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UAE merges energy, infrastructure ministries
Uae THE UAE has merged its energy and infrastruc- unit Masdar since 2006.
ture ministries into a single ministry, its govern- Under Al-Jaber, ADNOC has launched
ment announced on July 5, as part of a broader majors new upstream and downstream invest-
restructuring programme. The new ministry ment programmes and has taken steps to
will be led by the UAE’s current energy minister, increase foreign investment. it has also listed its
Suhail la-Mazrouei. fuel retail business, ADNOC Distribution.
Commenting on the move, UAE Prime Min- Al-Jaber was also a key figure behind
ister Sheikh Mohammed bin rashid said the ADNOC’s recent sale of a 49% stake in its gas
reform would create a more agile government pipeline system to a group of international
that is “faster in decision-making, and more up investors for more than $10bn. Cited as the big-
to date with changes.” gest energy deal of 2020, the deal saw US’ Global
The UAE has also set up a new ministry infrastructure Partners and Brookfield Asset
for industry and advanced technologies, to be Management, Singapore’s sovereign wealth
headed by Sultan al-Jaber, the head of national fund GiC, Canada’s Ontario Teachers’ Pension
oil company ADNOC. But the government has Plan Board, South Korea’s NH investment &
not said whether the appointment will affect his Securities and italian pipeline operator Snam,
current role. gain access to 983 km of pipelines that deliver
Al-Jaber also became the UAE’s Minister gas from ADNOC’s fields to its customers in the
of States and a member of its Council of Min- UAE.
isters in March 2013. He then took the helm ADNOC also spun off its oil pipeline network
of ADNOC in February 2016. His other roles last year, passing a 40% stake to US investors
include CEO of Abu Dhabi’s renewable energy Blackrock and KKr for $4bn.
Iran: US has failed to stop our oil exports
iran THE US failed to stop the sale of oil by iran iranian President Hassan rouhani previously
through sanctions, despite the intention to make said that US sanctions would have a weaker
the sale of “black gold” for the islamic republic effect with Tehran less dependent on oil.
“zero,” iran’s Vice President Eshaq Jahangiri has The government developed measures to
said in a statement on July 5. exempt from dependence on fuel exports by
Despite the rhetoric, iran’s sales have dropped pushing products and petrochemical exports,
in recent months as buyers, fearing US sanctions, which have a better return on investment.
have opted to either cut iranian crude imports or But, iran did not abandon attempts to find
find third-party companies to ship it with hefty alternative ways for oil exports, including
discounts. bypassing the Strait of Hormuz, via ports on the
“Oil, being iran’s major source of income, edge of the indian Ocean.
was under severe sanctions. Under previous Tehran is building a pipeline from the Goura
sanctions, the sales ceiling for iran was set at oil terminal to the Bandar Jask, which will allow
one million barrels of oil, then we sold up to 900 iran to transport up to 1mn barrels of oil per day,
thousand barrels of oil. Now they (the US) stated bypassing the Strait of Hormuz.
that iran’s oil sales should be zero, which, fortu- The project is planned to be completed at the
nately, they were not able to do, “ Jahangiri said. beginning of 2021.
Week 27 08•July•2020 www. NEWSBASE .com P7