Page 11 - MEOG Week 30 2022

MEOG NEWS IN BRIEF MEOG

COMPANIES million barrels of condensate oil at December $1.3 billion (AED 4.89 billion) for integrated
31, 2021, and an annual capacity of 12 bcm. drilling services and fluids, and $711 million
Leviathan Bond affirmed at S&P (AED 2.6 billion) for the provision of four
Island Drilling Units. A third contract, valued
BB- Genel confirms receipt of at $681 million (AED 2.5 billion), was also
awarded to ADNOC Logistics & Services for
The operations underlying Leviathan Bond $48.8mn from KRG the provision of offshore logistics and marine
Ltd. (Leviathan or the project) continue to support services.
post solid performance, with remaining Genel Energy has confirmed, in a statement, Overall, more than 80% of the value of the
proven gas reserves (1P) up 8.7% at December the receipt of some US$48.8mln of payments awards will flow back into the UAE’s economy
31, 2021, versus the previous year. from the Kurdistan Regional Government under ADNOC’s successful In-Country Value
Despite market and operational (KRG), relating to oil sales in the month of (ICV) program and all three of the contracts
improvements, our rating on Leviathan’s debt April. will cover the Hail and Ghasha drilling
remains limited by our view on the revenue It comprised US$19.9mln for production campaign for a maximum of ten years.
counterparties, with exports to Egypt and from the Tawke field as well as US$12.7mln The Hail and Ghasha Development Project
Jordan remaining the major risk for the from the Tawke override facility, along with is part of the Ghasha Concession which is the
project. contributions of US$2.3mln and US$3.7mln world’s largest offshore sour gas development
We affirmed our ‘BB-’ rating on Leviathan’s from the Taq Taq and Sarta operations and a key component of ADNOC’s integrated
senior secured notes, with the recovery rating respectively. gas masterplan as well as an important enabler
unchanged at ‘1’, indicating our expectations Genel meanwhile was paid US$10.2mln of of gas self-sufficiency for the UAE.
of 90% recovery in the event of a default. past receivables from the KRG. His Excellency Dr. Sultan Ahmed Al
The stable outlook reflects our expectations After this latest payment the company is Jaber, Minister of Industry and Advanced
for gas exports to Egypt and Jordan, solid now owed US$58mln of net receivables from Technology and Managing Director and
operational performance, credit metrics the KRG, for oil sales in the period between Group CEO of ADNOC said: “These
comfortably above 1.50x, and that the gas sale November 2019 and February 2020 as well as substantial awards mark another important
and purchase agreement (GSPA) offtakers will the period between April 2020 to December milestone in the delivery of the Ghasha
maintain their creditworthiness. 2020 in which payments under the Tawke mega-project. They also demonstrate the deep
Discovered in 2010, the Leviathan field override facility were suspended. expertise and experience within ADNOC
is an offshore gas field located in the eastern PROACTIVE Drilling and the wider group to efficiently
Mediterranean and the largest natural deliver complex projects that enable gas
gas reserve in Israel. Situated offshore, ADNOC Drilling wins $2bn of expansion, while generating substantial in-
approximately 120 kilometres (km) west of country value to drive economic growth and
Haifa at a water depth of 1.7 km, it currently work for Hail and Ghasha diversification.
supplies gas to Israel, Egypt, and Jordan. “ADNOC is committed to unlocking
According to a reserve report prepared Abu Dhabi National Oil Company (ADNOC) the UAE’s abundant natural gas reserves to
by independent engineering consultant, today announced the award of two substantial enable domestic gas self-sufficiency, industrial
Netherland, Sewell, & Associates Inc. (NSAI), contracts totaling $2 billion (AED 7.49 billion) growth and diversification, as well as to meet
the field had 1P reserves totalling 12,259.8 to ADNOC Drilling for the Hail and Ghasha growing global gas demand, in line with the
billion cubic feet (BCF) of gas and 27.0 Development Project. The contracts comprise UAE Leadership’s wise directives. Abu Dhabi’s

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