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Keel laying of Bapco barges. (Image source: ASRY)

The Arab Shipbuilding and Repair Yard Company (ASRY), the Bahrain-based ship and rig repair yard, has recently announced the launch of the first phase of the Bapco Refining Self-Propelled Fuel Oil Bunker Barges Project

The project, scheduled for execution in the final quarter of 2024, was announced during an official launch ceremony held at the company’s headquarters in Hidd, in the presence of senior officials from both companies, led by Dr. Ahmed Al-Abri, chief executive officer of ASRY, and Bapco Refining representatives.

This strategic project comes as part of a strategic alliance between ASRY and Bapco Refining, with a view to positioning the Kingdom of Bahrain as a key maritime hub in the region. The project consists of the delivery of two self-propelled fuel oil bunker barges to one of the biggest national industrial corporations.

Extensive experience

ASRY's extensive experience and high competency in the field of marine asset optimisation, being a leading maritime repair and fabrication facility in the region, were key factors in being awarded the project. ASRY operates in four sectors – Ship Repair & Conversion, Rig Repair & Conversion, Naval Repair & Conversion, and Fabrication & Engineering – which together cover all types of vessel repair including jack-up rigs and other offshore assets, as well as fabrication of onshore and offshore industrial components.

Dr. Abdulrahman Jawahery, chief executive officer of Bapco Refining, stated, "We acknowledge the advantages of leveraging the distinguished expertise at ASRY in executing this strategic project. This approach will allow us to meet the advanced and diverse requirements of the energy sector in alignment with international standards and specifications, ensuring compliance with the dual framework of the International Maritime Organization (IMO) MARPOL agreements."

Dr. Ahmed Al-Abri, chief executive officer of ASRY, commented, “Bapco Refining’s Fuel Barges Project is one of the largest projects secured for implementation by ASRY for one of its most important national clients in the regional energy sector. Efforts are devoted to completing this project and ensuring smooth operations, where the long-standing expertise of the company will undoubtedly contribute to the project’s success and the achievement of its desired goals.”

"Our ongoing commitment to delivering high-quality work on schedule while maintaining safety reinforces our position as the preferred global yard of call for ship, rig, and naval ship repair and maintenance, along with being a destination for engineering, industrial construction, and fabrication projects.”

Up to 25% of OQEP's share capital will be offered on the MSX. (Image source: Adobe Stock)

OQ Exploration and Production (OQEP), the wholly-Government owned upstream oil and gas operator, intends to launch an initial public offering (IPO) of up to 25% of total issued share capital on the Muscat Stock Exchange

The Offering will be offered in two tranches to eligible investors in Oman and qualified institutional and other investors in a number of countries and retail investors in Oman. The subscription period is expected to commence in September 2024, on receipt of required approval from the Financial Services Authority (FSA) of the Sultanate of Oman, with the listing expected to take place in October 2024.

OQEP is Oman’s largest pure-play oil and gas exploration and production company and its only upstream oil and gas operator wholly owned by the Government of Oman. Founded in 2009, it currently ranks among the top three oil and gas producers and is one of the largest holders of oil and gas reserves in Oman. Since inception, it has witnessed significant growth, expanding its average daily production nearly 14 times, and averaging 249,000 boe/d on a working interest basis by 2023, contributing around 14% of Oman’s total oil, condensate and gas production.

Fundamental advantages

An official statement highlights that OQEP benefits from Oman’s fundamental advantages, including:
(i) strategic location in a prolific hydrocarbon province with direct access to global shipping routes and logistics hubs;
(ii) well developed oil and gas sector;
(iii) stable and highly prospective oil and gas operating environment;
(iv) the Government of Oman’s encouragement of investment in gas-intensive industries to support economic diversification and hydrocarbon value optimisation;
(v) established and competitive regulatory and fiscal framework for the hydrocarbon sector.

It also notes the company’s strong cashflows and optimal capital structure.

Ashraf Hamed Al Mamari, group CEO of OQ, said, “Today marks a significant milestone in our journey towards enhancing the value of OQ’s portfolio through strategic divestments. The intention to float OQ Exploration and Production reflects our commitment to unlocking new opportunities for growth, both for the company and for the Sultanate of Oman. OQ Exploration and Production, with its leading position in maximising Oman's natural resources, underscores our focus on sustainable development and local value creation. By empowering local communities and supporting small and medium-sized enterprises, we not only maximise local value but also contribute to the long-term economic stability of Oman.”

OQEP chief executive officer, Ahmed Al-Azkawi, added, “Since our inception in 2009, we have worked tirelessly to pursue growth opportunities and strengthen our market position. OQEP is a reliable partner for 13 reputable international companies owing to our significant growth trajectory, robust portfolio of assets, and record-breaking production of nearly 14 times higher since inception. Our strategic goals, aligned with Oman’s Vision 2040, focus on monetising the country’s hydrocarbon resources while supporting the energy transition. Additionally, stimulating the local economy is central to our sustainability initiatives, which includes developing local talent and supporting our CSI projects to increase our contributions to In-Country Value. We continue to build on our success and invite investors to be part of this unique opportunity and successful journey.”

The oil price is at its lowest level for around 14 months. (Image source: Adobe Stock)

OPEC+ members Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman have agreed to extend their additional voluntary production cuts

The eight OPEC+ member countries, which previously announced additional voluntary cuts in April and November 2023, have agreed to extend their additional voluntary production cuts of 2.2mn bpd for two months until the end of November 2024, after which these cuts will be gradually phased out on a monthly basis starting 1st December, 2024, with the flexibility to pause or reverse the adjustments as necessary.

The cuts were originally planned to be phased out from the beginning of October.

The eight countries held a virtual meeting on 5 September 2024, during which they emphasised their collective resolve to ensure full compliance with the voluntary production adjustments. The group includes Iraq and Kazakhstan, who have overproduced since January 2024, but have strongly reaffirmed their commitment to the agreement. The two over-producing countries have also committed to meet compensation schedules for any over produced volumes and to compensate for the entire overproduced volume by September 2025.

The decision to delay unwinding production cuts comes as weak demand growth, ample supply and the prospect of increased Libya supplies have put a damper on the oil price, which currently stands at around US$73/bbl, its lowest level for 14 months.

NMDC Energy vessel. (Image source: NMDC Group)

NMDC Group, a leader in engineering, procurement, construction, and marine dredging, has announced that the Initial Public Offering (IPO) of NMDC Energy was 31.3 times oversubscribed, generating AED 3.22bn (US$880mn) for the Group

The offering of 1.15 billion shares in NMDC Energy, representing 23% of the total share capital, was made available to eligible investors at AED 2.8 per share. The IPO was oversubscribed within hours of its launch on 30 August 2024. At the close of the subscription period, the Retail tranche was oversubscribed 600 times, and the Professional tranche by 16.7 times.

Unprecented interest

Yasser Zaghloul, Group CEO of NMDC, said, “The unprecedented interest we received underscores the market’s trust in NMDC Group’s ability to lead the industries of the future. With this step, we are building a legacy that goes beyond profits; it’s about sustainable growth, technological innovation, and pushing the boundaries of what’s possible in the energy sector. The future will see NMDC Energy pioneering solutions that power industries and inspire and uplift communities both regionally and globally. As we enter this next phase, I am more confident than ever that NMDC Energy will continue to set new benchmarks and deliver on our promise to drive meaningful progress for the UAE and the global stage.

Ahmed Al Dhaheri, CEO of NMDC Energy, added, “The immense investor interest in our IPO clearly demonstrates that the market understands the value and potential of NMDC Energy. Additionally, this IPO consolidates the UAE’s position a leader in supplying the world’s energy needs. As we prepare for a new phase as an ADX-listed company, we will build on this milestone by targeting organic and inorganic growth, expanding our geographical reach, as well as creating synergies that drive transformation and innovation across the business.”

The contracts are together worth around US$1bn. (Image source: Adobe Stock)

Saipem has been awarded two offshore contracts in Saudi Arabia together worth around US$1bn under its existing Long-Term Agreement with Saudi Aramco

Saipem’s scope of work under the first contract involves the engineering, procurement, construction, and installation (EPCI) of three production deck modules (PDMs), 33 km of subsea rigid pipelines with diameters of 12 inches and 16 inches, and 34 km of subsea power cables. The infrastructures will be installed in the Marjan oil and gas field.

The second contract involves the EPCI of three jackets, five PDMs (Production Deck Modules), 22 km of subsea rigid pipelines with a diameter of 16 inches, 5 km of subsea flexible pipelines, and 35 km of subsea power cables. The infrastructures will be installed in the Zuluf and Safaniyah oilfields.

For the offshore component of the two projects, Saipem will deploy its construction vessels that are operating in the region.

Fabrication will be carried out at Saipem’s Saudi fabrication yard, Saipem Taqa Al-Rushaid Fabricators Co. Ltd., with the aim of boosting the capabilities of local industry.

The award follows the award of two offshore projects in Saudi Arabia in July, under its Long-Term Agreement (LTA) with Saudi Aramco, together amounting to US$500mn and relating to the Abu Safa, Berri and Manifa fields
Saipem has a longstanding relationship with Saudi Aramco, and a strong presence in the Saudi Arabia and throughout the region.

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