LNG

The Iraqi Oil and Gas Ministry said 10 of the 12 projects awarded so far in Iraq's latest licensing round have gone to Chinese companies as the Arab nation focuses on increasing natural gas output to help support growing gas-fired power needs.

Gulf Marine Services Plc, the Abu Dhabi company listed on the London Stock Exchange and which has offices in the oil and gas and LNG producing nations of the Arabian Gulf for its offshore support vessel fleet, reported solid annual profits and revenues.

QatarEnergy, the leading LNG exporter and developer of major new liquefaction projects, has celebrated the graduation of a new group of Qatari nationals who have successfully completed their academic studies and training programmes to join the workforces of QatarEnergy and other companies in the sector.

QatarEnergy said there were 89 graduates this year who will be taking up positions at the Arabian Gulf nation’s impressive list of 10 companies that have sprung from its developing of the oil and gas chain and its continuing pioneering of cleaner energy technology.

The companies are: QatarEnergy, Qatargas, North Oil Company, Oryx GTL, Qatar Petrochemical Company (QAPCO), Qatar Fertiliser Company (QAFCO), Qatar Fuel Additives Company (QAFAC), Qatar Aluminium (QATALUM), Qatar Chemical Company Ltd (Q-Chem), Qatar Fuel (Woqod) - as well as Shell Qatar.

In a speech to the graduates Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and President and Chief Executive of QatarEnergy, said the event made him proud and able to reflect on his own journey in the energy sector and the role ambition and hard work that play a role in reaching the highest ranks.

“I am pleased to congratulate you and your families on your graduation and on taking your first professional steps in the energy sector of the State of Qatar,” said Al-Kaabi.

“You have gone a long way to reach this stage in your lives, and now you stand before an important opportunity to work and earn a successful future in which you develop yourselves and put the interest of Qatar above everything,” he told the graduates.

Expansions

Al-Kaabi said Qatari energy industry graduates will be much needed as the nation embarks on projects such as the North Field East and North Field South expansion projects.

The initial expansions will raise Qatar’s LNG production capacity from 77 million tonnes per annum of LNG to 126 MTPA.

There will also be related projects to develop producing fields, petrochemicals, ammonia plants and other ventures.

“These are some of the projects that your companies are taking part in and in which many of you will find yourselves part of,” he explained.

“Therefore, you must have the ambition to reach your goals and to be the future leaders whom we can count on through your effort, sincerity, commitment and teamwork,” he added.

“Congratulations on your graduation, and I wish you all the very best,” declared Al-Kaabi.

At the end of the ceremony, the Minister and QatarEnergy chief handed certificates of appreciation to all graduates, along with symbolic gifts for outstanding graduates in their fields of specialization.

The ceremony was attended by many senior officials from QatarEnergy and energy sector companies.

NewMed Energy, a stakeholder in the largest Israeli offshore natural gas field and a likely future LNG feed-gas supplier, said it was looking more unlikely that it would proceed with the process of being listed on the London Stock Exchange through a reverse takeover of UK company Capricorn Energy.

The expected completion date of the NewMed merger with London-listed Capricorn was the first quarter of 2023.

However, Capricorn has been caught up in a dispute with a major shareholder and has put back a meeting of all shareholders to approve the deal with NewMed.

Capricorn had previously cancelled its proposed merger with UK rival Tullow Oil in favour of the combination with Israel’s NewMed, which was first announced on September 29, 2022.

There had been plans for a $1.4 billion merger between Tullow and Capricorn, which is based in Edinburgh and was formerly known as Cairn Energy.

Among its assets, NewMed holds the rights to 45 percent of the Leviathan Israeli offshore gas field with the other major shareholder in the field being Chevron Corp.

Cyprus gas field

NewMed also has the Aphrodite gas field in Cyprus's offshore economic zone waters, making it one of the biggest players in the East Mediterranean.

In the latest merger developments, Capricorn released a statement to the London Stock Exchange whereby it had decided to adjourn Capricorn's shareholder meeting called for the purpose of approving the NewMed transaction, to February 22 instead of February 1.

An alternative shareholder meeting was called at the request of one significant Capricorn shareholder, Palliser Capital (UK) Ltd., for the replacement of the serving directors of Capricorn with new directors that were proposed by Palliser and a meeting for this purpose was then scheduled to take place on February 1 instead of a meeting to approve the NewMed deal.

Members of the board of Capricorn, including the Chairman of the board and the Chief Executive, resigned immediately from the board and it was also the intention of two other directors, including the Chief Finance Officer, to resign from the board before the February 1 meeting called at the request of Palliser.

NewMed said that in view of these developments and the resignation of most of the Capricorn board members, the probability for the closing of the UK transaction had “significantly decreased”.

The Israeli company said it was continuing to examine strategic alternatives with the aim of “maximizing value” for its own shareholders.

NewMed is currently in the midst of plans to promote the expansion of the Leviathan gas field offshore Israel and the development of the Aphrodite reservoir alongside the launch of exploration and production of natural gas in other Middle East countries.

The Leviathan gas field in addition to supplying the Israeli domestic market also supplies Egypt and Jordan with gas and has existing plans to possibly supply feed gas for liquefaction at the two Egyptian LNG plants, Idku and Damietta, located east of Alexandria.

Technip Energies, the leading LNG and energy project company, said a consortium which it heads has been awarded a pre-construction services agreement (PCSA) related to the onshore facilities for the Hail and Ghasha Gas Development Project in Abu Dhabi in the United Arab Emirates.

Technip’s partners in the contract are South Korea’s Samsung Engineering and Italian firm Tecnimont SpA.

Hail & Ghasha is a conventional gas development located in shallow water in the emirate of Abu Dhabi and is operated by Abu Dhabi National Oil Company (ADNOC).

The fields lie in the Ghasha Concession block in water depth of around 328 feet and are expected to start commercial production in 2025.

“The PCSA phase follows the successful completion of an updated front-end engineering and design (FEED) for the entire development, executed by Technip Energies,” said  Technip.

Next phase

“This next phase covers early project activities for onshore facilities, such as initial detailed engineering and procurement services of critical long lead items,” explained Technip.

The PCSA scope of work also includes the preparation of “an open book cost estimate” for the project delivery of the onshore scope, which will be considered as part of the final investment decision-making process.

“We are honoured to be trusted by ADNOC to continue from the successful FEED execution to the initial activities for the onshore facilities for this important gas growth project and to prepare an open-book cost estimate for project delivery,” said Arnaud Pieton, Chief Executive of Technip Energies.

“This reinforces Technip Energies' long-standing relationship and trust developed over the last four decades with ADNOC, supported by our long-term presence in Abu Dhabi,” added Pieton.

“Together with our joint venture partners, Samsung Engineering and Tecnimont, we will utilize our global experience on mega project execution and open book estimate conversions to transparently and diligently work with ADNOC and their international concession partners to continually optimize the project and successfully meet their requirements,” declared the CEO.

The multi-billion-dollar Hail and Ghasha project is also seen as playing a vital role in meeting the UAE’s gas self-sufficiency objectives.

ADNOC’s partners in the project with a concession term of 40 years include Italy’s Eni, Germany’s Wintershall Dea and Austria’s OMV

Abu Dhabi National Oil Company, the owner of the Das Island LNG plant in the United Arab Emirates and Italian oil and gas company and LNG project developer Eni, plan to explore further opportunities to increase worldwide natural gas supply security.

SDX Energy, the UK-based oil and gas exploration, production, and development company with working interests in natural gas fields in Egypt and Morocco after a string of discoveries in 2017 and 2018, is facing a takeover battle and may have to bring more cash to the table for existing shareholders.

UK Stock Exchange-listed SDX Energy has been informed by London-headquartered Aleph Commodities Limited that it now commands over 25 percent of the share capital of the company and intends to block an all-share takeover proposed by Canadian company Tenaz Energy Corp. of Calgary, Alberta.

“Through public disclosures and communication with SDX, we have been informed that a shareholder intends to vote against the proposed Scheme of Arrangement to amalgamate Tenaz and SDX,” said a Tenaz Energy statement.

SDX's portfolio includes high impact exploration opportunities in both Egypt and Morocco as well as producing assets in Morocco’s Gharb Basin and the Egyptian Nile Delta.

Natural gas assets in Egypt are the focus of possible LNG or pipeline gas exports and in the case of Morocco domestic gas projects.

Tenaz Energy explained that the takeover required, among other things, that 75 percent of the shares voted by SDX shareholders support the combination for it to become effective.

Strategy change

The Canadian company has now said that it reserved the right to elect to implement the transaction by way of a takeover offer in compliance with the UK Takeover Code and through a co-operation agreement with SDX.

“We are evaluating all available options with respect to the transaction and will provide a further update when appropriate,” stated Tenaz Energy.

A statement from Aleph Commodities by way of explanation made several points on behalf of itself and other parties, who together hold 25.65 percent of the shares.

It stated that the group of shareholders led by Aleph Commodities intended to vote against the recommended all-share combination.

“The shareholder meetings relating to the Scheme of Arrangement are due to be held on 29 July 2022,” noted Aleph Commodities.

“Aleph welcomes the opportunity to engage with management and the Board of Directors to explore opportunities to provide financial, commercial and technical support to SDX to ensure the growth of the company and its production base, with minimal dilution,” it stated

SDX Energy has a working interest in two producing assets in Egypt, a 36.9 percent operated interest in the South Disouq and Ibn Yunus gas fields and a 67.0 percent operated interest in the Ibn Yunus North gas field in the Nile Delta.

It additionally holds a 50 percent non-operated interest in the West Gharib concession, which is located onshore in Egypt’s Eastern Desert, adjacent to the Gulf of Suez.

In Morocco, SDX has a 75 percent working interest in four development and production concessions, all situated in the Gharb Basin.

The producing assets in Morocco are characterised by “attractive gas prices and exceptionally low operating” costs.

Air Products, the LNG equipment-maker and industrial gas group with an increasing presence in the Middle East, has acquired the industrial gases businesses in the United Arab Emirates and in Bahrain from French gases company Air Liquide.

Seapeak LLC, formerly known as Teekay LNG Partners and with interests in 47 LNG carriers, 20 mid-size liquefied petroleum gas carriers and seven multi-gas vessels, has formally taken the name of Seapeak and implemented several corporate changes.

The Teekay partnership in January 2022 officially became part of the US investment fund firm, Stonepeak Infrastructure Partners, and the renaming process to Seapeak began.

Seapeak’s ownership interests in these 74 vessels range from 20 percent to 100 percent and the company also owns a 30 percent interest in the Bahrain LNG regasification terminal in the Arabian Gulf.

The company said that effective from February 25 Teekay was converted from a limited partnership formed under the laws of the Republic of the Marshall Islands into a Marshall Island limited liability company.

“Accordingly, all of the rights and liabilities of Teekay LNG in its prior partnership form are automatically vested in Seapeak,” said a statement.

“Concurrent with the conversion, Teekay has changed its name from Teekay LNG Partners LP to Seapeak,” it added.

The changes extend to the stock exchange ticker symbols and those for outstanding securities.

Teekay’s New York Stock Exchange preferred units ticker changes from TGP to SEAL.

Oslo-listed bonds

Effective from March 1, 2022, the ticker symbols for Seapeak’s Norwegian Kroner-denominated bonds listed on the Oslo Børs will be changed from TKLNG05, TKLNG06 and TKLNG07 to SPK05, SPK06 and SPK07 respectively.

As regards the NYSE common units, these were delisted in January 2022.

Teekay had started its LNG business in 2004 and publicly listed as Teekay LNG Partners on the NYSE in 2005.

Over the next 18 years, the shipping line built an LNG franchise into the world’s third-largest independent LNG carrier owner and operator.

It also expanded the business into the LPG carriers sector and completed several highly specialized and complex projects.

These included building six Arc7 ice-breaker LNG carrier for the Russian Yamal LNG project and it became part of the joint venture in Bahrain to build and deliver the Arab kingdom’s regasification terminal.

Eni, the Italian energy company with exploration success in the African continent supplying feed gas for LNG projects from Egypt to Mozambique, has been awarded five new licences by the Egyptian Ministry of Petroleum.