The UAE will host Expo 2020!
  • Arabic
Supported by the UAE National Media Council
We are in the process of developing and improving our website, and we invite you to participate in our brief survey to measure the level of your satisfaction
Satisfaction Survey For UAE Interact Website
رغبة منا بالتعرف على مستوى رضاكم عن موقعنا وبهدف تطويره وتحسينه، فقد قمنا بتصميم استبيان سريع لقياس مدى الرضا عن موقع دولة الإمارات العربية المتحدة روعي في تصميم الاستبيان أن يكون قصيرا وسريعا كي لا نطيل عليكم، وعليه نرجو منكم التكرم باستكماله عن طريق الرابط التالي
استبيان رضا المتعاملين عن موقع دولة الإمارات العربية المتحدة

Oil-Accession day feature

posted on 01/08/2001: 2166 views


The achievements accomplished in oil industry in Abu Dhabi in years 2000-2001 reflect the expansion of activities of the Abu Dhabi National Oil Company, ADNOC, and its group of companies and part of its continuous keen desire to modernise the oil and gas industries in the country. Abu Dhabi Gas Liquefaction Limited (Adgas) will start exporting LNG to Dabhol Power Company of India (DPC) at the end of next year.



The company will export LNG at an annual contractual rate of 480,000 tonnes for a 20-year period in accordance with the conditions of the agreement signed with US major Enron, which owns a majority stake in DPC, said Rashid Saif Al Jarwan, general manager of Adgas. The company posted good profits in 2000 due to higher sales, and this demonstrated its commitment to the UAE economy shareholders, Al Jarwan said. +Another achievement in 2000 was the successful conclusion of price negotiations with Tepco. In order to continue the Adgas-Tepco commercial relationship, both parties agreed on a new price formula for 1998-2004.



"The company achieved excellent performance in all areas of business, which included a 100-million-tonne product exports since inception from Das Island. The company produced 5.2 million tonnes of LNG in line with the marketing plan to meet Tepco's requirements," he said. Jarwan said Adgas sold eight LNG cargoes to customers in Spain, the US and South Korea using its dedicated LNG carriers managed by the National Gas Shipping Company (NGSCO). Sheikh Hamdan bin Zayed Al Nahyan, Minister of State for Foreign Affairs, stressed the significance of the project of Dolphin for Investment in the field of Oil and Gas between the UAE and Qatar. Sheikh Hamdan said that the useful strategic project for the two countries will strengthen relations and joint interests between Qatar and UAE.



On March 13, 2001, Qatar Petroleum, QP, representing the government of Qatar, and the United Arab Emirates Offsets Group, UOG, representing the government of the UAE, signed a detailed commercial term sheet agreement for the Dolphin gas initiative setting out their mutual understanding on commercial terms of a production sharing agreement, PDA . The agreement signed in Doha by Abdullah bin Hamad Al Attiya Minister of Energy, Industry, Electricity & Water of the state of Qatar and chairman of QP's board of directors, and Ahmed Ali AL Sayegh, a member of UOG's board of directors marks the beginning of a new area of economic co-operation between Qatar and the UAE.



The Qatari Minister said that The Dolphin project will bring economic benefits to both Qatar and the UAE and lead to greater integration and co-operation among the Gulf Co-operation Council, GCC, states, that all our leaders aspire to achieve +QP is very pleased to play a pivotal role in this first export oriented pipeline project in the Middle East, which will pave the way for the creation of a GCC Gas grid, under consideration for a number of years, starting from Qatar.+ Attiyah said. In return Al Sayegh said that a deal of this size takes a long time to come to fruition, adding that it would not have been possible without the support of the two countries' leadership.



The Dolphin project entails the development of upstream facilities for the production of gas from the Khuff fromation in Qatar's north field, its transportation to a gas gathering and processing plants at Ras Laffan to strip out condensate, Ethane, Sulphur, and Liquefied Petroleum AGS (LPG) from the wet gas. Up to 2,000 million cubic feet a day, MCF, of Lean, Sweet gas is delivered through a 350-KM sub-sea pipeline to Taweelah in Abu Dhabi and Jebel Ali in Dubai.



The UAE Offsets Group, UOG, has set up a new company to supervise the development of the Dolphin gas initiative. The new company, registered in Jersey, in partnership with TotalFinaElf and Enron Corp, will oversee the development of the multi- billion dollar Dolphin gas project of the UOG. The UOG holds a 51 per cent stake in the new company and the balance is shared equally by TotalFinaElf of France and Enron Corp of the U.S. Dolphin gas project moved another step forward when Dolphin Energy Limited (DEL) invited international, regional and local companies to prequalify for five separate contracts for the Dolphin gas project.



The move followed the establishment of a technical project team to oversee the implementation of the first cross-border gas pipeline project in the Middle East. Pre-qualification invitations were to be issued from 19-23 May. Engineering and construction management firms would be given two weeks to submit their pre-qualification statements for each contract after the date of the official announcement. The Dolphin project is moving full steam ahead after the signing on March 14 of a detailed commercial term sheet agreement in Doha between the UAE Offsets Group (UOG) and Qatar Petroleum (QP), the company said.



The agreement set out the commercial terms of a development and production sharing agreement (DPSA), which the two parties are aiming to sign by the end of the third quarter of 2001. The project involves the development of upstream facilities for the production of gas from the Khuff formation in Qatar's North Field, its transportation to a gas gathering and processing plant at Ras Laffan, and the supply of 2 billion cubic feet a day (bcf/d) of lean, sweat gas through a 350-kilometre sub-sea pipeline to Taweelah in Abu Dhabi, and Jebel Ali in Dubai, in its $3.5 billion-$4 billion first phase.



In a surprise move, US oil major Enron Corp. pulled out of a project to deliver Qatari gas to the United Arab Emirates (UAE), the partners in the multi-billion-dollar venture announced on May 21, 2001. State-run UAE Offsets Group (UOG) said at a press conference in Abu Dhabi that Enron had agreed to transfer its 24.5 percent stake in the Dolphin Energy Project (DEL) to UOG. UOG will own 75.5 percent of DEL which was set up in July 2000 to implement the gas project, while France's TotalFinaElf continues to hold the remaining 24.5 percent. UOG said it would sell its extra equity.



"The project has evolved into a strong upstream and gas transportation and delivery project. Enron is not an upstream company," the managing director of Enron Middle East said. DEL's chairman Ahmad Ali al-Sayegh said new partners would be brought into the venture to transport two billion cubic feet per day (60 million cubic metres) of Qatari natural gas by undersea pipeline to the UAE and on to Oman. +All international energy companies working in the Gulf are interested and we (DEL) are contacting them formally from tomorrow,+ said Sayegh. Patrick Rambaud, a TotalFinaElf vice president, said his company wanted to increase its own equity in DEL. "This project fits perfectly with our strategy for long-term presence in these countries," he said.



Enron's role was to build the 350-kilometre (220-mile) pipeline under the Gulf between Qatar and Abu Dhabi. In the field of oil refining, the Abu Dhabi National Oil Company, ADNOC is currently studying the possibility of revamping its Hydrocracking Complex in Ruwais Refinery through its own Takreer company (Abu Dhabi Oil Refining Company. Takreer has recently awarded a feasibility study to Universal Oil Products (UOP) to investigate the possibility of increasing the capacity of the Hydrocracker. UOP is the process licensor of the Hydrocracking technology. The study is planned to be completed by the middle of this year.



The actual implementation of the revamp project will depend upon the outcome of the study. Hydrocracking technology is utilised to upgrade low value vacuum gas oils to high value products such as LPG, naptha, jet fuel and gas oil. Due to the process chemistry involved, the products are high quality and low in contaminants. The Hydrocracking complex at Ruwais refinery consists of vacuum distillation, hydrogen production, and HC Unibon, sour water stripping, H2S removal and sulphur recovery units. The additional increase in capacity would increase the refining margins and the revenue of Takreer's refining business.



The purpose of the revamp study is to provide Takreer with the information necessary to determine the economic feasibility of the project. It will review the adequacy of the existing facilities, identify areas of improvements, carry out optimisation of possible options and recommend a solution to meet the desired objectives. Takreer (Abu Dhabi Oil Refining Company) is studying the possibility of revamping its Hydrocracking Complex in Ruwais Refinery. Takreer has recently awarded a feasibility study to Universal Oil Products (UOP) to investigate the possibility of increasing the capacity of the Hydrocracker. UOP is the process licensor of the Hydrocracking technology.



The study is planned to be completed by the middle of this year. The actual implementation of the revamp project will depend upon the outcome of the study. Hydrocracking technology is utilised to upgrade low value vacuum gas oils to high value products such as LPG, naptha, jet fuel and gas oil. Due to the process chemistry involved, the products are high quality and low in contaminants. With its vision to become a trend setter in the refining business, Takreer (Abu Dhabi Oil Refining Company) is implementing a phased programme of investments in the refining business and a number of projects have been included in the programme.



The programme includes the Central Environment Protection Facilities (CEPF), the GUP Expansion project, sulphur handling expansion project, new drinking water pipeline project, unleaded gasoline and low sulphur gas oil project and base oil refinery project. The CEPF project has been transferred to Takreer main projects division for implementation. The project will be located at Ruwais and will facilitate storage, segregation, treatment and disposal of hazardous wastes generated by ADNOC Group of Companies and independent oil and gas operators.



The project is expected to commence in the third quarter of 2001 and is anticipated for completion at the end of 2003. The GUP expansion project involves a combined cycle power plant with a capacity of 500 megawatts, including four gas turbine generators and two desalination units to provide power, steam, potable water and various utilities to the Ruwais industrial complex and other consumers in the Ruwais area. GUP will be connected to the 22,000 volts ADWEA grid at Ruwais to exchange electrical power. Takreer will hence be able to provide ADWEA with a peak of 300-megawatt electric power. Interconnection to ADWEA grid will be completed by August 2001.



The second phase of the sulphur handling expansion project involves expanding Ruwais sulphur handling installed capacity of terminal from 4,250 t/ day to 7,650 t/day, to handle increased sulphur production from OGD II and EUM projects through the installation of four new granulation units, revamping of ship loading system, conveying systems and other associated facilities. The new drinking water pipeline project that includes installation of a 17 km, 20 inch pipeline from GUP Ruwais to Ruwais housing complex has been completed. With regard to the production of unleaded gasoline and low sulphur gas oil project, the EPC bid package is likely to be ready by June 2001 for selection of EPC contractor on competitive bidding basis.



Contracts for the lube base oil production facilities at Ruwais refinery are likely to be awarded in April and the project management consultant has been mobilised. The project involves the installation of 300,000 tons per annum of lube base oil production facilities at Ruwais refinery. As part of its keen desire to encourage national cadres to enter the field of oil and Gas industries, Abu Dhabi National Oil Company (ADNOC) has announced the establishment of the Petroleum Institute in Abu Dhabi.



The institute has been established under the under the visionary leadership of President H.H. Sheikh Zayed bin Sultan Al Nahyan and at the directions of H.H. Sheikh Khalifa bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Supreme Petroleum Council. The Law No. 9 issued by Sheikh Khalifa, establishing the Petroleum Institute, provides for an independent legal entity that will bring together the best from education and industry to create a world class regional centre in the fields of engineering, applied science and research.



A Governing Council will direct the business and affairs of the Petroleum Institute, whose board members will be approved by the Supreme Council. International industry partners BP, JODCO, Shell and TotalFinaElf have committed to partner ADNOC in this pioneering venture. Work has already started with the Colorado School of Mines (CSM), which will provide academic leadership for the Petroleum Institute in terms of programme and curriculum design and mechanisms for achieving accreditation.



Founded in 1874, CSM is a world renowned public US Research University devoted to the highest standards of engineering education and applied science and has a special focus on energy and natural resource technologies. CSM was selected to lead this project from among a number of prestigious universities located around the world. The first intake of students will be in September this year. The students will follow a foundation programme designed to meet the rigorous entry requirements for the Freshman Year.



Initially, there will be five under- graduate programmes in Chemical, Petroleum and Mechanical Engineering, Instrumentation and Control Engineering and Petroleum Geoscience Engineering. The curriculum will not only focus on technical excellence but also on developing the whole person, ready to meet the complex business and professional challenges of the new century.



The Petroleum Institute will provide an opportunity for the young generation to follow programmes of the highest international standard, while maintaining their cultural and social links at home. Following the establishment of the undergraduate programmes, the Petroleum Institute will develop a postgraduate capability directly linked to applied research and development for the region. It also intends to offer continuing education in support of professional lifelong learning for employees in the petroleum sector. The Institute intends to be recognised in the world community as a first class regional centre of learning, committed to the stewardship of the earth and its precious natural resources. (The Emirates News Agency, WAM)

RELATED ARTICLES

11 August 2001 ACCESSION DAY FEATURE - SPORTS IN UAE
31 July 2001 Accession Special Report – Feature on UAE Oil
30 July 2001 Accession Day Special Report: AD Municipality: driving force for progress
29 July 2001 Agricultural revolution bears testimony to Abu Dhabi’s progress – Accession Day Special Report
28 July 2001 Accession Day Special Report: Zayed's early life and ideology


Most Read