Dolphin Energy Inks Deal with Oman Oil to Supply Gas to the

Dolphin Energy Limited has signed a Memorandum of Understanding (MOU) with Oman Oil Company, with a view to supply natural gas to the Sultanate of Oman.

The MOU provides for the creation of a Joint Steering Committee and Working Group to immediately negotiate Heads of Agreement (HOA) and then a Gas Sales and Purchase Agreement (GSPA) within the next 12 months.

Details to be established by the Joint Steering Committee will include the commencement dates for gas deliveries to Oman, gas quantities and price.

Since January 2004, Dolphin Energy has been taking delivery of natural gas from Oman, under a contract with Oman Oil Company which provides for supply of an average 135 million cubic feet per day. This is for Dolphin’s first energy initiative – to deliver gas through its new Al Ain-Fujairah pipeline to the Qidfa power and desalination plant of Union Water & Electricity Company (UWEC) on the UAE East Coast.

The Omani gas is delivered at a purpose-built tie-in junction on the Oman-UAE border near Al Ain. This junction was conceived and constructed so that in future years the flow of gas from Oman to the UAE could be reversed, if required – once Dolphin begins to receive its own substantial quantities of gas from Qatar in 2006.