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Friday, 12 July 2013

CORRECTED-Qatar's LNG gift to Egypt to find foreign firms | Reuters

"Qatar's gift of five natural gas cargoes to fuel-short Egypt will likely be signed over to the foreign partners in Egyptian export plants, GDF Suez and BG Group, as compensation for declining exports.

Doha agreed last month to donate five LNG tankers to help Cairo cover obligations to foreign firms.

It is gas which Egyptian port facilities are not equipped to import, but the cargoes will allow Egypt to devote more of its own supply to its domestic market, where energy shortages helped fuel civil unrest."

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European Union may sue Russia in WTO court | Russia Beyond The Headlines

"Europe may initiate the first lawsuit against Russia since Russia's accession to the World Trade Organization (WTO). The reason for the dissatisfaction is the car recycling tax that, in the opinion of EU members, places European manufacturers in disadvantageous conditions and goes against the WTO's ground rules.
The Europeans were expecting this tax to be abolished on July 1, in accordance with the hope expressed by European Commission president, José Manuel Barroso around a month ago.
In the words of Karel De Gucht, the European trade commissioner, the European powers recognize the need for an incentive for automobile recycling, and in the EU there is an analogous law. However, this law does not involve the use of taxes and tariffs as a prime tool."

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How much pressure can the lira take? | beyondbrics

On Thursday, as Daniel Dombey reported on beyondbrics, there was some respite for Turkey as the pressure on the lira eased a bit after Ben Bernanke’s comments.

But come Friday, the currency was in the firing line yet again, falling to around 1.96 to the dollar at one point. Investors are pushing yields on the two year debt up and up. A big test is coming for Erdogan’s opposition to raising rates.

The lira hit an all-time low on Monday of 1.973 to the dollar, despite the efforts of the central bank via foreign currency auctions, pumping billions of lira back in to the system.

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Centrenergo to raise UAH 150 m from Oschadbank

"Energy generating company PJSC Centrenergo has selected state-controlled Oschadbank (Kyiv) the winner in a tender to raise a renewable credit line of UAH 150 million.

Following the announcement of the state holding in the Visnyk Derzhavnykh Zakupivel bulletin, the proposal was accepted on July 11, 2013. The deadline for signing a loan agreement between the parties is August 9.

Funds are raised for one year. The cost of servicing the credit line is UAH 28.5 million (excluding VAT).

PJSC Alfa-Bank (Kyiv) also participated in the tender. It was ready to issue funds to the company with the cost of servicing being UAH 31.5 million (excluding VAT)."

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Russia cuts, even as investors leave | beyondbrics

Further evidence that emerging market central banks are operating independently of the US Federal Reserve: Russia’s central bank held its policy interest rate unchanged at 8.25 per cent on Friday, in spite of evidence that foreign portfolio investors are taking their money out of the country.

Far from worrying about outflows, there had been speculation the bank would find room to cut interest rates at its first monetary policy meeting under Elvira Nabiullina (pictured), the new central bank governor who investors have feared would be less hawkish than her predecessor, Sergei Ignatiev.

But in spite of signs that inflation is on the way down, the bank opted for caution. "

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Exxon’s $735 Million Ukraine Pledge Shows Black Sea Zeal: Energy - Bloomberg

"Exxon Mobil Corp (XOM). is so confident of prospects in the unexplored Black Sea it will spend $735 million to drill just two deep-water wells off Ukraine’s coast.
The outlay comprises a $335 million signing bonus for Ukraine’s government and a promise to spend a further $400 million on seismic surveys and drilling two wells, according to an energy ministry official. After making a natural gas discovery in neighboring Romania that may flow fast enough to supply half of that country’s consumption, Exxon plans exploration in Bulgaria, Russia and Ukraine.
The Black Sea is almost untouched by the oil industry, with fewer than 100 wells drilled, compared with more than 7,000 in the North Sea. Improving drilling technologies and increasing regional energy demand is drawing explorers to its challenging waters deeper than 1,000 feet (300 meters), said Philipp Chladek, a Bloomberg Industries analyst."

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Publish Post

Gas transit via Ukraine drops 11.3 pct in first half of 2013 : Ukraine News by UNIAN

"Natural gas transit to Europe and the Commonwealth of Independent States (CIS) via Ukrainian pipelines fell 11.3 percent year-on-year to 39.353 billion cubic meters in the first half of this year, according to official data released Thursday, according to Xinhua.
From January to June, Ukraine delivered 38.227 billion cubic meters of gas to European countries, down 10.5 percent year-on- year, the state-run Ukrtransgaz Company said in a statement.
Meanwhile, gas transit to the CIS plunged 31.8 percent year-on- year to 1.126 billion cubic meters, it added.
The Ukrainian gas transportation system, which boasts an annual transit capacity of 175 billion cubic meters, pumped last year 84. 261 billion cubic meters of gas to consumers in the CIS and the eastern and southern Europe."

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A Russian American invests in Europe | Russia Beyond The Headlines

The Alfa-bank trio. From left to right: Alex Knaster, Mikhail Fridman, Petr Aven. Source: PhotoXpress
In Alex Knaster’s London office in Park Lane there’s a letter he bought at a Christie’s auction in 2007 for $157,326: a letter Ernest Hemmingway sent to his friend poet Ezra Pound in 1925 upon arrival to Spanish Pamplona. After that Hemingway embarked on The Sun Also Rises which celebrated the ancient town.
For more than 800 years on July 6, at midday sharp, the famous running of the bulls has been opening the San-Fermin fiesta where people risk their lives running along the streets with a herd of furious bulls raced to the corrida venue.
Knaster first attended Pamplona’s San-Fermin festival right after graduating from Harvard Business School in 1985 and has been back some 6-7 times since then."

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Middle East Renewable Energy Targets Until 2020 | @TFOUR_ME

"Middle East has been recently bullish about clean tech. Significant investments in renewable energy infrastructure has given it a boost. A recent white paper released by Frost and Sullivan shows that Kuwait will have 10% of its energy requirements sourced from clean technologies. Solar energy is being considered as a viable source of energy to meet the emerging needs.

UAE takes the lead in this field with its Shams and Noor projects and setting up the Masdar city. The oil rich GCC countries have started exploring various alternatives as they are aware their current reserves may not last for the future generation.

Saudi Arabia was faced with power shortages last year in spite of having massive proven oil reserves. A few initiative by the country are a 3.5 MW power plant to be built by ARAMCO, tendered in 2011, using Solar power for powering Control Panel devices to fend off pipeline corrosion.

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Naftogaz discovers first own oil field

"National joint-stock company Naftogaz Ukrainy has said that the holding has successfully drilled Runovshynska oil well No. 110 on the Budyschanske-Chutivske field.

"An oil field, one of the largest in Ukraine over the past 15 years, has been discovered. According to the tentative appraisal, the minimum oil deposits at the field amount to some 12.8 million tonnes," reads a report of Naftogaz issued on Wednesday.

The company said that during the test of the Upper Carbonic layers in Runovshynska well No. 110, a well yield of 106.8 cubic meters a day was registered."

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India car sales: down we go | beyondbrics

"For the eighth consecutive month car sales fell in India this June. And this time the entire sector is in trouble.

Domestic passenger car sales were down 9 per cent to 139,632 units, from 153,450 units a year earlier, according to data from the Society of Indian Automobile Manufacturers seen by the Press Trust of India.

Sales of SUVs had been providing a boost to the sector in previous months, with new launches satisfying a trend for the oversized roadsters among the better off in society. But even this segment isn’t propping up the industry anymore with sales of passenger vehicles – a figure that includes SUVs as well as cars – down 4.8 per cent year-on-year this June."

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Kyiv pays $14m of coupon on 2011 eurobonds

"Kyiv City Administration on Wednesday paid $14.063 million on 2011 eurobonds, Deputy Head of Kyiv City Administration Ruslan Kramarenko has said.

"On July 10, 2013, Kyiv settled a regular six-month payment for the use of a loan received via the public placement of eurobonds of Kyiv city on the international capital market in 2011," Kramarenko told Interfax-Ukraine.

He said that the city paid $14.0625 million. This is a six-month coupon for five-year eurobonds worth $300 million placed in 2011 at 9.375% per annum."

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[video] Tumultuous times for #Egypt | beyondbrics

"The overthrow of President Mohamed Morsi has thrown Egypt into turmoil. Frederick Studemann, comment and analysis editor, talks to the FT’s Middle East editor Roula Khalaf and Professor Fawaz Gerges from the LSE about the wider impact on the region.
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UAE's Limitless sees good progress on Russian project - Property -

"Construction of phase one of Zagorodny Kvartal, a joint venture community project involving Dubai-based Limitless near Moscow, is around 35 percent complete, the developer has said.
Four apartment buildings and 26 townhomes are on track for completion this year, Limitless said in a statement.
Covering 14 hectares and due for completion in 2015, phase one of Zagorodny Kvartal includes 14 residential towers containing 728 apartments, 46 townhouses, retail facilities and an 8,000 square metre park."

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[video] Magnitsky case hits Russia’s reputation | beyondbrics

"A Russian court has found Sergei Magnitsky, the deceased lawyer, guilty of tax evasion in a posthumous trial that has garnered widespread criticism in the west. Eastern Europe editor Neil Buckley discusses the verdict with Daniel Garrahan.
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Ukraine nine-stage frac job sets European record - Oil & Gas Financial Journal

"Schlumberger has rigged up to conduct a nine-stage hydraulic frac job for JKX Oil & Gas PLC in the Ukraine at what the companies believe may be the largest onshore frac in Europe to date.
The job is expected to take 40 days and initial flow from the well is anticipated in August.
The site is JKX’s R-103 well on the Rudenkovskoye license in Poltava, Ukraine. The well was drilled to 4,641 meters measured depth into the tight Devonian Rudenkovskoye sandstone reservoir and has a horizontal section of just over 1,000 meters at 3,650 meters true vertical depth."

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India’s ‘King of Good Times’ faces takeover talk | beyondbrics

Shares in Mangalore Chemicals and Fertilisers (Mangalore Chemicals) hit a record high on Thursday, soaring 10 per cent to Rs68. That follows another 10 per cent rise in the previous session, as recent share purchases suggest the company may be on the verge of a takeover.

The empire of Vijay Mallya, the self-proclaimed King of Good Times, is crumbling one company at a time.

After losing control of United Spirits to UK-based Diageo last week, it looks like Mallya may be on the verge of losing Mangalore Chemicals too."

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Can Morocco afford to export food to Qatar? - FRANCE 24 (Click thru for video)

"It may be oil-rich but it's short on arable land, so Qatar is planning to invest massively in Morocco’s agricultural development. In exchange, Morocco would export part of its food production to Qatar. The plan would generate jobs and economic activity, but at what cost? Morocco has yet to achieve food security on its territory and already relies heavily on food imports."

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Business - Saudi Arabia, Bahrain plan $10 billion rail link

"Bahrain and Saudi Arabia have assigned five firms to study the construction of a railway bridge parallel to the King Fahd Causeway.
In a statement to the Bahrain News Agency, Bahrain’s Minister of Transport Kamal bin Ahmed said the project will be linked to internal networks in both Saudi Arabia and Bahrain, and then connect to the projected causeway which will link Bahrain with Qatar.
The rail project study is part of the 2,177km GCC rail link, which will run from Kuwait to Dammam, to Bahrain via the causeway, and thence to Qatar across a new causeway to be established between the two countries. There is to be an additional branch line between Dammam and Qatar via Salwa. While the main line from Dammam will continue to the UAE through the Batha crossing point heading to Abu Dhabi, Al Ain and then to Oman via Sohar, terminating at Muscat."

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Fracking boom will help keep oil prices stable - The National

"Technology changes the world. In the global oil and gas industry, some of the fastest and biggest changes today are coming from the technology called hydraulic fracturing, or fracking. This technique is opening up vast reserves of natural gas and increasingly of oil that had been trapped inaccessibly in rock layers deep beneath the landscape, in the United States and elsewhere.

US petroleum production has been growing rapidly; last week, the country produced 89 per cent of the oil and gas it consumed, the highest share in over 20 years. The US is now the world's leading exporter of petrol and other refined fuels.

It would be easy to assume that the growth of fracking is bad news for the Organisation of Petroleum Exporting Countries. Indeed, Opec acknowledged this week that while overall global demand is continuing to grow, supply from outside Opec is sufficient to meet the extra demand. No doubt this will limit prices."

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ADCB recovers ground thanks to buyback of shares - The National

"Abu Dhabi Commercial Bank has bought back Dh377.2 million of its own shares, steadying one of the best-performing bank stocks of the year after a recent dip.

The commercial lender, which trades at the most expensive price-to-earnings multiple of any UAE bank, bought 77.6 million shares for Dh4.86 each, the bank said in a statement to the Abu Dhabi Securities Exchange.

The buyback signals the potential for further capital gains for investors in ADCB's shares, which have risen 73.4 per cent in the year-to-date period."

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Qatar Holds Talks for RWE's Dea Oil and Gas Unit -

"A Qatari state-owned entity has held initial talks to buy German utility RWE AG's Dea oil-and-gas business, in a move that could lead to an expansion of the emirate's holdings in Europe, said two people familiar with the matter.

Analysts and one investment banker connected with talks over Dea have valued the unit at between €4 billion and €7 billion ($5.3 billion and $9.1 billion).

RWE put its Dea oil-and-gas exploration and production unit up for sale in March, after the parent company reported a 28% drop in 2012 profit and gave a bleak outlook for earnings in coming years."

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