Page 13 - MEOG Week 02 2023

MEOG NEWS IN BRIEF MEOG

COMPANIES flawed combination with NewMed - in effect GAS
a backdoor London listing for NewMed,” a
Capricorn rejects attempt to Palliser spokesperson said. Oman signs agreements,
The Capricorn board asked Palliser
block NewMed deal representatives to review the company’s MoU in LNG, green hydrogen
internal business plan after signing a non-
Capricorn Energy on Thursday rejected a disclosure agreement. fields
plan by its third largest shareholder to scrap Capricorn Energy said it would issue
a proposed merger with NewMed Energy, notice next week for a general meeting on Feb. Several agreements and a memorandum
saying its was based on false information. 1 regarding Palliser’s demand for the removal of understanding (MoU) were signed at
In an open letter to shareholders, the of directors and expects to hold a vote on the OQ Group’s headquarters today in the
board of Capricorn Energy asked stakeholder NewMed deal on or around the same date. field liquefied natural gas (LNG) and green
Palliser to review its planned merger with the REUTERS hydrogen.
Israeli company weeks after Palliser pushed The Ministry of Energy and Minerals
for a board overhaul to block the deal. Sinopec wins $3bn contract signed a Letter of Intent with Oman Shell
Several other investors joined Palliser company to explore opportunities for the
in opposing the merger with NewMed that for Zarqa refinery expansion production of Liquefied Synthetic Gas (LSG)
would create a gas producer focused on Egypt in the Sultanate of Oman.
and Israel when Europe is looking for non- Sinopec Engineering Co has reportedly LSG is produced when green hydrogen
Russian gas, saying it undervalues Capricorn. secured a $3 billion contract from Jordan is combined with captured carbon dioxide
Capricorn shares were down about 1% Petroleum Refinery Co, and will jointly to produce natural gas which is then
while NewMed shares were down by about 5% develop the fourth expansion phase of the liquefied. This low-carbon gas can be directly
at 1456 GMT. Zarqa Refinery Tecnimont and Japan’s introduced to existing gas networks and
The board said in the letter that Palliser’s Itochu Corp. infrastructure, including the liquefied natural
plan was based on an overstated value of The aim of the project is to expand the gas stations of the Oman LNG Company, all
Capricorn as a standalone company and Zarqa refinery’s capacity to 150,000 barrels the way to the end user.
included “outdated and incorrect facts and per day, up from the current 60,000 barrels a The agreement was signed by Eng.
assumptions,” including being able to return day. Salim Nasser Al Aufi, Minister of Energy
to shareholders $620 million in cash. The consortium will undertake the and Minerals, and Walid Hadi, Senior Vice
Palliser’s plan would deliver up to $866 construction work’s of the whole plant’s President and Country Chair, Oman Shell.
million in fair market value, compared with production equipment, public works and Commenting on the agreement, Eng. Salim
$920 million from the current NewMed facilities outside the plant. Al Aufi said, “This agreement is evidence
merger offer, the board said in the letter. JPRC is Jordan’s only oil refining of our confidence in the future of the Sultanate
In a response to a Reuters email query, company and is headquartered in the of Oman as a multiple energy source hub, as
Palliser rejected Capricorn’s argument it had country’s capital city, Amman. The well as the rapid development of its interest
overstated the company’s value. company’s refinery is situated in Zarqa, in renewable energy and green hydrogen
“(We) are concerned that this board and is primarily engaged in the manufacture production. The Ministry works with care to
appears intent on talking down the prospects of different types of fuels and petrochemicals. achieve optimal utilization of the Sultanate of
of the company to justify their support for the OGME Oman’s natural resources, by employing

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