Page 11 - MEOG Week 09 2023

MEOG PROJECTS & COMPANIES MEOG

Abraj signs deal for work on PNZ’s Wafra

SAUDI ARABIA OMAN’S state-owned Abraj Energy Services PNZ production
this week signed a five-year deal to provide drill- The PNZ is understood to have a production
ing and extraction services in the Partitioned capacity of around 550,000 barrels per day –
Neutral Zone (PNZ) shared between Kuwait 250,000 bpd from Wafra and 300,000 bpd from
and Saudi Arabia. Al-Khafji, which is sourced across rigs based
The deal, which covers the onshore Wafra both on-and offshore. Production is shared
oilfield, was signed between Abraj, Kuwait Gulf 50:50 by the two countries.
Oil Co. (KGOC) and Saudi Arabian Chevron The fields were shut in because of disagree-
(SAC), which respectively represent Kuwait Oil ments between the two governments in 2014 and
Co. (KOC) and Saudi Aramco in the Wafra Joint then in 2015. Following the 2019 agreement, out-
Operations (WJO) area. put increased to around 270,000 bpd by the end
Abraj, which has a fleet of 25 drilling rigs of 2021 and the partners are working to expand,
and 5 well maintenance rigs, will build three with Kuwaiti officials last year announcing ambi-
new drilling units as part of the deal as well as tious though loose plans to achieve a combined
providing other related services to increase oil output of 700,000 bpd.
production at Wafra. In January, KGOC said it had completed the
In a press release accompanying the deal’s second phase of a pipeline carrying gas from the
announcement it said that the deal fell “within shared fields to the emirate’s domestic processing
the framework of strengthening its position and facilities.
expanding its operations in the drilling services Company sources told the local Al-Anba
market in the Middle East and North Africa Arabic language newspaper that the second
region.” phase would increase the pipeline’s capacity by
Meanwhile, Abraj CEO Saif Al Hamhami 16mn cubic feet (0.45mn cubic metres) per day
said: “The company is pre-qualified to provide of gas and 6,000 bpd of LPG. This takes capacity
various services in Kuwait, Saudi Arabia and to 40 mmcf (1.13 mcm) per day following the
Algeria, where the company’s advanced rigging completion of the 24 mmcf (0.68 mcm) per day
fleet is linked to long-term contracts with lead- first phase in Q3 2021.
ing national and international companies in the They said that the 12-inch (305mm) pipe-
field of exploration and production.” line has a total length of 109 km, running
He added that Abraj has a competitive advan- through around 4 km onshore the PNZ from
tage “through its possession of the latest and the Al-Khafji field’s gathering facilities, then 47
most advanced drilling fleets in the Middle East km offshore to Al-Zour, the location of the coun-
and North Africa region. Regional and global try’s new downstream hub, and 58 km onwards
markets such as Saudi Arabia, Kuwait and Alge- alongside major infrastructure that runs north
ria, where rigs of 1,500 HP or more are particu- to the capital.
larly in demand.” The latter section is 24 inches (610mm) in
Meanwhile, Abraj’s parent firm OQ is set to diameter and connects to processing and puri-
list a 49% share of the drilling company in an fication units at the Mina Al-Ahmadi Refinery.
initial public offering (IPO) on the Muscat Stock When the first phase of the pipeline was com-
Exchange (MSX) in mid-March. Last week, the pleted in late 2021, KGOC said that the conduit
Saudi Omani Investment Co., a wholly-owned had been linked up to networks belonging to sis-
affiliate of Saudi Arabia’s Public Investment Fund ter company KOC.
(PIF), committed to acquiring 20% of the shares. It said that operating the pipeline would
Oman’s Royal Court Affairs while Schlumberger “boost optimum use of the petroleum resources”
Oman & Co. will pick up 10%. in the PNZ while meeting “local needs for gas,
OQ is expecting to raise up to $244mn particularly at peak consumption times”. KGOC
from the share sale with shares seen selling for praised its partner in the Khafji Joint Opera-
OMR0.24-0.25 apiece. This give Abraj a market tions (KJO), Saudi Aramco subsidiary Ara-
capitalisation of just under $500mn, though the mco Gulf Co-operation Co. (AGOC), for its
share price will be announced around March 6, help in “accomplishing the high feasibility gas
a week ahead of the IPO. project”.™

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