Monday, October 14, 2019

Middle East News

Iranian Tanker Hit by Missiles, Oil Rises

© PhotoGranary/AdobeStock

Oil prices jumped more than 2% on Friday, October 11, 2019, after Iranian media said a state-owned oil tanker had been struck by missiles in the Red Sea near Saudi Arabia, raising the prospect of supply disruptions weeks after attacks on Saudi oil plants.The Suezmax crude tanker Sabiti was ablaze and suffered heavy damage after being hit by two missiles, Iranian media reported.Both oil benchmarks recorded their biggest daily rise since Sept.

Europe Looks for Gas as Groningen Folds

Image: Rystad Energy

Europe’s energy landscape will be completely changed once the Dutch shut down the largest gas field on the continent years ahead of schedule, according to Rystad Energy.The Netherland recently announced that production at Groningen – Europe’s largest gas field – will be halted in 2022, eight years earlier than initially planned. However, despite the ambitious target of decommissioning the field by 2022, Rystad Energy expects…

Oil Freight Rates Rocket After U.S. Sanctions COSCO

Asian oil suppliers face high tanker charter rates following new U.S. sanctions against Chinese oil transporter COSCO. (Photo © Adobe Stock / Vladimir)

Oil freight rates in the Middle East and Asia have increased by almost 20 percent today following new US sanctions on units of Chinese company COSCO for its alleged involvement in ferrying crude oil out of Iran.In what the U.S. State Department has described as “one of the largest sanctions actions the U.S. has taken” since restrictions were re-imposed on Iran in November 2018, two units of COSCO, as well as other companies,…

Saudi Attacks, High Demand Leaves U.S. Short on Oil Tankers

© Carabay / Adobe Stock

A disruption in global oil flows following attacks on Saudi Arabian facilities has left U.S. crude exporters without enough tankers to cover rising demand for cargoes, traders and shipping sources said.Missile attacks last Saturday temporarily cut Saudi oil production by more than 5 million barrels per day, or about half the country's output.That set off a scramble for alternative cargoes of crude, particularly in the United States…

Oil Prices Extend Losses After Saudi Pledge

© Kalyakan/ Adobe Stock

Oil prices retreated about 2% on Wednesday, extending the previous day's declines after Saudi Arabia said it would quickly restore full production following last weekend's attacks on its facilities and as U.S. crude stockpiles rose unexpectedly.Tension in the Middle East remained elevated, however, after the Saudi Defence Ministry held a news conference, displaying drone and missile debris it said was "undeniable" evidence of Iranian aggression. U.S.

Middle East Risks Keep Oil Prices High

Oil prices have risen massively following the recent attacks on Saudi oil refining facilities – the US has responded by authorizing the release, if necessary, of emergency crude oil stocks to ease price pressures. (Photo © Adobe Stock / Douglas Knight)

Oil lost some of its big price rises today as the US announced the possible release of crude reserves but the possibility of military action in response to the drone attacks on Saudi oil facilities still means prices are high and that stocks are under pressure. Equity market losses have not been large but investors are continuing to support ‘safer’ assets such as gold, for which treasury prices are rising.Brent crude prices fell 1.78% to $67.79 per barrel in Asia today (Tuesday…

Oil Soars 10%

© viking75 / Adobe Stock

Oil futures jumped 10% on Monday after an attack on Saudi Arabian crude oil processing facilities over the weekend sliced the kingdom's production in half and threatened to hamper shipments from the world's largest crude exporter.Prices initially surged more than 20% after the open on Sunday evening, with Brent crude posting its biggest intraday gain since the 1990-1991 Gulf crisis, before pulling back as various nations have…

Natural Gas to be 29% of World’s Energy Supply by 2050

Image: DNV GL

The global oil demand will peak in the mid-2020s and gas demand will keep rising to 2033, says DNV GL.Gas demand will then plateau, and the fuel will remain dominant until the end of the forecast period in 2050, when it will account for over 29% of the world’s energy supply, it said.Significant investment will be required to ensure production meets demand, including realising the potential from stranded gas reserves and for reserve replacement.

Xodus Hires Rivers

Stephen Rivers (Photo: Xodus Group)

Energy consultancy Xodus Group said it has appointed Stephen Rivers as Subsea & Pipelines Manager for Asia-Pacific as the company targets strategic growth and new projects in the region. He will be based in in Perth, Australia.Rivers’ previous roles have included Engineering Director for Peritus International Pty Ltd and Senior Vice President for INTECSEA for Australia and New Zealand.With more than 30 years' in the oil and gas industry…

Russia: Saudi Oil C-Suite Changes Won't Impact Cooperation

Saudi Arabian oil industry: under new management.

(Photo: © Adobe Photo Stock / Phattana)

Changes in the management of its oil ministry by Saudi Arabia will not impact cooperation between Russia and the Middle East kingdom, Russian Energy Minister Alexander Novak stated today, adding that he plans to meet his Saudi counterpart Khalid al-Falih in the near future and ahead of a planned visit by Russian President Vladimir Putin to the country.Saudi Arabia has named Yasir al-Rumayyan, head of the its sovereign wealth fund, the PIF, chairman of Saudi Aramco, replacing Falih.

L&T Consortium Wins Saudi Aramco Deal

Image: L&T Hydrocarbon Engineering Limited

Indian multinational conglomerate Larsen & Toubro Limited (L&T) announced that a consortium of its arm L&T Hydrocarbon Engineering Limited (LTHE),  and EMAS AMC PTE Ltd (A Subsea7 Company)  has been awarded a project by Saudi Aramco for offshore jackets.The project is for installing 28 offshore jackets in Zuluf, Marjan, Safaniya and Ribyan offshore fields of Saudi Arabia, as per a stock exchange filing by L&T.This project consists of twenty eight offshore jackets in ZULUF…

Gulf Marine CEO Quits in wake of Profit Warning

A Gulf Marine Services Jack Up unit (CREDIT: GMS)

Gulf Marine Services said on Wednesday Chief Executive Officer Duncan Anderson has resigned as the oilfield industry contractor warned a reassessment of its ships and contracts showed profit would fall this year, kicking its shares 12% down.The Abu Dhabi-based offshore services specialist said a review by new finance chief Stephen Kersley of its large E-class vessels operating in Northwest Europe and the Middle East pointed to 2019 core earnings of between $45 million and $48 million…

Brent Oil Prices Rise Above $60

© freddytb Foto / Adobe Stock

Brent crude oil futures rose above $60 a barrel on Wednesday after industry data showed a larger-than-expected drop in U.S. crude inventories, but lingering worries about a possible global recession capped gains.Brent crude had gained 26 cents, or 0.43%, to $60.29 a barrel by 0900 GMT, after settling 0.5% higher on Tuesday, while U.S. crude was up 3 cents, or 0.05%, at $56.16 a barrel.U.S. crude oil stocks fell by 3.5 million barrels in the week to Aug.

ME Gas Output to Exceed Russia

Graph: Rystad Energy

The Middle East is cruising into the second half of 2019 with spectacular gas production, and is expected to surpass powerhouse Russia by the end of the year.According to Rystad Energy, the Middle Eastern region will produce over 730 billion cubic meters of gas by 2020, increasing to about 920 billion cubic meters by 2030.Nevertheless, international markets may not feel the full effect as demand in the region is also expected to see rapid growth.

Gazprom Lead Oil and Gas Growth Worldwide

Graph: Rystad Energy

Russian giant Gazprom saw the most production growth among world’s exploration and production (E&P) companies during the five-year span from 2014 through 2018.It’s followed by Chinese player PetroChina Company Limited and U.S. shale company EQT Corporation ranking second and third, respectively, said energy research firm Rystad Energy.Onshore resources – whether conventional or unconventional – are a major driver of growth, it said.“Gazprom…

US Reduces Upstream Activity Abroad

Graph: Rystad Energy

Rystad Energy data reveals that from 2014 to 2018, companies in Asia which experienced a merger and acquisition showed the most significant growth globally, increasing oil and gas production by about 1.4 million boepd by investing heavily in Asia, Russia and the Middle East.In North America however, the trend is quite the opposite, said the energy research and business intelligence company.North American companies which underwent M&A activity reduced their production over the same period by approximately 1.3 million boepd…

U.S. LPG Exports Grow by 22%: Dorian LPG

Pic courtesy: Dorian LPG Ltd.

U.S. liquefied petroleum gas (LPG) exports have grown year-over-year by 22% to 22.5 million tons year-to-date (YTD) and Middle East exports have grown on the same basis 3.5% to 22.6 million tons, said Dorian LPG.For the first time, U.S. and Middle East volumes were equal, said the owner and operator of modern very large gas carriers (VLGCs)."Our expectation is that the U.S. exports will grow faster than those from the Middle East. U.S.

NSER Wins $600mln Contracts in S. Arabia

Photo: National Energy Services Reunited

National Energy Services Reunited (NESR), a provider of integrated energy services in the Middle East and North Africa (MENA) and Asia Pacific regions, has been awarded contracts worth US$660 million by Saudi Aramco for coiled tubing, stimulation and cementing services for a five year period.The contract is with the National Petroleum Technology Company, a subsidiary of NESR, for coiled tubing and N2, stimulation services and cementing services for a period of five years with possible extensions of up to two years.Mohammed Y.

Vallianz, Calm Oceans Build Offshore Mobile Platform

Image: Vallianz Holdings Limited

Singapore-based offshore service provider Vallianz Holdings has entered into a strategic partnership with the offshore oil and gas company Calm Oceans to construct the first Mono-Column Platform-Lite (MCP-Lite).The providers of offshore support vessels to the oil and gas industry in the Middle East said that the construction is expected to complete in 9 months.A brainchild of Brian Chang,  the founder of Calm Oceans, the Mono…

KBR Wins Aramco Offshore Contract

Image: Saudi Aramco

American engineering company KBR, Inc., announced that it has been awarded a project management contract by Saudi Aramco to provide project management services for Saudi Aramco's offshore program.KBR will provide project management and engineering services for existing and new offshore facilities to maintain and increase crude production levels to meet Saudi Aramco's maximum sustained capability for production under the company's capital program under the terms of this six-year contract.KBR's Saudi joint venture company…