarded its Solar Farm Project towards Advanced United Systems to install Solar Photovoltaic Panels over 37,000 m2 with a capacity of more than 6 Megawatts. The Solar Farm Project will generate in the range of 10,539 MWHr per year and approximately 7,591,760 kilograms of carbon emissions would be reduced per year – corresponding to a total reduction of 189,794,000 kilograms of carbon emissions over a 25-year span.
Shell Oman Signs Agreements For Syngas And LNG Offtake; Takes Stake In Green Hydrogen Project
Shell Oman has signed a Letter of Intent with Oman’s Ministry of Energy and Minerals to explore the deployment of Liquified Synthetic Gas in Oman. In another agreement, Shell Oman has taken a 35 percent stake in Green Energy Oman, the consortium that is developing the country’s largest renewable green hydrogen project. In a third agreement, Shell Oman has signed a term sheet with Oman LNG for the purchase of 0.8 million metric tonnes per year of liquefied natural gas for a period of 10 years, starting from 2025.
Russia’s Putin and Iran’s Raisi Discuss Energy And Transport In Telephone Call
Russian President Vladimir Putin discussed energy and transport projects with Iran’s President Ebrahim Raisi in a telephone call. The Kremlin has said that “The presidents spoke in favor of the consistent implementation of mutually beneficial projects in the energy, transport and logistics sectors.” Moscow and Tehran have moved to forge closer relations after Russia sent tens of thousands of troops into Ukraine last February, prompting sweeping Western sanctions. Russia and Iran, which are also under Western sanctions, are among the world’s largest oil exporters.
Gulf Markets Slightly Weaker As Oil Prices Slip
Gulf stock markets opened slightly in the red on Tuesday as oil prices fell. Oil prices, a key catalyst for the Gulf’s financial markets, edged lower on expectations that further interest rate hikes in the United States, the world’s biggest oil consumer, will slow economic growth and limit fuel demand.
UAE’s Masdar To Develop Renewable Energy Projects In Kyrgyzstan
Abu Dhabi renewable energy firm Masdar has signed an agreement with Kyrgyzstan’s energy ministry to develop clean energy projects with a capacity to generate 1 gigawatt. The pipeline of projects will start with a 200 megawatt solar photovoltaic plant scheduled to begin operations by 2026. Kyrgyzstan is looking to reduce its greenhouse gas emissions by 44% by 2030 and achieve carbon neutrality by 2050.
Qatar Moves Ahead With $6 billion Ras Laffan Petrochemicals Project
QatarEnergy announced the final investment decision with Chevron Phillips Chemical Co. to build the 2.1 million mt/year ethylene project in Ras Laffan for $6 billion, marking the company’s largest investment in petrochemicals in Qatar. Both sides agreed to establish a joint venture for the Ras Laffan petrochemicals project that will be 70% owned by QatarEnergy and 30% by Chevron Phillips. The go-ahead is the latest in a raft of projects planned by state-owned oil and natural gas companies in petrochemicals in the region as they seek to broaden the scope of their business.
Kahramaa To Set Up 150 Electric Charging Stations In 2023
While continuing its sustainability practices and efforts to reduce carbon emission, the Qatar General Electricity and Water Corporation (Kahramaa), represented by the National Programme for Conservation and Energy Efficiency (Tarsheed), will set up 150 electric vehicle (EV) charging stations across the country in 2023. Engineer Mohamed Khalid al-Sharshani, head of the technical section at Tarsheed, has said that they are “looking to expand the network to 600 to 1,000 fast charging stations by 2025.”
Kuwait Expected To Award Substations Contract In Q1 2023
Kuwait’s Ministry of Electricity, Water and Renewable Energy (MEW) is expected to award the engineering, procurement and construction (EPC) contract for four main substations – Rumaithiya C, Salmiya X, Egaila Entertainment Projects G and Salwa E – by the first quarter of 2023. The estimated total project value is at $70 million.
Kuwait To Export Five Times As Much Diesel To Europe In 2023
Kuwait will send to Europe five times its usual shipments of diesel, around 2.5 million tonnes, this year as an anticipated ban of oil products from Russia takes effect. The EU is expected to ban Russian imports on February 5 as part of ongoing sanctions on Russia for its invasion of neighboring Ukraine.
Iran’s LPG Exports Increase 86%
The value of Iran’s liquefied petroleum gas (LPG) export rose 86 percent from the beginning of the current Iranian calendar year (March 21, 2022) up to December 31, as compared to the same period of time in the past year. Iran exported $6.783 billion worth of LPG in the mentioned period to register a new record in the country’s gas exports.
Iraq Approves $3bln Power Plant
OPEC member Iraq has approved the construction of a new power plant at a cost of around $3 billion. The project will be in the Southern Dhi Qar Governorate with a generation capacity of 3,000 megawatts. The project will boost Dhi Qar’s electricity output from 850 MW to 3,950 MW and will “provide a final solution to the Governorate’s power crisis.”
JERA Signs Agreement With Oman LNG Project
JERA Co., Inc. has signed a key term sheet for the sale and purchase of LNG with Oman Liquefied Natural Gas LLC (Oman LNG). JERA will purchase up to 12 cargoes (approximately 0.8 million t) per year of LNG produced from the Oman LNG project from 2025 for 10 years. LNG procurement competition has been intensifying, and stable procurement of fuel in a timely manner in line with the domestic electricity supply-demand situation is thus needed to secure a stable supply of energy in Japan.
ADNOC Allocates $15 Billion To Low-Carbon Projects
ADNOC announced today an investment of $15 billion in projects by 2030 that will help the state-owned energy company accelerate its low-carbon growth strategy. These projects will include investments in clean power, carbon capture and storage (CCS), further electrification of its operations, energy efficiency, and new measures to build on ADNOC’s long-standing policy of zero routine gas flaring. Together with the recent formation of the ADNOC’s new Low Carbon Solutions and International Growth Directorate, these represent tangible and concrete action as the company reduces its carbon intensity by 25% by 2030 and moves towards its Net Zero by 2050 ambition.
Saudi Arabia Cuts Oil Prices For Main Market As Demand Slows
Saudi Arabia cut oil prices for Asia, signaling that demand in its main market remains sluggish, as economies slow and coronavirus cases in China surge. Saudi Arabia sells most of its oil under long-term contracts to Asia, pricing for which is reviewed each month, with China, Japan, South Korea and India being the biggest buyers.
OPEC Oil Output Rises Despite Production Target Cuts
OPEC oil output rose in December despite an agreement by the wider OPEC+ alliance to cut production targets to support the market. The rise was led by recovering output in Nigeria, which has been battling with crude theft and insecurity in its oil-producing region. This output has weakened compliance with the 2 million bpd cut to OPEC+ output target announced in November 2022.
Abu Dhabi Sustainability Week Hosts First Green Hydrogen Summit in Year of Climate Action for UAE
Abu Dhabi Sustainability Week (ADSW) will hold its first annual Green Hydrogen Summit on January 18th, 2023, highlighting green hydrogen’s growing importance in the global drive toward net zero. The inaugural Green Hydrogen Summit at ADSW will cover topics including, developments in hydrogen production, conversion, transport, storage, and use. It will also include high-level discussions focused on the development of the UAE hydrogen economy, the role of government and regulation, and panel sessions on a broad range of topics including innovation, sustainable finance, green energy in Africa, and hydrogen’s value chain.
Iraq Oil Revenues In 2022 Exceed $115 Billion
Iraq’s oil revenues in 2022 exceeded $115 billion- a four-year high following a collapse in prices during the coronavirus pandemic. The country exported more than 1.2 billion barrels in 2022, averaging 3.3 million barrels per day.
Oman’s Production Of Crude Oil, Condensates Surges 10%
Oman’s production of crude oil and condensates recorded a rise by 10% till the end of November 2022, standing at 355.473 million barrels, an increase from the previous year’s 323.174 million barrels. The average price of Oman’s crude oil surged by 52.7% till the end of November 2022 at USD 95.8 per barrel compared to $62.77 per barrel by the end of November 2021.
Clean Energy Reaches 14% Of Dubai’s Total Power Production Capacity
Saeed Mohammed Al Tayer, MD and CEO of Dubai Electricity and Water Authority (DEWA), has announced that the production capacity of clean energy in Dubai has reached 2,027 megawatts (MW) using photovoltaic solar power (PV) and concentrated solar power (CSP). This is about 14 percent of Dubai’s total power production capacity of 14,517 MW. He made the announcement during his visit to the Mohammed bin Rashid Al Maktoum Solar Park, which DEWA is implementing. This is the largest single-site solar park in the world using the Independent Power Producer (IPP) model and will have a production capacity of 5,000 MW by 2030, using photovoltaic solar panels and CSP technologies.
Iran’s First Coal-Fired Power Station Plan on Track
The construction of the first phase of Iran’s first coal-fired power plant in Tabas, South Khorasan Province, is 35% complete. The Tabas power station is expected to not contribute to air pollution as it will be equipped with advanced pollution-reduction systems. The Energy Ministry plans to build coal-fired power stations capable of producing 5,000 megawatts of power over the next two decades as Iran moves forward in its plan to diversify its sources of energy.
New Law In Saudi To Enhance Energy Efficiency, Promote Low-Carbon Circular Economy
Approved by the Saudi Council of Ministers, the new Energy Supplies Law aims to privatize the energy sector, including electricity supply, oil refineries, petrochemicals, water desalination, mining, agriculture, construction and related sectors. The law stipulates the formation of a committee, with representatives of 15 bodies, to study executive regulations and approve privatization criteria. The law is also expected to have several advantages that contribute to improving the efficiency of energy supply and promote a low-carbon circular economy.
Oman To Set Up Integrated Company To Manage Natural Gas Assets
Oman plans to establish an integrated gas company to manage all natural gas assets, including exports and imports of the commodity and its derivative products. The new company by Oman’s Finance Ministry is aimed at improving the country’s economic indicators by excluding gas purchase and transport costs from the general state budget. The move will “upgrade” the efficiency of the sector by recognising the net revenue from gas sales.
Kuwait’s Oil Corporate Investment Put At $2.43bln
Kuwait’s state oil operator and its subsidiaries control stake in 13 local and foreign companies with a total value of around 738.5 million Kuwaiti dinars ($2.43 billion). The Kuwait Petroleum Corporation (KPC), which manages the OPEC producer’s massive hydrocarbon industry, and its affiliates own shares in two major South Korean groups and a number of firms in Kuwait, Asia and Europe.
558,340 kwh Of Clean Energy Produced From Waste Generated During World Cup
As much as 558,340 kwh of clean energy was produced from the waste generated throughout the FIFA World Cup Qatar 2022. While 72% of the waste from the event was recycled, the rest was used to produce clean energy in cooperation with the Supreme Committee of Delivery and Legacy (SC) and the private sector.
Oman, Japan Sign MoUs In Energy Field
Oman and Japan signed a memorandum of understanding (MoU) in the field of hydrogen, fuel ammonia and carbon recycling. The two countries also signed a third extension for a MoU in the field of crude oil, natural gas and clean energy. The first MoU aims to accelerate the Oman-Japan energy and resources cooperation and acknowledge the continued role and contribution of Oman to Japan’s energy security. The second MoU was first signed on January 9, 2014 in confirmation of the two sides’ mutual intention and desire to promote and develop cooperation in the field of crude oil, natural gas and clean energy development on the basis of reciprocal benefits.
The GCC’s First Hydroelectric Power Plant Reaches 58% Completion
Dubai Electricity and Water Authority (DEWA)’s pumped-storage hydroelectric power plant site in Hatta is 58.5% complete. The station is the first of its kind in the GCC, has investments up to AED 1.42 billion, and is expected to be completed in 2024. The power plant is part of DEWA’s efforts to achieve the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050 to provide 100% of Dubai’s total power production capacity from clean energy sources by 2050.
Saudi Arabia’s ACWA Power Signs $2.4bn Wind Energy PPA With Uzbekistan
Saudi Arabia’s ACWA Power has signed a power purchase agreement with the National Electric Grid of Uzbekistan to build three wind power plants in the north-western Karakalpakstan region of Uzbekistan. The agreement is valued at $2.4 billion and is expected to offset 2.4 million tons of carbon emissions per year and power 1.65 million homes.
Saudi Arabia and Japan Sign Investment Agreements In The Petrochemicals And Automotive Sectors Among Others During Bilateral Forum
Saudi Arabia and Japan on Monday signed 15 strategic investment agreements spread across various industries during the Saudi Japan Investment Forum held in Riyadh. During the forum Saudi Minister of Investment Khalid Al-Falih said the two countries have bolstered their relationship as the Kingdom targets $3.3 trillion worth of investments with Japan by 2030. The Kingdom aims to become the world’s leading energy nation as the two countries intend to cooperate for a smoother energy transition.
Saudi Arabia, Japan Sign Agreements On Circular Carbon Economy, Clean Hydrogen, Fuel Ammonia
Saudi Arabia and Japan signed a memorandum of cooperation (MoC) on Sunday in the fields of the circular carbon economy, carbon recycling, clean hydrogen and fuel ammonia. Under the two memoranda of cooperation, the two countries will accelerate the use of hydrogen in transport, promote research and development of hydrogen and fuel ammonia technologies and their use at the local, bilateral, regional and international levels.
Yemen And Masdar Signs Agreement To Build 120 MW Solar Power Plant In Aden
Yemen’s Ministry of Electricity and Energy signed an agreement with Abu Dhabi Future Energy Company, Masdar, to provide the interim capital, Aden, with a solar power plant with a total capacity of 120 megawatts.
Germany’s Uniper And Masdar To Build Green Hydrogen Plant In UAE
Masdar’s executive director for clean energy, Mohammad Abdelqadar El Ramahi, said in an interview that Germany’s Uniper SE is teaming up with Masdar, one of the Middle East’s biggest renewable-energy firms, to make green hydrogen in the United Arab Emirates. The two companies will build a plant that will run on almost 1.3 gigawatts of solar power and is expected to produce hydrogen from 2026. Uniper’s shareholders agreed to a €33 billion ($35 billion) rescue this week that will lead to the utility’s nationalization and avoid its collapse following a surge in natural-gas prices in the wake of Russia’s invasion of Ukraine. The German government expects Uniper to strengthen its climate targets in the coming years.
QatarEnergy Signs Agreement With QPD To Continue Al-Karkara And A-Structures Offshore Fields Development, production
QatarEnergy and Japan’s Qatar Petroleum Development Company (QPD) signed a new agreement for the continued development and production of the Al-Karkara and A-Structures oil fields, located in the territorial waters of Qatar. The new five-year agreement, which commences on December 23 succeeds the development and production sharing agreement signed in December 1997. Under the new agreement, QPD will continue to act as the operator of the oil fields. The fields started production in March 2006, and since then have produced a total of 33.5mn barrels of crude oil.
Opec+ To Remain ‘Proactive’ Amid Oil Market Uncertainty, Saudi Energy Minister Says
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said in an interview with official news agency SPA that OPEC+ will remain “proactive” as global oil markets face uncertainty, “In face of a wide range of uncertainties, OPEC+ has no choice but to remain proactive and preemptive, and this is not an easy task, especially that the market has the tendency to overreact to news in both directions.”
TotalEnergies Raises The Bar With Its Renewable Ambition In Saudi Arabia
On December 19, Frence’s TotalEnergies announced the commencement of Saudi Total Petroleum Products Co.’s solar project of installing a rooftop system on its lubricants blending plant, located at King Abdullah Economic City’s Industrial Valley. The solar system will be implemented by a joint venture named Saudi French for Energy Efficiency and Renewables, established in 2021 by the Jeddah-headquartered Zahid Group and French energy company TotalEnergies. In line with the renewable energy goals of Vision 2030, TotalEnergies is aiming to be a world-class player in the energy transition by becoming a multi-energy company.
OPEC Fund Approves Over $500m In New Global Development Support
On December 20, OPEC Fund for International Development (OFID) has approved more than $500m in new financing at the most recent meeting of its governing board and in the final quarter of 2022. The 15 new projects approved reflect OPEC Fund’s launch of a $1bn food security action plan and the adoption of its first dedicated climate action plan. The OPEC Fund Governing Board approved projects in the following countries: Niger, Bangladesh, Uzbekistan, Tanzania, Benin, Liberia, Cote d’Ivoire, Kyrgyzstan, Madagascar, Mauritania, Botswana.
SABIC, Aramco, Sinopec To Assess Viability Of Developing Petrochemical Complex
Saudi Basic Industries Corp. has signed a memorandum of understanding with energy giant Saudi Aramco and China Petroleum & Chemical Corp., known as Sinopec, to assess the economic and technical feasibility of developing an integrated petrochemical complex with an existing refinery in Yanbu. Apart from the deal with SABIC, Sinopec, in December, also signed a framework agreement with Saudi Aramco to build a Phase II 16 million-ton-a-year refining project and 1.5 million-ton-year ethylene units in Gulei, Fujian. Aramco said the announcements support its role as a reliable energy supplier to China as the company seeks to expand its liquids to chemicals capacity to up to 4 million barrels per day by 2030.
Iran Says Enriched Uranium Capacity Hits Record
Iran said Saturday its uranium enrichment capacity has increased to record levels, a day before United Nations nuclear monitors are set to visit the country. Mohammad Eslami, head of the Atomic Energy Organization of Iran said, “Currently, the enrichment capacity of the country has reached more than twice the entire history of this industry,” The International Atomic Energy Agency will send a technical team to try to resolve a deadlock over the detection of traces of radioactive material at sites not declared as having hosted nuclear activities. The issue has hindered efforts to revive a 2015 nuclear deal between Iran and major powers.
Aramco, TotalEnergies Invest $11 Billion In New Oil Complex In Saudi Arabia
Aramco and TotalEnergies are joining forces and investing $11 billion to build a new petrochemicals complex in Saudi Arabia. Aramco is funding 62.5% of the project whilst TotalEnergies is funding the other 37.5%. The complex will be operated by both companies and will be integrated into the Saudi Arabia Total Refining and Petrochemicals (SATORP) and will be located in Jubail. This venture will open up 7,000 new jobs in Saudi Arabia and comes in light of the Russia-Ukraine war which has provided Saudi Arabia with the opportunity to “strengthen its position in the oil sector”. The kingdom has also been investing in other places, such as South Korea.
Aramco Partners With US Software Company For Carbon Capture Tech
Aramco has partnered with US-based Aspen Technology to introduce practical and economic solutions for carbon capture and utilization (CCU). The technology was developed as a part of a collaboration between Aramco and Korea Advanced Institute of Science & Technology (KAIST). By considering economics, process design and operations constraints and CO2 reduction, the technology aims to address the identification of the best CCU paths.
Hungary To Start Talks With Qatar About Buying LNG -Foreign Minister
Hungary and Qatar agreed that Hungary’s energy group, MVM, and Qatar’s QatarEnergy will begin talks about the latter supplying Hungary with liquefied natural gas (LNG) within the next three years. Qatar is currently one of the world’s top LNG exporters and several European states have already been in talks with Qatar in an effort to reduce their reliance on Russian energy supplies. This agreement would also require the European Union to expand the capacity of the continent’s Southern LNG terminals.
Saudi’s PIF Acquires Up To 9.5% Stake In Skyborn Renewables
Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF) has announced the acquisition of up to 9.5% of Skyborn Renewables, alongside Global Infrastructure Partners. Skyborn is an offshore wind developer and operator that has projects in Germany, France, and Taiwan. Through this acquisition, PIF is involved in the acceleration of energy transition and clean energy at an international scale. PIF has also been investing in the low carbon sector in an effort to develop 70% of the kingdom’s renewable energy by 2030. It comes in light of the fund investing in other renewable energy companies such as ACWA and Sudair and Al Shuaibah Solar Energy Projects.
UAE To Open Facility That Converts Waste To Green Hydrogen
Sharjah-based sustainability group, BEEAH, signed an agreement to build the United Arab Emirates’ first waste-to-hydrogen power plant. The memorandum of understanding was signed between BEEAH, Air Water (a Japanese gas conglomerate), and Chinook Sciences (a British waste-to-fuel technology firm). The goal is to create a facility that will convert waste wood and plastic to hydrogen which will then be used for fuel. This agreement is reflective of UAE’s policy of moving towards green technology, away from oil and gas.
Saudi Arabia Will Host The Middle East’s Largest Solar Facility
Saudi Arabia’s Water and Electricity Holding Company (Badeel), a subsidiary of the Public Investment Fund (PIF), and ACWA Power have signed power purchase agreements to develop the largest solar energy plant in the Middle East. The 2,060 MW plant is to be built in Al Shuaibah and is expected to be operational by 2025. The electricity generated from this solar energy plant will be sold to the Saudi Power Procurement Company and is expected to power 350,000 homes. Yazeed A. Al-Humied, head of MENA Investments at PIF, said in a statement, “This marks a key achievement toward PIF’s commitment to develop 70% of Saudi Arabia’s renewable energy by 2030.”
Aramco ‘In Talks’ With Investors On $110bn Jafurah Gas Project
Aramco has begun talks with investors for the new Jufarah gas development project to fund the midstream and downstream projects there. The Jufarah gas project is an ambitious attempt by Saudi Arabia to diversify their energy exports. Aramco has reached out to large funds and private equity firms that would be able to offer stakes in projects such as carbon capture and storage. The company will use the gas produced in the Jufarah gas field to create blue hydrogen that will be exported as a clean energy source. The war in Ukraine has led to European countries looking to the Gulf for oil and gas supplies, causing the Gulf states to embark on ambitious projects to expand their oil and gas output, such as this one.
Aramco, Shandong Energy to collaborate on projects in China; cooperation across H2, renewables and carbon capture technologies
Aramco and Shandong Energy signed a Memorandum of Understanding (MoU) regarding petrochemical and refining opportunities in China. The memorandum consisted of a potential crude oil supply and chemicals product offtake agreement. Their collaboration also extends to future cooperation in the sectors of hydrogen, renewable energy, and carbon capture technologies. The MoU comes in the context of the summit of Gulf Arab leaders in Riyadh where Chinese President Xi Jinping said that China would buy oil and gas in yuan, which is seen as an attempt to weaken the hold of the US dollar on world trade. This agreement is also in the context of various other energy-related deals signed between the two countries.
Aramco Gulf Operations, Kuwait’s KGOC Agree To Develop Durra Gas Field, Saudi News Agency Reports
It was reported that Saudi Aramco Gulf Operations Company signed a Memorandum of Understanding on Sunday with Kuwait Gulf Oil Company (KGOC) to develop the joint Durra gas field. Its result is supposed to be producing 1 billion cubic feet of gas and 84,000 barrels of liquefied gas per day.
Saudi ACWA Power Signs Deals With 9 Chinese Entities On Clean Energy, Renewables
Saudi Arabia’s ACWA Power signed agreements with 9 Chinese entities on matters related to clean energy and renewables. These agreements will lay the foundation for the “financing, investment and construction” of ACWA Power’s clean and renewable energy projects. The memorandums of understanding were signed during the 1st China Arab Summit and it comes in light of Saudi Arabia and China signing deals in several sectors including green energy and information technology amongst others. The Chairman of ACWA Power said, “we are in a unique position to support both the energy transition and economic transformation envisioned by Saudi Arabia’s forward-looking and iconic Vision 2030, as well as China’s Belt and Road initiative.”
Gulf Producers Lead On OPEC+ Cuts, Saudi Crude Output At 6-month Low: Platts Survey
The OPEC+ oil producer alliance decreased their output by 700,000 barrels per day in November; this was a move conducted by 14 out of the 22 countries in the coalition and was the steepest decrease since April of this year. Additionally, the Saudi Energy Minister argued that the major oil producers were dedicated to maintaining the current quotas. Whilst countries like Iraq and the UAE cut their oil output, there was an increase in oil production in places like Kazakhstan, Nigeria and Russia. The goal for 2023 is therefore to make sure that the OPEC+ Alliance keeps the quotas steady.
Oman Minister Says Oil Producers Are Uneasy Over Russia Price Cap
Oman’s energy minister has said that there is a great amount of unease amongst oil-reliant economies over the cap that the Group of Seven put on the price of Russian barrels. There has been a price ceiling placed on Moscow’s oil exports. This is significant because the restrictions will lead to overall less investment in global oil production. OPEC+ have also agreed to keep production steady at 2 million barrels a day.
Saudi and Chinese Companies Sign 34 Investment Agreements
Saudi and Chinese companies signed 34 investment agreements that covered several sectors in the field of energy, including “green energy, green hydrogen, photovoltaic energy, information technology, cloud services, transportation, logistics, medical industries, housing and construction factories.” These agreements were signed during China’s President Xi Jinping’s visit to Saudi Arabia. The Saudi Minister of Khalid bin Abdulaziz Al-Falih said that this agreement is a reflection of the two countries’ “keenness” to develop and strengthen existing relations in all fields. This investment agreement also comes in light of Saudi’s Vision 2030 which aims to offer investment opportunities in many different sectors including those of energy.
Oil Prices Fall To Lowest Since January Despite Saudi-backed Production Cut
Oil prices have fallen to a yearly low despite Saudi Arabia’s efforts to cut oil production. The OPEC+ alliance met on December 4th and agreed to keep oil production to 2 million barrels per day. Despite the decrease in oil production, which should in theory lead to increased oil prices, there was a fall in oil prices. Simon Henderson of the Washington Institute for Near East Policy said that this was “related to the global economy” and that it could reflect “market anxieties about the prospect of a recession.” However analysts argue that it is not going to cause a collapse in oil prices as it did in 2020 when there was a price war between Russia and Saudi Arabia which led to massive oil price drops.
Abu Dhabi’s ADNOC, TAQA And Mubadala Complete Deal To Acquire Masdar Stakes
Abu Dhabi National Energy Company (TAQA), Mubadala Investment Company (Mubadala) and Abu Dhabi National Oil Company (ADNOC) have completed a deal with Masdar where they will become shareholders in the Abu Dhabi-based clean energy company. This will result in Masdar’s growth as it will expand and cover “renewable power, green hydrogen and other enabling clean energy technologies, a statement said.” It is an effort to help the UAE reach its Net Zero by 2050 strategic initiative and to meet the world’s demand for clean energy. With this partnership, Masdar’s target for renewable energy capacity is 100GW and it aims to increase production of green energy to one million tons by 2030.
Saudi Arabia Expects Narrower 2023 Surplus as Uncertainty Clouds Oil Outlook
Saudi Arabia is expected to have a budget surplus in 2023 but it is 84% lower than that of this year due to “uncertain global economic outlook and lower crude prices.” The budget of 2023 will be 1.114 trillion-riyals ($296 million) with a surplus of 0.4%. The surplus is to be used “to boost government reserves, support state funds, like PIF, and strengthen the kingdom’s financial position,” as was said by Crown Prince Mohammed bin Salman. Furthermore, Monica Malik, chief economist of the ADCB claims that the economic impact of this reduction in surplus is to be “limited”. The country has exhibited restraint fiscally following the COVID-19 pandemic where oil prices “collapsed”. However, due to rising oil prices, Saudi Arabia was able to have its first budget surplus this year since 2013.
Adnoc to set up new vertical in decarbonisation push
Adnoc is hastening its decarbonisation strategy by setting up a new low carbon solutions and international growth vertical. The new vertical will focus on renewable energy, clean hydrogen and carbon capture and storage, as well as international expansion in gas, liquefied natural gas (LNG) and chemicals. Adnoc has set a new methane emissions target for its upstream unit as part of its efforts to reduce its overall greenhouse gas emissions. The state-owned oil company is aiming for the “Middle East’s lowest” methane intensity target of 0.15 per cent by 2025.
Global renewable capacity to double over next 5 years as energy crisis deepens: IEA
Global renewable power capacity is expected to double over the next five years primarily driven by energy security concerns caused by Russia’s invasion of Ukraine, according to the International Energy Agency. In its annual report on the outlook of renewables, the organization noted that the capacity of renewables globally is expected to grow by 2,400 gigawatts over the 2022-2027 period, an amount equal to the entire power capacity of China today. According to the report, Europe is leading the energy transition from the front as EU nations are looking to rapidly replace Russian gas with alternatives post the conflict in Ukraine. The report added that countries like China, US and India are implementing policies and introducing regulatory and market reforms to combat a possible energy crisis.
Saudi Arabia sets Jan Arab Light prices to Asia at 10-mth low
Saudi Arabia cut the January official selling price (OSP) for its flagship Arab Light crude for Asian buyers to a 10-month low, on concerns over faltering demand and a potential increase in Russian competition. The OSP for January-loading Arab Light to Asia was trimmed by $2.20 a barrel from December to $3.25 a barrel over Oman/Dubai quotes. The new OSP is just above the previous low of $2.80 per barrel, set for March 2022. Although the market remains cautious on lifting Russian crude as the price cap is just set, it is unlikely that more cargoes will flow to Asia and compete with the Middle Eastern crude.
Saudi Arabia explores opportunities with Netherlands on energy, circular economy in key meeting
Senior officials and business leaders from Saudi Arabia and the Netherlands have met to discuss potential collaborations regarding the energy and circular economy fields. The meeting also shed light on potential opportunities in the Kingdom, specifically in addition to discussions on the development in the labor market and women’s participation in the workforce.
OPEC+ maintains status quo on output amid fresh price cap on Russian oil
OPEC+ has agreed to roll over its existing output policy, just a day after the Group of Seven nations decided to put a price cap on Russian energy supplies. The decision was made at the 34th OPEC and non-OPEC Ministerial Meeting, which was held virtually, on Dec. 4, 2022. OPEC+’s key ministers will next meet on Feb. 1 for a monitoring committee while a full meeting is scheduled for June 3-4.
Iran Increases Gas Exports to Iraq After Payment Settlement
Iraq has settled all payments related to purchases from the National Iranian Gas Company according to the Iranian oil minister. Last year they received about €1 billion [$1.05 billion] and this year €1.6 billion [$1.685 billion] from Iraq regarding its gas debts to Iran. The volume of gas exports to Iraq since the beginning of the current Iranian year [started March 21] has increased by 1.5 billion cubic meters compared with the same period of last year. Iraq has secured special waivers from the US sanctions on Iran to be able to import natural gas and electricity from its eastern neighbor.
7.3 Billion Tons of Potential Phosphate Reserves in Saudi Arabia
The world will need to increase the production of some types of minerals by 500% to meet the future demand for clean energy, according to Saudi Vice Minister of Industry and Mineral Resources for Mining Affairs Khalid Saleh Al-Mudaifer, during the Mines and Money conference in London. Saudi Arabia has become one of the most prominent countries in the field of producing phosphate fertilizers, with potential reserves of phosphate amounting to 7.3 billion tons. The World Bank estimated that there is a need for more than 3 billion tons of minerals and metals.
Germany to get new Qatari LNG flows through QatarEnergy, ConocoPhillips deal
Germany is set to receive new flows of Qatari liquefied natural gas from 2026 after QatarEnergy and ConocoPhillips signed two sales and purchase agreements for its export covering at least a 15-year period. This comes as a result of sanctions placed on Russian LNG, on which European countries were heavily reliant. This new venture will help ease the potential energy crisis that Germany is facing and strengthens ties with Qatar.
Kuwait’s $6.3 bln clean energy projects under implementation
Kuwait has clean energy projects worth $6.3 billion under implementation, while it has only 0.5% of the installed clean energy capacity. A report also indicates that Kuwait has multiple projects which are still in the “study phase” which bodes well for future clean energy endeavors. Amid global economic decline, however, it is understood that their spending on these projects may not be as aggressive as they look to take the most economically suitable approach.
SABIC and Aramco plan to start crude-to-petrochemicals project in Ras Al-Khair
SABIC is planning to start a joint project with Saudi Aramco to convert crude into petrochemicals. As oil receives strong demand, the Saudi energy minister confirmed that this venture will accelerate growth by 60% until 2040. This strategy is currently in its final stages and it includes building an important chain from basic petrochemicals to specialized petrochemicals. The system aims to convert about 4 million barrels of crude and liquids into petrochemicals for local projects. Aramco has been working to commercialize crude to chemicals technologies as part of the strategy to position itself as a preeminent player in the global petrochemicals industry.
Saudi listed firms’ net profit soars 32% as energy, banking sectors shine
Energy firms and banks helped fuel a 32 percent year-on-year rise in aggregate profits for listed companies in Saudi Arabia in the third quarter of 2022. Companies operating in the Kingdom’s energy sector witnessed the maximum profit during the third quarter at $41.2 billion, driven by crude oil prices and volumes sold. UAE-listed companies were the only others in the region to record higher profits for the quarter. GCC companies net profits continued to show growth in the third quarter of 2022 and were up by almost a quarter to reach $70.7 billion as compared to $57.2 billion during the same period in the previous year. These reports further establish the strength of GCC states economically and especially in the energy sector.
Masdar agrees to build 100MW solar PV plant in Turkmenistan
Masdar has signed a joint development agreement (JDA) with Turkmenistan’s state-owned power company Turkmenenergo to build a 100MWac solar photovoltaic (PV) plant. The two companies agreed to explore development and investment opportunities in solar and wind power projects on a public-private partnership basis. This development aims to reduce Turkmenistan’s dependence on hydrocarbons and strengthen their energy infrastructure.
Oil rises 1% as OPEC+ focus on supply cuts outweighs recession concerns
Oil prices rose about 1% on Tuesday after top exporter Saudi Arabia said OPEC+ was sticking with output cuts and could take further steps to balance the market. However, prices pared gains late in the session after Bloomberg reported that the European Union watered down its latest sanctions proposal for a price cap on Russia’s oil exports by delaying its full implementation and softening key shipping provisions. In focus later will be the latest weekly snapshots of supply in the United States, which are expected to show crude inventories fell by 2.2 million barrels.
Iran to enrich Uranium to 60 percent purity at Fordow nuclear site
Iran has begun enriching uranium to 60 percent purity at its underground Fordow nuclear site. This is one of many sites where Iran has pursued nuclear development, directly defying the IAEA. Iran are currently being urged to comply with western demands, as they claim that their current ventures violate the agreements signed at the 2015 nuclear pact. Iran responded with claims that these investigations are politically motivated, and that they are not violating any treaties.
Saudi energy minister denies output increase discussion
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman has denied recent reports stating that the Kingdom is currently discussing an increase in production by 500,000 barrels per day with other OPEC+ producers. He affirmed that it is clear OPEC does not discuss any decisions before its meetings. The UAE energy minister affirmed that his country is “engaging in any discussion with other OPEC+ members to change the last agreement which is valid until the end of 2023.” OPEC remains committed to maintaining balance in the oil markets and global economy.
Saudi Arabia’s Crown Prince visit Thailand to ink landmark deal on energy
The kingdom’s crown prince visited Thailand to encourage hopes of a productive and permanent relationship between the two countries. After 30 years of no diplomatic relations, ties were regained when Thai Premier Prayuth Chan-ocha trip to Riyadh at the beginning of the year. This meeting presented several deals on energy, tourism as well as normalizing diplomatic ties, Thais who give info to Arab News stated that it was vital to them on a personal level as well.
Oil slides on China demand concerns, easing supply worries
Oil fell around 2 percent on Friday and was on track for a second weekly decline, pressured by concern about weakening demand in China and further interest rate rises by the US Federal Reserve. China, which sources say is looking to slow crude imports from some exporters, has seen a rise in COVID-19 cases, while hopes for the moderation of aggressive US rate hikes have been dented by remarks from some Fed officials this week. Brent crude was down $1.80, or 2 percent, at $87.98 a barrel by 1325 GMT, having touched $87.86 earlier, the lowest since Oct. 3. US West Texas Intermediate (WTI) crude was down $1.52 or 1.9 percent at $80.12. OPEC+, which began a new round of supply cuts in November, holds a policy meeting on Dec. 4.
S. Korea, Saudi Arabia agree to boost energy and defense ties
The leaders of South Korea and Saudi Arabia agreed Thursday to boost ties in key sectors such as energy and defense, with the oil-rich kingdom signing a slew of deals including a $6.7 billion petrochemical agreement. During the visit, the two governments and companies from both countries — including some of Seoul’s top conglomerates — signed about 20 deals in areas from agriculture to railways. Among the agreements was Saudi investment for South Korean refiner, S-OIL’s Shaheen project, which would build petrochemical production facilities in South Korea worth $6.7 billion.
OPEC Sec Gen says organization is ready to intervene for the benefit of oil markets
OPEC Secretary General Haitham al-Ghais said on Wednesday that the organization is ready to intervene for the benefit of oil markets, Saudi-owned Al-Arabiya TV reported. Ghais also said that Organization of the Petroleum Exporting Countries (OPEC) is aware, cautious and monitoring economic developments worldwide.
Saudi Arabia has ‘green vision’ at COP27, critics unmoved
“We have hugely ambitious goals and targets,” Saudi climate envoy Adel al-Jubeir said at the two-day Saudi Green Initiative Forum on COP27′s sidelines. “We want to be an example to the world in terms of what can be done.” The effort is part of a large push by Saudi Arabia to make the case that the nation should be part of the transition to renewable energies while holding on to its role as the top global crude oil exporter. Saudi Aramco plans to build the world’s biggest carbon capture and storage hub, which will store up to 9 million tons of carbon dioxide when its up and running in 2027.
Kuwait Reshuffles Oil & Gas Sector Leadership
Kuwait Petroleum Corporation (KPC) CEO Sheikh Nawaf Saud Al Sabah has reshuffled the leadership of the state umbrella firm’s subsidiaries. The move comes six months after his appointment to the role and just weeks after a new oil minister was appointed. Back in February 2021, some of the subsidiaries were given the same CEOs in order to facilitate their subsequent merging, but now those plans have been ditched. Kuwait’s two domestic upstream firms, KOC and KGOC once again have separate CEOs, as do Kuwait’s two domestic downstream firms, KNPC and Kipic.
Saudi Aramco partners with energy ministry to establish carbon capture and storage hub
Saudi Arabian Oil Co., one of the biggest oil producers in the world, has joined hands with the Kingdom’s energy ministry to establish a carbon capture and storage hub as Saudi Arabia steadily progresses to achieve its net-zero ambition by 2060. During the speech, Saudi Aramco CEO Amin Nasser said that the new CCS hub would be located on the east coast of Saudi Arabia in Jubail. According to Nasser, the hub will have a storage capacity of up to 9 million tons of carbon dioxide a year by 2027.
Saudi Arabia announces 13 new renewables projects in latest move towards net-zero
Thirteen new renewables projects are currently under development, the Kingdom’s Minister of Energy Prince Abdulaziz bin Salman announced as the country pushes towards its goal of achieving net-zero by 2060. The projects have the capacity of 11.3 Gigawatts and the ability to reduce approximately 20 million tons of carbon emissions per year. The past year alone, Saudi Arabia has managed to reduce emissions by about one million tons.
Saudi Aramco, Energy ministry sign agreement to establish a carbon capture and storage hub
Saudi Aramco signed a joint development agreement in partnership with Saudi Arabia’s Energy ministry to establish a carbon capture and storage hub which will potentially be able to safely store up to 9 million tonnes of carbon dioxide a year by 2027. This is a major step in the development of safer fuel alternatives.
UAE’s Biggest Clean-Energy Firm to Look at Deals in US, Europe
In an effort to achieve a net zero carbon production, the UAE’s largest renewable energy company will make acquisitions and sell bonds as part of a plan to more than double its operations. Masdar, an Emirati company, plans to acquire foreign power firms in an ambition to reach 100GW of production, versus its current rate at 20GW. Additionally, the company has incorporated the development of nuclear, hydrogen, and other eco friendly energy sources in their expansion plans.
Bahrain announces two new natural gas discoveries
Bahrain has announced two natural gas discoveries in the Al-Joubah and Al-Jawf reservoirs. However, officials have not disclosed the potential of these reserves to the public. It is likely that this discovery will benefit the nation as they deliberate a new plan within the next six months.
COP27: UAE and Egypt agree to build one of world’s biggest wind farms
An agreement between the Presidents of the UAE and Egypt will see the development of one of the world’s largest wind farms. This is a venture initiated by UAE energy company Masdar, and is projected to produce 47,790 GWh of clean energy annually and offset 23.8 million tonnes of carbon dioxide emissions, equivalent to around 9% of Egypt’s current CO2 emissions. The project further cements the UAE as a leader in reducing carbon emissions, and progresses Egypt’s goal of net-zero carbon emissions.
Saudi Arabia Signs Energy MoUs with Egypt, Oman
Saudi Arabia has signed two MoUs with Egypt and Oman in an effort to expand operations involving renewable energy, transport of clean hydrogen transport, and electrical interconnection. The agreement with Egypt also encourages digital transformation, innovation, cyber-security, and artificial intelligence. The Saudi minister of Energy and his Omani counterpart, Minister of Energy and Minerals Salem bin Nasser Al-Awfi, signed an MoU for energy cooperation, which includes strengthening cooperation in renewable energy, electricity, energy efficiency and hydrogen, applying the circular carbon economy approach to reduce the effects of climate change, and developing standards to support the use of sustainable materials.
UAE’s Biggest Clean-Energy Firm to Look at Deals in US, Europe
In an effort to achieve a net zero carbon production, the UAE’s largest renewable energy company will make acquisitions and sell bonds as part of a plan to more than double its operations. Masdar, an Emirati company, plans to acquire foreign power firms in an ambition to reach 100GW of production, versus its current rate at 20GW. Additionally, the company has incorporated the development of nuclear, hydrogen, and other eco friendly energy sources in their expansion plans.
Kuwait says to become carbon neutral in oil and gas by 2050
Kuwait is committed to becoming carbon neutral in the oil and gas sector by 2050 and in the whole country a decade after that. This is an important step following announcements made by UAE, Saudi Arabia, and other GCC states who have adopted a net-zero carbon production plan for the future. This announcement came as a result of the COP27 climate summit in Egypt which experts hope will create a trend of carbon-conscious operations.
Kuwait appoints new CEOs for state oil companies
Ahmed Jaber al-Aydan was appointed as CEO of Kuwait Oil Company, and Wadha al-Khateeb as CEO of Kuwait National Petroleum Company. New leaders were also chosen for Kuwait Integrated Petroleum Industries Company (KIPIC) and other state companies in the sector.
Saudi energy ministry approves feedstock allocation for Alujain’s $2bln petrochemical project
Saudi industrial group Alujain Corporation announced on Sunday that it has received the Ministry of Energy’s nod on feedstock allocation for establishing a new petrochemicals project in Yanbu Industrial City at a total cost of 7.5 billion Saudi riyals ($2 billion). The project, upon completion, will produce more than 600,000 tonnes/year of polypropylene, polypropylene compounds, and specialized construction materials from polypropylene derivatives, in addition to about 25,000 tonnes/year of saleable hydrogen.
ADNOC, Baker Hughes Sign Agreement To Explore New Technology for a Clean Energy Future
Baker Hughes, an energy technology company, and the Abu Dhabi National Oil Company (ADNOC) signed a strategic technology collaboration agreement during ADIPEC 2022 to explore collaboration opportunities around research and development (R&D) for technologies that can help drive a sustainable energy future in the UAE. “ADNOC is accelerating the development and deployment of advanced technologies to provide smarter, lower carbon, energy to the world. Together with Baker Hughes, we will focus on finding innovations that help the UAE achieve its Net-Zero by 2050 strategic initiative, while also generating In-County Value,” said Sophie Hildebrand, ADNOC Group Chief Technology Officer.
Moody’s upgrades Qatar outlook on higher energy prices
Ratings agency Moody’s has upgraded Qatar’s credit outlook to positive from stable, citing higher energy prices expected to bring significant budget surpluses that will help the Gulf state to manage its medium-term debt profile. “The change of outlook to positive reflects the prospect that the improvement in Qatar’s debt metrics, observed in 2021-22 as a result of elevated energy prices, can be sustained in the medium term even if oil and natural gas prices moderate over the next few years,” Moody’s said. High energy prices have so far translated into a budget surplus of almost 50 billion Qatari riyals ($13.7 billion), the Emir Sheikh Tamim bin Hamad al-Thani.
Kuwait’s Kufpec offers LNG cargo from Australia’s Wheatstone plant
Kuwait Foreign Petroleum Exploration Co (KUFPEC) has issued a tender offering a liquefied natural gas (LNG) cargo for loading in Australia in December. The cargo is offered on a free-on-board (FOB) basis from the Wheatstone plant in Australia for Dec. 19 to 24 loading. KUFPEC, the foreign energy exploration arm of Kuwait, is a stakeholder in the Chevron-operated Wheatstone LNG project.
Iran To Sign $40 Billion Deal With Russian Gas Giant
A senior Iranian diplomat was quoted saying that Iran expects to sign an energy agreement with Russian gas giant Gazprom worth around $40 billion. “We have concluded an agreement worth about $6.5 billion with Gazprom. We hope that the remaining agreements totalling to $40 billion will be signed (in December). The negotiations are currently ongoing,” said Mahdi Safari, Iranian Deputy Foreign Minister for Economic Diplomacy. Iran’s Petroleum Minister Javad Owji said at the bilateral forum that the public and private sectors in both countries are looking to “neutralize the sanctions.”
US, UAE sign deal on $100 bil global investment in clean energy to 2035
The US and the UAE have signed an agreement that will help galvanize $100 billion in investments to develop 100 GW of clean energy globally by 2035, as the two oil producers seek to boost their renewables portfolios amid net zero emissions targets. “The US-UAE Partnership for Accelerating Clean Energy (PACE) is set to catalyze $100 billion in financing, investment, and other support and to deploy globally 100 gigawatts of clean energy by 2035 to advance the energy transition and maximize climate benefits,” the White House said in a Nov. 1 statement. The White House reflected on the need to bridge the gap between developed and developing countries in the investment in and deployment of clean energy, stating that the two countries intend to work together to prioritize commercial projects in developing and low-income countries as well as provide them technical and financial assistance.”
Opec says $12.1 trillion investments required for oil industry until 2045
Opec has called for $12.1 trillion worth of investments in the oil industry over the next two decades to meet the rising demand for hydrocarbons, at least until the middle of the century. “If $12.1 trillion investment isn’t realised (by 2045), consequences could be severe” Opec secretary general Haitham Al Ghais told the ADIPEC conference, adding that the crisis could be more severe than that being witnessed today. Opec believes that global oil demand could rise from almost 97 million barrels per day in 2021 to around 110 million bpd in 2045.
OPEC Sec Gen: Oil investment lag sowing seeds for future energy crises
OPEC Secretary General Haitham Al Ghais said that he world must act swiftly to invest in oil to prevent future energy emergencies as global demand for the hydrocarbon grows in the long term. “If we don’t get it right this time we are sowing the seeds for future energy crises – not just one, but multiple.” He added that “We are already hearing messages coming out of all the industry leaders and policymakers about the importance of investing in the oil sector. They realize now that the lack of investments over the past few years is a big part of why we are in the situation we are in today.” He said that OPEC’s key message is that the world will continue to require oil in the long term.
OPEC Says World Can’t Live Without Oil, Demand Will Keep Rising
OPEC held firm to projections that global oil demand will keep growing for another decade, and said it would be dangerous to abandon fossil fuels. It said in its annual World Oil Outlook that oil consumption will climb by 13% to reach 109.5 million barrels a day in 2035 and hold around this level for another decade. OPEC Secretary-General Haitham Al Ghais reiterated the warning given at last year’s climate talks that a complete break with hydrocarbons is “potentially dangerous to a world that will continue to be thirsty for all energy sources.”
Saudi Arabia, UAE defend oil production cuts as US warns of ‘economic uncertainty
Saudi Arabia and the United Arab Emirates defended the decision by OPEC and its allies to cut oil production, even as an American envoy warned of “economic uncertainty” ahead for the world. Emirati Energy Minister Suhail al-Mazrouei said that OPEC and its allies are “only a phone call away if the requirements are there” to raise production and that “the United Arab Emirates, as well as [their] fellow colleagues in OPEC+ are keen on supplying the world with the requirement it needs,” although “at the same time, we’re not the only producers in the world.”
Saudi Aramco launches $1.5 billion fund, says energy transition plan flawed
Saudi Aramco launched a $1.5 billion fund to support an inclusive global energy transition, as the switch from hydrocarbons could take decades, Saudis announced. These investments take place amid criticisms from SaudI Arabia and OPEC+ criticisms that there is an overall underinvestment in energy transitions. As of today, the current transition plan is flawed, and today alternatives are not ready to shoulder a heavy load of the growing energy demand and therefore we need to work in parallel until alternatives are ready, ARAMCO CEO claims. This new sustainability investment will target specific ventures globally, such as carbon capture and storage, greenhouse gas emissions, as well as hydrogen, ammonia and synthetic fuels. OPEC+ countries will continue to invest in these sectors, and hope that this sparks involvement from fuel-demanding countries worldwide.
India’s Russian oil binge sends Middle East imports to 19-month-low
India has been receiving Russian oil in larger quantities than from Middle East imports, setting the record for a 19 month-low. While India’s overall oil imports in September fell to a 14-month low of 3.91 million barrels per day (bpd), their Middle East imports specifically decreased to 2.2 million bpd. This is in contrast to their Russian imports surged to an all-time high of 23% from 19%, reaching about 896,000 bpd. These imports are amid sanctions placed on India by the United States. One can interpret this cooperation as a statement by India, that they are not bound to any specific sources for their fuel.
OMV and ADNOC sign MoU in presence of UAE President
OMV and ADNOC have signed agreements to explore new partnerships in deliveries for LNG, the signing taking place in front of UAE and Austrian officials. OMV is seeking to provide Austria with more energy security amid recent conflicts. While the two companies work together on many other exploration and investment projects, this deal will further cement ties between Austria and ADNOC.
Shell sees ‘robust’ profits
Shell disclosed on Thursday that the income attributable to its shareholders in the third quarter of 2022 totalled $6.7 billion compared to $18 billion in the second quarter of 2022. The decrease in income is attributable to lower LNG trading and optimisation results, lower chemicals and refining margins, as well as higher underlying operating expenses, partly offset by increased volumes from higher-value barrels in deep water. We can also infer that profits and production decreased in the third quarter due to the derecognition of Salym in Russia and unscheduled deferments.
G7 price caps add new uncertainties to market: Aramco CEO
G7 and the EU have agreed upon Russian export restrictions and price caps which Aramco CEO claims will add more uncertainties to the market. These price caps are placed on Russian oil barrels at a yet to be determined price, as a way of minimizing the profits Russia can draw from crude sales, and which help fund the war in Ukraine. However, this will cause an issue for European energy reserves as they have to find new sources for oil imports and increase tensions with Russia. These sanctions will create more energy instability as the demand for crude rises.
Shell unveils £8.1bn profits in another monster quarter of trading
Shell has reported third quarter profits of £8.1bn ($9.45bn) with cash flow from operations clocking in at £10.76bn ($12.5bn) for the three months of summer trading. These profits combined with record breaking second quarter profits will result in higher dividends per share (about 15%) for shareholders. However, shareholders must take into account that the company’s net-debt increased to 41.58bn ($48.3 billion) in the third quarter, however this includes the absorption of the Sprng energy debt – after it acquired the Indian energy firm earlier this year.
Saudi Arabia in talks with European countries to boost oil exports
Saudi Arabia is in talks with European states over oil and energy requirements, because Europe is experiencing an energy crisis. Previously, Russia was the biggest exporter of LNG to the region but European and American sanctions have limited their exports. Instead, the EU looked to Saudi Arabia who exported 950,000 barrels per day of crude to Europe last month, compared to 490,000 bpd in the same period a year earlier. These talks will likely lead to more EU-Saudi ventures as they look to meet the rise in demand for oil.
Oil prices rise on weaker dollar, supply worries
Oil prices rose this Tuesday, despite having fallen more than $1 per barrel. This is because the U.S. dollar index fell during afternoon trade, making greenback-denominated oil less expensive for other currency holders and helping to push prices higher. The IEA executive officer and Saudi energy minister warned that while the energy crisis is currently manageable, countries must brace for a severe shortage of crude oil in 2023.
China Imports Record Levels Of LNG And Coking Coal From Russia
Russian LNG imports to China rose by one-third in September compared to the same period in 2021. Their overall imports, however, decreased by 12% in the last month, which is in line with a forecasted decrease in LNG imports for this year. Chinese imports of Russian coking coal, used in steelmaking, nearly tripled to 2.5 million tons last month from 900,000 tons in September last year. Combined imports of thermal coal and coking coal from Russia jumped by 20% year over year in Sept to nearly 7 million tons. We can see that China is taking advantage of Russian sanctions and price caps and are joined by India, who have also increased Russian imports.
IEA says developing nations are the No. 1 casualty of the energy crisis
The IEA executive director has warned that developing countries are the most vulnerable to rising energy prices. He further explains that while the United States is the most vocal about production cuts, it is countries in Africa, South America, and Asia who will take the most damage because of higher import prices and unstable currencies. The IMF has forecasted that the higher oil prices will add to a number of economic difficulties that developing countries already face. The IEA director goes further to claim that we are experiencing the first global energy crisis in light of ongoing conflicts and economic standoffs.
Wave of LNG tankers is overwhelming Europe in energy crisis and hitting natural gas prices
As a result of sanctions that are placed on Russian exports, Europe has relied on American LNG imports. However, European ports have been overwhelmed by the influx of shipments as they are reaching maximum capacity. There are 641 LNG vessels operating in the world and 60 of them are waiting to discharge their fuel in Europe. These LNG tankers have been idling or slowly sailing around northwest Europe, the Mediterranean, and the Iberian Peninsula. The Europeans have failed to readjust their gas capacity, rendering them unable to use the gas they are receiving. As a result, European gas shortages continue to rise and have reached 93%. Additionally, prices will continue to rise on fuel companies.
QatarEnergy announces Shell as second partner in NFS project
Shell has joined Qatar in its North Field expansion which will have two LNG mega-trains with a combined capacity of 16 million tonnes per annum (mtpa). Once completed, this would bring Qatar’s total LNG production capacity to 126 mtpa. These new LNG volumes are being brought to the market at an essential time as the world is experiencing its first energy crisis. Shell’s stake in this new venture will amount to 9.375% out of a total 25% for international companies. The project will begin production in 2026. In total, it will add more than 48 MTPA to the world’s LNG supply by 2027. In an effort to reduce carbon emissions, power for the project will come from the national grid The project will also include carbon capture and sequestration.
Qatar energy chief says oil and gas trade should be depoliticized
Qatar Energies CEO has stated that energy trade should be depoliticized and handled in a purely economic context. The forecasted sanctions and price caps on Russia crude could potentially destabilize energy trade worldwide. G7 countries have announced that they are going to cap Russian oil prices by December fifth, which presents a concern for energy politics. Additionally, the CEO has condemned any attacks on energy bases and facilities in light of recent Russian attacks on Ukraines thermal energy plant. These statements make it clear that Qatar is in favor of peace in the region to promote trade and minimize risks to the energy industry, on which they are heavily reliant.
Shell selected as partner in the North Field South LNG project
Shell has been selected to participate in the next wave of Qatar’s LNG expansions – the North Field South project (NFS). Shell will obtain a 9.375% participating interest in the 16 Mtpa NFS project – out of a total 25% interest available for international partners. QatarEnergy will hold the remaining 75%. At the signing ceremony, the CEO of Shell, stated that LNG has a key role in ensuring energy system reliability and that their investments with QatarEnergy will support the energy transition and energy security, two of the most fundamental challenges the world faces today.
Iran’s Atomic Energy Agency Says Its E-Mail Server Was Hacked
Iran’s Atomic Energy Organization has said that an e-mail server belonging to one of its subsidiaries was hacked from a foreign country. The state media report came a day after an Iranian hacking group, Black Reward, claimed on social media that it had hacked the internal e-mail system of Iran’s Nuclear Power Production and Development Company. The Atomic Energy Organization stated that the move was an attempt at gaining public attention whilst state media claimed that the hacked content contained only routine exchanges and technical messages.
Oil climbs on expectations of tight supply as Russia sanctions loom
Oil rose in early Asian trade as expectations of tighter supplies globally ahead of European Union sanctions on Russian oil underpinned prices. Brent crude futures climbed 54 cents, or 0.6%, to $94.04 a barrel by 0125 GMT while U.S. West Texas Intermediate crude was at $85.56 a barrel, up 51 cents, or 0.6%. In spite of Xi Jinping securing a third leadership term, analysts are not expecting any significant change in policy direction, including the zero-COVID strategy. U.S. energy firms added oil and natural gas rigs for the second week in a row as relatively high oil prices encourage firms to drill more.
Exxon Mobil to unveil monster profits powered by oil and gas boom
Exxon Mobil is expected to unveil another quarter of monster profits powered by high natural gas prices next week. It is currently on track for a record annual profit of $54.8bn this year, which would be more than its cumulative earnings since 2018. The company’s shares have surged to record highs this week, and are up more than 70 per cent to date this year – vastly outperforming market gains from rivals Shell, BP and Chevron. The share rise has given the fossil fuel producer a market value of $438bn, making it the 10th highest valued public company in the world.
Mozambique’s first LNG exports to Europe seen by early November
According to petroleum regulator INP, Mozambique expects to ship its first LNG exports to Europe from the Eni-operated Coral Sul floating plant later this month or early November, in a supply boost for the energy-starved region. BP’s LNG tanker has already arrived offshore northern Mozambique with all of Coral Sul’s annual gas output of 3.4 million tonnes contracted to BP for 20 years on a free-on-board basis. A sustained violent insurgency inland with links to Islamic State has scared off investors, as French oil major TotalEnergies last year declared force majeure on its $20 billion LNG project amid rising attacks in the north of Cabo Delgado province. However, according to INP, they are satisfied with the improvement of stability in Cabo Delgado Province and are expecting Total to return by next year.”
U.S. LNG Production Declines Despite Robust Demand
Natural gas flows to liquefaction plants along the Gulf Coast of the USA have been on the decline since the start of October, reflecting a decline in LNG production prompted by maintenance and outages. The average daily volume of gas flows from U.S. fields to the liquefaction trains in the South stood at 11.1 billion cubic feet which is down from 11.5 billion cubic feet for September and further down from the record 12.9 billion cubic feet daily booked in March as demand for U.S. LNG from Europe surged.
OPEC+ says growing risk of global recession justifies oil cuts
OPEC+ defended its oil-production cuts, saying they were justified by the growing risk of a global recession. Oil ministers from Congo and Equatorial Guinea reiterated this defense, while OPEC’s top official said the group had little choice but to take preemptive action. In the weeks since the meeting, Saudi Arabia and many other OPEC+ members have repeatedly said the motivation for the cuts was purely economic.
QatarEnergy expanding in LNG, won’t divert supplies to Europe
According to CEO Saad al-Kaabi, QatarEnergy is working to expand its gas production and trading operations as global demand surges. He said it will not divert LNG contracted with Asian buyers to Europe this winter. Qatar is already among the world’s top LNG exporters and several European states, facing a spike in energy prices and a fuel supply crunch, have been in talks with the Gulf Arab state to reduce their reliance on Russian energy supplies.
China To Stop Reselling LNG To Europe
Chinese state-owned energy giants have been recently told by authorities to stop reselling LNG cargoes to gas-starved Europe, in what could be a blow to the European hopes of continuous high inflows of LNG as the winter approaches. In recent months, Chinese LNG importers have been selling their excess inventories to Europe and reaping big profits from the sales because of lackluster demand in China due to incessant snap city-wide Covid lockdowns and a slowdown in economic growth. Now, the National Development and Reform Commission (NDRC), China’s top planning body, has told the country’s state-held LNG importers that they should stop reselling LNG cargoes and keep them to ensure Chinese gas supply this winter.
QatarEnergy to take full control of solar power firm Siraj Energy
QatarEnergy has agreed to acquire the remaining 49% stake in Siraj Energy in a deal that will boost its total solar power capacity under direct control to 1.675 GW. Set up in 2017, Siraj Energy is active in financing, building, operating and maintaining solar power facilities across Qatar. According to Qatar’s Minister of State for Energy Affairs and CEO of QatarEnergy, the agreed buyout is an “important step for QatarEnergy in consolidating its position in the renewables business and in delivering its Sustainability Strategy mid-term target of generating 5 gigawatts of solar power by 2035.”
Kuwait appoints new cabinet with Bader al Mulla as oil minister
Kuwait appointed Bader al Mulla as its new oil minister in a new cabinet. Abdul Wahab al-Rasheed is also appointed finance minister and Salem Al-Sabah as foreign minister. Earlier this month, the crown prince, who has taken over most of the emir’s duties, appointed Sheikh Ahmad as prime minister in July after some opposition MPs staged an open-ended sit-in to press for a new premier.
Opec+ decisions are crucial to market stability, say Omani and Bahraini oil ministries
Oman’s energy minister has explained that Opec+ decisions are based on purely economic considerations and realities of supply and demand in the market. Additionally, Bahrain’s Minister of Oil and Environment, Special Envoy for Climate Affairs, Mohamed bin Mubarak bin Dainah said the decision comes after consensus among all members states in the alliance. These statements are in an effort to clarify that production cuts were not enforced because of geopolitical ties, as suggested by the United States, but were purely done for economic stability.
Minister Al Kaabi meets US Energy Secretary
Qatari minister of energy affairs met with the United States secretary of energy affairs Jennifer M. Granholm. The meeting discussed bilateral relations in the field of energy between Qatar and the US and means to enhance them.
Saudi king Salman says kingdom seeks stability and balance in oil markets
Saudi King Salman said the kingdom was working hard to support stability and balance in oil markets, including by establishing and maintaining the agreement of the OPEC+ alliance. He added that his country was a mediator of peace and highlighted the crown prince’s initiative to release POWs from Russia last month. He also called on Iran to fulfill its nuclear commitments and cooperate with the U.N. nuclear agency.
Saudi Arabia, South Africa sign 11 deals to promote investment
Saudi Arabia and South Africa have agreed upon 11 deals to expand their investments in fields of energy, water, green hydrogen, waste diversion, logistics, and aerial survey services. Saudi Arabia’s investment minister praised South Africa and drew comparisons between the two countries to establish a similarity of interests among two “major economic powers” in their respective regions. With the world undergoing constant geopolitical and economic turmoil, strengthening this relationship will provide opportunities for growth in two countries who are rapidly expanding their operations.
QatarEnergy acquires solar power Siraj Energy stake
QatarEnergy, will acquire a 49% stake in Qatar Electricity & Water Co.’s state-backed solar power entity Siraj Energy. This transaction is set to result in Siraj Energy being absorbed within QatarEnergy Renewable Solutions, the state energy firm’s renewable investments arm. They awarded the engineering, procurement and construction contract to South Korea’s Samsung C&T for two solar PV plants with a total combined capacity of 875MW, in August. Expected to complete by the end of 2024, the electricity generated by the two plants will be partly used for QatarEnergy’s liquefied natural gas production expansion. The 2.3 billion Qatari riyal ($632m) contract aligns with Qatar’s goal to generate up to 5,000MW of solar power by 2035.
Saudi Arabia issues 52 new mining licenses in August
Saudi Arabia’s Ministry of Industry and Mineral Resources issued 52 new mining licenses in August 2022. In line with Saudi Vision 2030 and the National Industrial Development and Logistics Program, the ministry seeks to protect the mining sector and maximize its value. It aims to transform the mining sector into the third pillar of the national industry with the mineral wealth in the Kingdom being valued at around SR5 trillion ($1.3 trillion).
After OPEC+ Cuts Oil Supplies, Nearly Half of U.S. Voters Support ‘NOPEC’ Bill
Lawmakers are calling on the Biden administration to put pressure on Saudi Arabia after the de facto leader of the OPEC+ slashed crude production by 2 million barrels per day for November, further straining global crude supplies to boost a weakened market. A new Morning Consult/Politico survey shows that just under half of voters would support the No Oil Producing and Exporting Cartels Act, known as NOPEC, which would allow the Justice Department to sue OPEC+ members and companies under antitrust violations. Facing higher gasoline prices, Democratic lawmakers have also offered myriad legislative options for handling Saudi Arabia’s defiance, including a potential pause or termination in arm sales to the kingdom and the removal of military support from Saudi Arabia and the UAE.
Rockets target Khor Mor gas field in Iraq’s Kurdistan, operations not affected
At least eight Katyusha rockets were fired at the Khor Mor gas field in Iraq’s Kurdistan region, but according to the Head of Foreign Media Affairs for the Kurdistan regional government, the attack did not result in casualties or affect the operations. Khor Mor is in the Sulaimaniya region of northern Iraq and was attacked previously. While no group has claimed responsibility for the previous series of attacks on Khor Mor, Kurdish officials said publicly they believed they were carried out by Iranian-backed militias.
Dubai’s Yellow Door Energy raises $400m in new funding as it plans expansion
Renewable energy developer Yellow Door Energy has raised $400 million in a new funding round led by British private equity company Actis, the Dubai company’s largest stakeholder, as it plans expansion into new markets. The World Bank’s International Finance Corporation (IFC), Japan’s Mitsui, and Saudi Arabia’s Arab Petroleum Investments Corporation (Apicorp), also increased their shareholding in Yellow Door Energy, which continues to develop sustainable energy projects in the Middle East and Africa.
Putin says Russia not working ‘against anyone’ in energy markets
Vladimir Putin said that Russia was not working against anyone on energy markets and was seeking a balance between oil supply and demand, a week after Washington criticized a decision by OPEC+ to steeply cut oil production. Speaking with President Sheikh Mohammed bin Zayed al-Nahyan of the UAE, Putin said Russia aimed to create stability on energy markets and ensure that supply and consumption were balanced. He stated that they are actively working within the framework of OPEC+.
Arabian Drilling set to raise over $700 million in IPO
Arabian Drilling Company, said it will price its initial public offering at 100 riyals a share and is set to raise 2.67 billion riyals ($710.58 million). The final price is at the top end of a price range announced last month, which would value it at 8.9 billion riyals. The deal is the latest in a string of IPOs from the Gulf that has continued this year in defiance of global market trends. The retail subscription period will start on Oct. 18 and end the following day. The final allocation of shares will be announced on Oct. 25 and the first day of trading is to be determined.
Iran racing to expand enrichment at underground plant, confidential IAEA report shows
According to a confidential UN nuclear watchdog report, Iran is rapidly expanding its ability to enrich uranium with advanced centrifuges at its underground plant at Natanz and now intends to go further than previously planned. While indirect talks between Iran and the United States on reviving the 2015 Iran nuclear deal have stalled, Iran has bought an ever larger number of advanced centrifuges that the deal bans it from using to produce enriched uranium. Iran has also quickly completed the installation of seven cascades that were either not finished or at a very early stage of installation on Aug. 31.
Saudi Aramco to keep full oil supplies to North Asia in Nov despite OPEC+ cuts
According to sources, Saudi Aramco has told at least five customers in North Asia they will receive full contract volumes of crude oil in November. The full supply allocation comes despite a decision by OPEC+, to lower their output target by 2 million barrels per day.
Iraq and Jordan launch power grid connection project
The Iraqi prime minister and his Jordanian counterpart have established the foundation for an electricity grid interconnection project aimed at tackling Iraq’s chronic power shortage. The project is part of a larger plan to establish a pan-Arab power market by connecting the Gulf Cooperation Council, comprising Bahrain, the UAE, Kuwait, Saudi Arabia, Qatar and Oman, with Egypt, Jordan and Iraq. The first phase was scheduled to be completed by the end of 2023 and would supply Iraq with 400 megawatts. This will see Iraq become a transit point for Gulf energy supplies to Europe, within the next two years. In addition, this project will quell the protests that have risen as a result of a lack of power and rolling blackouts, which have been an issue since the US invasion in 2003.
Qatar to inaugurate 800MW solar farm
Qatar is preparing to inaugurate its 800 megawatt solar photovoltaic power plant in Al-Kharsaah in mid-October. QatarEnergy CEO has announced that the project is ready for operation and will be one of the world’s largest solar power plants. It is projected to supply about 10% of the country’s energy, giving substantial relief to gas producers. Qatar’s solar power goal is to reach 5GW by 2035, and are expected to sign project deals with three partners to further develop the north field.
OPEC+ nations agree to cut oil production to boost sliding prices
OPEC+ agreed to cut its collective output limit by 2 million barrels a day in an effort to stabilize the sliding oil prices. This is the biggest cut in production since 2020, but will have a smaller effect on global supplies than the projections suggest. OPEC wants prices to be at $90 per barrel, and Many member countries have based their 2023 budgets on that price, and “it would destabilize some economies” if that weren’t to happen. The US and Biden administration are not in agreement with this decision and plan to release an additional 10 million barrels of oil from the Strategic Petroleum Reserve in November, and to protect American consumers and energy security.
UAE Says Oil Major Shell Is Helping Plan Its Net-Zero Push
UAE and Shell have agreed upon a plan that will reach net-zero emissions by 2050. This is an important step to limiting emissions in the Gulf region and shift towards cleaner energy solutions. UAE is set to host next year’s COP28 climate summit, where it has pledged to make oil majors feel welcome. Further cooperation with major oil companies will advance the clean energy dialogue rather than antagonizing them. The oil producers felt unwanted at the last summit, but, UAE hopes to establish a productive dialogue.
Multiply Group acquires 80% of International Energy Holding
Abu Dhabi-based holding company Multiply Group has acquired 80 percent of International Energy Holding LLC. Through this new venture, Multiply Group is planning to continue expansion and investments in energy and utilities. IEH owns a PV power plant with a capacity of 1,347.734 megawatt peak/1,000 megawatt electric in Konya’s Karapinar region. This facility alone will meet the annual electrical needs of approximately 2 million people when it is completed in 2023. Additionally, IEH also owns wind farms in Turkey which they plan on expanding, and secures IEH position as a leading clean and renewable energy company.
Saudi Cabinet signs off agreement with UK over energy expertise
Saudi Arabia and the UK have signed an agreement to share technical knowledge and expertise on energy. Such an agreement is a positive step in western-Saudi cooperation and will accelerate advancements in the energy sector.
Houthis Warn Oil Firms To Leave Saudi Arabia And The UAE
Yemen’s Houthis have warned oil companies operating in Saudi Arabia and the UAE to flee as the warring sides in the Yemen conflict failed to reach an agreement to extend the six-month truce. The constant occurrence of these threats have prompted Saudi and UAE retaliation in the region, creating a conflict of multiple interests. Houthi rebels accuse the Yemen government of siphoning $13 billion of the country’s oil funds in the last 5 years to other states and that another $180 million in looted oil left the country on a Greek oil tanker in August. The Yemen government is trying to maintain control of their assets while the UN Special Envoy calls on the parties to maintain calm and refrain from provocations or any actions that could lead to an escalation of violence.
Refiners Expect Saudi Arabia To Raise Oil Prices For Asia In November
Saudi Arabia may raise the prices for its crude export grades to Asia next month in response to signs of recovering crude demand in one of its biggest markets and the new batch of fuel export quotas issued by Beijing. As a result of this higher demand, Saudi Arabia’s official selling prices could rise by $0.25 per barrel for the flagship Arab Light crude. The new quotas suggest higher near-term demand for crude but, on the other, refining margins have sunk after the announcement of the new quotas in anticipation of a flood of new fuel supply. Experts believe that this will lead to a moderate increase in Saudi prices.
Qatar Investment Authority invests $2.43bn to accelerate RWE’s green energy strategy
The Qatar Investment Authority has agreed to invest $2.43 billion in Germany’s largest power producer RWE AG, to help it buy US firm Con Edison Inc’s Clean Energy Businesses subsidiary for $6.8 billion. This venture means the German company is expected to become one of the major players in the US renewable energy sector. The transaction will nearly double RWE’s US renewables portfolio to more than 7 gigawatts and grow its regional project pipeline by 7 GW to more than 24 GW. Following the takeover, solar will account for 40 percent of RWE‘s US portfolio, up from 3 percent now. This is a great step in the renewable energy market and Qatar’s involvement cements their support for renewable energy initiatives.
US Sanctions Indian Company for Iran Oil Deal
The United States has imposed sanctions on an Indian company for buying oil and petrochemical products from Iran. This is the first time and Indian entity has been directly sanctioned by the US and is a statement about relationships going forward. These sanctions targeted Iranian brokers in India, Hong Kong, and UAE. India has made it clear that they are allowed to buy oil from whomever they decide to purchase oil from, regardless of US interests.
Qatar joins IAEA board of governors
Qatar has been elected for membership of the board of governors of the International Atomic Energy Agency for 2022-2024. This will give Qatar oversight power in policy-making bodies, reviews and approves budgeting, operational programs, safeguards agreements and safety standards. This inauguration is in lieu of Qatar’s recent approach to the peaceful use of nuclear power and the responsible development of a nuclear program. Qatar is committed to supporting the IAEA’s activities promoting the peaceful use of nuclear power, preventing the spread of nuclear weapons, and facilitating member states’ access to peaceful nuclear technology. This will further emphasize the use of soft power and potentially lead to a peaceful direction when discussing nuclear programs.
Abu Dhabi Power Transmission Project signs $3.2b financing
Abu Dhabi Offshore Power Transmission Company has secured more than $3.2 billion in financing with export credit agencies and banks for an offshore electricity transmission project. The financing will be used to connect two offshore ADNOC facilities to Abu Dhabi’s onshore grid. Japan Bank for International Cooperation (JBIC) provided $1.201 billion for the direct current transmission project. The remaining $2 billion was financed by Export-Import Bank of Korea, Mizuho, Sumitomo Mitsui Banking Corporation , BNP Paribas Fortis and Standard Chartered. This project is in line with the JBIC’s requirement to cut carbon emissions to net zero by 2050. This will establish greater cooperation between UAE and Asian states, as well as reduce emissions from oil production.
Kuwait in process of purchasing new gas-fired power plants
Saudi Arabia and Kuwait are in the process of purchasing new gas-fired power plants, because the importance of renewable energy sources will increase over time although fossil fuels – mainly gas – remain the dominant energy source generating power in the Gulf countries, reports Al-Anba daily. This new venture will maintain the strength of Saudi Arabia and Kuwait in the market while countries like Dubai and Oman, which suffer from a shortage of gas supplies, have already announced that they will not construct new gas-fired power plants.
Germany inks LNG deal as chancellor visits Gulf to secure energy
German utility RWE has signed a deal with Abu Dhabi National Oil Company (ADNOC) to deliver liquefied natural gas to Europe’s largest economy by the end of December. This is an attempt by Germany to lessen their dependence on Russian gas and deepen their ties with the Gulf states. The cargo to be delivered this year by ADNOC will be for 137,000 cubic metres of LNG and will be the first LNG to be supplied to the German gas market via the floating LNG import terminal at Brunsbüttel near Hamburg. This venture marks the shift of European dependence on Russian gas to new partnerships with Gulf states.
ADNOC, TAQA close $3.8bn deal for clean energy, decarbonization
Abu Dhabi National Oil Co., and Abu Dhabi National Energy Co., known as TAQA, have finalized a deal for the construction of a $3.8-billion strategic project to power and decarbonize ADNOC’s offshore production operations. A Korean (KEPCO) led coalition with France and Japan will build, own, operate and transfer its high-voltage direct current sub-sea transmission network in the Middle East and North Africa region. KEPCO holds a 40 percent stake in the operation while ADNOC and TAQA each hold a 30 percent stake. After 35 years, the rights to the project will fully go to ADNOC. Construction will start this year and operations will begin in 2025. Abu Dhabi has once again demonstrated its ability to successfully structure and close a bold and progressive transaction that will help secure our low-carbon future as we intensify our efforts to decarbonize our operations.
QatarEnergy signs deal with TotalEnergies for North Field South expansion
TotalEnergies will invest around $1.5 billion in the planned expansion of Qatar’s liquefied natural gas capacity to meet the demand of “hungry European countries”. This deal comes at a time when Europe is aiming to lessen their dependence on Russian gas, in light of the conflict. As Qatar’s capacity increases, it solidifies its position as the world’s top LNG exporter. The french company TotalEnergies is eager to continue this expansion as the world’s demand for LNG increases.
GCC banks returning to pre-COVID-19 levels amid higher oil prices: S&P Global
Gulf Cooperation Council banks are returning to form after a strong first half of 2022, with earnings for most of them reaching almost pre-pandemic levels by the end of the year, according to S&P Global Ratings. This optimism is spurred by high oil prices, rising interest rates, supporting the banks’ creditworthiness, along with new public-sector-backed projects. GCC banks face a less certain 2023, with expectations of lower oil prices and risks to economic growth in the US and Europe.
Barakah Nuclear Energy Plant Unit 3 Star-up accelerates achievement of UAE net zero 2050
The Emirates Nuclear Energy Corporation (ENEC) announced that its operating and maintenance subsidiary, Nawah Energy Company (Nawah) has successfully started up Unit 3 of the Barakah Nuclear Energy Plant, located in the Al Dhafra Region of Abu Dhabi. The start-up of Unit 3 has been achieved one year after the start-up of Unit 2, with the next key milestone being the connection of Unit 3 to the national electricity grid in the coming weeks. Unit 4 is in the final stages of commissioning prior to completion of construction. When fully operational, the Plant will prevent 22.4 million tons of carbon emissions every year.
Qatar Says Talks With Germany on LNG Contracts Ongoing
Qatar and Germany are continuing to discuss supplies of natural gas, as Europe tries to reduce its dependency on Russia for the fuel. The Qatari Foreign Minister confirmed that There are negotiations taking place between Qatar Energy and commercial entities in Germany although it’s not yet clear when state-controlled Qatar Energy and German companies will sign contracts. It has been reported that the talks were complicated by Qatar wanting to sign longer-term agreements than Germany, which wants to wean itself off gas and other fossils eventually as part of the energy transition.
Saudi Aramco awards $40m steel pipes contract to homegrown producer
Aramco has awarded a deal worth $40 million to Saudi Steel Pipe Co. for the supply of oil and gas steel pipes. Saudi Steel Pipe expects to see financial impact from its new order in the second and third quarters of 2023. In May, the pipe producer signed a 10-month contract worth SR97 million with Saudi Aramco to supply the latter with oil and gas steel pipes. In June it won a contract worth SR58 million to supply Aramco with steel pipes for oil and gas extraction.
Abu Dhabi’s Mubadala Energy makes new gas discovery in Malaysia
Abu Dhabi-based Mubadala Energy has announced it has made a discovery of a new gas reservoir off the coast of Sarawak province, offshore Malaysia. The oil and gas unit of Mubadala Investment Co. said its early analysis suggests a significant gas column of over 110 meters within the pinnacle carbonate reef reservoir. Since Mubadala Energy’s entry into Malaysia in 2010, it has made six gas discoveries with a success ratio of 75 percent.
German utilities close to long-term LNG deals with Qatar
German utilities RWE and Uniper are reportedly close to striking long-term deals to buy liquefied natural gas (LNG) from Qatar’s North Field Expansion project to help replace Russian gas. Talks between Germany and Qatar have been fraught with differences over key conditions such as the length of contracts and pricing. Europe’s biggest economy aims to replace all Russian energy imports by as soon as mid-2024. While supply deals with Qatar would be positive for Germany, they would not offer an imminent solution to Berlin’s energy crisis as the vast North Field Expansion project is not expected to come online before 2026.
UAE said to accelerate plan to increase its oil production capacity
The United Arab Emirates is reportedly accelerating a plan to raise its oil production capacity as it tries to cash in on its crude reserves before the world transitions to cleaner energy. Adnoc wants to be able to produce 5mn barrels a day by 2025, sooner than a previously disclosed aim of 2030. Adnoc has asked international companies that are partners in its oilfields to raise their long-term production levels by 10% or more. If the UAE is successful in reaching the 2025 goal, it may try to boost its capacity further to 6mn barrels daily by the end of the decade.
Oman’s OQ Settles On BofA for $800 Million Gas Pipeline IPO
OQ reportedly settled on Bank Muscat and Bank of America Corp. to advise the initial public offering of its gas pipeline units as the sultanate kickstarts its privatization program. According to insiders who spoke to BNN Bloomberg anonymously, the IPO of OQ Gas Network could raise $800 million, adding that the company had communicated a possible dual listing in Saudi Arabia and Muscat.
Crude falls; Kuwait’s oil output over 2.8m bpd
Oil fell by nearly 3 percent, pressured by expectations of weaker global demand and by US dollar strength ahead of possible large increases to interest rates, although supply worries limited the decline. Brent crude for November delivery fell $2.64, or 2.89 percent, to $88.71 a barrel. WTI for October dropped 2.96, or 3.48 percent, to $82.15. Also, Kuwait Petroleum Corporation’s CEO said that the Gulf state currently produces more than 2.8 million barrels per day of oil in accordance with its OPEC quota.
Gulf’s natural gas ambitions are at a tipping point, with 30-50% production gains beckoning
Natural gas has been dubbed a ‘transition fuel’ for years, as its lower emission intensity can offer a set of benefits to a world transitioning to a net-zero world. The GCC alone accounts for roughly 60 percent of Middle East production and is forecast to increase even faster, by 31 per cent by 2030. Gas in the GCC and the East Mediterranean regions are poised to transform in the coming decade, driven by higher supply volumes, more infrastructure, and demand diversification. To boost domestic gas demand growth and diversify the economy in the most sustainable way, several countries will increase their gas production by more than 30-50 per cent over the next decade, including Qatar, Saudi Arabia, UAE, and Oman.
Kuwait’s Al-Zour refinery to begin exports in last quarter: MEED
State-owned Kuwait Integrated Petroleum Industries Co.expects to start export of refined products from its $16 billion Al-Zour refinery in late October or early November. The refinery is set to be the largest in the middle east and north African region, and will mainly produce diesel, gasoline, and kerosine. Starting international exports at the end of October means a significant raise in Kuwait’s oil revenues.
Oil demand set to stop growing in fourth quarter as slowdown bites
The International Energy Agency forecasts a grinding halt to demand for oil as the fourth quarter approaches, however, they believe that demand will steadily grow in 2023. They forecast a demand of 2.1 million bpd because of a foreseen leniency in China’s COVID lockdowns and increased air travel. While rich OECD countries accounted for most of the demand this year, the opening up of China’s economy is expected to maintain demand next year. If China is to reopen as expected, non-OECD countries are expected to cover three quarters of the gains in 2023.
Qatar Poised to Award Next LNG Prize
Qatar Energy will name its first partner for the next phase of its 48 million tons per year as part of its expansion. LNG has confirmed that at least one company has already signed a deal and others such as Total Energies, Exxon Mobil, Shell, Eni and ConocoPhillips have won stakes in the project and are all in the running for the phase two awards. Qatar also pitched the expansion to multiple Asian LNG buyers but to no avail. In light of recent Russian sanctions, this project will see Qatar grow their influence on the global markets significantly as they meet demands in Europe. In relation to carbon conscious buyers, The LNG projects will include greenhouse gas mitigation measures, including carbon capture and sequestration and methane leak reduction technology costing more than $250 million. This is a great selling point to carbon-conscious global buyers because it emphasizes the effort made to lower emissions.
Worlds largest waste-to-energy project in Dubai now 85% complete
Dubai Municipality announced that 85 percent of Dubai Waste Management Centre (DWMC), the world’s largest waste-to-energy project, has been completed. With the world’s largest operational capacity, DWMC will process 1.9 million tonnes of waste annually and convert it into renewable energy, generating enough energy to power 135,000 homes upon completion. Construction of the landmark project began in 2021 in an attempt to raise the UAE’s profile as a global model for sustainable development. The first-of-its-kind project will convert 45 per cent of the emirate’s municipal waste into renewable energy once complete, with the first phase of the world’s most efficient energy project will be ready by 2023, while the entire project is scheduled to finish by 2024.
Aramco tenders Abqaiq plant revamp project: MEED
Saudi oil giant Aramco has invited companies to submit bids for a project to revamp facilities at the Abqaiq oil processing plant. Joining ARAMCO are Nasser Saeed Al-Hajri & Contracting and Samsung EPC Co, Daelim Saudi Arabia Co, Technip Italy, Hyundai Engineering & Construction Co. and Abqaiq plant revamp, all of whom aim to optimize oil production and cut costs by developing the Abqaiq plant.
FM meets US special envoy for energy
The Deputy Prime Minister and Minister of Foreign Affairs in Qatar met Saturday with the US Special Envoy and Coordinator for International Energy Affairs. During the meeting, they reviewed bilateral cooperation relations between the two countries, especially in the field of energy security, in addition to a number of regional and international issues of common interest.
Dubai-based firm to build offshore wind farm in UK
Lamprell, an Emirati company, announced a new a wind energy project in the United Kingdom today, signed with the Moray West Offshore Wind Farm in Scotland. Per the deal worth more than $200 million, Lamprell will construct wind turbine pieces for Moray’s offshore substations. The agreement between Lamprell and Moray follows the United Kingdom launching talks with Gulf states in June toward a free trade agreement.
Gulf equities slide on volatile oil; Abu Dhabi gains
Gulf equities ended mostly lower as oil prices, a key driver for financial markets in the Middle East, fluctuated wildly as the market balanced demand worries related to looming recession risks with fears that Russia will halt all oil and gas supplies. Most GCC countries have their currencies pegged to the dollar and generally follow the Federal Reserve’s policy moves, exposing the region to a direct impact from any monetary tightening by the U.S. central bank.
Iran proclaims world needs more of its oil after OPEC+ production cut
Iran’s minister of petroleum Javad Owji said the world needed more Iranian oil, and that his country was ready to play a role in providing it away from politics. He said, “We have always declared that we are ready to contribute to our role in the supply of oil and oil products and to improve energy security in the world by avoiding politicization of oil and the political use of energy”. Analysts predict that following a deal markets could be flooded with Iranian oil, providing competition to output from Gulf States and lowering prices. Iran has an estimated 100 million barrels of crude and condensate in storage that can be released almost immediately.
Saudi Arabia cuts oil prices for Asia and Europe as demand cools
State-controlled Saudi Aramco lowered its key Arab Light grade for next month’s shipments to Asian refineries from a record to $5.85 a barrel above the Middle Eastern benchmark – a decrease of almost $4 from September. The move was largely in line with traders’ expectations and follows a 25 per cent drop in Brent crude futures in the past three months to below $95 a barrel. It also came a day after OPEC+ agreed to a surprise production cut for October. Despite signals of slowing consumption in many major economies, the global market remains tight. Many analysts forecast that demand will outstrip supply in the final quarter of this year, especially if Russia reacts to a G7-proposed cap on its oil prices by limiting exports.
Crude climbs ahead of OPEC+ meeting; Germany to use windfall tax income to reduce energy prices
Oil prices jumped over $1 a barrel, extending gains as investors eyed possible moves by OPEC+ to cut output. Germany’s government will use income from windfall taxes to lower end-consumer prices for gas, oil and coal according to German Chancellor Olaf Scholz in an attempt to mitigate the impact of rising energy prices on its population as part of a 65-billion-euro package.
Adnoc announces $548m contract for gas line at Lower Zakum field
Adnoc has announced the award of a $548 million contract to build a new main gas line at its Lower Zakum field offshore of Abu Dhabi. The award will increase Lower Zakum field’s gas production capacity from 430 million to 700 million standard cubic feet per day (MMSCFD), supporting Adnoc’s plans to enable gas self-sufficiency for the UAE and cater for increasing global energy demand. The project will be completed in 2025 and it will see the construction of a new subsea pipeline that will run 85 kilometers from Zakum West Super Complex to Das Island.
Qatar to build world’s largest ‘blue’ ammonia plant
QatarEnergy will build the world’s largest “blue” ammonia plant, which is expected to come online in the first quarter of 2026 and to produce 1.2 million tons per year. While conventional ammonia production emits CO2 if it is made with fossil fuel, during the production of blue ammonia any carbon dioxide generated is captured and stored. According to the chief executive and state minister for energy, the facility, the Ammonia-7 project, will cost $1.156 billion to build and capture and sequester 1.5 million tons of carbon dioxide a year through the manufacturing process.
OPEC oil output in August hits highest since pandemic’s early days
OPEC oil output rose in August to its highest since the early days of the pandemic in 2020 as Libyan facilities recovered from unrest and Gulf members raised output to unwind a production cut deal with allies. OPEC has pumped 29.58 million barrels per day this month, up 690,000 bpd from July and the highest since April 2020. With many producers lacking the capacity to raise output due to insufficient oilfield investment, the 10 OPEC members managed a 300,000 bpd increase from July and are still pumping far less than called for.
Adnoc inks $1.83 billion deals for drilling-related services
Adnoc announced the award of five framework agreements valued at $1.83 billion for Directional Drilling and Logging While Drilling (LWD) to support its efforts to expand production capacity of its low carbon oil and gas resources to help meet the world’s growing demand for energy. The framework agreements are the largest of such awards in the oil and gas industry. The awards cover Adnoc’s onshore and offshore fields and will run for five years with an option for a further two years. Ahmed Mohammed Belajer Al Rumaithi, Undersecretary of the Abu Dhabi Department of Energy, said: “A vibrant low carbon hydrogen production and consumption industry will place Abu Dhabi and the UAE at the global forefront of countries producing green energy.”
Oil Prices Hit $104 On New Supply Scare
Oil prices rose early on Monday, extending gains from Friday, with WTI crude up by 2.98% at $96.04 and Brent crude trading at $104, up by 2.98% on the day. Some OPEC+ producers have signaled support for new production restrictions. OPEC+ meets on September 5 at a regular meeting, but it’s not a given yet that it would discuss new production cuts. Another supply concern came from Libya as clashes between rival factions in Tripoli left at least 32 dead and dozens more wounded, stoking renewed concern of a larger military conflict that could choke Libya’s oil exports, again.
Oman signed a deal to Develop New Pipeline for Crude Oil Export
The Ministry of Energy and Minerals and Oman Tank Terminal Company (OTTCO), a subsidiary of OQ Group, signed a framework agreement for joint cooperation to develop, build and operate a new pipeline. It will transfer, store and export Oman’s crude oil from the Ras Markaz crude oil storage terminal in the Special Economic Zone at Duqm (SEZAD). The agreement enables expansion in the energy sector by meeting the expected growth in SEZAD and the energy industry in Oman. The terminal will provide crude oil handling, storage, import and export services for refineries and petrochemicals downstream projects in SEZAD.
Sinopec expects lower overall 2022 refining runs, plans first share buyback
China Petroleum and Chemical Corp, the world’s biggest oil refiner by capacity, said that annual processing volumes for 2022 will fall by 6% from a year earlier after the country’s COVID measures curtailed fuel demand at home. Vice President Ling Yiqun said that they expect China’s fuel demand to return to a reasonable level of growth in the second half. Sinopec also reported record net profit for the first half of 2022 with Chairman Ma Yongsheng stating that the company will buy back its Hong Kong and Shanghai-listed shares at an appropriate time for the first time since listing over 20 years ago. The company has made efforts to diversify crude oil sourcing, including a small share of purchases of Russian oil in the first six months. The refiner emerged as the top buyer of Russian Far East crude grade ESPO in May and June.
Saudi Arabia’s June fuel oil imports increase 60% annually as supply rises
June fuel imports for Saudi Arabia grew 60% to 307,000 barrels per day in response to high air conditioning demand. This is an annual trend that occurs because of the heat which sees the fuel production nearly double each time. Instead of importing from Russia as usual, Saudi Arabia turned to the UAE, Egypt, Estonia, and other countries as their oil source because of the ongoing conflict with Ukraine. We are seeing a shift in the oil markets where countries are opting to get their oil elsewhere, due to the sanctions and difficulties involved with the Russia-Ukraine conflict.
Oil prices rise on signals OPEC might cut output
Oil prices rose, boosted by signals from Saudi Arabia that OPEC could cut output. Trading was volatile as investors digested and ultimately shrugged off warnings from the head of the U.S. Federal Reserve about economic pain ahead. The United Arab Emirates became the latest OPEC+ member to state it is aligned with Saudi Arabia’s thinking on crude markets and Saudi Arabia flagged the possibility of production cuts to offset the return of Iranian barrels to oil markets should Tehran clinch a nuclear deal with the West.
Oil to rebound to $125 in coming months, UBS says
The price of oil per barrel is projected to reach $125 per barrel because of a decrease of daily production, which reached a multiyear low. The EU wants to eliminate dependency on Russian energy imports in relation to the recent war with Ukraine which will have a significant impact on European economies as Russia supplied the EU with 2.8 barrels per day. The upcoming talks involving a nuclear deal with Iran combined with worrying statements from various leaders is causing an “extraordinary volatility” in oil markets.
Global LNG investments to hit $42 billion in 2024
Investments in new liquefied natural gas (LNG) infrastructure are set to peak at $42 billion annually in 2024. These greenfield investments are 200 times compared to the amount in 2020 when only $2 billion was invested in LNG developments due to the pandemic. This rise is driven mainly by a short-term increase in natural gas demand in Europe and Asia due to the Russia-Ukraine conflict and the restrictions imposed on Russian gas exports. Project approvals after 2024 are expected to slow down as governments transition away from fossil fuels and accelerate investments in low-carbon energy infrastructure.
QatarEnergy awards US$631m EPC contract for IC Solar project
QatarEnergy Renewable Solutions, has awarded an Engineering, Procurement and Construction (EPC) contract for its industrial cities solar power project (IC Solar) to Samsung C&T. The contract covers two large-scale photovoltaic (PV) solar plants to be built in Mesaieed Industrial City (MIC) and Ras Laffan Industrial City (RLIC). The plants are expected to start electricity production by the end of 2024. This project forms part of the strategy to diversify Qatar’s energy resources and to increase the reliance on high-efficiency renewable energy, with a mid-term target of having 5GW of solar generated power by 2035.
Kuwait ramps up crude oil production to meet increased demand
Due to the rise in demand for oil, the Kuwaiti oil minister has announced that they will increase crude oil production and are expecting to meet the future demand. This can help stabilize the extreme volatility in oil markets at the moment which is a result of years of underinvestment, oil minister Al-Faris says. OPEC officials claim that the cut in production coincides with Iran’s potential reintroduction into the oil markets with the west.
Iran Offers To Help Europe With Oil And Gas Deliveries This Winter
Officials in Iran have noticed European countries such as Germany, who are having difficulties with extremely high energy prices. Iran offered to help with the price pressure by exporting gas to European countries, all while making the case that this was a self-inflicted predicament as a result of US sanctions. Iran has been able to expand its oil exports to countries in Asia and South America, and can be a major support in lieu of the upcoming Russian oil sanctions.
Oil jumps nearly 4% on possible OPEC+ supply tightening
Saudi Arabia suggested a cut in oil production, which led to a 4% increase in the price per barrel. The Saudi energy minister said OPEC+ had the means to deal with challenges including cutting production.
OPEC+ Is Now Almost 3 Million Bpd Behind Its Production Target
With the gap between overall quota and actual oil production from the OPEC+ members growing for over a year, they eventually produced a reported 2.9 million barrels less than projected in the month of July. A partial reason for this is the staggering oil production of Russia, who is the leader of non-OPEC members in the OPEC+ pact, along with African countries such as Nigeria and Angola. This underperformance may lead to a significant increase in price per barrel.
Saudi Minister Says OPEC+ Could Cut Production At Any Time
As a result of spare capacities being severely limited, Prince Abdulaziz bin Salman has prepared the market for a new round of production cuts with an announcement that “OPEC+ could cut production at any time.” This decision is partly due to the forecasted volatility and disconnect in the future oil markets, along with unforeseen sanctions or embargoes. To limit risks, OPEC+ members may cut production following a report that showed members underproduce by almost 3 million bpd in July. A cut in production will have a significant impact world wide and can spark tensions with the United States, who pushed for a higher production.
Iran to develop oilfield shared with Saudi Arabia in 3 years
Iran is planning a multi-phase project which will allow them to pump oil from a key oil-field which straddles the maritime border with Saudi Arabia. In addition, Iran plans to open an exploration well in Esfandiar and begin drilling in a disputed location involving Kuwait and Saudi Arabia. This presents a promising sign to those who believe that an open relationship can be created between Saudi Arabia and Iran as they are doing business in previously disputed areas and finding common ground. However, as they find themselves on opposing sides in the Yemen crisis, this may lead to distrust among states.
OPEC chief says blame policymakers, lawmakers for oil price rises
OPEC’s new Secretary General says that policymakers, lawmakers and insufficient oil and gas sector investments are to blame for high energy prices, not OPEC. A lack of investment in the oil and gas sector following a price slump sparked by COVID-19 has significantly reduced OPEC’s spare production capacity and limited the group’s ability to respond quickly to further potential supply disruption. Oil and gas investment is up 10% from last year but remains well below 2019 levels, according to the International Energy Agency. The OPEC Secretary stated, “We are not saying that the world will live on fossil fuels forever … but by saying we’re not going to invest in fossil fuels … you have to move from point A to point B overnight”. OPEC exists to ensure the world gets enough oil, but “it’s going to be very challenging and very difficult if there is no buy-in into the importance of investing”.
Oil prices head for weekly drop on global economic slowdown worries
Oil prices slipped as market participants weighed worries about a global economic slowdown, which would dampen fuel demand, against expectations of tighter supplies toward year-end. Brent crude futures fell 68 cents, or 0.7%, to $95.91 a barrel by 0658 GMT after settling 3.1% higher on Thursday. U.S. West Texas Intermediate crude was at $89.81 a barrel, down 69 cents, or 0.8%, following a 2.7% increase in the previous session. Supplies could tighten again when European buyers start seeking alternative supplies to replace 1.2 mbpd of Russian oil ahead of European Union sanctions which take effect from Dec. 5.
Qatar sees 12-fold jump in surplus on energy profit
Qatar witnessed a jump in its budget surplus to 47.3 billion riyals ($12.8 billion) in the first half of 2022, compared to 4 billion riyals in the same period last year, driven by soaring energy revenues. Oil and gas revenue surged 58 percent to 150.7 billion riyals during the period, compensating the increased government spending on wages and salaries. The Gulf country is benefiting from Europe’s interest in diversifying its gas supply away from Russia in the long-term. The International Monetary Fund projected the country’s economy will grow 5.4 percent this year and generate a surplus equivalent to about $45 billion.
Middle East Producers Expect To Bank Additional $1.3 Trillion From Oil Exports
The major oil exporting countries in the Middle East are expected to receive an additional $1.3 trillion from oil by 2026, thanks to high oil prices and the global oil market turmoil after the Russian invasion of Ukraine, according to the International Monetary Fund (IMF). Saudi Arabia is likely to be one of the world’s fastest-growing economies this year as sweeping pro-business reforms and a sharp rise in oil prices and production power recovery from a pandemic-induced recession in 2020. Gross domestic product is expected to expand by 7.6 percent, the fastest growth in almost a decade.
Saudi Aramco Confirms Estimated $100B Gas Field Phased Expansion
Saudi Aramco has confirmed a phased development for its Jafurah onshore gas production project with an estimated $100 billion overall investment. It is expected to produce up to 3.1 billion cu ft per day of natural gas liquids and condensates by the next decade. Construction of production facilities is in two phases—the first to complete in 2025 and the second two years later. It represents one of the largest shale gas fields outside the U.S. and holds an estimated reserve of 200 trillion cu ft of gas.
Kuwait produces more than 2.8 million barrels per day of oil, KPC CEO says
Kuwait Petroleum Corporation’s (KPC) chief executive said that Kuwait currently produces more than 2.8 million barrels per day of oil in accordance with its OPEC quota. He also said Kuwait has plans to increase crude oil production whenever the market needs it, but currently the customers of the state-owned corporation still demand the same volumes with no change. Kuwait produces 650 million cubic feet of gas per day, and plans to increase it to one billion.
Kuwait Oil Company aims to increase natural gas production to meet local demand
The state-owned Kuwait oil company aims to increase natural gas production to meet local demand. Demand for oil and gas returned to its pre-pandemic levels in 2019. In this high prices environment, the company is determined to increase its natural gas production in line with Kuwait Petroleum Corporation’s strategy to meet the domestic demand for energy.
Iraq resumes crude exports from Basrah Oil Terminal after 24-hour halt
Iraq has resumed crude oil exports from Basrah Oil Terminal after an oil spill that occurred late Sept. 15 halted loadings from the facility, curbing some 1 million b/d of exports from OPEC’s second biggest producer. In the coming days, BOC will compensate for lost crude exports by pumping extra volumes so that planned export levels are not impacted. The terminal has long been a major risk for an oil spill, with the degrading of two ageing sea lines feeding jetties. In July, it was reported that bulges had appeared at the end of those lines and there were fears of a rupture that could cause a significant oil leak into the Gulf.
Kuwait increased oil output by 37,000 barrels per day last August
OPEC said Kuwait continued to raise its oil production levels by 37,000 barrels per day last August to reach 2.810 million bpd. The average price of a Kuwaiti barrel of oil since the beginning of the year amounted to $106.24 per barrel during 2022, compared to 2021, which amounted to $66.40 per barrel. OPEC maintained its expectations of strong growth in global oil demand in 2022 and 2023, based on indicators that major economies are performing better than expected despite unfavorable factors such as high inflation. An OPEC monthly report stated that oil demand will increase by 3.1 million barrels per day in 2022 and 2.7 million barrels per day in 2023.
Saudis seek green hydrogen commitment from EU
According to the President of the European Council, Saudi Arabia wants the EU to embrace long-term contracts in green hydrogen investment potential, with the UAE also suggesting investing in its renewable energy initiatives.
Rystad warns no quick pipe fixes for Iran from Gazprom
Gazprom signed a deal in July to help National Iranian Oil Co. develop Iranian projects, but Rystad Energy has warned Russia lacks the required metallurgical supplies. As a result of sanctions on their energy indsutries, no European or Japanese supplies can provide OCTG or steel goods to Russia or Iran. The corrosive nature of Iranian oil and gas reserves requires high-grade piping for extraction, which neither Russia or Iran have the capacity or capability to produce in the short term. With Iran’s offshore gas fields needing relatively high volumes of these super-specialised grades, it is difficult to see how Gazprom can provide any well assistance to develop these fields quickly.
Oil prices fall after weaker than expected US and China data
Brent crude dropped as low as $92.78 a barrel as gloomy reports from the world’s two leading economies added to worries that a slowdown in global growth will hit industrial and consumer demand. WTI slipped to $86.82, its lowest level since before Russia invaded Ukraine. This came after Chinese economic data showed that retail sales and industrial production rose less year on year in July than Economists had forecast. The oil markets struggle as weak macro data continues to put downward pressure on them, with this negative Chinese data coming immediately after poor consumer sentiment figures in Europe.
Saudi oil windfall tops $65 billion even without dividend hike
The Saudi government’s oil income almost doubled in the second quarter even as state-controlled producer Aramco held dividends unchanged. Aramco pays a royalty of 80 per cent on Brent crude prices above $100 a barrel, and 45 per cent when oil’s at $70 to $100. Aramco made payments to the government – its 94 per cent shareholder – of more than $65 billion in the period, up from $35 billion a year earlier. Saudi Arabia’s crude is still the major source of government revenue and soaring prices are set to give the country its first budget surplus in almost a decade.
Aramco 2Q profit at record on high oil prices
As a result of increases in oil prices, sales volumes and refining margins, Aramco’s second-quarter profit exceeded that of ExxonMobil, Shell and Chevron combined. It broke its quarterly profit record with a 90pc year-on-year jump to $48.4bn in the second quarter, which is more than it made in the first six months of 2021. The Aramco CEO acknowledged the market volatility and instability during the first half of this year but stated that the company forecast oil demand will continue to grow for the remainder of the decade, “despite downward economic pressures on short-term global forecasts.
Saudi Aramco to raise output capacity to 12.3 million b/d by 2025
Saudi Aramco plans to raise its sustainable production capacity to 12.3 million b/d by 2025. Saudi Arabia claims a current production capacity of around 12 million b/d but Platts Analytics estimates this at closer to 11.5 million b/d. CEO Amin Nasser stated that in 2026, Aramco should go to 12.7 million b/d before reaching 13 million b/d by 2027.
More Russian Oil Offtakers Crop Up in UAE
Russian oil companies are relying more heavily on little-known trading firms domiciled in the United Arab Emirates to market their crude. One of the attractions for Russian oil exporters is the UAE’s lack of interest in imposing any trade sanctions, as well as low taxation. Companies based in the UAE are not subject to any of the Russia trade sanctions that were introduced in recent months by the US, EU and Switzerland.
Saudi Arabia’s Petro Rabigh Q2 net income surges on higher refining margins
Petro Rabigh’s net profit surged by 93.2% year on year in the second quarter on the back of higher refining margins. This is due to the fact that favorable market conditions for refined products supported the company’s earnings in the second quarter. This was driven by the increase in crude oil prices which led to improved margins.
OPEC, unlike IEA, sees lower 2022 oil demand growth
OPEC on Thursday cut its 2022 forecast for growth in world oil demand for a third time since April, citing the economic impact of Russia’s invasion of Ukraine, high inflation and efforts to contain the coronavirus pandemic. OPEC in a monthly report said it expects 2022 oil demand to increase by 3.1 million barrels per day (bpd), or a 3.2% decrease to 260,000 bpd from the previous forecast. The IEA raised its forecast by 380,000 bpd to 2.1 million bpd.
Iraq to supply Lebanon with fuel for electricity for another year -Lebanese PM
Iraq’s government has agreed to continue supplying Lebanon’s electricity company with heavy fuel oil for another year, Lebanon’s caretaker prime minister said on Thursday. This will alleviate pressure on Lebanon’s struggling power grid. Due to the inability of the Lebanese government to supply subsidized electricity to the people from July 2021- this has caused Lebanon to request 1 million tonnes from Iraq of heavy fuel in exchange for healthcare to Iraqi citizens.
U.S. gasoline prices fall below $4 for first time since March
The average price of U.S. retail gasoline fell below $4 per gallon on Thursday for the first time in months, giving some relief to drivers in the world’s largest fuel consumer. The average price of gasoline peaked in June to a record $5.02 per gallon which caused consumer behavior to shift to purchasing less gasoline as compared to during the pandemic in July 2020.
OPEC’s Oil Production Rises But Still Well Below OPEC+ Target
OPEC’s total crude oil production rose by 216,000 b/d in July compared to June. However, the 10 members in the OPEC+ pact pumped just over 25 mb/d in July in spite of quotas to collectively target crude oil production of 26.276 mb/d. As a result of this, despite raising its crude oil production in July by 500,000 b/day, the OPEC+ group was still well below its collective quota, pumping 2.75 mb/d below targeted output.
ADNOC aims production growth with $1.17 bn contract
Abu Dhabi National Oil Company (ADNOC) has announced a $1.17 billion contract for the hire of 13 self-propelled jack-up barges. The five-year contract was awarded by ADNOC Offshore to ADNOC Logistics & Services for the multi-purpose assets that enable rig-less operations and maintenance, enabling enhanced efficiencies. The ADNOC Offshore CEO said that this will help deliver production capacity expansion offshore and directly support ADNOC’s strategic growth objective of 5 mb/d production capacity by 2030
Hyundai Gets $1.5B LNG Order as Qatar Awards Charter to Asian Partners
QatarEnergy has awarded a consortium of four Asian shipping companies a long-term time charter for the operation of seven liquefied natural gas carriers to secure capacity to support the expansion of its LNG operations. It is the latest in a series of deals as the shipping industry faces a shortage of gas carriers to meet current demand. This $1.5 billion contract forms part of a long-term LNG $28.7 billion expansion project that seeks to increase annual LNG production and exports from 77 million tonnes to 110 million tonnes, ensuring that Qatar becomes the single largest exporter of LNG.
OPEC Downgrades Crude Demand Outlook
OPEC officials have stated, in response to slowing global economic conditions, that it will cut its oil demand outlook by 260,000 b/d from an earlier forecast. The cartel cited remaining downside risks as a result of A combination of the 40-year high inflation in the United States, war in Ukraine that fuelled an energy crisis in Europe, and lingering pandemic woes in Asia. OPEC had already downgraded its global economic growth forecasts for 2022 to 3.1% from 3.5%.
IEA Says Gas-to-Oil Switching Impacts Forecast
The IEA Oil Market Report (OMR) has found that soaring oil use for power generation and gas-to-oil switching are boosting demand and have subsequently raised their estimates for 2022 global demand growth by 380 kb/d. However, they have stated that these extraordinary gains, overwhelmingly concentrated in the Middle East and Europe, mask relative weakness in other sectors. World oil demand is now forecast at 99.7 mb/d in 2022 and 101.8 mb/d in 2023.
Iraq’s July oil output rises by around 70,000 bpd, SOMO data show
Iraq pumped 4.584 million barrels per day (bpd) of oil in July, up by 69,000 bpd from June, data from state-owned marketer SOMO, seen by Reuters showed on Wednesday. According to the production figures, Iraq’s output was slightly above its designated OPEC+ quota of 4.580 mln bpd for July. The OPEC+ organization uses an average of secondary source production statistics to establish compliance with output quotas.
OPEC+ crude oil output makes biggest gain in five months, but gap with quotas grows
OPEC and its nine allies posted their highest monthly crude oil production rise in five months in July, led by gains in Saudi Arabia and Kazakhstan, the latest Platts survey by S&P Global Commodity Insights showed.The OPEC+ alliance increased output by a substantial 490,000 b/d from June—although that is still short of the 648,000 b/d promised when the group agreed to accelerate their quota increases for July and August to meet global rising demand.
U.S. crude, gasoline inventories seen lower last week
U.S. crude oil and gasoline stockpiles likely fell last week, while distillate inventories were unchanged, a preliminary Reuters poll showed on Monday.Crude inventories increased by 4.5 million barrels from July 29 to 426.6 million barrels, the EIA said, compared with analysts’ expectations in a Reuters poll for a 600,000-barrel decrease.
OPEC Sec Gen says we should tread a fine line as not to consume all oil reserves
The Organization of Petroleum Exporting Countries (OPEC) should tread a fine line so as not to consume all oil reserves, the Organization’s Secretary General Haitham al-Ghais told Al-arabiya TV on Thursday. The Secretary General also stated that the increase of 100,000 barrels per day was to test the reaction of the oil market.
Oil prices hit lowest since Ukraine invasion amid recession fears
Global oil prices dropped on Thursday to their lowest levels since before Russia’s February invasion of Ukraine, as traders fretted over the possibility of an economic recession later this year that could torpedo energy demand. Benchmark Brent crude futures settled down $2.66, or 2.75%, at $94.12, the lowest close since Feb18. West Texas Intermediate (WTI) crude futures settled down $2.34, or 2.12%, at $88.54, the lowest close since Feb 2. This decrease in oil prices is beneficial to consumer nations such as the United States and territories within Europe because of rapid inflation and limited supplies.
Exclusive: Saudi, UAE save oil firepower in case of winter supply crisis
OPEC leaders Saudi Arabia and the United Arab Emirates stand ready to deliver a “significant increase” in oil output should the world face a severe supply crisis this winter, sources familiar with the thinking of the top Gulf exporters said. There are no specific quantities which have been agreed upon, but Saudi Arabia, the UAE and some other OPEC members possessed around 2.0-2.7 million bpd of spare production capacity, the source claimed.
Saudi Arabia sets Sept crude prices to Asia at record high
Saudi Arabia, the world’s top oil exporter, raised September crude oil prices for Asian buyers to record high levels despite falling refining margins. Refiners have been concerned that a further hike in crude oil prices could prompt refineries to trim output to manage their balance sheets.Saudi’s OSPs also came after OPEC+ agreed to raise its oil output goal by 100,000 barrels per day from September, although the market saw the increase as too small to have any meaningful impact on the supply.
OPEC+ agrees to raise September output target by 100,000 bpd
OPEC+ has agreed to raise its September oil output targets by 100,000 barrels per day, an OPEC+ source said.
OPEC+ might have to raise oil output so market doesn’t overheat, Kazakhstan says
OPEC+ is set to raise its oil output goal by 100,000 barrels per day, an amount analysts said was a setback to U.S. President Joe Biden after his trip to Saudi Arabia to ask the producer group’s leader to pump more to help the United States and the global economy. The increase is minimal at a negotiated amount of only 0.1% following Joe Biden’s visit to Saudi Arabia and missile sales to the United Arab Emirates
OPEC+ sees slightly smaller oil market surplus this year, sources say
OPEC+ sees this year’s oil market as slightly less supplied than previously predicted, a day ahead of a meeting at which the organization is set to decide on its production policy for next month. Data showed that the OPEC+ Joint Technical Committee (JTC), meeting on Tuesday, trimmed its forecast for a surplus in the oil market this year by 200,000 barrels per day (bpd) to 800,000 bpd, three OPEC+ delegates told Reuters.
Kuwait nears maximum oil production, with politics, technical challenges stunting growth
Kuwait is close to exhausting its production capacity, capping its ability to bring on more crude oil supplies to meet elevated global demand. This comes as OPEC faces pressure from its key customers for price relief. Due to the bureaucratic challenges, the aging oil fields within Kuwait require foreign consultations which will allow there to be improvements in oil production and decrease technical challenges facing the country which has yet to be achieved.
Saudi to push OPEC+ to increase oil production at upcoming meeting
Saudi Arabia will push OPEC+ to increase oil production at an upcoming meeting on Wednesday, a Fox Business news reporter said on Monday. This news comes following the trip of President Joe Biden to the Middle East last month when Saudi King Salman bin Abdulaziz assured Joe Biden of the OPEC+ production increase within the meeting.
Kuwait reappoints Mohammed al-Fares as oil minister
Mohammed al-Fares retained his role as Kuwaiti oil minister following the formation of a new government on Aug.1 , amid rising pressure on the country to raise oil supplies as part of its OPEC+ agreement. This took place following the designation of a new PM Sheikh Ahmad Nawaf AlSabah in which the minister Mohammad AlFares retained his role as Oil minister within the cabinet.
Moscow says Russia and Saudi Arabia ‘firmly committed’ to OPEC+ goals
Russia and Saudi Arabia remain firmly committed to the goals of the OPEC+ agreement to preserve market stability and balance supply and demand in the global oil markets, the Russian government said in a statement on Friday. Russian Deputy Prime Minister Alexander Novak met Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman and they officially discussed cooperation within the OPEC+ agreement that places a quota on oil production in a bid to balance oil prices.
Iranian tanker to retrieve oil cargo confiscated by U.S. this week
An Iranian-flagged tanker anchored off the Greek port of Piraeus is expected this week to retrieve part of its cargo of oil confiscated by the United States and sail back to Iran following a Greek court ruling, government sources said on Wednesday. This occurred within Greek territorial waters near the town of Karystos and caused tensions between Tehran and Washington to further escalate.
Oil prices pushed up by low chances of OPEC+ supply boost
Oil prices rose in European trading on Friday as attention turned to next week’s OPEC+ meeting and expectations that it will dash U.S. hopes for a supply boost.Brent crude futures for September settlement, due to expire on Friday, gained $2.89 to trade at $110.03 a barrel. Due to the weakness of the dollar globally, this has caused currencies to purchase oil at a cheaper price.
Once an OPEC quota buster, Iraq struggles to raise oil output due to port limitations
Near-term prospects for increasing loading volumes at its aging Gulf terminal facilities at Basrah are dim, Iraqi officials acknowledge, preventing any meaningful gains in production that would allow the cash-strapped country to benefit from high oil prices. And the degraded pipelines connecting the terminal to loading jetties are a major risk for a catastrophic environmental disaster. The reason for the delay in Oil outputs is due to the political crisis which have caused instability and financial obstacles for Iraq to handle.
OPEC+ to weigh holding oil output steady or small hike, sources say
OPEC and its allies will consider keeping oil output unchanged for September, when they meet next week, despite calls from the United States for more supply.However, a modest output increase is also likely to be discussed, eight sources have said. The OPEC+ organization, including Russia this year, will increase their exports exceeding limits which were situated due to the COVID-19 pandemic from 2020.
Oil to fuel growth in Gulf economies this year, but will not sustain pace in 2023
Economies in the six-member Gulf Cooperation Council will grow faster this year than previously thought due to higher oil production, according to a Reuters poll of economists. They predicted growth to slow next year along with global demand. A Reuters poll from July 6-20 predicted exponential growth in the six GCC economies would average 6.2% this year, increasing from 5.9% predicted in an April poll.
Iraq’s southern oil export capacity may rise to 3.35 mil b/d by September: SOMO
Iraq’s southern oil export capacity may go up to 3.35 million b/d by September, from around 3.3 million b/d now, as OPEC’s second biggest producer pumps more crude in line with OPEC+ unwinding output cuts, Deputy Director General of State Oil marketer SOMO said on July 21.
Russia is China’s top oil supplier for 2nd month, Saudi volumes tumble – data
Russia held its spot as China’s top oil supplier for a second month in June as Chinese buyers cashed in on lower-priced supplies, slashing more costly shipments from Saudi Arabia, data showed on Wednesday. Chinese imports of Russian oil, including supplies pumped from the East Siberia Pacific Ocean pipeline and seaborne shipments from Russia’s European and Far Eastern ports, resulted in 7.29 million tonnes.This was an increase of approximately 10% from 2021, according to data from the Chinese General Administration of Customs.
Saudi minister: we see lack of refining capacity in market, not lack of oil |
Saudi Arabia’s foreign minister Faisal bin Farhan Al-Saud said on Tuesday that he saw no shortage of oil in the market, but a lack of oil refining capacity, making it necessary to invest more in capacity to process crude oil into various oil products. As such, the Minister has stated there needs to be more innovation in the refining capacity, and not an increase in oil production.
Oil gains $5 on weaker dollar, tight supplies
Oil prices rose by more than $5 on Monday, boosted by dollar weakness and expectations that the U.S. Federal Reserve won’t raise interest rates by a full percentage point at its next meeting to combat inflation.Brent crude exports for September gained $5.11, to settle at $106.27 a barrel, after rising 2.1% on Friday.
White House expects OPEC+ oil production hike after Middle East trip
The White House said Monday it anticipates major oil producers in the OPEC+ alliance to increase crude production following President Joe Biden’s trip to the Middle East. Due to the midterm elections taking place on November 8 there is substantial pressure on Joe Biden to lower gas prices as a result of increasing resistance from middle class Americans.
Saudis say crude output hikes are within OPEC+ as Biden leaves region without oil deal
Saudi officials said on July 16 that the country’s oil production policies are implemented within the OPEC+ group, as US President Joe Biden ended his four-day trip to the Middle East without a pledge for higher crude supply to further temper oil prices. The Saudis have stated that they believe the demands of Joe Biden are “unrealistic” and globally will not fix the oil prices dilemma within the country.
U.S. not expecting Saudi Arabia to immediately boost oil production
The United States does not expect Saudi Arabia to immediately boost oil output and awaits the outcome of an OPEC+ meeting on Aug. 3, the U.S. national security adviser said on Friday. This lowers expectations as the U.S. President Joe Biden visits the kingdom. Notably, Saudi Arabia and the UAE are the world’s largest oil producers in the OPEC+ organization, alongside Russia.
EXCLUSIVE Saudi Arabia doubles Q2 Russian fuel oil imports for power generation
Saudi Arabia, the world’s largest oil exporter, more than doubled the amount of Russian fuel oil it imported in the second quarter to feed power stations. This was done to meet summer cooling demand and free up the kingdom’s own crude for export, according to data and traders’ claims. Due to the invasion of Ukraine, Russia has resorted to selling their fuel at discounted prices which Saudi has increasingly imported into the country.
Iraq plan to boost oil export capacity suffers setback, source says
Iraq’s bid to boost oil export capacity at its Gulf ports has suffered a setback due to delays in pumping station upgrades, an Iraqi oil source said.Iraq is OPEC’s second highest oil producer which aims to raise operational export capacity in Basra to 3.45 million barrels per day (bpd) from 3.3 million bpd.
Asian refiners to receive full Saudi crude allocation in August
Saudi Aramco has notified at least three North Asian buyers that it will supply full contractual volumes of crude oil in August, sources with knowledge of the matter said on Tuesday. Saudi Arabia and other OPEC+ states agreed this month to increase production to commemorate Russian output losses by 648,000 barrels per day (bpd) in July- and a similar amount in August. This comes against the initial plan to add 432,000 bpd a month over three months until September.
OPEC sees slower 2023 oil demand growth, no big shale gain
OPEC expects global oil demand to rise in 2023, albeit at a slower pace than 2022, the producer group said in its first forecast for next year, citing signs of robust economic growth and progress in containing COVID-19 in China.
One of the main reasons for slow oil demand growth is tight supply and logistical problems which have affected the process of oil demand growth.
Oil slides on strong dollar and weaker demand outlook
Oil prices fell sharply on Tuesday on a strong dollar.Demand has sapped due to COVID-19 curbs in top crude importer China, and fears of a global economic slowdown. Due to the petro-dollar, this has caused the product to be more expensive for other global currencies to purchase the product, despite the lower price. Thus, this has resulted in a lower demand globally.
OPEC+ boosts June crude output by 390,000 b/d, but wide quota gap persists: Platts survey | S&P Global Commodity Insights
OPEC and its Russia-led allies hiked crude oil production by 390,000 b/d in June, according to the latest Platts survey by S&P Global Commodity Insights, though almost all members continued to struggle to hit their output targets. The supply chain disruptions caused globally by the pandemic, coupled with geopolitical tensions and technical issues which resulted in a quota gap.
Saudi Arabia sets August crude prices to Asia at near-record high
Saudi Arabia, the world’s top oil exporter, raised August’s crude oil prices for Asian buyers to near record levels amid tight supply and robust demand. OPEC+ has decided to stick to their projected market output despite demands from the United States and the United Kingdom to increase their oil output, in order to lower global oil prices.
Shell Invests in Qatar’s $29 Billion Liquefied Gas Project
SHELL PLC became the latest international energy company to invest in Qatar’s $29 billion liquefied natural gas project, clinching a 6.25% stake as Europe races to secure new supplies of the fuel. This will cause the Gas output for Qatar to increase by 40% to 110 Million tons per year, in addition to cooperation from the gas firms of Total Energies SE and Exxon Mobil Corp.
Oil falls as recession fears boost demand concerns
Oil plummeted by about $10 a barrel on Tuesday as concerns of a global recession curtailing demand overshadowed a strike by Norwegian oil and gas workers that could cut exports and exacerbate supply shortages. The demand for crude oil has sank, and fears of a recession have increased globally as central banks take aggressive measures against inflation.
Oil prices reverse losses, gain on tight supply concerns
Oil prices reversed losses and edged up on Monday as concerns of tight supply amid lower OPEC output, unrest in Libya and sanctions on Russia outweighed fears of a global recession. This is due to Output decreasing in 10 countries by 100,000 BPD to 28.52 million BPD which is different from their projected increase of 275,000 BPD.
Oil dips as supply concerns linger and OPEC+ sticks to policy
Oil prices sank around 3% on Thursday as OPEC+ confirmed it would only increase output in August by as much as previously announced despite tight global supplies, but left the market wondering about future output. This comes as a result of the OPEC+ meetings which included Russia and discussed strategic cooperation.
OPEC+ reaffirms August oil production hike, leaves future output policy undecided
An increasingly stretched OPEC and its allies on June 30 reaffirmed plans for a nominal 648,000 b/d production rise in August, as questions continued to swirl about how much crude oil the group will be able and willing to pump in the months ahead.The OPEC+ and Russia, have been slowly raising their quotas each month, aiming to restore production to pre-pandemic levels by August, but many countries have not been able to keep up, due to slow infrastructure, lack of funds or political issues.
Oil prices rise for fourth day on supply worries
Oil prices slid about 2% on Wednesday as a rise in U.S. gasoline and distillate inventories coupled with worries about slower economic growth around the world offset ongoing concerns about tight crude supplies. One of the reasons for the rise in oil prices is the stronger dollar which makes oil more expensive and slow economic growth globally.
Oil prices edge higher ahead of G7 talks on new Russian sanctions |
Oil rose $2 a barrel on Monday as the prospect of even tighter supplies loomed over the market as the Group of Seven nations promised to tighten the squeeze on Russian President Vladimir Putin’s war chest, while actually lowering energy prices. Also, G7 should consider negotiations with the oil exporting nations of Iran and Venezuela due to the fact they both have been facing sanctions which affected their oil exportation techniques.
OPEC and allies set to hold two meetings next week, OPEC website
OPEC is set to hold an ordinary meeting on June 29 followed by a meeting of OPEC and non-OPEC members on June 30, the producer group’s website showed.
OPEC+ to stick to oil supply rise plan as Biden heads to Saudi – sources
OPEC and allied producing countries, including Russia, will likely stick to a plan for accelerated oil output increases in August, sources said, hoping to ease surging oil prices and inflation pressure as U.S. President Joe Biden plans to visit Saudi Arabia and the Middle East. This occurred after Biden’s administration pleaded for increased supply from the OPEC+ members as the world struggles to tackle the energy crisis.
Kuwait has the capacity to reach its OPEC quota and any future increases -KPC CEO
Kuwait Petroleum Corporation chief said on Tuesday the Gulf oil producer had the capacity to reach its OPEC quota and any future increases. According to the KPC CEO Sheikh Nawaf Saud AlSabah the state-owned oil company is planning on investing in pipelines and the monetization of them as was the case by Aramco and ADNOC.
Oil swings higher as tight supplies overshadow demand destruction
Oil prices swung higher in volatile trading on Monday, as traders focused on tight supplies over slowing global economic growth. The main factors that have affected the Oil demand increase are economic sanctions on Russia and the high prices decreasing demand internationally.Analysts believe that a global recession is imminent due to the increased inflation within the United States.
OPEC’s Barkindo says common objective with non-OPEC partners is market stability
The common objective of the Organization of the Petroleum Exporting Countries and its non-OPEC partners has always been to maintain oil market stability, not to raise prices or bring them down, OPEC Secretary General Mohammad Barkindo said on Saturday. Moreover, the secretary general stated that the stability of oil prices globally is the responsibility of all oil producing nations in accordance with the market, and the laws of supply and demand.
Oil slumps 6% to four-week low on recession worries, strong dollar
Oil prices tumbled about 6% to a four-week low on Friday due to the worries that interest rate hikes by major central banks could slow the global economy and cut demand for energy. Many central banks have globally tightened interest rates to fight inflation, however a global recession is imminent and can not be avoided.
Exclusive: China firms in advanced talks with Qatar for gas field stakes, LNG offtake
China’s national oil majors are in advanced talks with Qatar to invest in the North Field East expansion of the world’s largest liquefied natural gas (LNG) project and buy the fuel under long-term contracts, three analysts have said.This deal will allow China to diversify their imports and also increase the exports of Qatar to China, as was the case when Qatar was China’s largest LNG supplier.
UAE licenses third unit of Barakah nuclear power plant
The United Arab Emirates (UAE) has licensed the third unit of its Barakah Nuclear Energy Plant, the UAE’s permanent representative to the International Atomic Energy Agency, Hamad Al Kaabi, told reporters on Friday. This is significant because this is the Gulf region’s first fully operational nuclear powered plant Once completed, the plant will supply the UAE with 25% of national energy supply.
Iraq to begin setting up electricity links with S.Arabia -state news agency
Iraq’s electricity ministry has begun establishing interconnection stations with Saudi Arabia and determining transmission paths, state news agency INA said on Wednesday. Due to a sudden electricity shortage during the summer months, Iraq has chosen to ask for assistance from Saudi Arabia which will join the list of other gulf states which assist Iraq’s energy supply.
Exclusive: OPEC sees global oil demand growth slowing in 2023, sources say
World oil demand growth will slow in 2023, OPEC delegates and industry sources said, as surging crude and fuel prices help drive up inflation and act as a drag on the global economy. Although there has been a decline in oil growth in 2020 due to the pandemic, higher prices have become more realistic within this year. Moreover, the fuel price has rebounded this year because demand has soared after a decrease was witnessed in 2020.
QatarEnergy signs deal with TotalEnergies for North Field East project
QatarEnergy signed a partnership deal with TotalEnergies on Sunday for the North Field East expansion of the world’s largest liquefied natural gas (LNG) project. The state owned company’s Chief Executive said more partners would be announced in the coming days.The rich Gulf state is relying on foreign consultants to develop the $30 billion expansion of the North Field project. The state of Qatar’s minister of energy stated that all foreign companies have been chosen and an official announcement will be made soon.
Oil dives as U.S. inflation data surges; China imposes lockdowns
Oil prices sank on Friday, after U.S. consumer prices rose more than expected, and China imposed new Covid-19 lockdown measures .Many factors have contributed to the Oil dives such as the Iranian state removing nuclear monitoring, and Brent crude fell by $1.19 to $121.88 a barrel.
Eni to join Exxon, Total, Shell, Conoco in Qatar’s mega-LNG expansion
Italian producer Eni (ENI.MI) has been picked, along with another four oil majors, by Qatar as partners in the near $30 billion expansion of the world’s largest liquefied natural gas (LNG) project,analysts said on Wednesday. The State sponsored company of Qatar Energy will hold a news conference and announce that the North Field Expansion project will expand from 77 million tonnes per annum (mtpa) to 126 mtpa by 2027.
OPEC+ efforts to boost oil output ‘not encouraging’, UAE minister says
Efforts by OPEC+ oil producers to boost output are “not encouraging”, UAE energy minister Suhail al-Mazrouei said on Wednesday, noting the group was currently 2.6 million barrels per day short of its target.The minister Suhail Mohamed Al Mazrouei stated that the economic necessities of China will boost oil output since recent lockdown measures have decreased.
Saudi Arabia hikes July crude prices surprisingly high for Asia buyers
Saudi Arabia, the world’s top oil exporter, raised July crude oil prices for Asian buyers to higher-than-expected levels amid concerns about tight supply, coupled with expectations of strong demand in the summer. The increase that was noted was approximately $6.5 a barrel, which is a substantial increase compared to the $2 a barrel previously expected by analysts.
South Korean companies to build $1 billion green hydrogen plant in UAE
Three South Korean companies have signed an agreement to build a $1 billion green hydrogen and ammonia production plant in the United Arab Emirates, their UAE partner said on Friday. The attractiveness of green hydrogen has increased recently due to the fact it passes water through an engine to produce renewable energy and decrease greenhouse gas emissions. The plant is expected to be built near Abu Dhabi and is in accordance with UAE’s initiative to reduce reliance on oil and gas sectors.
Iran’s energy export revenue up 60 pct in March-May vs year ago: Oil ministry media
Iran’s energy export revenue is 60 percent higher in the first two months of the Iranian year (March 21 to May 21) compared to the same period a year ago, an official from the Iranian oil ministry told SHANA news agency on Sunday. Although Iran has been hit with heavy sanctions by the US, the withdrawal of Trump from Iranian sanctions in 2018 has allowed the country’s oil exports to increase.
OPEC+ raises output faster than expected as Russia’s war roils global energy markets
OPEC and its oil-producing allies agreed to hike output in July and August by a larger-than-expected amount, as Russia’s invasion of Ukraine wreaks havoc on global energy markets. This decision came as a result of Biden’s administration urging Oil companies to increase output in order to stabilize oil prices globally.
Chairman of the Board of Directors of ACWA Power Saudi Arabia to CNBC Arabia: We signed an agreement for the Oman hydrogen project to produce green ammonia in cooperation with Omani OQ and Air products
Saudi Arabia’s ACWA and Oman’s OQ signed a deal to produce green ammonia energy. The project should support the regional effort to push renewable energy projects and part of the MOU signed between Oman and Saudi Arabia in December.
Kuwait to start building world’s largest petroleum research center – oil ministry | Reuters
Kuwait plans to start building the world’s largest petroleum research center by the end of the year, the oil ministry said on Twitter on Wednesday. According to the ministry, the project will cost an estimated 120 Million Dollars and has been stalled due to logistical obstacles. The center will be created South of Kuwait City in Ahmadi and focus mainly on perfecting petroleum engineering techniques and innovative crude oil extraction which is essential to the field.
Saudi Arabia says it’s done all it can for the global oil market, Energy & Commodities – THE BUSINESS TIMES
Saudi Arabia’s foreign minister said there’s nothing more the kingdom can do to tame oil markets, implying that the world’s biggest crude exporter has no plan to accelerate its gradual production increases.
Qatar and Germany sign an energy partnership agreement
On May 20th, Germany and Qatar signed an agreement to develop their partnership in the energy field during the Emir of Qatar, Sheik Tamim bin Hamad Al Thani, visit to Germany. The war in Ukraine caused disruption of gas supplies from Russia to many European countries, and Europe is trying to reduce its reliance on Russian energy by the end of the year.
Saudi Arabia set for oil output capacity above 13 million barrels per day by 2027, minister says | Reuters
Saudi Energy Minister Abdulaziz bin Salman said that his country is on track to lift oil production capacity by more than 1 million barrels per day to over 13 million bpd by the end of 2026 or the start of 2027.
Bahrain still evaluating giant shale oil discovery despite high oil prices: minister | S&P Global Commodity Insights
Bahrain’s oil minister told reporters on May 16 that his country has yet to take a decision on its 80-billion-barrel offshore shale oil discovery in spite of higher oil prices. Due to the requirement of foreign consultations for this project, this has caused the process of development to be delayed. The oil ministry planned to develop the refineries within a period of five years with the support of international oil companies, but progress has been limited.
Saudi Prince Abdulaziz bin Salman: Record Fuel Costs Driven by Refining Crunch – Bloomberg
The Energy Minister of Saudi Arabia Prince Abdulaziz bin Salman blamed the rise in gas prices on the closure of refineries in the US and Europe, not any shortage in oil supply.
Saudi, UAE energy ministers say NOPEC bill risks destabilizing the oil market | S&P Global Commodity Insights
Targeted by so-called NOPEC legislation in the US that would allow antitrust lawsuits against the producer alliance, top OPEC officials said on May 10 that the bill would worsen market volatility by driving away investment in the oil industry. Due to the Russian invasion of Ukraine, global oil prices have substantially increased throughout the world.
OPEC+ agrees to another modest production increase after EU outlines Russian oil ban
Oil producer group OPEC+ agreed on Thursday to raise production targets by 432,000 barrels per day for June, sticking to an existing strategy of gradually unwinding record supply cuts.
Saudi Arabia lowers Arab Light oil price to Asia, Europe in June | Reuters
Saudi Arabia lowered the price of its Arab Light crude grade to Asia and Europe for the month of June, according to a pricing document released by oil producer Saudi Aramco on Sunday.
China grows reliance on Middle Eastern crudes in Q1 as Russian inflows drop 11% | S&P Global Commodity Insights
China’s reliance on Middle Eastern crude oil grew sharply in the first quarter of 2022, as the country reduced inflows from Russia, Brazil and the US, data from the General Administration of Customs showed. Middle Eastern oil exports are 5.35 Million barrels per day accounting for 47.5% of market share within China. Specifically, Oman, Iraq, UAE, and Kuwait all increased their exports to China in the three-month period during 2022’s Q1 from 4.7% to 30.1%.
Saudi says it and Kuwait have right to exploit gas-rich offshore zone -state news agency | Reuters
The Saudi cabinet reaffirmed the right of the kingdom and its neighbor Kuwait to exploit natural resources at a joint, energy-rich, offshore area. Iran has called for negotiations with Saudi and Kuwait to discuss their joint projects within the Durra gas field. This gas field is situated in the Gulf which is a contested water source by Iran, Saudi, and Kuwait.
Japan refiner Eneos to buy alternative to Russian crude from Middle East
Japan’s biggest oil refiner Eneos Holdings Inc has no plans to buy Russian crude until all problems related to the Ukraine crisis are over and will purchase alternative supplies from the Middle East, its chairman said on Wednesday. As such, Eneos has stated that due to the “Special operation” occurring in Ukraine Eneos will not import any more oil from Russia.
Iraq Aims to Close Qatar Gas Import Deal to Add Supply
Iraq plans to sign a deal next month to import liquefied natural gas from Qatar in an effort to secure enough of the fuel used for power generation and to diversify its sources of supply. Iran had a problem supplying Iraq with its LNG needs due to increased domestic demands inside Iran.
Iran needs $80 bil gas investment to avoid becoming an importer: Owji | S&P Global Commodity Insights
Iranian oil minister Javad Owji said April 19 that his country needs to invest $80 billion in its gas industry to achieve its 1.4 Bcm/d production target. The flow of foreign investment into the US-sanctioned country has thinned since the US withdrew from a nuclear deal in 2018.
Saudi Arabia’s MBS and Russia’s Putin back OPEC+ efforts to balance oil markets | S&P Global Commodity Insights
Saudi Arabia’s Crown Prince Mohammed bin Salman and Russian President Vladimir Putin discussed the role their countries play in ensuring oil market stability in a phone call on April 16, the Kremlin said in a statement. Russia, which is a Non-Opec oil exporting leader, was hit by western sanctions targeting its financial sector after it invaded Ukraine, which saw its crude production fall to 10.04 million b/d. Consequently, European economies have halted their oil trade with Russia due to the invasion of Ukraine.
Qatar Energy Minister meets Korean counterpart
The energy minister of Qatar met with the Korean Energy minister within Doha on April 17, 2022 to discuss bilateral cooperation in the energy sectors in both countries.
Iran Guards say they have seized two ships with smuggled fuel in Gulf
Iran’s Revolutionary Guards said on Friday they had seized two vessels along the country’s coast on the Gulf and the nearby Gulf of Oman for allegedly smuggling fuel. Due to subsidies and currency devaluation, Iran has some of the world’s cheapest fuel prices and has been fighting rampant fuel smuggling to neighboring states.
Iraq maintaining its position in Indian market despite rise in Russian oil imports – SOMO head
Although India has increased its importation of Russian oil, Iraqi oil still remains a majority of Indian imported oil into the country. The reasoning behind the Russian alternative is that Indians and other consumer countries noticed that Russian oil is sold at a discounted price per barrel. As such, demand for Russian oil rapidly increased internationally. However, Iraq has been able to continue their competitive oil exports to India because of their government strategic agreements which bind the two countries. Moreover, Iraq has agreements with private companies within India.
Kuwait, Saudi Arabia invite Iran to hold talks on gas-rich offshore zone -SPA
Saudi Arabia and Kuwait invited Iran to negotiate the eastern limit of a joint, energy-rich, offshore area, including the Durra natural gas field. Both states have claimed it is their right to develop in this area, with the Kuwaiti government stating that Durra is “entirely a Kuwaiti and Saudi field.” Iran has claimed that it has a stake in the field and the Saudi-Kuwaiti agreement to develop it is “illegal.”
OPEC cuts 2022 world oil demand forecast due to Ukraine war
In a monthly report, OPEC said world demand would rise by 3.67 million barrels per day (bpd) in 2022, down 480,000 bpd from its previous forecast. According to the report, “the strong rise in commodity prices in combination with ongoing supply-chain bottlenecks and COVID-19-related logistical logjams in China and elsewhere are all fuelling global inflation.” OPEC said inflation was the major factor impacting the world economy and lowered this year’s economic growth forecast to 3.9% from 4.2% and said there was a chance of a further cut.
Saudi Arabia leads OPEC decision to drop IEA data as US ties fray
OPEC has chosen to stop using oil data from the IEA, which is considered the West’s energy watchdog. This has raised concerns about the strained relationship between Saudi Arabia and Washington and how it may be impacting reactions to the Ukraine-Russia crisis. U.S. President Biden is facing pressure to lower gasoline prices and address inflation ahead of mid-term elections in November, however the lack of relations with Saudi Arabia has proven to make the situation even more delicate. Saudi Arabia and its allies are likely unwilling to assist the United States due to the lack of American addressal of Gulf concerns about Iran at nuclear talks in Vienna, the lack of support for offensive operations by the Saudi-led coalition in Yemen, and imposed conditions on U.S. weapons sales to Gulf states. OPEC’s dropping of the IEA data reflects this frustration of bias from the IEA towards the United States, and other factors straining U.S.-Gulf relations.
OPEC tells EU not possible to replace potential Russian oil supply loss
OPEC Secretary General Mohammad Barkindo told the European Union on Monday that current and future sanctions on Russia could create one of the worst ever oil supply shocks and it would be impossible to replace those volumes.
Kuwait raises May crude prices to Asia to record levels
Kuwait has raised the official selling prices (OSPs) for two crude grades it sells to Asia in May to record levels. The producer has set May Kuwait Export Crude (KEC) price at $9.30 a barrel above the average of Oman/Dubai quotes, up $4.50 from the previous month. It also raised the May Kuwait Super Light Crude (KSLC) OSP to $9.65 a barrel above Oman/Dubai quotes, up $3.70.
Iraq can export more than 3.3 mln bpd from its southern ports, oil minister says
Iraqi oil minister Ihsan Abdul-Jabbar said Iraq can secure exports of more than 3.3 million barrels per day (bpd) from its southern ports, state news agency INA reported. The minister expressed his optimism that oil prices would continue to rise throughout 2022.
Some Indian refiners set up to cut May Saudi oil, snap up Russian barrels
To mitigate the rising cost of oil imports, India has turned to Russian barrels that are available at a deep discount to the dated Brent benchmark, citing “national interests”. The Middle East accounts for the bulk of India’s oil imports, but at least two Indian refiners are planning on buying less Saudi oil as crude oil prices reach record highs.
Iraq’s March oil output falls as gap with its OPEC+ quota widens
Iraq pumped 4.15 million barrels per day (bpd) of oil in March, 222,000 bpd short of its production quota under an agreement with other OPEC+ producers. Iraq’s March output fell by 112,000 bpd from February, largely due to field outages in the south, data from SOMO showed. Upgrade work on Iraq’s Gulf ports, which lasted for most of 2021 and is scheduled to be finished in the current quarter, has also prevented Iraq from pumping larger volumes.
Oil prices fall after truce in Middle East conflict, petroleum reserve news
Oil prices fell as the United Arab Emirates and the Houthis welcomed a truce that would halt military operations on the Saudi-Yemeni border, alleviating concerns about potential supply issues. Early losses this week also come after oil prices settled 13% down last week due to President Biden’s U.S. oil reserves release.
OPEC output rise in March falls short of pledged increase – survey
OPEC pumped 28.54 million barrels per day (bpd) in March, a Reuters survey found, up 90,000 bpd from February but short of the 253,000 bpd increase called for under its deal with allies including Russia. OPEC+ met on March 31 and confirmed previously agreed plans of a 400,000 bpd increase in March from all OPEC+ members, of which about 253,000 bpd is shared by the 10 OPEC producers the agreement covers. Outages in Libya and Nigeria also limited the increase in OPEC’s output.
EU regulators close antitrust investigation into Qatar Energy
EU antitrust regulators closed their investigation into Qatar Energy after evidence they collected did not confirm their initial concerns with Qatar Energy’s supply agreements with European gas importers and their ability to sell liquefied natural gas in alternative destinations within Europe.
OPEC holds special meeting to ditch IEA data – source
OPEC held an unusually brief meeting to ditch the International Energy Agency (IEA) from its list of trusted data contributors. Earlier this week, OPEC experts recommended ditching the IEA and choosing consultancies Rystad and Wood Mackenzie instead, in yet another sign of a hardening standoff with the West.
Saudi Arabia may raise May crude prices to Asia to new record levels
Saudi Arabia is expected to raise crude prices to Asia in May, with the official selling price (OSP) for flagship Arab Light crude rising by $5 a barrel on average to reach nearly $10 a barrel above Oman/Dubai quotes, the grade’s highest premium ever. However, spot premiums have halved from peaks over the last week in muted trade, prompting some buyers to call for smaller hikes in Saudi oil prices. Saudi Aramco may also reduce price hikes for Saudi medium and heavy grades as Russian Urals crude is still heading into India, one respondent said. State oil giant Saudi Aramco sets its crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month, based on yields and product prices.
Saudi energy minister says oil alliance OPEC+ will leave politics out of output decisions
Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, declared that OPEC+ would keep politics out of decision-making in favor of the “common good” of stabilizing energy prices. The minister said the organization’s very existence is dependent on separating its mission to stabilize oil prices from other geopolitical factors. UAE Energy Minister Suhail Al Mazrouei added that the organization had continued to operate while constituent members were at war, without taking a side. “Our aim is to calm the market, trying to come up with volumes as much as possible, and if we are asking anyone to leave, then we are raising the prices,” he said.
France, Saudi, UAE talk about diversifying Europe energy supplies
Foreign Minister Jean-Yves Le Drian in a phone call with his Saudi and UAE counterparts Faisal bin Farhan Al Saud and Abdullah bin Zayed al-Nahyan underscored the importance of coordination with the two Gulf states with a view to diversifying the oil and gas supplies of European states, according to a statement from the Foreign Ministry. Le Drian is also scheduled to visit Qatar next week, during which the topic of energy diversification will be discussed, BFMTV news reported.
Qatar to produce 800MW of solar power this year
Qatar’s Minister of Environment and Climate Change, HE Sheikh Faleh bin Nasser bin Ahmed bin Ali al-Thani, announced that Qatar would start producing solar power this year, in an effort to reduce gas emissions and increase the use of renewable energy. The minister declared Qatar would produce 800 megawatts of solar power this year, and the country’s goal of producing 1.6 gigawatts of solar power by 2030. Sheikh Faleh also noted that Qatar has managed to reduce 80% of gas emission in the Al Shaheen Gas field, one of the largest gas fields in the world.
Oil rises to over $120/bbl after attack on Saudi facilities
Crude prices rose more than 1 percent, bringing the price to $120 a barrel, as traders dealt with the impact of a missile attack on an oil distribution facility in Saudi Arabia. Yemen’s Houthis said they launched attacks on Saudi energy facilities on Friday and the Saudi-led coalition said Aramco’s fuel distribution station in Jeddah had been targeted by an attack, but that a fire in two tanks at the facility had been brought under control.
UAE expands nuclear power plant, doubles electricity production
The United Arab Emirates announced that it expanded its nuclear power plant, which was the first to be established in the Arab world. The Barakah Nuclear Energy Plant now produces a total 2,800 megawatts of total electricity, doubling the previous output. While oil and gas still dominate the energy production of the UAE, the country is looking to expand its renewable energy alternatives, even positing a target of the Barakah plant producing 85% of the state’s clean energy by 2025.
U.S. refiners turn to Middle East for fuel oil after Russia import ban
After President Biden banned Russian oil imports over the invasion of Ukraine, U.S. refiners have turned to Middle Eastern producers for fuel oil cargoes. Last year, Russia accounted for just under half of the U.S. fuel oil imports, while the Middle East only provided about 5%. Middle East supplies are set to make up at least 17% of April U.S. fuel oil purchases, according to preliminary Refinitiv Eikon tanker tracking data. Saudi Arabia, Kuwait, Iraq and the United Arab Emirates make up roughly half of all fuel oil cargoes under contract and are expected to head to the United States in April. Iraqi fuel oil arrived in the U.S. this March, for the first time since mid-2021.
Egypt, UAE, Israel discuss energy market stability
Egypt, UAE, and Israel have faced heavy pressure from Washington to shun Russia and, in the Emirates’ case, also to supply more oil to a world trying to wean itself from Russian energy. That arm-twisting has come as the United States pursues a renewed nuclear deal with Iran, a rival of Israel and the UAE, that would lift international sanctions on Tehran in exchange for limits on its nuclear program. The Emirates and Saudi Arabia, another important American ally in the region, have complained about what they see as a lack of American support after attacks that were linked to Iran.
UAE, Netherlands forge partnership to boost clean hydrogen usage
As part of the Joint Economic Committee, the UAE and the Netherlands have been in discussion to identify common interests and create a partnership for decarbonization of the energy sector and increasing the use of clean hydrogen. Suhail Mohammed Al Mazrouei, UAE Minister for Energy and Infrastructure, and the Dutch Minister for Foreign Trade and Development Cooperation, Liesje Schreinemacher, signed the MoU at the Dutch Pavilion at Expo Dubai on Tuesday.
Saudi Arabia, Kuwait agree on developing Durra gas field in the Gulf
Saudi Arabia’s energy minister has signed a document with his Kuwaiti counterpart to develop the Durra gas field, Kuwait Petroleum Corporation said in a statement on Monday. The Durra field, which is shared between the two Gulf states, is expected to produce one billion standard cubic feet per day of gas and 84,000 barrels per day of condensates according to the statement.
Saudi oil refinery output drops following Houthi attack: State media
Production at Saudi Arabia’s oil refinery in Yanbu has dropped temporarily following a drone attack overnight claimed by the Houthi group in Yemen, the Saudi state news agency, SPA, reported on Sunday. The refinery, known as Yasref, on the Red Sea, will compensate for the shortfall from its stockpiles, the news agency said, citing a source at the Saudi energy ministry.
Yemen Houthis attack Saudi energy facilities, refinery output hit
Yemen’s Iran-aligned Houthi group fired missiles and drones at Saudi energy and water desalination facilities, causing a temporary drop in output at a refinery but no casualties, the Saudi energy ministry and state media said on Sunday. “The assault on Yasref facilities has led to a temporary reduction in the refinery’s production, which will be compensated for from the inventory,” a statement said, referring to Yanbu Aramco Sinopec Refining Company, a joint venture between Saudi Aramco and China Petrochemical Corporation. Later in the morning, a water desalination plant in Al-Shaqeeq, a power station in Dhahran al Janub, and a gas facility in Khamis Mushait, were targeted as well.
Iran oil minister says aiming for 1.4 million bpd crude exports
“In parliament, lawmakers decided to raise the ceiling of exports of oil and condensates from 1.2 million barrels (per day) to 1.4 million barrels. The Oil Ministry will do everything in its power to realize the level set in the budget,” Iranian Oil Minister Javad Owji said. Iran, facing U.S. sanctions on its crude oil exports, does not divulge exact figures on its oil sales. Owji said his ministry planned to raise production capacity of crude and condensates to 5.7 million bpd from about 3.7-4 million bpd, without giving a timeframe. In late 2020, Iran unveiled an ambitious plan to increase production capacity to more than 6.5 million bpd by 2040, a statement that is said to be unrealistic for experts.
IEA urges reduced transport to cut oil use amid supply crunch
The plan by the Paris-based grouping of 31 industrialized countries – which does not include Russia – underlines the urgency of a supply crunch brought on by sanctions and buyer aversion to Russian oil, which has raised fuel prices. The recommendations – which include lower speed limits, working from home, car-free days in cities, cheaper public transport and more carpooling – could cut oil demand by 2.7 million barrels a day within four months, the International Energy Agency (IEA) said. The IEA urged governments to make the changes permanent, not just for economic reasons but in order to combat climate change.
OPEC+ supply gap widens further as February compliance jumps
OPEC+ compliance with oil production cuts rose to 136% in February from 129% in January, two sources said, missing its target by over 1 million barrels per day (bpd), as an already tight oil market braces for major Russian disruption. The International Energy Agency said this week the oil market was set for a 700,000 bpd supply deficit in the second quarter as Western sanctions on Moscow and buyer reluctance could lead Russian oil supplies to drop by 3 million bpd in April.
Most Gulf bourses rise tracking oil prices; financials boost Saudi
Most stock markets in the Gulf ended higher on Wednesday, as oil prices jumped after the International Energy Agency said three million barrels a day of Russian oil and products could be shut in from next month. “Gulf Cooperation Council stock markets were mostly performing positively today while investors return to the market to buy the dip after a week of price corrections,” wrote Miguel Rodriguez, chief market analyst at CAPEX.com, adding uncertainties on the supply availability of oil amid rising COVID-19 cases in China are still weighing on sentiment.
UAE’s energy company ADNOC awards Dh2.4b in cementing services contracts
The UAE energy major ADNOC has signed ‘framework agreements’ valued at Dh2.4 billion for cementing services to five companies, including Halliburton Worldwide Ltd. Abu Dhabi and Baker Middle East. The other three are Emirates Western Oil Well Drilling & Maintenance Co., NESR Energy Services and Emjel Oil Field Services. These cover ADNOC’s onshore and offshore fields and will run for five years with an option for a further two years. Yaser Saeed Almazrouei, ADNOC Upstream’s Executive Director, said, “The awards for cementing services will support the ongoing expansion of ADNOC’s drilling activities as we grow our production capacity, strengthening our position as a reliable global supplier of some of the world’s most carbon efficient barrels.” Cementing represents a major process in the drilling and completion of oil and gas wells.
UAE’s Masdar announces start of construction for solar PV plant in Azerbaijan
UAE-based renewable energy company Masdar has announced the formal start of construction for its 230-megawatt (MW) Garadagh solar PV plant in Azerbaijan. Masdar had signed agreements to develop the Garadagh project, situated nine kilometers northwest of the Alat settlement, in April of last year, with the plant expected to start commercial operation in 2023. The project will help to generate half a billion kilowatt-hours of electricity annually, adequate to meet the needs of over 110,000 houses, and will reduce emissions by more than 200,000 tons a year, a statement said. The Abu Dhabi Fund for Development (ADFD) is a finance partner for the project. The plant is the country’s first foreign investment-based independent solar power project.
Oil price plunges on easing supply concerns, China COVID-19 cases
Oil prices tumbled to their lowest in almost three weeks on Tuesday as supply disruption fears eased and surging COVID-19 cases in China spurred demand concerns. The steep decline followed a statement from Russian foreign minister Sergei Lavrov, saying that Moscow is in favor of the 2015 Iran nuclear deal resuming as soon as possible. The talks to revive the nuclear accord, which would lead to sanctions on Iran’s oil sector being lifted and allow Tehran to resume crude exports, had recently been stalled because of Russian demands.
Saudi cooperation with China continues with finalization of long-planned refinery deal
Saudi Aramco made the “final investment decision” to develop a refinery and petrochemical complex in northeast China with the North Huajin Chemical Industries Group Corporation and Panjin Xincheng Industrial Group companies, the official Saudi Press Agency reported. One Aramco executive said that China is key to their plans to expand in Asia. “China is a cornerstone of our downstream expansion strategy in Asia and an increasingly significant driver of global chemical demand,” said Mohammed al-Qahtani, per the agency. China has become Saudi Arabia’s top trading partner. The deal is the latest example of their extended cooperation, touching on multiple sectors as well.
Germany discussed energy cooperation with Qatar
Germany is to close its last nuclear power plants this year and plans to build its first liquefied natural gas (LNG) terminal within two years. “We discussed bilateral cooperation particularly in energy and corporate investments,” Joerg Kukies, the German chancellery’s state secretary, stated, adding he talked to Deputy Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani, who also heads the Qatar Investment Authority sovereign wealth fund. Qatar has said it could divert probably 10-15% of its LNG shipping volumes, as the core energy producer to counter dependence on Russia. It plans to raise LNG production capacity to 126 million tonnes a year by 2027 from 77 million tonnes at present.
Yemen’s Houthis claim drone attack on refinery in Saudi capital
The Iran-aligned Houthi movement targeted a Saudi Aramco refinery in Riyadh using three Samad-3 drones, its military spokesman Yahya Sarea said on Friday. Six Samad-1 drones were also fired at Aramco facilities in the Saudi cities of Jizan and Abha. According to the energy ministry of the Kingdom, “these repeated acts of sabotage and terrorism on vital installations and civilian structures do not just target the Kingdom, but aim to undermine the security and stability of global energy supplies.”
Aramco says China joint venture to develop refinery and petrochemical complex
The Saudi Aramco joint venture in China, expected to be operational in 2024, combines a 300,000 barrel-per-day capacity refinery and ethylene-based steam cracker, with Aramco set to supply up to 210,000 barrels a day of crude oil feedstock. Huajin Aramco Petrochemical Company is a joint venture between Saudi oil giant Aramco and North Huajin Chemical Industries Group Corporation and Panjin Xincheng Industrial Group.
UAE committed to OPEC+ pact, no plan to up own output -WAM
Until now, OPEC+ has resisted calls from the United States and others to increase output, even as oil prices surge to more than $120 a barrel. The United Arab Emirates is committed to the OPEC+ agreement on monthly oil production and has not agreed to individually increase production outside that framework, UAE energy minister Suhail al-Mazrouei told state news agency WAM.
UAE committed to OPEC+ agreement and existing mechanism -UAE energy minister
The United Arab Emirates is committed to the OPEC+ agreement and its existing monthly production adjustment mechanism, the UAE energy minister, Suhail al-Mazrouei tweeted. “The UAE believes in the value OPEC+ brings to the oil market”. His comments came after UAE’s ambassador to Washington said his country favors an oil production increase and will be encouraging OPEC to consider higher output.
Italy looks to boost energy ties with Qatar in wake of Ukraine crisis
Energy Transition Minister Roberto Cingolani said that Italy aimed to rapidly cut more than half its Russian gas import and to be independent of Russian supplies within two or three years. However, “in an emergency period, one can fix a maximum price above which European operators cannot buy,” he warned, adding that the move was needed to prevent Russia’s Gazprom profiting from surging energy prices. Italian Foreign Minister Luigi Di Maio flew to Qatar on Saturday for two days of talks on boosting energy cooperation as Rome stepped up efforts in order to secure new gas supplies in light of the Ukraine crisis.
Higher oil prices boost Gulf markets, Aramco hits record high
Saudi Arabia’s benchmark share index ended 0.8% higher, with gains driven by Saudi Aramco which rose to a record high of 45 riyals and ended the session up nearly 3%. In the context of the war in Ukraine, “sanctions are pushing oil importers to look elsewhere for supplies at a time when the market is already struggling with rising demand and the sluggish supply policy laid out by OPEC,” said Daniel Takieddine, CEO MENA at BDSwiss. Abu Dhabi, Dubai and Qatar have seen their index rise too.
Oil settles higher on Russian supply disruption
Oil prices jumped on Monday as Western allies imposed more sanctions on Russia and blocked some Russian banks from a global payments system, which could cause severe disruption to its oil exports. The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, a group known as OPEC+, are due to meet on Wednesday. The group is expected to stick to plans to add 400,000 barrels per day (bpd) of supply in April. Ahead of the meeting, OPEC+ revised down its forecast for the oil market surplus for 2022 by about 200,000 bpd to 1.1 million bpd, underscoring market tightness.
No consultations with Saudi concerning U.S. potential release of oil reserves – source
No consultations have taken place with Saudi Arabia regarding a potential release of oil reserves by the United States and its allies, a senior Gulf source with knowledge of the matter said. “It is not customary for Saudi Arabia or key OPEC+ producers to conduct consultations outside the group on oil policy, especially prior to a meeting,” the source explained.
Iraq’s Kurdistan region presidency rejects federal court’s oil and gas ruling
The Kurdistan Region’s presidency in Iraq rejected on Monday a federal court ruling on its oil and gas activities, and said the region would continue to exercise its constitutional rights on the matter. The Kurdish regional government (KRG) has been developing oil and gas resources independently of the federal government, and, in 2007, enacted its own law that established the directives by which the region would administer these resources. The Kurdistan region produced 425,000 barrels per day of oil in January, according to a document by state-owned marketer Somo seen by Reuters.
Saudi Arabia’s sovereign fund lays out plan for green financing
Saudi Arabia’s sovereign wealth fund (PIF) laid out plans on Monday for raising green debt as the world’s top oil exporter strives to reach net zero carbon emissions by 2060. The PIF is at the center of Saudi Arabia’s ambitious plans to create new sectors and diversify revenues away from hydrocarbons. PIF published its green finance framework that will allow it to tap world markets to issue debt linked to environmentally friendly goals, including through the sale of green bonds.The Saudi government is also preparing its own green debt sales. Finance Minister Mohammed al-Jadaan said in October that advisers had been appointed but the format had not yet been decided.
Bahrain Says ‘Everything’s on the Table’ for Oil Privatizations
Bahrain is in the process of hiring advisers to help sell stakes in some of its oil and gas assets as the Gulf’s smallest economy looks to open up an industry closed to foreign investments for decades. Nogaholding, which owns Bahrain’s oil and gas assets, is due to appoint a consultant and a financial adviser to work on a national energy strategy. Bahrain would be following a strategy similar to its larger neighbors, Saudi Arabia and the United Arab Emirates. Nogaholding is also in the process of refinancing a $1.6 billion loan, which includes some environment, sustainability, and governance targets.
Saudi crown prince says kingdom still committed to OPEC+ oil agreement with Russia
Saudi Arabia remains committed to OPEC+ agreement, Crown Prince Mohammed bin Salman told French President Emmanuel Macron on February 27, in an endorsement for the bloc’s alliance with Russia amid that nation’s invasion of Ukraine.
OPEC+ seen sticking to plan despite price shock from Ukraine crisis
OPEC+ will probably stick to its plan of only gradually increasing oil production when it meets this week, according to several delegates, even after Russia’s invasion of Ukraine sent prices surging. Saudi Arabia, the world’s biggest oil exporter, is saying it’s committed to the OPEC+ agreement. The kingdom and neighboring UAE are among the few OPEC members with significant spare output capacity.
OPEC+ partners to decide whether to pump more oil
The Russian Foreign Ministry has announced that the UAE and Russian foreign ministers would meet today in Moscow to discuss “further expanding multifaceted Russia-UAE relations.” Gulf powerhouse Saudi Arabia has not reacted to the invasion, like the UAE, Bahrain, and Oman. Kuwait and Qatar have only denounced the violence, stopping short of criticizing Moscow. Gulf countries “understand that they need to diversify their alliances to compensate for the perceived withdrawal of the United States from the region,” Gadel told AFP.
Iran to enrich uranium to 20% even after nuclear deal – nuclear chief
Iran will continue to enrich uranium to 20% purity even after sanctions on it are lifted and a 2015 nuclear deal with world powers is revived. “(Uranium) enrichment … continues with a maximum ceiling of 60%, which led Westerners to rush to negotiations, and it will continue with the lifting of sanctions by both 20% and 5%,” said the head of Iran’s Atomic Energy Organization, Mohammad Eslami. Yet, Iranian officials had told Reuters earlier that Iran had agreed to suspend its 20% and 60% enrichment if an agreement is reached in the Vienna talks to salvage the 2015 pact.
OPEC+ deal seen on track despite Russia’s Ukraine invasion -sources
A deal among OPEC+ oil producers including Russia is showing no cracks so far after Russia’s invasion of Ukraine, OPEC+ sources said, and the group is likely to stick to a planned output rise the following week despite crude topping $100 a barrel. A Russian oil source said on Wednesday, OPEC+ has held some informal talks during which Moscow explained its position on Ukraine and the other OPEC+ countries seemed to show a neutral stance.
Oil tops $105/bbl after Russia attacks Ukraine
Oil prices jumped on Thursday, with Brent rising above $105 a barrel for the first time since 2014 before easing, after Russia’s attack on Ukraine exacerbated concerns about disruptions to global energy supply. Analysts say Brent is likely to remain above $100 a barrel until significant alternative supplies become available from U.S. shale or Iran, for example. The United States and Iran have been engaged in indirect nuclear talks in Vienna that could lead to the removal of sanctions on Iranian oil sales. Iran’s top security official, Ali Shamkhani, said on Twitter that it is possible to achieve a good nuclear agreement with Western powers after significant progress in negotiations.
Aramco shares rise to record high as oil tops $100 for first time since 2014
Saudi Aramco shares surged as much as 4.2% to a record high 42.25 riyals ($11.26) as oil prices breached the $100 a barrel after Russia attacked Ukraine.
Qatar’s LNG production capacity to reach 126 mln T a year by 2027, says Emir
Qatar’s Emir Sheikh Tamim bin Hamad al-Thani said on Tuesday that Qatar’s liquefied natural gas production capacity will rise to 126 million tonnes a year by 2027. Al Thani touted a carbon capture facility Qatar is building – the biggest in the Middle East – he said, which will isolate and store 2.5 million tonnes of carbon per year in four years. By 2030, the facility will isolate 9 million tonnes per year. He adds that Qatar is also ready for cooperation with Iran and Iraq on the gas market. Meanwhile, Iran’s President Ebrahim Raisi said Iran has high capacity for gas production for domestic use and exports and will play an important role in international markets.
Iraq aims to shift investment priority from oil to gas sector, minister says
Iraq aims to shift its investment priority from the oil sector to gas for the first time in the country’s history, oil minister Ihsan Abdul-Jabbar said on Tuesday at a gas exporters conference in Doha. This would allow Iraq to increase its production of liquefied petroleum gas (LPG) and distillates, Abdul-Jabbar added.
Qatar says “almost impossible” to quickly replace Russian supplies to Europe
Neither Qatar nor any other single country has the capacity to replace Russian gas supplies to Europe with liquefied natural gas (LNG) in the event of disruption due to a conflict between Russia and Ukraine, Qatar’s energy minister said on Tuesday. With most of Qatari volumes locked into long-term contracts mostly to Asian buyers, the amount of divertable volumes that can be shipped to Europe is only 10-15%, Saad al-Kaabi added. “Most of the LNG is tied to long-term contracts and destinations that are very clear. So, to replace that sum of volume that quickly is almost impossible”. Thus, Qatar and other countries such as Japan have recently been approached by the United States to reroute gas supplies to Europe in case conflict escalates.
Iraq aims to shift investment priority from oil to gas sector, minister says
Iraq aims to shift its investment priority from the oil sector to gas for the first time in the country’s history, oil minister Ihsan Abdul-Jabbar said on Tuesday at a gas exporters conference in Doha. This would allow Iraq to increase its production of liquefied petroleum gas (LPG) and distillates, Abdul-Jabbar added.
Qatar says “almost impossible” to quickly replace Russian supplies to Europe
Neither Qatar nor any other single country has the capacity to replace Russian gas supplies to Europe with liquefied natural gas (LNG) in the event of disruption due to a conflict between Russia and Ukraine, Qatar’s energy minister said on Tuesday. With most of Qatari volumes locked into long-term contracts, mostly to Asian buyers, the amount of divertable volumes that can be shipped to Europe is only 10-15%, Saad al-Kaabi, the energy minister, added. “Most of the LNG is tied to long-term contracts and destinations that are very clear. So, to replace that sum of volume that quickly is almost impossible.” Thus, Qatar and other countries, such as Japan, have recently been approached by the United States to reroute gas supplies to Europe in case conflict escalates.
OPEC+ compliance with oil output cuts near 130% in January, source says
As producers fell further behind their target and signaling a tight market that could push prices higher, OPEC+ is undoing output cuts put in place after the pandemic slashed demand. The 129% compliance in January cited by the source would be the highest in more than two years and marks a rise from 122% in December and 117% in November. Compliance from OPEC countries was 133% in January, while non-OPEC producers stood at 123%, according to data provided by the source. The head of International Energy Agency’s (IEA) Fatih Birol has called on OPEC+ to narrow the gap between their oil production targets and actual output.
Oil falls on prospect of Iran oil sanctions easing
Brent posted a small 0.9% rise in its ninth weekly gain, while WTI fell 1.7% week, snapping an eight-week rally. Fears over possible supply disruptions resulting from the Russian military presence at Ukraine’s borders limited losses this week. The West has threatened Russia, a top oil and gas supplier, with new sanctions if it attacks Ukraine; Russia denies planning any attacks. The oil market rose slightly in after-hours trading after U.S. President Joe Biden said that he was convinced Russian President Vladimir Putin had made a decision to invade Ukraine in the coming days. A senior European Union official said that a U.S.-Iranian deal to revive Iran’s 2015 nuclear agreement with world powers was close but success depended on the political will of those involved. Adding pressure onto WTI, U.S. drillers added four oil rigs this week, with the rig count.
OPEC+ would seek to bring Iran into oil supply deal
OPEC+ will work to integrate Iran into its oil supply-limiting accord should an agreement be reached on reviving its nuclear deal with world powers, sources close to the group said, seeking to avoid market share competition that could hit prices. Due to the impact of sanctions on its exports, Iran is exempt from the existing deal between the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, to limit oil supply. While that exemption allows Iran to boost output, OPEC+ would eventually seek to bring Iran into the accord, sources said. OPEC+ sources have also made the point that extra Iranian supply could also help plug the hole in OPEC’s output target misses.
Oil slides 2% as Iran talks offset Ukraine crisis
Oil prices fell about 2% on Thursday as talks to resurrect a nuclear deal with Iran entered their final stages and could unlock more crude supplies, but losses were limited by tension between top energy exporter Russia and the West over Ukraine. “(The) oil market is locked in a tug of war between Iranian sanctions relief and Russian-Ukraine tensions,” said Stephen Brennock at brokerage PVM Oil. However, tension over a possible Russian invasion of Ukraine continued to support oil markets because of the potential disruption to energy supplies.
Qatar Energy sells April al-Shaheen at record premiums – sources
Qatar Energy has sold al-Shaheen crude loading in April at record premiums, two trade sources who track the grade closely said on Thursday. The four cargoes were sold in a tender at an average premium of $4.44 a barrel to Dubai quotes, several trade sources said, a jump from $2.67 on average last month.
Qatar LNG exports down on mega trains outage
Exports of liquefied natural gas (LNG) from Qatar’s Ras Laffan liquefaction plant have been lower over the past few days as two of the facility’s mega trains have been down. Qatar, one of the world’s top LNG producers, has recently been approached by the U.S. to reroute gas supplies to Europe in case Russia attacks Ukraine and the United States imposes sanctions on Moscow. It has most of its volumes locked up under long-term contracts mostly to Asian buyers but also sends cargoes to Europe. Qatar Energy plans to grow its LNG output by 40% with the north field expansion project, expected to come online by 2026.
IEA’s Birol again urges OPEC+ to narrow gap between oil targets and output
OPEC+ oil producers have raised their output target by 400,000 barrels per day (bpd) each month since August as they unwind production curbs. However, they have repeatedly failed to hit those targets as some producers struggle to restore output. The IEA in its last monthly report said the gap between the target and output in January had widened to 900,000 bpd. The UAE Energy minister, Suhail al-Mazrouei, stated tensions between Russia and the West were driving oil prices rather than a fundamental shortage that would warrant accelerated output increases.
Kurdish PM, Qatari energy minister discuss Kurdistan’s “huge gas potential”
The Prime Minister of Iraq’s Kurdistan region Masrour Barzani said on Wednesday that he explored Kurdistan’s “huge gas potential” in a meeting with Qatar’s Minister of State for Energy Affairs Saad al-Kaabi. Delegations from both governments also discussed energy investment, renewables, and regional energy cooperation, Barzani said on Twitter.
U.S. crude stockpiles rise despite Cushing draw, record fuel demand – EIA
Fuel stocks fell and demand surpassed the previous week’s record, with total product supplied over four weeks averaging 22.1 million barrels per day, according to the EIA. The U.S. economy has recovered rapidly from the coronavirus-induced recession, boosting demand for fuels.
South Korea, Iran discuss resuming oil trade, unfreezing funds
South Korea and Iran have held working-level talks on resuming imports of Iranian crude oil and unfreezing Iranian funds held in the East Asian nation, South Korea’s foreign ministry said on Wednesday. South Korea was previously one of Iran’s leading Asian oil customers. Iran and South Korea are also discussing the trading of crude oil and oil products, on the condition sanctions are lifted as progress is made in nuclear negotiations, the statement said.
Iraq’s $27 bln TotalEnergies deal stuck over contract wrangling
A $27 billion deal between France’s TotalEnergies and Iraq that Baghdad hoped would reverse the exit of oil majors from the country has stalled amid disputes over terms and risks being scrapped by the country’s new government. Iraq has a history of international companies complaining with poor revenue on investments in the country. TotalEnergies agreed last year to invest in four oil, gas and renewables projects in the southern Basra region over 25 years. The deal, signed by Iraq’s oil ministry in September 2021, followed a visit from French President Emmanuel Macron. The terms, which have not been made public or previously reported, have raised concerns from Iraqi politicians, and according to sources close to the deal are unprecedented for Iraq. A group of Shi’ite lawmakers wrote to the oil ministry in January demanding details of the deal and asking why it was signed without competition and transparency, according to a copy of the letter seen by Reuters.
UAE energy minister says infrastructure well-protected against attacks
UAE energy minister Suhail al-Mazrouei said on Monday that infrastructure in the UAE was well-protected against attacks and that the country had diversified its electricity infrastructure and has spare capacity. In recent weeks, the Iran-aligned Houthis have waged an unprecedented string of largely failed missile strikes on UAE targets that have triggered Emirati and U.S. air defenses and seen American troops briefly taking shelter.
Saudi Arabia transfers Aramco shares worth $80 bln to state fund
Saudi Arabia’s Crown Prince Mohammed bin Salman has transferred 4% of Saudi Aramco shares worth $80 billion to the kingdom’s sovereign wealth fund, the government said on Sunday. The shares will bolster the Public Investment Fund’s (PIF) strong financial position and high credit ratings in the medium term, the crown prince said in a statement. The fund is the prince’s vehicle of choice to transform the Saudi economy and diversify away from oil revenues.
Biggest Energy Firms in UAE Boost Spending on Surging Demand
The largest listed energy companies in the United Arab Emirates are ramping up spending to meet soaring demand for everything from fuels to electricity. ADNOC Drilling Co. boosted capital expenditure by 34% last year to $505 million, the unit of Abu Dhabi’s government-owned oil giant said in an earnings statement on Friday.To boost renewable energy production in the region, Taqa is developing solar power plants and announced plans to buy into Abu Dhabi’s largest renewable energy company. Surging oil and natural gas prices also helped the company bolster profit from its own fields, mainly in the U.K. North Sea. Taqa and ADNOC, which is also buying into the emirate’s clean energy producer, plan to invest globally to more than double the amount of green energy they produce. They are targeting 50 gigawatts of green power capacity by the end of this decade.
Biden, Saudi King Discussed OPEC+, Oil Stability and Yemen
U.S. President Joe Biden and King Salman of Saudi Arabia discussed energy supplies in the face of soaring fuel prices and developments in the Middle East, including Iran and Yemen, in a telephone call on Wednesday. The two leaders committed to ensuring the stability of global energy supplies, the White House said in a statement. Last week, OPEC+ agreed to stick to moderate rises in its oil output, with the group struggling to meet existing targets and wary of responding to calls on its strained capacity for more crude from top consumers to cap surging prices. High oil prices are a risk to the Biden administration ahead of November’s congressional elections in which his fellow Democrats will defend slim majorities in the Senate and U.S. House of Representatives. A U.S. source familiar with the call said, “Saudi Arabia has historically played a vital role in ensuring global energy markets are well supplied to support strong and resilient economies. Oil has also been supported by the tension in Ukraine as Russia has put more than 100,000 troops on its borders.
Iraq may import Qatari gas in 15 months if talks, infrastructure finalized
Importing the gas includes building the infrastructure and this will take at least a year to 15 months, depending on the agreement. This needs to happen because Iraq cannot continue to “rely on one source for gas.” Iraq imports Iranian gas and electricity to plug power shortages, but supply from its neighbor has been intermittent due to technical and financial problems. Iran cut or reduced gas and electricity supply to Iraq last year and in recent months, prompting Iraq to look for alternatives such as Qatari gas. Iraq didn’t receive any gigawatts last summer and current gas supply is 8 MMcf/d. One issue is the lack of penalties in the contract in case of non-supply, Karim added. The electricity ministry has also signed agreements to import power from Saudi Arabia, Jordan, Turkey and the grid of the six-member Gulf Cooperation Council via Kuwait. GCC countries include Saudi Arabia, Kuwait, Bahrain, Qatar, Oman and the UAE
UAE Expands Strategic Oil Hub To Counter Iranian Threat
The announcement, that deliveries have now begun on the Fujairah Terminal expansion by Abu Dhabi (AD) Ports Group, positioned UAE’s Fujairah as an alternative global crude oil storage facility and transit hub to the perennially troublesome Strait of Hormuz. This push from Fujairah comes after the finalization in July 2021 of Iran’s own game-changing crude oil storage, transport and delivery mechanism, the Jask Oil Terminal and the 42-inch Guriyeh-Jask pipeline. The Guriyeh-Jask pipeline allows Tehran the option of disrupting all other oil supplies that travel through the Strait of Hormuz – around 35 percent of the world’s total.Part of the positive backdrop for the continued expansion of the Fujairah hub was always expected to be the trade flows coming out of the Dubai Multi-Commodities Centre, with more storage capacity allowing traders greater flexibility in their deals, and a very supportive financial infrastructure created by the Fujairah authorities. This proved to be the case and Fujairah further stands to benefit from the ongoing rise in volumes traded over the recently established Abu Dhabi-based ICE Futures Abu Dhabi (IFAD), with its focus on the trading of futures contracts for the light, sweet Murban crude oil that constituted around half of the UAE’s total near-4 million bpd crude oil production before the outbreak of the COVID-19 pandemic in 2020
India’s top refiner raises Iraq oil supplies to offset Mexico cuts – sources
Indian Oil Corp (IOC), the country’s top refiner, will increase crude purchases from Iraq by 11.5% in 2022 to 390,000 barrels per day (bpd), partly to make up for a shortfall from Mexico and a possible supply cut from Kuwait, two sources familiar with the matter said. IOC has resorted to buying higher volumes from Iraq as Mexico is curbing supplies as it opens a new refinery, sources said. Iraq is the top supplier of oil to India and its market share there is set to rise as another refiner Hindustan Petroleum Corp will also buy more crude from the Middle Eastern nation.
UAE’s ADNOC mulls sale of green bonds as it seek ESG funds
Abu Dhabi’s state oil producer is considering a sale of green bonds for the first time. ADNOC is speaking to banks about a possible green issuance, the people said. The company, which pumps almost all the crude in the UAE, may opt instead for sustainability-linked bonds, which provide more flexibility than green bonds because they’re not tied to specific projects, said the people. ADNOC is a crucial part of the UAE’s net-zero target. The company is planning to spend billions of dollars on technology to capture carbon and manufacture hydrogen, a fuel which emits only water vapour when burned. It’s also involved in the UAE’s strategy to ramp up solar power through renewable-energy firm Masdar.
Middle East Crude Benchmarks jump to highest since November on Asia demand
Middle East crude benchmarks Oman and Dubai jumped to their highest since November on Tuesday as robust refining margins spurred demand in Asia. Complex refining margins in Asia are at their highest in more than three months, boosted by strong profits for gasoline, middle distillates and low-sulphur fuel oil. Brent’s premium to Dubai crude is also at its widest since November, making Atlantic Basin grades more expensive for Asian refiners. Iran said on Monday that Washington had to make a “political decision” regarding lifting sanctions on the Islamic Republic as Tehran’s demand for their full removal to revive a 2015 nuclear deal with world powers was non-negotiable.
Oil drops near $90 mark after weeks-long rally
Oil dropped to trade near $90 a barrel, taking a breather from a rally that’s propelled crude to its highest since 2014. Futures in New York fell as much as 1.7 per cent on Monday after seven weekly gains in which oil’s gained 22 per cent. Diplomats are set to return to Vienna on Tuesday to resume Iran nuclear negotiations, which are viewed as a path to restore the nation’s sanctioned oil to global markets. On Friday, the US signed several waivers related to Iran’s civilian nuclear activities to ease diplomatic efforts. The potential for eventual Iranian barrels as well as crude being overbought from last week’s rally is prompting the market to take a “pause to refresh”
Saudi Arabia’s Aramco raises oil prices as crude surges
Aramco’s decision came days after OPEC+ opted to increase its daily crude production by 400,000 barrels a day next month. Many energy analysts doubt the group, led by Saudi Arabia and Russia, will add that much to the market because of the supply problems among some of its members. State firm Saudi Aramco increased all grades for its main market of Asia in March. The company raised its key Arab Light oil for the region by 60 cents from February to $2.80 per barrel above the benchmark it uses.
ADNOC confirms new gas discovery offshore Abu Dhabi
This discovery marks the first from Abu Dhabi’s offshore exploration concessions. “The discovery of material natural gas resources in Offshore Block 2 underscores how ADNOC’s expanded approach to strategic partnerships is enabling us to accelerate the exploration and development of Abu Dhabi’s untapped hydrocarbon resources and create long-term value for the UAE,” said Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO.
Qatar can’t secure Europe’s gas supply unilaterally, says minister
Can Qatar supply extra gas to Europe if Russian flows are disrupted? As one of the world’s largest producers of liquefied gas (LNG), the Gulf state has become an essential ally of the West. Expectations are that Doha will step in if there are disruptions to gas supplies to Europe from Russia in the event of an escalation of tension with Moscow. Qatar is also seen as a long-term solution to Europe’s reliance on Russian gas. A major complication in the short term is that most of Qatar’s gas is shipped to Asia and China where the Gulf state’s customers agree to fixed, long-term contracts.
OPEC+ agrees on another gradual oil-output hike for March
OPEC and its allies agreed to make another modest output increase in March, sticking to their plan even as the failure of several members to deliver the scheduled monthly supply hikes stokes a rally in crude prices. After a brief meeting on Wednesday, the 23-nation coalition rubber-stamped the nominal revival of 400,000 barrels a day for March, according to a statement posted on its website. Widespread difficulties in restoring supplies increasingly place the burden on the group’s Gulf nations: Saudi Arabia, the United Arab Emirates, Iraq and Kuwait. That’s leaving traders anxious over the spare capacity available to cover any disruptions, whether deeper losses in Libya or another attack like last month’s drone strike in Abu Dhabi.
Iranian oil tanker to discharge 2 mln barrels in Venezuela, a document reveals
An Iranian supertanker carrying about 2 million barrels of condensate this week began discharging at Venezuelan state-run oil company PDVSA’s main oil port. Last year, the two state companies that are under U.S. sanctions exchanged some 4.82 million barrels of condensate for 5.55 million barrels of heavy crude, mostly transported in Iran-flagged vessels. Condensate is an extremely light oil.
Aramco CEO says energy transition “not going smoothly”
Although acknowledging the emergency to shift toward renewable energies, Saudi Aramco Chief Executive Amin Nasser said that investment in oil and gas was needed to run alongside new energy investments until the latter can realistically support rising consumption. Aramco aims to achieve net zero emissions from its operations by 2050 while also building hydrocarbon capacity and expanding its maximum sustained production capacity to 13 million barrels per day. Saudi Arabia’s ambitious goal of ‘net zero’ emissions of greenhouse gasses – mostly produced by burning fossil fuels – by 2060 had to go hand in hand with new energies as demand for conventional energy would likely prevail for, “quite some time”.
Oil dips from seven-year high as Russia tensions offset Fed tightening
Oil prices eased after Brent crude hit a seven-year high above $90 a barrel, while the market balanced concerns about tight worldwide supply with expectations the U.S. Federal Reserve will soon tighten monetary policy. U.S. crude fell 20 cents to $87.15 a barrel in a volatile session with both contracts see-sawing between positive and negative territory, amid tensions between Russia and the West and threats to the United Arab Emirates from Yemen’s Houthi movement that had added to oil market jitters. The market is starting to turn its attention to a Feb. 2 meeting of OPEC+, likely to stick with a planned rise in its oil output target for March. It has raised its output target each month since August by 400,000 barrels per day (bpd) as it unwinds record production cuts made in 2020.
Power grid link between Saudi Arabia, Iraq to produce 1 gigawatt of energy initially – state news
Following the memorandum reached by the both countries earlier this week, the power grid link between Saudi Arabia and Iraq is expected to produce one gigawatt of energy during the initial phase, the Saudi Energy Minister Prince Abdulaziz bin Salman al-Saud told Iraq’s state news agency INA
Oman launches first Middle East electricity spot market
Oman has formally launched the first in the Middle East electricity spot market. Concerned about increasing the efficiency of power procurement, the spot market will enable licensed generators for the first time to offer their surplus capacity at the most competitive rate. Responding to household energy costs – sensitive in the country that saw protests over unemployment – and to protests that occured, Omani finance minister Sultan al-Habsi has been parallelly reviewing electricity and water prices. Oman’s government also decided to cap power tariffs for residential consumers throughout 2022 at December 2021 levels.