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Saturday, 20 July 2013

Ukraine: Unexpected Oil Find, Major Gas Interest

Ukraine: Unexpected Oil Find, Major Gas Interest:

"Bottom Line: We see a flurry of activity in Ukraine, with a $735 million Black Sea commitment by Exxon, an unexpected 100 million barrel oil find in the Poltava region and new estimates that the country could achieve annual gas production of 45 billion cubic meters by 2020.

Analysis: First, Ukraine’s state-run oil and gas company Naftogaz on 11 July announced the discovery of an oil field in the eastern/central Poltava region that reportedly contains some 13 million tons of oil, or 100 million barrels of oil. This is the biggest oil find in Ukraine in a decade and a half. The Budishchansko-Chutovskoye oil field is fully owned by Naftogaz, and is the only field fully owned by the state-run company.

The news for Ukraine gets even better this week, though. Exxon Mobil Corp is ready to invest $735 million to drill two deep-water wells offshore Ukraine in the Black Sea ($335 million in a signing bonus for the government and a $400 million commitment for seismic surveys and drilling). This is an amazing show of confidence by Exxon in Ukraine’s Black Sea."

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FINANCE - Bonds of Turkish banks among worst performers in debt market

FINANCE - Bonds of Turkish banks among worst performers in debt market:

"Bonds of Turkish banks, Ukrainian state firms and central European miners were among the worst performers in a recent sell-off in emerging debt and investors are on alert for further price falls or even defaults.

The emerging corporate debt market has boomed in recent years, with the volume of outstanding debt passing $1 trillion last year and record issuance seen in the first half of 2013.

But spreads on emerging corporate bonds in hard currencies have widened sharply over rising U.S. Treasury yields in the past few weeks, after the Federal Reserve said it will scale back stimulus which has fed demand for higher-yielding assets."

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Climate Change Conundrum | @BadrJafar

Climate Change Conundrum | Badr Jafar:

"The need to address climate change and reduce global greenhouse gas (GHG) emissions is one of the most prominent international policy issues of the last two decades. Governments around the world have legislated in an attempt to address this challenge, and many of these legislative measures have come at a huge cost. And yet global GHG emissions, particularly carbon dioxide emissions, have continued to rise at a rapid pace, increasing by c. 32 percent between 1990 and 2010 according to UNEP. This is despite a globally agreed challenge to reduce emissions by 40 percent by 2050 from 1990 levels as part of the UN Climate Change Convention. Even some countries that are the most active pursuers of lower emissions have lost the gains of recent years, as flaws in their current energy policies emerge.

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Falling oil prices could spark global turmoil |

Falling oil prices could spark global turmoil |

"Falling oil prices can have a lot of benefits. They put money into consumers' pockets. They cut trade deficits. They make it cheaper for businesses to sell stuff.
But if oil prices fall over the next few years, as some analysts predict, the effects won't be all roses.
OPEC, for example, could be on the losing end. And that could lead to unrest in countries around the world.
Oil producing nations in the Middle East and elsewhere have used bulging oil revenues of the last few years to placate their people. No place is this more true than Saudi Arabia, which has subsidized housing, health care, gasoline and a host of other things to the tune of hundreds of billions of dollars since the Arab Spring protests began in 2010."

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Mixed performance for Bahrain’s economy |

Mixed performance for Bahrain’s economy |

"Evidence shows that Bahrain’s economy is posting mixed performance.
Positive matters include absence of inflationary pressures and rise in inflows of foreign investments. However, negative concerns entail steady rise of public debt and budget deficit plus a sizable unemployment challenge.
On a positive note, the economy is not suffering from an acute inflationary problem. It is believed that inflation rate hovers around 3 per cent, certainly a reasonable rate."

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Kuwait ‘could see a budget surplus of $28bn’

Kuwait ‘could see a budget surplus of $28bn’:

"An oil price of between $94 and $100 per barrel in the financial year 2013/14 could generate a budget surplus for Kuwait of between KD8 ($28 billion) and KD11 billion this fiscal year, a report said.

Although the closing accounts for FY2012/13 have not yet been released, the budget is expected to have recorded a massive surplus as oil prices averaged a record $107 per barrel for the fiscal year, added the latest Economic Update from the National Bank of Kuwait (NBK).

If spending comes in at 10-20 per cent below the government’s forecast, then last year’s budget surplus could end up between KD12.8 billion and KD15.0 billion before allocations to the Reserve Fund for Future Generations (RFFG), said NBK in the report."

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WB praises results of project implementation in Ukraine - ForUm

WB praises results of project implementation in Ukraine - ForUm:

"In fiscal year 2013 (July 1, 2012 - June 30, 2013) Ukraine managed to achieve positive results in cooperation with the World Bank. The country intensified the implementation of investment projects, implemented with the assistance of the Bank. As a result, the volume of investment funds, used for these projects out of the total project portfolio, reached a record high during all the years of cooperation with the World Bank. This was discussed at a joint meeting to review the project portfolio of the World Bank in Ukraine.

"In recent years, we have been able to lay the foundation for the improvement of the portfolio of the World Bank in Ukraine, to form the structure of the portfolio in accordance with the needs of the Ukrainian side. This is allowed in fiscal year 2013 to reach a record for all the years of cooperation with the Bank percent of funds. Thus, this year Ukraine took 6th place in terms of disbursement among 22 countries in Europe and Central Asia. Ukraine also ranked 5th in the region in terms of a portfolio that consists of 10 projects totaling $ 2 billion 42 million U.S. dollars," economic development and trade minister of Ukraine Ihor Prasolov, who participated in the meeting, said."

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ENRC sues ex-director over alleged leaks during fraud investigation | Business | The Guardian

ENRC sues ex-director over alleged leaks during fraud investigation | Business | The Guardian:

"Eurasian Natural Resources Corporation, the FTSE 100 miner being investigated by the Serious Fraud Office over claims of fraud, bribery and corruption in Africa, is suing Sir Paul Judge, a City grandee and former director, for allegedly leaking information to the media.

The Kazakhstan-focused firm, which is subject to a £3bn takeover by its three oligarch founders, accuses Judge of "malicious leaks" that have damaged the company's reputation and stock market value.

ENRC demanded that Judge, who quit the company alongside former chairman Mehmet Dalman earlier this year, immediately returns all confidential documents. The company is also seeking millions of pounds in damages."

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Eike Batista breaks his silence | beyondbrics

Eike Batista breaks his silence | beyondbrics:

After months of silence, Eike Batista has finally given a public response to the recent crisis across his business empire, publishing an open letter on Friday in local newspapers Valor Econômico and O Globo.

The letter was published in Portuguese and, according to his EBX group, there are no plans to release a version in English. But beyondbrics believes foreign investors also deserve an explanation and has done him the favour of translating the letter:

During the past few months, I decided that I would not comment on the ‘avalanche’ that has hit my private life, and mainly my businesses. I changed my mind over the last few days on the insistence of close friends and some of my executives. I therefore come to the public to ask them to reflect on some aspects that have been overlooked when analysing the path I have taken."

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Saudi Arabia’s oil sector threatened by North American supply

Saudi Arabia’s oil sector threatened by North American supply:

"Saudi Arabia has been publicly skeptical of North America’s energy surge, but there are now clear signs that its economy is directly hit by developments in Fort McMurray, Eagle Ford and the Bakken.

The massive oil sector of the Middle East’s largest economy shrank 6.3% in the first quarter of the year, its lowest reading since quarterly data was made available in 2010. Brent crude prices contracted 7% during the period while production was down nearly 8%.

“North American and Iraqi supply additions represent the main risk to the Saudi oil sector,” wrote James Reeve and Andrew Gilmour, senior economists at Riyadh-based Samba Banking Group in a report."

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PIF’s shares in 18 listed firms reach SR297bn | Arab News

PIF’s shares in 18 listed firms reach SR297bn | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.:

"The Public Investments Fund's (PIF's) acquired shares in 18 companies listed on the Saudi Stock Exchange (Tadawul) valued at SR297 billion at the end of the first half of 2013, according to a report released by Al-Joman Center for Economic Consultancy (JCEC).
The report, quoted by local media, said the value of the acquired shares dropped slightly by 0.1 percent during the first half, or SR 296 million, despite rise of the Tadawul All-Share Index (TASI) by 10.2 percent.
The volume of the PIF acquired shares in the listed companies remained unchanged during the first half of the year, the report said."

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Tourism sector stays in the limelight | Arab News

Tourism sector stays in the limelight | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.:

"Saudi Arabia’s benchmark stock index reflecting a 3-day fall during the week, closed at 7,667.07 points last week, trimming only 23.31 points or 0.30 percent for the entire week.
It performed within a range of 103 points, moving 54 points up and 49 points below the break-even level.
On year-to-date basis, the TASI has achieved 865.8 points or 12.73 percent growth."

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Saudi Gazette - Asia snaps Dubai-priced Mideast, Russian crudes

Saudi Gazette - Asia snaps Dubai-priced Mideast, Russian crudes:

"Asian refiners are snapping up Middle Eastern and Russian crudes priced on the comparatively cheaper Dubai marker, shunning Brent-linked Atlantic Basin grades that have become too expensive as the European benchmark strengthens.

Brent’s premium to Dubai rose above $5 a barrel this week, the highest since March, and that combined with strong Asian demand has pushed premiums for Russian, United Arab Emirates and Qatari grades to multi-month highs.

Seasonal demand and a recovery in margins, or profits from processing a barrel of crude into products, are also making Asian refiners ramp up runs, amplifying their call for crude."

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Saudi Gazette - OPEC & shale oil monster

Saudi Gazette - OPEC & shale oil monster:

"Several reports were published in the last few weeks about the potential impact of shale oil on the global oil market and its possible impact on OPEC future export share. Some of these reports were very optimistic in terms of the expected future increase in the global oil production from these unconventional hydrocarbon resources to reach a long-term self-dependency for some of the major oil consumers such as the United States which could have great negative impact on OPEC oil export share. This is the position that was adopted by the International Energy Agency (IEA) reporting that shale oil production boom in North America next year will be one of the largest rises in the rates growth of independent producers’ supply over the past two decades, helping to meet the global demand and leading to a shrinking share of OPEC countries. As a matter of fact, due to this, there were some reports that the Peak Oil Theory is dead."

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