UAE NEWS

The China-brokered Saudi-Iran rapprochement is a major diplomatic breakthrough after years of mutual animosity, suspected attacks and espionage between the two countries. It represents Beijing’s first foray into Middle East mediation, an area that for the past few decades was largely occupied by Washington.

If the United Arab Emirates (UAE) left OPEC, it would not mean a lot for global oil markets immediately, according to Matthew Bey, a senior global analyst at RANE.

ADNOC Drilling Company PJSC announced its financial results for the fourth quarter and full year ending December 31, 2022. ADNOC Drilling’s revenue for the year increased to $2.67 billion, up a robust 18% compared to 2021. Year-on-year revenue growth was led by the Onshore and Oilfield Services (OFS) segments, while all segments achieved positive year-on-year performance as the company enables ADNOC’s accelerated production capacity target of 5 MMbpd by 2027.

The United Arab Emirates said it will call on its fellow OPEC+ members to boost oil output faster, a dramatic U-turn that could set the country against fellow members of the alliance led by Saudi Arabia and Russia.

LONDON (Bloomberg) --The United Arab Emirates said oil prices would be even higher today if it wasn’t for OPEC+, signaling the group will continue resisting U.S. pressure to pump faster. “Fortunately, we have OPEC+,” UAE Energy Minister Suhail Al-Mazrouei said Monday at the Africa Oil Week conference in Dubai. The 23-nation alliance of major crude exporters has prevented “us from having double or triple the prices and that’s something we need to appreciate.

Oil demand has already increased to 95 million barrels per day (BPD), and the market is rebalancing, according to the chief executive of the Abu Dhabi National Oil Company (ADNOC), Sultan Ahmed Al Jaber. However, the organization raised its outlook for oil demand for both the third and fourth quarters of 2021 by 150,000 BPD and 290,000 BPD, respectively. Third-quarter demand is expected to average 97.90 million BPD, and fourth-quarter demand is set to further rise to 99.74 million BPD, OPEC’s latest report said.

Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of the ADNOC said low carbon oil will play a central role in the energy transition.ADNOC is delivering on this mission as it reduces its carbon intensity by a further 25% over the next 10 years, H.E. Dr Al Jaber said, adding that the company is exploring the potential of new fuels such as Hydrogen, which shows great promise as a close to zero-carbon fuel.

Weir Oil & Gas Dubai has signed a three-year agreement with a national oil company in the UAE. The contract secures the provision of Weir Oil & Gas Rotating Equipment services, machine shop services, emergency manufacturing and site works. This agreement could position Weir as a key provider for the client and allow Weir to expand its portfolio in the specific oil field.

Lamprell zoomed 55% to 18p on Wednesday afternoon on the back of a new contract award by Sharjah National Oil Corporation valued between US$6-50mln. The oil services firm will undertake engineering, procurement, installation and commissioning contract associated with the Mahani gas and condensate field in the UAE. Scheduled for completion in early 2021, Lamprell's scope of work is specific to the Mahani Extended Well Test project.

Abu Dhabi yesterday informed about selling $7 billion worth of bonds in the third major sale this month, aimed at countering declining oil prices. The transaction contained three tranches: a $2 billion five-year tranche, a $2 billion 10-year segment, and the third tranche of $3 billion aging after 30 years. Recently, Saudi Arabia raised $7 billion in a bond sale, while Qatar sold-out $10 billion worth of bonds.

UAE state-run ADNOC has canceled two contracts awarded to the oilfield service provider, Petrofac valued at $1.5bn. The contract awarded only two months ago required Petrofac to carry out work on the Dalma Gas Development project offshore Abu Dhabi. The development operated and 60% owned by ADNOC, where Eni, Wintershall and OMV are partners.

Oilfield services provider, Petrofac yesterday informed about securing two contracts worth ~$1.65 billion from state-run ADNOC for the Dalma gas development project in the UAE. The first package of the contract, priced at $1.07 billion, pertains to developing gas processing facilities at Arzanah island. The second tranche is estimated to be worth $591 million. The contract award comes as the UAE looks to achieve gas self-sufficiency.

UAE-based oil rigs manufacturer Lamprell has secured a contract from International Maritime Industries (IMI) for the delivery of two jack-up drilling rigs. The two Keppel LeTourneau jack-up drilling rigs will be designed on the basis of the Super 116E. IMI said that the firm will collaborate with Lamprell to construct the two rigs. Lamprell estimates the share from the project to gross at approximately $350m.

National Petroleum Construction Company and Petrofac JV have been awarded a contract with Al Yasat Petroleum. The JV will provide FEED services for the Belbazem Block Development Project in UAE. Under the work scope of the contract, the companies will have to submit a FEED package and an EPCI proposal for the facilities. Further, the CEO of NPCC is looking forward to the successful delivery of its share of work.

After Yemen's Iran-aligned Houthi militia claimed responsibility for the attacks on Saudi oil pumping stations, Saudi's Deputy Defence Minister has slammed Iran. On Thursday, he accused Iran of arranging this attack. Prince Khalid Bin Salman tweeted that this "proves that these militias are merely a tool that Iran's regime uses to implement its expansionist agenda". However, UAE has not taken any names yet, for the incident is still under investigation.

The foreign ministry of UAE informed about the "sabotage operations" on four commercial vessels. The attack occurred near the UAE emirate of Fujairah but did not cause any casualties. Fujairah is one of the largest bunkering hubs situated outside the Strait of Hormuz. Bahrain has described this incident as "a dangerous criminal act". According to the sources, the operations ran smoothly at Fujairah on Sunday.

The London-based investment firm, Twelve Seas Investment Co. has entered into a $1 billion agreement to acquire UAE-based oil storage and services business, Brooge Petroleum & Gas Investment Co. (BGPIC). The acquisition is expected to conclude by the end of the second quarter or early in the third quarter. BGPIC will still be led by its current management team with headquarters in Fujairah.

State-run, ADNOC is looking to expand business activities outside UAE. The oil major aims at drilling outside the UAE, apart from a 40% ramp up in drilling of local conventional resources by 2025. Oilfield services giant, BHGE, which owns 5% stakes in ADNOC Drilling, will assist the company in carrying out local drilling operations. ADNOC Drilling recently concluded the first “fully integrated drilling services” well in the Al Dabbyia field.