Page 7 - MEOG Week 39 2022

MEOG PIPELINES & TRANSPO MEOG

RWE signs documents with

ADNOC on LNG supplies

UAE GERMANY’S RWE revealed on September 25 signed a memorandum of understanding (MoU)
that it had signed documents with Abu Dhabi concerning future shipments of LNG from the
National Oil Co. (ADNOC) of the UAE on LNG UAE to Germany. This document envisions a
supplies. multi-year supply deal under which ADNOC
In a statement, RWE explained that one of will begin sending LNG to RWE in 2023, with
the documents was an agreement under which the latter company taking delivery of the cargoes
ADNOC would make its first commercial deliv- either at onshore LNG terminals or at FSRUs as
ery of LNG to Germany. This shipment will more marine terminals become available. (Ger-
consist of 137,000 cubic metres of LNG and will many is building several new FSRUs in order to
arrive at the Elbehafen LNG terminal in late expand its LNG import capacity.)
December, it said. ADNOC will load the fuel RWE is one of several German companies –
at its 6mn tonne per year (tpy) Das Island LNG along with Verbundnetz Gas (VNG), Uniper and
plant offshore Abu Dhabi and ship it by tanker Energie Baden-Wuerttemberg (EnBW) – that
to the Brunsbuettel floating storage and regasi- signed an MoU with the German government in
fication unit (FSRU) near Hamburg, it reported. August on future supplies of LNG to the coun-
RWE stressed that this shipment would mark try via FSRUs to be installed in Brunsbuettel and
ADNOC’s entry into the German LNG market at Wilhelmshaven. Both of these units are due to
a time when the country was working to expand begin operating before the end of 2022.
the range of its suppliers. “This marks an impor- The German company announced the deal
tant milestone in building up an LNG supply with ADNOC while German Chancellor Olaf
infrastructure in Germany and setting up a more Scholz was in the UAE. Scholz paid a state visit
diversified gas supply,” it said in its statement. to three Middle Eastern countries – Saudi Ara-
It also noted that the two companies had bia, Qatar and the UAE – on September 24-25.™

FINANCE & INVESTMENT

Arabian Drilling launches IPO,

book covered quickly

SAUDI ARABIA SAUDI Arabia’s Arabian Drilling Co. launched TAQA will sell 17.7mn shares, with a further
its initial public offering (IPO) this week, and 9mn new shares in Arabian Drilling to be sold.
within hours the full complement of shares allo- Arabian Drilling’s fleet comprises 45 rigs and
cated had been covered. the company noted that the proceeds of the IPO
Having last week announced last week that will be leveraged to expand the company’s fleet
it would sell 26.7mn shares, 30% of the total, and its operations throughout the Middle East.
when it listed on the local Tadawul All Share The company reported revenues of $586mn
Index (TASI) – the Riyadh stock exchange – it last year and has an order backlog of $2.2bn.
revealed this week that the IPO would be priced With media reports suggesting the company
at SAR90-100 ($24-26.7) per share, inferring a could achieve a valuation of $1.4bn, this infers
valuation of SAR2.4-2.67bn ($639-710mn). that the move could raise around $420mn.
Goldman Sachs, HSBC Holdings and SNB Majority state-owned Saudi Aramco is one
Capital were hired to manage the book-build- of the company’s key clients and CEO Ghassan
ing process – running from September 28 until Mirdad was quoted last week as saying that that
October 5 – that will determine the final price, Arabian Drilling is keen to support Aramco’s
which will be announced on October 11. efforts to boost maximum sustainable capacity
Arabian Drilling Co. is owned by the local (MSC) for oil production from 12mn barrels per
Industrialization & Energy Services Co. (TAQA, day to 13mn bpd.
51%) and Schlumberger (49%). A 45% stake in It is also reported to be considering a merger
TAQA is held by Saudi Arabia’s Public Invest- with fellow local firm ADES Group, which
ment Fund (PIF), the Kingdom’s sovereign would create a ‘national champion’ for drilling.™
wealth fund (SWF).

Week 39 28•September•2022 www. NEWSBASE .com P7