Saudi Arabia Aramco's Ghawar Oil Field Reserves, Production - Bloomberg:
It was a state secret and the source of a kingdom’s riches. It was so important that U.S. military planners once debated how to seize it by force. For oil traders, it was a source of endless speculation.
Now the market finally knows: Ghawar in Saudi Arabia, the world’s largest conventional oil field, can produce a lot less than almost anyone believed.
When Saudi Aramco on Monday published its first ever profit figures since its nationalization nearly 40 years ago, it also lifted the veil of secrecy around its mega oil fields. The company’s bond prospectus revealed that Ghawar is able to pump a maximum of 3.8 million barrels a day -- well below the more than 5 million that had become conventional wisdom in the market.
Tuesday, 2 April 2019
Oil hits 2019 high as supply squeeze looms; Brent nears $70 per barrel | Reuters
Oil hits 2019 high as supply squeeze looms; Brent nears $70 per barrel | Reuters:
Oil prices on Tuesday hit their highest level so far in 2019, with Brent crude approaching $70 a barrel, on the prospect that more sanctions against Iran and further Venezuelan disruptions could deepen an OPEC-led supply cut.
Brent futures reached a session peak at $69.52 a barrel, the highest since Nov. 13. The global benchmark rose 36 cents, or 0.52 percent, to settle at $69.37 a barrel.
U.S. West Texas Intermediate (WTI) crude rose 99 cents, or 1.61 percent, to settle at $62.58 a barrel, after touching $62.75, its highest level since Nov. 7.
Oil prices on Tuesday hit their highest level so far in 2019, with Brent crude approaching $70 a barrel, on the prospect that more sanctions against Iran and further Venezuelan disruptions could deepen an OPEC-led supply cut.
Brent futures reached a session peak at $69.52 a barrel, the highest since Nov. 13. The global benchmark rose 36 cents, or 0.52 percent, to settle at $69.37 a barrel.
U.S. West Texas Intermediate (WTI) crude rose 99 cents, or 1.61 percent, to settle at $62.58 a barrel, after touching $62.75, its highest level since Nov. 7.
MIDEAST STOCKS-Emaar, Emirates lift #Dubai; petrochemicals aid #Saudi | Reuters
MIDEAST STOCKS-Emaar, Emirates lift Dubai; petrochemicals aid Saudi | Reuters:
Dubai's stock market rose for the fourth straight session to a four-month high on Tuesday, lifted mainly by gains in heavyweights Emaar Properties and Emirates NBD, while petrochemical stocks buoyed Saudi Arabia.
The Dubai index closed 1.2 percent higher with Emaar Properties gaining 3.2 percent, while its largest lender Emirates NBD was up 2.4 percent, as one of its businesses will list on the London Stock Exchange.
"Our channel checks suggest foreigners have been accumulating Emaar. Also, it seems the stock had some favourable moves on technical charts. In banking, Emirates is seeing some interest on back of the IPO of its affiliate," Vrajesh Bhandari, senior portfolio manager at Al Mal Capital said.
Dubai's stock market rose for the fourth straight session to a four-month high on Tuesday, lifted mainly by gains in heavyweights Emaar Properties and Emirates NBD, while petrochemical stocks buoyed Saudi Arabia.
The Dubai index closed 1.2 percent higher with Emaar Properties gaining 3.2 percent, while its largest lender Emirates NBD was up 2.4 percent, as one of its businesses will list on the London Stock Exchange.
"Our channel checks suggest foreigners have been accumulating Emaar. Also, it seems the stock had some favourable moves on technical charts. In banking, Emirates is seeing some interest on back of the IPO of its affiliate," Vrajesh Bhandari, senior portfolio manager at Al Mal Capital said.
Breakingviews - #Saudi Aramco is big, just not big enough | Reuters
Breakingviews - Saudi Aramco is big, just not big enough | Reuters:
Saudi Aramco is enormous – staggeringly so. Yet by one measure that matters a lot – the $2 trillion valuation envisaged by Crown Prince Mohammed bin Salman – it’s still not enormous enough.
The world’s oil producer disclosed the state of its finances for the first time on Monday as part of a bond issue to fund the $69 billion purchase of a stake in Saudi Basic Industries Corp (SABIC). Titillating details include Aramco’s towering $224 billion of EBITDA, and much new information about the way the company works with its sole shareholder, the government of Saudi Arabia.
It helps shed light on the question of what Aramco’s main crude-oil business is worth, adding flesh to the bones of a valuation Breakingviews laid out back in 2017 in an interactive calculator. At that time, the company was flirting with an initial public offering, which MbS said could value Aramco at $2 trillion. By Breakingviews’ estimates, using a discounted cash-flow valuation, that target was about twice what Aramco was actually worth.
Saudi Aramco is enormous – staggeringly so. Yet by one measure that matters a lot – the $2 trillion valuation envisaged by Crown Prince Mohammed bin Salman – it’s still not enormous enough.
The world’s oil producer disclosed the state of its finances for the first time on Monday as part of a bond issue to fund the $69 billion purchase of a stake in Saudi Basic Industries Corp (SABIC). Titillating details include Aramco’s towering $224 billion of EBITDA, and much new information about the way the company works with its sole shareholder, the government of Saudi Arabia.
It helps shed light on the question of what Aramco’s main crude-oil business is worth, adding flesh to the bones of a valuation Breakingviews laid out back in 2017 in an interactive calculator. At that time, the company was flirting with an initial public offering, which MbS said could value Aramco at $2 trillion. By Breakingviews’ estimates, using a discounted cash-flow valuation, that target was about twice what Aramco was actually worth.
#Dubai's Mashreq bank to close 12 branches as it shifts online | ZAWYA MENA Edition
Dubai's Mashreq bank to close 12 branches as it shifts online | ZAWYA MENA Edition:
Dubai-based Mashreq bank will close 12 of its branches by June as it shifts some of its business online, a bank executive said on Tuesday.
"Today we have 39 branches, by the middle of the year we will get to 27 branches and we will have two (new) smart branches", said Subroto Som, head of retail banking.
In March, the lender's chief executive said the bank will close 50 percent of its branches this year.
Dubai-based Mashreq bank will close 12 of its branches by June as it shifts some of its business online, a bank executive said on Tuesday.
"Today we have 39 branches, by the middle of the year we will get to 27 branches and we will have two (new) smart branches", said Subroto Som, head of retail banking.
In March, the lender's chief executive said the bank will close 50 percent of its branches this year.
#Saudi women cook up a revolution in restaurant trade | Financial Times
Saudi women cook up a revolution in restaurant trade | Financial Times:
Once Ramah Nassief and her business partner had decided on green marble for the table tops in their new vegetarian restaurant, a trip to the all-male marble factory was required.
“The minute we walked in, people were looking at us like we were aliens,” she said, describing how they stood out as the only women. “We are there arguing and fighting for prices, but sometimes you feel like it’s a bit of a struggle to just put your foot down and make them listen to you. They are not used to dealing with women.”
In a conservative society where women have traditionally faced severe restrictions in their daily lives, Ms Nassief and others like her are making waves. With the blessing of the kingdom’s rulers, they are breaking into the food business and putting themselves at the vanguard of a workplace revolution.
Once Ramah Nassief and her business partner had decided on green marble for the table tops in their new vegetarian restaurant, a trip to the all-male marble factory was required.
“The minute we walked in, people were looking at us like we were aliens,” she said, describing how they stood out as the only women. “We are there arguing and fighting for prices, but sometimes you feel like it’s a bit of a struggle to just put your foot down and make them listen to you. They are not used to dealing with women.”
In a conservative society where women have traditionally faced severe restrictions in their daily lives, Ms Nassief and others like her are making waves. With the blessing of the kingdom’s rulers, they are breaking into the food business and putting themselves at the vanguard of a workplace revolution.
Mideast Stocks: Emaar's gain lifts #Dubai, banks pull down #Saudi | ZAWYA MENA Edition
Mideast Stocks: Emaar's gain lifts Dubai, banks pull down Saudi | ZAWYA MENA Edition:
Dubai's stock market rose on Tuesday, partly lifted by its largest listed real estate developer Emaar Properties, while Saudi Arabia's market slipped, weighed down by banks.
The Dubai index continued its winning streak for a fourth straight session, rising 0.8 percent, with Emaar Properties gaining 3.2 percent.
Emirates NBD, Dubai's largest lender, was up 0.5 percent, as one of its businesses will list on the London Stock Exchange.
Dubai's stock market rose on Tuesday, partly lifted by its largest listed real estate developer Emaar Properties, while Saudi Arabia's market slipped, weighed down by banks.
The Dubai index continued its winning streak for a fourth straight session, rising 0.8 percent, with Emaar Properties gaining 3.2 percent.
Emirates NBD, Dubai's largest lender, was up 0.5 percent, as one of its businesses will list on the London Stock Exchange.
#UAE's ADFG to take over Shuaa Capital in reverse merger by mid-April - sources | Reuters
UAE's ADFG to take over Shuaa Capital in reverse merger by mid-April - sources | Reuters:
Abu Dhabi Financial Group (ADFG) is set to take over Shuaa Capital in a reverse merger, two sources familiar with the matter said on Tuesday. ADFG, an alternative investment company with more than $20 billion in assets under management, already owns 48.36 percent of Shuaa, according to Refinitiv data.
It will take over Shuaa in an all-share transaction with the new company to be named Abu Dhabi Financial Group, with the deal to be finalised by mid-April, the sources said, declining to be named as the matter is not yet public.
ADFG and Shuaa declined to comment.
Abu Dhabi Financial Group (ADFG) is set to take over Shuaa Capital in a reverse merger, two sources familiar with the matter said on Tuesday. ADFG, an alternative investment company with more than $20 billion in assets under management, already owns 48.36 percent of Shuaa, according to Refinitiv data.
It will take over Shuaa in an all-share transaction with the new company to be named Abu Dhabi Financial Group, with the deal to be finalised by mid-April, the sources said, declining to be named as the matter is not yet public.
ADFG and Shuaa declined to comment.
#SaudiArabia’s Aramco Gas Tank Is Running Low - Bloomberg
Saudi Arabia’s Aramco Gas Tank Is Running Low - Bloomberg:
There’s one thing we all know about Saudi Arabian Oil Co.: It’s awash in hydrocarbons.
The 261.5 billion barrels of crude oil in its underground reserves would be enough to sustain current production rates until 2088, nearly four decades after the point when the world needs to cut its carbon emissions to zero to avoid devastating climate change. In one area, though, Aramco appears to be running oddly short: Gas.
Saudi Arabia has one-third of the Middle East’s oil reserves, but just 10 percent of its gas. That’s a problem, because it’s already the world’s seventh-largest consumer of the hydrocarbon, and isn’t on best terms with major external sources of supply. About 42 percent of the region’s gas reserves is controlled by arch-enemy Iran, and another 31 percent held by Qatar, which the kingdom has been blockading for nearly two years.
There’s one thing we all know about Saudi Arabian Oil Co.: It’s awash in hydrocarbons.
The 261.5 billion barrels of crude oil in its underground reserves would be enough to sustain current production rates until 2088, nearly four decades after the point when the world needs to cut its carbon emissions to zero to avoid devastating climate change. In one area, though, Aramco appears to be running oddly short: Gas.
Saudi Arabia has one-third of the Middle East’s oil reserves, but just 10 percent of its gas. That’s a problem, because it’s already the world’s seventh-largest consumer of the hydrocarbon, and isn’t on best terms with major external sources of supply. About 42 percent of the region’s gas reserves is controlled by arch-enemy Iran, and another 31 percent held by Qatar, which the kingdom has been blockading for nearly two years.
#UAE's RAKBANK starts marketing 5-yr dollar bond at around 210 basis points over mid-swaps - document | Reuters
UAE's RAKBANK starts marketing 5-yr dollar bond at around 210 basis points over mid-swaps - document | Reuters:
The United Arab Emirates’ RAKBANK started marketing a five-year dollar bond issue on Tuesday with an initial price guidance of about 210 basis points over mid-swaps, a document issued by one of the banks leading the deal showed.
The bank, rated Baa1 by Moody’s and BBB+ by Fitch, is expected to price the notes later on Tuesday. Bank ABC, Citi, Emirates NBD Capital, First Abu Dhabi Bank, ICBC and Standard Chartered Bank have been hired to arrange the deal.
The United Arab Emirates’ RAKBANK started marketing a five-year dollar bond issue on Tuesday with an initial price guidance of about 210 basis points over mid-swaps, a document issued by one of the banks leading the deal showed.
The bank, rated Baa1 by Moody’s and BBB+ by Fitch, is expected to price the notes later on Tuesday. Bank ABC, Citi, Emirates NBD Capital, First Abu Dhabi Bank, ICBC and Standard Chartered Bank have been hired to arrange the deal.
Oil rises to five-month high on firmer China data, prospect of fresh supply curbs | Reuters
Oil rises to five-month high on firmer China data, prospect of fresh supply curbs | Reuters:
Oil prices climbed to nearly five-month highs on Tuesday, supported by firm Chinese economic data that eased demand concerns, the possibility of more sanctions against Iran and further Venezuelan supply disruptions.
Brent crude rose 15 cents, or 0.2 percent, to $69.16 a barrel by 0636 GMT, having earlier touched $69.50, the highest since mid-November.
U.S. West Texas Intermediate (WTI) futures rose 14 cents, or 0.2 percent, to $61.73 a barrel, after earlier rising above $62 for the first time since early November.
Oil prices climbed to nearly five-month highs on Tuesday, supported by firm Chinese economic data that eased demand concerns, the possibility of more sanctions against Iran and further Venezuelan supply disruptions.
Brent crude rose 15 cents, or 0.2 percent, to $69.16 a barrel by 0636 GMT, having earlier touched $69.50, the highest since mid-November.
U.S. West Texas Intermediate (WTI) futures rose 14 cents, or 0.2 percent, to $61.73 a barrel, after earlier rising above $62 for the first time since early November.
Information flow: Five things we've learned about #Saudi Aramco from its bond prospectus | ZAWYA MENA Edition
Information flow: Five things we've learned about Saudi Aramco from its bond prospectus | ZAWYA MENA Edition:
Ever since the Kingdom of Saudi Arabia announced plans to float a stake in its crown jewel, the Saudi Arabian Oil Company (Saudi Aramco) in order to fund its Vision 2030 plan to diversify the kingdom’s economy there had been some doubts in the market as to whether the deal would ever proceed – particularly after Reuters reported last year that the team working on the IPO had been stood down.
Sceptics felt that the kingdom was wary of the kind of public disclosures it would have to make if it were to bring the company to market via a public listing. However, the government said that its plans had merely altered, with Saudi Aramco instead buying the 70 percent share in petrochemicals giant Saudi Basic Industries (SABIC) first, before eventually bringing a much bigger exploration, refining and chemicals giant to market.
That $69.5 billion deal concluded last week, and in order to pay for it, Saudi Aramco is issuing bonds into global debt capital markets which give investors a similar insight into the firm’s operations as an IPO would. With the prospectus for the bonds being published on Monday, what exactly does it tell us about the company?
Ever since the Kingdom of Saudi Arabia announced plans to float a stake in its crown jewel, the Saudi Arabian Oil Company (Saudi Aramco) in order to fund its Vision 2030 plan to diversify the kingdom’s economy there had been some doubts in the market as to whether the deal would ever proceed – particularly after Reuters reported last year that the team working on the IPO had been stood down.
Sceptics felt that the kingdom was wary of the kind of public disclosures it would have to make if it were to bring the company to market via a public listing. However, the government said that its plans had merely altered, with Saudi Aramco instead buying the 70 percent share in petrochemicals giant Saudi Basic Industries (SABIC) first, before eventually bringing a much bigger exploration, refining and chemicals giant to market.
That $69.5 billion deal concluded last week, and in order to pay for it, Saudi Aramco is issuing bonds into global debt capital markets which give investors a similar insight into the firm’s operations as an IPO would. With the prospectus for the bonds being published on Monday, what exactly does it tell us about the company?
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