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MENA Downstream Launch Issue

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Launch issue of our MENA Downstream Monitor

Launch issue of our MENA Downstream Monitor

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  • 1. 13 April 2011 NewsBase Week 01 Issue 01 Downstream Monitor   News Analysis  Intelligence –– MENA ––  NewsBase Published byCOMMENTARY 2 NEWS THIS WEEK… Wealth of opportunities Advantage Middle East 2 Libyan refining sector mulls uncertain future in wake of conflict 3MARKET COMMENTARY 5 Despite swathes of civil unrest and current market Strong crude, insurance challenge Middle uncertainties, low production costs and strong state East products market 5 support bode well for the Middle East’sREFINING 6 downstream industries. Algeria could move Tiaret refinery to the coast 6  last year has seen a resurgence in The downstream projects in the Gulf. (Page 2) holds talks to fund refining projects 7 Iran revives Fujairah plans IPIC 7  region is expected to produce around 20% of TheFUELS 8 the world’s total petrochemical output by 2015.(Page 2) North African turmoil impacts jet fuel prices 8  Increasing Asian demand for petrochemicals presents a boon for Middle East producers. (Page 3) Total’s Yemeni production ‘normal’ 8PETROCHEMICALS may require US$55 billion investment Gulf 9 North African questions in petrochemicals 9 With major civil unrest in Libya, the country’s Setback for Algerian methanol facility 9 refining output has taken an unprecedented hit.PIPELINES 10 Downstream MENA outlines Libya’s importance plans new pipeline to Duqm OGC 10 and the struggle it now faces. Egyptian pipeline reopens; gas shipments to Israel resumed 10  North African country has a refining capacity TheTERMINALS & STORAGE 11 of around 380,000 bpd. (Page 3) ADNOC stalls on Shah contract 11  Libya has plans to build an export refinery with a Aramco-Dow makes progress on Saudi capacity of 200,000 bpd at Misrata. (Page 5) EPC contracts 11NEWS IN BRIEF 12 Reviving FujairahTENDERS & CONTRACTS 19 Abu Dhabi’s IPIC has once again announced plansCONFERENCES 21 to revive its planned Fujairah crude refinery. (Page 7)For analysis and commentary on these and other stories, plus the latest downstream developments, see inside… Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 2. Downstream Monitor MENA 13 April 2011, Week 01 page 2 COMMENTARYAdvantage Middle EastLow production costs and strong state support bode well for the region’s downstreamindustries, despite current prevailing market uncertaintiesBy Martin Clark Despite the current swell of civil unrest, the outlook for MENA downstream is reinforced by Asian demand Downstream projects in the Gulf have seen a resurgence during the last year Gulf is expected to produce around 20% of global petrochemical output by 2015 TheThe long-term outlook for MENA combination of an unsettled market, an projects compared with 637 projects atdownstream investment remains positive, oil price tumbling downwards, sky-high the beginning of 2010, reflectingdespite the current political disquiet construction costs and squeezed improved market sentiment.sweeping across much of the region. financing. Collectively, these projects have a Investments in new downstream price tag worth around US$717 billion.refining and petrochemical capacity are Project rebound The bulk of this money will be spent inalso holding up against lingering Things have moved on a great deal since, Saudi Arabia, Qatar, Abu Dhabi and Iran,economic uncertainties in Europe and with oil prices rebounding, demand in although here the focus will beNorth America. Asia holding up, and other input costs principally upstream. Central to this view is the bottom line levelling out. Kuwait, Oman and an emerging Iraqeconomics: as the world’s richest source There is clear evidence to show that are the next biggest downstreamof oil and gas, the MENA region remains investment in new capacity, both spenders.a natural choice to site new downstream upstream and downstream, has regained Significantly, Markaz suggests theventures. momentum. total value of cancelled or on hold This has been reinforced by the rise of The number of planned major projects projects is declining – falling at the endAsia, especially the high-growth markets over the next decade across the Gulf oil of 2010 into the early months of 2011.of China and India, underpinning and gas sector – both upstream and It also highlights a greater robustnessdemand during the post-2008 financial downstream – has significantly increased among the large petrochemical schemes,crisis era. during the last year, the Kuwait Financial with the upstream segment most affected At the height of this crisis, many high- Centre (Markaz) said in a February in terms of cancellations and delays, andprofile energy investments were held up, research note. not downstream and refining, which haswith developers spooked by a toxic The number has climbed to 680 seen the revival of a number of projects. Global significance This will in turn see a surge in new production coming out of the MENA region in the coming years. Annual petrochemical production from the Gulf countries is expected to jump by 46% to 155 million tonnes per year by 2015, up from the current level of 105 million tonnes, according to a recent report by the Gulf Petrochemicals and Chemicals Association (GPCA). The Gulf, in particular, will emerge as a world champion in key downstream industries. The region’s current production represents roughly 16% of the total 700 million tonnes of petrochemicals produced worldwide, the GPCA said. Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 3. Downstream Monitor MENA 13 April 2011, Week 01 page 3 COMMENTARY By 2015, the Gulf will contribute contrasts with the malaise of the West. shifting dynamics.closer to 20% of total global output. According to Fitch Ratings, the market “Over the past two decades, Plastics are a good example where for new petrochemicals production will CHIMEA’s petrochemical industry,production is on the march, with capacity remain subdued in certain key areas, still specifically in the Middle East andset to rise to over 30 million tonnes per suffering the aftershocks of the 2008 China, has dramatically altered theyear by 2015, according to the GPCA. crisis. footprint and dynamics of the global The region currently produces over 25 It has forecast weak demand for oil market,” said one of the report’s authors,million tonnes of plastic resins per year, products and chemicals in Europe Dan Starta, managing director, ATout of which nearly 3 million tonnes are throughout 2011 because of slow growth. Kearney Middle East.converted into finished and semi-finished But it also highlights a subtle shift The report forecast that, with theindustrial and consumer plastic products. from restructuring in the downstream planned continued growth of ethylene Investment is supported by the region’s segment, in the wake of the crisis, to one capacity, the CHIMEA region wouldlower cost profile, where feedstock and of cautious expansion. account for around 45% of worldwideinput prices are dramatically less than in Across the Europe, Middle East, Africa ethylene capacity in 2020 – almostthe developed markets. (EMEA) zone it expects capital double its 23% share in 2007. According to a 2010 Gulf expenditure in 2011 to return to 2008 The same is true for polymers, wherepetrochemicals report by investment levels. the region is anticipated to grow frombankers Alpen Capital, the Gulf Co- 20% of the global total in 2007 to aboutoperation Council (GCC) countries buy Asian growth 40% in 2020.ethane at US$0.75-1.5 per million BTU, Not that developments in Europe will It illustrates a point: that amid all thecompared with a minimum US$3.20 per keep Gulf energy strategists awake at uncertainties of the Middle East at themBtu in Europe and the US. night, given the reshaping of the global present time – uprisings in Libya, regime market towards Asia. change in Egypt, street demos in BahrainMarket shifts A joint report by the GPCA and – this region remains a driving force inIndeed, the ebullient forecasts for growth consultants AT Kearney on the potential the world’s energy markets, andin the Middle East, and the continuing of the CHIMEA (China, India, Middle increasingly so in the downstream andeconomic success story that is China, East, Africa) region flagged these petrochemicals industries.Libyan refining sector mullsuncertain future in wake of conflictWith major civil unrest in Libya, the country’s refining output has taken an unprecedentedhit. Downstream MENA outlines Libya’s importance and the struggle it now facesBy Nnamdi Anyadike Libya has a refining capacity of around 380,000 bpd; however, recent events have disrupted output light, sweet crude that Libya produces is highly sought after The a resolution is reached soon then the shipment of crude supplies to Europe could be resumed quickly IfWith the conflict in Libya heading badly affected Libya’s oil production were destroyed, when Ghaddafi’stowards its second month and heavy sector would be. Initially, the rebels fighters retook the towns.fighting continuing despite the made swift gains and captured the oil Most of Libya’s upstream crude oil‘ceasefire’ negotiated by the African town of Brega; the key port and oil output has also been affected by theUnion (AU) team in Tripoli under the refinery of Ras Lanuf and the refinery at fighting. This includes production at theleadership of South African president Zawiyah west of Tripoli. Hamada oilfield, which has ceasedJacob Zuma, plans for a refurbishment of But it quickly became clear that production and the eastern fields of Sarir,the country’s oil refining sector are nothing was off limits to Muammar Nafoora and Misla, which are yieldingdefinitely on the backburner. Ghaddafi’s forces. Both Ras Lanuf and around 33% of their normal capacity. At the outset of the conflict on Zawiyah were damaged, as was the portFebruary 16, it was unclear just how town of Es Sider where storage tanks Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 4. Downstream Monitor MENA 13 April 2011, Week 01 page 4 COMMENTARY Output at the Waha, Dahra, Samah and Libya’s importance to Europe’s oil opted instead to continue processing onlyGialo fields has also dropped to less than refined products sector lies not in the the lightest and sweetest crude oils33% of its normal level, while the Al Jurf amount of crude oil it produces and its available on the market.offshore oilfield and Mabruk field have proximity to Europe. With its pre- Analysts have said that it will be in thestopped producing altogether. conflict crude oil production of 1.6 refined products sector, rather than crude million bpd, equivalent to less than 2% oil market, where any prolongedCapacity of the world’s daily usage, the country’s shutdown of access to Libyan crude oilBut analysts have said that damaged oil output is comparatively modest. will be felt.oilfields are relatively easy to bring back Rather, its importance lies in the ‘type’ Some sources have even suggested thaton line. It is the damage done to Libya’s of crude that it produces, which is of the a cessation of Libyan oil productionoil refining sector that is more critical light and sweet variety that refineries are lasting “years” could result in worldand whose effects could be the more far able to turn into a greater number of refined product prices rising by 5% toreaching and longer lasting. usable products. In simple terms, the levels higher than they would otherwise According to the US Energy primary refining process consists of be with consumers in the US, whereInformation Administration (EIA) and boiling crude oil in a big metal cylinder, taxes on petrol are very low by worldthe global consulting partnership Citac, where the heat causes the crude to break standards, disproportionately hurt.Libya has five domestic refineries, with a up into three parts.combined nameplate capacity of roughly Uphill struggle The lightest molecules, many of which380,000 barrels per day. The fact that much of Libya’s domestic are petrol, rise to the top of the tube. The These include: the Ras Lanuf export refined oil production is effectively medium-weight molecules go into jetrefinery, completed in 1984 and located within a war zone will render the fuel, diesel fuel, home heating oil, whileon the Gulf of Sirte, with a crude oil country’s refinery upgrade plans tricky to the heaviest molecules are used forrefining capacity of 220,000 bpd; the Az say the least. industrial boiler fuel, ‘residual’ oil, tarZawiya refinery, completed in 1974 and and asphalt. Libya’s refining sector was badlylocated in north-western Libya, with affected by UN sanctions, specifically It is the top two parts, or fractions,crude processing capacity of 120,000 UN Resolution 883 of November 11, which contain most of the value. As anbpd; the Tobruk refinery, with crude 1993, which banned Libya from increasing proportion of the oil availablecapacity of 20,000 bpd; the Brega importing refinery equipment. However, for global refining is ‘heavy’ instead ofrefinery, the oldest in Libya, located near in May 2006 the US removed Libya from ‘light’ and ‘sour’ instead of ‘sweet,’ i.e.,Tobruk with a crude capacity of 10,000 its list of states that sponsor terrorism, containing sulphur, light and sweet crudebpd; and Sarir, a facility with 10,000 bpd thereby normalising its ties with the of the sort Libya produces is especiallyof capacity. sought after. North African country. Libya also has operations in Europe, This cleared the road for multinationalwhere Oilinvest, the overseas arm of Premium oil companies to return to Libya and nowLibya’s National Oil Company (NOC), The Libyan premium is likely to widen the country is seeking a comprehensivehas a network of refineries with 300,000 even further, as the older generation oil upgrade to its entire refining system, withbpd of capacity. refineries in Europe have turned away the aim of increasing its output of petrol Libya directly produces and distributes from the multi-billion dollar, several year and other light products such as jet fuel.refined products in Italy – where it refinery upgrades that will be necessary Even before the removal of sanctions,controls around 7.5% of the country’s for them to process heavy oil and have upgrades were beginning to take place. Inretail market for oil products and 1995, new units came on line at Raslubricants – Germany andSwitzerland. Libya also has an Libya’s five domestic refineries (bpd): Lanuf, including a 3,300and a 5,600 catalytic reforming unit bpdextensive network of pipelines, bpd naphtha hydro-treatment unit.which connects its oilfields to Refinery Capacity Operator Tripoli has plans to build a newMediterranean terminals, 20,000 bpd refinery in Sebha toincluding: Sarir-Marsa el Hariga Zawia Refinery 120,000 ZOC process crude from Murzuk.(Tobruk); Messla-Ras Lanuf; The anticipated output will beWaha-Es Sider; Hammada El Ras Lanuf Refinery 220,000 Rasco 268,000 tonnes per year of gasoil,Hamra-Az Zawiya; Amal-Ras El-Brega Refinery 10,000 SOC 184,000 tonnes per year of petrolLanuf; Intisar-Zueitina; Nasser , 84,000 tonnes per year of jet fuel(Zelten)-Marsa El Brega. Tobruk Refinery 20,000 Agoco and 274,000 tonnes per year of fuel Sarir Refinery 10,000 Agoco oil.Importance Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 5. Downstream Monitor MENA 13 April 2011, Week 01 page 5 COMMENTARY An export refinery with a capacity of Resolution But the outlook for Libya’s oil refining200,000 bpd is planned for Misrata. Much now depends on whether the sector is darker, it will take considerablyLibya has a US$280 million contract military stalemate in Libya can be longer to repair the facilities and it iswith South Korea’s LG Petrochemicals resolved. The consensus is that if a unclear when, or indeed how many, ofto upgrade the Zawiya refinery. solution is soon reached then at least the the planned refinery upgrades will now In Egypt, Libya purchased a 39% stake shipment of crude oil supplies to Europe come on line.in the MIDOR refinery in Egypt for can be resumed at their pre-conflictUS$430 million. levels fairly rapidly. MARKET COMMENTARYStrong crude, insurance challengeMiddle East products marketWhile global crude oil prices have continued their upward trend, demand for productsfrom the Middle East has dwindled in recent weeks amid concerns over transportBy David FlanaganGlobal crude oil prices moved higher Also, the weakness of the US dollar Africa is regulated.again over the last few days, pushed up has impacted the oil price in recent days. In addition, high insurance premiumsby the ongoing political unrest in Libya, Following the move by the European for tankers loading at leading oilstrong Asian demand and a weaker US Central Bank (ECB) to raise interest rates products export terminals such asdollar. last week, the US currency came under Fujairah mean that demand for exported Libya’s ongoing volatility has caused a renewed pressure, and helped to propel Middle Eastern products, such as fuel oil,shortfall in crude reaching the crude prices higher. has diminished in recent weeks. Theseinternational market over recent weeks. premiums are being impacted by theBut, this is now turning into a long-term Margins perceived high risks attached to theproblem, because of the damage to its oil On the Dubai Mercantile Exchange transport of fuel in the Gulf.production and export infrastructure. (DME), the Oman crude futures contract Accordingly, Middle East fuel oilThis will stop Libya from getting back to for June delivery started the week at prices, which are normally priced off aa normal level of oil output for many US$114.40 per barrel on April 5, and Singapore fuel oil benchmark agreedmonths, or indeed years, to come. settled at US$117.33 per barrel on April among market participants, have 12, down US$1.64 per barrel on the day. weakened. They have been sitting atDrivers In the oil products sector, the rapidly relatively high discounts to SingaporeChina saw high demand levels for crude rising crude price means that Middle fuel oil in recent weeks.oil imports in March. Its import rate of Eastern refineries are seeing marginsover 5 million barrels per day suggests once again under pressure. If there is Demandthat a slowdown in Asian demand will healthy demand for crude oil in Asia and But, if Asian demand for oil products isnot be seen in the near future. an adverse direction for refining margins so buoyant, why are Mid-East refiners Indeed, damage to nuclear power in the Middle East, it is clearly becoming seeing such low levels of demand?infrastructure in Japan points to higher more economical to export crude rather The answer lies in the fact that demandfuel oil and natural gas demand there. than to refine it into oil products for is being met by inflows of Western oilAlso, damage to Japan’s oil products export. product cargoes, which have beenexport capability implies a greater In such a scenario, refining activity displacing Middle Eastern cargoes. Thesedemand for products from other becomes more naturally geared towards have been arriving during early April,suppliers. Hence, Asian demand for domestic demand for fuels, which in under arbitrage trades from low-demandcrude and products is healthy. many cases in the Middle East and North areas of Europe and the US. Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 6. Downstream Monitor MENA 13 April 2011, Week 01 page 6 MARKET COMMENTARY A similar story has been seen in the propane, trading around the US$875-890 downturn in the next weeks, which willnatural gas sector, where a glut of per tonne level. re-open the door for Middle Easterncargoes in the West has been addressed But, these prices are moving higher, exports.by sending cargoes to the Asian market. and this may refocus demand back on the Since Asian demand remains buoyant,The demand for Middle East oil products fuel oil market. it is likely that demand will creep backhas also been displaced by liquefied Also, the volume of European cargoes up again. So, the tide could be turning.petroleum gas (LPG), butane and arriving in Asia appears likely to see a Market projection for Week 16 First, in the Asian market, underlying demand for oil products is high and rising. Secondly, Japanese oil product exports have been adversely impacted by the earthquake and hence the local fuels trading market is seeing a shortfall in supplies. Balancing this, refinery outage or maintenance, for example in Saudi Arabia and Bahrain, has meant that less Middle Eastern volume has been coming onto the market. This will turn around soon, as refinery outages are ended, which will bring more Middle Eastern exports to the market. However, the fact that there is no let-up in the volatility of the Libyan market points to continued high insurance premiums, which may also discourage demand. A complex picture, but the overwhelming impression is that fuel oil prices should move slightly higher from their present weak position. REFININGAlgeria could move Tiaretrefinery to the coastThe Algerian Oil Minister Youcef Yousfi Algerian state-owned oil and gas investment in the country, although itstated that the North African country company Sonatrach decided that most of would present several challenges, such asmight have to change the location of the its output should be used locally to the lack of cooling water.Tiaret refinery for logistical reasons as satisfy a rise in domestic demand. At the time, a source quoted by MEEDwell as start importing heavy crude. The location of the refinery has also said: “The project is economically viable Bloomberg quoted the minister as been an issue, and since its inauguration despite being away from the coast. Mostexplaining that to satisfy the need for a it has been apparent that siting the project of the water will come from Tiraret’swater source, the 15 million tonne closer to the coast would have proved water supply and a new water treatmentrefinery should be relocated to the coast more suitable. An APS Review on plant is being built in the town. The restinstead. Algeria stated, however, that the Algiers will come from desalination facilities on “We believe it is better to sell our oil, government had insisted on Tiaret, the coast. As long as the refinerywhich is one of the most expensive in the claiming it would stimulate regional optimises the recycling of water, thereworld, and import heavy oil that is better will be enough”.for the refining industry”, Yousfi added. According to Bloomberg, Algeria The Tiaret refinery project has suffered plans to double its refining capacity to 50several setbacks since 2007, when it million tonnes per year (1 million bpd)started looking for an international by 2030, compared with the current 25partner to develop the 300,000 barrel per million tonnes (500,000 bpd) it producesday refinery. It was initially intended to at present, the Oil Minister explainedbegin exporting in 2008. However, the further. Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 7. Downstream Monitor MENA 13 April 2011, Week 01 page 7 REFININGIran holds talks tofund refining projectsThe National Iranian Oil Refining and Countries’ (OPEC) second biggest crude billion worth of investment, US$600Distribution Company (NIORDC) is oil producer after Saudi Arabia, years of million of which has also been met. Inreported to be holding talks with sanctions have crippled its refinery aggregate, US$7 billion worth ofunnamed foreign companies to speed up infrastructure and turned it into an investment is needed to upgrade both thedevelopment plans for Iran’s oil importer of petrol. Abadan and Esfahan refineries. But inrefineries. Zeighani said that the development of total, plans for upgrades at 10 are under Speaking to local media in Tehran, the Esfahan oil refinery alone would way, including: the Shahid TondgouyanNIORDC’s managing director Alireza require US$4 billion worth of refinery (Tehran); Esfahan; Lavan;Zeighami said that the company had held investment, of which US$600 million Tabriz; Abadan; Bandar Abbas and Arak.talks with foreign companies as well as had already been acquired. If these projects are successfullydomestic banks and oil companies to He said that the Esfahan oil refinery launched Iran’s production capacity ofupgrade the Abadan oil refinery. development plan needed to be speeded petrol, gasoil, kerosene and liquefied The country is hoping to sign contracts up because fuel oil production at the natural gas (LNG) will rise by 40to design, purchase, construct and refinery could reduce imports by 70,000 million, 18.2 million, 7 million and 5.5finance a wave of upgrades. Iran’s oil barrels per day. The output of the high million litres per day respectively, saidrefineries are badly in need of an upgrade value oil products, such as petrol and Zeighami. However, most analystsand the sums quoted are many billions of gasoil, would also be raised. believe that many of these plans will failUS dollars. Although the country is the Meanwhile, the Abadan oil refinery because of the country’s inability toOrganisation of Petroleum Exporting development plan requires US$3.3 access foreign capital.IPIC revives Fujairah plansAfter years of being put on the that came in the way of an FID being Corp., the Royal Dutch Shell Group,backburner, Abu Dhabi-based taken. India’s IOC and Austria’s OMV toInternational Petroleum Investment In July 2006, IPIC and ConocoPhillips partner on its proposed refinery. TheCompany (IPIC) has once again started of the US signed an agreement to carry facility will process Abu Dhabi onshoregroundwork to revive its planned out a feasibility study for the facility that crude, with the feedstock being suppliedgrassroots crude oil refinery at Fujairah would have a nameplate capacity of through an at least 325-km dedicatedon the east coast of the United Arab 500,000 bpd. However, with project pipeline, to be laid from Habshah toEmirates (UAE). costs estimated to be in excess of US$10 Fujairah. A Gulf-based source said IPIC was “in billion, the planned venture was shelved. “A decisive factor will be thenegotiations with the UK office of the ConocoPhillips has since pulled out of marketing of refined products. IPIC hasShaw Group for the position of [project the scheme. to decide whether it will [target] Europe,management consultant (PMC)]”. In mid-2008, IPIC started talks with the US or Asia. Product specifications The source, who wished to remain the US’ Occidental Petroleum Corp., are tight in any of the consumer regionsanonymous, added: “Wood MacKenzie Total of France, Kuwait Petroleum and that will impact the final project cost.of Edinburgh has prepared a feasibility Construction of a new refinery on thestudy for the 200,000 [barrel per day] East Coast to take the pressure off Abufacility and IPIC will now be working on Dhabi’s western region will also bean FID [final investment decision]. The another factor,” the source added.project is estimated to cost US$3.5 At present, IPIC is also planning itsbillion, as per initial estimates.” participation in refineries in Oman and Project cost had been a major factor Morocco. Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 8. Downstream Monitor MENA 13 April 2011, Week 01 page 8 FUELSNorth African turmoilimpacts jet fuel pricesAir carriers around the world are facing (GBTA) published by The Economist, “The price of oil has had an unnervingmore pressure to increase fuel surcharges the spread or worsening of instability in ability to blow up the world economy”,as the result of the rising cost of crude North Africa and the Middle East could the Economist reported, adding that theoil, blamed on the continued political have a serious impact on jet fuel prices economic implications of a major oilinstability in the Middle East and North and the survival of airlines. price shock “should not beAfrican regions, as well as the recent It gave the example of the US travel underestimated.” It added: “Thecrisis in Japan. market, which could suffer an extra cost economic health of the airlines could end According to Eurasia Review, of US$9 billion with oil priced at up being the least of our worries.”however, jet fuel has continued to show a US$200 per barrel. However, GTBA AMR CEO Gerard Arpey was quotedstrong position in the market, amidst assumed prices would return to normal by the International Business Times asincreased prices for crude and petroleum by 2013. saying: “The bad news is that we’re notproducts because of emerging and newly faced with another fuel crisis. To theindustrialised economies such as China, extent that oil dampens economicwhere air travel demand is growing An increase in jet fuel growth, we are all very worried aboutrapidly. what is happening in oil markets.” However, it recognises that recent prices would have a This follows reports by market analystsevents in the Middle East and Japan significant knock-on effect saying that there is widespreadcould have an impact on demand. scepticism that Libyan oil output will According to a study by the Global on airlines and travel rebound when fighting ends.Business Travel Association Foundation operatorsTotal’s Yemeni production ‘normal’Total’s Yemeni liquefied natural gas “For the time being, it has not hurt: we bombing of oil pipelines.(LNG) facility – Yemen LNG – has not produce normally,” de Margerie said, However, the unrest has already had abeen affected by the mounting political before adding that the firm’s production significant impact on many otherunrest in the country, CEO Christophe de target for the coming year would remain overseas operators.Margerie has said. unchanged despite the uncertainty On April 8, Kuwait Energy, a MENA Speaking at an oil conference in Paris surrounding the region. focused oil and gas producer, said that iton April 6, he confirmed that the plant, Total, which heads the consortium that might postpone the initial public offeringwhich is located in Balhaf area in the owns the plant – the only one of its type (IPO) of its shares on the London Stockeastern province of Shabwa, had carried in Yemen – had previously stated on Exchange (LSE) as a result of theon normal operations. March 28 that it would remain conflict, with its Yemen oil and gas To date, the company has shipped two committed to its operations in the exploration projects also likely to becargoes of LNG every week since the country as long as the safety of its delayed.protests began, with its 100th cargo workers and installations was not “We’ve always said our IPO will bedelivered in March. compromised. subject to market conditions and we The company is scheduled to ship 104 This announcement came days after it know the market conditions aren’t idealcargoes in 2011. Yemen LNG is the warned customers of potential supply as far as the Middle East region isworld’s 16th largest seller of such gas, curtailments and a possible force- concerned,” said Paul Ditchburn, theand has the capacity to supply up to 6.7 majeure on exports as a result of the company’s vice-president of planningmillion tonnes per year. violence, which has seen the recent and portfolio management. Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 9. Downstream Monitor MENA 13 April 2011, Week 01 page 9 PETROCHEMICALSGulf may require US$55 billioninvestment in petrochemicalsThe Gulf region could require an 20% of the total global petrochemical Industries Corp. (SABIC), Abu Dhabiinvestment of around US$55 billion over output,” he added. No details of potential Basic Industries Corp. (ADBIC), Abuthe next five years in order to increase projects or infrastructure developments Dhabi Polymer Company (Borouge),annual petrochemical production by were given. Chemeyaat and the Chemical City in46%, the Gulf Petrochemicals and A giant 75% increase in plastics Abu Dhabi could become the world’sChemicals Association (GPCA) has said. production is predicted to be a driving leading petrochemicals players. Commenting on the association’s latest force behind this rise, with al-Sadoun In total, the global petrochemicalreport, GPCA secretary-general Dr describing the Gulf region as having industry is worth more than US$600Abdul Wahab al-Sadoun told Gulf News become “the centre of gravity with billion, with the Gulf’s current 11% stakeon April 6 that overall production was regard to producing and exporting valued at more than US$50 billion,expected to climb from the current levels plastics raw material”. making it the second biggest source ofof 105 million tonnes per year to 155 He said: “By 2015, the production of income for Gulf nations. Currently, 55%million tonnes by 2015. the polyethylene, polypropylene, PVC of the region’s petrochemicals are “This could require potential and polystyrene in the region will double exported to China and the Far East, withinvestments to the tune of 201.85 billion to reach more than 23.6 million tonnes demand from these markets expected todirham (US$55 billion) in the next five compared with [2010’s] figure of 13.5 climb rapidly in the coming years.years,” he said. “By then, the Gulf’s million tonnes.”petrochemicals industry will represent As a result, firms such as Saudi BasicSetback for Algerianmethanol facilityKuwait’s Qurain Petrochemical The source added: “Also, Sonatrach The front-end engineering and designIndustries Company (QPIC) has said that will control 51% of the project instead of (FEED) work was completed in earlya recent management restructuring at the initial 49% as agreed initially, owing 2009, with construction expected to takepartner Sonatrach has led to delays at its to changes in the law in Algeria.” 32 months after the final agreement hasAlgerian methanol project. The contract for the US$900 million been reached. Once completed, the Speaking at the company’s general facility, which is located in Arzew, 35 facility is expected to have a productionassembly, chairman Sheikh Mubarak al- km north-east of Oran, was originally capacity of 1 million tonnes of methanolMubarak al-Sabah reported that awarded in 2007 to a consortium per year.Sonatrach had “requested radical changes consisting of QPIC, Sonatrach, Japan’s On March 22, Issa Al-Isaa, vice-boardof the agreement”, and that it was Mitsui and Germany’s Lurgi. chairman of QPIC, reaffirmed hiscurrently “re-studying” the project. No company’s commitment to the facilitytimeline or deadline was given. despite its slow initial progress. However, reports have since emerged “All agreements are in place and wethat Sonatrach’s requests are instead expect the final signing to happen anyrelated to gas pricing and ownership day now,” he said in an interview withstructure, which has prompted QPIC’s Petrochemicals Middle East magazine.reassessment. “We are ready to award US$200 On April 3, Arabian Oil and Gas million EPC contracts for the project inquoted an unnamed source as saying that the near future. We expect thethe Algerian government now wanted to commercial start-up in 2013,” hesell gas at “international prices and not at added.preferential prices as agreed initially”. Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 10. Downstream Monitor MENA 13 April 2011, Week 01 page 10 PIPELINESOGC plans new pipeline to DuqmOman’s state-owned gas transport authorities. Company, the Oman Observer reported.operator, the Oman Gas Company “This is a substantial project, centering The gas-fired plant is due to come into(OGC), has confirmed plans to build a on the construction of a roughly 200-km operation in 2012 with a 445-MWnew 200-km gas pipeline to the Duqm pipeline with a capacity large enough to capacity.area of the Wusta coast on the Arabian meet future demand growth in the Duqm The desalination plant will produce 15Sea. area,” Ojaili said. million gallons (68.2 million litres) per The new pipeline will supply power to OGC operates Oman’s 2,500-km day. Work is under way on a majora new port and ship repair yard now national gas grid and has, since its compression station in Nimr that willbeing developed there. establishment in 2000, expanded into sustain pressure for gas supplies to “This project is still in the concept other sectors of the country’s Dhofar Power, Salalah IWPP, Raysutphase and we hope to be able to define downstream industry, including gas Cement, Salalah Methanol and thethe scope of the venture before the year planning and engineering consultancy Raysut Industrial Estate.end,” the company’s CEO Yousuf al- and project management services. The company will also build a loop gasOjaili was quoted as saying in the Oman It plans eventually to expand into the pipeline across the existing Salalah lineObserver. transportation of liquid hydrocarbons. that will guarantee supply to southern He said it had yet to be decided where The company is presently nearing Oman.in central Oman the pipeline’s source of completion of a gas supply station and OGC has been awarded thegas would originate. related pipeline network that will supply operatorship of a gas supply station at But he added that discussions on this a new independent water and power Sur that will regulate supply for a 2,000-matter were being conducted with the project (IWPP) in Dhofar for the MW independent power project (IPP) toMinistry of Oil and Gas and other Sembcorp Salalah Power and Water be built on the Sharqiya coast.Egyptian pipeline reopens; gasshipments to Israel resumedEgyptian gas transportation company between the two countries, the LA Times Israel, with the aim of achieving a betterGasco has announced that an explosive reported. return to Egypt.”was removed from its El Arish-Ashkelon In fact, Egypt is also trying to amend According to Reuters, Egypt exportspipeline, and this has now been gas export deals with other countries. gas to Israel through the EMGreopened, according to the Ampal- MENA quoted Petroleum Minister consortium, owned by EgyptianAmerican Israel Corp., which holds a Abdullah Ghorab as saying: “there is businessman Hussain Salem, Egypt12.5% interest in East Mediterranean Gas currently negotiation under way in full Natural Gas Co., Thailand’s PTT, US(EMG). force to amend the gas agreements businessman Sam Zell, Ampal-American Upstream reported that the pipeline signed with various countries, especially and Israel’s Merhav.had been shut down as a precautionary The consortium had been accused ofmeasure. However, gas supply is now selling gas to Israel – which representsback to normal in Egypt and Israel. 4% of its total production and 45% of The Egypt-Israel gas export deal has Israel’s gas needs – at below marketsuffered several setbacks since the fall of prices. However, Israel was stillformer Egyptian president Hosni considering a contingency plan to coverMubarak and the North African nation possible shortfalls in the natural gashas now resumed shipments of natural supply from Egypt as the Egyptian pressgas for the first time since the political published reports saying that Egyptturmoil started. However, the long-term might try to reduce the amount of gasfeasibility of the US$2.5 billion gas exported to Israel because of its ownexport deal is still a concern, as Egypt’s domestic energy needs.new government could warm the dispute Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 11. Downstream Monitor MENA 13 April 2011, Week 01 page 11 TERMINALS & STORAGEADNOC stalls on Shah contractThe Abu Dhabi National Oil Company “We are waiting for the award to be development.(ADNOC) has extended the bid bond for issued any time,” the source added. A Under the terms of the deal, ADNOCcontractors seeking the sulphur storage representative from a rival bidder, who holds a 60% interest in Al Hosn Gas,and export facilities tender at its giant also wished to remain unnamed, went on which was formed in 2010 to manageShah sour gas field project. to say that the delay had not affected and operate the Shah project. In January, Despite the two-week delay, which CCC’s position as frontrunner for the Occidental agreed to take over thewas attributed to “internal, administrative contract. remaining 40% from US rivalmatters” by an unnamed source quoted “CCC is a strong contractor in the ConocoPhillips, which withdrew fromby MEED, the Athens-based Middle East. Without any big accident or the venture in April 2010.Consolidated Contractors Company incident, they will get the project,” he So far, eight of 10 contracts for major(CCC) is still expected to secure the said. development packages at the field haveUS$500 million contract. Located deep beneath the desert, the been issued, with just the sulphur Originally the deal, which includes the Shah sour gas field lies around 180 km operations and the construction of theconstruction of sulphur granulation south-west of Abu Dhabi. On March 31, project’s power and water plants to befacilities, liquid sulphur storage tanks a 37 billion dirham (US$10 billion) joint tendered. Despite the changes inand solid sulphur granule storage venture agreement was signed between ownership and delays in the tenderingfacilities, alongside conveying systems ADNOC and US group Occidental process, the scheme is still expected toand a marine terminal, was expected to Petroleum that will see the two firms reach completion by the intendedbe finalised by the end of March. share the cost of the project’s deadline of September 2014.Aramco-Dow makes progresson Saudi EPC contractsA team of Saudi Aramco and Dow A tender is also scheduled to be issued Engineering.Chemical Company of the US is making by early May for a major storage tank RTIP plans to build a megaconsiderable progress with two major package to serve the planned facility. petrochemical complex that will includeengineering, procurement and Prequalification documents for the a 4 million tonne per year multi-feedconstruction (EPC) contracts covering its estimated US$500 million EPC contract world-scale cracker and 35 downstreamlong-delayed Ras Tanura integrated have been submitted by 11 companies. units, with the aim of producing over 250project (RTIP) at Jubail in Saudi Arabia. The scope of works will entail the different products. The total project cost The deadline for submission of fabrication and installation of 74 general is reckoned to be US$15 billion.technical and commercial bids has been and two cryogenic tanks, inter- Over the next few weeks, Aramco-extended to April 18 for the offsites and connecting pipelines and an export Dow is expected to issue three more EPCutilities (O&U) package, worth at least pipeline. tenders to build the hydrogen, carbonUS$800 million. Six companies are Firms that submitted prequalified monoxide and ammonia plants at theexpected to participate in the tender. papers include: Larsen & Toubro and complex, polymeric methylene diphenylThey are: WorleyParsons of Australia; Punj Lloyd, both of India; CB&I of the di-isocyanate (PMD) and toluene di-Canada’s SNC Lavalin, and Foster US; Daelim Industrial Company, isocyanate (TDI) production facilities,Wheeler Corp., Jacobs Engineering, Daewoo Engineering & Construction, GS and aniline-formalin and DNT-nitricFluor Corp. and Kellogg Brown and Root Engineering & Construction, Hyundai units.(KBR), all of the US. Engineering & Construction and Hyundai Heavy Industries, all of South Korea; the UK’s Petrofac International; Saipem of Italy and China’s Sinopec Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 12. Downstream Monitor MENA 13 April 2011, Week 01 page 12 NEWS IN BRIEF Aramco for general engineering and previous shutdowns.COMPANIES project management services (GES+). The work carried out during this latest Officials did not disclose the contract shutdown at the refinery included thePetrofac Saudi value; however, they noted that the work crude tower trays being upgraded to aArabia gets is expected to be executed by its office in new type of high-capacity stainless steelindependently al-Khobar, Saudi Arabia. The duration of trays, as part of a total revamp to the GES+ contract is five years and improve the diesel quality and allow acertified covers all engineering, procurement and refinery throughput increase to 250,000Petrofac has announced that its Saudi construction management services for barrels per day.Arabian business, Petrofac Saudi Arabia, Saudi Aramco’s Capital Programme. Also as part of the TRS, the Continuoushas achieved independent certification to Saudi Aramco is offering the GES+ Catalyst Regeneration/platformerinternational quality standard ISO 9001. contract to only a select number of reactors’ centre pipes and scallops wereThe standard is for project management, companies for the execution of its upgraded to a more robust design toengineering, design, procurement, general engineering and project improve the reactor’s integrity andconstruction management, management services needs. Under the reliability.commissioning and training and contract award, Jacobs is providing a Despite adverse weather and other issues,associated activities for oil & gas variety of design and related services, as the shutdown was completed in theproduction and processing facilities, well as the full range of project scheduled 38 days. Nearly 3,000 Saudipetrochemical plants, refineries and management services. Aramco employees and contractorsrelated utilities. In making the announcement, Jacobs worked together to complete the taskPetrofac said that it has successfully Group Vice President Mike Coyle stated, safely and on time, Aramco said in aimplemented the quality management “Jacobs is delighted to have the statement.system for the business in Saudi Arabia. opportunity to build upon our Safety and environmental issues wereIn a statement, Petrofac said that the longstanding relationship with Saudi seamlessly integrated into the operation’s“system is underpinned by a Aramco as one of its preferred providers scope, and the outstanding performancecomprehensive set of technical and on such a significant programme. When of employees – and contractors – provedbusiness documentation, which has been fully developed, the GES+ programme to be a testament to the success of thiscreated in line with best practice. Now not only increases our opportunities, but holistic approach, organisers said.fully implemented, the team has also also enhances the stature of Saudi Young engineers and technicians weredemonstrated their approach to Arabian engineering and construction given major responsibilities, joining theirmaintaining and continually improving throughout the world.” mentors in playing a major role, enablingthe system.” Jacobs is one of the world’s largest and knowledge-sharing as an added outcome.Imad Shanan, senior vice president and most diverse providers of technical, ARABIANOILANDGAS.COM,general manager for the Saudi operations professional, and construction services. April 7, 2011 JACOBS ENGINEERING GROUP,commented: “Of our many achievementsto date, I am delighted to announce this April 5, 2011 NATO rejects Ghaddafi’s refinerymilestone which demonstrates ourcommitment to both quality and integrity Yanbu refinery bombing claimsand to building an enduring business in shutdown completed NATO on Thursday rejected claims bythe Kingdom. My sincere congratulations Employees at Saudi Aramco’s wholly the regime of Libyan leader Moamergo to the team on achieving this goal.” owned Yanbu Refinery recently Ghaddafi that it had bombed an oil ARABIANOILANDGAS.COM, completed a wide-ranging and complex refinery, and said it was looking into April 6, 2011 Total Refinery Shutdown (TRS) on allegations that its airstrikes had killedREFINING schedule and without any safety more than 10 rebel fighters. incidents. Taking out oil refineries – which are The scope of the TRS covered 320 pieces currently meeting only domestic energyJacobs wins of equipment, 1,000 maintenance work needs as exports have been banned byservices contract orders and more than 30 projects. The United Nations sanctions – couldfrom Saudi Aramco refinery undergoes extensive maintenance every five years to ensure potentially increase the plight of civilians, which NATO is striving toJacobs Engineering Group Inc. the safety, integrity and reliability of the protect.announced on Tuesday that it was facility. However, the TRS that endedawarded a major contract by Saudi March 10 was more extensive than Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 13. Downstream Monitor MENA 13 April 2011, Week 01 page 13 NEWS IN BRIEF“The accusation by Colonel Ghaddafi Oil Company (KOC), Sami Al Rasheed,that NATO was responsible for fires in who said the country had raised its Door is open tothe Sarir oil fields is false and is a direct production capacity to around 3.3m bpd, Chinese investorsresult of his attacks on his own people but that it aimed to reach a target of 4m Kuwait Petroleum International, theand infrastructure,” the Western military bpd by 2020. With reserves of some international marketing arm of Kuwaitalliance said in a statement. “We are 104bn barrels and 63trn cu feet of gas, Petroleum Co., plans to enter intoaware that pro-Ghaddafi forces have Kuwait is currently the fifth-largest another joint venture to market fuel thatattacked this area in recent days, which producer in OPEC, behind Saudi Arabia, will be produced by its 300,000-barrel-a-resulted in at least one fire at an oil Iran, Iraq and the UAE. day refinery project in southern China,facility north of Sarir. To try and blame it Kuwait is also planning to build two the company’s vice president and chiefon NATO shows how desperate this olefins plants as part of a $270bn planning officer said on Tuesday.regime is,” said Lieutenant-General development of projects to be completed The company hopes that its Q8 brand,Charles Bouchard, who commands over the next 20 years. Of that which is used at its service stationsNATO operations over Libya. investment, $81bn is allocated for the across Europe, will be in China,Bouchard said that pro-Ghaddafi forces next five years and is to be split evenly Mohammed Rashed Jasem said on theattacked because they want “to disrupt between production, refining and sidelines of an industry conference inoil getting to Tobruk.” Separately, a distribution, Al Zanki said at the Kuwait City.NATO official said the alliance was CERAWeek energy conference. He also China’s National Development andaware of reports that its planes had killed predicted that two-thirds of the world’s Reform Commission last week grantedmore than 10 opposition fighters during energy demand will come from Asia by preliminary approval to a joint venturean air raid between the eastern rebel-held 2030. refinery and petrochemical complexcity of Adjabiya and the oil port of Khaled Al Mushaileh, an official from between China Petroleum & ChemicalBrega, where the opposition is fighting Kuwait National Petroleum Company Corp. (SNP), also known as Sinopec, andGhaddafi’s forces. “We are looking into (KNPC), said in October 2010 that the KPC in the southern Guangdongit and we are trying to establish the government would promote new refinery province.facts,” the official told the German Press ventures and upgrade facilities already in The total investment for the complex isAgency dpa. “It is difficult for us to operation to boost refining capacity to about CNY60 billion (US$8.8 billion)establish the facts because we have no 1.4m bpd. There are currently three and the refinery is scheduled forboots on the ground.” refineries in Kuwait – Mina Abdulla, completion in 2014.On Tuesday, the alliance admitted that Mina Ahmadi and Shuaiba – with KNPC Sinopec will own 50% of the project,some rebel fighters and civilians were serving as the refining arm of KPC. while KPC will own 30%, pendingkilled during the weekend, after NATO Historically, Kuwait has relied on its regulatory approval.forces mistook celebratory gunfire for an abundant reserves of light crude oil Of the remaining 20%, US-based Dowattack. (crude with a low viscosity, which Chemical Co. (DOW) will invest an DEUTSCHE PRESSE-AGENTUR, requires less-intensive refining) to serve undisclosed amount to become a partner April 7, 2011 its petroleum industry. Burgan field, the in the refinery, specifically the second-largest in the world after SaudiKuwait increasing oil Arabia’s Ghawar field, produces 1.7m petrochemicals portion, while anotherrefining capacity up international oil company will take up bpd of light crude and has been the the rest.to 50% mainstay of Kuwait’s oil production BP PLC (BP.LN) is among the since the 1940s.Investor confidence in Kuwait’s energy international oil companies that could be While various reports had previouslyindustry should get a welcome fillip from a potential partner in the refinery, and the stated that the Burgan field was maturingreports that the state-owned oil company additional partner could be announced in and unable to sustain greater productionis set to increase domestic oil refining a few months, Jasem said. Jasem also rates, late last year KOC revealed that itcapacity by more than 50% over the next said the “door is open” for any had indentified further crude reservesfive years, the Global Arab Network international oil companies who wish to equivalent to 12bn barrels at Burgan. Thereported according to OBG. invest. field’s reserves were “much higher” thanFarouq Al Zanki, the CEO of Kuwait A spokesperson for BP in London previously announced, the state newsPetroleum Corporation (KPC), told a declined to comment. agency KUNA reported in April 2011,conference in the US on March 9 that Another potential investor could be citing the deputy prime minister forKuwait plans to build a refinery with the French oil company Total SA (TOT), economic affairs, Sheikh Ahmad Alcapacity to process 615,000 barrels per which has said it is interested in building Fahad Al Sabah.day (bpd). This followed a statement in a refinery in China with a local partner GLOBAL ARAB NETWORK,late 2010 from the chairman of Kuwait and a foreign oil producer. March 29, 2011 Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 14. Downstream Monitor MENA 13 April 2011, Week 01 page 14 NEWS IN BRIEFIn December, Royal Dutch Shell PLC The Euro-5 is one of the European E&C Middle East Co. Ltd. and Nasser S(RDSB.LN) said it was no longer seeking emission standards which define the Al Hajri Corporation, winning multipleto participate in the Kuwait-Sinopec acceptable limits for exhaust emissions insulation services contracts in support ofrefinery project. of automobiles. The emission standards the Jubail Export Refinery constructionFrom now, all of KPI’s international are defined in a series of European Union project in Saudi Arabia, with a combinedrefinery projects will include a directives staging the progressive value of approximately US$13,000,000.petrochemicals business because the introduction of increasingly stringent The contracts build on Cape’s existingcompany wants to take advantage of the standards. Another significant plan is the relationship with Sinopec and Nasser Sentire value chain of the downstream production of the Propane, also known as Al Hajiri on the Kayan site in Saudibusiness, Jasem said. Propylene, which is a waste product Arabia, for both customers.He also said India is not a strategic created when crude oil is refined into YIN, April 7, 2011country to invest in as it has a gasoline, diesel fuel and other products.downstream surplus. TEHRAN TIMES, April 12, 2011 Saudi Aramco fullKPI is also planning a 200,000-barrel-a- export allocationday refinery in Nghi-Son in Vietnam, Middle east oils rise as processing gains Saudi Arabian Oil Co. will supply fullwith partners PetroVietnam, Idemitsu contracted volumes of crude to AsianKosan Co. (5019.TO) and Mitsui boost refiner demand refiners in May, according to refineryChemicals Inc (4183.TO). Middle East oils rose against their officials. Saudi Aramco will provide 100Its 200,000-300,000-barrel-a-day benchmarks as refinery demand climbed percent of cargoes sold under long-termrefinery in Balongan in Indonesia is at following increases in processing profits. contracts for an 18th month, according tothe feasibility stage; the refinery will be Murban, produced by Abu Dhabi refiners in Thailand and Japan whocompleted in 2017. National Oil Co., for June loading requested anonymity. Saudi Aramco’s DOW JONES, April 5, 2011 climbed 7 cents to a premium of 18 cents full export allocation follows a Dec. 11Shazand oil refinery a barrel to its official selling price, decision by the Organization ofdevelopment plan according to data compiled by Petroleum Exporting Countries to leave output quotas unchanged for the seventh93% complete Bloomberg. Qatar Marine for the same period rose 9 cents to a premium of 1 time since 2008.The development plan of Arak’s Shazand cent a barrel above its benchmark, REUTERS, April 11, 2011 Eni pays Iran Oil Co.oil refinery is currently 93.5% complete. according to data compiled byThe unit will entirely come on stream by Bloomberg.the end of Iranian month of Shahrivar Demand for crude has climbed as Eni SpA (E), Italy’s biggest oil and(September 22), SHANA news agency refiners ramp up runs to take advantage natural gas company said it paid US$888reported. of rising processing profits. Gasoil’s million to the National Iranian OilThe first phase of the project with the premium to Dubai, a measure of Company for crude last year andcapacity to produce 2 million litres of profitability, climbed 48 cents to purchased a further US$1.1 billion ofpetrol per day came on stream at the cost US$22.96 a barrel today, according to Iranian oil from others in the sameof US$3.5 billion in February. Once the data from broker PVM Oil Associates period.second phase of the Shazand oil Ltd. Eni’s refining and marketing divisionrefinery’s development plan come on Oman oil for immediate loading bought 1.6 million metric tons of oilstream by the end of Iranian month of increased US$2.03, or 1.8%, to $117.53 a from the Iranian state-owned companyKhordad (June 21), some 2.7 million barrel today, according to data compiled last year compared with 980,000 tonslitres per day would be added to the by Bloomberg. Dubai for loading in June worth a total of US$419 million in 2009,refinery’s petrol production capacity. was up 1.8% at US$117.05 and Murban it said in a filing this week to the U.S.By completion of the remaining phases crude climbed 1.8% to US$121.07. Securities and Exchange Commission.of the refinery, the nation’s petrol BLOOMBERG, April 9, 2011 ENI, April 8, 2011production capacity would be raised by12 million litres per day. The new Cape Middle East Iran Oil Show 2011development plans for the oil refinery contracts Tehran Times reported thatindustry are focused on reduction of representatives from 40 countries will Cape’s Middle East business has furthersulphur and other pollutants in order to participate in Iran’s 16th International expanded its relationship with importantget Euro-5 standard in production of Oil, Gas, Refining & petrochemical customers in the Middle East, Sinopecpetrol for cars, Press TV reported. Exhibition. Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 15. Downstream Monitor MENA 13 April 2011, Week 01 page 15 NEWS IN BRIEFSome 927 domestic and 460 foreigncompanies from countries such as FUELS QAFAC hasAustria, Spain, Australia, England, Italy, expansion in itsGermany, Turkey, Denmark, Russia, Saudi fuel oil loading sightsFrance, the Netherlands, India,Singapore, Japan, China, Taiwan, April-loading fuel oil exports from Saudi Qatar Fuel Additives Company LimitedThailand, the United Arab Emirates, Arabia, the Middle East’s largest (QAFAC) aims to increase its currentCanada and Brazil will take part in the supplier, currently stands at 350,000 production capacity of methanol andevent. tons, down from March’s 705,000 tons, MTBE in the near future according to TEHRAN TIMES, April 8, 2011 partly due to planned refinery Rashid Misfer Al-Hajri, General turnarounds in the kingdom, traders said Manager QAFAC.EGPC raises stake on Monday. ExxonMobil sold up to “We are conducting initial studies to 90,000 tons of high-viscosity 700- increase our production capacity in ourThe Egyptian General Petroleum centistoke (cst) fuel oil for April 26-28 site in Messaid and Ras Laffan industrialCorporation (EGPC) raised its stake in loading from the joint-venture Samref cities,” Al-Hajri said in interview withEgyptian Refining Company (ERC) to refinery in Yanbu, to Thailand’s PTT, Al-Sharq newspaper. “This plan will24.2 per cent, up from 15 per cent, traders said. depend on the approval of Qatarleaving the Arab Refining Company’s REUTERS, April 11, 2011 Petroleum, as it provides feedstock forstake at 75.8 per cent. This would raise Saudi LPG exports our projects. Once we received feedstockthe public sector stake to 49.5 per cent of allocation we will proceed to thean oil refinery to be built in Mostorod,north of Cairo, where there is already a up execution.” Saudi Arabia’s exports of liquefied The company has a total productionrefinery project owned by EGPC’s Cairo petroleum gas (LPG) such as propane capacity of 1.611 million tonnes per year,Oil Refinery Company, which will lease and butane rose 30 percent in February including 918,000 tonnes per year ofland and provide ERC with fuel oil as from a year earlier, while exports of methanol and 693,000 tonne per year offeedstock. petroleum products fell, official data MTBE. AHRAM, April 11, 2011 showed. LPG exports increased to QAFAC started commercial operation inRefinery shutdowns 166,786 metric tons from 128,827 tons 1999 with a total investment ofboost gasoil last year, according to data Saudi Port US$600m. The company is a joint Authority’s website. The Kingdom venture between Industries Qatar, OPICReuters reported that gasoil premiums exported 39 percent more LPG from the Middle East Corporation, Internationalheld firm in the Middle East, supported previous month. Exports of all oil Octane Limited and LCY Investmentsby refinery shutdowns in the region and products, excluding crude, from Saudi Corp.Asia while naphtha was firm and fuel oil ports fell 2.7 percent in February. ARABIANOILANDGAS.COM,recovered from a three week slide. One SAUDI GAZETTE, April 11, 2011 April 10, 2011trader said that the market is balanced ingeneral terms despite seeing some Iran delays petrol Iran petroltightness in the low sulphur gasoil known export productionas 500 ppm. Iran has put on hold, plans to export Iran’s petrol production capacity will REUTERS, April 11, 2011 petrol in the near term due to a difference reach 80 million litres per day by the endRefining margins in the specifications of the petrol it of the March 20, 2012, oil minister saidmay improve produces as compared with market here on Monday. Masoud Mirkazemi, demand, a source close to the matter said Iran oil Minister added that some 23 toEssar Oil expects refining margins to Tuesday. The key concern lies in the 27 million litres would be added to thestay healthy or even improve further in octane number of petrol produced at nation’s petrol production capacity in thecoming months on the back of the state-owned refiner the National Iranian current year.political turmoil in the Middle East. “We Oil Refining and Distribution Company. The National Iranian Oil Refining andsee the positive trend seen in the last year While the specifications are equivalent to Distribution Company (NIORDC) haveas likely to continue,” CEO Naresh Euro 2 emission standards, petrol from said the average Iranian petrolNayyar said. Essar said gross refining NIORDC’s refineries have an octane consumption has declined to 61.1 millionmargins for the March quarter rose to number below 90 RON. litres per day.US$8.15 a barrel from US$5.37 a barrel PLATTS, April 5, 2011 IIFL, April 7, 2011a year ago. PTI, April 13, 2011 Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 16. Downstream Monitor MENA 13 April 2011, Week 01 page 16 NEWS IN BRIEF commercial director of Fara Shimi Rooz, global network of 38 System Houses,PETROCHEMICALS said on Monday. Four new bitumen was launched in the presence of His refineries are being built to increase Excellency Abdulla Sultan Al Fan AlPetro Rabigh to start Iran’s capacity, with the projects’ Shamsi, Counsellor of Industrial Affairs60-day maintenance development split evenly between the at the UAE Ministry of Economy.work state government and privately owned Wayne Smith, president BASF companies, Fathi said. Polyurethanes, said: “This investmentRabigh Refining and Petrochemical ICIS, April 11, 2011 further emphasises the significance ofCompany (Petro Rabigh) is set to start a this region for BASF and demonstratestwo-month scheduled maintenance for its Saudi Petrochemical that we are prepared to accompany ourintegrated complex located in Rabigh, on exports rise customers’ growth in all regions of thethe western coast of Saudi Arabia, the world and desire to be their preferred Saudi Arabia, holder of the world’scompany said in a statement. partner of choice. In Dubai, we will largest oil reserves, boosted“The maintenance work will start from strengthen existing customer petrochemical exports in the first twothe 21st April, and will last 60 days,” the relationships and implement our proven months of the year on rising demandcompany statement said. “We will start worldwide strategy of locally operated, from Asia and increased local productionthe operation gradually after 45 days.” customer-oriented System Houses.This of ethane, a feedstock. The countryThe company also revealed that it has step once again shows that we are shipped 4.65 million metric tons ofinventories to last it for 30 days. “We continuously expanding our leading petrochemicals from its ports in Januaryexpect a reduction of our sales during the position in the polyurethane market.” and February, up 6.8 percent from 4.35second half due to this maintenance Abdulla Belhoul, managing director of million a year earlier, Saudi Portsperiod, as our inventories covers only 30 Manufacturing and Logistics Cluster, Authority said yesterday on its website.days,” it added in the statement published TECOM Investments, said: “We are BLOOMBERG, April 11, 2011on the Saudi Stock Exchange (Tadawul). delighted to welcome BASF, one of theThe company has also announced the Gulf petrochemicals leading global chemicals brand, to Dubai jumpstopping of production from its two Industrial City. Our logistically strategicpolyethylene units on April 5 due to a location adds enormous value to anytechnical issue. “We decide to start the Annual petrochemicals production of the company that sets up operations and wemaintenance at the units due to this Gulf States is expected to jump around are keen to provide all required servicestechnical issue, and we don’t expect this 46 per cent to 155 million tons per and facilities to ensure smoothto affect the company’s financial annum by 2015, up from 105 million operations.revenues,” the company statement read. now, according to a latest report by the BASF’s new Polyurethane Solutions ARABIANOILANDGAS.COM, Gulf Petrochemicals and Chemicals System House will develop, serve and April 7, 2011 Association (GPCA). The region’s manufacture innovative PU systems for a current production represents about 16 wide range of industries. The new facilityEgypt naphtha sale per cent of the total 700 million tons occupies 2.8 hectares of land in the worldwide petrochemicals output. By chemical business zone of DubaiEgypt sold 25,000 tons of light naphtha 2015, the Gulf States will contribute a Industrial City, which has a logisticallyfor April 17-19 loading from Suez to fifth (20 per cent) of the global output, strategic location between growingNoble at about US$6 a ton above Middle industry reports say. industrial areas of Dubai and Abu Dhabi.East quotes on a free-on-board basis and GULF NEWS, April 6, 2011 ARABIANOILANDGAS.COM,the cargo is likely to go West. Asian April 7, 2011 New BASFnaphtha prices stayed at a 32-month highon Monday due to high Brent crude polyurethane system Iran’s Petchem exports approachprices, with cracks easing slightly,although the inter-month spread house in Dubairemained firm on strong sentiment. BASF opened its new Polyurethane (PU) 13mtpa REUTERS, April 11, 2011 The Iranian Petrochemical Commercial Solutions System House in Dubai withIran to expand an official ceremony. About 150 guests Company (PCC) said Iran has exported about 12.920 million tonnes ofbitumen capacity from business, government, customers and neighbours alike joined the event at petrochemical and polymer productsIran is expected to add another 700,000- the just recently completed BASF site in worth roughly US$8.6 billion over the1.0m tons/year to its bitumen capacity Dubai Industrial City (DIC), a member of last Iranian year (March 21, 2010-Marchonce the expansion of four refineries is TECOM Investments’ Manufacturing 20, 2011), PANA reported.completed in 2013, M T Fathi, and Logistics Cluster. BASF which has Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 17. Downstream Monitor MENA 13 April 2011, Week 01 page 17 NEWS IN BRIEFLiquefied gases (propane, ethane), Petrochem management wish to integrate regional customers upon plant startup.methanol and heavy cut were among elements of its production with the SIIG ZAWYA, April 11, 2011major Iranian petrochemical products facilities, with a view to a potenitalexported to various countries during the merger in the future. “If SIIG’s board PIPELINESabove mentioned period. Liquefied agrees to proceeding, the process ofPetroleum Gas (LPG) was the main item evaluating such a merger will start, Sonatrach signs gasof petrochemical exports with 2.39 including evaluating the assets of each deal with European firmsmillion tonnes and over 20% of the total company, and proceed on getting thefigure. necessary approvals from authorities andHeavy cut exports increased considerably relevant shareholders,” the company said Algeria’s state-owned energy companyduring the last Iranian year and ranked in a statement published on Saudi stock Sonatrach has signed a contract to supplythe second largest petrochemical exchange “Tadawul”. 8 billion-cubic-metres-per-year of naturalproducts export in terms of weight. The The company said that SIIG’s board is gas through the new Medgaz pipelineproduct’s exports hit 1.9 million tonnes due to meet this month. SIIG already with Spanish and French companies.worth US$1.3 billion during this period. holds 50% of Petrochem shares. Saudi The 20-year contracts with SpanishMethanol export with over 1.7 million Insurance holds 16.2% and General companies Cepsa, Endesa and Iberdrolatonnes worth US$462 million was the Retirement Authority holds 16.2%, the plus GDF Suez of France formalisedthird main item after Liquefied rest of the shares are listed on the preliminary agreements before the finalPetroleum Gas and heavy cuts. The Tadawul. investment decisions on the constructionproducts have been sold in 7,361 ARABIANOILANDGAS.COM, of the pipeline were made in 2006.shipments to 650 Asian, European and April 11, 2011 All of the companies own stakes in theAfrican companies. consortium which built the 1,050-Petrochemical Commercial Company, Sabic-Albemarle JV kilometre (650-mile) pipeline linkingwith 20 years of experience, is the largest selects Samsung for Algeria to Spain at a cost of US$1.3supplier of Iran’s Petrochemical products Jubail Plant billion.to the international markets. It is also one The Medgaz pipeline, the third pipelineof the major Middle-Eastern companies, Saudi Basic Industries Corp., or Sabic, linking North Africa and Europe startedwhich is involved in marketing and sales the Middle East’s largest listed company, operations on April 1. It has a totalof petrochemical products to the said on Monday that its joint venture capacity of 11.4 billion cubic feet perdomestic and overseas markets. with Albemarle Netherlands has selected year. TREND NEWS AGENCY, April 7, Samsung Engineering Co. Ltd. to ARABIANOILANDGAS.COM, 2011 construct an aluminium alkyls April 4, 2011 manufacturing facility in Jubail.Petrochem open to Samsung will provide engineering, Terrorist groupsfacilities integration procurement and construction services carried out gaswith SIIG pipeline explosion for the plant owned by Saudi Organometallic Chemicals Co., orThe board of directors of Saudi Arabia’s SOCC, a joint venture between Sabic Sarvari told Mehr news agency that theNational Petrochemicals Company affiliate Saudi Specialty Chemical Co. ministry of intelligence and the police(Petrochem) have decided to approach and Albemarle, Sabic said in an emailed must beef up security at energythe SIIG board of directors, to propose a statement. pipelines.He said terrorist groups arestudy to merge both Petrochem and The South Korean firm will immediately trying to create insecurity by disruptingSaudi Industrial Investment Group begin the detailed engineering in Seoul the country’s energy transportation(SIIG). During the board meeting, which and is expected to mechanically complete system.took place on April 10, the Petrochem the project in the third quarter of next He added that parliament’s Nationalboard reviewed the progress of its year. The SOCC facility will initially Security and Foreign Policy Commissionpetrochemical project in Jubail industrial manufacture 6,000 tonnes a year of is reviewing pipeline security incity. The complex is set to start operation triethyl aluminum, the key co-catalyst conjunction with oil and intelligenceby the end of this year, and will produce used in polyolefin production. ministries as well as security forces.ethylene, polyolefins and aromatics. Triethyl aluminum is currently supplied Three gas pipelines exploded in QomSIIG has three nearby operational to the region from Albemarle’s facilities province on Friday. A similar explosiondownstream projects in joint venture with in Europe, Asia and North America and occurred in Qom on February 11.Chevron. It has been reported that will be supplied from the SOCC plant to Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 18. Downstream Monitor MENA 13 April 2011, Week 01 page 18 NEWS IN BRIEFAnother Iranian MP, Alireza Salimi, has carrying 80,000 tonnes of crude from owners,” said Arctic Securities.raised the possibility that the two rebel held east Libya entered Egypt’s Average earnings fell earlier this monthexplosions were linked and perhaps Suez Canal heading towards the Red Sea. to their lowest in over five months,carried out by the same group. So far no As per report, the Liberia registered below the operating cost level of aorganization has taken responsibility for tanker Equator left the rebel held east VLCC, which is estimated at aroundthe explosions. Libyan port of Marsa el Hariga. US$10,000 a day. “New cargoes have PAYVAND NEWS, April 10, 2011 Oil traders said that the cargo which only entered the market at a leisurely rebels need to finance their uprising pace and at a tempo firmly controlled byIran pipeline against Muammar Ghaddafi is headed for the charterers,” broker P.F. Bassoe said.explosion China. The cargo is equivalent to around “Owners are struggling to cover 550,000 barrels of oil. operational costs, and it doesn’t look likeA member of the Iranian parliament has The seven week civil war has cut output the market will become much better inblamed Western “enemies” for a blast on from the major supplier by 80% and both the coming weeks. The tonnage list isFriday that hit a major gas pipeline near sides have traded accusations over still long and seems to continue inthe holy city of Qom. The head of the attacks on oilfields. charterers’ favour.”parliament’s national security committee, STEELGURU, April 12, 2011 Cross-Mediterranean Aframax tankerParviz Sorouri told reporters on Sunday rates fell to W91.04 or $792 a day inthat Western-backed “terrorists” were Mideast crude tanker average earnings on Monday from rates fall, bunkeraiming to bring insecurity to Iran’s W91.98 or US$1,592 a day on Fridaynational energy transfer routes. NYT, April 11, 2011 costs bite and W100.00 or US$6,473 a day last Monday and were at their lowest sinceCrescent denies Iran Crude oil tanker earnings on the key January 24. Aframax vessels on the Middle East route fell on Monday asagreement Mediterranean route, which transport the growing vessel availability and slower majority of Libya’s crude oil, normallyThe general manager of the Crescent cargo fixing weighed on rates. Brokers carry up to 600,000 barrels. Last monthPetroleum Company in Tehran denied said higher bunker fuel costs were also Aframax rates jumped to their highestreports about reaching an agreement with eating into earnings. The world’s this year as buyers scrambled to getIran on exporting natural gas to the benchmark Very Large Crude Carrier cargoes from Libya. But a subsequentUnited Arab Emirates. IRNA quoted (VLCC) export route from the Middle drop in activity has added to tankerHamid Zaheri as saying that no new East Gulf (MEG) to Japan DFRT-ME- availability and put pressure on rates.agreement has been reached. The UAE- JAP fell to W54.53 in the Worldscale “Aframaxes could not escape the weakerbased Crescent National Gas Corp. measure of freight rates, or US$7,235 a activity in the Mediterranean,” Paretosigned a MoU with the National Iranian day, from W54.86 or US$8,049 a day on Securities said.Oil Company in 2001 to import natural Friday. Rates for Suezmax tankers on the Blackgas from Iran’s Salman field through a “The high vessel availability in the MEG Sea to Mediterranean route were atpipeline jointly built by Iran and will continue to limit the upside earnings W81.08 from W83.08 on Friday andCrescent. potential for the large crude tankers, W93.85 last Monday. “Suezmax vessel TT, April 12, 2011 following a slow end to last week,” earnings were considerably lower on broker Lorentzen & Stemoco said on Friday with ample vessel supply in theTERMINALS AND Monday. VLCC rates have been volatile Atlantic and Mediterranean,” saidSTORAGE in recent months due to a supply overhang caused in part by the end of a Lorentzen & Stemoco. “With bunker costs reaching 12-month highs, owners trading play, which led to storage ofOil tanker with are making renewed efforts to counteract millions of barrels of crude oil on tankers the increased costs by slow-steamingLibyan crude enters at sea. “While spot rates have more than when possible.Suez Canal doubled over the past week, a quoted rate REUTERS, April 12, 2011 of $8,000/day is not a pretty sight forReuters reported that an oil tanker Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 19. Downstream Monitor MENA 13 April 2011, Week 01 page 19 TENDERS & CONTRACTS PROJECT Qatar Chemical Plant Design Project Sector Downstream Location Middle East, Qatar, Musay’id Area Project Holder/Operator QP – Qatar Petroleum / S tatoilHydro ASA / Total / QVC – Qatar Vinyl Company / Qapco - Qatar Petrochemical Company Scope of work FEED – Front-End Engineering, Design Contracts Current / Past Phase Working contracts had been won Contract Value Estimate Over US$305 million Start up Timing From 2010 Development Stage Operational Project Brief The project is associated with the expansion of EDC / VCM Mesaieed facility Future & Potential Sales EPC – Engineering, Procurement & Construction Contracts Prospects EPCC - Engineering, Procurement, Construction & Commissioning Contracts EPMC – Engineering, Procurement, Construction & Management Contracts EPIC – Engineering, Procurement, Installation & Commissioning Contracts PROJECT Oman Chemical Plant Project Project Sector Downstream Location Middle East, Oman, Al Batinah Area Project Holder/Operator Omzest / Oman Formaldehyde Chemical Co / Manso Group Scope of work EPC – Engineering, Procurement & Construction Contracts Current /Past Phase The project had been on a completion basis Contract V alue Estimate Over US$20 million Start up Timing From 2010 Development Stage Operational Project Brief The project is associated with the development of Oman Formaldehyde Plant Future & Potential Sales FC – Framework Contracts Prospects LSTK – Lump Sum Turnkey Contracts MC - Multi Contracts PMC – Project Management Contracts TC - Term Contracts PROJECT Iran Bulk Polymers Development Project Sector Downstream Location Middle East, Ira n, Lurestan Area Project Holder/Operator Mahabad Petrochemical Co / Bakhtar Petrochemical Co. / NPC – National Petrochemical Co. / Luristan Petrochemical Co. Scope of work EPC – Engineering, Procurement & Construction Contracts Current /Past Phase The project had been on a completion phase Contract Value Estimate Over US$330 million Start up Timing From 2010 Development Stage Operational Project Brief The project is associated with the development of Khorramabad HDPE / LLDPE complex Future & Potent ial Sales FC - Framework Contracts Prospects LSTK - Lump Sum Turnkey Contracts MC - Multi Contracts PMC - Project Management Contracts TC - Term Contracts Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 20. Downstream Monitor MENA 13 April 2011, Week 01 page 20 TENDERS & CONTRACTS PROJECT United Arab Emirates Ammonia Expansion Project Sector Downstream Location Middle East, UAE, Abu Dhabi Area Project Holder/Operator Ruwais Fertiliser Industries. Scope of work EPC – Engineering, Procurement & Construction Contracts Current /Past Phase The project had been on a tendering & bidding phase Contract Value Estimate Over US$1.4 billion Start up Timing From 2010 - 2011 Development Stage Operational Project Brief The project is associated with the expansion of Ruwais fertiliser facilities Future & Pot ential Sales FC - Framework Contracts Prospects LSTK - Lump Sum Turnkey Contracts MC - Multi Contracts PMC - Project Management Contracts TC - Term Contracts PROJ ECT Algeria HDS Construction Project Sector Downstream Location Africa, Algeria, Skikda Area Project Holder/Ope rator Sonatrach Scope of work EPC - Engineering, Procurement & Construction Contracts Curre nt /Past Phase Job contracts had been on the tendering & bidding stag e Contract Value Over US$ 235 million Estimate Start up Tim ing From 2011 Developme nt Stage Operational Project Brief The project is associated with the construction of Skikda gas oil hydro- desulphurisation factory Future & Pote ntial MC - Multi Contracts Sales Prospects O&M - Operations and Maintenance Contracts PMC - Project Management Contracts LSTK - Lump Sum Turnkey Contracts FC - Fra mework Contracts PROJ ECT Egypt Turnkey Project Project Sector Downstream Location Africa, Egypt, Al Iskandariyah Area Project Holder/Ope rator Hyundai Oilbank Co Ltd Scope of work LSTK - Lump Sum Turnkey Contracts Curre nt /Past Phase Projec t had been on a completion stage Contract Value Over US$ 175 million Estimate Start up Tim ing From 2011 Developme nt Stage Operational Project Brief The project is associated with the development of ACI D gas trea tment unit Future & Pote ntial MC - Multi Contracts Sales Prospects O&M - Operations and Maintenance Contracts PMC - Project Management Contracts FC - Fra mework Contracts CC - Co nsultancy Contracts Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 21. Downstream Monitor MENA 13 April 2011, Week 01 page 21 CONFERENCES Copyright © 2011 NewsBase Ltd. www.newsbase.com Edited by Ian Simm All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 22. Downstream Monitor MENA 13 April 2011, Week 01 Back Page NEWSBASE INFORMATION HEADLINES FROM A SELECTION OF NEWSBASE MONITORS THIS WEEK CUSTOMERS INCLUDEOil and Gas SectorAfrOilThe payment of bribes in Nigeria has cost the members ofthe TSKJ consortium US$1.5 billion in penalties.AsianOilPetronas is considering potential joint venture partnersfor its Kepodang gas field offshore Indonesia.ChinaOilChina has raised retail fuel prices for the second time thisyear.EurOilStatoil has made the first commercially viable discovery inthe Arctic waters of the Barents Sea.FSU OGMRosneft may cut investment in Vankorskoye as a result ofthe loss of its export duty exemption.GLNGGolar LNG Partners is to list on the Nasdaq in a bid toraise US$303 millionMEOGOil production from Iraqs Kurdistan region has nowreached 115,000 bpd.NorthAmOilMarathon has agreed to sell a 30% stake in its Niobrarashale to Marubeni for US$270 million.Unconventional OGMBeach Energy has completed the drilling and evaluation ofits Holdfast-1 shale gas well in the Cooper Basin. For further details on the stories above and NewsBase’s entire product range: tel: +44 (0) 131 478 7000 e-mail: news@newsbase.com Copyright © 2011 NewsBase Ltd. www.newsbase.com