Total not picked for Bab gas field contract

Updated 05 April 2013
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Total not picked for Bab gas field contract

PARIS: Abu Dhabi did not choose Total to develop the $ 10 billion Bab Sour gas field project in the UAE where it was competing with Royal Dutch Shell, the French group’s chief executive said.
“I read in the press that Shell is said to have been selected for the development of this acid gas project,” Christophe de Margerie said on the sidelines of an oil conference.
“If I understand well, they have offered a price that was significantly below ours. Good for them, but these prices didn’t work for us. So we didn’t get it, but it’s not a problem because at this price we couldn’t do it,” De Margerie said.
Industry sources said recently that Abu Dhabi National Oil Co. (ADNOC) had recommended to authorities in Abu Dhabi that Anglo-Dutch Royal Dutch Shell win the project.
Total’s sidelining for the Bab project comes despite a French charm offensive which saw French President Francois Hollande fly into the UAE in January to help Total’s bid.
It could also give the Anglo-Dutch energy giant a competitive edge in talks for the 2014 renewal of the UAE’s largest onshore oil concession on which the Bab field stands.
De Margerie played down the link between the two projects, however. “They have nothing to do with each other, these are two separate issues.”
The winning bidder for the Bab project will be expected to form a joint venture with ADNOC as the majority shareholder, an ADNOC source said.ers. Republication or redistribution of content provided by Thomson Reuters is expressly prohibited without the prior written consent of Thomson Reuters, except where permitted by the terms of the relevant Thomson Reuters service agreement. Neither Thomson Reuters nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world.


Egypt stock market plunges as retail investors take flight

Updated 19 September 2018
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Egypt stock market plunges as retail investors take flight

  • Biggest index drop in Egypt since mid-2016
  • Saudi Arabia outperforms in Gulf

LONDON: Egyptian stocks tumbled to their lowest level this year on Wednesday as retail investors took flight.
A sharp rise in Suez Canal revenues, a major foreign exchange earner for the country, was not enough to quell investors concerns about the strength of the currency.
The main Egyptian stock index lost 3.8 percent which some fund managers blamed on generally negative sentiment toward emerging markets worldwide as well as more local speculation about possible currency devaluation.
“Our channel checks suggest the sell-off in the Egyptian market is local retail and institutions driven, on currency fears and speculation over a further round of devaluation,” said Vrajesh Bhandari, portfolio manager at Al Mal in Dubai, Reuters reported.
“Selling is further intensified as margin calls are triggered and technical support levels break down. The country canceled three consecutive Treasury auctions, citing investors’ unrealistic yield demands.”
Egypt’s Suez Canal revenues rose to $502.2 million in August up 6.7 percent from a year earlier according to official data released on Wednesday.
Elsewhere regional stock markets closed mostly lower with the exceptions of Abu Dhabi which edged 0.2 percent higher and Saudi Arabia, the best regional performer, which rose by 1.1 percent.
Saudi stocks are benefiting from the strong oil price which eased slightly yesterday but still hovered just under $79.
OPEC and some other oil producers including Russia will meet in Algeria on Sept. 23 to discuss how to allocate supply increases within their quota framework to offset the loss of oil exports from Iran following the introduction of sanctions by the US.
Those measures will come into force on Nov. 4 and data suggests that buyers are already retreating from Iranian crude purchases.
A key question for the oil price as well as regional stock markets in the weeks ahead will be the extent to which other Gulf oil exporters can compenaste for the loss of Iranian supplies by pumping more.