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S02 ORME 7 2016 Oil and Gas News_Layout 1 26/10/2016 10:47 Page 8

News

Libya resumes output from Waha oilfield LIBYA HAS RESUMED production from the Waha oil field bringing the country’s total production to 580,000 barrels per day (bpd), according to a senior Libyan oil official. The Waha field, operated by the Waha Oil Co, is one of the main contributors of the major Es Sider export grade. It is the first Es Sider field to resume production and was producing 50,000 bpd. Oil output from the field is currently being redirected to the Ras Lanuf export terminal rather than the usual Es Exports resumed from the Ras Lanuf port in September and exports Sider port due to of the Es Sider grade are expected to be resumed this month. limited storage. Output from the field, which was (Photo: zhengzaishuru/Shutterstock) around 330,000 bpd before the war in 2011, was reduced due to damage to infrastructure. The Es Sider port currently has only its storage capacity of 1.2mn barrels compared to 5mn barrels before the war. Therefore, as output increases, the Es Sider grade storage is now divided between Ras Lanuf and Es Sider.

Iran to launch oil and gas fields tender in November IRAN IS PREPARED to launch its first new style tender to develop oil and gas fields since the lifting of international sanctions in November, a leading oil official said. After months of internal discussions over the terms, the new tender is intended to be more attractive to foreign companies. This move comes as a part of the country’s attempts to revive its energy sector following the lifting of the sanctions in January after years of under investment. National Iranian Oil Company (NIOC) managing director Ali Kardor said at an oil conference in Tehran that Iran expects to tender new oil and gas contracts, known as IPCs, in November.

Gas leak delays start-up of Qatar’s Barzan gas project QATAR HAS DELAYED the start-up of its Barzan Gas project because of a leak discovered in a gas pipeline, Reuters has reported. The Barzan Gas project is a RasGas-operated joint venture between Qatar Petroleum and Exxon Mobil. The US$10bn project is designed to meet rising domestic energy demand in the country as it prepares to host the FIFA World Cup in 2022. The first phase of the project was due to start in November and boost the country’s gas production by up to 2bcf per day when it reached capacity in the first half of 2017. However, the discovery of a leak in recent weeks has delayed the commencement of the project, according to sources. “There was a gas leakage in one of the project's upstream pipelines, the impact of which is still being assessed,” a Doha-based source familiar with the project told Reuters. “A start-up this year is unlikely.” The source declined to comment on the size of the leak or whether it had been fixed.

Qatargas, Petronas ink LNG supply deal

Iran hopes that its new tender will attract more foreign investments. (Photo: Aunging/Shutterstock)

QATARGAS, THE WORLD'S largest LNG producer, has signed a fiveyear sales and purchase agreement with the UK unit of Petronas LNG, the national oil and gas company of Malaysia. According to the agreement, Qatargas will deliver 1.1mn tonnes of LNG annually to Petronas until the end of 2023. The agreement extends a current five-year contract that was due to expire on 31 December 2018. The new deal is strategically important with Europe in the face of a The LNG will be supplied from Qatargas 4, a joint venture between looming global glut of gas supplies. (Photo: corlaffra/Shutterstock) Qatar Petroleum and Shell and will be delivered to Dragon LNG terminal at Milford Haven in the United Kingdom. Qatargas chairman Saad Sherida Al-Kaabi said, “This extension will enhance Qatar’s leading position in the LNG market and will further reinforce Qatargas’ commitment to meeting the needs of its customers of this clean energy source.” Qatargas is looking to the UK and the Netherlands in an effort to weather an impending global gas glut through expanding import deals into Europe's most liquid markets, Reuters reported.

He noted that oil companies will be able to bid for a contract to develop the South Azadegan oil field as early as 19 November and NIOC will award the contract by early 2017. After South Azadegan, NIOC will start tendering one field month by month, Kardor said. There are a total of 11 oil and gas fields available for tendering, he said. NIOC signed the first oil output contract under IPC earlier this month. The national oil company has begun taking applications for its upstream oil and gas projects, aiming to sign exploration and production contracts early next year. The oil companies can upload prequalification documents on to NIOC's website, following which the NIOC will evaluate and select companies for the first tender in November within two weeks.

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Oil Review Middle East 7 2016