Page 14 - MEOG Week 37

MEOG
neWs in bRief
MEOG
ComPanies
Bapco says operations
continue after Saudi
pipeline cutoff
Bahrain’s national oil and gas authority said on Monday that facilities at Bapco refinery were continuing without impact on the provision of oil derivatives in the local market, state news agency BNA reported.
Sources told Reuters earlier on Monday that Saudi Arabia has shut down its crude oil pipeline to Bahrain after attacks on Saudi oil facilities.
“Operations to supply Bapco refinery with crude oil are underway in accordance with the business continuity plan,” the authority said.
“We are in constant touch with Saudi Aramco and continue to assess the situation and its impact on our operations,” it added. ReuteRs
Aramco trading arm wants
refined products after
attacks
Saudi Aramco’s trading arm is looking for oil products for prompt delivery after Saturday’s attacks on Saudi oil facilities, several trade sources said this week.
Saudi Arabia is set to become a significant buyer of refined products after the attacks forced it to shut down more than half of
its crude oil output and some of its gas, consultancy Energy Aspects said in a note on Sunday.
The attacks may have curtailed as much as 1 million barrels per day (bpd) of Aramco’s refining capacity, Energy Aspects said, although this could not be confirmed and
it was not clear to which Saudi Aramco refineries it was referring.
Aramco Trading Company (ATC), the trading arm of Saudi Aramco, is making enquiries to buy diesel for prompt delivery, two of the trade sources said.
Saudi Arabia is typically a net exporter of diesel.
“They are looking (for oil products) since they are trimming runs at some of the refineries,” one source said, declining to be named as he was not authorised to speak to media.
he said the total volumes sought by Saudi Arabia were not immediately clear, but that the prompt derivatives market was trading higher on Monday.
ATC is seeking 10 parts-per-million (ppm) sulphur diesel through private discussions, asking for “anything prompt,” a second trader said.
it is also seeking 500ppm sulphur gasoil for delivery into the Arabian Gulf, most likely for domestic use, said a third source, in the refining industry.
Brent crude futures LCOc1, the international benchmark, rose by as much as 19.5% to $71.95 per barrel during early Asian trading hours. [O/R]
A fourth trading source said Aramco Trading may have bought two ultra-low sulphur diesel cargoes from india and the Middle East, although this could not be confirmed immediately and further details were not available.
“The issue for Aramco is how they can meet their huge commitments to deliver products in September and October,” another diesel trader said. The trader, who is expecting a delivery of a Saudi diesel cargo at the end of the month, said they have not yet heard any notifications of changes from Aramco.
An ATC official declined to comment on the matter.
“Tightness in ultra-low-sulphur diesel
will be magnified especially since the new Saudi export refineries produce 40 to 45% low sulphur diesel,” Gary Ross, founder of Black Gold investors, told Reuters.
ReuteRs
seRViCes
SNC-Lavalin awarded
contract from Al Yasat
Petroleum
SNC-Lavalin (TSX:SNC) announces that
it has been awarded a general engineering, project management and technical support services contract from Al Yasat Petroleum, a joint venture between Abu Dhabi National Oil Company (ADNOC) and China National Petroleum Corporation (CNPC), with an estimated value of approximately $52 million CAD.
Under the three-year agreement, extendable for two years, SNC-Lavalin will partner with Al Yasat Petroleum extending the engineering and project support arm, in line with the Al Yasat Smart Growth Operating Model. The scope of work includes conceptual studies and design, front end engineering and design (FEED), execution planning, detailed engineering for small works and specialized studies. SNC-Lavalin will support Al Yasat
in managing sub-contracts, procurement services and market surveys. As part of this agreement, SNC-Lavalin will also provide
its digital expertise to help Al Yasat in the ambitious digital transformation plan using latest technologies. Project support includes project services and securing Al Yasat with manpower to be part of an integrated project management team.
“With over 50 years of presence in the Middle East, we have built a reputation
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Week 37 17•September•2019