Saudi Arabia’s Record $120Bn Budget Focuses On Capital Expenditure, Education
Saudi Arabia’s vast industrial and infrastructure expansion is reflected in the country’s record budget for the year ahead. The budget is aimed at fostering economic growth, but at the same time is not using all-time high oil prices as justification for imprudent spending that adds to inflationary pressures. The Saudi cabinet on 10 December approved the 2008 budget with revenue projected at SR450bn ($120bn), up 12.5% on the 2007 budget figure, expenditure at SR410bn ($109.3bn), up 7.9% on 2007, and a resulting surplus of SR40bn ($10.7bn) which is double the surplus of SR20bn ($5.3bn) projected for 2007. The 2007 budget has realized an actual surplus of SR178.5bn ($47.6bn) on revenue of SR621.5bn ($165.7bn), and expenditure of SR443bn ($118.1bn) is the highest in the country’s history. With record oil prices at the end of 2007, which are expected to remain high during 2008, Saudi Arabia is likely to enjoy windfall oil revenue next year, yielding twin budget and balance of payments surpluses. [ more... ]
Libya’s Gas Round Attracts Big Players, But Turn-Out Is Low
Libya’s National Oil Corporation (NOC) has awarded just five of the 14 gas-prone exploration areas on offer in its latest upstream bid round, designed to raise the country’s gas profile. Competitive bidding from some of the leading players within the industry has boosted the North African producer’s chances of increasing its gas reserves. Shell, Sonatrach and Gazprom expanded their presence in Libya, where NOC has now taken significant steps towards transforming the underdeveloped gas sector. Germany’s RWE Dea and US independent Occidental also picked up new acreage. But low levels of participation may have hindered the country’s plan to more than double its 52 tcf of gas reserves by 2020. [ more... ]
1Q 08 Decision On Oman’s Proposed Al-Duqm Refinery/Petrochem Project
A study being undertaken on behalf of the Omani government into the proposed refinery and petrochemical project at al-Duqm, a port under development on the Indian Ocean in the southeast of the country, will be completed in the first quarter of 2008, MEES learns. A decision will then be taken on whether to implement the project. But because the engineering, procurement and construction (EPC) market is very tight, the Omani government will not be ready to start appointing contractors until the second half of 2008. Bidding could begin in late-08/early 09. But if the EPC market remains stretched, then the project might be delayed. At the same time, the government is discussing the possibility of handing the project over to Oman Oil Company (OOC) which might bring in Omani or international investors. [ more... ]
NIOC And Sinopec Sign Unexpected $2Bn Deal For Yadavaran Oilfield Development
National Iranian Oil Company (NIOC) and China’s Sinopec took the oil industry by surprise on 9 December by announcing a $2bn agreement to develop Iran’s Yadavaran oilfield. After three years of negotiations for oilfield development linked to LNG sales, the two parties have instead settled on a scaled-down upstream project with no link to LNG purchases. Only a month ago Yadavaran talks were stalled over the rate of return – NIOC is known to argue for a return of less than 10% in buyback projects, while Sinopec was calling for at least 15% (MEES, 19 November). Yet Iranian Minister of Petroleum Gholamhossein Nozari said after the signing ceremony that the agreed rate of return was 14.98%. [ more... ]
MEES Agenda
MENA Exploration Campaign For 2007 Notable For North African Discoveries
North African oil and gas producers made a string of discoveries in 2007, although the large Middle East Gulf producers also made some potential additions to reserves. The dominance in numerical terms of North Africa among the exploration successes is a result of recent changes in policy and increased efforts to attract investment. [ more... ]
Crude Prices Boosted By Central Banks’ Liquidity Injection
IEA Sees Market Remaining Tight Despite Increased OPEC Supply
EIA Trims Demand Growth Outlook To 1.4Mn B/D For 2008
China’s Oil Imports For November 11% Higher Than October
Crude Oil Formulas/Posted Prices ($/B)
NEWS BY COUNTRY
ALGERIA
Sonatrach Makes Two Gas Discoveries In Southeast Algeria
At Least 34 Killed In Algiers Attack Targeting UN And Government Buildings
BAHRAIN
΄Abd Al-Karim Al-Sayid Is New Bapco President/CEO
CASPIAN
Uzbekistan Awards Blocks To Malaysia’s Petronas Carigali
Rompetrol Building Black Sea Terminal For Caspian Crude Shipments
Caspian Services Begins Phase 1 Work On Bautino Marine Facility
EGYPT
Citadel Refinery Financing Progresses, Pathfinder Banks To Be Appointed
Egypt GDP Averages 7.1% In 2006-07, Highest In Years, Says IMF
Egypt Ratings Reflect Economic Growth And Reform Efforts, Say Moody’s And S&P
IRAN
Iran Needs $160Bn Investment In Oil And Gas Capacity Over Next Seven Years
Gasoline Quotas To Be Increased By 20%, Says Nozari
Iran-Oman JV Proposed For $2Bn Kish Gasfield Development
Iranian Inflation On the Rise
IRAQ
Explosion And Fire At Daura Refinery Storage Tank
KUWAIT
Dow Chemical And KPC To Form Global Petrochemicals Company
Kuwait’s Audit Bureau Reveals KOC Gas Pipeline Inspection Deficiencies
LIBYA
Verenex Announces Fifth Oil Discovery On Area 47 In Northwest Libya
OMAN
Vietnam Seeks JV With Oman For Refinery Project
Octal Petrochemicals Starts Exports To India And China
QATAR
QPI And ConocoPhillips Plan To Develop International Energy Projects
SAUDI ARABIA
Kayan Project Financing Oversubscribed, Despite Subprime Crisis
Sipchem Signs $302Mn Loan with SIDF For Acetyls Complex
SUDAN
SPLM Agrees To Rejoin National Unity Government As Talks Resume
SYRIA
IPR Carries Out SPC Reservoir Study
TURKEY
Calik Enerji, IOC Joint Venture Receives License For Ceyhan Refinery
New Petkim Owners Plan Major Investments
UAE
Work Resumes At Fujairah Refinery
YEMEN
Yemen Extends 4th International Oil Bidding Round Period To 5 January
Another Assassination In Lebanon
Palestinians And Israel: Back To Square One
NIE Complicates US Sanctions Campaign
Saudi Arabia Names Allegiance Commission
Shaping Long-Term Oil Price Expectations For Investment: Is It Workable?
Is It Achievable?
By Ali Aissaoui