Emirates seeks Rolls-Royce A380 engine deal, nothing finalized

An Emirates Airbus A380-800 airliner prepares to land at Nice international airport, France, January 18, 2018. (Reuters)
Updated 04 November 2018
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Emirates seeks Rolls-Royce A380 engine deal, nothing finalized

  • The fate of a lifeline order for up to 36 of the double-decker aircraft has been widely questioned due to inconclusive talks over a separate deal between Emirates and engine makers

DUBAI/HONG KONG: Emirates is edging toward a deal with Rolls-Royce to power its latest Airbus A380 superjumbos but has not yet reached a final agreement, the Dubai-based airline said on Sunday.
The fate of a lifeline order for up to 36 of the double-decker aircraft, of which Emirates already has over 100 in operation, has been widely questioned due to inconclusive talks over a separate deal between Emirates and engine makers.
“We are getting closer (to a deal with Rolls-Royce) but have not crossed the line yet,” a spokesperson for the Dubai-based carrier said, asked about the status of negotiations with the British engine maker.
A French newspaper last week reported the two sides had reached an agreement.
Industry sources have said Emirates is unhappy with the performance of Rolls-Royce Trent 900 engines on A380s already in service and that a shortfall in efficiency has meant Rolls-Royce having to pay hefty penalties.
To improve performance and avoid such penalties in future, Rolls-Royce would need to put more R&D spending into the engine at a time when it is mired in delays or reliability problems on engines for the Boeing 787 and the Airbus A330neo.
Engine Alliance, a joint venture between General Electric and Pratt & Whitney that until recently had provided engines for Emirates’ A380 fleet, has shown little interest in reviving output.
Its parent companies are tackling restructuring at GE and delays on smaller Pratt & Whitney engines, industry sources say.
Airline president Tim Clark has reportedly denied suggestions that the airline is slowing down taking delivery of existing A380s, saying delays are due to production problems.
“Unfortunately, quite a few of the A380 deliveries have slipped and they are all compressed in the back end of the year in the next two months, so we are taking them now,” he told the Airline Ratings website.
Reuters reported last week that there were delays in delivering some A380s to Emirates and quoted one source as saying Emirates did not need them for now and had parked a number as part of efforts to manage capacity.
Durability problems affecting Roll-Royce’s Trent 1000 engine have resulted in premature repairs and led to as many as 40 or so Boeing 787s being idle at any time, industry sources say.
The crisis has had a knock-on effect on other programs as Rolls diverts production capacity from the similar Trent 7000 engine, resulting in delays to the Airbus A330neo.


Adnoc signs deal with Eni on Ghasha concession

Updated 13 November 2018
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Adnoc signs deal with Eni on Ghasha concession

  • ADNOC grants Eni 25 percent stake in ultra sour gas project
  • Follows Adnoc award to France's Total

LONDON: The Abu Dhabi National Oil Company (ADNOC) has granted the Italian oil company Eni a 25 percent stake in an off-shore gas mega-project, in a move that will support the emirate’s efforts to become self-sufficient in gas.
The energy company is now in discussions with other potential partners for the remaining 15 percent of the available 40 percent stake in the concession earmarked for foreign companies.
The award covers the Ghasha ultra-sour gas concession just off the coast of the UAE, including the Hail and Dalma and other offshore fields. Eni will contribute 25 percent of the development cost of the project which is likely to cost billions of dollars.
The deal comes just days after ADNOC awarded a 40 percent stake to French oil firm Total on Nov. 11 to explore and develop its Ruwais Diyab unconventional gas concession.
The Ghasha gas fields are estimated to hold trillions of standard cubic feet of recoverable gas, according to a company statement.
Once on stream, the project is expected to produce more than 1.5 billion cubic feet of gas per day. This could provide enough gas to supply electricity to more than 2 million homes, said ADNOC.
The project is set to produce 120,000 barrels of oil and high-value condensate per day once complete, the company said.
“ADNOC is committed to ensuring a stable and economic gas supply to the UAE, which is a core component of our 2030 strategy,” said Sultan Ahmed Al-Jaber, UAE minister of state and ADNOC group CEO.
“Development of our Hail, Ghasha and Dalma ultra-sour gas offshore resources, at commercial rates, will make a significant contribution towards delivering that strategic imperative and bringing forward the day when the UAE will not only be self-sufficient in gas but also transitions to net exporter of gas,” he said.
Eni won its first concession rights in the emirate’s oil and gas sector earlier this year, with Adnoc granting the Italian firm a 10 percent interest in its Umm Shaif and Nasr concession and a 5 percent stake in the Lower Zakum concession in March.
“We are pursuing a strategy of growing in the Middle East and today’s signature is further confirmation of our willingness to root our presence in Abu Dhabi,
following the agreements signed last March, with Adnoc,” said Eni CEO, Claudio Descalzi, in a statement.
ADNOC is exploring opportunities beyond Abu Dhabi, having also signed a framework agreement with the Uzbek energy company, Uzbekneftegaz on Tuesday.
The agreement will see the Gulf company provide advice on Uzbekistan’s upstream and downstream operations.