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Category: Oil and Gas Market Update

European and UK Oil and Gas News

Posted by: Chemist Posted on: August 4, 2013 , ,

Updates from July, 2013

• Shipping fixtures showed more cargoes staying within the region, although trading firms with supply commitments to Europe and that have locked in freight at lower rates continued to fix loadings on vessels bound for Europe.
• The backwardation in the Ice gasoil market weakened, leaving little incentive to store jet fuel in Europe. Air travel demand in Europe has risen with the onset of the summer travel season but is mostly in line with expectations, with trading firms having already met the bulk of requirements. Weak European demand means spot cargoes from the Mideast Gulf are likely to stay within the region.
• Naphtha buyers were able to resist higher premiums as persistently heavy arbitrage inflows from Europe weighed on the market.
• Supplies were ample for June and early-July loading from Europe and the Mediterranean, with the arbitrage to North America having been shut for more than a month amid high stocks in the US. Stocks in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) hub fell over the week by about 89,000t, or 11.3pc, to 699,000t as of 27 June. But this was still about 76,000t, or 12pc, higher than 623,000t in the same week last year, according to Dutch consultancy PJK International. Arbitrage opportunities from the US were limited amid weak demand. Gasoline inventories in the country rose unexpectedly to 225.4mn bl in the week to 21 June, up by 3.7mn bl from a week earlier, statistics from US government agency EIA showed.
• Base Oil Group I Prices FOB Europe export prices knocked down as demand weakens.
• Spot cargo bookings from Europe and the Mediterranean to the US remain very thin, with US stocks 20mn bl higher than a year earlier and more than 5pc above the five-year average. Demand remains low across Europe, with the latest data from the UK government indicating that gasoline demand dropped by nearly 10pc in the first quarter of 2013 from a year earlier.

United States Oil and Gas News

Posted by: Chemist Posted on: August 4, 2013 , ,

Updates from July, 2013

• Base Oil SN 150 FOB United States prices down in July 2013.
• USA refiners to hike Paraffinic & Napthenic Base Oil prices in the range of 15 – 25 cents per gallon.
• RIL has sold two 55,000t cargoes for loading this month, in contrast to last year when strong gasoline demand in the US prompted the firm to skip naphtha exports altogether in July.
• US Gulf Coast gasoline stocks are oversupplied, keeping the arbitrage from Europe firmly shut and reducing European demand for naphtha that would otherwise have been diverted into the gasoline pool.
• BS 150 FOB USA prices surge up by 4% in July 2013 as compared to January 2013 price.

Egypt Oil and Gas News

Posted by: Chemist Posted on: August 4, 2013 ,

Updates from July, 2013

• Dana Gas has announced that it has discovered gas at an onshore test well on the West El Manzala concession in the Nile Delta, Egypt – The Begonia-1 discovery well encountered 15 metres of net pay in a good quality sandstone reservoir of the Lower Abu Madi Formation. On test, the formation produced 266,178 standard cubic metres of gas with 133 barrel condensate.

• Global oil prices of both Brent and WTI indices have remained above US$100 per barrel on the back of Egypt’s political tensions.
• Egypt’s oil sector projects face ongoing uncertainty – Egypt remains a short-term project risk despite Mohamed Mursi’s removal.

Iraq Oil, Gas and Energy News

Posted by: Chemist Posted on: August 4, 2013 , ,

Updates from July, 2013

• DNO begins output from horizontal well in Iraqi Kurdistan – The Norwegian contractor starts production at Tawke well.
• Chinese firm wins $546m Iraq oil service contract – State-owned Chinese firm will increase production at Halfaya oil field.
• DPS Global wins Iraq water injection deal – Contract covers effluent water treatment and injection plant at Bai Hassan oil field.
• Daewoo wins $750m Iraq gas contract – South Korean firm approved for Akkas field gas processing facilities.
• Contractors submit technical bids for Iraq oil storage facility – Seven firms awaiting commercial deadline for major oil storage facility construction deal.
• The Federal Government of Iraq has announced that Lukoil has planned to double its investments in oil projects in the country – The Russian energy company expects commercial production to begin at the West Qurna-2 oilfield onshore Basra, situated in southern Iraq, in early 2014. Earlier this year, the company said that it would invest US$4bn in the West Qurna-2, which has reserves estimated at 12.9bn barrels.

Iran Oil and Gas News

Posted by: Chemist Posted on: August 4, 2013 , ,

Updates from July, 013

• Iran completes new gas storage facility – Shoorijeh facility has capacity to store 4.6 billion cubic metres of natural gas.
• Iran has revealed plans to establish a petrochemical hub near the Sea of Oman in an attempt to facilitate exports to India and China
• Iran’s National Petrochemical Company managing director Abdol Hossein Bayat said that the new petrochemical hub, which will be set up in the southeastern port city of Chabahar, would need a total investment of US$20bn. Bayat said, “Reducing the cost of petrochemical exports to India and China will be the most important achievement of this new petrochemical hub.
• Industrial and economic development in the east and southeast of Iran is the main reason behind the establishment of the country’s third petrochemical hub.”
• Two other petrochemical hubs were set up by the country in Assaluyeh, which houses the massive installations of the offshore South Pars Gas Field, and in Mahshahr, an oil-rich city in southwestern Iran.
• Iran has reaped US$12bn from exporting petrochemicals in the last Iranian calendar year which ended on 20 March 2013. Nearly 60 countries, many from Southeast Asia, imported Iran’s petrochemical products in the previous Iranian calendar year.

Bahrain Oil, Gas and Energy News

Posted by: Chemist Posted on: August 4, 2013 , ,

Updates from July, 2013

• JGC sole bidder on Bahrain diesel plant consultancy tender – Bahrain Petroleum Company plans to shut down low sulphur diesel complex for maintenance turnaround.
• Bahrain industrial park approves 16 schemes – Bahrain International Investment Park gives greenlight to new projects in first half of 2013.
• Regional investment supports Bahrain Bay – International investors take wait and see approach.
• Four contractors bid to build Bahrain airport navigation building – Contract covers construction of air navigation building.
• Consultants vie for Bahrain-Saudi Arabia rail link study – Planned railway linking Bahrain and Saudi Arabia to run parallel to King Fahd causeway.
• Bids submitted for Bahrain airport expansion masterplan – Six companies vie for Bahrain airport contract.
• Foulath shelves Bahrain steel mill conversion – Financial issues see estimated $400m rebar mill and mini-mill project put on hold.
• Bahrain’s state-owned Bapco is currently offering a fresh 40,000-60,000t cargo of jet fuel for 28-31 August loading, which it expects to sell this week. Bapco sold a 60,000t (473,000 bl) jet fuel cargo for
Oman
Bahrain
6 | 11
22-25 July loading from its 262,000 b/d Sitra refinery at a premium slightly below $2.20/bl to Mopag on a fob basis. The company had offered a 40,000-60,000t cargo for end-July in the previous week but withdrew from the market as the offers were lower than what it targeted. The lower premium reflected a weakening market, with Bapco last selling a long-range cargo of about 60,000t three weeks earlier at about Mopag +$2.35/bl on a fob basis.

Oman Oil, Gas and Energy News

Posted by: Chemist Posted on: August 4, 2013 , , ,

Updates from July, 2013

• Oman prepares to tender first phase of Muscat-Sohar fuel pipeline – Contract covers pipeline linking Muscat International airport with Orpic’s Mina al-Fahal refinery
• Orpic prepares to float design tender on Liwa Plastics project – Sohar cracker complex set to be largest ever petrochemicals scheme in Oman.
• Topaz Oil and Gas acquired by UK’s Interserve – Oman’s Renaissance sold stake for $46m.
• Ipic set to appoint adviser for Duqm refinery – France’s Credit Agricole favourite to win $6bn Duqm refinery mandate.
• Orpic to launch expansion financing in late August – Oman refiner to decide whether to include additional $1bn debt refinancing as part of deal.
• Oman to appoint advisers for Suwaiq power deal – Consultancy firms pitching to advise on 3,000MW power project.
• DNO expands Middle East operations – Norwegian energy firm awarded block in Yemen.
• Bid deadline extended on Salalah port rehabilitation – Contract covers consultancy services for upgrade of general cargo terminal.

Qatar Oil, Gas and Energy News

Posted by: Chemist Posted on: August 4, 2013 , ,

Updates from July, 2013

• Ooredoo reports strong profit growth – Quarter-on-quarter profit rises 44 per cent.
• Qatar to tender project management consultancy for rail systems – Deadline set for 15 September for rolling stock, depots and track work.
• Qatar reopens prequalification for expressway programme – Expressway programme includes 42 major construction packages.
• Consultants resubmit bids for Qatar long-distance railway – Contract now includes expanded scope of works.

• Qatari developer seeks contractors for Lusail museum – Contractors invited to prequalify for Doha’s latest iconic building project.
• Qatar invites bids for solid waste transfer facility – Contract will involve building waste management facility in the Al-Khor area of Doha.
• Qatar Petroleum (QP) and Qatar Petrochemical Company Limited (QAPCO) have signed technology license contracts for the Al Sejeel Petrochemical Complex – The companies will jointly develop this petrochemical complex in Ras Laffan with QP and QAPCO holding 80 per cent and 20 per cent equity interest respectively, industry sources have revealed. The Al Sejeel Petrochemical Project is scheduled for completion in 2018 and it will feature a mixed-feed steam cracker, with the original mixed feedstock of ethane, butane, and naphtha. With the signing of the technology agreements, the plant will be designed to produce 6.2 million cubic metres per annum of polymers.
• Qatar Fuel Additives Company (QAFAC) – A subsidiary of Industries Qatar, is planning to increase production of MTBE (methyl tertiary butyl ether), a gasoline additive, in refineries at Mesaieed and Ras Laffan due to increasing demand for cleaner fuels in Qatar. MTBE is the most widely used oxygenate, following the global phase-out of lead as an octane enhancer in gasoline.

Kuwaiti Oil and Gas News

Posted by: Chemist Posted on: August 4, 2013 , ,

Update Insights from July, 2013

• Kuwait discovers new oil field – New discovery near existing Minagish field.
• Landmark Kuwait power deal unlikely until late August – Al-Zour North project has still not reached financial close despite being awarded in January.
• Contractors prepare bids for $576m Kuwait contracts – Firms bidding to build two court complexes.
• Aecom wins Kuwait port access contract – US firm to oversee feasibility study at Bubiyan Island.
• Kuwait further extends deadline for Doha Link bridge – Consortiums now have until 13 August to submit bids for the project.
• Contractors prepare bids for $385m Kuwait hospital project – Firms bidding to build 600-bed healthcare facility.
• Kuwait extends tender closing date for $910m Kuwait hospital – Kuwait hospital’s bid submission deadline pushed back to 28 July.
• Kuwait tenders major oil pipeline deal – More than 10 local firms prequalified to bid.
• Kuwait’s state-owned KPC possibly sold 24,000t of light naphtha for end-July loading at a premium at the high-$20/t level to Mopag, although this could not be confirmed. KPC previously awarded a similar light naphtha cargo for 29-30 June loading, possibly at a premium just above $30/t to Mopag.