24 November 2004
MADRID -- Oman Oil Company (OOC) has signed an agreement with Union Fenosa Gas and Union Fenosa to acquire 7.5 per cent of its shares in Saggas, which was incorporated to build Sagunto Regasification terminal in Valencia, Spain, with a total cost of $432 million.
The agreement was signed on behalf of OOC by its CEO Ahmed bin Salim Al Wahaibi, and on behalf of Union Fenosa and Union Fenosa Gas by its CEO Elias Velasco, and its CEO Angelo D. Abundo, respectively.
Wahaibi said that "our participation in Sagunto is part of OOC's investment strategy to expand its investments in other countries to invest in international energy and energy related projects with companies that have vast international expertise in the energy sector."
Wahaibi has also clarified that this investment is a new addition to OOC investment in Spain, where OOC purchased 10 per cent shares of Compania Logistica de Hidrocaburos S.A. (CLH), the largest petroleum and logistics company in Spain.
This agreement arises from the government of Oman efforts to enhance and develop investment cooperation with Union Fenosa Gas which recently has acquired an interest in the Qalhat LNG project in Oman as well as one of the main off takers of the natural gas from Qalhat LNG terminal.
Union Fenosa de Gas, considered one of the major companies in importing and supplying gas in Spain, is jointly owned by ENI of Italy and Union Fenosa of Spain, both internationally recognised companies in the energy sector.
The Sagunto regasification terminal consists of green-field regasification terminal and port facilities to be constructed in the port of Sagunto, along with a gas spur line that will tie the terminal facilities to local industrial consumers and to the Spanish gas grid.
The project itself is currently under construction and is scheduled to start commercial operation by the beginning of the second quarter of 2006.
Spain is considered the third largest importer of gas in the world after Japan and South Korea. In 2003 it consumed 23 billion M3 of gas. From this Spain only produces one per cent of its total demand. It is also a known fact that the percentage of gas demand in Spain from the total fuel consumption has risen from 6 per cent in 1990 to 16 per cent in 2003 and is expected to reach 18 per cent in 2004.
Union Fenosa is Spains's third largest electric utility. The company serves 3.2 million customers and has 5,700mw of generating capacity in Spain. The company's regulated power distribution assets are located in the Spanish provinces of Castillay Leon, Castilla-la Mancha, Madrid, and Galicia. Union Fenosa also has international utility interests: other operations include natural gas production and supply, telecommunications, professional services, and industrial, mining, real estate, and technology investments.
OOC is 100 per cent owned by the government of Oman. The company was created in 1992 to give the government another 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 role in the Sultanate's efforts to diversify the Omani economy and help 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. These include gas transmission, petroleum retailing, refining, petrochemicals and aluminum smelting.
Outside Oman, OOC has interests in exploration and production, crude oil pipelines and petroleum product logistics. -- ONA
MADRID -- Oman Oil Company (OOC) has signed an agreement with Union Fenosa Gas and Union Fenosa to acquire 7.5 per cent of its shares in Saggas, which was incorporated to build Sagunto Regasification terminal in Valencia, Spain, with a total cost of $432 million.
The agreement was signed on behalf of OOC by its CEO Ahmed bin Salim Al Wahaibi, and on behalf of Union Fenosa and Union Fenosa Gas by its CEO Elias Velasco, and its CEO Angelo D. Abundo, respectively.
Wahaibi said that "our participation in Sagunto is part of OOC's investment strategy to expand its investments in other countries to invest in international energy and energy related projects with companies that have vast international expertise in the energy sector."
Wahaibi has also clarified that this investment is a new addition to OOC investment in Spain, where OOC purchased 10 per cent shares of Compania Logistica de Hidrocaburos S.A. (CLH), the largest petroleum and logistics company in Spain.
This agreement arises from the government of Oman efforts to enhance and develop investment cooperation with Union Fenosa Gas which recently has acquired an interest in the Qalhat LNG project in Oman as well as one of the main off takers of the natural gas from Qalhat LNG terminal.
Union Fenosa de Gas, considered one of the major companies in importing and supplying gas in Spain, is jointly owned by ENI of Italy and Union Fenosa of Spain, both internationally recognised companies in the energy sector.
The Sagunto regasification terminal consists of green-field regasification terminal and port facilities to be constructed in the port of Sagunto, along with a gas spur line that will tie the terminal facilities to local industrial consumers and to the Spanish gas grid.
The project itself is currently under construction and is scheduled to start commercial operation by the beginning of the second quarter of 2006.
Spain is considered the third largest importer of gas in the world after Japan and South Korea. In 2003 it consumed 23 billion M3 of gas. From this Spain only produces one per cent of its total demand. It is also a known fact that the percentage of gas demand in Spain from the total fuel consumption has risen from 6 per cent in 1990 to 16 per cent in 2003 and is expected to reach 18 per cent in 2004.
Union Fenosa is Spains's third largest electric utility. The company serves 3.2 million customers and has 5,700mw of generating capacity in Spain. The company's regulated power distribution assets are located in the Spanish provinces of Castillay Leon, Castilla-la Mancha, Madrid, and Galicia. Union Fenosa also has international utility interests: other operations include natural gas production and supply, telecommunications, professional services, and industrial, mining, real estate, and technology investments.
OOC is 100 per cent owned by the government of Oman. The company was created in 1992 to give the government another 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 role in the Sultanate's efforts to diversify the Omani economy and help 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. These include gas transmission, petroleum retailing, refining, petrochemicals and aluminum smelting.
Outside Oman, OOC has interests in exploration and production, crude oil pipelines and petroleum product logistics. -- ONA
© Times of Oman 2004
