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.
Having long been prevalent in the Middle East’s civil construction space, contractors from China are now looking to new sectors
In mid-July, the UAE hosted an official state visit by Chinese ...
Increased spending is needed to avoid future oil shortages, say industry leaders in Abu Dhabi
There is a growing consensus among international oil companies and global energy analysts that peak demand ...
State oil company targeting five offshore and three onshore fields for high-sulphur gas capacity expansions
Abu Dhabi National Oil Company (Adnoc) is considering the investment of $20bn in developing sour gas ...
Alongside existing strategic oil projects, the discovery of a giant offshore reserve at Khalij al-Bahrain has livened up Manama’s energy prospects
When Bahrain’s Oil Minister Sheikh Mohammed bin Khalifa al-Khalifa announced ...
Adnoc is considering adjustments to its In-Country Value (ICV) system, which was introduced in January this year.
An Adnoc spokesperson told MEED: “As with any programme of this nature, you listen and learn during ...
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 ...
Amid strengthening oil revenue and growth conditions, Abu Dhabi is coaxing the economy with a stimulus plan
The outlook for the UAE economy is buoyant upward growth, thanks in part to ...
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 ...
Plans include expanding the liquefaction capacity of the Qalhat plant
Oman plans to extend the lifespan of its liquefied natural gas (LNG) facilities and raise production capacity by 10 per cent ...
Rising output from the mammoth Zohr gas field, coupled with ambitions to augment its reserves, have helped Cairo regain its gas exporter status after a five-year hiatus
Italian energy major Eni’s ...
Chinese firms set to play a major role
ENERGY CLUB 1: Investing in the future of
Abu Dhabi considering $20bn investment in offshore sour
Bahrain holds on to energy revival hopes
Adnoc considers changes to In-Country Value scheme
Bahrain upstream discovery could boost credit ratings
UAE presses forward with an expansionary budget
China ramps up investment in Middle East power
Oman plans LNG capacity expansion
Egypt upstream gas exploration gathers speed
10 January, 2018 | .By RICHARD THOMPSON