Page 14 - MEOG Week 42 2021

MEOG NEWS IN BRIEF MEOG

Prince Abdulaziz sees Energy said that in engineering terms the (750.2 million dirham) for FEED services to
be used across its value chain, supporting the
discovery could have been recognized in
switch in demand from gas 2012 but the Leviathan rights holders did not company’s 2030 strategy.
submit the financial data for the capitalization
ADNOC said the five-year agreements
to oil of cash flow from the venture’s economic have options to extend for two years, and
“will enable around 50% of the value to flow
point of view.”
Saudi Arabia’s Minister of Energy Prince In their response the Leviathan partners back into the UAE’s economy,” under its In-
Abdulaziz bin Salman said users switching told the State Comptroller, “Already in Country Value localisation programme.
from gas to oil could account for demand December 2010 they reported to the Ministry The framework agreements were signed
of 500,000-600,000 barrels per day (bpd) of Energy about the commercial discovery, by ADNOC during the second phase of its
depending on winter weather and related due to the results of drilling and information engineering awards, with the first phase
energy prices. based on substantial volumes of resources and awarded earlier this year.
Prince Abdulaziz said that the rise in the commercial production capabilities in the The agreements have been signed
energy prices now is the result of limited relevant area of the rights.” with Amec International (part of the
investment in hydrocarbons, low inventories There has been scathing criticism in recent Wood Group), China Petroleum Pipeline
and post pandemic demand recovery. years about the sovereign wealth fund, due to Engineering Corporation, Engineers India
REUTERS the fact that the Leviathan and Tamar fields (EIL), GS Engineering & Construction, ILF
have generated huge revenue and yet the fund Consulting Engineers, Mott MacDonald,
has not begun operating. The fund is due Penspen International, Rejlers International
GAS to start operating when it has NIS 1 billion Engineering Solutions, SNC Lavalin, Saipem,
and yet until today only NIS 900 million has Samsung Engineering, Tebodin Middle East,
Failure to recognize accrued. Back in 2013, the Bank of Israel Technip Energies, Tecnicas Reunidas and
Worley Engineering, ADNOC said.
forecast that the fund would have several
Leviathan sooner cost billion shekels by 2021. deals “cover capital projects worth up to
The Emirati state-owned giant said the
The State Comptroller now reveals that
Israel dear by not recognizing the Leviathan field as a $200 million” and “were secured at highly
discovery earlier than 2014, the Leviathan
competitive rates” aimed at significantly
Israel’s State Comptroller’s report finds that partners were able to enjoy major tax reducing tender cycle duration.
the delay in recognizing the Leviathan field by subsidies for longer because the field was In August, ADNOC signed framework
the Energy Ministry costs Israel hundreds of still officially a high risk venture, subject to agreements worth $1 billion with eight
millions of shekels. reduced taxes. leading international engineering contractors
Israel’s offshore Leviathan gas field was GLOBES for concept and FEED projects across the
discovered in 2010 but it was only officially value chain, during the award’s first phase,
recognized by Israel’s Ministry of National Upstream reported.
Infrastructures, Energy and Water Resources SERVICES Abdulmunim Saif al Kindy, executive
in 2014. According to a report by the State director of ADNOC’s people, technology
Comptroller the delay cost Israel’s state coffers ADNOC signs contractor and corporate support, earlier said the
hundreds of millions of shekels. “engineering contractors” will provide best-in-
In 2010, the Leviathan partners announced deals class engineering expertise on the company’s
the discovery of 453 billion cubic metres strategic projects across the full value chain.
(bcm) of natural gas, with estimates since Abu Dhabi National Oil Company (ADNOC) Abu Dhabi is executing multiple
raised to 620 bcm. But State Comptroller has signed framework agreements worth brownfield and greenfield developments to
Matanyahu Englman found that the Ministry $204.4 million with up to 15 leading help scale up its oil production capacity to
of National Infrastructures, Energy and Water international engineering contractors for 5 million barrels per day by the end of this
Resources did not officially recognize the concept and front-end engineering design decade, up from the existing capacity of 4
discovery until 2014. projects across the hydrocarbon value chain. million bpd.
The State Comptroller wrote, “At a meeting The state-owned United Arab Emirates UPSTREAM
held between the Tax Authority and Ministry giant said in a social-media post this week that
of Energy in June 2016, the Ministry of it has agreed deals worth up to $204.4 million

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