Page 14 - MEOG Week 34 2021

MEOG NEWS IN BRIEF MEOG

Asia crude cargoes. 2008. During this phase, 9 new tankers of is about 49.8 million dinars and the cost of
Some industry players have raised different sizes and types joined the fleet with building a liquefied gas tanker is about 23
concerns about a potential conflict of interest a total tonnage of 1.1 million metric tons. million dinars. The lowest cost of building
as ATC is wholly-owned by Saudi Aramco The second phase was from 2008 to 2012, tanker to transport petroleum products is 5
and the Platts Dubai crude market structure during which 6 new tankers of different sizes million dinars and the maximum is 22 million
is used by the world’s top oil exporter to set and types with a total tonnage of 1.4 million dinars, depending on the size and capacity.
monthly prices for millions of barrels of Saudi metric tons joined the fleet; the third phase ARAB NEWS
crude sold in Asia. was from 2011 to 2014 and 9 new tankers
Others think sellers should share the of different sizes and types were built with
platform with buyers. a total tonnage of 1.5 million metric tons; SERVICES
“I believe it is a balance. Buyers are always while fourth phase of the fleet modernisation
in MOC and it’s time for a seller to be (in involved the addition of 8 new multi-purpose ADNOC signs $1bn
MOC too),” an industry source said. tankers and sizes to the tanker fleet from
Platts and Saudi Aramco did not March 2019 and the deliveries continued until framework agreements
immediately respond to a request for May 2021, including the Al-Siddiq tanker
comment. dedicated to transport crude oil and was The Abu Dhabi National Oil Company
ATC handles crude procurement and sales built by the Chinese Bohai Heavy Industries (ADNOC) announced today, the signing
of oil products from joint-venture refineries Company. of framework agreements for Concept and
in Asia and does third-party trading. The The modernisation of the Kuwaiti oil Front-End Engineering Design (FEED)
company is already participating in the MOC tanker fleet is in line with Kuwait’s strategy to services for major projects across its full
processes for oil products trading in Asia. maintain a high-level modern fleet to meet value chain to support the delivery of its 2030
Trading activities on the Asia MOC the requirements of the Kuwait Petroleum strategy.
platform for Middle East crude picked up Corporation (KPC) as a strategic cover for the The framework agreements – which were
this month with TotalEnergies and Gunvor state. signed with eight top-tier global engineering
purchasing nine cargoes so far. KOTC interacts with various parties contractors – have a combined scope worth
REUTERS from shipyards and sellers to classification up to $1 billion (AED 3.67 billion) and
companies and consultants, the fleet’s new the potential for 50% of the value to flow
KOTC fleet grows in construction projects team works to study the back into the United Arab Emirates’ (UAE)
economy under ADNOC’s In-Country
market, trends and new technologies in the
importance shipbuilding industry. Value (ICV) program, over the agreement
term between 2021 and 2026. The scope of
KPC views the Kuwait Oil Tanker
The Kuwait Oil Tankers Company (KOTC) Company as a strategic cover for transporting the agreements is based on the forecasted
has spent about 400 million dinars (about Kuwaiti crude oil, Kuwaiti petroleum products requirement for external project engineering
$1.3 billion) from 2000 to 2021 to develop the and liquefied gas in case of emergency services across the ADNOC Group.
Kuwaiti tanker fleet, reports Al- Anba daily and crises outside the region (the Strait of The nature of the agreements underpins
quoting oil sources. The company currently Hormuz, after meeting local needs, including ADNOC’s smart approach to procurement
owns a fleet of 32 giant crude oil tankers to the needs of the Ministry of Electricity and which is enabling it to drive value and
transport oil derivatives and liquefied gas. Water). commerciality across its portfolio. By
The sources said the modernisation of the In the event of emergencies and crises, a structuring the framework agreements with
tanker fleet has undergone several stages (four situation that causes tanker owners to refuse a group of top-tier contractors instead of
stages to be precise) to modernise and develop to enter the Arabian Gulf region as a result of procuring smaller individual agreements,
the fleet starting from 2004 until the middle the exposure of Kuwait and its neighbouring ADNOC was able to secure pre-agreed terms
of this year, in accordance with the needs of countries in the Gulf region to direct or and conditions thereby reducing tendering
the global marketing sector at the Kuwait indirect danger the KOTC fleet become the cycle by months, achieve highly competitive
Petroleum Corporation. only alternative to transporting Kuwaiti rates by leveraging long-term contracts that
The sources added, the first phase of exports outside the region. service its entire portfolio, and establish a
modernisation of the fleet was from 2004 to The cost of building one crude oil tanker group-wide performance management and

P14 www. NEWSBASE .com Week 34 25•August•2021