OPEC, non-OPEC panel to discuss sharing oil-output boost

A panel called the Joint Technical Committee will on Tuesday consider proposals on distributing the agreed output increase of 1 million barrels per day. (Reuters)
Updated 07 September 2018
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OPEC, non-OPEC panel to discuss sharing oil-output boost

  • OPEC, Russia and other non-members agreed in June to return to 100 percent compliance with oil output cuts that began in January 2017

DUBAI/LONDON: An OPEC and non-OPEC technical committee will next week discuss proposals for sharing out an oil-output increase, sources familiar with the matter said, a tense topic for the producer group after it decided in June to ease supply curbs.
A panel called the Joint Technical Committee will on Tuesday consider proposals on distributing the agreed output increase of 1 million barrels per day, the sources said.
“The talks will look at various mechanisms” to reach the required production level, a source said.
If resolved, the talks could lead to an easing of tensions within the Organization of the Petroleum Exporting Countries. Iran had been against the June decision, which came amid pressure from US President Donald Trump to reduce oil prices.
There are four proposals on how to distribute the increase, presented by Iran, Algeria, Russia and Venezuela, one of the sources said, suggesting agreement will not be straightforward.
One idea, to share it pro-rata among participating countries, is unlikely to be approved by Russia and Saudi Arabia since it would give them less than the supply boosts of 300,000 and 400,000 bpd that they respectively want, the source said.
OPEC, Russia and other non-members agreed in June to return to 100 percent compliance with oil output cuts that began in January 2017. Months of underproduction in Venezuela and elsewhere had pushed adherence above 160 percent.
The June meeting concluded with a deep disagreement between Saudi Arabia and Iran, longtime rivals in OPEC.
Saudi Arabia said the decision implied a reallocation of extra production from countries unable to produce more to those, such as Riyadh, that can. Iran, facing a forced cut in its oil exports because of US sanctions, disagreed.
The proposals will next be presented to ministers attending a monitoring meeting in Algeria on Sept. 23, sources said.


Abu Dhabi Commercial Bank picks Barclays to advise on merger

Updated 15 November 2018
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Abu Dhabi Commercial Bank picks Barclays to advise on merger

  • Potential merger involves ADCB, Union National Bank (UNB) and Al Hilal Bank
  • A merger of the trio could create an entity with around $113 billion in assets

ABU DHABI: Barclays has been appointed by Abu Dhabi Commercial Bank (ADCB) to advise on a potential merger plan involving Union National Bank (UNB) and Al Hilal Bank, banking sources told Reuters.
The merger, announced by the banks in September, is the latest consolidation among state-owned companies in the United Arab Emirates’ (UAE) capital.
ADCB, majority owned by the Abu Dhabi government and the second largest bank in the emirate after First Abu Dhabi Bank (FAB), declined to comment. Barclays also declined to comment.
If it goes ahead, a merger of the trio could create an entity with around $113 billion in assets, according to Refinitiv data, and the UAE’s third-biggest lender after FAB and Emirates NBD.
A separate source said two banks could be created out of the consolidation, with the conventional banking units of ADCB and UNB merging to create one lender.
Another could be formed through combining the Islamic banking units of ADCB and UNB, along with Al Hilal.
AlKhaleej newspaper reported the same arrangement was being considered last month, citing sources.
The tie-up was at an early stage, UAE Central Bank governor Mubarak Rashed Al-Mansoori told reporters last week on the sidelines of a conference, adding he expected more consolidation in the future.
FAB was created by last year’s merger between National Bank of Abu Dhabi and First Gulf Bank.
The emirate of Sharjah is weighing a merger between three of its banks — Bank of Sharjah, Invest Bank and United Arab Bank, Reuters reported in September, citing sources.