DOCSLIB.ORG

Petroleum Argus Energy, Investment and Politics

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Petroleum Argus Energy, Investment and Politics Petroleum Argus Energy, investment and politics Volume XLVIII, 4, 26 January 2018 Fractured world EDITORIAL: China and the US’ US president Donald Trump has decided to impose tariffs on imported solar diverging energy pathways make panels, highlighting the divergent energy pathways envisaged by the world’s investment decisions more dif- largest energy users. China plans to become a global leader in renewable energy ficult for oil and gas producers technology at home and abroad, as it reduces its dependence on domestic coal. But the US aims to become a net energy exporter, as it exploits its shale reserves to reinforce its position as the world’s biggest oil and natural gas producer. Investment in renewable energy could soon rival upstream spending on oil and gas. Global clean energy investment — mainly solar and wind power — reached $334bn last year, consultancy Bloomberg New Energy Finance says. This was around three-quarters of the amount spent on upstream oil and gas, after the oil price slump in 2014-16 spurred an unprecedented decline in investment. China’s investment in clean energy is now at parity with US upstream oil and gas spending. China leads the world in clean energy investment, spending $133bn, or 40pc of the global total, in 2017. A surge in solar power investment accounted for two-thirds of the country’s clean energy total last year. US upstream spending tumbled by 40pc to just $81bn in 2015-16, the IEA says. Higher oil prices are spurring a second year of revived US upstream investment, but China’s ambitious spending plans for clean energy are expected to keep pace. Energy companies face a dilemma as they try to make investment decisions. New technology is transforming energy supply and demand, giving consumers more control and choice. But the rate of change is uncertain and energy infra- structure is designed to last, perpetuating current patterns. “Some facts are stubborn in the absence of government policies driving change,” IEA chief economist Fatih Birol recently told the World Economic Forum in Davos, Switzer- land. “The share of fossil fuels was 81pc 30 years ago. Many things have changed in technology and the share is still 81pc today.” Some embrace change. French energy firm Engie last year sold upstream LNG assets to Total. It plans to focus on low-carbon electricity production, gas infrastructure and downstream energy. “New technology is distributed,” Engie chief executive Isabelle Kocher told a Davos panel. “Consumers become ‘prosum- CONTENTS ers’, producing part of the energy themselves.” The European majors are taking tentative steps in the same direction, with small but growing investments in Aramco IPO in uncharted territory 2 renewables and low-carbon technology. West Africa reboots exploration 3 Saudi Arabia seeks ‘permanency’ 4 Boom and bust Russia mulls deal future 5 But others are concerned that under-investment in oil and gas will soon trigger Service firms eye exciting 2018 6 another damaging boom and bust cycle for the industry. “Demand is growing IMF tweaks growth forecast 7 strongly, many fields are declining,” Birol says. “How are we going to meet the peak in demand if we are not investing today?” US blending mandate battle rages 8 Cost is key. Rapidly falling costs will make new energy technologies more India dithers on price hikes 9 affordable, as manufacturers innovate and scale up output, giving consumers Venezuela’s isolation increases 10 control over investment decisions and accelerating change. But suppliers of Egypt faces watershed year 11 existing capital-intensive energy sources, such as oil and gas, still face critical Gasoline shortfall shakes Nigeria 12 investment decisions. Without clearer policy signals from governments, energy Market overview 15 companies will have to keep their costs down and their options open. Copyright © 2018 Argus Media group Petroleum Argus 26 January 2018 SAUDI ARABIA Aramco IPO still in uncharted territory Oil minister Khalid al-Falih Market forces will determine the value of state-owned Saudi Aramco for the refuses to provide a date for purpose of its planned initial public offering (IPO), Saudi Arabian oil minister the state-owned company’s Khalid al-Falih says. planned initial public offering Crown price Mohammad bin Salman and “everyone else involved realise that this will be a market-determined process”, al-Falih told the World Economic Forum (WEF) in Davos, Switzerland, on 24 January. Prince Mohammad is the driving force behind Riyadh’s Vision 2030 economic diversification plan, of which Aramco’s partial privatisation forms a central part. “We cannot set Aramco’s share price,” al-Falih says. “Every IPO is a process of discovery.” Proposed figures for the company’s valuation are “just speculation”. Aramco’s concession to manage and process most of Saudi Arabia’s oil is the main factor that will determine the firm’s value, al-Falih says. He estimates the country’s oil reserves at 261bn bl, and its natural gas deposits at several hundred trillion ft³. Riyadh is interested in “optimising the value” of the resources, al-Falih says. “I predict that these estimates will rise in time. This will hopefully be taken into account — against some ill-advised commentary about oil nearing its end.” Prince Mohammad expects Aramco’s valuation to be at least $2 trillion — the government would generate around $100bn through its sale of a 5pc stake. The shares were originally scheduled to float on Saudi Arabia’s Tadawul stock exchange and 2-3 other international platforms in the second half of this year. But al-Falih refuses to provide a date for the IPO, saying the firm will be listed “when the time is right” — although it is ready “from a corporate standpoint”. The non-elected Shura advisory council has asked securities regulator the CMA to study the effect of partially listing Aramco on Tadawul. The government has converted Aramco into a joint stock company, replacing its previous bylaws with new ones that enable private-sector investors to hold shares. But full control of the country’s oil and gas reserves remains in Riyadh’s hands under the new structure. The government is “solely responsible” for making final decisions on production and sustainable capacity. And the new bylaws allow the oil ministry to formulate strategies and national policies covering the oil and gas sector. Full control of the country’s Aramco’s partial privatisation is the centrepiece of a wider government plan oil and gas reserves remains to offload state assets, as Riyadh seeks to diversify the economy away from its in Riyadh’s hands under the overwhelming dependence on oil. The government wants the private sector to be company’s new structure the main source of new job creation. Proceeds from Aramco’s IPO will be trans- ferred to the PIF sovereign wealth fund, which will act as a catalyst for domestic and foreign private-sector investment in the country. Riyadh wants small and medium firms to account for a third of the economy by 2030, compared with 20pc last year, commerce minister Majid al-Qasabi says. Scare tactics The arrests of more than 200 princes and high-net worth individuals in November as part of a corruption crackdown initially scared Saudi stock market investors. But the dip was only temporary, as people realised that the campaign was intended to create a level playing field, finance minister Mohammed al-Jadaan says. Riyadh has so far recovered only part of the $100bn that attorney-general Saud al-Mojeb said had been misappropriated, and much of what can be retrieved will be in assets, rather than cash, al-Jadaan says. The recovered cash will be used to fund a government package unveiled earlier this month, to offset the effects of financial reforms. Riyadh has intro- duced a 5pc value-added tax and raised diesel and gasoline prices. Copyright © 2018 Argus Media group Page 2 of 16 Petroleum Argus 26 January 2018 UPSTREAM West Africa reboots exploration drive Higher crude prices and renewed The prospect of a resurgence in exploration activity in west Africa has emerged corporate interest bode well for in recent months, bolstered by a recovery in crude prices and renewed interest the region, particularly Ghana among the majors. and Ivory Coast Cameroon has become the latest to join the hunt for exploration partners, after state-owned SNH formally opened a licensing round for six offshore and two onshore blocks on 15 January. The country is offering improved commercial terms, the company says. But political instability threatens to undermine the investment drive. A year-long government crackdown on protests in Cameroon’s English-speaking regions has fuelled support for armed separatists, raising tensions ahead of a presidential election later this year. West Africa MOROCCO Yaounde has launched the round amid intense competition from regional ALGERIA rivals. Ghana scored a notable victory this month, securing ExxonMobil as the LIBYA new operator of a deepwater exploration block that Russia’s Lukoil relinquished in WESTERN 2015. ExxonMobil previously made an unsuccessful attempt to gain access to SAHARA Ghana’s deepwater sector — the government blocked its $4bn bid to buy US MAURITANIA MALI independent Kosmos Energy’s assets in 2010. NIGER CHAD SENEGAL The firm’s renewed interest partly reflects its drilling success across the other GAMBIA BURKINA FASO side of the Atlantic, offshore Guyana, where it has discovered more than 3.2bn bl GUINEA- BISSAU GUINEA BENIN of oil equivalent in the past three years. South America’s Guyana basin — which SIERRA LEONE IVORY NIGERIA COAST spans French Guiana, Guyana and Suriname — shares many geological similarities LIBERIA GHANA TOGO CAMEROON with west Africa’s transform margin, including offshore Ghana. This stems from when the two continents separated millions of years ago.
Load more

Recommended publications
  • Middle East Oil Pricing Systems in Flux Introduction
    May 2021: ISSUE 128 MIDDLE EAST OIL PRICING SYSTEMS IN FLUX INTRODUCTION ........................................................................................................................................................................ 2 THE GULF/ASIA BENCHMARKS: SETTING THE SCENE...................................................................................................... 5 Adi Imsirovic THE SHIFT IN CRUDE AND PRODUCT FLOWS ..................................................................................................................... 8 Reid l'Anson and Kevin Wright THE DUBAI BENCHMARK: EVOLUTION AND RESILIENCE ............................................................................................... 12 Dave Ernsberger MIDDLE EAST AND ASIA OIL PRICING—BENCHMARKS AND TRADING OPPORTUNITIES......................................... 15 Paul Young THE PROSPECTS OF MURBAN AS A BENCHMARK .......................................................................................................... 18 Michael Wittner IFAD: A LURCHING START IN A SANDY ROAD .................................................................................................................. 22 Jorge Montepeque THE SECOND SPLIT: BASRAH MEDIUM AND THE CHALLENGE OF IRAQI CRUDE QUALITY...................................... 29 Ahmed Mehdi CHINA’S SHANGHAI INE CRUDE FUTURES: HAPPY ACCIDENT VERSUS OVERDESIGN ............................................. 33 Tom Reed FUJAIRAH’S RISE TO PROMINENCE ..................................................................................................................................
    [Show full text]
  • Ice Crude Oil
    ICE CRUDE OIL Intercontinental Exchange® (ICE®) became a center for global petroleum risk management and trading with its acquisition of the International Petroleum Exchange® (IPE®) in June 2001, which is today known as ICE Futures Europe®. IPE was established in 1980 in response to the immense volatility that resulted from the oil price shocks of the 1970s. As IPE’s short-term physical markets evolved and the need to hedge emerged, the exchange offered its first contract, Gas Oil futures. In June 1988, the exchange successfully launched the Brent Crude futures contract. Today, ICE’s FSA-regulated energy futures exchange conducts nearly half the world’s trade in crude oil futures. Along with the benchmark Brent crude oil, West Texas Intermediate (WTI) crude oil and gasoil futures contracts, ICE Futures Europe also offers a full range of futures and options contracts on emissions, U.K. natural gas, U.K power and coal. THE BRENT CRUDE MARKET Brent has served as a leading global benchmark for Atlantic Oseberg-Ekofisk family of North Sea crude oils, each of which Basin crude oils in general, and low-sulfur (“sweet”) crude has a separate delivery point. Many of the crude oils traded oils in particular, since the commercialization of the U.K. and as a basis to Brent actually are traded as a basis to Dated Norwegian sectors of the North Sea in the 1970s. These crude Brent, a cargo loading within the next 10-21 days (23 days on oils include most grades produced from Nigeria and Angola, a Friday). In a circular turn, the active cash swap market for as well as U.S.
    [Show full text]
  • Market Structure, Inventories and Oil Prices: an Empirical Analysis
    Market Structure, Inventories and Oil Prices: An Empirical Analysis Jennifer I. Considine and Philipp Galkin and Abdullah Aldayel January 2020 Doi: 10.30573/KS--2020-DP02 Market Structure, Inventories and Oil Prices: An Empirical Analysis 1 About KAPSARC The King Abdullah Petroleum Studies and Research Center (KAPSARC) is a non-profit global institution dedicated to independent research into energy economics, policy, technology and the environment across all types of energy. KAPSARC’s mandate is to advance the understanding of energy challenges and opportunities facing the world today and tomorrow, through unbiased, independent, and high-caliber research for the benefit of society. KAPSARC is located in Riyadh, Saudi Arabia. This publication is also available in Arabic. Legal Notice © Copyright 2020 King Abdullah Petroleum Studies and Research Center (“KAPSARC”). This Document (and any information, data or materials contained therein) (the “Document”) shall not be used without the proper attribution to KAPSARC. The Document shall not be reproduced, in whole or in part, without the written permission of KAPSARC. KAPSARC makes no warranty, representation or undertaking whether expressed or implied, nor does it assume any legal liability, whether direct or indirect, or responsibility for the accuracy, completeness, or usefulness of any information that is contained in the Document. Nothing in the Document constitutes or shall be implied to constitute advice, recommendation or option. The views and opinions expressed in this publication are those of the authors and do not necessarily reflect the official views or position of KAPSARC. Market Structure, Inventories and Oil Prices: An Empirical Analysis 2 Market Structure, Inventories and Oil Prices: An Empirical Analysis Key PointsJennifer I.
    [Show full text]
  • Impact of Low Oil Price on Energy Security Impact of Low Oil Price on Energy Security
    APEC Oil and Gas Security Studies Series 10 APEC Oil and Gas Security Studies Impact of Low Oil Price on Energy Security Impact of Low Oil Price on Energy Security Energy Working Group EWG 01 2016S PRODUCED BY: Series Asia Pacific Energy Research Centre (APERC) Institute of Energy Economics, Japan 10 June 2017 Inui Building, Kachidoki 11F, 1-13-1 Kachidoki Chuo-ku, Tokyo 104-0054 Japan Tel: (813) 5144-8551 Fax: (813) 5144-8555 E-mail: [email protected] (administration) Website: http://aperc.ieej.or.jp/ FOR: Asia-Pacific Economic Cooperation Secretariat 35 Heng Mui Keng Terrace, Singapore 119616 Tel: (65) 68 919 600 Fax: (65) 68 919 690 E-mail: [email protected] Website: http://www.apec.org © 2017 APEC Secretariat APEC#217-RE-01.7. ISBN 978-981-11-3850-8 2017 Photographs credited by APERC Impact of Low Oil Price on Energy Security APEC Oil and Gas Security Studies Series 10 Energy Working Group June 2017 EWG 01 2016S PRODUCED BY: Dr Ken Koyama, Mr Ichiro Kutani, Mr Takashi Matsumoto, Mr Tadashi Yoshida Asia-Pacific Energy Research Centre (APERC) Institute of Energy Economics, Japan Inui Building, Kachidoki 11F, 1-13-1 Kachidoki Chuo-ku, Tokyo 104-0054 Japan Tel: (813) 5144-8551 Fax: (813) 5144-8555 E-mail: [email protected] (administration) Website: http://aperc.ieej.or.jp/ PRODUCED FOR: Asia-Pacific Economic Cooperation Secretariat 35 Heng Mui Keng Terrace, Singapore 119616 Tel: (65) 68 919 600 Fax: (65) 68 919 690 E-mail: [email protected] Website: http://www.apec.org This research document is available at: http://aperc.ieej.or.jp © 2017 APEC Secretariat APEC#217-RE-01.7 ISBN 978-981-11-3850-8 Photographs credited by APERC ii Foreword During the 11th APEC Energy Ministers’ Meeting (EMM11) held in Beijing, China on 2nd September 2014, the Ministers issued instructions to the Energy Working Group (EWG).
    [Show full text]
  • Methodology and Specifications Guide Crude Oil Latest Update: January 2019
    Methodology and specifications guide Crude oil Latest update: January 2019 Introduction 2 Part V: Corrections 12 How this methodology statement is organized 2 Part VI: Requests for clarifications of data and Part I: Input data 2 complaints 12 Reporting data to Platts 3 What to report 3 Part VII: Definitions of the trading locations for which How to report 3 Platts publishes daily indexes or assessments 13 MOC data publishing principles 3 North Sea 16 West Africa 23 Part II: Security and confidentiality 7 Urals and Mediterranean 27 Persian Gulf 35 Part III: Determining assessments 8 Asia Pacific 42 MOC price assessment principles 8 United States 52 Normalization price adjustment techniques 8 Canada 57 Prioritizing data 9 Latin America 59 Assessment Calculations 9 Futures Assessments 62 Part IV: Platts editorial standards 12 Revision History 64 www.spglobal.com/platts Methodology and specifications guide Crude oil: January 2019 INTRODUCTION market acceptance for any proposed introduction or changes to where one or more reporting entities submit market data methodology. For more information on the review and approval that constitute a significant proportion of the total data upon Platts methodologies are designed to produce price procedures, please visit: https://www.spglobal.com/platts/en/ which the assessment is based. assessments that are representative of market value, and of the our-methodology/methodology-review-change particular markets to which they relate. Methodology documents ■■ Part IV explains the process for verifying that published prices describe the specifications for various products reflected All Platts methodologies reflect Platts commitment to comply with Platts standards. by Platts assessments, the processes and standards Platts maintaining best practices in price reporting.
    [Show full text]
  • OPEC Chief Says Oil Market Responding Well to Record OPEC+
    May 21, 2020 OPEC chief says oil market responding well to "Chinese refiners have lost lots of money on refined oil record OPEC+ cut exports as demand in overseas markets was hit badly by the coronavirus," said Ding Xu of China-based Sublime OPEC is encouraged by a rally in oil prices and strong Info, adding that they would rather focus on the home adherence to its latest output cut, its secretary general market. said, although sources say the group has not ruled For the past two months, a complex refinery was losing out further steps to support the market. money producing gasoline as demand crashed following The Organization of the Petroleum Exporting lockdowns to curb the spread of the coronavirus. Countries, Russia and other allies, a group known as China's retail fuel prices are protected by a minimum Brent OPEC+, are cutting supply by a record 9.7 million crude price of $40 a barrel, however, and home demand barrels per day (bpd) from May 1 to offset a slump in has recovered swiftly, denting exports, said Kostantsa prices and demand caused by the coronavirus Rangelova of JBC Energy. outbreak. Expectations of lower Chinese petrol exports and optimism Oil prices have more than doubled since hitting a 21- over global demand recovery flipped Asia's refining margin year low below $16 in April. So far in May, OPEC+ to a small premium of 4 cents to Brent crude on Tuesday has cut oil exports by about 6 million bpd, according for the first time in about two months.
    [Show full text]
  • Murban: a Benchmark for the Middle East?
    October 2019 Murban: A benchmark for the Middle East? OXFORD ENERGY COMMENT Ahmed Mehdi, Eesha Muneeb, Adi Imsirovic, Bassam Fattouh 1. Introduction The Gulf producers are the world’s largest crude oil exporters, with most of their crude – sold via long- term contracts – flowing eastward. But oil market dynamics are shifting, reinforcing certain existing trends and creating new ones: East of Suez crude balances over the next decade highlight Asia’s growing crude import requirement; light crude exports (particularly US grades) to Asia keep increasing (see Figure 1); crude slates are getting lighter, reflecting the shift in product demand patterns, especially due to the International Maritime Organization 2020 low-sulphur bunker fuel requirements; and Asian trading participants are becoming more active ‘price makers’ rather than ‘price takers’.1 Figure 1: US crude flows to Asia, kb/d 1600 1400 1200 1000 800 600 400 200 0 Korea India Vietnam Thailand Indonesia Japan China Taiwan Note: kb/d = thousand barrels per day. Source: US EIA. As the region’s cushioned position unravels in the face of rising oil production from other corners of the world, Gulf national oil companies (NOCs) face a fresh challenge: how to remain competitive in their largest and most profitable market. The response and strategies necessary to confront these challenges are more layered than simply keeping prices low. As Asia’s refiners buy increasing volumes of crude oil from previously inaccessible origins, they are also exposed to dynamic pricing and hedging options. The crude oil pricing system is key to these dynamics. Historically, the region’s Asia-bound sales have been priced against two sour markers: Platts Dubai and Oman.
    [Show full text]
  • Light and Heavy Naphtha: International Market Analysis
    Light and Heavy Naphtha: International Market Analysis Prospectus Energy & Chemical | Light and Heavy Naphtha: International Market Analysis Contents The Market ................................................................................2 Objective ...................................................................................3 Key Questions ..........................................................................4 Scope of work ..........................................................................5 Deliverables .............................................................................6 Methodology ......................................................................... 7-8 Table of Contents ................................................................9-11 Expert Team ............................................................................12 Qualifications .........................................................................13 About Chemical at IHS Makit ..............................................14 About Energy at IHS Makit ...................................................15 About IHS Markit ....................................................................16 This prospectus is for the recipient’s internal use only. No part can be copied, distributed, or republished. © 2017 IHS Markit 2 Energy & Chemical | Light and Heavy Naphtha: International Market Analysis The Market Oversupply of North American unconventional crude oil and natural gas has increased exports of most hydrocarbons and has profoundly
    [Show full text]
  • The World Oil Market and US Policy
    The World Oil Market and U.S. Policy: Background and Select Issues for Congress Updated April 23, 2019 Congressional Research Service https://crsreports.congress.gov R45493 SUMMARY R45493 The World Oil Market and U.S. Policy: April 23, 2019 Background and Select Issues for Congress Heather L. Greenley The United States, as the largest consumer and producer of oil, plays a major role in the world Analyst in Energy Policy market. Policy decisions can affect the price of oil and petroleum products (e.g., gasoline) for U.S. consumers and companies operating in U.S. oil production, transportation, and refining sectors. Congress considers policies that can affect the world oil market, including trade, sanctions, protection of trade routes, the Strategic Petroleum Reserve (SPR), and alternative fuel standards. Technological advancements, supportive policies, and other aspects of the U.S. oil industry have reversed a multidecade downward trend in U.S. oil production. In 2018, U.S. oil production nearly doubled compared to 2008. The United States is also the number one consumer of crude oil and refined petroleum products in the world. The pricing of crude oil contributes to the price consumers pay for petroleum products in the United States. Congress has maintained an interest in oil policy. Following the 1973 Organization of Arab Petroleum Exporting Countries (OAPEC) oil embargo, Congress passed the Energy Policy and Conservation Act of 1975 (EPCA; P.L. 94-163). In response to rapid price escalation and perceived scarcity, the EPCA, among many other things, restricted U.S. produced crude oil exports. As the oil sector evolved, Congress has amended the EPCA.
    [Show full text]
  • January 2020 OPEC Monthly Oil Market Report
    OPEC Monthly Oil Market Report 15 January 2020 Feature article: Monetary policies: Potential impact on the oil market Oil market highlights i Feature article iii Crude oil price movements 1 Commodity markets 9 World economy 12 World oil demand 31 World oil supply 41 Product markets and refinery operations 60 Tanker market 66 Oil trade 70 Stock movements 77 Balance of supply and demand 84 Organization of the Petroleum Exporting Countries Helferstorferstrasse 17, A-1010 Vienna, Austria E-mail: prid(at)opec.org Website: www.opec.org Disclaimer The data, analysis and any other information (the “information”) contained in the Monthly Oil Market Report the “MOMR”) is for informational purposes only and is neither intended as a substitute for advice from busi- ness, finance, investment consultant or other professional; nor is it meant to be a benchmark or input data to a benchmark of any kind. Whilst reasonable efforts have been made to ensure the accuracy of the information contained in the MOMR, the OPEC Secretariat makes no warranties or representations as to its accuracy, rel- evance or comprehensiveness, and assumes no liability or responsibility for any inaccuracy, error or omission, or for any loss or damage arising in connection with or attributable to any action or decision taken as a result of using or relying on the information in the MOMR. The views expressed in the MOMR are those of the OPEC Secretariat and do not necessarily reflect the views of its governing bodies or Member Countries. The desig- nation of geographical entities in the MOMR, and the use and presentation of data and other materials, do not imply the expression of any opinion whatsoever on the part of OPEC and/or its Member Countries concerning the legal status of any country, territory or area, or of its authorities, or concerning the exploration, exploitation, refining, marketing and utilization of its petroleum or other energy resources.
    [Show full text]
  • An Anatomy of the Crude Oil Pricing System
    An Anatomy of the Crude Oil Pricing System Bassam Fattouh1 WPM 40 January 2011 1 Bassam Fattouh is the Director of the Oil and Middle East Programme at the Oxford Institute for Energy Studies; Research Fellow at St Antony‟s College, Oxford University; and Professor of Finance and Management at the School of Oriental and African Studies, University of London. I would like to express my gratitude to Argus for supplying me with much of the data that underlie this research. I would also like to thank Platts for providing me with the data for Figure 21 and CME Group for providing me with the data for Figure 13. The paper has benefited greatly from the helpful comments of Robert Mabro and Christopher Allsopp and many commentators who preferred to remain anonymous but whose comments provided a major source of information for this study. The paper also benefited from the comments received in seminars at the Department of Energy and Climate Change, UK, ENI, Milan and Oxford Institute for Energy Studies, Oxford. Finally, I would like to thank those individuals who have given their time for face-to-face and/or phone interviews and have been willing to share their views and expertise. Any remaining errors are my own. 1 The contents of this paper are the authors’ sole responsibility. They do not necessarily represent the views of the Oxford Institute for Energy Studies or any of its members. Copyright © 2011 Oxford Institute for Energy Studies (Registered Charity, No. 286084) This publication may be reproduced in part for educational or non-profit purposes without special permission from the copyright holder, provided acknowledgment of the source is made.
    [Show full text]
  • Regulation of Downstream Oil &
    Lexis® Middle East Regulation of Downstream Oil & Gas Type Gulf Legal Advisor Document type Practice Note Date 6 mars 2020 Jurisdiction United Arab Emirates Copyright LexisNexis Document link: https://www.lexismiddleeast.com/pn/UnitedArabEmirates/Regulation_of_Downstream_Oil___Gas https://www.lexismiddleeast.com Regulation of Downstream Oil & Gas Overview The UAE is among the world's ten largest oil producers and is a member of the Organization of the Petroleum Exporting Countries, the Organization of Arab Petroleum Exporting Countries and the Gas Exporting Countries Forum. This Practice Note provides an overview of the legal framework for the UAE's downstream oil and gas sector, for the purposes of this Practice Note, limited to the refining of crude oil, processing of natural gas and the marketing and distribution of oil and gas products. Given the maturity of the UAE's oil and gas industry and ever-growing domestic energy needs, it has well-established downstream infrastructure serving both domestic and export markets. Definitions ADNOC: Abu Dhabi National Oil Company. ENOC: Emirates National Oil Company. MOE: Ministry of Energy of the UAE. MOEW: Ministry of Environment and Water of the UAE. The Bureau: Abu Dhabi's Regulation and Supervision Bureau. Practical Guidance Overview Under article 23 of the UAE Constitution, the natural resources of each Emirate are considered the public property of that Emirate. Consequently, each Emirate is responsible for regulating the oil and gas industry within its borders. Abu Dhabi, Dubai and Sharjah each have a Supreme Council responsible for oil and gas policy development and coordination including the downstream segment. There is no general legal framework in the UAE applicable to the downstream sector.
    [Show full text]