Dolphin Energy (DEL) has signed a Memorandum of Understanding (MoU) with the Oman Oil Company (OOC) to supply natural gas to the Sultanate.
The MoU provides for the creation of a Joint Steering Committee and Working Group to immediately negotiate Heads of Agreement (HOA) and then a Gas Sales and Purchase Agreement (GSPA) within the next 12 months, stated a press release. Details to be established by the Joint Steering Committee will include the commencement dates for gas deliveries to Oman, gas quantities and price.
Since January, DEL has been taking delivery of natural gas from Oman, under a contract with Oman Oil Company which provides for supply of an average 135 million cubic feet per day. This is for DEL's first energy initiative – to deliver gas through its new Al-Ain-Fujairah pipeline to the Qidfa power and desalination plant of Union Water & Electricity Company (UWEC) on the UAE East Coast.
The Omani gas is delivered at a purpose-built tie-in junction on the Oman-United Arab Emirates (UAE) border near Al-Ain. This junction was conceived and constructed so that in future years the flow of gas from Oman to the UAE could be reversed, if required – once DEL begins to receive its own substantial quantities of gas from Qatar in 2006.
OOC is a commercial company 100 percent owned by the Government of Oman. The company was created in 1992 to give the government a vehicle for pursuing investment opportunities in the energy sector both inside and outside Oman. Through participation in energy and energy related projects, OOC plays a critical role in the Sultanate's efforts to diversify the Omani economy and to generate Omani and foreign private sector investment.
In Oman, OOC has interest in numerous projects that are either in operation, under construction or under development including projects in gas transmission, petroleum retailing, refining, petrochemicals and aluminium smelting. — (menareport.com)
© 2004 Mena Report (www.menareport.com )