Saudi Arabia’s potential sale of shares Aramco will not include the kingdom’s oil reserves. Shares could be sold on local or international markets, the Aramco Chairman Khalid al-Falih said in an interview with al-Arabiya TV.
“The reserves would not be sold, but the company’s ability to produce from the reserves is being studied,” he said, adding that the reserves “will remain sovereign.” Aramco says it has more than 260 billion barrels of proven oil reserves and the equivalent of 50 billion barrels of natural-gas reserves. On Monday, Falih said that plans for a possible initial public offering are not being driven by a need for cash. Rather, he said they signal a desire for greater openness to outside investors. In other news, Governor of the Saudi Arabian General Investment Authority (SAGIA) Abdullatif al-Othman said Saudi Arabia aims to at least double annual inflows of foreign direct investment over the next ten years by focusing on new sectors such as mining, healthcare, and information technology. Othman said SAGIA would seek to remove bureaucratic or regulatory obstacles to investment. [WSJ, Reuters, 1/24/2016]
Egypt will get about $20 billion in oil products from Saudi Arabia over five years, according to an unnamed government official. As part of the agreement, the countries finalized a three-month oil deal worth $1.5 billion that was negotiated earlier this month. The agreement is the latest in a series of Saudi pledges of economic support for Egypt. On Sunday, Saudi Minister of Finance Ibrahim al-Assaf and Egyptian Minister of International Cooperation Sahar Nasr met for the Egyptian-Saudi Arabia Coordination Council’s fourth meeting. Final versions of a number of memoranda of understanding between Egypt and Saudi Arabia were signed, Nasr said. [Bloomberg, 1/24/2016]
Libya has forgone more than $68 billion in potential oil revenues since 2013 amid a power struggle between rival factions that has brought the energy industry to a near standstill and wrecked the economy. The estimate by the Tripoli-based National Oil Corporation (NOC) accounts for the value of lost production as a result of 75 separate oilfield shutdowns and port disruptions. “The economy is in a very critical situation,” NOC Chairman Mustafa Sanalla said. “Relations between the two governments are really very bad and it has crippled the oil industry.” Local protests, infrastructure problems, and militant attacks have also contributed, Sanalla said. He said the Petroleum Facilities Guard (PFG), an armed force meant to protect the energy infrastructure, has been the biggest hindrance to the oil sector. The PFG supports the eastern government in Tobruk and wields influence over important oil storage and export facilities. Sanalla attributes at least $53 billion of the lost revenues to problems caused by the PFG. [FT, Libya Monitor (subscription), 1/24/2016]
Iraq may raise its oil output this year, reaching levels as high as 4 million barrels per day (bpd) from the country’s south, an unnamed senior Iraqi oil official said Monday. Iraq’s oil production hit a record in December at 4.13 million bpd, as output increased from the central and southern fields, Oil Ministry Spokesman Asim Jihad said. “This level makes December a record in terms of output in the central and southern regions and for Iraq as a whole,” Jihad said. Meanwhile, Planning Ministry Spokesperson Abdulzahra al-Hindawi said that Iraq has cancelled around 290 projects worth $9 billion and postponed another 2,100 projects as weak oil prices and security spending take a toll on state finances. He said the government is still going ahead with around 3,500 projects approved under the 2015 fiscal plan that are important for economic and social development. Iraq has also agreed to a $328.8 million deal with General Electric to boost electricity production capacity by 1,000 megawatts. [Reuters, 1/25/2016]
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Saudi Aramco IPO would not include oil reserves
Saudi Arabia’s potential sale of shares Aramco will not include the kingdom’s oil reserves. Shares could be sold on local or international markets, the Aramco Chairman Khalid al-Falih said in an interview with al-Arabiya TV. “The reserves would not be sold, but the company’s ability to produce from the reserves is being studied,” he said, adding that the reserves “will remain sovereign.” Aramco says it has more than 260 billion barrels of proven oil reserves and the equivalent of 50 billion barrels of natural-gas reserves. On Monday, Falih said that plans for a possible initial public offering are not being driven by a need for cash. Rather, he said they signal a desire for greater openness to outside investors. In other news, Governor of the Saudi Arabian General Investment Authority (SAGIA) Abdullatif al-Othman said Saudi Arabia aims to at least double annual inflows of foreign direct investment over the next ten years by focusing on new sectors such as mining, healthcare, and information technology. Othman said SAGIA would seek to remove bureaucratic or regulatory obstacles to investment. [WSJ, Reuters, 1/24/2016]
Egypt said to get $20 billion of oil products from Saudi Arabia
Egypt will get about $20 billion in oil products from Saudi Arabia over five years, according to an unnamed government official. As part of the agreement, the countries finalized a three-month oil deal worth $1.5 billion that was negotiated earlier this month. The agreement is the latest in a series of Saudi pledges of economic support for Egypt. On Sunday, Saudi Minister of Finance Ibrahim al-Assaf and Egyptian Minister of International Cooperation Sahar Nasr met for the Egyptian-Saudi Arabia Coordination Council’s fourth meeting. Final versions of a number of memoranda of understanding between Egypt and Saudi Arabia were signed, Nasr said. [Bloomberg, 1/24/2016]
Libya has lost $68 billion oil revenues since 2013
Libya has forgone more than $68 billion in potential oil revenues since 2013 amid a power struggle between rival factions that has brought the energy industry to a near standstill and wrecked the economy. The estimate by the Tripoli-based National Oil Corporation (NOC) accounts for the value of lost production as a result of 75 separate oilfield shutdowns and port disruptions. “The economy is in a very critical situation,” NOC Chairman Mustafa Sanalla said. “Relations between the two governments are really very bad and it has crippled the oil industry.” Local protests, infrastructure problems, and militant attacks have also contributed, Sanalla said. He said the Petroleum Facilities Guard (PFG), an armed force meant to protect the energy infrastructure, has been the biggest hindrance to the oil sector. The PFG supports the eastern government in Tobruk and wields influence over important oil storage and export facilities. Sanalla attributes at least $53 billion of the lost revenues to problems caused by the PFG. [FT, Libya Monitor (subscription), 1/24/2016]
Iraq may further raise oil output this year
Iraq may raise its oil output this year, reaching levels as high as 4 million barrels per day (bpd) from the country’s south, an unnamed senior Iraqi oil official said Monday. Iraq’s oil production hit a record in December at 4.13 million bpd, as output increased from the central and southern fields, Oil Ministry Spokesman Asim Jihad said. “This level makes December a record in terms of output in the central and southern regions and for Iraq as a whole,” Jihad said. Meanwhile, Planning Ministry Spokesperson Abdulzahra al-Hindawi said that Iraq has cancelled around 290 projects worth $9 billion and postponed another 2,100 projects as weak oil prices and security spending take a toll on state finances. He said the government is still going ahead with around 3,500 projects approved under the 2015 fiscal plan that are important for economic and social development. Iraq has also agreed to a $328.8 million deal with General Electric to boost electricity production capacity by 1,000 megawatts. [Reuters, 1/25/2016]
Also of interest
Gulf Petrochem unveils $50m Fujaira terminal expansion | Gulf News
UAE central bank Q4 survey shows downtrend in demand for credit | Reuters
Bahrain central bank says remains committed to dollar peg | Reuters
Natural gas suppliers consider suspending Egypt contracts after payments missed | WSJ
BP Egypt says LNG shipment was diverted to manage peak demand | Reuters
EBRD to provide Egypt $260 million in direct financing to SMEs in 2016 | DNE
Russia, Egypt to sign MoUs during economic committee meeting | DNE
Egypt and Russia to form alliance for silos and grain storage | DNE
Top Russian MP eyes resumption of flights, tourism with Egypt | Aswat Masriya
Seized properties of Egypt’s banned Muslim Brotherhood worth $1.1 billion | Ahram Online
Fires put out at major Libyan oil terminal | Reuters, Libya Monitor (subscription)
Tunisian police protest over pay in new test for government | Reuters
Presidential advisor says weakness of Turkish lira weakness is not a problem | Reuters
Fitch: Turkish Islamic banking targeted for growth | Reuters
US relies heavily on Saudi money to support Syrian rebels | NYT