Technical Challenges Could Slow Shale Growth -Schlumberger CEO
Technical challenges could slow growth shale oil production in the next 12 to 18 months, the chief executive of Schlumberger NV, the world’s largest oilfield services provider, said on Tuesday.Paal Kibsgaard, CEO, was speaking at an investment conference in Riyadh.(Reporting by Andrew Torchia; Writing by Davide Barbuscia; Editing by David Goodman)
London Court Finds for Creditors in Dana Gas Sukuk Dispute
A London High Court judge again ruled in favour of creditors on Thursday in a dispute over whether United Arab Emirates energy company Dana Gas must repay $700 million of Islamic bonds, a source familiar with the court proceedings said. Judge George Leggatt rejected an attempt by the company to overturn his decision last November that the purchase undertaking behind the sukuk was valid and enforceable. There was no immediate comment from Dana. Reporting by Davide Barbuscia; Writing by Andrew Torchia
Qatargas Inks Deal to Deliver LNG to Austria's OMV
State-run Qatargas on Wednesday agreed a sale and purchase deal with Austrian oil and gas group OMV to deliver up to 1.1 million tonnes of liquefied natural gas annually for five years. From January 2019, the gas will be provided by Qatar Liquefied Gas Co, a venture between Qatar Petroleum and Shell . It will be delivered to the Gate LNG Terminal in the Netherlands on board Qatargas’ chartered LNG vessels. Facing threats to its market share in Europe from a wave of new U.S.
Judge Rules in Favor of Creditors in Dana Gas Islamic Bond Case
A London High Court judge on Friday ruled in favour of creditors in a case over whether energy company Dana Gas must repay $700 million of Islamic bonds, a copy of the ruling seen by Reuters showed. The case is being closely watched by the global Islamic finance industry because some investors think it could set a precedent for other issuers of Islamic bonds or "sukuk". Dana has said it does not have to redeem the bonds because it claims…
London Court Adjourns Dana Gas Sukuk Trial
A London High Court judge has adjourned hearings on whether the United Arab Emirates' Dana Gas must redeem $700 million of Islamic bonds when they mature at the end of this month, sources familiar with the matter said on Friday. High Court judge George Leggatt is expected to resume the hearings by Nov. 13, the sources said. In a complex case that is being fought in British and UAE courts, Dana is refusing to make payments on the sukuk on the grounds that changes in Islamic finance over recent years have made the bonds unlawful in the UAE.
ADNOC to Spplit Huge Oil Concession, in Talks with Potential Partners
State-owned energy giant Abu Dhabi National Oil Co (Adnoc) said on Monday that it would split its ADMA-OPCO offshore oil concession into two or more areas with new terms to unlock greater value and increase opportunities for partnerships. Adnoc is in advanced talks with more than a dozen potential partners, the company said. The current operating licence for the concession will expire next March. The potential partners are a mix of existing concession holders in Adnoc's offshore oilfields and new participants…
Abu Dhabi Fund Takes 5% Stake in Dana Gas
Goldilocks Investment Co, an open-ended equity fund which is part of Abu Dhabi Financial Group, said on Monday it had bought 5 percent of Abu Dhabi-listed gas producer Dana Gas. The fund was launched last October as a $200 million vehicle with a strategy of taking minority stakes in companies and helping them to restructure and develop. Its brief statement did not say what it intended to do with Dana. Dana is struggling to recover hundreds of millions of dollars in overdue payments from Egypt and Iraqi Kurdistan.
As Saudis Prepare for IPO, Some Have Misgivings
Many Saudis support oil firm Aramco's share offer, but some express concern in rare public criticism. Jamil Farsi, a prominent Saudi Arabian jewellery tycoon, made an impassioned plea to the investment minister at a meeting of the Jeddah Chamber of Commerce this month. "I don't know anything about economics but I beg you, and I beg the officials in the country, not to sell Aramco - not 5 percent, not 1 percent," he said. Investment minister…
Positive economic data, oil may buoy Saudi
Positive economic data and firm oil prices may buoy Saudi Arabia's stock market on Sunday, but a fourth-quarter earnings miss by Industries Qatar could dampen that market. Growth in Saudi Arabia's non-oil private sector accelerated to its fastest rate for 17 months in January as the government injected cash into the economy after a long period of austerity, a purchasing managers' index based on a survey of companies showed on Sunday. Meanwhile…
SABIC to acquire remaining 50 pct of Shell venture for $820 mln
Saudi Basic Industries Corp (SABIC) has signed an agreement to acquire the 50 percent that it does not already own in its petrochemical venture with Shell Arabia, a unit of Royal Dutch Shell, for $820 million, SABIC said on Sunday. "As per the partnership agreement between the two companies that stipulates the right of SABIC to renew or end the partnership by the end of 2020...SABIC decided to acquire the full stake of Shell, which is 50 percent," it said.
Qatar to Merge LNG Producers Qatargas and RasGas
Qatar will merge state-owned liquefied natural gas producers Qatargas and RasGas Co Ltd, the chief executive of Qatar Petroleum (QP) said on Sunday, in the Gulf state's latest reaction to lower energy prices. The more-than-two-year slump in oil prices has forced Gulf countries to reduce state spending and consider consolidations as a way to cut costs: among the biggest being Abu Dhabi's merging of Mubadala and International Petroleum Development Co.
Saudi's PetroRabigh to shut ethane cracker for 21 days
Saudi Arabia's Rabigh Refining and Petrochemical Co (PetroRabigh) will shut its ethane cracker for 21 days effective from Nov. 14 for maintenance, the company said in a bourse filing on Sunday. The suspension, which aims to improve the plant's safety and efficiency, will impact the firm's fourth-quarter earnings by around 375 million riyals ($100 million), the statement added. It is the second time in recent months that the firm, a joint venture between Saudi Aramco <IPO-ARMO.SE> and Japan's Sumitomo Chemical, has shut the unit.
Profit-taking Hits Gulf Equities after oil tumbles
Profit-taking hit major equity markets across the Gulf in early trade on Sunday after crude oil suffered its biggest weekly percentage decline since January. Petrochemical shares were the main drag on Saudi Arabia's index, which was down 0.4 percent after 25 minutes. Heavyweight Saudi Basic Industries lost 0.3 percent after Brent oil closed at $45.58 a barrel on Friday, the lowest since Aug. 11. Banking shares were also weak after enjoying two weeks of strong gains, with the sub-index down 0.3 percent.
Saudi Aramco Awards Long-term Contract to Abu Dhabi's NPCC
National oil giant Saudi Aramco <IPO-ARMO.SE> has awarded a long-term contract to National Petroleum Construction Co (NPCC) of Abu Dhabi for work on Aramco's offshore facilities, it said on Wednesday. NPCC will help to build offshore oil and gas platforms, pipelines, power cables and other infrastructure, Aramco said in a statement, without giving a monetary value or details of the work. The contract has a duration of six years with options to extend it for up to 12 years.
OPEC Reaches First Deal to Cut Oil Output Since 2008
OPEC agreed on Wednesday to cut its oil output for the first time since 2008, with the group's leader Saudi Arabia softening its stance on arch-rival Iran amid mounting pressure from low oil prices. Two sources in the Organization of the Petroleum Exporting Countries said the group would reduce output to 32.5 million barrels per day from current production of 33.24 million bpd. How much each country will produce is to be decided at the next formal meeting of OPEC in November…
Petchems Boost Saudi but Markets Sluggish
Petrochemical shares boosted Saudi Arabia's stock market early on Sunday on the back of strong oil prices but most share markets in the Gulf were barely changed. The main Saudi equities index edged up 0.2 percent in the first half-hour as petrochemical blue chip Saudi Basic Industries climbed 1.2 percent to 84.50 riyals. It faces technical resistance at 86-87 riyals, the top of the range in which it has been trading since April. Dubai's stock index also bucked the general flat trend…
Gulf Set to Consolidate, Supported by Oil
Gulf stock markets look set to consolidate on Sunday, supported by last week's rebound in oil prices but lacking other positive factors to spur buying of individual stocks. Brent crude oil closed above $50 a barrel on Thursday and Friday for the first time since July 4. This may continue to encourage the rebuilding of positions in Saudi Arabian petrochemical shares. Other parts of the global market environment are not as positive, however, with global equities falling back 0.4 percent on Friday because of renewed talk of a U.S.
Bounce in Oil Prices may lift Gulf Shares
A recovery in oil prices at the end of last week may lift stock markets in the Gulf on Sunday but second-quarter earnings from some of Dubai's second-tier companies may limit gains on that bourse. Brent crude futures settled 2.0 percent higher at $46.97 at barrel on Friday after touching $47.05, the highest in more than three weeks. Saudi Arabia's index, which lagged its peers last week, may outperform on Sunday as investors buy oil-sensitive shares such as petrochemicals.
New Refinery Capacity to Cut Oman Crude Oil Exports
Oman's crude oil exports will drop by about 50,000 barrels per day when new refining capacity comes onstream in the northern city of Sohar by early 2017, Minister of Oil and Gas Mohammad bin Hamad al-Rumhy said on Wednesday. Rumhy said the refinery project had been due to be commissioned by the end of 2016, but there had been a delay so the commissioning date would be in the first quarter of next year. The project would increase the Sohar refinery's capacity by between 65 and 70 percent. "It will take an additional 70 to 90,000 bpd.
Gulf May be Dampened by Oil, Aftermath of Earnings
Stock markets in the Gulf may be weighed down by soft oil prices and the aftermath of a mediocre corporate earnings season on Sunday, while Egypt's index may be boosted slightly as its currency strengthens on the black market. The September Brent oil contract settled at $42.46 a barrel on Friday, down 0.6 percent on the day and 14.5 percent lower on the month. It was the biggest monthly drop for Brent since December. Earnings season is now over in Saudi Arabia and mostly finished in the rest of the Gulf.
