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Qatar Energy and ENOC have cemented their relationship with a 10-year condensate supply agreement to boost energy ties between the two countries.
Qatar Energy has announced the signing of a ten-year condensate supply agreement with internationally recognized energy giant Dubai-based ENOC Group as the two Gulf states resume diplomatic relations.
The contract, which includes the supply of 120 million barrels of condensate, was officially signed by the two parties on Monday. The Gulf state is selling Petroleum Products Limited (QPSPP) by Qatar Energy on behalf of Qatar Petroleum. Meanwhile, ENOC subsidiary ENOC Supply & Trading LLC is penned by the UAE.
The agreement, which will come into force in July 2023, underscores Qatar Energy’s strategic drive to establish direct sales with end users and foster lasting business alliances and collaborations.
The deal forms part of a wider historical context. Qatar Energy and ENOC have enjoyed a strong partnership since 2008 and this agreement appears to be a natural progression of their mutually beneficial relationship.
Mr. Saad Sherida Al-Kaabi, Minister of State for Energy Affairs and President and CEO of Qatar Energy, reviewed the progress, emphasizing the importance of the transaction in strengthening the relationship between the two companies sex.
“We are delighted to sign this long-term condensate sales agreement, further strengthening Qatar Energy’s relationship with ENOC, which dates back to 2008. We look forward to building on the historic working relationship and confidence in Qatari condensate exports. Building on that foundation, helping to grow and develop further. The development our partners want to achieve,” he said in a release.
Echoing Al-Kaabi’s sentiments, Saif Humaid Al Falasi, ENOC Group Chief Executive Officer, expressed satisfaction with the strengthening of the alliance, emphasizing ENOC’s commitment to delivering exceptional value to its clients and stakeholders. He further acknowledged ENOC’s vital role in contributing to the UAE’s continued success through global government cooperation.
“We are honored to sign this long-term agreement with Qatar Energy to strengthen the collaboration and partnership between the two organizations, which reaffirms our commitment to delivering outstanding value to our customers and stakeholders,” the official said.
The agreement not only cements the bond between the two entities, but also leaves room for future expansion. Contract terms allow for increased condensate volumes and Qatar is expected to increase exports with the start of the North Field East (NFE) and North Field South (NFS) expansion projects.
The latest signing comes weeks after the UAE and Qatar announced the reopening of their embassies, marking the final step in a rapprochement effort to end the 2017 Gulf Cooperation Council crisis.
In 2017, the UAE joined Saudi Arabia, Bahrain and Egypt in imposing an illegal air, land and sea blockade on Qatar while cutting ties with the country.
At the time, the Quartet accused Qatar of supporting terrorism, although Doha has consistently and vehemently denied these “baseless” allegations.
While the crisis is effectively over with Saudi Arabia signing the Al Ula Declaration in 2021, it will take time for relations between Qatar and the UAE to pick up pace.
Qatar’s foreign ministry said the decision to reopen the embassy was “based on the Ula agreement and the desire of the two countries to strengthen bilateral relations”, referring to the historic 2021 agreement that ended the region’s worst rift.
“Both sides affirmed that this step embodies the will of the leaders of the two countries and consolidates the path of joint Arab action to realize the aspirations of the two brotherly peoples,” the statement added.
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