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Saudi Arabia foils missile attack on its oil facilities

  • Market: Crude oil, Oil products
  • 05/09/21

Saudi Arabia said early today that it intercepted a ballistic missile and several armed drones fired by Yemen's Houthi rebels at the country's oil-rich eastern province.

One of the missiles intercepted over the eastern city of Dammam overnight scattered shrapnel that injured two children and caused minor damage to 14 houses, according to the Saudi defence ministry.

Yemen's Iran-aligned Houthi group, which has been fighting a Saudi-led coalition in Yemen since 2015, said it had fired the missiles, targeting state-controlled Saudi Aramco facilities in Ras Tanura, close to Dammam, as well as in Jizan and Najran provinces. The Houthi movement said its attack on Ras Tanura, which is home to Aramco's largest oil export loading facilities and a 550 b/d crude and condensate refinery, involved firing eight armed drones and a missile.

Both the Saudi defence ministry and Aramco made no mention of any damage to oil facilities as a result of the attack.

A missile attack in 2019 on Aramco's largest 7mn b/d crude oil processing Abqaiq plant in eastern Saudi Arabia and on the 1.2mn b/d Khurais field forced the temporary shut-in of over 5.5mn b/d of crude output. Although the Houthis claimed responsibility for that attack, it is widely accepted that those missiles were fired from a location north-west of Saudi Arabia, rather than from Yemen to the south of the country.

The Houthi group has stepped up its drone attacks on Saudi Arabia recently, with the Saudis announcing interceptions on an almost daily basis.

Saudi Arabia and its allies, chiefly the UAE, intervened in Yemen in 2015 following the Houthi movement's 2014 ouster of the country's Saudi-backed president Mansour Abd Rabbo Hadi. The UAE has largely withdrawn from the conflict, pursuing its own agenda in southern Yemen through proxy forces.

Saudi Arabia's role is confined to an air campaign and to enforcing a blockade under the UN Verification and Inspection Mechanism for Yemen, which was established in 2016 at the request of Hadi's internationally recognised Yemeni government. It covers vessels sailing to ports not under its control, such as Hodeidah and Saleef, with the aim of preventing arms reaching the Houthis. The Hadi government must approve all vessels for entry to the ports. Civilian casualties have been high, and the blockade has contributed to widespread hunger and malnutrition in Yemen.

UN and US-backed peace talks, which have stalled in recent months, have focused on lifting the blockade on Houthi-controlled ports and Sana'a airport in return for a commitment by the Houthis to holding peace talks.


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Shell takes FID on Nigeria’s Bonga North oil project

Shell takes FID on Nigeria’s Bonga North oil project

Lagos, 16 December (Argus) — Shell has taken a final investment decision (FID) on Nigeria's Bonga North field, aiming for first oil from the deepwater project by 2030. The firm expects crude production from Bonga North to peak at 110,000 b/d but it has not given a timeframe. Bonga North — which currently has estimated recoverable resources of over 300mn bl of oil equivalent (boe) — will involve drilling up to 16 wells and will be tied back to the existing 225,000 b/d Bonga floating production, storage and offloading (FPSO) facility. The FPSO already handles output from the Bonga Main and Bonga North West fields, which started up in 2005 and 2014, respectively. Crude production from the FPSO averaged 120,000 b/d in January-November, with output in November rising by 9pc on the month to 135,000 b/d, according to Nigeria's upstream regulator NUPRC. Shell said modifications to the FPSO will be required to accommodate Bonga North, but a source told Argus today that these will largely be limited to the facility's topsides. The company previously told Argus that a separate and more thoroughgoing FPSO life-extension programme, which "will run well into 2029", had been put in place because the facility was originally designed to operate only until 2025. Shell's Nigerian offshore subsidiary operates the Bonga North project with a 55pc stake under a production-sharing contract with state-owned NNPC. ExxonMobil, TotalEnergies and Italy's Eni are the other project partners with 20pc 12.5pc and 12.5pc stakes, respectively. The Bonga fields are located in Nigeria's OML 118 licence at water depths exceeding 1,000m. In addition to Bonga Main, Bonga North West and Bonga North, the block also holds the undeveloped Bonga South West oil field, which NNPC said will be developed in three phases. Bonga South West will have its own separate FPSO and produce 150,000 b/d at peak between 2027 and 2031, NNPC said. By Adebiyi Olusolape Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Libya declares force majeure at Zawiya refinery


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15/12/24

Libya declares force majeure at Zawiya refinery

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13/12/24

Syria faces fuel supply conundrum

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13/12/24
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Tarmac to receive bitumen at UK Dagenham terminal


13/12/24
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13/12/24

Tarmac to receive bitumen at UK Dagenham terminal

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