ADNOC lands $11 billion financing for future gas output | Reuters

ADNOC lands $11 billion financing for future gas output | Reuters

Abu Dhabi National Oil Company has secured $11 billion in structured financing to monetise future gas production from its Hail and Ghasha development, the state company said on Thursday, after Russia's Lukoil exited the project.

The deal, signed with partners Eni (ENI.MI), opens new tab and PTTEP (PTTEP.BK), opens new tab, involves 20 global and regional banks. It uses a "pre-export finance" model backed by future gas throughput, providing upfront cash years before first production, which is expected by the end of the decade.

The transaction is the latest move in ADNOC’s strategy to leverage its balance sheet and fund a transition into a global energy major. The company has previously utilised lease-leaseback deals for infrastructure and listed six subsidiaries to raise billions of dollars. It also set up XRG, an international investment arm that has swelled to more than $150 billion in assets, including Germany's Covestro.

LUKOIL EXITS GHASHA

Lukoil, which doubled its stake in Ghasha to 10% earlier this year, exited the concession in November, an ADNOC spokesperson told Reuters. The spokesperson said Lukoil transferred its stake to ADNOC following the sanctions but declined to provide further details. The move follows Lukoil’s efforts to divest its foreign operations, crippled by U.S. sanctions imposed in October aimed at pressuring Russia to end its war in Ukraine.

"It's the first-ever greenfield gas-based pre-export finance," a source close to the deal said, adding it allows ADNOC to lower the equity contribution and improve returns.
The non-recourse financing includes 11 local and regional banks, seven Asian banks, and three Western lenders, including Citi, Bank of China and ICBC.

"It's probably the largest participation from Chinese banks in a pre-export finance facility in the Middle East ever," the source said, adding ADNOC secured attractive rates.

Chinese banks lent over a third of the financing for Saudi Aramco's Jafurah, potentially the biggest shale gas project outside of the U.S., which aims to reach 2 billion standard cubic feet per day of gas by 2030.

ADNOC CEO Sultan Al Jaber, in a statement, said Hail and Ghasha "is an important contributor to ADNOC’s gas strategy and is on track to generate significant value." It aims to produce 1.8 bcfd of gas with net-zero emissions.

#Kuwait to sign $4 billion Mubarak Al-Kabeer port contract with China’s CCCC next week | Reuters

Kuwait to sign $4 billion Mubarak Al-Kabeer port contract with China’s CCCC next week | Reuters

Kuwait will sign a contract next week with China Communications Construction Company (CCCC) to complete the Mubarak Al-Kabeer Port project, Public Works Minister Noura Al-Mashaan said on Thursday.

The Central Agency for Public Tenders approved on December 1 a contract between the ministry and CCCC for engineering, procurement and construction of the port's first phase, according to the official gazette.

The contract is valued at 1.219 billion Kuwaiti dinars ($3.97 billion), a government document seen by Reuters showed.

Kuwait's prime minister will attend the signing ceremony with the Chinese side, Al-Mashaan said in a statement.

Mubarak Al-Kabeer Port, on Bubiyan Island in northern Kuwait, is a strategic project aimed at creating a secure regional corridor and commercial hub. China has sought to link it to its Belt and Road Initiative.

Kuwait hopes the project will support economic diversification, boost GDP and help restore its regional commercial and financial role. The government says about 50% of the first phase has been completed but gave no details on remaining work.

The port is among several mega-projects Kuwait is pursuing with Chinese support, including power and water plants, renewable energy and waste recycling projects, as well as new residential cities.

Kuwait signed several memorandums of understanding with China in 2023 during a visit to Beijing by then-Crown Prince Sheikh Meshal Al-Ahmad Al-Sabah, who became emir in December 2023.

Most Gulf stock markets rise as oil prices hold steady | Reuters

Most Gulf stock markets rise as oil prices hold steady | Reuters

Most Gulf stock markets ended higher on Thursday, with Saudi Arabia rebounding from a two-year low, as steady oil prices created a more positive mood.

Oil — a key catalyst for Gulf financial markets — held firm after reports Washington was preparing new measures targeting Russian crude, while traders also assessed potential disruptions tied to a Venezuelan tanker blockade.

Saudi Arabia's benchmark stock index (.TASI), opens new tab rose 0.4% after touching its lowest level in about two years, with most sectors advancing.

Saudi National Bank (1180.SE), opens new tab added 1.1%, while Saudi Arabian Mining Co (1211.SE), opens new tab (Ma'aden) jumped 4% after the miner said it received the Ministry of Energy's approval for feedstock allocation for its Phosphate 4 project.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab snapped a four-session losing streak to close 0.5% higher, led by gains in financials and energy. First Abu Dhabi Bank (FAB.AD), opens new tab climbed 1.5% and ADNOC Gas (ADNOCGAS.AD), opens new tab rose 0.6%.

Separately, Abu Dhabi National Oil Company secured $11 billion in structured financing to monetise future gas production from its Hail and Ghasha development.

Dual-listed Orascom Construction fell 3.4% after Norbury Capital said on Wednesday it would contest fertiliser maker OCI's proposed merger with Orascom Construction in its current form, arguing it undervalues OCI and disadvantages minority shareholders.

The Qatari benchmark index (.QSI), opens new tab extended losses for a fourth session, closing down 0.7% as most stocks declined. Industries Qatar (IQCD.QA), opens new tab slid 2% and Qatar National Bank (QNBK.QA), opens new tab — the region's largest lender — fell 1.3%.

Separately, state-owned QatarEnergy lowered the term premium for February-loading al-Shaheen crude after weakness in spot benchmark premiums, sources said.

Dubai's benchmark stock index (.DFMGI), opens new tab slipped 0.5%, dragged down by a 9.6% drop in Gulf Navigation Holding (GNAV.DU), opens new tab and a 0.7% decline in Emaar Properties (EMAR.DU), opens new tab.

Tecom Group (TECOM.DU), opens new tab rose 2.5% after the business districts operator said it launched a 615 million dirham innovation hub in Dubai Internet City to meet rising office-space demand.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell for a third straight session to end 1.4% lower as broad-based weakness persisted. Eastern Company (EAST.CA), opens new tab dropped 5.6%, while Commercial International Bank (COMI.CA), opens new tab fell 2.7%.