Wednesday, May 04, 2005

Coincident brokerage: gas, marriage and Dubai-Abu Dhabit relations- Marketwatch

The protracted negotiations came because Dubai, accustomed to subsidized gas from its oil-rich neighbor in Abu Dhabi, sought to drive down the gas price offered by Dolphin Energy, which operates on a commercial, non-subsidized basis.

Dolphin Energy won't reveal the price at which the agreement was struck, but people aware of the matter have said Dubai wanted a price closer to $1 per million British thermal units, while Dolphin had been pressing for $1.30 per btu.

The Dubai government's leading force, Crown Prince Sheikh Mohammed bin Rashid Al Maktoum, in September 2003 said the emirate could look to Iran or Oman for gas supplies if Dolphin didn't come up with a competitive price.

The agreement resolves years of thorny negotiations that went to the heart of inter-emirate relations.

Coincidentally, news of the deal's signing comes on the eve of a royal wedding uniting the ruling families of Dubai and Abu Dhabi. Wednesday, a daughter of Sheikh Mohammed will marry a son of the late founding president of the U.A.E, Sheikh Zayed.

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