SpiceJet Flying Ahmedabad to Muscat

SpiceJet, the Indian discount airline, announced that it will be introducing three weekly direct flights from it base city Ahmedabad to Muscat in Oman as of August

The airline will be using the Boeing 737-800 for the routes, which has a capacity of 189 passengers in economy class, and flights will be available on Monday, Thursday and Friday.

The Oman Airports Management Company is taking actions to improve services and facilities at Muscat International Airport where SpiceJet will be landing from Ahmedabad. OAMC said tht the number of passengers processed at Muscat International rose by 10 percent during the first six months of the year to a healthy 4,122,700. Civic aircraft movements also rose by about the same margin, reaching 39,854 aircraft going through the airport.

OAMC is working hard to create the necessary facilities so that they will attract more air traffic, more airlines and more people in general to the Muscat International and Salalah Airports.

Pipeline Attack Halts Natural Gas Flow From Egypt to Jordan

Egyptian Pipeline Attacked by Militants

In the first bombing of the pipeline in over a year, the flow of natural gas was disrupted from the Sinai Peninsula to Jordan. The attack came after Egyptian president, now former president, Mohammed Morsi was forced from power last Wednesday by Egypt’s military. Morsi, who supports, and is supported by, the Muslim Brotherhood, was elected to head the Egyptian government only one year ago after former President Hosni Mubarak was ousted from power as a result of the “Arab Spring” uprisings in early 2011.

The attack on the pipeline took place just south of the Sinai town of El Arish. The pipeline was attacked several times from early 2011 until a year ago, during the violence that forced Mubarak from power. The pipeline bombing also follows attacks on the regional airport and at security checkpoints in recent days.

No casualties were reported as a result of the bombing, which was perpetrated by unidentified militants who detonated explosives, causing a fire and damaging the pipeline. The Egyptian army has declared a state of emergency in certain areas along the Suez shipping route after the attack on the airport in the vicinity caused fear that oil exports would be disrupted. The price of crude oil rose as a result of the uncertainty.

Abu Dhabi Company wins Contract to Construct Pipelines for Omani Oil Company

According to the Emirates News Agency, the Oman Oil Company Exploration and

Said bin Ahmed Al-Shanfari, Oman’s Minister of Petroleum and Minerals

Production LLC (OOCEP) awarded a $40 million contract to National Petroleum Construction Company (NPCC.)

OOCEP is an oil and gas subsidiary of Oman Oil Company. The deal is a procurement and construction (EPC) contract for the installation of two new offshore pipelines in the area of Musandam.

The planned offshore pipeline will bring in imported well liquids from the Bukha field to the Musandam Gas Plant to be processed. There will also be an offshore export pipeline built to bring natural gas from Musandam to Saqr Port in Ras al Khaimah.

The combined length of the two pipelines is over 30 kilometers. They will be installed below water as deep as 90 meters in places.

This coveted contract, worth almost $40 million will give NPCC a much-desired entry into the profitable Omani market. The contract matches the company’s business plan and expansion strategy.

NPCC was formed in 1973, is based in Abu Dhabi, and is owned in partnership with UAE’s Senaat (70 percent) and Consolidated Contractors International.

Oman Says No to Nuclear Power

Fukushima Nulear Power Plant After Earthquake

The Omani representative to the International Atomic Energy Agency (IAEA) explained to an audience in Oman that the Sultanate has made the decision that it will not pursue the development of nuclear power as a source of electricity. It has not, however, ruled out Omani research into the use of nuclear power for scientific and medical purposes.

Oman’s Ambassador to Austria and permanent member of the IAEA, Dr. Badr bin Mohammed al Hinai said Oman came to this decision as a result of the Japanese nuclear disaster at Fukushima two years ago.

“After the Fukushima accident and following the safety and security concerns of establishing a nuclear program, Oman followed the examples of other countries such as Japan and Germany not to pursue a nuclear program but instead, to benefit from nuclear power applications.

“Let us mention that Oman is also seeking alternative sources of energy in solar, wind and wave energy, due to the propitious climate and geography of the region.”

Dr. Al Hinai was speaking at the third annual three-day Oman Power and Water Summit, jointly sponsored by the IQPC Middle East and Global Exhibitions and Conferences (GEC) together with the Public Authority for Electricity and Water.

Arab Spring Countries Need $30 Billion Boost

Still Recovering from the Upheavals of the Arab Spring

Masood Ahmad, chief of the International Monetary Fund’s Middle East and Central Asia Department, believes that several Arab countries involved in the upheaval of what was termed the “Arab Spring” of 2011 need a significant infusion of funds to regain stability and develop positively.

“The $30 billion finance should go to several countries that are witnessing instability including Jordan, Morocco, Yemen, Egypt, Tunisia except Syria,” Ahmad said.
Ahmad was addressing the media at the Annual Meeting of Arab Financial Institutions and the Fourth Meeting for the Council of Arab Finance Ministers.

“The situation in Syria is not clear enough and we can’t come out with a final evaluation for their financial needs,” he added.

Syria’s problems are centered more on the humanitarian issues, and that tragedy needs the immediate attention of the Arab community.

“We still have spillover cost attached to neighboring countries in terms of refugees and trade loss in these countries,” Ahmad explained.

The IMF head also said that his organization is not the only one that can give financial support to the Arab Spring countries. The GCC has participated, and should continue to participate in support of countries in the region. Other financial institutions in the area should also continue to help.

CEO Pearce of Oman Air Adding Aircraft to Fleet

Oman Air Adding New Planes to Fleet

Chief Executive of Oman Air, Wayne Pearce said that his company was taking a closer look at a follow-on order for Boeing Company’s 787 Dreamliner. Pearce, who has been CEO of Oman Air for 15 months, explained that increasing the airline’s fleet would allow the national carrier of Oman to increase its number of routes to European destinations.

Oman Air is also examining the addition of the Boeing 737 aircraft to increase service to the Middle East and India. This addition is part of the airlines plans to increase its number of planes to 50 from the present number of 42 which are already in operation or are ready to be delivered.

Pearce’s decision to incorporate the Boeing 787s into Oman Air’s fleet is a much needed vote of confidence in the beleaguered 787, which has not had a purchase order since it was grounded due to battery problems on January 16. The acquisition will likely be confirmed within the next several months. The 787s would boost up Oman’s fleet of six 737-800s and its six Dreamliners which are scheduled to arrive at the end of 2014 and from 2015.

"You need a bigger fleet to get the critical mass," Pearce said. "With a bigger magnitude you get better profitability, and we're in an ideal part of the world with plenty of opportunity to keep growing."

Tourism Growing in Oman

The mild Omani climate coupled with the Muscat Festival and the Tour of Oman has helped to create a surge in visitors to the Sultanate. As the tourists visit some of Oman’s most famous sites and landmarks they are helping increase revenue to the country.

Boats baring visitors from such faraway lands as Germany, Italy and Sweden are docking at the Port Sultan Qaboos and dropping off tourists by the hundreds, and then bringing them all along the coast of Oman and elsewhere.
The tourism sector of the economy has been a major contributor of late to the general rise in Oman’s GDP.

According to the Muscat-based tour agency Nishad,

“The tourist inflow to the country is tremendous this year and what makes the total visitors different this time is the fact that they are from various countries ranging from Italy, Germany, France, Greece, and South Africa unlike last time where majority was from Germany”.

Water Desalination Plant Contracts Signed

The Oman Power and Water Procurement Company signed a deal with the Muscat City Desalination Company to begin construction on the Al Ghubrah Independent Water Project (IWP) at a ceremony attended by dignitaries and government officials related to the project.

Contract signatories include Chairman Saud bin Nasser al Shukaily of the Oman Power and Water Procurement Company and Chairman Habib Husain of the Muscat City Desalination Company.
The Al Ghubrah IWP will be the second such facility to be constructed in Oman, the first being in Sur in the Sharqiyah area, completed in 2009.

The Al Ghubrah IWP is expected to have the ability to put out about 42 million gallons of potable water each day. This plant will be a welcome addition to the sources of water in the area, which will be taxed by the growing population and development of the region in particular and the Sultanate in general.

Construction is expected to take just under two years and to go into service by October, 2014. The technology used in the desalination process will be reverse osmosis. Underwater intake pipes will be utilized to bring in salty sea water to the facility, whose design has been thoughtfully planned to blend in naturally with the residential neighborhood in which it will reside.

Oman Boosting Healthcare Budget for 2013

The government of Oman is planning on increasing funds allocated for healthcare by 9.4 percent over what was spent in 2012, officials announced. In 2012 Oman spent RO 500 million, and plans to spend RO 547 million this coming year. That figure would make the healthcare expenditure about five percent of the total budget for Oman for the year, which is RO 12.9 billion.

Total number of hospital beds is also expected to increase in 2013. A new hospital is planned for construction in Mahout at a cost of about RO 8 million. The Jalan Central Hospital will cost about RO 35 million, set to be built in South Sharqiyah. Also being planned are several regional health centers in various local authorities in Oman at a cost of about RO 6.4 million.

His Excellency Dr. Ahmed bin Mohammed bin Obaid al Saeedi, Health Minister of Oman, said that the country should have their plan for the 2050 health system ready during the first half of 2013.

Overall Gas Supply in MENA to Last 30 Years

Natural Gas Reserves

While the gas supply in some Middle East and North African countries is being depleted, the overall amount of proven gas supplies in other areas of MENA is estimated to sustain the region in gas for the next thirty years, and beyond.

According to the Saudi-based Arab Petroleum Investment Corp (APICORP) there are 26.6 trillion cubic meters (tcm) of undiscoverable gas deposits in the region, and 88 trillion tcm of proven natural gas deposits, enough to last over 30 years at current production rate growths. APICORP is an affiliate of the 10-nation Organization of Arab petroleum Exporting Countries (OAPEC.)

The majority of the proven gas reserves are in the UAE, Iran Qatar, Saudi Arabia and Algeria, representing about 42 percent of the world’s total gas supply.

"For a production growth of 6.9 per cent a year, which corresponds to the last 10-year average, future volumes from remaining reserves would last 33 years….this is just above the conventional 30-year time horizon for strategic planning in the field of exploration and development (E&D)," APICORP's senior consultant Ali Aissaoui wrote in a five-page study.

"Our findings confirm and extend our previous results showing that on aggregate MENA proved reserves are substantial and their combined dynamic life is a little beyond the traditional 30-year strategic planning horizon for E&D."