Dolphin Energy & Emirates Petroleum Team Up on Gas Projects

Dolphin Energy Ltd. and Emirates General Petroleum Corp. have signed a memorandum of understanding on the two firms studying the commercial viability of new joint gas ventures in the northern part of the United Arab Emirates.

The two companies will evaluate the potential benefits of the joint use of existing gas distribution equipment, joint gas sales and marketing and future gas transportation systems. The two parties are also in the process of finalizing detailed agreements for Emirates to operate and maintain Dolphin's new gas pipeline from al-Ain city to Fujairah emirate.

Dolphin's 24-inch, 182-kilometer long al-Ain-Fujairah pipeline will be completed by end of this year and will be commissioned during the first quarter of 2004. It will transport natural gas, sourced from Oman, to a new power and desalination plant located on the UAE's east cost, owned by the Fujairah- based Union Water & Electricity.

Dolphin Energy was established to develop long-term energy projects throughout the Persian Gulf countries. It is 51%-owned by the government of Abu Dhabi while Total SA and Occidental Petroleum each hold 24.5% stakes. The state-owned Emirates was established in 1981 to conduct marketing, transportation and storage of petroleum products throughout the U.A.E.