UAE energy companies are teaming up with oil and gas giants to form ventures, capitalise on investing opportunities and gain a larger presence in overseas energy markets.
Shell, for example, in April was chosen by the Abu Dhabi National Oil Company (Adnoc) to participate in a 30-year joint venture to develop the major Bab sour gas reservoirs in the emirate of Abu Dhabi.
Shell will hold a 40 per cent interest, with Adnoc holding 60 per cent.
The Bab sour gas reservoirs are 150km south-west of Abu Dhabi city.
"Shell is honoured to have been selected by Adnoc to develop the Bab sour gas reservoirs," says Peter Voser, the chief executive of Shell.
"We have more than 60 years' experience of safe and successful sour gasfield development globally and we will apply this experience, along with our leading research and development, and technology expertise, to the development of the Bab resource."
The gas is expected to supply the local market in the UAE.
"We value our long and successful partnership with Adnoc, and look forward to continuing to play a role in helping the United Arab Emirates meet its energy needs," Mr Voser says.
Shell plans to work closely with Adnoc to enhance the technical expertise of its workforce through effective knowledge transfer.
Meanwhile, Abu Dhabi National Energy Company, known as Taqa, completed the acquisition of UK North Sea oil and gas assets from the oil giant BP on June 1.
Taqa purchased stakes in three fields in UK waters from BP for $1bn in November.
The price does not include future payments dependent on oil prices and production. BP expects this to reach about US$250 million in additional payments in the future.
The move is expected to add 20,000 barrels of oil equivalent per day to Taqa's North Sea production, a 50 per cent increase. This nearly doubles the company's reserves in the region.
"We are delighted [with] this acquisition, which extends the average life of our UK reserves and opens up a bright future for our North Sea business," says Carl Sheldon, the chief executive at Taqa.
"This investment is a great strategic fit for Taqa."
Taqa now has interests in the Harding, Morrone and Maclure fields. The transaction has also increased Taqa's interests in the Brae area, the Sage gas pipeline and Forties-Brae and Forties-Braemar oil pipelines.
The sale has value for BP as well, particularly as it scales back its balance sheet in preparation next year to face a trial over civil fines in the United States relating to the Macondo oil well blow-out in the Gulf of Mexico in 2010.
"This transaction is in line with BP's strategy to focus on a smaller number of higher-value assets with long-term growth potential," says Bob Dudley, the chief executive of the British energy giant.
"It will also continue the simplification of our portfolio with a further reduction of operated infrastructure and wells."
Elsewhere in the Middle East, Shell has reportedly been in negotiations with Saudi Arabian officials for a natural gas project in the Kidan field of the Rub Al Khali desert.
Shell is the lead operator of the Majnoon oilfield in Iraq, with a 45 per cent interest. Malaysia's Petronas holds a 30 per cent share, with the Iraqi government holding the remaining interest.
Majnoon, one of Iraq's largest oilfields, could potentially reach production of 175,000 barrels per day by the end of this year.
Shell also embarked on a $17 billion joint venture with Mitsubishi and Iraq's South Gas Company in May. The venture is capturing about 400 cubic feet of associated gas per day, with the potential of 2 billion cubic feet per day, according to a Shell press release.
Shell has a 44 per cent interest, with Mitsubishi taking a 5 per cent interest and South Gas having a 51 per cent interest.
business@thenational.ae
MATCH INFO
Liverpool 4 (Salah (pen 4, 33', & pen 88', Van Dijk (20')
Leeds United 3 (Harrison 12', Bamford 30', Klich 66')
Man of the match Mohamed Salah (Liverpool)
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
If you go
The flights
Emirates flies from Dubai to Seattle from Dh5,555 return, including taxes. Portland is a 260 km drive from Seattle and Emirates offers codeshare flights to Portland with its partner Alaska Airlines.
The car
Hertz (www.hertz.ae) offers compact car rental from about $300 per week, including taxes. Emirates Skywards members can earn points on their car hire through Hertz.
Parks and accommodation
For information on Crater Lake National Park, visit www.nps.gov/crla/index.htm . Because of the altitude, large parts of the park are closed in winter due to snow. While the park’s summer season is May 22-October 31, typically, the full loop of the Rim Drive is only possible from late July until the end of October. Entry costs $25 per car for a day. For accommodation, see www.travelcraterlake.com. For information on Umpqua Hot Springs, see www.fs.usda.gov and https://soakoregon.com/umpqua-hot-springs/. For Bend, see https://www.visitbend.com/.
A new relationship with the old country
Treaty of Friendship between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates
The United kingdom of Great Britain and Northern Ireland and the United Arab Emirates; Considering that the United Arab Emirates has assumed full responsibility as a sovereign and independent State; Determined that the long-standing and traditional relations of close friendship and cooperation between their peoples shall continue; Desiring to give expression to this intention in the form of a Treaty Friendship; Have agreed as follows:
ARTICLE 1 The relations between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates shall be governed by a spirit of close friendship. In recognition of this, the Contracting Parties, conscious of their common interest in the peace and stability of the region, shall: (a) consult together on matters of mutual concern in time of need; (b) settle all their disputes by peaceful means in conformity with the provisions of the Charter of the United Nations.
ARTICLE 2 The Contracting Parties shall encourage education, scientific and cultural cooperation between the two States in accordance with arrangements to be agreed. Such arrangements shall cover among other things: (a) the promotion of mutual understanding of their respective cultures, civilisations and languages, the promotion of contacts among professional bodies, universities and cultural institutions; (c) the encouragement of technical, scientific and cultural exchanges.
ARTICLE 3 The Contracting Parties shall maintain the close relationship already existing between them in the field of trade and commerce. Representatives of the Contracting Parties shall meet from time to time to consider means by which such relations can be further developed and strengthened, including the possibility of concluding treaties or agreements on matters of mutual concern.
ARTICLE 4 This Treaty shall enter into force on today’s date and shall remain in force for a period of ten years. Unless twelve months before the expiry of the said period of ten years either Contracting Party shall have given notice to the other of its intention to terminate the Treaty, this Treaty shall remain in force thereafter until the expiry of twelve months from the date on which notice of such intention is given.
IN WITNESS WHEREOF the undersigned have signed this Treaty.
DONE in duplicate at Dubai the second day of December 1971AD, corresponding to the fifteenth day of Shawwal 1391H, in the English and Arabic languages, both texts being equally authoritative.
Signed
Geoffrey Arthur Sheikh Zayed
Polarised public
31% in UK say BBC is biased to left-wing views
19% in UK say BBC is biased to right-wing views
19% in UK say BBC is not biased at all
Source: YouGov
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
The%20specs
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