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[March 20, 2006]

AME Info, Abu Dhabi, United Arab Emirates, oil and gas briefs column

(AME Info (Abu Dhabi, United Arab Emirates) (KRT) Via Thomson Dialog NewsEdge) Mar. 20--VLCC RATES UNDER PRESSURE: Rates for Very Large Crude Carriers are under pressure and the market consensus is for a further slide, reported Gulf News. Last week there were 30 VLCC fixtures worldwide and activity for next month has been slow with rates tending downwards.


$10BN PETRORABIGH PROJECT: Work on the $10bn Petrorabigh petrochemical complex in Saudi Arabia started yesterday, reported Reuters. The plant is a joint venture between Saudi Aramco and Sumitomo Chemical Company of Japan and will start production in the second half of 2008.

US STOCKS NO WORRY TO KSA: Saudi Arabia's Oil Minister Ali Al Naimi told a news conference yesterday that the build up of US oil stocks was not a concern and that current oil price levels were not damaging global growth. He said high stocks in uncertain times were normal and would not impact on prices.

ENERGY CITY QATAR LAUNCH: The Energy City Qatar is to be launched on March 21 at the Sheraton Doha Hotel, revealed The Peninsula today. The event will be hosted by Sir David Frost. Energy City Qatar is the Gulf's first hydrocarbon industry business centre for industry leaders in oil and gas production, and is part of the Lusail city project to house up to 200,000 residents.

GDF MULLS $320M IRAN DEAL: Gaz de France told French newspaper Les Echos it was in talks with Total about LNG production projects in Iran. GDF, which is to merge with Suez to form the biggest European gas group, is considering the investment of up to $320m in an 8-10 percent stake in Phase 11 of Iran's South Pars gas field, said the newspaper.

OIL PRICES UP 5 PERCENT TO $63: Oil futures closed just under $63 a barrel on Friday after Opec cut estimates for oil demand growth in 2006, but prices were still up nearly 5 percent for the week. Analysts said traders are now starting to worry more about demand destruction than about supply disruptions.

OPEC LOWERS DEMAND FORECAST: Opec has reduced its demand forecast for oil and expects global refining margins to rebound in the coming months, reported Bloomberg. The cartel's latest bulletin predicts 84.5m bpd demand, down 100,000 bpd on a month ago. Refinery capacity will rise by 850,000 bpd, about half the forecast rise in world demand.

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