ADNOC launches second bid round for oil, gas blocks

The supercomplex at Umm Shaif field, 150km offshore from Abu Dhabi. (Supplied)
Updated 01 May 2019
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ADNOC launches second bid round for oil, gas blocks

  • The bidding will be for both conventional and unconventional resources, and the successful bidders will enter into agreements granting them exploration rights
  • In conjunction, ADNOC Distribution, the fuel distribution arm of ADNOC, posted a 6.6 percent rise in first-quarter net profit on Wednesday

ABU DHABI: Abu Dhabi National Oil Company (ADNOC) said on Wednesday that it has launched the second exploration bid round for five new oil and gas blocks.
The bidding will be for both conventional and unconventional resources, and the successful bidders will enter into agreements granting them exploration rights, ADNOC said in a statement.
The new blocks are three offshore and two onshore.
Meanwhile, ADNOC Distribution, the fuel distribution arm of ADNOC, posted a 6.6 percent rise in first-quarter net profit on Wednesday.
Profit was 578 million dirhams ($157.37 million) in the three months to March 31, compared with 542 million dirhams a year earlier.
Analysts at Dubai-based Arqaam Capital had expected a profit of 543 million dirhams, while Egypt’s EFG-Hermes had forecast that the company would post a profit of 558 million dirhams.
ADNOC Distribution said net cash generated from operating activities decreased in the quarter as a result of working capital movements due to fluctuating oil prices.
The company said it expected low single-digit growth in fuel volumes beginning in the second half of this year, as a result of an expansion of its network in Dubai.
HSBC on April 8 raised its recommendation to “buy” from “hold,” and target price to 3.2 dirhams from 2.6 dirhams.
In 2017, ADNOC listed 10 percent of ADNOC Distribution, the largest operator of petrol stations and convenience stores in the UAE, on the Abu Dhabi Securities Exchange.
The company is seeking a secondary listing for its distribution unit overseas, three sources told Reuters in April.
Reuters reported last June that ADNOC was considering selling another 10 percent stake in ADNOC Distribution.
One of the sources said ADNOC was considering listing ADNOC Distribution on New York’s Nasdaq exchange, while a second source added that a London listing had also been discussed.
Another source said Abu Dhabi was also one of the options being discussed.


Urgency needed to boost Palestinian economy: IMF chief

Updated 26 June 2019
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Urgency needed to boost Palestinian economy: IMF chief

  • The MF has been warning of severe deterioration in the Palestinian economy
  • ‘If there is an economic plan, if there is urgency, it’s a question of making sure that the momentum is sustained’

MANAMA: IMF chief Christine Lagarde said Wednesday that major economic growth was possible in the Palestinian territories if all sides showed urgency, as she took part in a US-led conference boycotted by the Palestinian leadership.
The International Monetary Fund has been warning of severe deterioration in the Palestinian economy, with tax revenue blocked in a dispute with Israel which has also imposed a crippling blockade on the Gaza Strip for more than a decade.
“If there is an economic plan, if there is urgency, it’s a question of making sure that the momentum is sustained,” said Lagarde.
The IMF chief is attending a conference in Bahrain to discuss the economic aspects of a United States plan for Israeli-Palestinian peace, which has already been rejected by the Palestinians as it fails to address key political issues.
Lagarde said for the US plan to work “it will require all the goodwill in the world on the part of all parties — private sector, public sector, international organizations and the parties on the ground and their neighbors.”
Citing examples of post-conflict countries, Lagarde said that private investors needed progress in several sectors including strengthening the central bank, better managing public finance and mobilizing domestic revenue.
“If anti-corruption is really one of the imperatives of the authorities — as it was in Rwanda, for instance — then things can really take off,” she said.
The plan presented by White House adviser Jared Kushner calls for $50 billion of investment in the Palestinian territories and its neighbors within a decade.
The proposals for infrastructure, tourism, education and more aim to create one million Palestinian jobs.
Gross domestic product in the Gaza Strip declined by eight percent last year, while there was only minor growth in the West Bank.
Kushner, opening the conference on Tuesday, called the plan the “Opportunity of the Century” — and said the Palestinians needed to accept it before a deal can be reached on political solutions.
The Palestinian Authority has rejected the conference, saying that the US and Israel are trying to dangle money to impose their ideas on a political settlement.
Washington says it will unveil the political aspects of its peace deal at a later date, most likely after Israel’s September election.