SEPTEMBER 18, 2023
UAE, Saudi, Oman: Top 5 oil and gas project launches to watch out for
Despite increasing calls from climate activists, the Middle East is expected to commence over 600 projects between 2023 and 2027, according to data from GlobalData Energy.
Out of these, upstream projects would be 81, midstream would be 141, the refinery at 84, and petrochemicals would be the highest with 315 projects.
Here is a list of the top 5 oil and gas recent project launches that you need to know about.
Aramco and TotalEnergies’ $11 billion Amiral petrochemical complex in Saudi Arabia
In December 2022, Aramco and TotalEnergies took a final investment decision for the construction of a world scale petrochemical facility in Saudi Arabia. The ‘Amiral’ complex will be owned, operated, and integrated with the existing SATORP refinery located in Jubail on Saudi Arabia’s eastern coast. The investment decision is subject to customary closing conditions and approvals.
The petrochemical facility will enable SATORP to convert internally produced refinery off-gases and naphtha, as well as ethane and natural gasoline supplied by Aramco, into higher value chemicals, helping to advance Aramco’s liquids to chemicals strategy.
The project alone represents an investment of around $11 billion, of which $4 billion will be funded through equity by Aramco (62.5%) and TotalEnergies (37.5%). Its construction is scheduled to begin during the first quarter of 2023 with commercial operation targeted to start in 2027.
Oman’s second largest oil, gas project Yibal Khuff
In December 2021, the Petroleum Development Oman launched Yibal Khuff oil and gas project worth $2.6 million.
Spanning an area of 1.68 square kilometers, the project at its peak will have a capacity to produce 20,000 barrels of crude and 5 million cubic meters of gas a day.
Yibal Khuff is the first project that includes a completely qualified Omani staff who worked on the project in its various phases, starting from design until the end of operations, including 1,200 individuals in the construction works, and 200 qualified welders.
This project has achieved several significant firsts, including the first to deliver the tallest column ever fabricated for PDO in Oman. This “Made in Oman’ acid gas recovery unit absorber stands at 48 meters high, four meters in diameter, and weighs 291 tons.
Eni launched Congo Liquefied Natural Gas Project
Eni has launched its Congo LNG project to exploit the country’s Marine XII offshore gas fields to produce liquefied natural gas (LNG) for global export, particularly to Europe, while generating gas for domestic power generation.
Eni said it expects Congo LNG to be producing at its capacity of 3 million tonnes/year by 2025. The project is to be executed in two stages, according to Eni.
Stage 1 encompasses a nearshore development including Eni’s 0.6 million tonne/year Tango floating LNG (FLNG) vessel,which is expected to start production late this year; construction of a gas-pretreatment plant; installation of an additional platform; and the drilling of 12 wells.
Stage 2 foresees an expanded offshore development that includes the positioning of a second 2.4 million tonne/year capacity FLNG facility that is currently under construction; installation of eight new platforms; and the drilling of 29 wells.
Iraq’s $8.5 billion Nibras petrochemicals project
Iraq’s Nibras project is a joint venture with Royal Dutch Shell, which involves the construction of the largest petrochemical plant in the region at a cost of almost $8.5 billion.
The petrochemical plant, based in Basra, will have a production capacity of around 1.8 million tonnes per year and is expected to generate net earnings of nearly $1.4 billion annually, making it the world’s fourth-largest petrochemical complex.
Shell will own 49 percent of the project’s shares, while Iraq’s Oil and Industry Ministries will control 51 percent,.
The project was initially signed in 2015 but was delayed by cash shortages and internal conflicts. The project will allow Iraq to utilize its vast gas resources and generate additional projects in Basra, turning the country into a major petrochemical producer.
India’s Infinite Mining to launch new oil refinery in Sharjah’s Hamriyah Free Zone
India’s Infinite Mining & Energy has leased a 200,000 square feet land plot from Sharjah’s Hamriyah Free Zone Authority (HFZA) to build a multifunctional oil refinery.
The new facility will have a processing capacity of 10,000 barrels/day and an annual refining capability of up to 3.6 million barrels, HFZA said in a statement.
No details were given on the project’s cost and construction timelines.
The expansion will likely increase Infinite’s storage capacity to meet the growing demand for its services and products as it seeks to double its investments in the Sharjah-based free zone.