Barclays: Oil and gas companies to spend 6% more in 2014

Barclays: Oil and gas companies to spend 6% more in 2014
Updated 28 December 2013

Barclays: Oil and gas companies to spend 6% more in 2014

Barclays: Oil and gas companies to spend 6% more in 2014

Oil and gas companies will spend about $723 billion on exploration and production (E&P) in 2014, an increase of 6.1 percent from 2013, Barclays Bank said in a report.
Major oil companies are slowing spending growth as they put more emphasis on increasing returns to investors amid a wave of shareholders activism in the industry, Barclays said.
Activist investors have pushed for shake-ups at a number of mid-sized energy companies this year including Chesapeake Energy Corp, Hess Corp. and Transocean Ltd.
The Big Oil companies — Exxon Mobil Corp, Chevron Corp, Royal Dutch Shell and Total SA and BP — though not targeted by activist investors are also under pressure to boost returns.
BP has raised its dividend, cut back capital spending plans, and ramped up its asset sales target to $10 billion over the next two years from between $4 billion and $6 billion.
Barclays forecast an increase of more than 7 percent in E&P spending in North America in 2014, compared with a 2 percent increase in 2013, based on a survey of more than 300 oil and gas companies conducted last month.
Spending is set to increase in North America after two years of tepid growth, when weak prices in the US made drilling for natural gas uneconomical in many onshore fields.
E&P spending outside North America is likely to increase 6 percent to a record $524 billion in 2014, a smaller increase than the 10 percent rise this year, the bank said.
Limited growth by the oil majors and corruption probes directed at Chinese companies are weighing on growth expectations for international spending, but this will be partly offset by growth in the Middle East, Latin America and Russia, Barclays said.
The bank said while its initial expectation for 2014 suggested a modest slowdown in global spending growth, the mix of spending was moving away from large infrastructure projects to drilling, evaluation and completion activity.
The shift implied a revenue opportunity for diversified oil service companies such as Schlumberger Ltd, Halliburton Co. and Baker Hughes Inc, the report said.
E&P companies are basing their spending budgets for the year on oil prices of $98 per barrel for Brent and $89 per barrel for West Texas Intermediate, and a benchmark US natural gas price of $3.66 per British thermal unit, the bank said in its Global 2013 E&P Spending Update.


Lebanon must fix debts, end prosecutor action or face power cut, says Turkish firm

Lebanon must fix debts, end prosecutor action or face power cut, says Turkish firm
Updated 11 May 2021

Lebanon must fix debts, end prosecutor action or face power cut, says Turkish firm

Lebanon must fix debts, end prosecutor action or face power cut, says Turkish firm
  • Turkey’s Karadeniz supplies electricity to Lebanon from power barges

ISTANBUL: Turkey’s Karadeniz, which supplies electricity to Lebanon from power barges, told Beirut to halt action by the Lebanese prosecutor to seize its vessels and said it must draw up a plan to settle arrears to avoid a cut in supplies, a spokesperson said.
The spokesperson for Karpowership, a unit of Karadeniz that operates floating power plants, was speaking on Tuesday after Lebanon’s Finance Ministry cited a lawmaker saying the country had been threatened with a cut to its supplies.
A Lebanese prosecutor issued a decision last week to seize the barges and fine the firm after TV channel Al-Jadeed reported corruption allegations tied to the power contract. The firm denies the charges and says it has not been paid for 18 months.


Suez Canal boss reveals expansion plans as revenues jump on trade rebound

Suez Canal boss reveals expansion plans as revenues jump on trade rebound
Updated 11 May 2021

Suez Canal boss reveals expansion plans as revenues jump on trade rebound

Suez Canal boss reveals expansion plans as revenues jump on trade rebound
  • Revenues rose almost 16 percent in April to $551million

RIYADH: Suez Canal revenues rose almost 16 percent in April to $551 million compared to a year earlier, Asharq Business reported, citing Suez Canal Authority Chairman Osama Rabie.
Rabie also discussed plans to expand and deepen the southern sector of the canal in which the container ship Ever Given was stuck in March, creating chaos across the global supply chain.
That incident which brought a large proportion of seaborne trade to a near halt for a week, highlighted the need to ensure the  smooth operation of the key trade artery.
Rabie also revealed plans for dredging works for the maintenance of the navigational channel of the canal.
A plan is being implemented to restructure the authority’s companies, he said.
This year witnessed a slight increase in the number of ships passing through the waterway to 1,840 in April 2021 from 1,731 in April 2020, Al Arabiya reported.


Egypt jobless rate rises amid pandemic second wave

Egypt jobless rate rises amid pandemic second wave
Updated 11 May 2021

Egypt jobless rate rises amid pandemic second wave

Egypt jobless rate rises amid pandemic second wave
  • The size of the workforce was estimated at 29,284 million, compared to 29,965 million during the previous quarter

RIYADH: Egypt’s unemployment rate reached 7.4 percent of the total labor force in the first quarter of 2021 — up from 7.2 percent in the previous quarter.
The new data from the Central Agency for Public Mobilization and Statistics (CAPMAS), reflects the impact of the second wave of the pandemic.
The size of the workforce was estimated at 29,284 million, compared to 29,965 million during the previous quarter, representing a decrease of 2.3 percent, Al Arabiya reported.
The labor force in urban areas reached 13,034 million, with 16,250 million living in rural areas.
Gehan Saleh, economic affairs adviser to Egypt’s prime minister said in April that the second stage of the country’s economic reform program would be launched soon.
She said the plan aims to improve the quality of life of citizens and tackle unemployment through job-creating investments.


Smugglers post gold from Dubai to India hidden in Tang

Smugglers post gold from Dubai to India hidden in Tang
Updated 11 May 2021

Smugglers post gold from Dubai to India hidden in Tang

Smugglers post gold from Dubai to India hidden in Tang
  • It is the latest ruse by smugglers trying to avoid hefty import duties for the precious metal by employing increasingly intriguing methods

DUBAI: Indian customs have foiled an attempt to post gold from Dubai disguised in containers of the popular Tang drink.

After sieving the contents of the drink mix, Chennai customs officials discovered it had been mixed with gold granules, according to a statement from the Commissioner of Customs at Chennai International Airport.
Officials probing the racket found that the address of the receiver had been misused.
It is the latest ruse by smugglers trying to avoid hefty import duties for the precious metal by employing increasingly intriguing methods.
Earlier this year officials at Chennai airport also nabbed two men trying to smuggle gold through the airport underneath their wigs.
The hapless pair were nabbed after their unusual hairstyles caught the attention of officials.

They were found to be carrying two gold paste packets weighing almost 700 g


UK-based tower operator to acquire Omantel sites in $575m deal

UK-based tower operator to acquire Omantel sites in $575m deal
Updated 11 May 2021

UK-based tower operator to acquire Omantel sites in $575m deal

UK-based tower operator to acquire Omantel sites in $575m deal
  • The move signals Helios Towers’ entry to the Middle East market as a major tower infrastructure provider

DUBAI: British telecommunications company Helios Towers has signed a deal with Omantel to acquire 2,890 sites for $575 million from the sultanate’s largest mobile network operator.
The move signals Helios Towers’ entry to the Middle East market as a major tower infrastructure provider.
The deal is expected to bring in a $59 million bump in revenues in the first full year of operations.
It also involves a $35 million plan to add 300 new build-to-suit sites over the next seven years.
“We view Oman as a very attractive and supportive market for foreign investments, with strong growth and exciting future prospects,” the UK-based company’s chief Kash Pandya said in a statement.
He said the acquisition strengthens its business through “further hard-currency revenues and diversification” in what the CEO described as the fastest growing markets in the region.
“We look forward to working with Omantel and the other MNOs over the coming years to further develop next generation mobile infrastructure solutions and services in Oman,” he added.
The partnership reflects Oman’s FDI aspirations, Omantel CEO Tala Said Al-Mamari said, adding it will create jobs and opportunities in the country.
“This move also allows the monetization of our towers at attractive valuation levels, de-lever our balance sheet, and will accelerate network development in next generation advanced technologies,” he noted.
He said it would allow Omantel’s management to focus on innovation and product development while outsourcing infrastructure management to an independent firm.
The transaction will close by the end of 2021, and the long-term partnership will last for an initial period of 15 years.