February 2006

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Qatar Reiterates Hold On New Gas

Commitments As Price Pressures Increase

Bill Farren-Price reports from Doha.

The suspension of Qatar’s commitments to new gas development projects at the country’s giant offshore North field which became public in early 2005 was underlined on 19 February by Energy and Industry Minister 'Abd Allah al-'Attiyah. In his opening address to delegates at the MEGAS Summit in Doha, Mr 'Attiyah acknowledged that rising oil prices were expected "to accelerate the pace of natural gas industry development" as consumer countries increased imports of gas and boosted the gas share of their overall energy mix as environmental regulations became more stringent. Mr 'Attiyah pointed to the emirate’s investment in LNG which will make Qatar the largest LNG exporter in the world when exports hit 77mn tons/year in 2011. He also emphasized Qatar’s commitment to diversification – which has led to pipeline gas supplies to neighboring GCC countries through the Dolphin project and three major GTL projects which will produce 300,000 b/d by 2010, as well as gas use in downstream industry, power and desalination in the emirate itself.

OPEC-10 Oil Output Down Nearly 0.5Mn B/D In January On Sharp Drop In Iranian Exports
Oil production by the 10 OPEC member countries governed by quotas (OPEC without Iraq) fell below the suspended 28mn b/d ceiling in January to 27.69mn b/d, a drop of 490,000 b/d from December’s 28.18mn b/d, according to MEES estimates (MEES, 30 January). The decline was largely due to a 340,000 b/d fall in Iranian oil exports in the month. Total OPEC production was down 460,000 b/d to 29.27mn b/d in January after a slight recovery in Iraqi exports from the southern Basra terminal.

MEES Agenda

ENERGY FUNDAMENTALS

NEWS BY COUNTRY

ALGERIA

• Algeria Proven Hydrocarbon Reserves Estimated At 40Bn BOE, Says Meziane

• Foreign Companies Account For $4.4bn of Algeria’s Oil Exports In 2005

• Gulf Keystone Re-Evaluates Block 126a Reserves

• Egypt’s Orascom Construction Industries Plans Fertilizer Plant With Sonatrach

bahrain

• BMA Licenses Two New Islamic Banks

CASPIAN

• TCO Says Tengiz Crude Oil Production Exceeds Target

EGYPT

• EGAS And Ganoub El Wadi Invite Bids For 20 Blocks

• Petroleum Ministry Reports Two New Oil Discoveries

• Melrose Resources Brings El-Tamad Wells On-Line

• Centurion Acquires Nile Delta Properties With Purchase Of US Firm

• Egypt Forms LNG Shipping Company

• World Bank Provides $260Mn Loan For El-Tebbin 700MW Power Station

IRAN

• Kish Gas Discovery Confirmed By Vaziri-Hamaneh

• Iranian Parliament Lowers Budget Allocation For Gasoline Imports To $2.5bn

• Tehran Refinery Fire Expected To Cause Two-Week Outage

• NGL 2300 Plant Schedule Outlined By NIOC, NGL 1300 Repaired

• Iran Targets 55GW Power Capacity By End-2010, Starts Work On Tajik Plant

IRAQ

• Iraq Aims To Reduce 60% Flaring Rate, Improve NGL Recovery In Gas Sector

• Insurgency Cost Iraq $6Bn In Lost Oil Revenue In 2005

Israel

• Israel And BG Resume Talks On Gaza Marine Gas Supplies

JORDAN

• Jordanian Deputies Block Ratification Of Sonoran Energy PSA

KUWAIT

• Kuwait’s Qatar Natural Gas Import Plan Shelved For Foreseeable Future

• Baqir Is New Finance Committee Chairman

• Nadir Sultan Elected Chairman Of Ikarus Oil Industries Company

• Kuwait Outlook Raised To Positive, Says Moody’s

LEBANON

• Lebanon Reiterates Commitment To Gas-Fired Power Through LNG, Pipeline Gas

• Iran Extends $50Mn Soft Loan To Lebanon For Construction Projects

PALESTINE

• PA Faces Severe Financial Crisis

QATAR

• Oryx GTL On Track For Second Quarter Start-Up

• QP Launches Contracting Process Initiative

SAUDI ARABIA

• Rabigh Refining/Petrochemical Project Costs Jump To $10Bn

• Saudi Arabia’s Al-Kayan Petrochemical Project Costs Estimated At Over $5Bn

• Vela Orders Six VLCCs From Daewoo

• Parker Drilling To Form JV With Local Firm To Carry Out Saudi Aramco Work

SYRIA

• Syria Takes Over Operatorship Of Dair Al-Zour Gas Project

turkey

• Turkey And Egypt Sign Preliminary Gas Transport/Marketing Agreement

UAE

• Dubal/Mubadala Plan $6Bn Aluminum Project In Abu Dhabi

• Dolphin Receives Technical Bids For Two Gas Distribution Projects

• Adnoc To Build 10 CNG Service Stations

POLITICAL COMMENT

OP ED & Documents

MEES Conference Oil

March 2, 2006

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Conference Announcement:

Registration Open - 4th Maghreb & Mediterranean Oil & Gas 2006

MEES Announcement