UAE-Qatar conflict instigates the former to authorize its first condensate supply from the United States
Date: 2017-07-27   Author: Saipriya Iyer  Category: #news

UAE-Qatar conflict instigates the former to authorize its first condensate supply from the United States

The United Arab Emirates (UAE) has recently purchased a cargo of condensate from the Eagle Ford – the premier liquids-rich development located in Texas. As per sources, this deal is the first acquisition of the UAE from the U.S., following the disastrous Qatar crisis, that was acknowledged as one of the most disturbing altercations of recent times. Post cutting off all official relations with Qatar, the Arabian Peninsula nation has been undertaking consistent efforts to replace its condensate supply which it would previously acquire from Qatar. The U.S. thus stands to receive one of the first offers for oil supply from the UAE.

The Abu Dhabi National Oil Company (ADNOC), the state-owned oil & gas market giant, has signed a tender that declares the purchase of a condensate cargo from the Eagle Ford, which will be delivered to the country in September. While no official confirmation has been provided about the volume of the acquisition, reliable sources cite that the cargo would arrive in a supertanker with a capacity of holding at least 1 million barrels of oil.

Backing up a little for the uninitiated, the May of 2017 witnessed the state-run Qatar News Agency being hit by a disastrous cyberattack, through which articles shedding a positive light on Israel, Hamas, the Muslim Brotherhood, and Iran, came to the fore. The articles sparked a furor among Saudi Arabia, UAE, and other Middle East countries, sowing the seeds of perpetual animosity in the Arabian Peninsula. The UAE, among the many nations, was the one that openly accused Qatar of attempting to destabilize the Middle East economy by supporting "terrorist, extremist and sectarian organizations,". Post the crisis, most of the Arab allies, including Saudi Arabia and the UAE, cut off all diplomatic relations with Qatar, dropping a bombshell across the globe.

At the onset of July, the CEO of Qatar Petroleum had stated that ADNOC had facilitated the halting of the Qatari condensate shipments. The company also stated that it would contemplate legal action over what it considers a deliberate counterstroke of sorts. As per sources, ADNOC had been receiving up to 1.5 million barrels of condensate from Qatar every month. Post the Qatari disaster, however, ADNOC has tried to replace the condensate supplies with Saudi Arabia’s condensate production from Khuff. However, the production of Khuff is reportedly intended solely for domestic consumption, which has led ADNOC to strike a deal with the United States for oil supply.

For the record, ADNOC has a constrained range of condensate suppliers currently, since supplies across the Asian continent have been tightened subject to the surging oil demand from Indonesia and South Korea. With the Qatar crisis still being a grist for the gossip mills, it remains to be seen how the other Arabian nations earlier depending on Qatari supplies call in the shots to purchase oil from other nations.



About Author


Saipriya Iyer

Saipriya Iyer

Saipriya Iyer currently works as a content developer for AlgosOnline. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her belt, she has dabbled with website...

Read More

More from Saipriya


Post Recommendents

Tata Steel to remove 3,000 employees from its Europe business
Author: Pankaj Singh

Tata Steel, a renowned Indian steel manufacturing company reportedly announced that it plans to cut 3,000 jobs from its European business. The move comes as a part of the company’s plan to put an end to the reduc...


Radpay’s valuation reaches $10.2 million after seed funding round
Author: Shikha Sinha

  • In a first, the company has secured funding from outside source
     
  • The two prominent investors included BlockLaunch and Resiliency Ventures
     
WeWork to lay off at least 4000 employees to reach financial stability
Author: Saipriya Iyer

WeWork, a renowned US-based commercial real estate firm, is reportedly planning to lay off more than 4,000 employees this month. Through this step, the company is looking to gain financial stability as it continues to ...