Oil & Gas Iraq’s Total oil deal heralds new revenue-sharing formula Iraq secured its $27 billion oil deal with France’s TotalEnergies last week by offering quicker, less risky payback through greater revenue-sharing, a model it could replicate in the future to lure investors. Foreign investment in Iraq’s energy sector has fizzled out since a flurry of post US-invasion deals over a decade ago, with Exxon Mobil, […] July 20, 2023
Banking and Finance Turkey’s monetary tightening faces funding setbacks Bankers warned on Wednesday that the effectiveness of recent monetary tightening in Turkey could be negatively impacted after funding conducted through open market operations (Omo) by the central bank turned negative for the first time in over a decade. The central bank has boosted its reserves by $20 billion since the beginning of June, mostly […] July 20, 2023
Energy Petrobras to review Adnoc’s joint bid for Braskem Brazilian state-run oil company Petrobras said on Wednesday it will analyse all offers presented for petrochemical producer Braskem but believes that discussions about the potential sale of the petrochemical producer are still far from over. Petrobras is one of Braskem’s main shareholders alongside conglomerate Novonor, which holds a controlling stake in the firm but has long […] July 20, 2023
Economy GCC economies to grow at much slower pace in 2023 The economies of five countries in the six-member GCC are forecast to grow even more weakly than expected three months earlier because of lower prices of oil, the region’s main export, according to a Reuters poll of economists. Brent crude, the global benchmark of oil price, has fallen from a near record-high of $139 a […] July 19, 2023
Oil & Gas Japan and Qatar talks focus on bolstering energy supplies Japanese Prime Minister Fumio Kishida agreed to strengthen energy ties and economic cooperation with major gas producer Qatar on Tuesday, in the final leg of a Gulf tour that has focused on securing energy supplies and promoting Japanese high tech. Kishida, who has been urged by Japan’s gas lobby to secure new liquefied natural gas […] July 19, 2023
Banking and Finance US issues waiver for Iraq to pay Iran for electricity The United States on Tuesday moved to let Iraq pay Iran for electricity via non-Iraqi banks, a US official said, a step Washington hopes may keep Tehran from forcing unpopular power cuts during the sweltering Iraqi summer. Secretary of State Antony Blinken signed a 120-day national security waiver allowing Iraq – heavily dependent on Iranian […] July 19, 2023
Banking and Finance Abu Dhabi’s Masdar to raise $750m in green bonds Abu Dhabi renewable energy company Masdar is set to raise $750 million from a debut sale of green bonds that fetched more than $4.2 billion in demand, a bank document showed on Tuesday. The bonds launched at a spread of 115 basis points (bps) over US Treasuries from initial guidance of around 150 bps over […] July 19, 2023
Banking and Finance Saudi’s Almarai draws $4bn in sukuk orders Saudi Arabian food and beverage company Almarai is set to raise $750 million from a sale of 10-year Islamic bonds that drew over $4 billion in orders, fixed income news service IFR said on Tuesday. The sukuk launched at 145 basis points (bps) over US treasuries, IFR said, tightened from initial price guidance of around […] July 19, 2023
Economy A new era of much slower growth dawns in China China is entering an era of much slower economic growth, raising a daunting prospect: it may never get rich. Whether the world’s second-largest economy chugs ahead at three to four percent annually or flirts, as some economists expect, with Japan-like “lost decades” of stagnation, it looks set to disappoint its leaders, its youth, and much […] July 18, 2023
Energy BP and Socar join bid for Israeli offshore gas BP and Azeri national oil company Socar have taken part for the first time in an Israeli licencing round for natural gas exploration, the latest sign of growing international interest in the Eastern Mediterranean basin, sources said. BP and Socar jointly placed a bid along with Israel’s NewMed Energy for two offshore blocks in the […] July 18, 2023
Banking and Finance Lebanon to phase out Sayrafa exchange platform Lebanon’s central bank will decommission the controversial exchange platform known as Sayrafa after governor Riad Salameh’s 30-year tenure ends this month, one of the institution’s vice governors told Reuters on Monday. Salim Chahine said the bank’s leadership was talking with government and parliament policymakers, as well as the International Monetary Fund (IMF), about the need […] July 18, 2023
Banking and Finance Abu Dhabi’s Masdar hires banks for green bonds sale Abu Dhabi renewable energy company Masdar has hired banks to arrange a debut sale of green bonds, a bank document showed on Monday. Citi and First Abu Dhabi Bank are joint global coordinators, joined by BNP Paribas, HSBC, SMBC Nikko, Societe Generale and Standard Chartered as joint lead managers and joint bookrunners, a document from […] July 18, 2023
Banking and Finance South Korea warns of surge in household debts South Korea’s central bank said on Monday there was a need to manage financial stability in addition to price risks as the country’s high household debts have started to climb. “In terms of monetary policy, it should consider financial stability more actively to prevent excessive leveraging or risky asset investments when monetary policy is loose,” […] July 17, 2023
Economy Turkey hikes fuel tax to balance budget spend Turkey raised tax on petrol on Sunday to help fund a 1.12 trillion lira ($42.2 billion) increase to its 2023 budget. February’s earthquakes and the May presidential election sent spending soaring. The additional fuel tax will help with a budget deficit that jumped to 263.6 billion lira in the first five months of the year, […] July 17, 2023
Energy Four groups bid for Israel gas exploration tender Four groups of companies have made bids in Israel’s latest tender for offshore hydrocarbon exploration, the energy ministry said on Sunday. The ministry said the groups include a total of nine companies, five of which were new to the Israeli market. It did not name which companies took part. Huge deposits of natural gas have […] July 17, 2023
Banking and Finance Kuwait plans new fund to develop local economy Kuwait plans to establish a new sovereign fund to develop its local economy, spearhead mega projects and attract funds from foreign investors and the private sector, according to a government plan seen by Reuters on Sunday. The government has tasked the finance ministry and the Kuwait Investment Authority (KIA) with studying plans for the proposed […] July 17, 2023
Tech Elon Musk says Twitter’s cash flow still negative Twitter’s cash flow remains negative because of a nearly 50 percent drop in advertising revenue and a heavy debt load, Elon Musk said on Saturday, falling short of his expectation in March that Twitter could reach cash flow positive by June. “Need to reach positive cash flow before we have the luxury of anything else,” […] July 16, 2023
Oil & Gas Iraq and Iran gas-for-oil barter faces US sanctions A barter of Iranian natural gas for Iraqi oil as described by the Iraqi prime minister this week would likely violate US sanctions on Tehran unless the US issued a waiver permitting it, three former US officials said on Thursday. Iraqi Prime Minister Mohammed Shia Al Sudani on Tuesday said Iraq would begin trading crude […] July 16, 2023
Banking and Finance Turkey’s forex reserves rise to $13bn as lira support ends Turkey’s central bank’s net international reserves rose more than $3 billion to $13.17 billion in the week to July 7, continuing a strong rebound from record lows after the bank stopped using the reserves to support the lira. The central bank’s net reserves fell to $5.7 billion in the week to June 2, their lowest […] July 14, 2023
Banking and Finance Saudi developer Dar Al Arkan plans dollar sukuk Saudi Arabia’s Dar Al Arkan Real Estate Development Co has hired banks to arrange a planned sale of US dollar-denominated Islamic bonds, a bank document showed. The joint lead managers and bookrunners were due to hold fixed-income investor calls and meetings from Thursday. A benchmark-sized sale of senior unsecured sukuk maturing in February 2029 will […] July 14, 2023
Retail Israel lifts tax on imported milk to end shortages Israel’s finance minister Bezalel Smotrich is cancelling the 40 percent customs duty on imported milk for three months to combat a shortage across supermarket chains. Milk production in Israel is subject to centralised planning and government-approved quotas. Since milk prices are set by the state, dairies have been reluctant to boost output and prefer to […] July 14, 2023
Oil & Gas Opec sees 2.2% oil demand growth in 2024 Opec has raised its forecast for oil demand growth for 2023 and predicted only a slight slowdown in 2024. This is despite economic headwinds as China and India continue to drive the expansion in fuel use. In a monthly report, the Organization of the Petroleum Exporting Countries (Opec) said it expects world oil demand to […] July 14, 2023
