AROUND THE GULF
Latest developments across the region
Weatherford International completed the sale of its Precision Drilling Services Saudi Arabia (“PDSSA”) land drilling operations for $92.5mn in cash.
This is part of the company’s $287.5mn deal with ADES International to sell land drilling rig operations in Algeria, Kuwait and Saudi Arabia as well as two idle land rigs in Iraq. This includes 31 land drilling rigs, among other assets.
Kuwait Petroleum Corporation (KPC) has agreed to renew its contract with Lebanon to supply the country’s state electricity company, Electricite du Liban, according to Kuwait News Agency, which cited an unnamed Kuwaiti official. The country has supplied Lebanon with gas oil since inking a memorandum of understanding in 2005 and will provide gas oil at international market prices.
“What is happening in the US in the aftermath of the shale revolution will also happen here,” Bahrain’s oil minister said, referring to tight oil reserves in the country. The shale oil revolution has made available lighter oil, which presents a fresh set of challenges to the industry, he said. Those challenges will come to the region as major oil companies have started moving towards renewables.
Oman inked $65mn exploration deals with Occidental Oman (OO) and Oman Oil company. OO will invest a total $20mn into Block 51 across two phases, including surveys as well as drilling five wells. Oman Oil Company Exploration and Production in a joint venture with OO will invest $32mn into Block 65 over two phases of development including drilling nine wells and conducting surveys.
The Abu Dhabi Government and ADNOC awarded Wintershall Holding a 10% stake in the Ghasha ultra-sour gas mega-project. The Ghasha concession consists of Hail, Ghasha, Dalma and other offshore sour gas fields, including Nasr, SARB and Mubarraz. The concession agreement has a term of 40 years. Wintershall joins Italy’s Eni (25% stake) as partners with ADNOC in the project.
Weir Oil & Gas Dubai signed a
$4mn contract in Iraq with a major IOC to provide workshop services, machine shop services, emergency manufacturing and engineering support to assist the organisation’s well operations.
The company said that deciding factors included “positive past and existing contract performance with the international oil company” and “local content,” among others.