Dolphin will Buy Omani Gas - UWEC will be the Customer

Two Signing Ceremonies Cement First Cross-Border Gas Deal


Abu Dhabi UAE, February 6, 2003 – Dolphin Energy Limited (DEL) has announced the signature of key contractual gas purchase and sales agreements (GPSAs) – covering the purchase of Omani natural gas from 4th Quarter 2003, and onward sale of this gas to the Fujairah customer: Union Water & Electricity Company - PJSC (UWEC).
 
Signing ceremonies were held in Abu Dhabi on Wednesday February 5 with UWEC and on Thursday February 6 with Oman Oil Company (OOC).
 
DEL is currently constructing a 182 kilometer, 24-inch pipeline which will link Al Ain with Fujairah, on the UAE East Coast, in the 4th Quarter of 2003. Thereafter, OOC will supply the contracted quantities of gas at the Oman-UAE border near Al Ain – from where it will flow, via the Dolphin line, to UWEC’s new power and desalination plant in Fujairah.
 
Dolphin Energy’s sales and purchase agreements -- with, respectively, gas customer and gas supplier -- are for a term of 3.5 to 5 years. Dolphin’s own gas supplies from Qatar will start to flow by undersea line to the UAE in 2006, replacing the Omani gas.
 
The border pipeline connection can thereafter be used to supply Qatari gas to Oman – as and when required.
 
In Abu Dhabi, Dolphin Energy CEO Ahmed Ali Al Sayegh signed the agreement to supply the Omani gas with UWEC Board Member Mohamed Saif Al Mazrouei and the agreement to receive the gas with the CEO of OOC, David Douglas.
 
For Dolphin Energy, Mr Al Sayegh commented: “Further to the Memoranda of Understanding (MOUs) that we had earlier signed with each company, we were quickly able to finalize gas sales and purchase agreements with both UWEC and OOC.
 
“Dolphin is delighted to have been able to resolve the detailed issues involved in each case, and to have signed these landmark agreements.”
 
UWEC Board Member Mohamed Saif Al Mazrouei commented: “We have worked with Dolphin for many months towards this day, and we look forward to a long and constructive business relationship.”
 
“Oman Oil Company is proud to be part of the pioneering strategy for a Gulf gas grid. Our contribution in supplying natural gas to Dolphin Energy is an important first step in this process,” said David Douglas, CEO of OOC.
 
The new Dolphin pipeline will initially provide up to 135 million cubic feet per day (mcf/d) on average of natural gas to service UWEC’s forthcoming 656 MW power generation plant and its associated 100 million gallon a day (mg/d) desalination project. Dolphin’s contractor is Dodsal Ltd of India.
 
-Ends-
 
Dolphin Energy Limited
Dolphin Energy Limited (DEL) was created to develop substantial energy projects throughout the GCC. Its objective is to create long-term economic wealth and new business opportunities, far into the future.
 
DEL’s major strategic initiative, the Dolphin Project, involves the production and processing of natural gas from Qatar’s North Field, and transportation of the dry gas by pipeline to the UAE, beginning in 2006. Dolphin Energy’s first energy initiative comes on stream in 4th Quarter 2003, when DEL’s natural gas pipeline from Al Ain to Fujairah is inaugurated. This pipeline will supply a new power and desalination plant on the UAE’s East Coast – initially with natural gas from Oman, and subsequently with Dolphin gas from Qatar.

© Press Release 2003