Page 13 - MEOG Week 08 2023

MEOG NEWS IN BRIEF MEOG

250 million standard cubic feet per day to the companiesmarketcap.com list. eastern Mediterranean have approved nearly
(MMscfd) of natural gas. A third exploration Aramco, with a market cap of $1.903 $100 million of spending on preparation for
block, the Khider Al-Mai block in Basra trillion, slid to the number three position expansion that includes a floating liquefied
province, will be explored and developed to behind Apple ($2.413T) and Microsoft natural gas (LNG) terminal off the coast of
add further supplies of oil and gas. ($1.920T). Israel, the companies said on Tuesday.
The contracts were signed at a ceremony Just two months ago, in mid-December, Leviathan, a deep-sea field with huge
today held at the Oil Ministry in Baghdad Aramco held the Number two position with a deposits, came online at the end of 2019
attended by Iraqi Prime Minister Mohammed market cap of $1.81T, behind only Apple. And and produces 12 billion cubic meters (bcm)
Shia Al-Sudani and Deputy Prime Minister before that, In May of last year, Aramco was of gas per year for sale to Israel, Egypt, and
for Energy Affairs and Minister of Oil, sitting at the top of the list with a $2.38 trillion Jordan. The idea is to boost capacity to include
Hayan Abdul Ghani, as well as Crescent market cap. sizeable volumes for Europe as it seeks to
Group Chairman Hamid Jafar, and Crescent Al Rajhi Capital said in a January report reduce dependence on Russian energy.
Petroleum CEO Majid Jafar. They were signed that Aramco’s net profit in Q4 2022 was “The development plan ... will enable
by Abdulla Al Qadi, Crescent Petroleum expected to decline 6.3% from the previous a significant increase in production to 21
Executive Director of Exploration and quarter, to $38.90 billion due to a weak bcm (billion cubic meters) a year,” said Yigal
Production, along with Midland Oil Company demand outlook stemming from a global Landau, CEO of Ratio Energies RATIp.TA.
Director-General Qadouri Abed Salim, economic slowdown. NewMed Energy, partner with Ratio and
and Basra Oil Company Director-General But while Aramco’s market cap has been Chevron Leviathan, said the group would
Basim Abdulkarim. First gas from the Diyala slipping, the company is anticipating China’s spend $45 million to plan initial production
operations is expected within 18 months to reopening to trigger a pick up in jet fuel expansion and a further $51.5 million on
supply nearby power plants. The company demand and crude oil demand, CEO Amin preparations for the floating LNG terminal.
will build a processing plant on site as well as Nasser said in a Bloomberg interview last The floating facility is expected to have
pipelines and infrastructure to supply gas. month. “We are very optimistic in terms of an annual LNG capacity of about 4.6 million
Crescent Petroleum is committed to demand coming back to the market,” Nasser tonnes or 6.5 bcm, NewMed said.
achieving 90 percent local employment at its said at the time. Israel, Egypt, and the European Union last
operations and will lead a variety of social Aramco isn’t the only one sharing a rosy year signed a memorandum of understanding
performance projects to deliver training outlook for global oil demand, with OPEC for Israeli gas to be sent to Europe through
and capacity building, education, and social remaining “cautiously optimistic”. LNG plants in Egypt.
services support to benefit the residents of Aramco’s Nasser lashed out last week Israeli Foreign Minister Eli Cohen met U.S.
Diyala and Basra provinces. against the ESG trends that were hampering energy envoy Amos Hochstein on Tuesday
Abdulla Al Qadi, Executive Director of investments into the oil and gas sector. and discussed the Israeli energy sector’s
Exploration and Production at Crescent “As far as the future of capital markets is potential to help Europe as well as the Middle
Petroleum said, “We are pleased to concerned, ESG is clearly a rising trend. And East, where Israel hopes to normalize ties with
commence this long-term partnership with in my view, an increased emphasis on ESG more Arab countries.
the Government of Iraq. Our new planned is a move in the right direction,” Nasser said “Some of the regional stability we aspire to
investments and operations will create last week, adding that if ESG-driven policies comes, among other things, from stability in
thousands of new jobs and support the local are implemented with a bias toward fossil fuel the energy market,” Cohen said, adding that
and national economy. Gas and oil supplies projects, the underinvestments would have Israel is strengthening ties with its neighbours
from these operations will help improve serious ramifications with regard to energy to establish new supply chains.
services and local economic development for security and affordability. It will take about three years from a final
the people of Iraq.” OILPRICE investment decision before the extra gas
WAM begins flowing to Egyptian LNG plants and
the local market, said an industry source
Aramco slips to world’s 3rd GAS familiar with the project. The floating LNG
component will come online after that.
largest company Leviathan partners begin are awaiting this move, and we are working
“The local, regional, and global markets
Saudi Arabia’s state-run oil giant, Saudi FLNG plans vigorously to advance it,” said NewMed CEO
Arabia, is now the world’s third-largest Yossi Abu.
company by market capitalization, according Partners in the Leviathan gas field in the REUTERS

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