United Arab Emirates

Qatar won’t cut gas to UAE: Qatar Petroleum CEO

Saad al-Kaabi, chief executive of Qatar Petroleum, gestures during a news conference in Doha, Qatar, December 11, 2016. Qatar will not cut off gas to the United Arab Emirates despite a diplomatic dispute and a “force majeure” clause in its contract, the chief executive of Qatar Petroleum told Al Jazeera network, two weeks after some Gulf Arab states severed ties with Doha. CEO Saad al-Kaabi said that although there was a “force majeure” clause in the agreement on the Dolphin gas pipeline, which links Qatar’s giant North Field with the UAE, Qatar would not stop supplies for other reasons. “The siege we have today is a force majeure and we could close the gas pipeline to the UAE,” he said. “But if we cut the gas, it does great harm to the UAE and the people of the UAE, who are considered like brothers … we decided not to […]

OPEC compliance with oil curbs rises in March as UAE joins cut: survey

OPEC oil output is likely to fall for a third straight month in March, a Reuters survey found on Wednesday, as the United Arab Emirates made progress in trimming supplies while maintenance and unrest cut production in exempt nations Nigeria and Libya. The reduction by the UAE has helped boost OPEC compliance this month with its production-cutting deal to 95 percent, up from an initial February estimate of 94 percent and a record high, according to Reuters surveys. The Organization of the Petroleum Exporting Countries pledged to reduce output by about 1.2 million barrels per day (bpd) from Jan. 1 – the first accord on supply curbs since 2008. Non-OPEC countries pledged to cut about half as much. OPEC wants to end a glut that is keeping oil LCOc1 below $52 a barrel, half the […]

U.A.E. Says $50 Oil ‘Isn’t Going to Cut It’ for Producers

Crude oil at $50 a barrel is too low for most producing countries, according to United Arab Emirates Energy Minister Suhail Al Mazrouei. Prices have climbed almost 20 percent to above $50 a barrel since the Nov. 30 agreement by the Organization of Petroleum Exporting Countries to cut production for the first time in eight years to curb a global glut. OPEC is reducing output along with 11 other producing nations including Russia after a slump in oil prices the past two years eroded revenue. Crude at $50 a barrel “isn’t going to cut it” for most producers, Mazrouei told an Abu Dhabi energy conference Wednesday. When asked if that level should be a floor, he said: “I will never quote a price because I truly believe we should not target a price.” Brent crude fell 4 cents to $55.06 a barrel at 8:54 a.m. in Dubai, compared with […]

Kuwait Says Saudi Arabia to U.A.E. Comply With OPEC Output Cuts

Oil producers from Saudi Arabia to the United Arab Emirates are complying with production cuts promised last year to stabilize the market, Kuwait’s governor to the Organization of Petroleum Exporting Countries said. Qatar, Kuwait and Oman are also complying, having announced cuts to customers, Nawal Al-Fezaia, Kuwait’s OPEC governor, said in an interview Monday in Kuwait City where OPEC’s Secretary General Mohammad Barkindo is scheduled to have talks on the cuts with Kuwait Oil Minister Essam Al-Marzouk and other officials. OPEC and crude producers outside the group, including Russia, are implementing production cuts of about 1.8 million barrels a day this year after crude prices slumped from more than $100 a barrel since 2014 amid oversupply. Libya and Nigeria are exempt from the cuts because of conflict. Brent crude is little changed this year at $56.84 a barrel after rallying 51 percent last year. “It’s a good time to […]

UAE’s ADNOC to cut January oil supplies to Asia; Kuwait, Oman to follow

Abu Dhabi National Oil Company on Tuesday said it would cut crude supplies by 3-5 percent across its three export grades to meet commitments under an OPEC deal to curb output. The move is one of the first visible indicators that oil markets could be physically tighter in 2017 as the Organization of the Petroleum Exporting Countries (OPEC) and other producers cut production to ease a supply glut and prop up prices. Still, ADNOC’s cut is unlikely to have a large impact on the market as it is within operational tolerance limits, while some buyers have extra oil from Saudi Arabia and Iraq to replace lost Abu Dhabi supplies, traders said. “I think it’s manageable. Many (refiners) received incremental Arab Extra Light in January to cover,” said a North Asian refinery official, speaking on condition of anonymity. In a notice to term lifters, ADNOC said it would reduce Murban […]

Oil slump prompts Gulf states to take shine off cushy government jobs

Ahmed, a Qatari civil servant, used to arrive at his office at a government ministry in Doha late in the morning and leave for home after lunch, collecting a monthly salary of 40,000 rial ($11,000) and a generous housing and travel allowance. But last month a government official made a surprise spot check on the ministry’s offices and found dozens of employees absent. “Punctuality is a duty,” said a letter Ahmed received from the minister’s office. “Qatar expects the best of its citizens.” For a country whose tiny population is the world’s wealthiest per capita and which sits upon its largest natural gas reserves, increasing the productivity of its […]

UAE Oil Minister: We Expect No Significant U.S. Shale Output Growth Anytime Soon

Suhail Al-Mazrouei UAE’s Oil Minister Suhail al-Mazrouei said in a TV interview he did not expect any “significant growth” in shale oil output anytime soon, despite higher oil prices resulting from last week’s OPEC agreement to cut production by 1.2 million bpd. The official added that he expected oil price increases from now on to happen on a “more rational basis,” without elaborating. Mazrouei’s words beg the question of who the minister is trying to convince – OPEC or the market, since weekly rig count reports from Baker Hughes reveal that shale oil operators have been adding drilling rigs consistently over the past few months. The latest report , for the week to November 25, said that the total oil rig count reached 477, marking the 25th weekly increase in 27 weeks. The figure was lower than the same week in 2015, but still indicated that the shale patch […]

Emirates May Quit African Cities Over Dollar Debts From Low Oil

Nigeria, other states withholding payments to foreign airlines CEO says ‘not a good idea’ to carry on serving offender states Persian Gulf airline Emirates said it could scrap flights to African locations as economies there falter following the oil-price collapse and governments withhold ticket revenues to shore up foreign currency reserves. The biggest carrier on international routes may “cut frequencies and possibly even cities” amid the currency crunch and commercial difficulties in some markets, President Tim Clark said Tuesday in Dubai, where Emirates is based. “Certain African countries have seen their currency really go down, it’s not a very good idea to continue there,” Clark said in a briefing at an International Air Transport Association event. “We are reflecting on a number of those.” Nigeria alone owed Emirates $680 million as of early September, Clark has said previously, with carriers including United Airlines and Spain’s Iberia having already halted […]

Dubai Kicks Off Construction of World’s Tallest Building—Again

Construction on what will be the world’s tallest building by 2020 has officially started in Dubai, home to Burj Khalifa, currently world’s tallest man-made structure. The new tower sets another challenge in the history of human architecture: a race the UAE deserves to lead. pic.twitter.com/TH6wmU6ZWi — HH Sheikh Mohammed (@HHShkMohd) October 10, 2016 Dubai’s ruler, Sheikh Mohammed bin Rashid Al Maktoum, laid the foundation stone on Oct. 10 for the Tower at Dubai Creek Harbour, according to a statement by the Dubai government’s media office. “Years ago, we launched Burj Khalifa, the tallest skyscraper in the world,” Sheikh Mohammed said in the statement. “Today, we are celebrating the foundation of a new structure that represents another phase in our journey to be at the forefront of growth in various sectors.” #Dubai is reaching again for the sky with the groundbreaking of The Tower at Dubai Creek Harbour, set to […]

U.A.E. Energy Minister Sees Oil Price `Correction’ by Year-End

The United Arab Emirates foresees a “correction” in crude prices by the end of the year, and the OPEC member has yet to receive an invitation to a possible meeting of oil-producing nations seeking to rein in a global supply glut, Energy Minister Suhail Al Mazrouei said. Markets are poised to re-balance as many oil-producing assets outside the Organization of Petroleum Exporting Countries lose money at current prices, Al Mazrouei told reporters Monday in Abu Dhabi. Declining output at fields that need higher prices to break even is “good news” that points toward a more stable market, he said. “I’m still optimistic that at the end of the year or before the end of the year we will see some correction,” Al Mazrouei said. “We need to be patient. It’s not happening in weeks or months. Correcting to a sustainable price will take time.” Three OPEC members intend to […]

Biggest U.A.E. Bank Says Dollar Supply Tightening Amid Oil Drop

National Bank of Abu Dhabi PJSC, the United Arab Emirates’ largest bank, said the supply of dollars in the country is drying up as the region grapples with the impact of oil trading around $30 per barrel and credit downgrades. “There is a dollar shortage,” Chief Executive Officer Alex Thursby told reporters in Abu Dhabi on Wednesday. “It’s not a crisis, but it is tightening,” he said. Government deposits in the U.A.E. slumped by more than $13 billion in a year after the drop in crude prices, the executive said on an earnings conference call in October. Banks in the U.A.E., holder of the world’s sixth-largest oil reserves, are facing deteriorating conditions as lower crude leads to a decline in government spending, slower economic growth and falling asset quality, according to Standard & Poor’s. The U.A.E.s’ banking sector has lost 56 billion dirhams ($15.25 billion) in government deposits since […]

U.A.E. Says Oil Collapse Will Force All Producers to Cap Volumes

The oil-price collapse will compel all producers to freeze output and no early OPEC meeting can take place without such a move, the United Arab Emirates’ energy minister said.  “This is the reality,” Suhail Al Mazrouei said Tuesday in Abu Dhabi. “Current prices will force everyone to freeze production; stubbornness doesn’t make sense.”  Saudi Arabia — the world’s largest crude exporter — Russia, Venezuela and Qatar have proposed that producers cap production at January levels to bolster prices that have tumbled almost 70 percent in two years. OPEC member Iran, which is ramping up output following the removal of sanctions in January, has said the plan is “ridiculous” and saddles it with “unrealistic demands.”

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Arab States Face $94 Billion Debt Crunch on Oil Slump, HSBC Says

Gulf Cooperation Council countries may struggle to refinance $94 billion of debt in the next two years as the region faces slowing growth, rising rates and rating downgrades, according to HSBC Holdings Plc. Oil-rich GCC states have to refinance $52 billion of bonds and $42 billion of syndicated loans, mostly in the United Arab Emirates and Qatar, HSBC said in an e-mailed report. The countries also face a fiscal and current account deficit of $395 billion over the period, it said. Expectations that these funding gaps “will be part financed through the sale of sovereign U.S. dollar debt will complicate efforts to refinance existing paper that matures over 2016 and 2017,” Simon Williams, HSBC’s chief economist for the Middle East, said in the report. “With the Gulf acting as a single credit market, the refinancing challenge will likely be much more broadly felt” and “compounded by tightening regional liquidity, […]

UAE says supports production freeze deal if supported by all OPEC and Russia

UAE’s Oil Minister Suhail Mohamed Al Mazrouei is accompanied by plaintclothes police as he arrives at his hotel ahead of a meeting of OPEC oil ministers in Vienna, Austria, December 3, 2015. United Arab Emirates’ energy minister Suhail bin Mohammed al-Mazrouei said on Wednesday his country supports the Doha oil producers’ freeze agreement if all OPEC members and Russia follow suit. “The UAE support and encourage the initiative of sustaining production levels if it’s supported by all OPEC members and Russia,” Mazrouei said on his Twitter account. On Tuesday, OPEC power Saudi Arabia and non-OPEC Russia, the world’s top two producers and exporters, agreed to freeze production at January levels if other big oil nations agree to join in. (Reporting by Rania El Gamal, editing by David Evans)

UAE Offers India Free Oil To Ease Storage Woes

In an oil sector first, the oil-rich United Arab Emirates (UAE) has offered free oil to India in return for a storage deal at India’s planned underground facility as the supply glut worsens and some analysts predict that ‘’peak storage” could sending prices crashing further. The UAE’s Abu Dhabi National Oil Company (ADNOC) has agreed to store crude oil in India’s maiden strategic storage facility, sweetening the deal by saying India could take two-thirds of the oil for free. It’s a great deal for India, which is almost fully reliant on imports to meet its crude oil needs. India has lured Abu Dhabi in with the building of a massive underground storage facility system that will be able to take on 5.33 million tons of crude as a bulwark against global price shocks and supply disruptions. ADNOC is eyeing half the storage capacity at one of the new underground […]

As Oil Profits Plunge, Gulf Regimes Weigh the Unmentionable: Taxes

Dubai’s year-round sunshine and near-zero taxes have been easy sells for foreign investors and expatriate workers. Oil’s plummet below $30 a barrel might change that for the glitzy emirate and its Arab Gulf neighbors. Gulf states have spent hundreds of billions of their petrodollars in recent decades building economies virtually from scratch. Lacking enough people and know-how to achieve their ambitions, they have relied on millions of foreign workers lured by, among other things, minimal taxation—and in the case of Dubai, no income tax at all. Now, with the plunge in crude prices, governments from Riyadh to Muscat are reassessing their light-touch tax regimes as they search for fresh sources of income to pay for trophy projects and meet the demands of burgeoning youthful populations for better housing, hospitals and schools. After toying with the idea […]

Banks in U.A.E. Seen Ready for Extended Slump After Drop in Oil

Banks in the United Arab Emirates are prepared for deteriorating conditions into next year as oil prices remain lower for longer, leading to a decline in government spending, slower economic growth and falling asset quality, according to Standard & Poor’s. The five U.A.E. banks rated by S&P “are ready to face the tough period ahead,” thanks to high loan-loss reserves, capital ratios and strong funding profiles, even as earnings will probably fall this year and be “lackluster” next, credit analyst Timucin Engin wrote in a note on Monday. The firm has a stable outlook on National Bank of Abu Dhabi PJSC, Abu Dhabi Commercial Bank PJSC, Sharjah Islamic Bank, National Bank of Fujairah PJSC and Mashreqbank PSC. The slump in crude will also cause a drop in investments by private companies and bank lending, S&P said. Stronger lending practices and balance sheets at U.A.E. banks than seven years ago […]

Emirati energy company claims Kurdish win

Emirati energy company Dana Gas said it resolved a dispute with its German partners regarding joint-venture operations in the Kurdish north of Iraq. Dana Gas in November said German energy company RWE harmed its interests in the semi-autonomous Kurdish north of Iraq by breaching a confidentiality agreement. The Emirati company announced Monday it reached an “amicable and mutually beneficial” agreement with RWE and closed arbitration. As part of the settlement , RWE’s subsidiary in the Middle East joins the consortium, Pearl Petroleum, as a partner with a 10 percent stake. The agreement with RWE comes one day after an international court of arbitration called on the Kurdistan Regional Government to pay Dana and its consortium partners nearly $2 billion for disputes over […]

Oil Slump May Prompt U.A.E. Spending Cuts, Central Bank Says

The United Arab Emirates may cut government spending as a result of the slump in oil prices, Central Bank Governor Mubarak Rashed Al Mansoori said. The decline in the government’s oil revenue “may trigger further fiscal consolidation, albeit at a gradual pace, to preserve priority spending in support of non-oil growth,” Al Mansoori said at a conference in Dubai on Monday. Oil accounted for almost a third of the nation’s gross domestic product last year, government data show. The price of Brent crude has dropped more than 40 percent in the past year, putting a strain on economies in the six-nation Gulf Cooperation Council, where governments rely on income from oil to fund spending. The U.A.E. banking sector has lost 56 billion dirhams ($15.25 billion) in government deposits since September last year, National Bank of Abu Dhabi Chief Executive Officer Alex Thursby said last month. The global economic slowdown […]

Leaked Emirati Emails Could Threaten Peace Talks in Libya

 The United Arab Emirates was shipping weapons to favored belligerents in Libya over the summer in violation of an international arms embargo while simultaneously offering a highly paid job to the United Nations diplomat drafting a peace accord there, leaked Emirati emails show. The leaked correspondence is threatening to undermine months of Libyan talks by tarring the diplomat with an apparent conflict of interest. The emails also open a new window into the hidden and contradictory machinations of regional players like the United Arab Emirates that have helped inflame the fighting even as their diplomats say they support a peaceful solution. “The fact of the matter is that the U.A.E. violated the U.N. Security Council Resolution on Libya and continues to […]

ADIPEC: Strain of low oil prices apparent even at plush Gulf meeting

On stage only a short time after the United Arab Emirates said it would increase its oil production despite low worldwide prices, the oil and gas minister of neighboring Oman didn’t pull any punches. Sultan Ahmed Al Jaber, the minister of state in the United Arab Emirates, smiles while listening to a speech in Abu Dhabi, United Arab Emirates, on Thursday, Oct. 29, 2015. Speaking from a Gulf nation whose skyscrapers rose on oil wealth, Britain’s Foreign Secretary Philip Hammond has called on the rest of the wealthy Arab world to put their money toward renewable and clean energy ahead of the landmark climate change conference in Paris later this year. (AP Photo/Jon Gambrell) ABU DHABI, United Arab Emirates (AP) — On stage only a short time after the United Arab Emirates said it would increase its oil production despite low worldwide prices, the oil and gas minister of […]

Dubai Stocks Enter Bear Market as Mideast Equities Slump on Oil

Dubai stocks dropped into a bear market, leading declines across most Middle Eastern equity markets, after Friday’s U.S. labor report increased expectations that the Federal Reserve will lift interest rates this year, pushing Brent crude lower. The DFM General Index slid 3 percent to 3,347.23, the lowest level since December and the biggest drop in more than two months. The gauge has fallen more than 20 percent since a peak in April. Saudi Arabia’s Tadawul All Share Index lost 0.6 percent, closing at the lowest level since January 2013. “When you see an aggressive drop in oil price, it puts people on edge,” said Ahmed Shehada, the Dubai-based executive director for advisory and institutions at NBAD Securities LLC, a unit of the U.A.E.’s biggest bank. “In addition, there are the banks’ results. A lot of operating income has dropped and this is having” an effect across the board, he […]

Oil Slump Weighs on Saudi, U.A.E Businesses as PMI Drops

The slump in oil prices is sapping growth momentum of private businesses in the two biggest Arab economies, according to a key indicator released on Tuesday. The Emirates NBD Purchasing Managers’ Index for Saudi Arabia dropped for a second month in a row to 55.7 in October, the lowest level since since the survey began in 2009, driven by weaker expansion in new business. The same measure for the United Arab Emirates fell to 54 from 56 in September, the lowest since April 2013, the Dubai-based bank said. Readings above 50 still signal expansion, while those below indicate contraction. Oil prices have dropped more than 40 percent over the last year, prompting some governments in the six-nation Gulf Cooperation Council to plan spending cuts and curb or eliminate fuel subsidies. Non-oil economic growth in the region will slow to 3.8 percent this year from 5.5 percent in 2014, according […]

Expect more oil from United Arab Emirates

United Arab Emirates could expand oil production using enhanced recovery techniques, U.S. Energy Information Administration reports. File photo by A.J. Sisco/UPI WASHINGTON, Oct. 23 (UPI) — OPEC-member United Arab Emirates could expand oil production by 30 percent by 2020 using a costly recovery technique, a U.S. federal review finds. The United Arab Emirates was the third-largest contributor to oil production from the Organization of Petroleum Exporting Countries last month. September oil production of 2.9 million barrels per day represented a 0.8 percent increase from the previous month. A brief report from the U.S. Energy Information Administration said Emirati production could increase by 30 percent by 2020 using a process called enhanced oil recovery. Primary recovery from oil deposits relates to natural pressure in the reservoir. Secondary recovery involves water or gas injection into the well to increase production. Enhanced oil recovery techniques include further stimulation from steam, gas or […]

UAE on track to meet 3.5 mil b/d production capacity target in 2017: energy minister

The UAE is continuing to invest in its oil and gas development plans despite lower oil prices, and is on track to meet its 2017 production capacity aims, energy minister Suhail al-Mazrouei said Sunday. The Persian Gulf state will spend as much as $35 billion in an attempt to cut its dependence on natural gas for power generation. “We are continuing with our investments,” Mazrouei said at an energy event in Abu Dhabi, state-run WAM news agency reported Sunday, adding that was no delay due to the fall in the price of crude oil. The sharp oil price decline that began in the second half of 2014 has prompted concern over upstream investments, but Mazrouei reiterated that the UAE remained on track to meet its medium-term production capacity target of 3.5 million b/d by late 2017 or early 2018, up from around 3 million b/d currently. Article continues below… […]

Rig maker Lamprell expects tough year

Emirati rig builder Lamprell said Monday it expects the weak market for crude oil will impact its ability to land new contracts in 2015. The oil services company said it had a strong year in 2014, but didn’t anticipate a replication of that success . “With the recent slump in the oil price, winning work in 2015 is going to be a challenge as the industry adjusts to the new realities,” Chief Executive Officer Jim Moffat said in a statement. Oil prices have lost roughly half of their value since June as markets tilt toward the supply side in a weakened global economy. The price is forcing some industry leaders to cut back on capital spending plans for 2015, which is spilling over into secondary […]

Age of Plenty Seen Over for Gulf Arabs as Oil Tumbles

The boom that adorned Gulf Arab monarchies with glittering towers, swelled their sovereign funds and kept unrest largely at bay may be over after oil prices dropped by almost 50 percent in the last six months. The sheikhdoms have used the oil wealth to remake their region. Landmarks include man-made islands on reclaimed land, as well as financial centers, airports and ports that turned the Arabian desert into a banking and travel hub. The money was also deployed to ward off social unrest that spread through the Middle East during the Arab Spring. “The region has had 10 years of abundance,” said Simon Williams , HSBC Holdings Plc’s chief economist for central and eastern Europe , the Middle East and North Africa. “But that decade of plenty is done. The drop in oil prices will hurt performance in the near term, even if the Gulf’s buffers are powerful enough […]

U.A.E. Concerned That Oil Glut May Curb Exploration, Production

The collapse in oil prices may deter investment in exploration and production projects predicated on $100 crude, United Arab Emirates’ Energy Minister Suhail Al Mazrouei said. “What worries us is that some investors will not continue to invest,” Al Mazrouei told reporters today in Abu Dhabi. “Not us, others, are not going to continue to invest. And in a few years, we’re going to face difficulties finding enough investments in the market.” Oil has fallen into a bear market this year on increased output of U.S. shale and other supplies. The Organization of Petroleum Exporting Countries, including the U.A.E., will meet Nov. 27 to assess the market and production. Saudi Arabia and Kuwait have resisted calls for the group to cut output, while Libya, Venezuela and Ecuador have asked for action to keep prices from falling lower. Brent crude has tumbled 29 percent since June 19. “This isn’t the […]

BP, Shell in running for Emirati oil fields

British energy company BP and Dutch supermajor Shell are in the running for oil prizes in the Persian Gulf region, the Emirati minister of energy said Monday. Close to a dozen international energy companies are competing for the rights to tap in to onshore oil fields in the region. BP and Royal Dutch Shell have a decades-old partnership with the Abu Dhabi Co. for Onshore Oil Operations, already pumping 1.5 million barrels of oil per day. Suhail al-Mazrouei, minister of energy for the United Arab Emirates, told The Telegraph both companies are in the top running for onshore licenses . “Shell and BP are amongst those companies that submitted bids,” he said in an interview published Monday. “They have been legacy partners, and we hope they will have a […]

Islamic State Draws U.A.E. Into Fight Against Extremists

For the desert cities of Dubai and Abu Dhabi , luxury, prosperity and security in a region torn by conflict are things worth protecting. In a country known more for building glitzy shopping malls and trophy skyscrapers than battling terrorists, the United Arab Emirates is involved in the fight against Islamic militants like never before. It took part last week in U.S.-led airstrikes against Islamic State, underlining the scale of the perceived threat from the extremists after they took cities in Iraq and this month gained ground in Syria . “This is more than a red line for them and that is why they are pro-actively taking part in those strikes,” said Ghanem Nuseibeh, founder of Cornerstone Global Associates, which advises clients on risk in the Middle East. Islamic State has “the ability to expand whereas al-Qaeda did not,” he said. The U.A.E. and fellow Gulf Arabs regard Islamist […]

Abu Dhabi oil expansion backed by $52 bil in committed investment: execs

Abu Dhabi (Platts) Executives of the UAE’s Abu Dhabi National Oil Company and affiliated operating partnerships have disclosed about $52 billion of investment commitments intended to achieve a government target of raising Abu Dhabi’s oil production capacity to 3.5 million b/d by 2017, even as the emirate undergoes what promises to be a major shift in its concession structure. The investment total includes major contracts already awarded in the past two to three years. But the bulk of the spending is planned for the next three years, as the UAE’s major oil producing emirate intensifies its push to lift output capacity from its current level of, at most, 2.9 million b/d, mostly from aging fields with high depletion rates. ADNOC Deputy Director of Strategy and Coordination, Omar al-Suwaidi, told delegates attending the Abu Dhabi International Petroleum Exhibition and Conference in the UAE capital Monday that its […]