UAE Opts To Develop Sour Gas Reserves Amid Uncertainty Over Qatari Supplies

The natural gas shortage in the Middle East has again cast its shadow over the ongoing crises in the Arabian Gulf region. While the region as a whole controls more than 40% of global gas reserves, its countries, with the exception of Algeria and Qatar, face a critical lack of supply.

The combined gas reserves in the Gulf Cooperation Council (GCC) total about 1,500 Tcf, but much of it is associated gas and expensive to extract.

Because it is dependent on the Dolphin gas pipeline that links it to Qatar, the UAE has relatively limited immediate options to replace the 2 Bcf/d of gas it imports if Qatar decides to cut off exports to that country. That is considered unlikely to happen.

The UAE also has an LNG import terminal in Dubai with a capacity of 3 mpta and plans to build another terminal in Fujairah with a capacity of 9 mtpa. The country also faces a deficit of 2 Bcf/d during the peak summer season. It is estimated the UAE will need another 5 Bcf/d for extra power capacity by 2019.

The UAE is having difficulty producing enough gas to meet domestic requirements, though it holds about 5% of the world’s proven reserves. Much of it is sulfur-laced sour gas, which is expensive to produce. Sour gas is highly corrosive, and generally more challenging to process because of its high sulfur content, which requires special handling and infrastructure.

The UAE has already identified this issue and tapped the development of its sour gas fields, one of the most challenging types of fields, which are mainly located in Abu Dhabi. The sour gas prospect is estimated by analysts to contain about 5 Tcf of gas and forecast to produce 1 Bcf/d, which would equate to about 18% of the UAE’s current demand.

“Tapping into undeveloped gas reservoirs is part of ADNOC’s focused strategy to drive a more sustainable and economic gas supply,” the director of upstream activities at ADNOC, Abdul Munim al-Kindy told local media.

Production costs of deep and mildly sour gas projects in the Gulf are between $5 per million Btu (MMbut) and $6/MMbtu, but domestic sales prices range from  75 cents to $2, with negligible prices for household, according to local analysts.

Amid the soaring local gas consumption, the UAE decided to develop its sour gas reserves and had already started up production from Shah gas field. For Shah, selecting the right foreign partner wasn’t easy and included many setbacks. Initially, ADNOC selected ConocoPhillips Co. (NYSE: COP) as a partner to develop the project, but in April 2010, ConocoPhillips withdrew from the $10 billion development saying that it intended to shift its operational focus from midstream and downstream activities to upstream work.

But in January 2011, ADONC selected Occidental Petroleum Corp. (NYSE: OXY) as a partner, and set up Al Hosn Gas, a joint venture between ADNOC and Oxy. The project was successfully started up in early 2016. Shah produces a total of 1 billion cubic feet per day (Bcf/d), of which 500 million cubic feet per day (MMcf/d) is delivered to the UAE’s gas grid, as well as producing 33,000 bbl/d of petroleum condensates and 4.4 mtpa of natural gas liquids. Already, Al Hosn has laid out plans to increase output by 50%.

Meanwhile, Bab gas field, another sour gas field, witnessed setbacks as Shell announced in early 2016 that it has pulled out of the $10 billion Bab sour gas project in Abu Dhabi, citing “technical challenges” and the falling price of oil as key factors in its decision. But despite the setbacks, ADNOC is determined to boost its gas output.

In early June, local media reports said that the company is considering greenlighting another huge gas project which could meet nearly 20% of the UAE’s gas demand by the end of the decade. The state oil company’s investment committee is considering proposals for a $20 billion development of the Hail and Ghasha, Delma, Nasr and Shuwaihat “ultra-sour” gasfields, which lie in relatively shallow water southwest of Abu Dhabi.

Source: http://www.epmag.com

Telecoms operator du confirms beIN Sports network suspended in the UAE

Dubai-based telecoms operator du has confirmed that it has suspended transmission of the Qatar-owned beIN Sports network across its cable television services after customers took to social media on Monday evening to complain about an interruption in the service.

“We would like to confirm that the service of beIN Sports are currently suspended. Our customer service teams will be in touch with all the affected customers,” du said in a statement.

The company did not clarify whether the suspension of service is in relation to the ongoing Qatar crisis, in which the UAE, Saudi Arabia, Bahrain, Egypt, Yemen, Libya and the Maldives have cut ties with the GCC member over claims that the country supports terrorist organisations.

Customers who attempt to access beIN Sports channels via their du cable box receive a blue screen stating “This channel is currently unavailable”.

Etisalat customers report receiving the same notice, however the UAE state-owned telecoms firm has yet to release an official statement regarding the matter.

The beIN Sports website has also subsequently been blocked by both the telecoms operators in the UAE.

Part of the larger Al Jazeera network of channels, beIN Sports holds the exclusive broadcasting rights to a number of major international sporting tournaments including the UEFA Champions League, English Premier League, La Liga, Formula 1 Grand Prix and the NBA, amongst others.

The UAE has also blocked the Al Jazeera TV channel and website, while Saudi Arabia has also revoked the media group’s licence in the kingdom.

Source: http://gulfbusiness.com

One map shows how much trouble Qatar Airways may be in

As Bahrain, Saudi Arabia, and the United Arab Emirates sever diplomatic relations with Qatar, the nations have also closed their airspace to its neighbour.

Unfortunately for Qatar Airways, the lack of access to Bahrainian, Emirati, and Saudi airspace could have a devastating effect on its operations.

 "Losing Saudi, Bahrain and UAE airspace would effectively ground Qatar Airways," CAPA -- Center for Aviation wrote in a report.

That's because Qatar actually has very little airspace relative to the size of the country.

"It is largely surrounded by Bahrain airspace (the Bahrain FIR), a slither on the south is managed by Saudi Arabia while the UAE is on the eastern border," CAPA stated.

While losing access to Saudi airspace will force Qatar Airways into the costly manoeuvre of rerouting its Africa-bound flights, losing access to Bahrainian airspace could be catastrophic because it almost completely encircles Qatar.

That means, should the ban hold up, Qatar Airways flights will need to fly through airspace that it is currently banned from in order to reach its home base in Doha.

Qatar Airways did not immediately respond to a request for comment on how they plan to overcome this challenge.

While the countries are free to refuse landing rights, it is unclear if Bahrain and the UAE can legally ban Qatar Airways from its airspace. As signatories to the International Air Services Transit Agreement, Bahrain the UAE can't legally shut off its airspace to fellow signatory Qatar.

Saudi Arabia, however, is not an IASTA member country and can legally shut Qatar Airways out of its airspace.

According to Flightradar24, Bahrain sent notified pilots that it will limit flights to and from Qatar by Qatari aircraft through its airspace to a single air route. This means, even if Qatar Airways isn't grounded, it will be subject to heavy air traffic congestion.

Over the past two decades, Qatar Airways has grown to become one of the most influential international airlines in the world. In 2015, consumer aviation website Skytrax named it the best airline in the world.

Source: www.msn.com

Eni signs up for Oman offshore hunt

Italian major Eni has acquired rights over the only maritime block offered during the Oman’s latest licensing round, launched late last year. The move comes as a considerable fillip to Muscat’s long-standing efforts to find and develop offshore oil and gas reserves.

The allocation was made in the context of a broader co-operation agreement with state-owned Oman Oil Co. (OOC). It coheres with the broader strategy of enlisting the assistance of IOCs to partner the parastatal’s upstream arm in developing undeveloped acreage across the sultanate.

The block is the only one of four offered during the bid round to have been allocated thus far – presumed to reflect a continued bearishness in the industry rendering investment in Oman’s challenging and dispersed fields relatively unattractive.

The memorandum of understanding (MoU) signed in Milan by OOC CEO Isam al-Zadjali and his Eni counterpart, Claudio Descalzi, called for the two parties to “to explore co-operation opportunities in the oil and gas sector”. It granted the Italian firm, in partnership with OOC subsidiary Oman Oil Company for Exploration & Production (OOCEP), exploration rights in Block 52 – with neither the size of the respective shareholdings nor the precise nature of the licence agreement revealed.

The block covers a 90,760-square km area off the sultanate’s southeast coast and was described in information released by the Ministry of Oil & Gas (MOG) when launching the latest licensing round in October as being primarily an oil target.

As in the rest of Oman’s offshore territory, the area has a long history of unsuccessful exploration. Ireland’s Circle Oil relinquished the licence in 2015 as part of a wider withdrawal from the country in response to the global industry downturn. Previous work had been carried out by the US’ Sun Oil, Amoco – subsequently acquired by BP – and Petroleum Development Oman (PDO).

The last of these – the government-led joint venture with Royal Dutch Shell that is the sultanate’s largest oil and gas producer – drilled the only well in the block in 1991.

Circle said it had found good leads but was unable to attract partners to share the undeniable risk. Meanwhile, the MOG made a case in the bid round documentation for prospective bidders to renew the exploration efforts. It said that the southern and “potentially attractive deeper water” areas were only recently added to the block, while the northern portion had undergone various shape changes, causing it to pass between concession operators.

A wider strategy was enacted by Muscat in the four-block auction of providing more comprehensive information than in past rounds on the acreage on offer. This reflected the fact that all had recently been relinquished by the latest in lines of operators as well as the diminished risk appetite of IOCs under prevailing market conditions.

However, with Block 52 the first to be awarded – more than two months after a decision had been due – and under unique and unusual terms, the approach appears thus far to have proved unsuccessful.

Block 52 was a particularly challenging prospect, with more than a century of exploration off the mainland coast having yet to yield production. However, the MOG’s pitch rested heavily on the renewed hopes raised by the first commercial discovery in the area in 2014 by Masirah Oil, a subsidiary of Singapore’s Rex International, in the adjacent Block 50 to the north.

A second well completed last year was said to have confirmed the presence of a working petroleum system and plans for early production were only abandoned in the wake of the oil price slump shortly after the first strike.

The other concessions awaiting award from the bid round are the 15,438-square km Block 49 in the Rub’ al-Khali Basin along the border with Saudi Arabia – also exited by Circle in 2015 – and the contiguous Blocks 30 and 31 in the north-west. These were both operated previously by Norway’s DNO and are said by the ministry to be predominantly tight gas plays.

All were scheduled to have been allocated by the end of the first quarter. In January OOCEP revealed that it had submitted a joint bid for Block 30 with the US’ Occidental Petroleum (Oxy) – the sultanate’s largest existing independent foreign producer and operator of two adjacent concessions – making the lack of an agreement particularly puzzling.

Al-Zadjali earlier in the year laid out a local expansion strategy for OOCEP calling for partnership with leading IOCs to boost reserves and production from the sultanate’s diverse and complex fields. In April, he signed a heads of agreement (HoA) with Shell for exploration in the 25,600-square km Block 42 in the north-east.

Harnessing Eni’s technical prowess in offshore exploration – demonstrated in the Middle East with the discovery of Egypt’s giant Zohr gas field two years ago – for the Italian company’s first investment in the country was a particular coup.

Descalzi explained the move in the context of a “strategy aimed at diversifying our exploration portfolio across basins with liquid hydrocarbon potential while keeping high-quality stakes throughout the exploration phase”.

In November, the Italian firm signed an agreement with the Bahraini government’s National Oil & Gas Authority (NOGA) to “study and assess the potential of some exploration and production assets in the country” and granted access to existing data on onshore and offshore fields.

Manama has likewise long harboured unfulfilled ambitions to find and develop offshore reserves as its sole onshore oilfield experiences long-term decline.

Source: www.oilpro.com

Rosneft expands in Iraq's Kurdistan with exploration, pipeline deals

St. Petersburg (Reuters)—Russian oil major Rosneft has agreed to explore and develop five fields in Iraq's Kurdistan as the company seeks to become a key player in one of the world's newest and fastest-growing oil provinces.

Kremlin-controlled Rosneft this year became the first oil major to pre-finance Kurdish crude exports, an activity long dominated by trading houses, which bankrolled the semi-autonomous region amid its fight against Islamic State and a budget crisis caused by low oil prices.

On Friday, Rosneft and the Kurdistan government signed production-sharing deals for five oil blocks, with Rosneft saying it would also aim to explore for gas in the future.

Igor Sechin, Rosneft chief executive and a close ally of Russian President Vladimir Putin, said the company was widening cooperation with Kurdistan following the first direct purchases of Kurdish oil for Rosneft's German refineries earlier this year.

Increased feedstock access. "The agreements...set an example of well-weighed investments in one of the key Middle East regions, which will make it possible for the company to expand its exploration and production geography, provide feedstock for Rosneft's growing refining network and raise profitability of our international assets," Mr. Sechin said.

Iraq has long opposed Kurdish independent oil sales, but has lately eased its stance amid joint efforts by the regional government and Baghdad to defeat Islamic State.

Rosneft and Kurdistan also said they had agreed on the "monetization of the export oil pipeline in Kurdistan," with Rosneft getting access to the regional transportation system, which has throughput capacity of 700 Mbpd.

By the end of 2017, Kurdistan plans to expand the pipeline to 1 MMbpd, or 1% of global output, betting on the arrival of new volumes from fresh developments.

Kurdish oil production has been mainly led in recent years by mid-sized firms, including Genel. Larger companies such as ExxonMobil and Chevron are still in the exploratory stage and have recently returned some blocks to Kurdistan after disappointing searches.

Rosneft said the deals signed would allow it to talk about "full entry in one of the most promising regions of the developing global energy market.” Kurdistan estimates its recoverable reserves at 45 Bbbl of oil and 5.66 Tm3 of gas.

Source: www.oilpro.com

UAE is the second safest country in the world

The UAE has been ranked the second safest country in the world by the World Economic Forum (WEF), up one position from 2016.

WEF has profiled 136 countries for safety and security and the UAE fell right behind Finland and also won the highest spot in the Gulf region.

The UAE also holds the title for the third best air transfer infrastructures in the world, in both connectivity and the quality of its services. It has recorded a surge in visitors in the past two years, welcoming 14.4 million international visitors in 2015, four million more than 2013 and 2014. Dubai alone reached a staggering 14.9 million tourists in 2016.

Dubai is now the fourth most visited city in the world and tourists spend more in the emirate compared to any other destination. Dubai’s Department of Tourism and Commerce Marketing revealed that at this rate, Dubai could be achieving its goal of 20 million visitors by 2020.  Even Abu Dhabi is showing signs of competitiveness as it is now the third fastest-growing city in the world and tops in the Middle East with a 19.8 growth rate.

The UAE has always been well known for making its residents and tourists feel safe at any time of the day. A recent report by the RTA uncovered possessions found in its ‘lost and found’ by Dubai taxis. The most precious items were a handbag with $20,000 inside and up to 44kg of gold in two separate occasions. The items were all returned to their rightful owners.

Popular holiday destinations such as the United Kingdom and the United States took some of the lowest rankings for safety, coming in at 78th and 84th.

Other countries in the Middle East that rounded up the top 10 for safety and security included Oman, which came in fourth, and Qatar, which filled in the 10th spot.

Source: www.propertyfinder.ae

Icebergs to be towed from Antarctica to the Middle East

Brrr, it’s about to get cold here in the UAE. Yes, we’re very aware that summer is knocking on our doors but we’re still going to brrr. Why, you say? Well, because the UAE is being the UAE again.

The United Arab Emirates is currently planning to tow icebergs from Antarctica to its coast to solve its issues with drinking water. Our country is among the top 10 water-scarce countries in the world, and yet has one of the highest water consumption rates across the globe.

To meet the rising demand, the National Advisor Bureau announced the plans and sees the opportunity to move an iceberg, which on average contains 20 billion gallons of fresh water, as the perfect way of pumping more fresh water into the region.

Abdullah Mohammad Sulaiman Al Shehi, managing director of National Advisor Bureau Limited, has also said: “The icebergs would mainly be towed to be used as fresh drinking water but would also be good for tourism.”

Source:www.msn.com

W-Motors Lykan Hypersport, the Middle East’s take on the supercar

Over the years, we’ve seen many iterations of the world’s most expensive vehicle and motor companies are always trying to out-do one another. While the likes of Ferrari, Lamborghini, Bugatti and Mclaren have been fighting it out for years, some newer companies have joined the fray recently. Some succeeded, such as Hennessey, but most others never made it to production. However one stands out from the rest.

Headquartered in Dubai, UAE, W Motors have created the Lykan Hypersport which is the first Middle Eastern Supercar. It’s coincidentally one of the world’s most expensive retailing cars at a whopping 3.4 million U.S Dollars (approx.12.4 million AED) and has been receiving a lot of attention after appearing in films like Fast & Furious 7 and video games like Driveclub and Project Cars.

The Lykan Hypersport is currently the third most expensive car in the world. Ahead of it is the Lamborghini Veneno of which four were built and three were sold for 4.6 million U.S Dollars (approx. 16.8 million AED) as well as the one-of-a-kind Maybach Exelero which cost 8 million U.S Dollars (approx. 29.8 million AED. Originally a test mule for tyres but was eventually sold to a customer.

Why so expensive? The headlights may look like standard adaptive xenon and LED headlights on the W Motors Lykan, but with a closer look you’ll find that they have titanium plates which are encrusted with 420 diamonds! If diamonds aren’t your thing, you can choose from a variety of other precious stones such as rubies, emeralds or sapphires. The entire body of the car is made from carbon composite to reduce the weight of the car. Inside it gets better, LED ambient lighting with a carbon fiber finished centre console with all the standard features such as navigation and Bluetooth connectivity, which are displayed on a 9″ holographic mid-air display with gesture recognition. The dashboard instrument panel is fully digital and shows all relevant information such as speed, what gear the car is in and the revs as well as other information such as efficiency and engine performance.

When it comes to the seats and dashboard, they’re completely customisable. For the seats there’s a choice between Alcantara or leather in any colour with single or double stitching with gold wire, that are placed in a carbon fibre mold to keep the driver and passengers body and neck stable at high speeds.

Why so expensive? The headlights may look like standard adaptive xenon and LED headlights on the W Motors Lykan, but with a closer look you’ll find that they have titanium plates which are encrusted with 420 diamonds! If diamonds aren’t your thing, you can choose from a variety of other precious stones such as rubies, emeralds or sapphires. The entire body of the car is made from carbon composite to reduce the weight of the car. Inside it gets better, LED ambient lighting with a carbon fiber finished centre console with all the standard features such as navigation and Bluetooth connectivity, which are displayed on a 9″ holographic mid-air display with gesture recognition. The dashboard instrument panel is fully digital and shows all relevant information such as speed, what gear the car is in and the revs as well as other information such as efficiency and engine performance.

When it comes to the seats and dashboard, they’re completely customisable. For the seats there’s a choice between Alcantara or leather in any colour with single or double stitching with gold wire, that are placed in a carbon fibre mold to keep the driver and passengers body and neck stable at high speeds.

Only 7 W Motors Lykan’s will be built, one W Motors Lykan is for sale in Dubai, which is number 1 of 7. Even the Abu Dhabi Police has recently acquired one into its police force. Although there may not be any space to put the bad guys in the back, it’s sure to turn a head or two or at least stop some speed demons and reckless drivers.

Source: www.dubicars.com

Iraq moving forward with gas processing plant construction

Iraqi oil minister Jabar al-Luaibi announced a plan for the oil rich country to begin construction on three natural gas processing plants. Natural gas in the country is currently being flared at southern oil fields due to the lack of facilities needed to capture and process it into usable fuel.

This plan will hopefully increase the nation's income from energy exports while also adding resources aiding in power generation nation wide. Luaibi touched on some of the challenges in an emailed statement, "the ministry is seeking to end the flaring of associated gas in the next few years, despite the economic and financial challenges."

Once the plants are up and running, Iraq's natural gas output will potentially triple to 1,700 million cubic feet per day by 2018.

As OPEC's second largest crude producer, Iraq is hoping to add to its oil and gas income that already accounts for almost all of its public budget.

After crude dropped in 2014, Iraq has struggled to pay its bills. Also in 2014, the Islamic State seized close to a third of Iraqi territory.

Source:www.oilpro.com

Iran struggles to expand oil exports as sea storage cleared

Iran has sold all the oil it had stored for years at sea and Tehran is now struggling to keep exports growing as it grapples with production constraints, shipping and oil sources say.

Since the easing of international sanctions in January 2016, Iran tried to make up for lost sales by releasing millions of barrels parked on tankers offshore.

Tanker tracking and oil sources said Iran had sold its last stocks from the floating storage in the past two weeks. Much of the oil stored was condensate, a very light grade of crude.

With no more stocks at sea, Iran has lost a vital resource that had propped up exports.

"We do think that (floating storage) has been the primary cause of the boost in exports," Energy Aspects analyst Richard Mallinson said, adding that now floating storage had ended total exports of crude and condensate were likely to slip.

"We see a very difficult path for Iran to raise crude output until it can get the Western expertise and investment back into the upstream, which has been notably slow to materialize," he added.

After Western sanctions were eased, Iran's output jumped from about 2.9 million barrels per day (bpd) to about 3.6 million bpd in June.

But it has barely risen since - fluctuating between 3.6 million and 3.7 million bpd - even though Iran fought hard with fellow OPEC members to be excluded from production cuts that came into effect on Jan. 1 and will last till June.

The Organization of the Petroleum Exporting Countries pledged to reduce output by about 1.2 million bpd, but Iran was allowed a small increase to compensate for years of isolation. Yet it has produced less in the past three months than it was allowed.

Iranian Oil Minister Bijan Zanganeh said last month Tehran was prepared to produce 3.8 million bpd if OPEC agreed to extend cuts to the second half of 2016, effectively signaling there was little hope of a steep rise in Iranian output.

Prior to the lifting of sanctions, Iran stored unsold oil on ships, which peaked in 2015 at 40 million barrels on around 25 tankers. The country has up to 60 oil tankers in its fleet.

Iran's drawdown of floating storage gathered pace in September. By the start of 2017, Iran still held an estimated 16 million barrels of oil on ships. Since then, they have emptied.

While the EU and United Nations lifted sanctions on Iran over its nuclear program more than a year ago, the United States has held separate measures in place and President Donald Trump's administration has promised a tough line.

This has increased concerns among Western banks about offering finance to Iran, slowing energy investment decisions.

French oil company Total said in February it planned a final investment decision on a $2 billion gas project in Iran by the summer, but said this hinged on a renewal of U.S. sanctions waivers.

"The uncertainty over the U.S. position on further sanctions is casting a huge shadow on the oil trade with Iran," said Paddy Rodgers, chief executive of tanker company Euronav.

In addition, the oil minister's efforts to secure deals with Western firms has run into internal opposition in Iran, which holds the world's fourth biggest oil reserves. The plans have now been postponed until after a May presidential election.

"Iran needs billions of dollars of investment to boost crude oil production and natural gas capacity," said Mehdi Varzi, a former official at state-run National Iranian Oil Company and now an independent consultant.

"Most of the fields were discovered many decades ago and are way beyond their production capacity," he said.

Source: www.oilpro.com

Theresa May takes stand against Saudi regime by not wearing headscarf - ignoring Foreign Office advice

Theresa May has taken a stand against Saudi Arabia's ultra-conservative regime by not wearing a headscarf - going against official Foreign Office advice.

The Prime Minister, in a dark blue trouser suit, made sure she had her wrists and ankles covered, in accordance with strict dress codes for women in Saudi Arabia.

But her choice of outfit as she arrived on Tuesday afternoon was contrary to Foreign Office guidelines, which state: “Women should wear conservative, loose-fitting clothes as well as a full length cloak (abaya) and a headscarf.”

Mrs May won widespread praise on Twitter, with users saying they were “proud you have not bowed down” to the regime, and that “secular women are equal and free”.

Britain’s only other female Prime Minister, Margaret Thatcher, wore a long robe and a hat that covered most of her hair when she made an official visit to Saudi Arabia.

Members of the Royal family also abide by the Foreign Office’s advice when they visit the strict Muslim kingdom.

There is, however, no law requiring foreign visitors to cover their heads, and Mrs May is by no means the first visiting foreign VIP to go bare-headed.

Michelle Obama left her head uncovered when she visited Saudi Arabia with President Barack Obama in 2015 to pay respects following King Abdullah’s death.

Condoleezza Rice, the former US Secretary of State, also went bare-headed on the same trip.

Before she arrived in Saudi Arabia, Mrs May had said she hoped her visit would show “what women can achieve”.

Source: http://www.telegraph.co.uk

UAE police uses fake cutout car to stop over-speeding

The UAE police have devised an innovative idea to prevent motorists from speeding on highways.

To deter the motorists from going over the speed limit, the police has put up a full-size cutout of a patrol car on one of the highways, complete with flashing lights.

Videos uploaded on Facebook show the car in a red and white colour scheme, with the number 999 painted on the side.The cutout, 'parked' on the side of the highway, is supported by a black metal frame.

The maximum speed limit on a UAE highway is 120km/hr, on the Sheikh Mohammed bin Zayed Road, but motorists usually touch 140km/hr and above between radars.

Countries such as US, Australia and New Zealand are known to use cutouts of policemen at traffic junctions and public places to keep people from flouting rules, but a cutout car is surely a first.

Source: www.msn.com

Iran leapfrogs Iraq as India's no. 2 oil supplier in February

India's oil imports from Iran rose nearly 17 percent in February from a month earlier as refiners received less crude from key OPEC producers Saudi Arabia and Iraq after an OPEC deal to cut output, shipping data showed on Monday.

The jump meant Iran replaced regional rival Iraq as India's second-biggest oil supplier - a role Tehran used to occupy before Western sanctions were imposed against it over the country's disputed nuclear program.

While Saudi Arabia remained the biggest oil supplier to India, ship tracking data and a report compiled by Thomson Reuters Oil Research and Forecasts showed imports from Iran rose to 647,000 barrels per day (bpd) in February. That was 16.7 percent more than January, and almost trebled from February 2016.

The Organization of the Petroleum Exporting Countries (OPEC) pledged to curb production by about 1.2 million bpd from Jan. 1, the first cut in eight years, in a move designed to boost prices and drain a supply glut. Iran, Libya and Nigeria were, however, granted exemptions from the deal.

In the first 11 months of this fiscal year, between April and February, India imported about 542,400 bpd from Iran, compared to about 225,522 bpd for the same period a year ago. Average oil volumes supplied by Iran over this period were the highest on record.

In the first two months of 2017, India's oil imports from Iran averaged 598,400 bpd compared to about 192,500 bpd a year ago, the data showed.

Indian refiners including Reliance Industries Ltd, operator of the world's biggest refinery complex at Jamnagar, have returned as buyers of Iranian oil after having stopped imports from Iran during the sanctions period.

Meanwhile, India's February oil imports from Saudi Arabia and Iraq were nearly a third lower than the same month a year ago.

Nigerian oil supplies in February stood at 527,400 bpd, the data showed, a jump of 94 percent from the previous month. That meant the African nation emerged as the fourth-biggest oil supplier to India, displacing Venezuela.

The latter, witnessing a decline in production, is cutting supplies to India as it is fulfilling obligations under oil for loan deals with China and Russia.

Source: http://oilpro.com

Are Emirates and Etihad Merging?

The UAE is home to two of the world's most successful airlines, based just 70km from each other. 

Emirates, based in Dubai and Etihad in Abu Dhabi, specialize in long haul flights to almost every destination on Earth. However, due to their close proximity, along with external factors such as energy prices and the emergence of budget airlines, it seems as the two giants may become one.

It has been reported internationally that the possibility of a merger between the UAE's two major airlines is being discussed. Handelsblatt, a European Business Daily news has reported that the ruling families have met to discuss a merger. Falling profits, along with a changing industry with an uncertain future are cited as the reasons behind the discussions, although neither Etihad or Emirates have confirmed the reports.

This week, the CEO of Emirates Tim Clark, hinted at a 'gathering storm' in the premium airline industry. H e discussed the major factors facing airlines like Emirates, such as competition from low-cost airlines who are now offering both international routes and long haul flights at competitive rates. He also spoke about political issues such as President Trump's recent travel ban, which saw a 25% decrease in sales for the carrier.

This is not the first time rumours of a merger have been discussed. The financial crisis of 2008 had many discussing the possibility of a merger, which time discredited . While there is no concrete news as yet, it is clear that times are tough for the airline industry, and a merger is definitely a possibility.

Do you think they'll merge?

Source: www.msn.com

Iraq & Iran Signs MOU for Joint Cooperation

Mr. Jabbar A. Allibi the minister of oil signed a memorandum of understanding with his Iranian counterpart Mr. Beigin Zangana to establish joint committees to finish some of the important cases.

Such as: the case of the joint fields between the two countries in order to invest these fields perfectly, the committee of studying the capability of extending the Iraqi crude oil pipeline from Kirkuk through the Iranian lands, and the committee of studying the transportation of the Iraqi oil from Basra to Abadan.

The memorandum stated also to continue the cooperation in the sector of supplying the power stations with the Iranian gas, inviting the Iranian companies to invest in the oil & gas sector, and rehabilitating the infrastructure of the oil & gas facilities in addition to the petrochemicals factory in Basra.

Iran shown its readiness to grant scholarships to the Iraqi students in the oil specializations.

Mr. Allibi "after the end of discussions" said that they was positive and fruitful because the two sides was keen to activate the horizons of cooperation between the two countries to serve the joint benefits. In addition to the coordination of the attitudes in OPEC to achieve the demanded balance in the global oil market in order to support the prices.

Mr. Zangana said that the two sides held an extended meeting to discuss the common concern issues which are related with the development of the oil & gas industry and the border oil fields, as well as the implementation of many strategic important projects to strengthen the opportunities of cooperation between the two countries. He also was comfortable for the elevation of the oil prices in the global market after the resolution of OPEC to cut the production.

It is worthy to mention that the Iranian minister Mr. Beigin Zangana visited Baghdad for one day with a high class delegation. And was received by Mr. Allibi the minister of oil and many responsible members from the ministry of oil.

Source: http://www.gulfoilandgas.com

Saudi Arabia Bulks Up in Asia to Boost Appeal Before Oil IPO

Saudi Arabian Oil Co. expanded its ownership of refineries and petrochemical plants in Indonesia and Malaysia with investments totaling $13 billion as it prepares for what may be the biggest ever initial public offering by bulking up its business in Asia, its largest market.

The Middle Eastern oil giant, known as Saudi Aramco, signed a $6 billion agreement Wednesday with Indonesia’s PT Pertamina for refinery projects. A separate $7 billion deal with Malaysia’s state-owned Petroliam Nasional Bhd. to develop an oil refinery and naphtha cracker in the southeast Asian country and provide up to 70 percent of the crude requirements, was sealed Tuesday.

“This will strengthen the equity story for Saudi Aramco,” Khalid Al Falih, the kingdom’s energy minister, said in Kuala Lumpur on Tuesday. “Investors will be looking for a company that has breadth in its portfolio.”

The deals are part of Saudi Aramco’s long-standing strategy of investing in refining to help lock in demand for its crude, as it has done in markets including the U.S., Japan and South Korea. The company is battling for global market share amid challenges posed by U.S. shale oil producers, Russia and even fellow members of the Organization of Petroleum Exporting Countries.

Cilacap Refinery

“Saudi Arabia, as OPEC’s largest producer and exporter, wants to secure outlets in the world’s most dynamic and fastest growing energy market,” said John Driscoll, the chief strategist at JTD Energy Services Pte, who has spent more than 30 years in the petroleum trading industry in Singapore. “A $7 billion deal positions the kingdom as Malaysia’s largest single investor and provides the basis for future partnerships and collaboration.”

Indonesia’s Foreign Minister Retno Marsudi commented on the refinery deal in Bogor, West Java on Wednesday, and didn’t immediately offer details. In December PT Pertamina said it formed a joint venture with Saudi Aramco and planned to boost its Cilacap refinery capacity 15 percent to 400,000 barrels a day.

Saudi Aramco’s investment in the Malaysia’s $27 billion development, known as Refinery and Petrochemicals Integrated Development, or RAPID, in Pengerang is a boost to the project that borders the traditional Asian oil trading and refining center of Singapore, and was announced in 2011 and originally scheduled to come online last year.

King’s Visit

RAPID will include a 300,000 barrel-a-day refinery, scheduled to start in 2019, which can produce fuels that meet Euro 5 emissions standards and provide feedstock for a connected 3.5 million tons-a-year petrochemical plant, according to a joint statement from both companies.

The deal significantly reduces the financial burden on Petronas and will allow it to allocate capital to other businesses such as liquefied natural gas and petrochemicals, according to a Feb. 28 note from BMI Research. The agreement also helps lock-in future demand for Saudi crudes, according to the note.

“Malaysia offers tremendous growth opportunities and today’s agreement further strengthens Saudi Aramco’s position as the leading supplier of petroleum feedstock to Malaysia and Southeast Asia,” Saudi Aramco President Amin Nasser said in the statement.

The deal coincides with a visit to Asia by Saudi Arabia’s King Salman bin Abdulaziz, who is leading an entourage to strengthen ties with the region. Malaysian and Saudi Arabian companies signed memorandums of understanding worth a total 9.74 billion ringgit ($2.19 billion) in areas including construction, aerospace, halal, and hajj-related industries, according to a statement from Malaysia’s trade ministry.

Source: www.oilpro.com

A look at Ailuromania Cafe – the UAE’s first cat café

Society’s fascination with furry felines has reached a fever pitch, amplified by daily online viral videos, fanciful Twitter feeds and celebrity kitties including the film star Grumpy Cat and Karl Lagerfeld’s Choupette, who has her own Instagram account.

But while the UAE has a steady stream of stray cats to adopt and an obsessive national love of coffee, the country has been so far left out of the latest trend, which combines the love of animals with cafe culture. That is all about to change in Dubai, where Saudi-born sisters Iman and Allaa Ahmed Al Aulaqi are opening Ailuromania Cafe – the UAE’s first cat cafe – at the end of the month.

In the meantime, Iman is introducing a few of her core team members, ET (sphynx), Mocha (Siamese), Snow, Mo and Jumbo (Persians), to their new home in Jumeirah, where she hopes to attract the kind of fanatical devotion found in cat cafes in other locations, including Paris, Portland, San Diego, New York and Yokohama, Japan.

"I’ve only chosen cats that are sociable, ones that will adapt to the surroundings easily," says Iman, 23, as she lifts the green-eyed sphynx that is wearing a snugly pink sweater. The cat struggles free from her embrace and leaps onto a fully wrapped couch in the still-unfurnished cafe.

"We call him ET because he looks like the character from the movie," says Iman. "Sphynx tend to feel very cold, so she wears a sweater. And she loves to snuggle around the neck to keep warm. She is like a parrot."

The young entrepreneur, who recently graduated from American University in Dubai, has five cats of her own and has fostered more than 12 in the past two years.

Last year, when she was contemplating a start-up, a friend sent her images of a cat cafe in Korea and that struck her as the perfect match for her career goals.

"I’m just combining my obsession with cats with my desire to be a businesswoman," says the finance graduate. "It’s what I’ve always wanted to do."

Iman began following and researching similar cafes around the world and flew to the United Kingdom to check out Lady Dinah’s Cat Emporium, the first cat cafe in London, which had a two-month waiting list when it opened in March.

"I wasn’t allowed in because it was only on a booking basis. I pleaded but it didn’t help. I waited outside for 30 minutes, watching the cats from the window. I was so disappointed."

She hopes for similar enthusiasm from residents here. At Ailuromania Cafe, the menu will take a back seat as regulars will be queuing up to play with the 12 rescue cats.

"I think it’ll be a hit with residents who adore cats but can’t keep one because of family members who are allergic or disapprove, or people who live in small apartments. This is where they’ll come to fulfil that want."

The story of each cat will be posted in the cafe alongside their portrait.

Iman shares the story of Bob, a 7-year-old Himalayan. "We found him wandering around in Barsha and [he] had a severely infected eye," she says. "So I took him to a vet and called the owners, but they said they couldn’t take him back.

"Bob isn’t much of a player, but he loves people and will enjoy being petted."

The sisters had to jump through a lot of hoops to make their dream business a reality, especially with the health and safety department.

"We won’t be preparing the food at the cafe because of health and safety regulations," says Iman. "So our cold drinks, snacks, sandwiches, pasta and desserts will be prepared by suppliers and transported and stocked fresh in the cafe every morning. We will, of course, brew the coffee at the venue."

Source: www.thenational.ae