Gazprom Neft, Iran’s NIOC agree oil field studies

Alexei Miller, Russian natural gas giant Gazprom CEO, addresses a recent news conference in Moscow recently. (AP)
Updated 13 December 2016
0

Gazprom Neft, Iran’s NIOC agree oil field studies

TEHRAN/MOSCOW: Russian oil producer Gazprom Neft and National Iranian Oil Company (NIOC) have agreed to conduct a study into the possible development of two oil fields in Iran, Russia’s Energy Ministry Alexander Novak said.
Iran, OPEC’s third largest oil producer, plans to launch next year a new-style contract for helping develop its oil and gas fields with invitations to tender to be the first since the lifting of sanctions.
Novak said Gazprom Neft, the oil producing unit of Gazprom, has signed a memorandum of understanding with NIOC and Gazprom Neft will now conduct a study for the Changouleh and Cheshmeh-Khosh oil fields in Western Iran. A deal on producing oil at the two fields could follow, the minister said.
He also said on Tuesday that Gazprom and Russia’s largest oil producer Rosneft have signed a separate memorandum with NIOC.
Gazprom Deputy CEO Alexander Medvedev said in Tehran that his company has been interested in joint liquefied natural gas (LNG) projects.
Russia, which has already signed several memorandums of understanding with Iran, has the largest share of Iran’s oil field development studies compared with other countries involved in oil exploration there, Iran’s Oil Minister Bijan Namdar Zanganeh was quoted as saying by ISNA news agency.
Zanganeh also said Iran would finalize another deal in the next two days to sell Russia 100,000 barrels of crude oil per day.
Commenting on the recent OPEC deal to cut oil output, Zangeneh said: “The talks between the two countries’ leaders were essential and very significant in this matter.”
He said that oil prices were likely to settle at $50-$55 per barrel.
“No other country may have influence on Russia’s and Iran’s intention to develop ties,” Iranian Communications Minister Mahmoud Vaezi said at the talks with Russia’s Novak.


Dubai real estate market recovery to be seen as of 2022: S&P

Updated 20 February 2019
0

Dubai real estate market recovery to be seen as of 2022: S&P

  • The outlook on property was part of a challenging assessment of the credit-worthiness of the emirate
  • S&P was generally comfortable with the credit ratings of the emirate’s banking system

DUBAI: S&P Global, the ratings agency, painted a grim picture for the real estate sector in Dubai, with a meaningful recovery in property prices expected only after 2022.
At a presentation to journalists in the Dubai International Financial Center, S&P analyst Sapna Jagtiani said that under the firm’s “base case scenario,” the Dubai real estate market would fall by between 5 and 10 percent this year, roughly the same as the fall in 2018, which would bring property prices to the levels seen at the bottom of the last cycle in 2010, in the aftermath of the global financial crisis.
“On the real estate side we continue to have a very grim view of the market. While we expect prices to broadly stabilize in 2020, we don’t see a meaningful recovery in 2021. Relative to the previous recovery cycle, we believe it will take longer time for prices to display a meaningful recovery,” she said.
S&P’s verdict adds to several recent pessimistic assessments of the Dubai real estate market. Jagtiani said that conditions in the other big UAE property market, in Abu Dhabi, were not as negative, because “Abu Dhabi never did ramp up as much in 2014 and 2015 as Dubai.” S&P does not rate developers in the capital.
She added that a “stress scenario” could arise if government and royal family related developers — such as Emaar Properties, Meraas, Dubai Properties and Nakheel — which have attractive land banks and economies of scale, continue to launch new developments.
“In such a scenario, we think residential real estate prices could decline by 10-15 percent in 2019 and a further 5-10 percent in 2020. In this case, we expect no upside for Dubai residential real estate prices in 2021, as we expect it will take a while for the market to absorb oversupply,” she said.
S&P recently downgraded Damac, one of the biggest Dubai-based developers, to BB- rating, on weak market prospects.
However, Jagtiani said that, despite the “significant oversupply” from existing projects, several factors should held stabilize the market: Few, if any, major product launches; improved affordability and “bargain hunting” by bulk buyers; and a resurgence of Asian, especially Chinese, investor interest in the market.
Jagtiani also said that government measures such as new ownership and visa regulations and reduction in government fees could help prevent prices falling more sharply, as well as “increased economic activity related to Dubai Expo 2020, which is expected to attract about 25 million visitors to the emirate.”
The outlook on property was part of a challenging assessment of the credit-worthiness of the emirate. “In our view, credit conditions deteriorated in Dubai in 2018, reducing the government’s ability to provide extraordinary financial support to its government related entities (GREs) if needed,” S&P said in a report. “The negative outlook on Dubai Electricity and Water
Authority (DEWA) partly reflects our concern that a real estate downturn beyond our base case could out increased pressure on government finances,” the report said.
It pointed out that about 70 percent of government revenues come from non-tax sources, including land transfer and mortgage registration fees, as well as charges for housing and municipality liabilities, as well as dividends from real estate developers it controls, like Emaar and Nakheel.
S&P was generally comfortable with the credit ratings of the emirate’s banking system, which has an estimated 20 percent exposure to real estate. “Banks in the UAE tend to generally display a good level of profitability and capitalization, giving them a good margin to absorb a moderate increase in risks,” the report said.