Oman spearheads Gulf push to extract more oil with new techniques:
Revolutionary technologies to extract more oil from reservoirs to add hundreds of millions of dollars to balance sheets and produce millions of extra barrels are being increasingly deployed by Gulf countries, with Oman leading the way.
With extra barrelage targeted for both domestic consumption and export, the latest moves are a sign that competition in the global oil industry is hotting up as producers seek to bolster profit margins.
Enhanced Oil Recovery (EOR) techniques have been around for a while. But technological advances, and the fact that easy-to-extract onshore oil is getting much harder to find, have propelled EOR into the limelight.
Sunday 5 August 2018
Surge in Qatar’s listed govt bond value - The Peninsula Qatar
Surge in Qatar’s listed govt bond value - The Peninsula Qatar:
The value of Qatar’s listed government bonds saw a staggering growth of 94.21 percent to QR12.57bn in 2017, from QR6.4bn in the previous year. Listed T-bills value increased by 32.26 percent to QR12.75bn from QR9.64 in 2016, Qatar Financial Markets Authority (QFMA) has revealed.
In its annual report released yesterday, the market regulatory body noted the value of traded government bonds also increased by 17.05 percent year-on-year, from QR3bn to QR3.55bn.
The year 2017 saw the share of total equity ownership of Qatari investors, individual and institutional, slipping to 91.09 percent from 91.47 percent on year-on-year. The share of equity ownership percent of foreign investors rose to 8.91 percent from 8.5 percent. While foreign individual investors’ equity ownership rose to 2.19 percent from 2.10 percent, institutional investors’ share increased to 6.72 percent from 6.43 percent.
The value of Qatar’s listed government bonds saw a staggering growth of 94.21 percent to QR12.57bn in 2017, from QR6.4bn in the previous year. Listed T-bills value increased by 32.26 percent to QR12.75bn from QR9.64 in 2016, Qatar Financial Markets Authority (QFMA) has revealed.
In its annual report released yesterday, the market regulatory body noted the value of traded government bonds also increased by 17.05 percent year-on-year, from QR3bn to QR3.55bn.
The year 2017 saw the share of total equity ownership of Qatari investors, individual and institutional, slipping to 91.09 percent from 91.47 percent on year-on-year. The share of equity ownership percent of foreign investors rose to 8.91 percent from 8.5 percent. While foreign individual investors’ equity ownership rose to 2.19 percent from 2.10 percent, institutional investors’ share increased to 6.72 percent from 6.43 percent.
EMBI inclusion could trigger fund inflows into Qatar - The Peninsula Qatar
EMBI inclusion could trigger fund inflows into Qatar - The Peninsula Qatar:
Potential EMBI (Emerging Market Bond Index) inclusion could lead to an estimated $30bn of inflows into GCC, leading to tighter spreads and making primary market access easier, said the Bank of America Merrill Lynch (BofAML) yesterday.
Potential EMBI inclusion is a swing factor for GCC credit, excluding Oman, BofAML added in its latest Global Emerging Markets Weekly report.
Qatar, Saudi Arabia, UAE, Kuwait, and Bahrain sovereign bonds will make up a sizeable portion of the index. “We estimate 10 - 11 per cent of the EMBI diversified. In theory, flows could reach $40bn which should be supportive for credit performance in the coming months. Sovereigns will also now be able to issue debt to a new audience of EM credit-focused investors, which should increase primary demand,” said Jean-Michel Saliba (pictured), Mena economist at BofAML.
Potential EMBI (Emerging Market Bond Index) inclusion could lead to an estimated $30bn of inflows into GCC, leading to tighter spreads and making primary market access easier, said the Bank of America Merrill Lynch (BofAML) yesterday.
Potential EMBI inclusion is a swing factor for GCC credit, excluding Oman, BofAML added in its latest Global Emerging Markets Weekly report.
Qatar, Saudi Arabia, UAE, Kuwait, and Bahrain sovereign bonds will make up a sizeable portion of the index. “We estimate 10 - 11 per cent of the EMBI diversified. In theory, flows could reach $40bn which should be supportive for credit performance in the coming months. Sovereigns will also now be able to issue debt to a new audience of EM credit-focused investors, which should increase primary demand,” said Jean-Michel Saliba (pictured), Mena economist at BofAML.
China snubs Trump on Iran as biggest refiner halts US oil buys
China snubs Trump on Iran as biggest refiner halts US oil buys:
Rising trade tensions between China and the US may soon affect global oil flows.
China’s largest refiner, Sinopec, will delay making any purchases of US oil for September amid concern that the Asian giant will slap tariffs on American crude, making imports more expensive, according to a person familiar with the matter. Beijing declined to stop imports from Iran, dealing a blow to US efforts to isolate the Islamic Republic, though it agreed not to increase shipments, according to officials familiar with the negotiations.
Petroleum was left off the list of products on which Beijing said on Friday it plans to levy duties of 5% to 25% as soon as the Trump Administration enacts measures. The world’s biggest oil importer took a record volume from the US in June, increasing the potential hit to American producers if China does enact tariffs.
Rising trade tensions between China and the US may soon affect global oil flows.
China’s largest refiner, Sinopec, will delay making any purchases of US oil for September amid concern that the Asian giant will slap tariffs on American crude, making imports more expensive, according to a person familiar with the matter. Beijing declined to stop imports from Iran, dealing a blow to US efforts to isolate the Islamic Republic, though it agreed not to increase shipments, according to officials familiar with the negotiations.
Petroleum was left off the list of products on which Beijing said on Friday it plans to levy duties of 5% to 25% as soon as the Trump Administration enacts measures. The world’s biggest oil importer took a record volume from the US in June, increasing the potential hit to American producers if China does enact tariffs.
Abraaj fund investors said to hire advisers for debt recovery
Abraaj fund investors said to hire advisers for debt recovery:
Investors in a $1.6bn-Abraaj Group fund have hired advisory firm Alvarez & Marsal Holdings to help recover money owed by the floundering Middle Eastern private equity firm, people with knowledge of the matter said.
The New York-based company will represent Abraaj Private Equity Fund IV’s backers in talks with liquidators as they seek to recover more than $99mn owed by the Dubai-based buyout firm, said the people, asking not to be identified because the information is confidential. The stakeholders have formed an investor committee led by Boston-based HarbourVest Partners, two of the people said.
Alvarez will also represent the fund if it’s elected to a liquidators’ committee for Abraaj Investment Management Ltd, which is the buyout firm’s asset management business, two of the people said. Representatives for Alvarez and HarbourVest declined to comment.
Investors in a $1.6bn-Abraaj Group fund have hired advisory firm Alvarez & Marsal Holdings to help recover money owed by the floundering Middle Eastern private equity firm, people with knowledge of the matter said.
The New York-based company will represent Abraaj Private Equity Fund IV’s backers in talks with liquidators as they seek to recover more than $99mn owed by the Dubai-based buyout firm, said the people, asking not to be identified because the information is confidential. The stakeholders have formed an investor committee led by Boston-based HarbourVest Partners, two of the people said.
Alvarez will also represent the fund if it’s elected to a liquidators’ committee for Abraaj Investment Management Ltd, which is the buyout firm’s asset management business, two of the people said. Representatives for Alvarez and HarbourVest declined to comment.
Private debt sales lure Mena borrowers as bond yields rise
Private debt sales lure Mena borrowers as bond yields rise:
Selling bonds in the public market is proving to be too much drama for some companies in the Middle East and North Africa. They’re opting for private placements instead, which can be done in smaller tranches, are quicker to execute and keep companies from having to bare their finances for all to see. They’re also less expensive. Borrowers in the Mena region have raised $3.1bn this way so far in 2018, almost matching last year’s total of $3.8bn, according to data provider Dealogic.
“The new issue market is quite volatile right now and doing a public transaction is a significant logistical exercise – appointing bookrunners, going on a roadshow, plus issuance windows have been fleeting,” said Andy Cairns, the head of global corporate finance at First Abu Dhabi Bank, the UAE’s biggest bank.
Private placements “allow an issuer to reduce execution risk because you are responding to a specific investor request and you will only proceed with the fundraising once all deal terms have been agreed,” he said.
Selling bonds in the public market is proving to be too much drama for some companies in the Middle East and North Africa. They’re opting for private placements instead, which can be done in smaller tranches, are quicker to execute and keep companies from having to bare their finances for all to see. They’re also less expensive. Borrowers in the Mena region have raised $3.1bn this way so far in 2018, almost matching last year’s total of $3.8bn, according to data provider Dealogic.
“The new issue market is quite volatile right now and doing a public transaction is a significant logistical exercise – appointing bookrunners, going on a roadshow, plus issuance windows have been fleeting,” said Andy Cairns, the head of global corporate finance at First Abu Dhabi Bank, the UAE’s biggest bank.
Private placements “allow an issuer to reduce execution risk because you are responding to a specific investor request and you will only proceed with the fundraising once all deal terms have been agreed,” he said.
With Sanctions Clock Ticking, Iran Races to Reap Deal Benefits - Bloomberg
With Sanctions Clock Ticking, Iran Races to Reap Deal Benefits - Bloomberg:
Iran’s Mehrabad International Airport may have seen one of the final benefits of the 2015 nuclear agreement.
As the U.S. prepares to slap new sanctions on the Iranian economy this week after pulling out of the accord, state-run Iran Air took delivery on Sunday of five passenger planes manufactured by ATR, a venture between France’s Airbus SE and Italy’s Leonardo SpA, after France secured American approvals to send the aircraft. In a ceremony at the airport, Iran Air’s top executive suggested that Europe could do more to rescue the deal it co-signed in 2015.
The delivery of the ATR planes shows how the European Union can protect the companies doing business with Iran from the impact of U.S. measures -- if it wants to do so, Chief Executive Officer Farzaneh Sharafbafi said, according to the official Islamic Republic News Agency.
Iran’s Mehrabad International Airport may have seen one of the final benefits of the 2015 nuclear agreement.
As the U.S. prepares to slap new sanctions on the Iranian economy this week after pulling out of the accord, state-run Iran Air took delivery on Sunday of five passenger planes manufactured by ATR, a venture between France’s Airbus SE and Italy’s Leonardo SpA, after France secured American approvals to send the aircraft. In a ceremony at the airport, Iran Air’s top executive suggested that Europe could do more to rescue the deal it co-signed in 2015.
The delivery of the ATR planes shows how the European Union can protect the companies doing business with Iran from the impact of U.S. measures -- if it wants to do so, Chief Executive Officer Farzaneh Sharafbafi said, according to the official Islamic Republic News Agency.
Abu Dhabi's GDP marks 9% growth in Q1 | ZAWYA MENA Edition
Abu Dhabi's GDP marks 9% growth in Q1 | ZAWYA MENA Edition:
Abu Dhabi’s gross domestic product (GDP) rose 9% to AED 223.6 billion in the first quarter of 2018, compared to AED 205.1 billion in the year-ago period.
Oil GDP grew to AED 86.6 billion in the three-month period ended March, up 18% from AED 73.4 billion in Q1-17, accounting for 38.8% of the emirate’s total GDP, according to the quarterly bulletin issued by the Statistics Centre − Abu Dhabi (SCAD).
Data showed a growth in oil- and non-oil sectors in Abu Dhabi during Q1-18, as compared with the same period last year.
Abu Dhabi’s gross domestic product (GDP) rose 9% to AED 223.6 billion in the first quarter of 2018, compared to AED 205.1 billion in the year-ago period.
Oil GDP grew to AED 86.6 billion in the three-month period ended March, up 18% from AED 73.4 billion in Q1-17, accounting for 38.8% of the emirate’s total GDP, according to the quarterly bulletin issued by the Statistics Centre − Abu Dhabi (SCAD).
Data showed a growth in oil- and non-oil sectors in Abu Dhabi during Q1-18, as compared with the same period last year.
UAE's Shuaa Capital to boost foothold in Saudi Arabia, Kuwait, Egypt | ZAWYA MENA Edition
UAE's Shuaa Capital to boost foothold in Saudi Arabia, Kuwait, Egypt | ZAWYA MENA Edition:
Shuaa Capital is seeking to collaborate with Saudi Arabia’s Jabal Omar Development Company (JODC) to launch and manage real estate investment funds in the Kingdom of Saudi Arabia.
The partnership is directed towards managing the development and expansion of centrally located real estate hotspots across the Kingdom, Shuaa’s CEO Tariq Khan told Mubasher.
Both the memoranda of understanding (MoU) signed with JODC and the UAE National Bonds Corporation (NBC) have represented a major step in Shuaa’s endeavours to bolster its presence across the Arab world's biggest economy, Khan added.
Shuaa Capital is seeking to collaborate with Saudi Arabia’s Jabal Omar Development Company (JODC) to launch and manage real estate investment funds in the Kingdom of Saudi Arabia.
The partnership is directed towards managing the development and expansion of centrally located real estate hotspots across the Kingdom, Shuaa’s CEO Tariq Khan told Mubasher.
Both the memoranda of understanding (MoU) signed with JODC and the UAE National Bonds Corporation (NBC) have represented a major step in Shuaa’s endeavours to bolster its presence across the Arab world's biggest economy, Khan added.
Iran eases currency rules, hoping to buoy rial ahead of sanctions | Reuters
Iran eases currency rules, hoping to buoy rial ahead of sanctions | Reuters:
Iran will ease foreign exchange rules, state TV reported on Sunday, in a bid to halt a collapse of the rial currency that has lost half its value since April due to fears about U.S. sanctions likely to be imposed this week.
President Donald Trump’s decision to pull out of an agreement to lift sanctions in return for Iran limiting its nuclear programme caused a run on the rial as companies and savers bought hard currency to protect themselves from the economic sanctions that could be imposed from Monday.
The plunge in the currency and soaring inflation have sparked sporadic demonstrations against profiteering and corruption, with many protesters chanting anti-government slogans.
Iran will ease foreign exchange rules, state TV reported on Sunday, in a bid to halt a collapse of the rial currency that has lost half its value since April due to fears about U.S. sanctions likely to be imposed this week.
President Donald Trump’s decision to pull out of an agreement to lift sanctions in return for Iran limiting its nuclear programme caused a run on the rial as companies and savers bought hard currency to protect themselves from the economic sanctions that could be imposed from Monday.
The plunge in the currency and soaring inflation have sparked sporadic demonstrations against profiteering and corruption, with many protesters chanting anti-government slogans.
MIDEAST STOCKS-Gulf insurers jump on Q2 results, petchems down on oil | Reuters
MIDEAST STOCKS-Gulf insurers jump on Q2 results, petchems down on oil | Reuters:
Gulf stocks were mixed on Sunday, with some companies’ positive financial results offsetting a bearish background due to persisting global trade concerns and lower oil prices.
Oil gave up earlier gains late last week as fears that Chinese demand could taper weighed on prices. Brent crude futures settled at $73.21 per barrel on Friday, down 24 cents from their previous close.
As a result, some Saudi petrochemical companies shed value. Blue chip Saudi Basic Industries Corporation (SABIC) lost 0.3 percent, while Saudi Kayan Petrochemical Co and Methanol Chemicals Co dropped 1.1 percent and 1.7 percent, respectively.
Gulf stocks were mixed on Sunday, with some companies’ positive financial results offsetting a bearish background due to persisting global trade concerns and lower oil prices.
Oil gave up earlier gains late last week as fears that Chinese demand could taper weighed on prices. Brent crude futures settled at $73.21 per barrel on Friday, down 24 cents from their previous close.
As a result, some Saudi petrochemical companies shed value. Blue chip Saudi Basic Industries Corporation (SABIC) lost 0.3 percent, while Saudi Kayan Petrochemical Co and Methanol Chemicals Co dropped 1.1 percent and 1.7 percent, respectively.
Saudi Arabia Is Starting to Stockpile Oil Again - Bloomberg
Saudi Arabia Is Starting to Stockpile Oil Again - Bloomberg:
The key OPEC oil producers seem to be finding it harder than expected to sell their output overseas. The probable resulting build-up in their stockpiles should at least help them offset the drop in Iranian supplies as U.S. sanctions start to bite deeper.
Crude oil exports from the five Persian Gulf Arab members of OPEC fell by about 1.1 million barrels a day last month, after surging in June, according to Bloomberg tanker tracking.
Some of the spare barrels may have been used locally, either processed in refineries or burnt in power stations. But probably not as much as would have been the case in previous summers.
The key OPEC oil producers seem to be finding it harder than expected to sell their output overseas. The probable resulting build-up in their stockpiles should at least help them offset the drop in Iranian supplies as U.S. sanctions start to bite deeper.
Crude oil exports from the five Persian Gulf Arab members of OPEC fell by about 1.1 million barrels a day last month, after surging in June, according to Bloomberg tanker tracking.
Some of the spare barrels may have been used locally, either processed in refineries or burnt in power stations. But probably not as much as would have been the case in previous summers.
ENBD REIT mulls new acquisitions in Dubai, Abu Dhabi | ZAWYA MENA Edition
ENBD REIT mulls new acquisitions in Dubai, Abu Dhabi | ZAWYA MENA Edition:
ENBD REIT is currently considering several potential acquisitions in Dubai, Abu Dhabi, and northern region of the UAE within the framework of an asset diversification plan, head of real estate Anthony Taylor said.
Net asset value amounted to AED 1.1 billion in the first half of 2018, after paying dividends and return on equity in June, Taylor added.
He indicated that the company’s real estate portfolio was valued at AED 1.7 billion, including diversified investments in 11 properties, such as offices, residential properties, and alternative real estate assets, according to Al Bayan Newspaper.
ENBD REIT is currently considering several potential acquisitions in Dubai, Abu Dhabi, and northern region of the UAE within the framework of an asset diversification plan, head of real estate Anthony Taylor said.
Net asset value amounted to AED 1.1 billion in the first half of 2018, after paying dividends and return on equity in June, Taylor added.
He indicated that the company’s real estate portfolio was valued at AED 1.7 billion, including diversified investments in 11 properties, such as offices, residential properties, and alternative real estate assets, according to Al Bayan Newspaper.
MIDEAST STOCKS-Alhokair supports Saudi market, RAK Properties drags Abu Dhabi | Reuters
MIDEAST STOCKS-Alhokair supports Saudi market, RAK Properties drags Abu Dhabi | Reuters:
Most Gulf markets posted minor gains in early trade on Sunday, as some companies’ positive financial results offset global trade concerns and lower oil prices.
Oil pulled back late last week, giving up earlier gains as fears that Chinese demand could taper weighed on prices. Brent crude futures settled at $73.21 per barrel on Friday, down 24 cents from their previous close.
This meant that in Saudi Arabia petrochemical companies such as Saudi Kayan Petrochemical Co and blue chip Saudi Basic Industries Corporation (SABIC) were down 0.3 and 0.2 percent respectively.
Most Gulf markets posted minor gains in early trade on Sunday, as some companies’ positive financial results offset global trade concerns and lower oil prices.
Oil pulled back late last week, giving up earlier gains as fears that Chinese demand could taper weighed on prices. Brent crude futures settled at $73.21 per barrel on Friday, down 24 cents from their previous close.
This meant that in Saudi Arabia petrochemical companies such as Saudi Kayan Petrochemical Co and blue chip Saudi Basic Industries Corporation (SABIC) were down 0.3 and 0.2 percent respectively.
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