Oil and Gas round-up

This weekend has been a busy one for the oil and gas sector in the Middle East as Saudi Arabian Oil Co. and Total SA planned to sell bonds; Petrochemical Industries Co revealed the cost of their planned petrochemical plant; Dubai Electricity & Water Authority (DEWA) delayed its power plant bid deadline; And finally, Australia expresses an interest in Wassit.

The world's biggest crude producer, Saudi Arabian Co., and Total SA have hired banks to sell Islamic bonds in order to fund the construction of a US$12 billion oil refinery it was reported at the weekend by two bankers familiar with the deal.

Saudi Arabian Oil, also known as Aramco, and Total, Europe's largest refiner, appointed Deutsche Bank AG, Samba Financial Group and Calyon to manage the mainly domestic bond sale, said the bankers.

The size of the issue may be around US$1 billion, one banker said. The joint-venture is also discussing the possibility of issuing an international conventional bond after raising funds from the Islamic market as the companies seek to reduce dependence on short-term bank financing, he said.

The companies aim to start operations at the 400,000 barrels-a-day refinery in 2013 and plan to sell 25 percent of the venture to the public in a share sale.

Planned petrochemical plant will cost about US$5 billion

Kuwait's state run Petrochemical Industries Co's (PIC) planned petrochemical plant will cost in the region of US$5 billion an official stated over the weekend.

Reuters reported that the new facility will cost US$2 billion more than the estimate given by the Kuwait Oil Ministry.

The plant will produce over one million tonnes per year of ethylene and is expected to be operational by 2015, Yousef al Atiqi, PIC deputy managing director for olefins has said.

Deadline delayed by DEWA

Dubai Electricity & Water Authority (DEWA) will give bidders two more weeks to make offers for a power plant consultancy project.

Persian Gulf states are boosting power supply to meet rising demand from growing populations while seeking investment to spur economic growth. The U.A.E., whose largest sheikhdom is Abu Dhabi, is beginning a nuclear energy program. This will be the first time Dubai has sought private investors to develop its power industry, Arabian Business reports.

The consultants will help seek bidders to build a facility capable of generating 1500 megawatts of power and turning 120 million gallons of salt water into drinking water each day.

Australia interested in Iraqi field

Also over the weekend, Arabian Oil and Gas reports that Australia has expressed and interested in a Wassit oilfield. The field in question is near al-Ahdab field, 25 km west of the provincial capital of Kut

"On Sunday, the provincial council in Wassit received a delegation comprised of representatives of the Australian Industrial Chamber of Commerce," the head of the reconstruction committee in the council, Eng. Mahdial-Zubaydi, told Aswat al-Iraq news agency.

 

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