Page 13 - MEOG Week 08 2023
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MEOG                                        NEWS IN BRIEF                                             MEOG

       250 million standard cubic feet per day   to the list.  eastern Mediterranean have approved nearly
       (MMscfd) of natural gas. A third exploration   Aramco, with a market cap of $1.903   $100 million of spending on preparation for
       block, the Khider Al-Mai block in Basra   trillion, slid to the number three position   expansion that includes a floating liquefied
       province, will be explored and developed to   behind Apple ($2.413T) and Microsoft   natural gas (LNG) terminal off the coast of
       add further supplies of oil and gas.  ($1.920T).                         Israel, the companies said on Tuesday.
         The contracts were signed at a ceremony   Just two months ago, in mid-December,   Leviathan, a deep-sea field with huge
       today held at the Oil Ministry in Baghdad   Aramco held the Number two position with a   deposits, came online at the end of 2019
       attended by Iraqi Prime Minister Mohammed   market cap of $1.81T, behind only Apple. And   and produces 12 billion cubic meters (bcm)
       Shia Al-Sudani and Deputy Prime Minister   before that, In May of last year, Aramco was   of gas per year for sale to Israel, Egypt, and
       for Energy Affairs and Minister of Oil,   sitting at the top of the list with a $2.38 trillion   Jordan. The idea is to boost capacity to include
       Hayan Abdul Ghani, as well as Crescent   market cap.                     sizeable volumes for Europe as it seeks to
       Group Chairman Hamid Jafar, and Crescent   Al Rajhi Capital said in a January report   reduce dependence on Russian energy.
       Petroleum CEO Majid Jafar. They were signed   that Aramco’s net profit in Q4 2022 was   “The development plan ... will enable
       by Abdulla Al Qadi, Crescent Petroleum   expected to decline 6.3% from the previous   a significant increase in production to 21
       Executive Director of Exploration and   quarter, to $38.90 billion due to a weak   bcm (billion cubic meters) a year,” said Yigal
       Production, along with Midland Oil Company  demand outlook stemming from a global   Landau, CEO of Ratio Energies RATIp.TA.
       Director-General Qadouri Abed Salim,   economic slowdown.                  NewMed Energy, partner with Ratio and
       and Basra Oil Company Director-General   But while Aramco’s market cap has been   Chevron Leviathan, said the group would
       Basim Abdulkarim. First gas from the Diyala   slipping, the company is anticipating China’s   spend $45 million to plan initial production
       operations is expected within 18 months to   reopening to trigger a pick up in jet fuel   expansion and a further $51.5 million on
       supply nearby power plants. The company   demand and crude oil demand, CEO Amin   preparations for the floating LNG terminal.
       will build a processing plant on site as well as   Nasser said in a Bloomberg interview last   The floating facility is expected to have
       pipelines and infrastructure to supply gas.  month. “We are very optimistic in terms of   an annual LNG capacity of about 4.6 million
         Crescent Petroleum is committed to   demand coming back to the market,” Nasser   tonnes or 6.5 bcm, NewMed said.
       achieving 90 percent local employment at its   said at the time.           Israel, Egypt, and the European Union last
       operations and will lead a variety of social   Aramco isn’t the only one sharing a rosy   year signed a memorandum of understanding
       performance projects to deliver training   outlook for global oil demand, with OPEC   for Israeli gas to be sent to Europe through
       and capacity building, education, and social   remaining “cautiously optimistic”.  LNG plants in Egypt.
       services support to benefit the residents of   Aramco’s Nasser lashed out last week   Israeli Foreign Minister Eli Cohen met U.S.
       Diyala and Basra provinces.         against the ESG trends that were hampering   energy envoy Amos Hochstein on Tuesday
         Abdulla Al Qadi, Executive Director of   investments into the oil and gas sector.  and discussed the Israeli energy sector’s
       Exploration and Production at Crescent   “As far as the future of capital markets is   potential to help Europe as well as the Middle
       Petroleum said, “We are pleased to   concerned, ESG is clearly a rising trend. And   East, where Israel hopes to normalize ties with
       commence this long-term partnership with   in my view, an increased emphasis on ESG   more Arab countries.
       the Government of Iraq. Our new planned   is a move in the right direction,” Nasser said   “Some of the regional stability we aspire to
       investments and operations will create   last week, adding that if ESG-driven policies   comes, among other things, from stability in
       thousands of new jobs and support the local   are implemented with a bias toward fossil fuel   the energy market,” Cohen said, adding that
       and national economy. Gas and oil supplies   projects, the underinvestments would have   Israel is strengthening ties with its neighbours
       from these operations will help improve   serious ramifications with regard to energy   to establish new supply chains.
       services and local economic development for   security and affordability.  It will take about three years from a final
       the people of Iraq.”                OILPRICE                             investment decision before the extra gas
       WAM                                                                      begins flowing to Egyptian LNG plants and
                                                                                the local market, said an industry source
       Aramco slips to world’s 3rd         GAS                                  familiar with the project. The floating LNG
                                                                                component will come online after that.
       largest company                     Leviathan partners begin             are awaiting this move, and we are working
                                                                                  “The local, regional, and global markets
       Saudi Arabia’s state-run oil giant, Saudi   FLNG plans                   vigorously to advance it,” said NewMed CEO
       Arabia, is now the world’s third-largest                                 Yossi Abu.
       company by market capitalization, according   Partners in the Leviathan gas field in the   REUTERS

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