Opec strategy pays off
10 January, 2018 | By RICHARD THOMPSON
A series of events in the final weeks of 2017 provide a strong indication of what we can expect in the year ahead.
From an economic perspective, the most significant was the 30 November agreement between Opec and non-Opec oil producers to extend the oil production cap to the end of 2018. The move aims to rebalance global oil supply and demand, and remove damaging volatility in the energy markets.
The strategy is working. Oil prices are climbing and the improved outlook gives a degree of fiscal flexibility that will help governments to push ahead with difficult economic reforms.
An initial public offering (IPO) of shares in the fuel distribution arm of Abu Dhabi National Oil Company in December was the first of several listings planned in the region. This will be followed in 2018 by the Saudi Aramco IPO, which could be the biggest share sale in history. These sales pave the way for the more challenging privatisation of the region’s utilities and other state entities.
There is huge investor appetite to buy into the region’s prime assets, and as well as delivering substantial windfalls to governments, the privatisations will have a transformational effect on the region.
Set against this is rising political risk. The ongoing Qatar crisis, the anti-corruption arrests in Saudi Arabia and the missiles fired at the GCC from Yemen, all in December, could undermine investor confidence.
The coming year will continue to deliver shocks. But companies must not lose sight of the powerful, long-term fundamentals driving the region – a fast-growing, young population, an expanding middle class, ambitious and well-funded diversification programmes, and the world’s most abundant energy supplies.
Plans include expanding the liquefaction capacity of the Qalhat plant
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Adnoc Onshore is preparing to invite bids for two contracts aimed at developing its North East Bab site, according to industry sources.
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Investments will be made on oil and gas exploration and production programmes
Saudi Aramco’s CEO says the state oil company is planning to invest $300bn over the next 10 years in ...
Ratings agency Moody’s says oil and gas discovery should attract foreign investment into the kingdom
The discovery of hydrocarbon deposits in Bahrain – if verified by an international oil consortium as ...
China investment makes up an increasing proportion of the financial support for the largest projects in the region’s power sector
The financial close of the $4.4bn fourth phase of Dubai’s Mohammed ...
Project has stalled since Shell pulled out in 2016
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Maire Tecnimont is expected to take between one and one a half years to complete the feed works
Abu Dhabi Polymers Company (Borouge), the joint venture of Adnoc and Austria’s Borealis, ...
IMPARTING KNOWLEDGE: The region’s construction industry is in a state of revival and can learn valuable insights from its oil and gas counterpart
With nearly $1.6tn-worth of major building and infrastructure ...
Gulf states are planning to spend $320bn in the oil and gas sector, according to Suhail Mohamed al-Mazrouei, the UAE’s Minister of Energy & Industry and the current Opec Conference ...
Oman plans LNG capacity expansion
UAE presses forward with an expansionary budget
Adnoc prepares to invite bids for two field
Saudi Aramco to invest $300bn in oil and
Bahrain upstream discovery could boost credit ratings
China ramps up investment in Middle East power
Adnoc says its $10bn Bab sour gas project
Abu Dhabi to tender Borouge 4 in mid-2020
Transforming Construction: Lessons from Oil & Gas
Gulf states to spend $320bn in the oil
10 January, 2018 | .By RICHARD THOMPSON