International Petroleum Investment Company announced record profits during 2007

The board of directors of International Petroleum Investment Company, IPIC, today announced record profits during 2007 reached $1.2 billions (AED4.4 billions) posting a growth of 48% over the year 2006 profits.

The Abu Dhabi-owned company also approved plans for a new refinery project in Pakistan with a capacity of 250000 barrels per day. The refinery is the company's second largest project after the $5-billion Parco Refinery (or Pak -Arab Refinery) in Pakistan.

Parco will have a capacity to refine 102.7 million barrels of crude oil per annum. IPIC will hold 74 percent while the Pakistan government will own 26 percent stake in the project.

IPIC which is responsible for all foreign investments in the oil and chemicals sector said it is considering the awarding of the Project Management Consultancy (PMC) services contract for the new refinery.

IPIC's board made the announcements at a meeting chaired by H.H Sheikh Mansour bin Zayed Al Nahyan, Chairman of the board and Minister of Presidential Affairs.

IPIC also approved Al-Jarf Al-Asfar refining project in Morocco and work in underway to establish a company with competent Moroccan authorities.
/WAM/

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Adnoc's unit eyes 1m bpd output by 2019

Abu Dhabi National Oil Co.'s offshore unit will raise output by two-thirds to 1 million barrels a day by 2019, said Ali Al Jarwan, general manager of the state-owned company known as Adnoc.
Abu Dhabi Marine Operating Co., in which Total SA, BP Plc and Inpex Corp. subsidiary Japan Oil Development Co. are shareholders, will raise output by 50 per cent within the next few years,'' Al Jarwan said in an interview in the latest issue of the company's Adnoc News magazine.

Adnoc plans to double gas production to supply the domestic network, Al Jarwan said, without saying what current output is.

The United Arab Emirates produced 2.56 million barrels a day of oil in February according to Bloomberg data. (Bloomberg)

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Dana Gas to drill 19 wells in Egypt in 2008

Dana Gas, the largest private-sector natural gas company in the Middle East, announced Sunday an exploration and development program, which involve the drilling of 19 new wells in Egypt in 2008. Dana Gas has earmarked a sum of $170 million for the 19 new wells, which include 15 exploration wells and four development wells, according to a statement by the company.

The wells are located at the Komombo Concession in Upper Egypt and two concessions in the Nile Delta.

“This is a defining year for the upstream operation in Egypt, and this exploration and development program could potentially double the size of our reserves, and would provide further boost to Dana Gas production and revenues in Egypt,” Hany Elsharkawi, director of the company’s Egyptian unit, was quoted as saying.

Dana Gas is currently the sixth largest natural gas producer in Egypt among the 64 companies operating in the country.

In 2007, Dana Gas made a number of new gas and oil discoveries in Egypt, including Southern Egypt’s first commercial oil discovery from its first exploration well drilled in the Komombo Concession.

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Taqa in negotiations with Shell UK, Esso Exploration

The Abu Dhabi National Energy Company (Taqa), confirmed yesterday that it has, through its wholly-owned subsidiary Taqa Bratani Limited, entered into exclusive negotiations with Shell U.K. Limited (Shell) and Esso Exploration and Production (UK) Ltd (ExxonMobil) for the purchase of their equity interests in the Tern, Eider, Cormorant North, South Cormorant fields and related sub-sea satellite fields and infrastructure, situated in the Northern North Sea.

This arrangement does not constitute a purchase agreement at this stage and any purchase by Taqa will be subject to satisfactory completion of due diligence and the negotiation of a sale and purchase agreement with the sellers, Shell and Esso.

In relation to yesterday's announcement, Taqa have signed Heads of Agreement that, subject to proceeding with the agreement and to regulatory approval, Taqa is appointing Wood Group Engineering (North Sea) Ltd (Wood Group) as the initial duty holder providing full integrated services. The intention is for Taqa to become duty holder in due course with Wood Group continuing to provide integrated services. Source

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Occidental Petroleum signs deal with Abu Dhabi

Occidental Petroleum Corp. has signed an agreement with Abu Dhabi's International Petroleum Investment Co. to work together on hydrocarbon-related investments, the company said Monday.

The companies will jointly evaluate and participate in "development of upstream and downstream projects both within and outside the Middle East Region," the company said in a release. Each company retains the discretion to determine whether or not it will participate in any particular project, according to a release.

International Petroleum Investment Co. is wholly owned by the Government of the Emirate of Abu Dhabi and invests in the hydrocarbon sector outside the Emirate of Abu Dhabi.

Los Angeles-based Occidental (NYSE: OXY) is an international oil and gas exploration and production company. Source

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ADNOC announces oil prices for March 2008

The Abu Dhabi National Oil Company (ADNOC) has announced the prices of its crude oil for March 2008.

According to the new prices, Murban has been pegged at US$95.10 per barrel, Lower Zakum at US$95.15, Umm Sheif at US$94.30, and Upper Zakum at US$90.75 per a barrel. (WAM)

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The Origin of Oil and its Future - a new study by Center for Information Affairs

The Center for Information Affairs has published a new study entitled, 'The Origin of Oil and Its Future'.

Published in Arabic and English, the book consists of the proceedings of the symposium held under the same title. It explains the different theories about the origin of oil, including both the arguments put forward by the proponents of the 'organic origin of oil' theory to support their views, and the evidence given by the opponents of this theory, the believers in the 'inorganic origin' theory, and the impacts of all this on oil future.

It also sheds light on the oil strategy of H.H. President Sheikh Khalifa Bin Zayed Al Nahyan, and the great care given by him to harness oil wealth for achieving comprehensive development that responds to the national aspirations. It alludes to the statements of the HH President, who affirmed that the underpinnings of this strategy lie in developing this resource, so as to achieve the maximum possible benefit from the proved reserves.

The volume of production should be sufficient to promote the programmes of development and its requirements in the United Arab Emirates, says the book, adding that the national and humanitarian obligations of the State should be fulfilled.

Maintaining stockpiles and prolonging the use of this wealth in the United Arab Emirates is a priority, the book said. It also deals with gas policy in the UAE and the development of its sources, in order to extensively use it for the local needs related to power generation and water desalination. (WAM)

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Abu Dhabi hosts 9th Mideast Refining Conference

Senior executives from all sectors of the refining industry from the Middle East and the rest of the world convened in Abu Dhabi on Monday for the 9th Annual Middle East Refining Conference.

For the second year running, the 2008 Conference is being hosted by the Abu Dhabi Oil Refining Co. (TAKREER) in conjunction with the World Refining Association (WRA).
With reliable access to abundant feedstocks and an envious geographical location, the Middle East refining sector is a growing market with an increasing number of opportunities for investors and technology suppliers alike, who are looking to become involved and grow their business within the region, according to the WRA.

Organisers have designed the 2008 agenda to keep the refinery community up to date with the latest developments impacting the Middle East refining sector.

Executive speakers will address strategic expansion plans, ongoing policy developments to upgrade, integrate, modernise and expand refining facilities, enabling them to remain competitive whereas at the same time meeting international standards, especially when it comes to carbon emissions and climate change.

Professionals will give update on the current position and outlook for the Middle East Refining industry. Focus to include: UAE, Saudi Arabia, Oman, Kuwait, Egypt, Bahrain, India and Asia They will review of newly announced mega projects, ongoing challenges and a status update of ongoing projects.

A look at new technologies and process innovations for the Middle East Refining industry will also figure high on the agenda.

Case study examples will highlight the use of new technologies and their successes. (WAM)

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Abu Dhabi to build new refinery with 417000 bpd capacity

A new oil refinery will be built in the emirate of Abu Dhabi to further boost the emirate's refining capacity, said Jasem Ali Sayegh, general manager of Abu Dhabi Oil Refining Company (TAKREER).

The planned capacity of the new refinery is 417000 bpd and will be completed by 2013, added Sayegh who was speaking at the 2-day Middle East Refining Conference 9th Annual Meeting which started today in Abu Dhabi.

The new refinery is still in the design phase and will be located in Ruwais, some 240 kilometers from Abu Dhabi City, will increase Abu Dhabi's current installed refining capacity which stands at around 485000 bpd.

The current Ruwais refinery produces around 400000 bpd, while the capacity of Abu Dhabi Refinery in Um Al Nar stands at around 85000 bpd.

An inter-refinery pipeline will be constructed between the two refineries to eliminate the need for shipments as well as to connect Ruwais and Abu Dhabi.

Abu Dhabi's refining capabilities are run by TAKREER which took the responsibility of refining operations from Abu Dhabi National Oil Company (ADNOC).

The new project, Sayegh noted, is driven by demand and the need to meet stringent product quality requirements and environmental legislations. (WAM)

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ADNOC announces LNG shutdown

State-owned Abu Dhabi National Oil Company (ADNOC) will shut one of its three liquefied natural gas facilities for one month to 40 days of routine maintenance work in November, an ADNOC official said on Tuesday.

"Every year we shut one of the trains for maintenance. This year it will be in November," said Hasan al-Mazrooqi, deputy general manager of ADGAS, which is ADNOC's LNG arm.

ADNOC's three gas trains at its Das Island facility exports 5.5 million tonnes of LNG per year. Around 85 percent of it goes to Tokyo Electric Power (TEPCO) in Japan.
Mazrooqi said the processing facility that would shut down produces about a quarter of ADGAS's LNG.

LNG is gas chilled to liquid form for ease of transport. (Reuters)

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Mubadala and PSN to establish PSN Emirates in Abu Dhabi

Mubadala Development Co. and Production Services Network (PSN) signed a joint-venture agreement to establish a new company in Abu Dhabi called PSN Emirates.

PSN Emirates will provide operations and maintenance contracting services to the upstream and downstream oil and gas industry. It will also provide services to onshore and offshore brown-field production facilities including engineering, procurement, construction, front end engineering design, project management, turnaround engineering management, and start-up management.

"The operating model of PSN Emirates is new to Abu Dhabi and the Gulf Cooperative Council region," said Waleed Al Mokarrab Al Muhairi, COO of Mubadala. "This approach, which has been successful in North America and the North Sea, brings a bold new chapter for the region's oil and gas industry."

PSN Emirates will be officially launched upon completion of formal establishment requirements. Source

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IPIC posts AED2.5b net profits in 06

The International Petroleum Investment Company (IPIC) posted $ 699 million (AED 2.5 billion) net profits in 2006. The company's profits during 2007 are projected to reach $ 800 million (AED 2.9 billion).
This came during the meeting of the company's Board of Directors, held today under the chairmanship of Sheikh Mansour bin Zayed Al Nahyan, minister of presidential affairs.

Sheikh Mansour expressed gratitude to the unlimited support given to the company by His Highness Sheikh Khalifa bin Zayed Al Nahyan, UAE President & Chairman of the Abu Dhabi's Supreme Petroleum Council, and by General Sheikh Mohammed bin Zayed Al Nahyan, crown prince of Abu Dhabi, deputy supreme commander of the UAE Armed Forces & Deputy Chairman of the SPC.

The board members expressed their satisfaction over the company's performance, thanks to the support of its Chairman Sheikh Mansour bin Zayed Al Nahyan.

Sheikh Mansour was also thanked for approving designs of the company's headquarters in Abu Dhabi. Work on the 35-storey complex will start later this year. It is scheduled for completion in 2010.

The meeting also reviewed progress of IPIC's ongoing projects, including the Habshan-Fujairah 360-kilometer crude export pipeline. Once completed, the pipeline will be used to transport 1.5 million barrels per day of crude oil from Abu Dhabi to the Fujairah for export.

Recently, IPIC awarded contracts worth $460 million to Sumitomo Corporation of Japan, Salzgitter Mannesmann International of Germany and Jindal Group of India to supply pipes for the project.

The first delivery of the pipe, which will have a 48-inch diameter, is expected in July 2008.

The board also discussed the company's projects to build a 250,000 bpd oil refinery in Pakistan and a 200,000 bpd refinery in Morocco.

Also discussed was the company's planned acquisition of stakes in international companies operating in power, oil services and oil exploration fields.

Since its establishment in 1984, IPIC's portfolio has witnessed a tremendous growth to reach $12.4 billion (AED 40 billion). It has investments in Asia, Middle East and Europe.

The company has interests in a number of refineries around the world with a total refining capacity of more than 2 million bpd and 400,000 of derivatives. It also has petrochemical plants with a total annual output of 4.5 million tons, plus 14,000 fuel stations all over the world. (WAM)

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ADMA-OPCO celebrates 45th Anniversary of 1st Shipment of Crude Oil from Abu Dhabi

The Abu Dhabi Marine Operating Company (ADMA-OPCO) celebrated the 45th Anniversary of the 1st Shipment of Crude Oil from Abu Dhabi Emirate, at a VIP gala event on Wednesday (February 6, 2008), at the Emirates Palace, in the presence of His Excellency Yousef Omair Bin Yousef, Secretary General of the Supreme Petroleum Council and ADNOC CEO.

A number of dignitaries, ADNOC Group senior managements, industry executives, and media representatives also attended the event which crowned ADMA-OPCO's celebrations of the shipment of crude produced from Umm Shaif Field and exported from Das Island, on July 4th 1962.

ADMA-OPCO General Manager Ali Rashid Al-Jarwan paid tribute to the country?s leadership, the Supreme Petroleum Council, Shareholders and all those who contributed to the progress of the Company over the years.

He said that the shipment ushered in a new era of development in Abu Dhabi and the UAE at large.

"On the other hand, the cargo marked the successful start of ADMA as a key player in the oil and gas industry that continued to grow year after year,"' Al-Jarwan said.

The event featured a colourful programme including a dazzling laser show, a folklore performance, poetry and music. A film documenting ADMA-OPCO?s success stories since its inception was screened. A photo exhibition displaying in brief the development stages of Abu Dhabi and ADMA-OPCO was also organized.

During the event, ADNOC CEO presented corporate shields to former General Managers of ADMA-OPCO, Dr. Alan Horan and Andre Duran De Bousingen, in recognition of their years of dedicated service to the Company. (WAM)

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QE Petro Holding plans to build new oil refineries

Abu-Dhabi based Quality Energy Petro Holding is planning to build a 500,000 barrels-per-day refinery in the United Arab Emirates and another smaller plant in Russia, the company's chief executive said on Wednesday.

The UAE refinery has an estimated price tag of $12.8 billion, QE's Chief Executive Adil al-Otaiba said. Plans were at a preliminary stage, he added.

The decision to proceed with both the UAE and Russian plants would depend on securing a guaranteed supplier of crude locked into a 15-year contract, he added.

"The whole thing is a very, very early stage," he told Reuters, talking of the UAE refinery.

"The main issue is the supply of crude. If we can't find a way of doing it, then of course it will be cancelled."

QE was proposing that the Russian government undertake a crude swap with Iran to feed the plant in the UAE with Iranian crude, Otaiba said.

"That would be a better supply arrangement as it would be a government-to-government deal," he added. If Iranian crude were used as a feedstock, QE would look at building a pipeline from southern Iran to the UAE, he added. (Reuters)

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