Page 20 - DMEA Week 45

DMEA NEWS IN BRIEF DMEA

ADNOC buys Ultramax bulk facility has the capacity to capture 800,000 enhanced customer experience, and attractive
According to ADNOC, currently, the
capital returns for our shareholders.”
carrier al-Karama tonnes of CO2 annually. ADNOC plans to significant capacity to deploy capital through
Al Shamsi added: “We maintain the
expand the capacity of this program six-fold
ADNOC Logistics & Services announced on by capturing CO2 from its own gas plants, a disciplined investment strategy aimed at
November 12 it had acquired an Ultramax with the aim of reaching 5 million tonnes of continuing our efforts to expand our fuel
bulk carrier, called al-Karama, which was CO2 every year by 2030 – the equivalent of station network, with a focus on the Dubai
built in 2019 and had a deadweight of the annual carbon capture capacity of over 5 market, as well as investing in our non-fuel
64,000 tonnes. million acres of forest. and international business expansion.”
The new vessel, with other recent similar During the first half of 2020, ADNOC
acquisitions, raises the company’s bulk Distribution saw a 22.4% decrease in net
cargo tonnage by 214,000 metric tonnes, a profits to AED 910mn, compared to AED
statement from the United Arab Emirates ADNOC signs LNG supply 1.17bn in the year-ago period.
company said.
deals with Vitol and Total
ADNOC and Total sign UAE state oil company ADNOC on Net value of Iran’s South
Pars gas field jumps to
November 11 said it had signed a six-year deal
strategic deal on CCUS, to supply energy trader Vitol with LNG, and a $135bn
two-year contract to serve France’s Total with
emissions reduction the super-chilled gas. The net value of Iran’s supergiant South
Vitol will get 1.8mn tonnes per year of
The Abu Dhabi National Oil Company LNG after 2022, while Total will get 0.5mn Pars natural gas field has jumped from an
(ADNOC) has signed a strategic framework tpy in 2021 and 2022. estimated $116bn at this point last year to
agreement with Total, to explore joint “We are pleased to partner with both Vitol $135bn now, a senior oil and gas industry
research, development and deployment and Total on these major deals as they will source who works closely with Iran’s
partnership opportunities in the areas of CO2 create reliable, long-term benefits for our Petroleum Ministry has told OilPrice.com.
emission reductions and carbon capture, company and shareholders,” ADNOC LNG The key reason is reportedly that progress
utilisation and storage (CCUS). CEO Fatema Al said. across all areas of the development, including
The agreement expands on the long- the controversial Phase 11, has picked
standing partnership and collaboration up pace on the back of an increase in the
between the two leading energy producers ADNOC Distribution profits involvement of various Chinese companies
across the full value chain, according to a who operate under the US’s sanctions radar
statement from ADNOC. slide 8% in 9M 2020 through individual contract-only projects,
Sultan Ahmed Al Jaber, UAE Minister not as official field developers. It is now
of Industry and Advanced Technology and The net profits of Abu Dhabi National expected by Iran’s Petroleum Ministry
ADNOC Group CEO, said: “The agreement Oil Company for Distribution (ADNOC that the entire South Pars project will be
builds on our sustainability goal to decrease Distribution) decreased by 8.1% to producing at or near fully Phase 1 capacity
greenhouse gas (GHG) intensity by 25% by AED1.58bn in the January-September period well in advance of the March 2022 official
2030, and reinforces ADNOC’s commitment of 2020 from AED 1.72bn in the same period completion date, according to the trade
to responsible oil and gas production as we of 2019. media outlet.
deliver on our 2030 smart growth strategy.” The company’s revenues amounted to “It was obvious to anyone who knows how
Under the terms of the agreement, AED 11.99bn during the first nine months of China works in such situations, including
ADNOC and Total will jointly explore 2020, down 24.7% from AED15.91bn in the in neighbouring Iraq, that it was not going
opportunities to reduce CO2 emissions, corresponding period of 2019, according to to walk away from its investment either in
improve energy efficiency and use renewable the company’s financial results for the period Phase 11 or in Iran as a whole, especially
energy for oil and gas operations. In the ended on September 30 2020. as it was in the process of widening out the
area of CCUS, the companies will further The company’s earnings before interest, 25-year [strategic trade and investment]
develop joint research into new technologies tax, depreciation, and amortisation (EBITDA) deal with the country,” a source was cited as
covering carbon capture, storage solutions declined by 2.2% to AED 2.134bn in the saying.
and enhanced oil recovery projects based on January-September period of 2020, compared The 25-year deal, if signed off, would
CO2 usage. to AED 2.18bn in the year-ago period. mean Chinese companies getting the first
Patrick Pouyanne, Chairman & CEO of The basic and diluted earnings per share option to bid on any new—or stalled or
Total, said: “This initiative will allow the two (EPS) settled at AED0.126 in the first nine incomplete—oil, gas, and petrochemical
companies to join forces in several domains months of 2020, versus AED0.138 in the projects in Iran. China would also be able to
such as the reduction of carbon emissions on prior-year period. buy any and all oil, gas, and petrochemical
industrial sites, improvement of the energy During the third quarter (Q3) of 2020, products at a minimum guaranteed discount
efficiency in operations, and the development the company’s net profits increased by 22.3% of 12% to the six-month rolling mean
of innovative solutions and business models to AED 671mn from AED 549mn in the average price of comparable benchmark
towards the CCUS chain.” corresponding period of 2019. products, plus another 6% to 8% of that
The potential for collaboration in Commenting on the company’s metric for risk-adjusted compensation,
CCUS by ADNOC and Total complements performance, the Acting CEO of ADNOC OilPrice.com added. .
ADNOC’s CCUS program which has seen Distribution, Ahmed Al Shamsi, said:
the company establish the Al Reyadah “ADNOC Distribution’s third-quarter results
facility, the first commercial-scale CCUS have continued to advance our strategic
facility in the Middle East. priorities of steady and sustainable growth,

P20 www. NEWSBASE .com Week 45 12•November•2020