Page 10 - MEOG Week 06 2023

MEOG PROJECTS & COMPANIES MEOG

South Pars condensate passes 700,000 bpd

IRAN GAS condensate production at the 14 refineries (+20% y/y), liquefied petroleum gas (LPG)
of Iran’s South Pars Gas Complex (SPGC), has (+25% y/y) and sulphur (+12% y/y), he added.
exceeded 700,000 barrels per day (bpd), accord- The official also noted that the SPGC accounts
ing to an SPGC official cited by IRNA on January for 96% of LPG, 100% of ethane, which is pri-
31. marily used as a feedstock in petrochemical pro-
The giant South Pars field in the Persian Gulf, duction, and 55% of sulphur produced in Iran.
shared with Qatar, is seen as potentially the larg- A week earlier, the National Iranian Gas Co.
est gas field in the world. Extraction from several (NIGC) reported the country’s annual gas con-
deposits is not yet active. sumption at 228bcm, 70% of which is consumed
According to the official, Ali Ahmadi, direc- by the industrial sector.
tor of production and export control at SPGC, NIGC’s director of coordination of gas sup-
the complex is the largest gas condensate pro- ply, Muslem Rahmani said that 30% of usage is
ducer in Western Asia, in the domestic sector, adding that the 70:30 split
He estimated the complex’s current daily is reversed during winter months, with demand
natural gas production at 570mn cubic metres from household and commercial sectors at times
(mcm). accounting for up to 80%.
“The share of fossil fuel in Iran’s energy basket He added: “Iran is also one of the rich coun-
is 74%, of which 50% is produced by the SPGC,” tries in terms of gas energy due to the presence
Tehran’s Financial Tribune quoted him as saying. of very rich reserves in the South Pars region and
Data from 2022 shows daily output increases other regions, which has caused great measures
for several SPGC products, including ethane to be taken in this field.”™

ADNOC signs local manufacturing deals

UAE ABU Dhabi National Oil Co. (ADNOC) this said. In November 2022, ADNOC signed man-
week signed deals worth $4.63bn with 23 com- ufacturing agreements worth up to $9.5bn with
panies for the local manufacturing of various 25 companies, including Siemens, Halliburton
industrial products in an effort to boost the Emi- and Schneider Electric.
rati manufacturing sector. That month, the company also handed out
It said that “the products are part of the $4bn worth of framework deals entailing drill-
$19bn worth of products in ADNOC’s procure- ing services to support the company’s ongoing
ment pipeline that the company identified for upstream expansion – three five-year integrated
domestic manufacturing in July 2022.” These drilling fluids services (IDFS) contracts with an
will include pipes and fittings, valves, bends and option for a further two years.
cladded pipes, industrial pumps, batteries, pipes ADNOC’s drilling arm picked up one of the
and fittings, among others. contracts, with SLB and Halliburton winning
Companies that were awarded contracts the other two. The deals are the latest in a series
include: Proclad, Tri Star Middle East and Petro aimed at achieving ADNOC’s short- and longer-
Globe Oil & Gas Equipment. term oil production goals.
The previous and latest deals were signed ADNOC Drilling’s contract was valued at
by UAE and international companies as part $1.6bn and its parent has now awarded more
of a strategy to encourage the private sector to than $16bn worth of drilling-related equipment
capitalise on the commercial opportunities and services contracts in the past 12 months.
for domestic manufacturing across ADNOC’s The Emirati NOC is working to raise its oil
“In-Country Value (ICV) programme.” production capacity of 4.2mn barrels per day or
“These agreements reinforce our role as a so to 5mn bpd by 2025, and up to 6mn bpd by the
critical engine for the UAE’s industrial growth end of the decade.
and they offer significant potential to further These deals followed the award in October
increase our GDP [gross domestic product] to ADNOC Drilling of $1.53bn worth of drill-
contributions, stimulate economic diversifica- ing work covering the provision of 12 jack-ups,
tion and create more skilled job opportunities two island rigs and associated integrated drill-
for UAE nationals,” said Saleh Al Hashimi, head ing services (IDS) for a period of two years, with
of ADNOC’s commercial and ICV directorate. another $980mn, 15-year deal apportioned to
“We look forward to working with these com- the same firm shortly after for the hire of two
panies to deliver on these important agreements jack-up offshore rigs and associated manpower
and drive more sustainable value to the UAE,” he and equipment.™

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