Pipeline Magazine - Regional News Regional News-RSS Feed Fri, 17 Nov 2017 22:49:49 GMT ADNOC signs with Linde to explore new industrial gases complex https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/adnoc-signs-with-linde-to-explore-new-industrial-gases-complex/ Abu Dhabi National Oil Company (ADNOC) said it signed a memorandum of understanding with The Linde Group to explore the expansion of nitrogen facilities in Ruwais, Abu Dhabi, to meet future industrial demand. 2017-11-16 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/adnoc-signs-with-linde-to-explore-new-industrial-gases-complex/

Abu Dhabi National Oil Company (ADNOC) said it signed a memorandum of understanding with The Linde Group to explore the expansion of nitrogen facilities in Ruwais, Abu Dhabi, to meet future industrial demand.

The deal represents a continued commitment to joint business development by the two partners under the auspices of the joint venture, ADNOC Industrial Gases, established 10 years ago, ADNOC said.

As a first step under the agreement, Linde will carry out a Front-End Engineering and Design (FEED) study for new Air Separation Units, which are intended to satisfy the expanding nitrogen requirements of ADNOC’s gas processing, petrochemicals and refining businesses. Further steps will follow as the two companies grow together to meet expected demand for industrial gases from ADNOC’s Downstream businesses.

The agreement was signed by Abdulaziz Alhajri, Downstream Director ADNOC, and Bernd Eulitz, Member of the Executive Board of Linde, in the presence of Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO and Prof Dr Aldo Belloni, CEO of The Linde Group, on the side lines of the Abu Dhabi Petroleum Exhibition and Conference (ADIPEC).

“In line with its 2030 smart growth Strategy, ADNOC plans to expand and diversify its downstream refining and petrochemicals activities, while also optimizing efficiency and costs. As part of our strategic plan to increase volumes of industrial gases, the Ruwais Air Separation Unit Project will be carried out in two phases, each with the capacity to produce 70,000 cubic meters per hour of nitrogen,” said Al Hajri.

Eulitiz said: “With this planned capacity expansion, Linde and ADNOC further strengthen their commitment to working in partnership to ensure ADNOC’s industrial gases supply for its growing demand in Abu Dhabi, and creating value for both companies.”

ADNOC Industrial Gases is a joint venture between ADNOC (51 per cent interest) and Linde (49 per cent interest). It was established in 2007 under the name “Elixier”. The first plant – ELIXIER I – was commissioned in 2009 for the production and long-term supply of industrial gases to customers in Abu Dhabi. The company’s name was changed to ADNOC Industrial Gases, with the launch of ADNOC’s unified brand in October 2017.

ADNOC Industrial Gases produces gaseous nitrogen, liquid nitrogen and liquid oxygen at its sites in Abu Dhabi.

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ADNOC and Linde sign MoU to explore new industrial gases complex https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/adnoc-and-linde-sign-mou-to-explore-new-industrial-gases-complex/ ADNOC has signed a memorandum of understanding with The Linde Group to explore the expansion of nitrogen facilities in Ruwais, Abu Dhabi, to meet future industrial demand. 2017-11-16 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/adnoc-and-linde-sign-mou-to-explore-new-industrial-gases-complex/

ADNOC has signed a memorandum of understanding with The Linde Group to explore the expansion of nitrogen facilities in Ruwais, Abu Dhabi, to meet future industrial demand.

The agreement was signed by Abdulaziz Alhajri, Downstream Director ADNOC, and Bernd Eulitz, Member of the Executive Board of Linde, in the presence of Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO and Prof Dr Aldo Belloni, CEO of The Linde Group, on the side lines of ADIPEC.

This represents a continued commitment to joint business development by the two partners under the auspices of the joint venture, ADNOC Industrial Gases, established 10 years ago.

As a first step under the agreement, Linde will carry out a Front-End Engineering and Design (FEED) study for new Air Separation Units, which are intended to satisfy the expanding nitrogen requirements of ADNOC’s gas processing, petrochemicals and refining businesses. Further steps will follow as the two companies grow together to meet expected demand for industrial gases from ADNOC’s Downstream businesses.

“In line with its 2030 smart growth Strategy, ADNOC plans to expand and diversify its downstream refining and petrochemicals activities, while also optimizing efficiency and costs. As part of our strategic plan to increase volumes of industrial gases, the Ruwais Air Separation Unit Project will be carried out in two phases, each with the capacity to produce 70,000 cubic meters per hour of nitrogen,” said Al Hajri.

Eulitiz said: “With this planned capacity expansion, Linde and ADNOC further strengthen their commitment to working in partnership to ensure ADNOC’s industrial gases supply for its growing demand in Abu Dhabi, and creating value for both companies.”

ADNOC Industrial Gases is a joint venture between ADNOC (51 per cent interest) and Linde (49 per cent interest). It was established in 2007 under the name “Elixier”. The first plant – ELIXIER I – was commissioned in 2009 for the production and long-term supply of industrial gases to customers in Abu Dhabi. The company’s name was changed to ADNOC Industrial Gases, with the launch of ADNOC’s unified brand in October 2017.

ADNOC Industrial Gases produces gaseous nitrogen, liquid nitrogen and liquid oxygen at its sites in Abu Dhabi.

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Working together to tackle on-line crime https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/working-together-to-tackle-on-line-crime/ Sir Ronnie Flanagan, currently security advisor to Abu Dhabi Ministry of Interior, says cooperation is key to protect industry assets and people from cyber-attacks 2017-11-15 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/working-together-to-tackle-on-line-crime/

Sir Ronnie Flanagan, currently security advisor to Abu Dhabi Ministry of Interior, says cooperation is key to protect industry assets and people from cyber-attacks

Collaboration is the key to defeating the threat of cyber-crime across the oil and gas industry, according to a former senior police officer.

Sir Ronnie Flanagan, ex-Chief Constable of the Royal Ulster Constabulary (now Police Service Northern Ireland) was speaking as part of the Security in Energy sessions at ADIPEC.

“Defend, deter and develop,” are the main weapons industry can deploy to protect itself from online threats, the audience heard – but the message has to reach everyone with a vested stake in protecting the health of the energy business.

“There is a good example of collaboration in tackling cyber-attacks in the UK,” said Sir Ronnie. “The National Cyber Security Strategy 2016-21 is an example of a multi-layered attempt to tackle the issue. The UK Government has invested 1.9 billion pounds over five years to protect vital data.”

The project breaks down into three sections, he explained.

“The first is to defend systems, by having protection built in,” he audience heard. “The second is to deter attacks by giving investigative agencies the powers to identify and bring to justice those involved in this sort of activity. Then developing the knowledge of some of the brightest minds to put them to work in countering cyber-attacks.”

Drawing on his vast experience of police work Sir Ronnie opened his talk by emphasising the need for cooperation across public and private sectors, along with individuals.

“Policing is much too important and impactful on all of our lives to be left to the police alone,” he said. “Success means involving collaborations with other government agencies, education, transport, health and local government.

“Most of all, there needs to be a collaboration between the police and the community they serve.

“Northern Ireland, where I come from, has many different communities across geographic, socio-economic, business and religious areas. They have different needs and expect different services. Police have to listen to these demands and address different expectations.

“Police get things wrong, but when they do they have to improve and publically acknowledge mistakes. Most of all they must learn from them.”

The same lessons need to heeded by industry, explained Sir Ronnie, in tackling the threat of cyber-crime, which he said could come from hostile states, groups sponsored by hostile states, hacktivists or disaffected individuals within a company.

“We all take for granted these devices which allow us to plan our routes, book airline tickets and access knowledge instantly,” he said. “But we have to be aware that there are those with malicious intent who seek to exploit them for evil, criminal or even terrorist reasons.

“The Internet of Things, for example offers opportunities for the criminal, so does poor cyber-hygiene and insufficient training in necessary skills.”

“So the oil and gas industry must work together to collectively protect itself,” said Sir Ronnie.

“If we fail to act we will be outpaced but if we do take action in collaborative partnerships we can secure our industry and the people who work in it.”

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Desire for productivity in downstream is driving disruptive technology https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/desire-for-productivity-in-downstream-is-driving-disruptive-technology/ The downstream industry’s target for higher productivity and lower cost is driving disruptive technology and digitalisation, industry experts said at ADIPEC’s Downstream Global Business Leaders session. 2017-11-15 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/desire-for-productivity-in-downstream-is-driving-disruptive-technology/

The downstream industry’s target for higher productivity and lower cost is driving disruptive technology and digitalisation, industry experts said at ADIPEC’s Downstream Global Business Leaders session. 

On a panel titled ‘Rethinking technology to enhance industry performance and counteract markets disruptors’ Allen Burchett, global head, strategic projects at ABB said that as companies realise the new oil price scenario, they are looking increasingly at how to minimise cost and risk. “Going forward, there will be a greater focus on managing cost, project execution and optimisation across the value chain,” Burchett said. 

“We, as a manufacturer of automation technology, are seeing an integration trend for synergy savings and a focus on optimisation for distributed assets.” This is being answered by the use of technology such as IT, IOT, digitalisation and artificial intelligence to some extent,

 “When we think of downstream, we think of technology disruption - there are consistent themes on cost and production. Underlying themes comes down to managing bottomline, having safe environment and on schedule operations,” he said.

Omar Saleh, Regional Director, Manufacturing, Energy, Oil & Gas, and Resources, Middle East & Africa said in a recent survey of over 300 oil and gas professions, 40 per cent of the respondents expressed fear of not having a digital strategy would render them non-competitive.  

“We’re seeing the digital transformation happening. We used to talk about IT and OT convergence - this is a reality now and we rarely see the split,” Saleh said.

Technology solutions are helping downstream sector harness vast amounts of data and analysis it to deliver empowering capabilities that boil down to optimising, maximising profitability and ability to be agile to enter new markets, Sales said. 

The disruptive digital transformation is also enabling higher productively and ultimately transforming business models to uncovering new channels of revenues. 

“We’re seeing that there is a strategy being put in place with technology such as analytics, iCloud etc - who’s impact is beyond that of the specific technology. Companies are building capability towards value creation in what they can do with partners, customers while they building an eco system,” he said.

Ogan Kose, managing director, Accenture Strategy Energy said that while the take-up of disruptive technology is increasing, this is unlikely to displace jobs of people in the oil and gas industry. 

“Significant investment has been made to improve user interface so you will not spend time cleaning huge amounts of data. I don’t see a significant shift in workforce because the industry function they have is not easy to replace. We’re changing the way we do things but not replacing them with technology.”

Kose said that the modular approach on digitalisation if developed in line with talent development will ensure fresh talent continues to come into the industry.

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ADNOC and Cepsa sign agreement to evaluate LAB complex in Ruwais https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/adnoc-and-cepsa-sign-agreement-to-evaluate-lab-complex-in-ruwais/ The Abu Dhabi National Oil Company (ADNOC) and Cepsa signed a memorandum of understanding to evaluate a new world-scale Linear Alkyl Benzene (LAB) complex in Ruwais, Abu Dhabi. 2017-11-15 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/adnoc-and-cepsa-sign-agreement-to-evaluate-lab-complex-in-ruwais/

The Abu Dhabi National Oil Company (ADNOC) and Cepsa signed a memorandum of understanding to evaluate a new world-scale Linear Alkyl Benzene (LAB) complex in Ruwais, Abu Dhabi.

LAB is the most common raw material in the manufacture of biodegradable household and industrial detergents. It is also used in house cleaners, fabric softeners, and soap bars.

The companies plan to progress the basic engineering of the proposed LAB complex in 2018. It is envisaged that the facility will be integrated with the Ruwais refinery complex, and will incorporate DETAL-PLUSTM technology.

Abdulaziz Al Hajri, downstream director, ADNOC said: “This agreement provides the opportunity to work with Cepsa to identify areas for mutual collaboration that will contribute to our plans to maximise the value from every barrel we produce. ADNOC has a rich history of working with partners to unlock opportunities in its operations. Such partnerships continue to be an important enabler of our growth strategy and we see exciting opportunities ahead. We look forward to working with companies, such as Cepsa, to realize our ambitious growth goals.”

Cepsa, a Spanish integrated oil company, wholly owned by Abu Dhabi’s Mubadala Investment Company, has similar growth aspirations and over five decades of experience in LAB.

Pedro Miró, CEO of Cepsa, said: “ADNOC and Cepsa bring complementary strengths to the project, ADNOC providing resources and expertise in the feedstock area from its state of the art refinery in Ruwais, while Cepsa as a LAB market leader, provides the leading LAB technology, DETAL-PLUSTM jointly developed by CEPSA and UOP, coupled with commercial and operational expertise.”

Musabbeh Al-Kaabi, CEO Petroleum and Petrochemicals, Mubadala Investment Company said: “We welcome this further extension of the co-operation between ADNOC and our portfolio companies. This development is a strong example of our role in supporting the diversification of Abu Dhabi's industrial base. It will also help maintain Cepsa’s global leadership position in LAB, providing a base to meet growing demand both in the region and beyond into Asia.”

The Indian Ocean Basin LAB market is expected to grow at a CAGR of 5 per cent between 2016 and 2030, according to the latest market research, conducted by Colin A. Houston & Associates Inc., a leading global market research and advisory company. The Asia-Pacific region is the largest and highest growing market for LAB, with high demand from the industrial and household cleaning products sector. With strong transportation links, Abu Dhabi’s strategic location allows easy access to serve these growth markets.

Under ADNOC’s 2030 Strategy, ADNOC has placed significant focus on its downstream business with plans to double crude refining capacity and triple production of petrochemical and higher value products to take full advantage of the fastest growing segment in the oil and gas industry.

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ADNOC signs a deal to expand CNPC partnership https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/adnoc-signs-a-deal-to-expand-cnpc-partnership/ ADNOC has signed a framework agreement, with the China National Petroleum Corporation (CNPC) covering various areas of potential collaboration including potential offshore opportunities and the sour gas development projects. 2017-11-15 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/adnoc-signs-a-deal-to-expand-cnpc-partnership/

ADNOC has signed a framework agreement, with the China National Petroleum Corporation (CNPC) covering various areas of potential collaboration including potential offshore opportunities and the sour gas development projects.

The MoU was signed by H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Chief Executive Officer of ADNOC Group, and H.E.  Wang Yilin, CNPC Chairman. It covers discussions between the two companies on possible CNPC participation in the Lower Zakum, Umm Shaif and Nasr concession areas and the Bab, Bu Hasa, Ghasha and Hail sour gas development projects, as well as other related projects.

H.E. Dr. Al Jaber said: “In support of our 2030 smart growth strategy we are focused on creating the greatest value from our partnerships to capitalise on our oil and gas reserves and maximise the returns from our offshore assets.

“We are keen to work with partners who can share technology and capital, enable market access. Equally, we want partners who can deploy world-class engineering solutions for our mutual benefit, ultimately enabling us to drive a more profitable upstream business and strong returns to Abu Dhabi and the wider UAE.”

In February, ADNOC signed an agreement with CNPC, awarding it an 8 per cent interest in Abu Dhabi’s onshore oil concession, operated by ADNOC Onshore. The agreement has a term of 40 years, backdated to January 1 2015.

H.E. Wang Yilin said: “This framework agreement marks a new stage in CNPC’s partnership with Abu Dhabi and ADNOC. We look forward to continuing the good faith discussions which have already taken place and making progress on strengthening our relationship with ADNOC.”

CNPC is China's largest oil and gas producer and supplier, as well as one of the world's major oilfield service providers. It produces 52 per cent of China’s crude oil and 71 per cent of its natural gas production. CNPC also has oil and gas assets and interests in 37 countries in Africa, Central Asia-Russia, America, the Middle East, and Asia-Pacific.

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ADNOC to upgrade its giant Bab onshore field and increase production capacity https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/adnoc-to-upgrade-its-giant-bab-onshore-field-and-increase-production-capacity/ The Abu Dhabi National Oil Company (ADNOC) said it would invest significantly to upgrade its Bab field, re-energising one of its largest onshore producing assets to sustain and enhance output. 2017-11-14 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/adnoc-to-upgrade-its-giant-bab-onshore-field-and-increase-production-capacity/

The Abu Dhabi National Oil Company (ADNOC) said it would invest significantly to upgrade its Bab field, re-energising one of its largest onshore producing assets to sustain and enhance output.

This is an important step towards delivery of the ADNOC group’s 2030 smart growth strategy that seeks to increase its crude oil production capacity and reduce cost, creating a more profitable upstream business, ADNOC said in a statement.

ADNOC said its plans to upgrade operations at its maturing Bab field will enable production levels to be sustained and production capacity to be increased from 420,000 barrels of oil per day to 450,000 barrels of oil per day by 2020.

An Engineering, Procurement and Construction (EPC) contract has been awarded to China Petroleum Engineering & Construction Corporation (CPECC), affiliated to China National Petroleum (CNPC), by ADNOC Onshore, ADNOC’s subsidiary which operates the field, to carry out the works.

H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO said: “The decision to modernise our production infrastructure at the large Bab field, is another clear signal that ADNOC is making smart investments to increase production capacity, enhance the long-term productivity and maximise the profitability of Abu Dhabi’s oil reserves, as we create a more profitable upstream business, in line with our Supreme Petroleum Council approved 2030 growth strategy.”

The asset upgrade will include the deployment of cluster drilling, in which multiple oil wells are co-located in one place, for the first time at Bab, reducing cost and the environmental footprint of drilling operations. At the same time, digital oil field technology will be introduced to remotely monitor and analyse well performance. Utilisation of advanced engineering and value-add technologies is fundamental to enhancing the profitability of ADNOC’s upstream business, by driving operational efficiencies and ensuring sustainable production from its maturing fields.

Abdulmunim Al Kindy, Director of Upstream at ADNOC said: “CPECC has been selected to deliver this important project after an extremely competitive tendering process, ensuring we create the greatest value from the investment required at Bab and partner with an organization which can deploy effective engineering and value-add technologies that support our company-wide drive for greater efficiency and reduced cost while maintaining highest safety standards.

“The Bab field already plays an important role in achieving ADNOC’s production capacity target of 3.5 million barrels of oil per day over the course of 2018. The deployment of advanced digital oil field management technologies is a crucial enabler if we are to optimise recovery and deliver a more profitable upstream business, as we transform the company and balance efficiencies with the right investments for growth.”

In addition to upgrading the Bab production operations, the investment will increase water and gas handling capabilities and deliver an additional degassing and processing train, to be built alongside the existing seven trains that condition crude oil for export.

Digital oil field automation and data driven information technologies are transforming the way ADNOC manages its assets. Profitability is being improved through greater field productivity and predictability, increased production and reduced costs. Continuous monitoring provides a consistent real-time view of the status and performance of an asset, enhancing the decision-making process and eliminating time-consuming, non-value-adding tasks. Automation also leads to better safety as remote monitoring reduces human and environmental exposure to risk in the field.

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OPEC predicts oil and gas to remain most important energy source to 2040 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/opec-predicts-oil-and-gas-to-remain-most-important-energy-source-to-2040/ The latest edition of the OPEC World Oil Outlook predicts oil will remain the world’s largest source of energy over the next two decades, despite the increasing importance of renewables. 2017-11-14 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/opec-predicts-oil-and-gas-to-remain-most-important-energy-source-to-2040/

The latest edition of the OPEC World Oil Outlook predicts oil will remain the world’s largest source of energy over the next two decades, despite the increasing importance of renewables.

Released in an exclusive briefing to senior industry executives at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), the latest edition of the World Oil Outlook forecasts that oil will supply just over 27 percent of worldwide energy needs in 2040, while natural gas will see its share at slightly more than 25 percent.

The scenario would see demand grow from 95.4 million barrels per day, in 2016, to reach 111.1 million barrels per day by 2040, with the global economy growing by an average of 3.5 percent per year during that time. Meeting this demand would require an overall investment of around US US$10.5 trillion across upstream, midstream and downstream operations.

In his introduction to the report, OPEC Secretary General, H.E. Mohammad Barkindo, said the 2017 outlook was more positive than last year, partly thanks to oil exporting nations’ efforts to stabilise the market.

“The past year has been an historic one for OPEC and the global oil industry,” Barkindo said. “Since publication of the World Oil Outlook, in early November last year, the oil market has undergone significant change and transition. It has been a period where the rebalancing of the global oil market has gathered vital momentum, buoyed by a number of important factors.”

However, while prospects for the industry are strong, the World Oil Outlook predicts demand for oil will grow more slowly than the overall demand for energy. Renewables will see the fastest rate of annual growth, at 6.8 per cent per annum, although their overall share of the energy mix is only expected to reach 5.4 percent by 2040 due to their lower starting base.

“Alongside an ever-expanding global population and the critical importance of reducing energy poverty, these growth rates mean energy demand is expected to increase by close to 100 million barrels of oil equivalent a day between 2015 and 2040,” Barkindo said.

“OPEC is greatly supportive of the ongoing development of renewables and many of our member countries have vast solar and wind resources, with significant investments being made in these areas.”

First published in 2007, the World Oil Outlook is one of OPEC’s flagship publications. It provides an in-depth review and analysis of the global oil industry, offering a thorough assessment of various trends and challenges in the medium and long-term development of the industry. This year marks the 11th edition of OPEC’s World Oil Outlook.

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ADNOC to increase production capacity at Upper Zakum Field https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/adnoc-to-increase-production-capacity-at-upper-zakum-field/ ADNOC, ExxonMobil and Japan’s INPEX Corporation (INPEX), announced on the side lines of ADIPEC, an agreement to increase production capacity from the Upper Zakum oil field to 1 million barrels per day by 2024. 2017-11-14 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/adnoc-to-increase-production-capacity-at-upper-zakum-field/

ADNOC, ExxonMobil and Japan’s INPEX Corporation (INPEX), announced on the side lines of ADIPEC, an agreement to increase production capacity from the Upper Zakum oil field to 1 million barrels per day by 2024.

The agreement was affirmed at a ceremony attended by H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Chief Executive Officer of ADNOC Group, Darren W. Woods, Chairman and Chief Executive Officer of Exxon Mobil Corporation, and Toshiaki Kitamura, President and Chief Executive Officer of INPEX. Under the agreement, ExxonMobil and INPEX have been granted a 10-year extension for the concession, which was due to expire on December 31, 2041, until December 31, 2051.

H.E. Dr. Al Jaber said: “ExxonMobil and INPEX, alongside our other partners, have played an important role in the development of our oil and gas assets. This agreement is another milestone in our efforts to forge partnerships that bring technology, expertise and capital aimed at delivering greater economic value and levels of recovery from our resources.

“As we continue our transformation into a more commercially driven and performance led oil and gas company, we are focused on securing partnerships to allow us to unlock and maximize value and secure market access. In the upstream, we are adapting to the evolving market environment by driving down production costs and increasing our crude oil production capacity. We are also focusing on the application of value add and innovative technologies and are leveraging big data to drive efficiencies and optimize production.”

The Upper Zakum oil field, located offshore Abu Dhabi, is the second largest offshore oil field and the fourth largest oil field in the world. Oil was first discovered in 1963 and ADNOC took the decision, at its own risk, to develop the field, in 1977. Subsequently, in 1978, JODCO, a wholly-owned INPEX subsidiary, partnered with ADNOC in developing the field, followed by Exxon, in 2006. In the same year, the Upper Zakum joint venture partners began studying options to increase production capacity from 500,000 barrels per day to 750,000 barrels per day, eventually pursuing the plan to use an innovative artificial island-based development combined with extended-reach drilling technology to increase recovery and minimise infrastructure.

“This agreement represents a new milestone for Abu Dhabi’s oil production and demonstrates ExxonMobil’s long-term commitment and partnership with the UAE,” Woods said. “We look forward to continuing our successful efforts to increase production capacity from Upper Zakum. By leveraging the strengths of the Upper Zakum joint venture partners, we are able to maximize the value of available resources.”

Kitamura said: “This outcome, in part, is a testament to the unwavering long-term partnership that INPEX has built and maintained with Abu Dhabi, as well as INPEX’s commitment to the development of the Upper Zakum oil field since 1978. I am confident this plan will contribute to the energy security of Japan and prove to be beneficial for all stakeholders for many years to come.”

The megaproject involved the construction of four artificial islands in shallow water to create what is effectively an onshore environment in the offshore field. Unlike the initial Upper Zakum development, which comprises around 450 wells and more than 90 platforms, the islands provide a large enough footprint to accommodate drilling rigs and house drilling and production equipment and personnel centrally in offices and living quarters, at lower cost and with enhanced safety and comfort for workers. The ongoing costs associated with platform jacket maintenance and satellites are eliminated.

The development will continue to use extended-reach drilling and completion technologies that have proven effective in increasing offshore production.

Extended-reach drilling is about tapping into reservoirs from a distance, drilling first vertically, then drilling at high angle to access the reservoir target and finally drilling horizontally in the reservoir section to maximise reservoir access and recovery. Through extended-reach drilling, the man-made islands at Upper Zakum avoid the need for additional platforms with costly offshore operations, and instead enable cheaper land-based drilling operations. Extended-reach drilling adds further value to drilling operations by reducing the need for costly subsea equipment and pipelines.

The development will also utilise state-of-the-art reservoir characterization and modelling techniques, as well as modularly expanding existing infrastructure and facilities to maximize capital efficiency and lower costs. ADNOC and its partners have applied uncertainty modelling in the development of the Upper Zakum offshore oil fields, in challenging carbonate geological conditions, to prepare the ground for optimal value creation in the long term.

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Gas proves to be top future energy opportunity https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/gas-proves-to-be-top-future-energy-opportunity/ UAE, Oman, Egypt and Pakistan’s energy ministers discussed energy opportunities and collaboration at the Ministerial Panel on the first day of the Abu Dhabi International Petroleum Exhibition and Conference 2017 with gas presenting attractive opportunities driven by increasing demand. 2017-11-14 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/gas-proves-to-be-top-future-energy-opportunity/

UAE, Oman, Egypt and Pakistan’s energy ministers discussed energy opportunities and collaboration at the Ministerial Panel on the first day of the Abu Dhabi International Petroleum Exhibition and Conference 2017 with gas presenting attractive opportunities driven by increasing demand.

At the base of future energy opportunities is the oil price and 24 countries that have agreed to an OPEC-led plan to bring inventories to their five-year average.

The Organization of the Petroleum Exporting Countries and allied non-OPEC producers including Russia agreed to cut output by about 1.8 million barrels per day from Jan. 1, and extended the existing six-month supply cut to end of March 2018. OPEC will review policy at a Nov. 30 meeting in Vienna where experts expect the production cut to be extended to the end of 2018.

“This group of responsible countries did something remarkable and I think they would continue to do what it takes to take us to the next level,” said H.E. Suhail Al Mazrouei, Minister of Energy and Industry, UAE. “We’re still 158 million barrels above the average, which means there is a potential for an extension.”

Al Mazrouei said he was hopeful for an agreement that would lead to a more stable market and continued investments in oil and gas. He added that the healthy oil price level is no longer determined by NOCs by production management but by the levels of investment needed for the industry to flourish.

UAE’s state-owned oil and gas group Abu Dhabi National Oil Company recently announced that it would open up opportunities for partnerships. Al Mazrouei said the country is looking for partnerships which are fair, competitive long-lasting.

“I think there is a new wave of newcomers as this is a competitive market as well,” he said, adding that more projects are anticipated with countries who were historically producers and are now consumers such as Japan, Korea, China and India. “We want to see two ways partnerships, where we give them opportunity to invest and we invest with them,” he said.

H.E. Mohammed Hamad Al Rumhy, Minister of Oil and Gas, Oman said LNG is playing a growing role in and around the region with countries from Jordan to Japan building receiving terminals, including producing and new emerging countries such as Pakistan.

“Things are changing very fast and its becoming an important market. The challenge has been to find enough gas and our project Khazzan will play a big role in this,” Al Rumhy said.

BP announced in September it began production from Oman’s oil field Khazzan - the largest of the seven projects it is bringing online this year, which is operates in a partnership with Oman Oil Company Exploration and Production, with phase one of the Khazzan development made up of 200 wells.

Meanwhile, Pakistan’s Minister of State for Petroleum, Jamal Kamal Khan said the country has a significant consumption of energy with the country’s GDP growth anticipated at 6.5 per cent in the coming year. This is opening up farm-in opportunities for oil and gas investors, he said.

“We’re opening our first LNG terminal, with the next terminal to be commissioned in coming months, with two more in coming years. We haven’t covered the whole energy sector - gas and power needs haven’t been met. We are really trying to improve upstream resources,” he said.

“Pakistan still has the appetite to consume more energy. We’re looking now at how Oman can come into serving our LNG needs.”

Al Mazrouei meanwhile said the UAE, existing investors in Pakistan’s refinery industry is looking at expanding. “It has been profitable and stable. If you ask me if we will invest further, I will say yes, and renewable energy has a huge potential in Pakistan. Masdar is looking to explore opportunities and enhance refinery in Pakistan. We are always keen on being an investor there.”

Meanwhile, Egypt’s Minister of Petroleum and Mineral Resources, Tarek El Molla said after economic reforms in the country, such as cutting energy subsidies and floating its currency, the country is attracting more international oil companies and investments. “Lately, we have seen Al Zohr attracted more investors with BP joining Eni. This shows we are on steady growth,” El Molla said.

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ADNOC says to list minority stake in ADNOC Distribution on ADX https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/adnoc-says-to-list-minority-stake-in-adnoc-distribution-on-adx/ ADNOC’s H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State and group CEO announced plans to list a minority stake in ADNOC Distribution, the UAE’s largest fuel distributor and convenience store operator, on the Abu Dhabi Securities Exchange (ADX). 2017-11-13 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/adnoc-says-to-list-minority-stake-in-adnoc-distribution-on-adx/

ADNOC’s H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State and group CEO announced plans to list a minority stake in ADNOC Distribution, the UAE’s largest fuel distributor and convenience store operator, on the Abu Dhabi Securities Exchange (ADX).

Delivering the opening keynote address at ADIPEC, one of the world’s leading oil and gas conferences and exhibitions, H.E. Dr Al Jaber said the decision to launch the ADNOC Distribution IPO is an historic moment for ADNOC and the first time it has placed shares, of one of its subsidiary companies, onto the public markets.

The planned IPO of ADNOC Distribution will be subject to the finalising of all regulatory approvals, including those approvals from the UAE Securities and Commodities Authority, and the ADX.

“The planned IPO, to be listed on the Abu Dhabi Securities Exchange, will offer both UAE and international investors an unprecedented opportunity to invest alongside ADNOC in one of the region’s leading retail brands,” H.E. Dr Al Jaber said.

“This marks a major milestone in our history and a significant step-change in our transformation. Importantly, it also signals a new chapter in the growth and development of the UAE’s capital markets. But to be clear, ADNOC at a holding company level, will always remain wholly owned by the Abu Dhabi Government.”

H.E. Dr Al Jaber said the proposed IPO is in line with the vision of the UAE’s wise leadership, which has set ambitious socio-economic goals to ensure a sustainable and prosperous future for the nation. Coupled with ADNOC’s new approach to partnership and active portfolio management, he said, the planned IPO would underpin ADNOC’s integrated 2030 strategy that is focused on unlocking the full potential of its entire value chain to deliver a more profitable upstream; a more valuable downstream and an economic, sustainable gas supply.

Upstream ADNOC is on track to expand production capacity to 3.5 million barrels per day, utilising innovative technology to improve performance and cut drilling time by 30 percent. H.E. Dr Al Jaber said that increasing operational efficiency is reinforcing ADNOC’s position among the world’s lowest-cost producers and attracting a diverse class of international partners, which is reflected in the interest for the upcoming offshore concessions, which have attracted over 10 potential partners from around the world.

Meanwhile, on midstream, ADNOC is looking to ADNOC would continue to develop its natural resources by accessing undeveloped reservoirs, tapping into vast gas caps and scaling up sour gas production, using best in class methods developed in the UAE.

In Downstream, ADNOC plans to grow crude refining capacity by 60 per cent and more than triple its petrochemical production. This expansion will make Ruwais the single largest integrated refining and chemicals site in the world. Once complete, ADNOC will convert almost 20 per cent of its crude to chemicals, diversifying its range of higher value products and providing a natural hedge to oil price movements.

ADNOC will ensure its expanded portfolio of products gain better market access, by focusing on new centers of growth and diversifying its customer base. It also plans to introduce non-speculative asset-backed trading to further stretch the dollar from every barrel it produces.

“All these integrated efforts will ensure ADNOC delivers shareholder value, strengthens the UAE economy and sets a new benchmark for what success looks like in a modern energy company,” H.E. Dr Al Jaber added.

ADNOC’s Group CEO said he was encouraged by a global economy that is growing at the highest rate since 2011. Describing the fundamentals of the global economy as positive, H.E. Dr Al Jaber said the rate of growth is driving demand for oil and gas products and moving the oil market in the right direction. He praised the role of the OPEC and non-OPEC framework agreement in stabilising the oil market.

However, H.E. Dr Al Jaber sounded a note of caution, saying the industry cannot ignore the shifting dynamics of the global energy mix. These had pushed ADNOC to act nimbly, think creatively, and challenge its traditional business models.

“At ADNOC, we are embracing the future to create a new type of National Oil Company, that meets the needs of today, while adapting to secure tomorrow’s success,” H.E. Dr Al Jaber said. “To achieve this, we have set out to transform the fundamentals of our business We have expanded our approach to partnerships, enhanced our capital structure, to more efficiently finance our business, and revised the way we manage our portfolio of assets to unlock lasting value.”

H.E. Dr Al Jaber said ADNOC is firmly focused on the future, adding that it was embracing new technologies, including artificial intelligence, as it strives to become highly efficient and performance driven. Technology, informed by big data, is a key enabler of ADNOC’s transformation, he said. ADNOC is also exploring the potential use of block chain trading platforms to create maximum value from every barrel of oil it produces.

Highlighting the UAE’s long history as a stable, business friendly trading nation, H.E. Dr Al Jaber underlined ADNOC also enjoys a well-deserved reputation as a trusted and reliable partner and supplier. As such, he added, ADNOC stands ready to collaborate with everyone who shares its vision and its values and collectively seeks to realize the fullest potential, seize every market opportunity and take control of the future.

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Global oil and gas leaders gather in Abu Dhabi to discuss energy landscape https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/global-oil-and-gas-leaders-gather-in-abu-dhabi-to-discuss-energy-landscape/ Twenty-six of the world’s leading oil and gas industry leaders gathered in Abu Dhabi today to discuss the evolving energy landscape amid shifting dynamics of supply and demand, at the second Abu Dhabi CEO Roundtable. 2017-11-12 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/global-oil-and-gas-leaders-gather-in-abu-dhabi-to-discuss-energy-landscape/

Twenty-six of the world’s leading oil and gas industry leaders gathered in Abu Dhabi today to discuss the evolving energy landscape amid shifting dynamics of supply and demand, at the second Abu Dhabi CEO Roundtable.

The senior executives were invited to the roundtable, held at ADNOC’s corporate headquarters in the UAE capital, by ADNOC, the company said in a statement.

The roundtable focused on changes in the structure of the energy market, particularly oil and the impact of electrification on the oil-auto system – and the need to find a common analytical approach to gauge the extent of that impact on oil demand.

“This was an important and unique opportunity for oil and gas industry leaders to share insights and perspectives on the evolving energy landscape and how it’s influencing supply and demand for our products,” H.E. Dr Sultan Al Jaber said. “The roundtable enabled us to engage in open discussion and reflect on the technological and economic factors shaping the oil, gas and petrochemical industries.”

The roundtable was moderated by Dr Daniel Yergin, vice chairman IHS Markit, Pulitzer-Prize winning author and energy economist.

“The CEO Roundtable was an excellent opportunity to consider the near, medium and long-term outlooks for the energy industry and the world in which it operates,” said Dr Yergin. “The high-level participation by the world’s leading oil, gas and petrochemical chief executives is a demonstration of the convening power of the

leadership of the UAE, Abu Dhabi and ADNOC. A rich and wide-ranging discussion deepened the understanding of the factors shaping the global energy landscape and how best to navigate them.”

In addition to H.E. Dr Al Jaber, the roundtable was attended by Amin H. Al-Nasser, president and CEO, Saudi Aramco; Patrick Pouyanné, chairman of the board and CEO, Total, Dr. Kurt Bock, chairman BASF; Mark Garrett, CEO, Borealis; Bob Dudley, group chief executive, BP; Chan Chauto, president, CEFC, China; Pedro Miro Roig, vice chairman and CEO, CEPSA; H.E. Wang Yilin, chairman, CNPC; Darren Woods, chairman and CEO, Exxon Mobil; Hunter L. Hunt, president, Hunt Consolidated Energy; Sanjiv Singh, CEO, Indian Oil Company; Toshiaki Kitamura, president and CEO, INPEX: Yasushi Kimura, chairman of the Board, JXTG Holdings (JX-Nippon Oil and Gas Exploration); Nizar Al-Adsani, Deputy Chairman and CEO, KPC; Dr. Vagit U. Alekperov, president, LUKOIL; Musabbeh Al Kaabi, CEO Petroleum and Petrochemicals, Mubadala Investment Company; Todd Karran, President and CEO, Nova Chemicals; Dr. Rainer Seele, chairman and CEO, OMV; Vicki A. Hollub, president and CEO, OXY; Dr. Antonio Costa Silva, chairman of the management commission, Partex; José Antonio González Anaya, CEO, PEMEX; Tan Sri Wan Zulkiflee Wan Ariffin, president and group CEO, Petronas; Rovnag Ibrahim Abdullayev, president SOCAR; Frank Ning, chairman of the Board, SINOCHEM group and Eldar Saetre, CEO, Statoil.

The second annual gathering of its kind in the Middle East, the Abu Dhabi CEO Roundtable was held on the eve of ADIPEC, the world’s premier oil and gas conference, taking place in the UAE’s capital, from November 13-16.

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Saudi Aramco signs contracts worth $4.5bln for oil and gas projects https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/saudi-aramco-signs-contracts-worth-45bln-for-oil-and-gas-projects/ Saudi Aramco on Thursday signed US $4.5 billion worth of agreements with multiple oil and gas service contractors for projects designed to increase the company’s energy sustainability, diversify the economy, expand gas production, and localise domestic content. 2017-11-12 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/saudi-aramco-signs-contracts-worth-45bln-for-oil-and-gas-projects/

Saudi Aramco on Thursday signed US $4.5 billion worth of agreements with multiple oil and gas service contractors for projects designed to increase the company’s energy sustainability, diversify the economy, expand gas production, and localise domestic content. 

Eight agreements were signed, including three agreements with Madrid-based Técnicas Reunidas under the gas compression program in the southern area, Saudi Aramco said in a statement.The project will improve and sustain gas production from Haradh and Hawiyah fields for the next 20 years by bringing an additional 1 billion standard cubic feet per day (scfd). 

The Hawiyah Gas Plant (HGP) Expansion Project, awarded to Italy’s Saipem, will provide additional gas processing facilities to process raw sweet gas, to efficiently meet the Kingdom's energy demand, the statement said. 

Other agreements signed cover the free flow pipeline contract for Haradh and Hawiyah with China Petroleum Pipelines Company; engineering and project management services for the Zuluf field development program with Jacobs Engineering Inc; the pipeline and trunk line project of Safaniyah field (with Abu Dhabi-based National Petroleum Construction Company (NPCC); and the slipover platforms and eElectrical distribution platform project in Safaniyah field with McDermott Middle East.

“These agreements we signed are part of our natural gas expansion, as we add about 1 billion standard cubic feet per day (scfd),” said Saudi Aramco President and CEO Amin H. Nasser. “This reflects our commitment to introducing new supplies of clean-burning natural gas. These new supplies will help reduce domestic reliance on liquid fuels for power generation, enable increased liquids exports, provide feedstock to petrochemical industries, and reduce carbon emissions.” 

Nasser added: “Investments like these help secure Saudi Aramco’s preeminent position as a reliable supplier of energy domestically and to the world. They also reflect our concerted effort, as stated in Saudi Vision 2030, to diversify our economy, promote local manufacturing, support a sustainable environment, and strengthen our business and investment climate with the domestic private sector through fruitful international partnerships.”

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TAQA makes 9-month net loss on production dip https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/taqa-makes-9-month-net-loss-on-production-dip/ Abu Dhabi National Energy Company PJSC (TAQA) made a net loss for the first nine months of the year on lower production. 2017-11-09 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/taqa-makes-9-month-net-loss-on-production-dip/

Abu Dhabi National Energy Company PJSC (TAQA) made a net loss for the first nine months of the year on lower production.

The company made a net loss of 82 million dirhams in the nine months to September end, while its total revenues grew 3 per cent to 12.5 billion dirhams, driven by higher commodity prices, Taqa said in a statement.

It said the third quarter income was impacted by the unscheduled outage at the Sohar Aluminum smelter and negative mark-to-market movements at its US power plant tolling agreement during the period, the company said in a statement.

Its free cash flow is up 9 per cent year on year to 5.6 billion dirhams with increased capital investment activity move than covered by the higher EBITDA and favourable working capital movements compared to the same period in the prior year. EBITDA rose 7 per cent to 6.8 billion dirhams.

“We’re pleased to see continued strong free cash flow generation, as well as improved margins across our portfolio, which has benefited from increased efficiencies across our operations,” Saeed Hamad Al Dhaheri, acting chief operating officer, said. “During the period, TAQA achieved first oil at our Atrush development in Iraq, which marks an important milestone for the Group. The company has also been able to reduce our financing costs and gradually lower our debt, which will have a positive impact on our financial performance over the coming years.”

Taqa said its production volumes dipped 10 per cent to 128,300 barrels of oil equivalent per day (BORD), hit by a capital expenditure reduction and planned North Sea platform maintenance.

Its Iraq production began in July – Atrush Block in Kurdistan region of Iraq is expected to ramp up production to 30,000 barrels per day of gross capacity in 2017.

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Cepsa, Cosmo start Hail oilfield production https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/cepsa-cosmo-start-hail-oilfield-production/ Cepsa and Cosmo Oil’s Abu Dhabi joint-venture started production on Tuesday from Hail offshore oil field. 2017-11-09 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/cepsa-cosmo-start-hail-oilfield-production/

Cepsa and Cosmo Oil’s Abu Dhabi joint-venture started production on Tuesday from Hail offshore oil field.

Hail Oil Field production volume is estimated to be equivalent to that of the existing oil fields Mubarraz Field, Umm Al-Anbar field, and Neewat Al-Ghalan, Japanese petrochemicals firm Cosmo Oil said.

Hail, being adjacent to the existing oil fields will help Abu Dhabi Oil Co, a unit of Cosmo Energy Exploration & Production (owned 80 per cent by Cosmo, 20 per cent by Spanish firm Cepsa) to use adjacent facilities from existing fields and reduce operating costs as production volume increases, Cosmo said.

The production from the Hail Oil Field is the first oil field development in the Middle East by a Japanese operator since 2011.

Hail Oil Field was granted as an additional oil field to its existing oil fields when ADOC renewed its concession agreement in December 2012 for a period of 30 years.

ADOC then launched the Hail Oil Field Development activities which included analysis processes such as 3D seismic survey, drilling appraisal wells, reclamation of a new artificial island, construction of surface facilities, and drilling production wells.

Both Cepsa and Cosmo form part of Mubadala Investment Company’s portfolio (Cepsa 100 per cent and Cosmo 20.8 per cent).

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Eversendai’s UAE unit wins offshore contract for Saudi Aramco https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/eversendai-s-uae-unit-wins-offshore-contract-for-saudi-aramco/ Malaysia’s Eversendai Corporation Berhad said its fully-owned offshore unit in UAE won a major offshore fabrication project for Saudi Aramco. 2017-11-08 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/eversendai-s-uae-unit-wins-offshore-contract-for-saudi-aramco/

Malaysia’s Eversendai Corporation Berhad said its fully-owned offshore unit in UAE won a major offshore fabrication project for Saudi Aramco.

Eversendai Offshore received the project award through Saipem S.p.A. which is one of the Long-Term Agreement (LTA) Engineering Procurement and Construction (EPC) contractors for Saudi Aramco.

Eversendai Offshore expects this to be the first of many more projects to come its way from Saudi Aramco

Eversendai Offshore was also recently certified with the Saudi Aramco 9com certification that allows it to execute Saudi Aramco projects which are only open to prequalified and approved companies who fulfil highly stringent requirements by Saudi Aramco, the company said.

With this certification, the company’s fabrication yard in Ras Al Khaimah becomes a pre-qualified vendor for fabrication and construction of Offshore Platforms and Jackets for Saudi Aramco.

“As the number of fabrication yards in the Middle East with Saudi Aramco certification is limited, Eversendai has a high potential in increasing their bid conversion rate bidding through the Long-Term Agreement (LTA) Engineering Procurement and Construction (EPC) contractors or through Saudi Aramco itself directly” said Narish Nathan, CEO of Eversendai Offshore

Eversendai Offshore received the 9com certification mainly due to the extensive quality and safety requirements Eversendai have placed in their Ras Al Khaimah yard, and by having highly experienced and qualified personnel to execute projects there, he added.

“Eversendai Offshore is a relatively young player in the oil and gas industry. Our facility in Ras Al Khaimah is only 2.5 years old and to receive this highly sought-after certification is indeed a feat we are proud of,” said Tan Sri A K Nathan, group managing director of Eversendai Corporation Berhad. “Eversendai is the pioneer company from Malaysia to have received this coveted certification and to be awarded a major fabrication project for Saudi Aramco in a relatively short time upon the certification, is on its own, a worthwhile merit for us,” he said.

Eversendai’s sixth Fabrication Facility in Ras Al Khaimah, UAE is one of the group’s seven fabrication facilities. The 200,000m2 Ras Al Khaimah yard has a 550m jetty with 7m water depth at low tide and this enables Eversendai to fabricate and loadout heavy structures such as offshore jackets, platforms and process modules into the water directly. With an annual production capacity of 30,000 tons of fabricated materials, the jetty is also able to loadout 12,000 tons.

With the Saudi Aramco project win, Eversendai brings its total project wins up to RM 1.56 billion to-date for the year 2017, while its order book stands at approximately RM 2.3 billion.

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ADNOC’s pipeline unit closes $3 bln bond for future growth https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/adnoc-s-pipeline-unit-closes-3-bln-bond-for-future-growth/ Abu Dhabi National Oil Company (ADNOC) said its crude oil pipeline subsidiary issued a US$3 billion bond for the group’s future growth plans, marking a major non-sovereign issuance in the region as the state oil and gas giant looks to unlock value from its infrastructure assets. 2017-11-07 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/adnoc-s-pipeline-unit-closes-3-bln-bond-for-future-growth/

Abu Dhabi National Oil Company (ADNOC) said its crude oil pipeline subsidiary closed a US$3 billion bond for the group’s future growth plans, marking a major non-sovereign issuance in the region as the state oil and gas giant looks to unlock value from its infrastructure assets.

“The very attractive pricing and substantial international demand for this offering positively reflects the UAE’s stable investment environment, as well as ADNOC’s new and progressive approach to its long-term financing strategy,” said HE Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO.

Proceeds from the issuance will be used by ADNOC to support its ambitious future growth and investment plans, ADNOC said in a statement.

In July, ADNOC said it would expand its strategic partnership model and create new investment opportunities across all areas of its value chain, as well as proactively manage its portfolio of assets and capital.

ADNOC said the bond, issued at the group asset level, is part of this broader approach to unlock value and capital from within its sizeable and diverse pool of infrastructure assets.

It is also looking to create a broader energy infrastructure venture that may include the future bundling of assets such as other oil, gas or refined products pipelines and storage facilities.

“This transaction is a clear and tangible example of the new steps we are taking at ADNOC to proactively manage our portfolio of assets and, in particular, unlock value from our sizeable infrastructure base, as we seek to drive and maximise value across our business. This bond represents an important, initial milestone in our efforts to fully optimise our capital structure in a smarter, more efficient and flexible manner,” Al Jaber added.

“This transaction enables ADNOC, for the first time, to access the international debt capital markets - thus opening an increased range of highly compelling and viable options for the long-term strategic financing of the ADNOC Group. In addition, it demonstrates the expansion of our partnership model and represents an opportunity for institutional and infrastructure investors to partner and invest alongside ADNOC in selected projects,” he said.

PIPELINE

Abu Dhabi Crude Oil Pipeline (ADCOP), a fully ADNOC-owned entity, owns nearly 406 kilometre pipeline that carries ADNOC Onshore’s crude from a collection centre in Abu Dhabi to the Fujairah oil export terminal, which provides access to international shipping routes.

The pipeline is a key asset for the UAE’s oil industry and, coupled with the strategic location of Fujairah, allows for a significant proportion of the UAE’s total crude oil production to be transported from Abu Dhabi directly to the Arabian Sea.

The pipeline has been operating since 2012 and in 2016, it had an average throughput of approximately 615 thousand barrels per day, ADNOC said. The pipeline is designed to transport 1.5 million barrels per day of crude oil, with the ability to increase its capacity to 1.8 million barrels per day through the use of drag-reducing agents. The pipeline’s throughput is supported by the stable onshore crude oil production base of ADNOC Onshore, which has an oil concession with more than 37 years remaining to produce oil from 11 onshore oil fields in Abu Dhabi: Bu Hasa, Asab, Sahil, Shah, Bab, Al Dabb’iya, Rumaitha, Shanayel, Huwaila, Qusahwira, Bida Al-Qemzan.

BOND

The bond offering consists of two senior secured bond tranches: an $837 million, twelve year bullet bond tranche (Series A) and a US$2,200 million, thirty year fully amortizing bond tranche (Series B). The bond issuance was executed on ‘favourable’ commercial terms with annual coupons of 3.65 per cent and 4.6 per cent for the Series A and B respectively.

“The expected stable oil throughput from ADNOC Onshore allowed ADNOC to issue long dated paper and the dual tranche structure enabled the targeting of different pools of investor demand while matching ADCOP’s cash-flows. The offering was significantly oversubscribed by more than three and a half times, exceeding $11 billion in orders, with strong demand from both international and regional accounts. The bond was rated AA by Fitch and AA by S&P, in line with the rating of Abu Dhabi sovereign bonds, highlighting the financial strength and stability of ADNOC,” it said.

The final geographic allocation for the twelve year tranche was 8 per cent to Asian investors, 42 per cent to European investors, 43 per cent to US investors and 7 per cent to investors from the MENA region. The final investor type allocation for the twelve year tranche was 8 per cent to banks and private banks, 70 per cent to fund managers and 22 per cent to agencies, pensions, insurance and others. The final geographic allocation for the thirty year tranche was 10 per cent to Asian investors, 35 per cent to European investors, 51 per cent to US investors and 4 per cent to investors from the MENA region. The final investor type allocation for the thirty year tranche was 6 per cent to banks and private banks, 80 per cent to fund managers and 14 per cent to agencies, pensions, insurance and others.  

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KBR wins engineering support contract for Abu Dhabi gas project https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/kbr-wins-engineering-support-contract-for-abu-dhabi-gas-project/ U.S. engineering firm KBR said it won an engineering support services for operations for Abu Dhabi Gas Development Company’s Al Hosn Project (now ADNOC Sour Gas). 2017-11-06 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/kbr-wins-engineering-support-contract-for-abu-dhabi-gas-project/

U.S. engineering firm KBR said it won an engineering support services for operations for Abu Dhabi Gas Development Company’s Al Hosn Project (now ADNOC Sour Gas).

The project is a 60-40 joint venture between Abu Dhabi National Oil Company (ADNOC) and Occidental of Abu Dhabi (Oxy).

Under the terms of the contract, KBR said it will provide personnel, equipment and resources to carry out engineering tasks and technical support on Shah facilities in Abu Dhabi, United Arab Emirates.

"KBR is pleased to have the opportunity to provide our value added support services to Al Hosn Gas, and highlights Al Hosn Gas's confidence in KBR's capabilities to deliver in multiple engineering discipline areas across a variety of projects," said Jay Ibrahim, KBR's president for Europe, Middle East and Africa.

The UAE remains a key market for the company’s global energy and hydrocarbons business and the award demonstrates KBRs ability to offer cost effective solutions to customers by combining global expertise and local presence, the company said.

The contract’s revenue will be booked to the E&C's business segment as work orders are awarded, it said.

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Gazprom signs deal with Iran for gas projects https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/gazprom-signs-deal-with-iran-for-gas-projects/ Russia’s Gazprom said it has signed an agreement with Iran’s state oil firm that will see it help develop oil and gas projects in Iran, including the Iran-Pakistan-India gas pipeline. 2017-11-05 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/gazprom-signs-deal-with-iran-for-gas-projects/

Russia’s Gazprom said it has signed an agreement with Iran’s state oil firm that will see it help develop oil and gas projects in Iran, including the Iran-Pakistan-India gas pipeline.

Gazprom and National Iranian Oil Company will “look into the prospects of joining efforts in developing Iranian gas fields with subsequent gas transportation and monetisation, including through liquefaction and petrochemical production,” the Russian firm said in a statement about a memorandum of understanding signed between the two entities during President Vladimir Putin’s visit to Tehran.

Following on from the agreement, the companies will start developing a feasibility study for the design, construction and operation of the Iran-Pakistan-India gas pipeline, among other things.

This is part of an agreement signed by the Russian Energy Ministry and the Iranian Petroleum Ministry as part of the state support for the pipeline construction project.

In a separate agreement between Gazprom and Mansour Moazami, chairman of the executive board of Industrial Development & Renovation Organization of Iran, the parties will study a joint gas liquefaction project, as well as advanced gas processing and petrochemistry in Iran.

Gazprom and NIOC will also develop a concept for a unified system of gas production, transmission and petrochemistry based in Iran, the Russian gas giant said.

“Today, we took a major step forward in Russian-Iranian cooperation in the gas sector. We signed a number of important documents, including the Memorandum for strategic cooperation between Gazprom and Iran’s Petroleum Ministry. As a result, we established the organisational framework for further bilateral cooperation in a range of promising fields,” said Vitaly Markelov, deputy chairman of the Gazprom management committee.

Iran and Russia signed a total of six MoUs during Putin’s visit last week, according to an earlier report. 

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Rosneft and Iran sign oil and gas development deal https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/rosneft-and-iran-sign-oil-and-gas-development-deal/ Rosneft and Iran’s National Iranian Oil Company signed agreements for oil and gas exploration and production, the Russian company said. 2017-11-02 https://www.pipelineme.com/regionalinternational-news/regional-news/2017/november/rosneft-and-iran-sign-oil-and-gas-development-deal/

Rosneft and Iran’s National Iranian Oil Company signed agreements for oil and gas exploration and production, the Russian company said.

The Russian firm said it signed the strategic deal that will focus on “developing long-term and mutually beneficial cooperation in key areas of business, including exploration and production, field services, local application of technology, as well as training for personnel,” it said in a statement.

The two companies have agreed on the ‘main principles’ of Rosneft’s participation in Iranian projects and approved a plan, the statement added, without giving more details.

Rosneft’s collaboration with Iran would strengthen its position in the Middle East – last month it acquired a majority stake in Iraqi Kurdistan’s main oil pipeline.

Speaking to reporters in Tehran, Rosneft CEO Igor Sechin told reporters the preliminary deal covered projects worth up to US$30 billion and paved the way for legally-binding documents to be signed within a year, Reuters reported. Output from the joint project is seen plateauing at 55 million tonnes per year (1.1 million barrels per day), he said.

“We are talking about several oil and gas fields, which we will develop with our partners,” Sechin said, adding that Rosneft has invited Iran to develop offshore and other projects in Russia.

Sechin said the preliminary agreement envisaged some swap deals, as well as oil and oil products deliveries, Reuters reported.

The agreement was signed during President Vladimir Putin’s visit to Iran on Wednesday, a move seen as Russia establishing a greater influence on the region.

The two countries signed a total of six memorandum of understanding for oil and gas cooperation deals, including those with Rosneft and Gazprom, according to Shana - Iranian state oil ministry’s news website.

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