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Monday, 21 September 2009

Oil expansion plans curbed, says report

OPEC cuts, complex oil reservoirs and uncertainties over concession renewals are hindering Abu Dhabi’s efforts to raise oil production capacity, according to a leading investment bank.

Analysts at Morgan Stanley said the emirate had been “forced to dramatically curb expansion projects” that were supposed to raise its oil production capacity by 40 per cent to 4 million barrels per day (bpd) from 2.85 million bpd by 2015.

“The UAE’s foreign partners, including Total, Shell, BP and ExxonMobil, are reluctant to invest in further idle capacity expansion at a time when they cannot sell what they produce [due to reduced OPEC quotas] and are facing an uncertain outlook regarding the renewal of their concession agreements,” they said in a recent report.

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Bahrain's banks learn hard lessons

The aftershocks of the scandal embroiling the Al Gosaibi and Saad groups continue to ripple across the Gulf.

With the troubled Saudi conglomerates owing an estimated US$3 billion (Dh11.01bn) in the UAE and another $5bn to banks in Saudi Arabia. But the affair is having particularly strong repercussions in neighbouring Bahrain.

The Central Bank of Bahrain (CBB) was forced in July to take control of Awal Bank, owned by the Saad Group, and The International Banking Corporation (TIBC), a unit of Ahmad Hamad Al Gosaibi and Brothers (AHGB), after it became clear that neither bank could meet its loan obligations.

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Cashflow Crisis in UAE: Insolvency & Bankruptcy Insight

Bankruptcy in itself is not a crime in the UAE. A debtor who is unable to pay his debts commits no crime and the Law only provides for certain procedures to be followed in respect of determining and extinguishing his debts. However, the Penal Code does specify certain instances where a trader will be charged for committing a bankruptcy offence that amounts to a crime.

Under the Penal Code, a trader will either be regarded as bankrupt by default or bankrupt by misrepresentation if he/she:

· Conceals, mutilates, falsifies or destroys of his books.

· Falsifies entry in any book or document for any artificial debts.

· Spends on gambling or materially contributes to or increases the extent of insolvency by rash hazardous speculations.

· Payment of debts to some creditors with intent to defend or delay other creditors.

· Failing to keep proper books of account or failing to produce all the books of accounts as are necessary to demonstrate or explain his debts or credits.

Iran shifts currency reserves to euros

Iranian President Mahmoud Ahmadinejad has issued an order to shift the oil-rich Persian Gulf nation's foreign currency reserves from dollars to euro, the semiofficial Mehr news agency reported Sunday.

The order was issued Sept.12 following a decision by the board of trustees of the country's foreign reserves, Mehr said.

Iran has been steadily shifting its foreign exchange reserves away from dollars into other currencies such as the euro as the U.S., leading efforts to isolate Tehran, has ratcheted up sanctions because of a dispute over the country's nuclear program.

Dragon Oil demands ENOC takeover infomation

Dragon Oil is to ask the Irish Takeover Panel to issue an ultimatum to the oil explorer's largest shareholder, Emirates National Oil Company (Enoc), to make a bid for the company or walk away, the Sunday Times said.

The newspaper said the group would request a "put up or shut up" ruling from the panel within the next 10 days if Enoc does not come forward with an offer.

Dubai state-owned Enoc said in June it was considering making an offer at a "modest premium" to secure control of Dragon Oil, in which it already owns 52 percent.

No one at Dragon Oil was immediately available to comment.END

Eid mubarak