Identifier
Created
Classification
Origin
07ABUDHABI1163
2007-07-12 14:45:00
CONFIDENTIAL
Embassy Abu Dhabi
Cable title:
DOLPHIN GAS ARRIVES IN UAE & ABU DHABI CONSIDERS
how-toVZCZCXRO0799 PP RUEHDE DE RUEHAD #1163 1931445 ZNY CCCCC ZZH P 121445Z JUL 07 FM AMEMBASSY ABU DHABI TO RUEHC/SECSTATE WASHDC PRIORITY 9340 INFO RUEHLO/AMEMBASSY LONDON PRIORITY 1201 RUEHFR/AMEMBASSY PARIS PRIORITY 1013 RUEHDE/AMCONSUL DUBAI PRIORITY 7166 RHMFISS/DEPT OF ENERGY WASHINGTON DC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY RHEHNSC/NSC WASHDC PRIORITY RHEHAAA/WHITE HOUSE WASHINGTON DC PRIORITY
C O N F I D E N T I A L ABU DHABI 001163
SIPDIS
SIPDIS
DEPT FOR NEA/ARP, EEB/ESC/IEC/EPC
WHITE HOUSE FOR OVP
E.O. 12958: DECL: 07/12/2017
TAGS: EPET ENRG ECON AE
SUBJECT: DOLPHIN GAS ARRIVES IN UAE & ABU DHABI CONSIDERS
FUTURE OIL CONCESSIONS
REF: A. ABU DHABI 1021
B. ABU DHABI 539
C. 06 ABU DHABI 4325
Classified By: Ambassador Michele J. Sison for reasons 1.4 (b & d).
C O N F I D E N T I A L ABU DHABI 001163
SIPDIS
SIPDIS
DEPT FOR NEA/ARP, EEB/ESC/IEC/EPC
WHITE HOUSE FOR OVP
E.O. 12958: DECL: 07/12/2017
TAGS: EPET ENRG ECON AE
SUBJECT: DOLPHIN GAS ARRIVES IN UAE & ABU DHABI CONSIDERS
FUTURE OIL CONCESSIONS
REF: A. ABU DHABI 1021
B. ABU DHABI 539
C. 06 ABU DHABI 4325
Classified By: Ambassador Michele J. Sison for reasons 1.4 (b & d).
1. (SBU) Dolphin Energy announced on July 10 that it was now
sending natural gas from its production wells in Qatar's
North field to the UAE. According to the press release,
Dolphin Energy is now processing the gas at its "dedicated
gas processing plant in Qatar's Ras Laffan Industrial City -
then transporting the refined methane by sub sea export
pipeline" to Abu Dhabi. Occidental Development President Rolf
Monjo told Econchief that Dolphin would increase to full
production of two billion cubic feet per day as quickly as
the engineers allow. We have previously heard that Dolphin
hopes to be fully operational by first quarter 2008.
2. (C) Hamed Hurr Al-Suwaidi, Abu Dhabi Finance Department
Undersecretary and member of Abu Dhabi's Supreme Petroleum
Council (SPC) told Econchief on July 8 that the SPC and the
Abu Dhabi National Oil Company (ADNOC) were planning for the
2014 expiration of the Abu Dhabi Company for Onshore Oil
Operations (ADCO) concession. He said that ADNOC was
currently planning to break up the concession into smaller
blocks. This would allow IOC's operate their own blocs in
partnership with ADNOC, which Al-Suwaidi speculated, could
address some companies' concerns. Currently competitors such
as ExxonMobil and BP are also partners in ADCO, and Exxon has
expressed some concerns about having its proprietary
technology leak to its partners/competitors. ADNOC Deputy
CEO Abdulla Nasser Al-Suwaidi had previously told Econchief
that breaking up the concession would also allow more IOC's
the opportunity to partner with ADNOC.
3. (C) Comment: The long-awaited Dolphin launch should help
alleviate some of the UAE's near term gas needs, assuming
that it grows to full capacity on schedule. ADNOC had been
blending 600 million cubic feet of its own gas with "early
gas" from Qatar Petroleum that Dolphin had been transporting
to Dubai. ADNOC had planned to stop providing this gas this
summer once Dolphin began providing its own gas, which would
enable it to provide more gas to Abu Dhabi's own power needs
(ref b). In the longer term, however, rapid UAE growth is
expected to drive demand higher than what Dolphin can meet.
The upcoming expiration of the ADCO concession will
complicate ADNOC plans to increase oil production capacity as
IOC partners weigh significant capital investments against
the relatively short remaining life of the concession. End
Comment.
SISON
SIPDIS
SIPDIS
DEPT FOR NEA/ARP, EEB/ESC/IEC/EPC
WHITE HOUSE FOR OVP
E.O. 12958: DECL: 07/12/2017
TAGS: EPET ENRG ECON AE
SUBJECT: DOLPHIN GAS ARRIVES IN UAE & ABU DHABI CONSIDERS
FUTURE OIL CONCESSIONS
REF: A. ABU DHABI 1021
B. ABU DHABI 539
C. 06 ABU DHABI 4325
Classified By: Ambassador Michele J. Sison for reasons 1.4 (b & d).
1. (SBU) Dolphin Energy announced on July 10 that it was now
sending natural gas from its production wells in Qatar's
North field to the UAE. According to the press release,
Dolphin Energy is now processing the gas at its "dedicated
gas processing plant in Qatar's Ras Laffan Industrial City -
then transporting the refined methane by sub sea export
pipeline" to Abu Dhabi. Occidental Development President Rolf
Monjo told Econchief that Dolphin would increase to full
production of two billion cubic feet per day as quickly as
the engineers allow. We have previously heard that Dolphin
hopes to be fully operational by first quarter 2008.
2. (C) Hamed Hurr Al-Suwaidi, Abu Dhabi Finance Department
Undersecretary and member of Abu Dhabi's Supreme Petroleum
Council (SPC) told Econchief on July 8 that the SPC and the
Abu Dhabi National Oil Company (ADNOC) were planning for the
2014 expiration of the Abu Dhabi Company for Onshore Oil
Operations (ADCO) concession. He said that ADNOC was
currently planning to break up the concession into smaller
blocks. This would allow IOC's operate their own blocs in
partnership with ADNOC, which Al-Suwaidi speculated, could
address some companies' concerns. Currently competitors such
as ExxonMobil and BP are also partners in ADCO, and Exxon has
expressed some concerns about having its proprietary
technology leak to its partners/competitors. ADNOC Deputy
CEO Abdulla Nasser Al-Suwaidi had previously told Econchief
that breaking up the concession would also allow more IOC's
the opportunity to partner with ADNOC.
3. (C) Comment: The long-awaited Dolphin launch should help
alleviate some of the UAE's near term gas needs, assuming
that it grows to full capacity on schedule. ADNOC had been
blending 600 million cubic feet of its own gas with "early
gas" from Qatar Petroleum that Dolphin had been transporting
to Dubai. ADNOC had planned to stop providing this gas this
summer once Dolphin began providing its own gas, which would
enable it to provide more gas to Abu Dhabi's own power needs
(ref b). In the longer term, however, rapid UAE growth is
expected to drive demand higher than what Dolphin can meet.
The upcoming expiration of the ADCO concession will
complicate ADNOC plans to increase oil production capacity as
IOC partners weigh significant capital investments against
the relatively short remaining life of the concession. End
Comment.
SISON