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Thursday, 15 November 2012

TEXT - Fitch affirms Abu Dhabi Islamic Bank ratings | Reuters

(The following statement was released by the rating agency)
Nov 15 - Fitch Ratings has affirmed Abu Dhabi Islamic Bank's
(ADIB) Long-term Issuer Default Rating (IDR) at 'A+' with a Stable Outlook and
Viability Rating (VR) at 'bb'. A full list of rating actions is at the end of
this release.
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Why The US Won't Surpass Saudi Arabia As Largest Oil Producer |

The International Energy Agency's World Energy Outlook (WEO) says the US could overtake Russia and Saudi Arabia before 2020 to become the world's largest oil producer.
The WEO finds that the extraordinary growth in oil and natural gas output in the United States will mean a sea-change in global energy flows. In the New Policies Scenario, the WEO's central scenario, the United States becomes a net exporter of natural gas by 2020 and is almost self-sufficient in energy, in net terms, by 2035.

North America emerges as a net oil exporter, accelerating the switch in the direction of international oil trade, with almost 90 percent of Middle Eastern oil exports being drawn to Asia by 2035, the report said.

Saudi would need $320 oil in 2030 unless curbs demand: Report - The Economic Times

Saudi Arabia will need steadily higher crude oil prices to balance its budget, reaching $320 per barrel by 2030, unless it curbs domestic oil consumption, an economist and specialist on the kingdom said as reported by an industry newsletter.

International Oil Daily (IOD) reported that Brad Bourland, a private consultant and former chief economist at Saudi Arabia-based Jadwa Investment and Samba Financial, had outlined three trends that would make it hard for Riyadh to meet its fiscal obligations: a 1.5 percent rise in demand for Saudi oil per year; a 6 percent annual increase in domestic consumption; and state budgetary spending growth of 7 percent per year, in line with historical patterns.

Bourland's comments echoed the view of other experts that soaring Saudi energy consumption will cut into the kingdom's oil exports in the next two decades, with major implications for global markets.

UPDATE 1-Big Turkmen field to produce gas next year - Yahoo! News Maktoob

Turkmenistan plans to begin production at the world's second-largest gas field next year, a senior Turkmen official said, opening up new EU- and U.S.-backed supply routes to Europe and Asia at the risk of Russian
The Central Asian nation plans to build two pipelines to carry gas from the Galkynysh field. One would run to Pakistan and India and the other would cross the Caspian Sea en route to the European Union, easing the bloc's dependence on Russian gas.
"We can launch industrial output at Galkynysh next year," the Turkmen government official, who declined to be named because he is not authorised to speak publicly on the matter.
"Right now, three gas-processing plants are being built, and two of them are certain to be ready in January or February," he said on the sidelines of an energy conference.

Gazprom ready for South Stream | beyondbrics

Gazprom has been putting the final investment agreements in place for the South Stream project, clearing the way for construction of the 63bn cubic metres a year pipeline to Europe to begin next month. Never mind that demand for Russian gas in Europe is falling, or the $19bn cost of South Stream. The pipeline will help free Gazprom from dependence on Ukrainian transit pipelines and improve European energy security.

Gazprom and its foreign partners took a final investment decision on the 900km offshore section of South Stream at a meeting in Milan late on Wednesday. The pipeline will be laid on the bed of the Black Sea and will link southern Russia with the coast of Bulgaria.

On Thursday, Gazprom signed an agreement with the Bulgarian state energy company for construction of the onshore section crossing the Balkan country, which will mark the first leg of the pipeline’s trajectory across southern and central Europe. First gas deliveries will begin in 2015 and eventually build to 63bn cubic metres a year.

Qatar backing puts Glencore's Xstrata deal on track | Reuters

Commodity trader Glencore's $32 billion takeover of Swiss miner Xstrata looked set to go ahead after winning the backing of Qatar Holdings, the bid target's second-largest shareholder.

Qatar, an unexpected kingmaker in Glencore's bid for Xstrata, said on Thursday it would vote for two key resolutions on the takeover, which is aimed at creating a mining and trading powerhouse.

In a snub to Xstrata management, Qatar said it will abstain from voting on a multimillion-pound management retention plan, which increases the chances of that aspect of the deal being voted down.

U.A.E. Bank Margins Reduced as Lending Slows: Arab Credit - Bloomberg

United Arab Emirates’ banks, struggling with bad loans after Dubai teetered on the brink of default in 2009, are seeing profit margins shrink as lending slows and falling interest rates curb gains on investments.
The net interest margin, the difference between what banks earn from loans and what they pay on liabilities such as customer deposits, has dropped for the top five U.A.E. lenders this year, according to data compiled by Bloomberg. The measure at Emirates NBD PJSC (EMIRATES), the U.A.E.’s biggest bank by assets, slipped to 2.35 percent in the third quarter, from 2.85 percent at the end of the year. Second-ranked National Bank of Abu Dhabi PJSC posted a decline to 2.16 percent, from 2.4 percent.

Kuwait telco Viva still not listed on bourse 4 yrs after IPO | Reuters

Loss-making Viva Kuwait has yet to join its local bourse more than four years after its initial public offering and the telecommunications operator's listing could be further delayed as it may first need to issue new shares to shore up its balance sheet.

Convincing minority shareholders to pump in more cash to the Saudi Telecom Co (STC) affiliate when their original investment has been off-limits for so long may be a tough sell.

Viva, which competes with Zain and Qatar Telecom subsidiary Wataniya, raised 25 million Kuwaiti dinars ($88.57 million) from selling half its shares to Kuwaiti nationals in an IPO in September 2008, launching services later that year.

Oman Wealth Fund Offers to Buy Blue City Bonds at 65% Discount - Bloomberg

Onyx Investments Ltd., a unit of state-controlled Oman Investment Fund, offered to buy bonds of Blue City, a stalled real-estate project in the Persian Gulf country, at a discount of as much as 65 percent.
Onyx offered to buy all B notes from bondholders at 35 cents on the dollar for $143 million of outstanding bonds issued by Blue City, state-run Oman News Agency reported, citing a statement from Oman Investment Fund. The total value of Onyx’s offer to Class B bondholders will be $50 million, it said.
Blue City, about 90 kilometers (56 miles) west of Oman’s capital, Muscat, was to include more than 200 villas, four hotels and two golf courses. The project missed targets as real- estate investors left Middle Eastern markets amid the global financial crisis. A total of $925 million was raised from bondholders to finance construction, which started in 2006.

Happy New Al-Hijri Year