SINGAPORE—The United Arab Emirates will import the country’s first oil cargo from the U.S., two sources familiar with the matter told Reuters, as the OPEC producer sought substitutes to replace Qatari condensate supplies after a diplomatic row.
The UAE halted condensate imports from Qatar after it, along with Saudi Arabia, Egypt and Bahrain, severed diplomatic and transport ties with Qatar after accusing it of supporting terrorism, a claim which Doha denies.
Abu Dhabi National Oil Co (ADNOC) bought a U.S. Eagle Ford condensate cargo in a tender for September arrival, the sources said on July 26.
Specific volumes were not available but the cargo will arrive in a supertanker that can carry up to 2 million barrels of oil, one of the sources said.
ADNOC declined to comment.
ADNOC faced limited options in sourcing for condensate substitutes as strong demand for the ultra-light oil in South Korea and Indonesia tightened supplies in Asia, trade sources said.
This forced the state oil company to look for supplies from other regions, including Eagle Ford condensate from the United States.
ADNOC used to receive 1 million to 1.5 million barrels of Qatari condensate every month under a term agreement with Qatar Petroleum, trade sources said earlier.
Condensate is a byproduct of natural gas production and the oil is processed at refining units to produce mainly naphtha, a petrochemical raw material.
ADNOC earlier bought Khuff condensate from Saudi Arabia to replace Qatari supplies, the trade sources said, but the production volume of this oil is small and it is usually consumed locally.
Upstream A&D firm Detring and multinational investment bank Baird are teaming up to provide strategic advisory and M&A advisory services to midstream energy companies.
The board of a government privatization committee known as PPI met on Aug. 21 to include new companies in a list of potential privatizations.
Concurrent with the Sabalo acquisition, EIV Capital and multiple co-investors “substantially increased” their equity commitment for H2O Midstream to pursue additional growth in the Permian Basin.