Page 14 - DMEA Week 30 2021

DMEA NEWS IN BRIEF DMEA

POLICY COMPANIES medium to long term. The midstream sector
will remain integral to its proper functioning.
Iraq shall not replace fossil Brooge announces positive Our strategic positioning in Fujairah, where
the high utilization of third-party storage
oil with more renewable feasibility study for phase 3 terminals along with upcoming infrastructure
investments, is expected to drive sustainable
resources Brooge Energy, a midstream oil storage and and growing demand for our storage
solutions. To leverage this opportunity as
service provider strategically located outside
Iraq shall not replace fossil oil with solar the Strait of Hormuz, in the Port of Fujairah in much as possible, we are building out our
energy to produce electricity, Energy and Oil the United Arab Emirates, today released the technologically-advanced terminals that are
expert Hamza al-Jawaheri said on Monday. results of the feasibility study commissioned able to deliver high margins. We also plan
In an interview with Shafaq News Agency, for Brooge Energy’s Phase III oil storage to build out a modular and a conventional
al-Jawaheri said, “solar energy is efficacious in facility and refinery. refinery, including the capability to comply
remote areas or agricultural fields that are not The feasibility study supports the financial with the new IMO 2020 low sulphur rule,
located anywhere near rivers in order to draw viability of the Company’s Phase III expansion at a time when the UAE is adding to its oil
water from wells.” plan, highlighting upcoming infrastructure production capacity which we anticipate will
“However, in urban areas, they are useless investments in the region as a key driver drive demand for refinery services for both
and four times more expensive than fossil oil,” of sustainable storage demand and rising the domestic and export market. With the
he added. domestic and export demand for refined completion of this study, we are now looking
“Iraq is an oil-producing country. It products as a key driver of refinery demand. forward to potentially starting construction
supplies 12% of the world’s needs. It is not in The Phase III expansion project is for a 2.5 for Phase III as early as the second half of
its best interest to adopt renewable energy million cbm oil storage facility1, a modular 2021.”
resources,” he continued, “Iraq’s economy is 25,000 barrel per day (bpd) refinery, and a BROOGE
rentier that relies on oil to fund its treasury. larger 180,000 bpd conventional refinery. The
Promoting alternative energy is not the successful build out of Brooge Energy’s Phase Fitch revises Aramco’s
optimal choice to address the power issue in III facility would position the Company as
Iraq.” the largest independent oil storage facility outlook to stable from
Renewable energy is useful energy that is in Fujairah, with capacity to store Clean
collected from renewable resources, which are Petroleum Products; Middle Distillates; High negative
naturally replenished on a human timescale, and Low Sulphur Fuel oil as well as crude oil.
including carbon neutral sources like sunlight, The Phase III expected construction period is Fitch Ratings, one of the top global credit
wind, rain, tides, waves, and geothermal heat. two years, with the Company anticipating it rating agencies, has revised Saudi Arabian Oil
This type of energy source stands in contrast will be operational within 2023. Company’s (Saudi Aramco) outlook to stable
to fossil fuels, which are being used far more Nicolaas L. Paardenkooper, CEO of Brooge from negative while affirming the company’s
quickly than they are being replenished and Energy and BPGIC, said, “The feasibility long-term issuer default rating (IDR) at ‘A’.
with more serious damage to the ecosystem. study defines a project with robust economics In a new report published on Tuesday,
Renewable energy capacity additions and reinforces the strength of our business the rating agency said that the revision of
in 2020 expanded by more than 45% from strategy, highlighting that the oil market is the outlook on Saudi Aramco’s IDR is driven
2019, including a 90% rise in global wind expected to continue to be the most important by a similar action on the sovereign early
capacity and a 23% expansion of new solar energy source going forward, with the Middle this month, while it assessed the oil giant’s
photovoltaic installations. East region continuing to be the leading standalone credit Profile (SCP) at ‘aa+’.
SHAFAQ NEWS producer and exporter of crude over the According to the report, Fitch based its

P14 www. NEWSBASE .com Week 30 29•July•2021