UAE COMMITS TO AI INVESTMENT FOR ENHANCED INDUSTRIAL EFFICIENCY – MIDDLE EAST BUSINESS NEWS

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Artificial intelligence (AI) is poised to drive the UAE’s industrial evolution, promising substantial gains in productivity, adaptability, and sustainability over the coming decade, experts revealed at the Make it in the Emirates (MIITE) Forum in Abu Dhabi.

During a fireside chat titled ‘Advancing the AI Revolution: Implementing new computing paradigms in real-world industrial settings,’ moderated by Dan Murphy of CNBC, His Excellency Faisal Al Bannai, Advisor to the UAE President on Strategic Research and Advanced Technology Affairs, underscored the UAE’s commitment to AI advancement. He emphasized the nation’s strategic policies aimed at solidifying its AI position, with data emerging as a pivotal force supporting various sectors and rapid technological strides.

His Excellency elaborated on the launch and ongoing development of the Falcon large language model (LLM), stressed the importance of international collaboration in driving AI adoption across sectors, and highlighted the integration of new computing models in industrial contexts. He further emphasized the UAE’s sustained investment in AI to elevate productivity, industrial efficiency, and local industry standards.

The MIITE Forum, organized by MoIAT in collaboration with ADDED and ADNOC, is scheduled from May 27-28. Under the theme ‘Invest. Innovate. Grow,’ this annual platform showcases facilitators and investment prospects within the UAE’s industrial landscape, spotlighting flagship initiatives like the Technology Transformation Program (TTP).

SOurce:https://cxotv.techplusmedia.com/EMEA/uae-commits-to-ai-investment-for-enhanced-industrial-efficiency-middle-east-business-news

Yahsat contracts Airbus to build Al Yah 4 and Al Yah 5 satellites

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Al Yah Satellite Communications, better known as Yahsat, has signed a deal with Airbus to build its new satellites, Al Yah 4 and Al Yah 5, as it aims to enhance its fleet and expand services.

Airbus Defence and Space will design and build the geostationary telecoms satellites based on the Eurostar Neo platform, the UAE-based satellite solutions provider said on Monday in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.

They will “offer secure governmental communications over a wide geographical area across the Middle East, Africa, Europe and Asia”, it said.

Airbus will design, manufacture and provide ground control components for the two satellites with a 15-year design life. They are planned to be launched in 2027 and 2028, respectively, the company added.

AY4 and AY5 procurement programme, including spacecraft, ground segment infrastructure, launch and insurance, will cost about Dh3.9 billion ($1.1 billion), the company said.

“This is a significant step in Yahsat’s growth trajectory. The Al Yah 4 and Al Yah 5 satellites will enable us to provide the UAE government with new cutting-edge solutions,” said chief executive Ali Al Hashemi.

“Additionally, the two new LEO [low Earth orbit] satellite platforms will support Yahsat’s future direction of providing multi-orbit satellite solutions to its customers.”

Founded in 2007, the subsidiary of Abu Dhabi’s sovereign investment arm Mubadala Investment Company offers multi-mission satellite services in more than 150 countries in Europe, the Middle East, Africa, South America, Asia and Australasia.

When it comes to government solutions, the company currently offers its services mainly in the UAE.

However, when Al Yah 4 and Al Yah 5 satellites are launched, it will open “the door to offer more services to other governments for sure”, Mr Al Hashemi told The National in October.

“While we are offering services to other governments as well currently, our capacity will be tripled or quadrupled with Al Yah 4 and Al Yah 5 satellites.”

In September, its government services arm won a new contract worth $5.1 billion from the UAE government to provide satellite capacity and managed services for 17 years, primarily on AY4 and AY5 satellites.

The procurement programme will be funded initially by Yahsat, before receiving Dh3.7 billion as an advance payment from the UAE government, the company said on Monday.

The new satellites will replace Al Yah 1 and Al Yah 2, launched in 2011 and 2012, respectively.

Airbus is also developing the Thuraya 4 (T4) satellite for Yahsat’s government solutions segment, and Thuraya, Yahsat’s commercial satellite solutions arm.

T4 is based on the Eurostar Neo platform and is scheduled to be launched in the second half of this year, entering service in the second half of 2025.

Source;https://www.thenationalnews.com/business/economy/2024/06/10/yahsat-contracts-airbus-to-build-al-yah-4-and-al-yah-5-satellites/

Abu Dhabi offers fine waiver for business licences not renewed before Covid

Abu Dhabi is waiving fines for businesses that failed to renew their commercial licences before the onset of the coronavirus pandemic, as it seeks to support businesses and attract more investments into the emirate.

The Abu Dhabi Department of Economic Development is cancelling fines, which begin at Dh200 per month and are capped at Dh4,000, for the non-renewal of licences, its undersecretary told The National on Tuesday.

The decision was taken after getting feedback from business owners in Abu Dhabi who requested to waive the fines, Rashed Al Blooshi said.

“The reasons why those owners could not renew is due to partnerships. Most of those licences are partnerships between two people, the counterpart or the partner could be out of the country for one reason or another and could not update the database. So we have left one partner who could not deal with the situation of renewing the licence,” he said.

“We have consulted the stakeholders and we have looked at the situation from the financial point of view, from the legal point of view, from the fairness point of view and as a result we came up with an initiative, which is waiving the Dh4,000 fine and resetting those licences.”

Licences can only be cancelled if requested by the company owners.

The measure will help companies “who were stuck with the old licence to activate and renew it, and this would help to make the environment for attracting the investments here in Abu Dhabi healthier”, Mr Al Blooshi said.

The move will encourage small and medium enterprises to expand and play a stronger role in Abu Dhabi’s gross domestic product growth, he said.

Unified economic licence
Last week, Abu Dhabi also launched a system to unify procedures for registering economic licences across the emirate and its free zones to improve the ease of doing business.

Added joined with the Abu Dhabi Free Zones Council, which includes Khalifa Economic Zones Abu Dhabi, Abu Dhabi Airports Free Zone, Masdar City Free Zone and Creative Media Authority, to roll out the initiative.

The new initiatives come as Abu Dhabi’s economy continues to grow amid its economic diversification plans.

Abu Dhabi’s economy grew 3.1 per cent annually last year, hitting its highest level in a decade, as a sharp expansion of the non-oil sector drove momentum.

The emirate’s gross national product for the 12 months to the end of December reached Dh1.14 trillion, its best performance in terms of value in 10 years, while its non-oil economy expanded 9.1 per cent, driven by growth in construction, finance and insurance and transportation activities.

Mr Al Blooshi expects Abu Dhabi’s economy to continue the economic momentum this year amid new government initiatives and measures to attract new investment.

“If you look at the situation around us, if you look at the agreements that we are continually signing up, if you look Cepas [Comprehensive economic partnership agreements] for example, and if you look at the industrial sector, that we want to double the size of the industrial sector by 2031, that would definitely encourage the growth of the GDP,” Mr Al Blooshi, said.

In 2022, the emirate launched an industrial strategy to grow the contribution of the sector to the economy by investing Dh10 billion across six programmes to more than double the emirate’s manufacturing to Dh172 billion by 2031.

Industrial sector growth is “strong” in Abu Dhabi and its contribution to the emirate’s GDP reached Dh101 billion last year, he added.

“A lot of actions are taking place” around the development of the sector, Mr Al Blooshi said.

That includes a land incentive programme for manufacturers, where rents could be offered for as low as Dh5 per square metre for priority sectors including logistics, food, energy, heavy industry, health care, bio-pharmaceuticals and others.

Tech push
Mr Al Blooshi expects more investments in artificial intelligence amid initiatives to support the sector, Mr Al Blooshi said.

“AI requires strong communication, cloud and collection of the data and strong machines. If you look at those three elements, you’ll see clearly that when it comes to the infrastructure of Abu Dhabi today, it is number one in terms of linking the fiber optic, which makes communication extremely efficient and fast,” he said.

Microsoft invested $1.5 billion in Abu Dhabi-based artificial intelligence and cloud company G42.

Companies are investing in Abu Dhabi because of the offerings and technology ecosystem including the presence of Hub71, clean energy company Masdar and Abu Dhabi Global Market, among others, he said.

Souce:https://www.thenationalnews.com/business/economy/2024/06/11/abu-dhabi-offers-fine-waiver-for-business-licences-not-renewed-before-covid/

Global growth to stay steady at 2.6% in 2024 for the first time in three years

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The world economy is expected to grow by 2.6 per cent this year, and the expansion rate is expected to remain consistent throughout the year, without significant fluctuations, according to a report by the World Bank.

It will be the first time in three years that the global growth rate will stay steady despite escalating geopolitical tensions and high interest rates. Following this, growth is anticipated to rise slightly to 2.7 per cent in 2025-2026, driven by moderate increases in trade and investment, the report said.

The World Bank’s latest growth outlook is a slight upgrade from its January projections of 2.4 per cent. However, this growth rate is still below the 3.1 per cent average in the decade before the coronavirus pandemic.

The latest forecast implies that over the course of 2024-2026 countries that collectively account for more than 80 per cent of the world’s population and global economy would still be growing more slowly than they did in the decade before the pandemic.

“Four years after the upheavals caused by the pandemic, conflicts, inflation, and monetary tightening, it appears that global economic growth is steadying. However, growth is at lower levels than before 2020,” said Indermit Gill, World Bank’s chief economist and senior vice president.

Overall, developing economies are projected to grow 4 per cent on average over 2024-2025, slightly slower than in 2023. Growth in low-income economies is expected to increase to 5 per cent this year from 3.8 per cent in 2023.

Developing economies still lag behind
In 2024, one in four developing economies is expected to remain poorer than it was before the pandemic began in 2019. This proportion is twice as high for countries in fragile and conflict affected situations.

Prospects for the world’s poorest economies are even “more worrisome” as they face higher levels of debt service, constricting trade possibilities and costly climate events, said Mr Gill.

“Developing economies will have to find ways to encourage private investment, reduce public debt, and improve education, health, and basic infrastructure.”

The poorest among them, particularly the 75 countries that qualify for concessional aid from the International Development Association, will be unable to achieve this without international assistance, Mr Gill said.

Middle East and GCC bound to grow in 2024
After slowing to 1.5 per cent last year, growth in the Middle East and North Africa region is expected to jump to 2.8 per cent in 2024 and 4.2 per cent in 2025, mainly because of a gradual resumption of oil production.

This month, Opec+ bloc, responsible for supplying about 40 per cent of the world’s crude oil, agreed to extend its output cuts of 3.66 million barrels per day, originally set to conclude this year, until the end of 2025.

Meanwhile, the additional 2.2 million bpd voluntary production cuts of eight Opec+ member states were extended by three months until the end of September. The group also released a plan for gradually unwinding the voluntary curbs on a monthly basis from October 2024 until September 2025.

Mena’s 2024 growth outlook has weakened since January, “partly reflecting extensions of additional voluntary oil production cuts and the continuing conflict in the Middle East centred in Gaza”, the report said.

Some of the key downside risks in the region include an escalation of “armed conflicts, heightened local violence and social tensions, a sudden tightening in global financial conditions, more frequent or severe natural disasters, and weaker-than-projected growth in China”.

Meanwhile, growth in GCC countries is forecast to strengthen to 2.8 per cent in 2024 and 4.7 per cent in 2025.

Among oil exporters, declines in oil production have constrained oil activity across GCC countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE. However, growth in non-oil activity has remained robust, driven by both private consumption and business investment, somewhat offsetting a contraction of oil activity, the report said.

Global inflation decline slower than expected
The report indicated that while global inflation is projected to decrease, the rate at which it will decrease is slower than earlier forecasts had suggested. It is expected to average 3.5 per cent this year and 2.9 per cent in 2025, but the pace of decline is slower than was projected six months ago.

“Although food and energy prices have moderated across the world, core inflation remains relatively high … and could stay that way,” said Ayhan Kose, World Bank’s deputy chief economist and director of prospects group.

“That could prompt central banks in major advanced economies to delay interest rate cuts. An environment of higher-for-longer rates would mean tighter global financial conditions and much weaker growth in developing economies.”

Global interest rates are likely to remain high by the standards of recent decades – averaging about 4 per cent over 2025-2026, roughly double the 2000-2019 average, the report said.

Source:https://www.thenationalnews.com/business/economy/2024/06/11/global-growth-to-stay-steady-at-26-in-2024-for-the-first-time-in-three-years/
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Abu Dhabi offers fine waiver for business licences not renewed before Covid

Abu Dhabi is waiving fines for businesses that failed to renew their commercial licences before the onset of the coronavirus pandemic, as it seeks to support businesses and attract more investments into the emirate.

The Abu Dhabi Department of Economic Development is cancelling fines, which begin at Dh200 per month and are capped at Dh4,000, for the non-renewal of licences, its undersecretary told The National on Tuesday.

The decision was taken after getting feedback from business owners in Abu Dhabi who requested to waive the fines, Rashed Al Blooshi said.

“The reasons why those owners could not renew is due to partnerships. Most of those licences are partnerships between two people, the counterpart or the partner could be out of the country for one reason or another and could not update the database. So we have left one partner who could not deal with the situation of renewing the licence,” he said.

“We have consulted the stakeholders and we have looked at the situation from the financial point of view, from the legal point of view, from the fairness point of view and as a result we came up with an initiative, which is waiving the Dh4,000 fine and resetting those licences.”

Licences can only be cancelled if requested by the company owners.

The measure will help companies “who were stuck with the old licence to activate and renew it, and this would help to make the environment for attracting the investments here in Abu Dhabi healthier”, Mr Al Blooshi said.

The move will encourage small and medium enterprises to expand and play a stronger role in Abu Dhabi’s gross domestic product growth, he said.

Unified economic licence
Last week, Abu Dhabi also launched a system to unify procedures for registering economic licences across the emirate and its free zones to improve the ease of doing business.

Added joined with the Abu Dhabi Free Zones Council, which includes Khalifa Economic Zones Abu Dhabi, Abu Dhabi Airports Free Zone, Masdar City Free Zone and Creative Media Authority, to roll out the initiative.

The new initiatives come as Abu Dhabi’s economy continues to grow amid its economic diversification plans.

Abu Dhabi’s economy grew 3.1 per cent annually last year, hitting its highest level in a decade, as a sharp expansion of the non-oil sector drove momentum.

The emirate’s gross national product for the 12 months to the end of December reached Dh1.14 trillion, its best performance in terms of value in 10 years, while its non-oil economy expanded 9.1 per cent, driven by growth in construction, finance and insurance and transportation activities.

Mr Al Blooshi expects Abu Dhabi’s economy to continue the economic momentum this year amid new government initiatives and measures to attract new investment.

“If you look at the situation around us, if you look at the agreements that we are continually signing up, if you look Cepas [Comprehensive economic partnership agreements] for example, and if you look at the industrial sector, that we want to double the size of the industrial sector by 2031, that would definitely encourage the growth of the GDP,” Mr Al Blooshi, said.

In 2022, the emirate launched an industrial strategy to grow the contribution of the sector to the economy by investing Dh10 billion across six programmes to more than double the emirate’s manufacturing to Dh172 billion by 2031.

Industrial sector growth is “strong” in Abu Dhabi and its contribution to the emirate’s GDP reached Dh101 billion last year, he added.

“A lot of actions are taking place” around the development of the sector, Mr Al Blooshi said.

That includes a land incentive programme for manufacturers, where rents could be offered for as low as Dh5 per square metre for priority sectors including logistics, food, energy, heavy industry, health care, bio-pharmaceuticals and others.

Tech push
Mr Al Blooshi expects more investments in artificial intelligence amid initiatives to support the sector, Mr Al Blooshi said.

“AI requires strong communication, cloud and collection of the data and strong machines. If you look at those three elements, you’ll see clearly that when it comes to the infrastructure of Abu Dhabi today, it is number one in terms of linking the fiber optic, which makes communication extremely efficient and fast,” he said.

Microsoft invested $1.5 billion in Abu Dhabi-based artificial intelligence and cloud company G42.

Companies are investing in Abu Dhabi because of the offerings and technology ecosystem including the presence of Hub71, clean energy company Masdar and Abu Dhabi Global Market, among others, he said.

Souce:https://www.thenationalnews.com/business/economy/2024/06/11/abu-dhabi-offers-fine-waiver-for-business-licences-not-renewed-before-covid/

UAE to boost industrial sector with additional $6.3bn in financing

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The UAE’s industrial sector will receive an additional Dh23 billion ($6.3 billion) in funding, backed by major companies, as the country intensifies its plans to expand its domestic manufacturing capabilities and boost self-sufficiency.

Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, said that the industrial sector is one of the main pillars of the national economy’s progress and diversification, as he visited the third Make it in the Emirates forum in Abu Dhabi on Monday.

“Our nation’s skilled workforce and companies are now vying for success on both regional and global stages. This is a testament to the capabilities of our people and the high quality of our products,” he said, as quoted by state news agency Wam.

The industrial sector’s growth will be supported by funding from two of the UAE’s major companies. Adnoc will contribute a further Dh20 billion while Pure Health, the largest healthcare group in the Emirates, will provide another Dh3 billion, Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, said.

That would raise total funding for the industrial sector to more than Dh143 billion, which is being used to support the domestic manufacturing of more than 2,000 products, he said.

“The initiatives, encompassing legislation, support structures, financial benefits, and cutting-edge infrastructure provided by the state, coupled with a welcoming business environment, are all instrumental in attracting investments and talented individuals from around the world.”

The forum has been able to highlight the advantages of investing in UAE industry and being able to “respond to demand to ensure investors will have visibility and viable projects”, Dr Al Jaber said.

Also announced was a new lending programme worth Dh1 billion to support small and medium enterprises, in co-ordination with Emirates Development Bank and other commercial banks.

In addition, a new scheme to provide competitive electricity prices for industrial companies in Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah was launched, in partnership with the Ministry of Energy and Emirates Water and Electricity Company.

“Our objectives are developing the UAE industrial ecosystem, enabling the industrial community, creating more investment opportunities and strengthening our economy’s resilience,” Dr Al Jaber said.

“We enhance the self-sufficiency of our supply chains … together we can establish the principle of self-reliance and self-sufficiency, particularly through providing the basic needs that the [business] community requires.”

EDB will also provide financing worth Dh370 million to support artificial intelligence start-ups, in a boost to the fast-growing technology.

“The UAE leadership is very focused on adopting and applying the latest technologies and, in particular, AI across all our industrial sectors. AI is already streamlining production processes, slashing costs and boosting efficiency across industries in the UAE and beyond,” Dr Al Jaber said.

“AI has become the backbone of next-gen industrial innovation. AI doesn’t just automate tasks; it redefines them, paving the way for smarter, safer and more sustainable operations.”

The initiatives and achievements of the UAE’s industrial sector over the past few years are “just the tip of the iceberg”, Dr Al Jaber said.

“In just under three years … with our collective efforts, we are starting to see real, true tangible, positive, sustainable socioeconomic impact across our economy.”

Separately, Adnoc said at the forum that it is increasing its local manufacturing goal for critical industrial products in its procurement pipeline to Dh90 billion, after its previous Dh70 billion target was delivered ahead of schedule.

It is part of the energy major’s expanded in-country value programme, which seeks to drive an additional Dh178 billion back into the UAE economy by 2028.

The initiative aims to “support the UAE’s economic diversification, attract local and international investors, and provide high-skilled private sector jobs for UAE nationals”, Dr Al Jaber said.

Adnoc’s ICV programme has been successful in generating 11,500 local jobs as of last year, according to a senior official.

“This is a significant number … we get these individuals [newly employed people] trained in different aspects of products and supply chain and this we find is very valuable,” Dr Saleh Al Hashemi, director of Adnoc’s commercial and ICV directorate, told The National.

He also said Adnoc’s additional Dh20 billion funding will support local industries and help more companies set up their operations in the UAE.

“So any product related to our supply chain, drilling activities, carbon capture and many other fields, even if it is a service we need for our employees like medical service, we prefer things that are basically done and produced here.”

The UAE aims to boost the momentum of industrial investments at Make it in the Emirates, underpinning the vital role the sector plays in the country’s economic and diversification strategies.

The country has recorded a 49 per cent increase in the industrial sector’s contribution to the GDP, reaching Dh197 billion, from the creation of Make it in the Emirates in 2020 until December 2023, while industrial exports have surged 60 per cent to Dh187 billion, it was reported in March.

In addition, the Emirates has been able to direct Dh67 billion towards in-country value, which is a 109 per cent increase since 2020.

Industrial productivity has increased by 18 per cent compared to 2020 and the UAE was ranked first regionally and 29th globally last year in the UN Industrial Development Organisation’s competitive industrial performance index, climbing seven spots since 2020.

“We do have global economic challenges, geopolitical conflicts, climate change and their impact on the supply chain,” Dr Al Jaber said.

“With all of these, we are striving to always be ready and pre-emptive … and have the agility and flexibility to transform all these challenges into opportunities.”

This year’s event will highlight investment opportunities in several crucial industries, foremost of which are energy, telecoms, aerospace, health care, and food and beverage.

Topics dominating the two-day forum include the growth of UAE’s Operation 300bn industrial initiative, using AI in industry, the Emirates’ space ambitions and boosting young people’s role in the industrial sector, among others.

Source:https://www.thenationalnews.com/business/economy/2024/05/27/uae-to-boost-industrial-sector-with-additional-63bn-in-financing/

OPEC+ shifts meeting online as officials anticipate extending oil production cuts

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OPEC+ will hold next month’s policy meeting online rather than in person, while several delegates said they expected the group to extend its current supply cuts into the second half of the year.

Saudi Arabia and its partners will gather on June 2 — a day later than initially planned — to review roughly 2 MMbpd of production curbs, introduced to stave off a surplus and shore up crude prices. Crude traders expect the cutbacks will be maintained, and several delegates who asked not to be identified predicted the same.

No exact reason was given for the shift to an online meeting, something OPEC and its partners have been weighing for several weeks. The poor health of Saudi King Salman Bin Abdulaziz and the death of Iran President Ebrahim Raisi may have contributed to the decision, some delegates said.

For many oil market watchers, the policy implications of the decision were clear.

The 22-nation alliance, led by the Saudis and Russia, has been withholding supplies to offset brimming U.S. production and a fragile economic outlook in China and elsewhere. Moving the meeting online is “the clearest indication of a rollover” of existing quotas, said Viktor Katona, head crude analyst at market intelligence firm Kpler Ltd.

The move marks another pivot away from physical meetings for the group, which convened virtually throughout the Covid pandemic and has only held two face-to-face gatherings at its Vienna headquarters since 2020.

It made a similar last-minute switch in November amid a dispute over production quotas for African members. This time, delegates gave no indication of controversy.

Previous extensions of the current round of production curbs, which are being implemented by just eight members, were announced in separate statements by the countries themselves rather than by OPEC+. Supply quotas for the other members have already been set for the rest of 2024.

The group’s intervention is having some success, propping up international crude prices above $80 a barrel in London. Riyadh needs prices close to $100 to cover ambitious spending plans, the International Monetary Fund estimates.

Alongside the decision on whether to extend its production cuts, OPEC+ is reviewing the production capacity of member nations. The results likely will influence their separate targets for 2025.

The process so far has involved tough talks with outside consultants appointed to assess the matter, according to people familiar with the talks who asked not to be identified because those discussions were private.

The United Arab Emirates has been notably public in its stance, with state giant Abu Dhabi National Oil Co. announcing a capacity of 4.85 MMbpd — considerably higher than OPEC’s last estimate.

SOurce:https://worldoil.com/news/2024/5/24/opec-shifts-meeting-online-as-officials-anticipate-extending-oil-production-cuts/

ExxonMobil, SONATRACH partner to develop Algeria’s oil and gas resources

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Algeria’s SONATRACH and ExxonMobil signed a Memorandum of Understanding to study existing opportunities to develop oil and gas resources in the Ahnet basin and the Gourara basin, with an emphasis on operational excellence, technological innovation , respect for the environment and best sustainability practices.

The Chairman and CEO of SONATRACH said, “We are delighted with this step taken in the collaboration with ExxonMobil, a pioneering company in the energy sector. The signing of this memorandum of understanding opens up new prospects for the development of the Algerian mining sector and demonstrates the mutual desire of the two companies to achieve responsible and sustainable exploitation of our country’s natural resources.

“This agreement is an important first step in the creation of a partnership which will contribute to further unlocking the development potential of Algeria’s resources,” declared in turn Mr. John ARDILL, Vice-President Exploration & New Opportunities of Algeria. ExxonMobil. “Algeria’s long history in hydrocarbon development, along with ExxonMobil’s cutting-edge capabilities and proven experience, position us for success.

Source:https://worldoil.com/news/2024/5/26/exxonmobil-sonatrach-partner-to-develop-algeria-s-oil-and-gas-resources/

UAE’s ADNOC to reach 5 MMbpd oil capacity goal early despite OPEC production quotas

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The United Arab Emirates is on course to achieve its full oil capacity target more than a year earlier than expected.

Abu Dhabi National Oil Co.(ADNOC) is likely to reach its 5 MMbpd goal by the end of next year or early 2026, ahead of the 2027 goal the company had set, according to people with knowledge of the operations. The higher capacity will be a potential source of tension as OPEC and its allies deliberates new production quotas later this year.

OPEC and its partners have been restricting production for years to shore up the market and raise prices. The UAE — which said this month that it had raised capacity from last year’s level — has been eager to use some of its spare volumes. The country has occasionally clashed with OPEC’s de-facto leader Saudi Arabia on the issue, risking a split among the group three years ago, before a compromise was found.

Abu Dhabi is currently producing at about two-thirds of its capability. Its economy is arguably among the most diversified in the Gulf and it faces less pressure to keep oil prices high, though crude remains key to the emirate. OPEC+ is scheduled to review members’ existing capacity levels later this year, and use that to set produciton baseline levels — the starting point from which cuts are calculated — for 2025.

“The UAE is not doing this to generate spare capacity, they’re investing to produce this stuff,” said Ben Cahill, a senior fellow in the Center for Strategic and International Studies. “There’s a tension that is emerging and will be with us for some time within OPEC+.”

ADNOC declined to comment on its capacity target.

Government-owned ADNOC and its partners are ramping up drilling new wells in oil fields and connecting production sites to existing processing stations to squeeze out more out of deposits, said the people who asked not to be named while discussing private, operational matters. ADNOC has outlined a $150 billion spending plan, including on accelerating oil capacity additions, and wants to ensure all of it doesn’t lie idle.

Source:https://worldoil.com/news/2024/5/26/uae-s-adnoc-to-reach-5-mmbpd-oil-capacity-goal-early-despite-opec-production-quotas/

Subsea7 secures offshore contract for Belinda field’s Trion FPSO from Serica Energy for $150 million

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Subsea7 S.A. won a “sizeable” contract from Serica Energy, for the offshore Belinda field development south-east of the Triton FPSO. According to an online statement, the contract is valued between $50 million and $150 million.

The Belinda field is operated by Serica Energy and located approximately 190 kilometers east of Aberdeen in the UK Central North Sea, with a water depth of 95 meters.

The contract scope includes project management, engineering, procurement, construction and installation (EPCI) of a 5-kilometre 8” production pipeline with a 3” piggy-backed gas lift line and an electro-hydraulic controls (EHC) umbilical.

Subsea7’s scope also includes associated subsea structures and tie-ins to the Triton Floating Production Storage & Offloading (FPSO) vessel operated by Dana Petroleum, via an existing production manifold near the Triton riser base and for controls at the Evelyn valve skid.

Project management and engineering work will commence immediately in Aberdeen. The offshore activities are scheduled for Q3 2025.

Steve Wisely, Senior Vice President of UK and Global Inspection, Repair and Maintenance, Subsea7, said: “We are pleased to have this opportunity to supply Serica Energy with EPCI knowledge and demonstrate the extensive North Sea expertise we have amassed over 50 years. We look forward to supporting the safe, efficient and timely execution of this project.”

Source:https://worldoil.com/news/2024/5/27/subsea7-secures-offshore-contract-for-belinda-field-s-trion-fpso-from-serica-energy-for-150-million/

CNOOC secures five exploration and production contracts offshore Mozambique

CNOOC Limited’s wholly-owned subsidiaries have entered into petroleum exploration and production concession contracts (EPCCs) with the Ministry of Mineral Resources and Energy of Mozambique (MIREME) and Empresa Nacional de Hidrocarbonetos (ENH) for five offshore blocks in Mozambique.

The contracts were signed for a total of five blocks, S6-A, S6-B, A6-D, A6-E and A6-G, all located offshore Mozambique. The total area is approximately 29,000 km2, with water depths from 500 to 2,500 m.

According to the terms of the contracts, the first stage of the exploration period of the blocks shall be four years. The five wholly-owned subsidiaries of CNOOC Limited shall act as the operators in the exploration and development phases and independently owns the operating interests in the five blocks (S6-A 70%, S6-B 77.5%, A6-D 77.5%, A6-E 80%, A6-G 79.5%). ENH owns the remaining non-operating interests (S6-A 30%, S6-B 22.5%, A6-D 22.5%, A6-E 20%, A6-G 20.5%).

SOurce:https://worldoil.com/news/2024/5/27/cnooc-secures-five-exploration-and-production-contracts-offshore-mozambique/