Qatar­gas starts up Laf­fan Re­fin­ery 2

Kuwait Times - - BUSINESS -

Qatar­gas, the world’s largest LNG pro­ducer, said yes­ter­day it has started com­mer­cial op­er­a­tions at the Laf­fan Re­fin­ery 2 con­den­sate split­ter, ac­cord­ing to a state­ment. The re­fin­ery, prior to its ex­pan­sion, had a ca­pac­ity of 146,000 bar­rels per day (bpd). Laf­fan 2 will add an ad­di­tional 146,000, bring­ing its to­tal ca­pac­ity to 292,000 bpd. The share­hold­ers of the Laf­fan Re­fin­ery are Qatar Pe­tro­leum, ExxonMo­bil, To­tal, Idemitsu, Cosmo, Mit­sui and Marubeni, the state­ment said.

Al­ge­ria out­put

Al­ge­ria’s Sona­trach will drill 290 wells in 2017 in com­par­i­son with 265 in 2016, the head of the oil and gas gi­ant’s drilling divi­sion told Reuters late on Fri­day. OPEC mem­ber Al­ge­ria has seen a slow rise in en­ergy out­put this year af­ter years of en­ergy stag­na­tion, helped in part by in­creased pro­duc­tion at ex­ist­ing fields like Hassi Mes­saoud and new gas fields com­ing on­line in its south­ern Sahara re­gion.

The North African coun­try has strug­gled to draw in for­eign en­ergy com­pa­nies to help it to ex­plore new fields, its ef­forts un­der­mined by low global oil prices and what many in­vestors see as tough con­tract terms and op­er­at­ing con­di­tions. “Of the 290 wells, 190 will be for pro­duc­tion and 100 for ex­plo­ration,” the head of Sona­trach’s drilling divi­sion Khelil Kor­tobi told Reuters in an in­ter­view at Hassi Mes­saoud, ex­plain­ing next year’s drilling pro­gram.

Hassi Mes­saoud, Al­ge­ria’s big­gest oil field, pro­duces more than 400,000 bar­rels per day. Oil out­put is ex­pected to reach 69 mil­lion tons of oil equiv­a­lent in 2016, against 67 mil­lion tons last year, while gas pro­duc­tion will rise to 132.2 bil­lion cu­bic me­ters (bcm) from 128.3 bcm in 2015 and 130.9 bcm in 2014, a Sona­trach re­port showed ear­lier this year.

Like other pro­duc­ers, Al­ge­ria has been hit by the global oil price crash and is fo­cus­ing on boost­ing pro­duc­tion to al­le­vi­ate pres­sure on the govern­ment bud­get. Around 97 per­cent of Al­ge­ria’s rev­enues are from oil and gas.

“Our key ob­jec­tive is to rise to­tal out­put by 20 per­cent by 2020,” Kor­tobi said. Kor­tobi said Sona­trach has 100 drilling rigs, with 30 per­cent of the equip­ment be­long­ing to for­eign firms in­clud­ing China’s Sinopec and Great­wall, In­dia’s John En­ergy and WDI. A ma­jor sup­plier of gas to the Euro­pean mar­ket, Al­ge­ria was in talks ear­lier this year with en­ergy com­pa­nies and Euro­pean Union of­fi­cials to ex­plore ways Al­ge­ria can adapt to more com­pet­i­tive mar­kets and at­tract in­vest­ment.

Kuwait oil price

The price of Kuwaiti oil was up 24 cents Fri­day to $50.31 per bar­rel (pb), com­pared to $50.07 pb a day ear­lier, said the Kuwait Pe­tro­leum Cor­po­ra­tion (KPC) yes­ter­day. On the global level, prices saw slight change as the mar­ket is wait­ing to see how OPEC and other ma­jor pro­duc­ers would man­age the planned out­put cuts of 1.8 mil­lion bar­rels as of Jan­uary 1.

The Brent crude was up 11 cents to $54.16 pb, the West Texas In­ter­me­di­ate fol­lowed suit with 7 cents up to $53.02 pb. Late in Novem­ber, OPEC mem­bers con­cluded a deal in Vi­enna to cut pro­duc­tion by around 1.2 mil­lion bar­rels per day (bpd), or over 3 per­cent, to 32.5 mil­lion bpd NonOPEC pro­duc­ers vol­un­tar­ily de­cided to re­duce out­put by 600,000 bar­rels per day. Rus­sia alone will cut 300,000 bar­rels daily. — KUNA

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