Page 12 - MEOG Week 48 2022

MEOG NEWS IN BRIEF MEOG

approaches to the area complementing Aramco, which has raised billions from a day ahead of the bloc’s much anticipated
analyses of current challenges with new ideas deals linked to its pipeline infrastructure, is meeting, with its allies to review output policy
and suggestions and to draft a new ‘positive also planning an IPO of its energy-trading in the face of EU sanctions on Russian crude
agenda’, addressing shared challenges at both business. and the G7’s price cap.
the regional and the international level. The kingdom’s privatisation programme ‘Member states of the organization are
KUNA is a cornerstone of its Vision 2030 economic committed to production rates and to the
agenda to wean the economy off oil, build new percentages and quantities of cuts scheduled
industries and create jobs. until the end of 2023,’ the minister said in
COMPANIES REUTERS a statement after OPEC’s 13 members met
virtually on mostly administrative matters.
Luberef expects to raise up OIL 10 partners led by Russia, will convene online
The full OPEC+ alliance, which includes
to $1.32bln from IPO Dec. 4 at 1 pm Vienna time (1200 GMT).
Delegates had signaled that a rollover
Saudi oil giant Aramco’s base oil subsidiary Iran, Iraq form joint oil of the quotas is the likeliest outcome, given
Luberef expects to raise up to 4.95 billion working group the uncertainty over the impact of the EU
riyals ($1.32 billion) from its initial public embargo on seaborne Russian crude imports
offering, it said, if it prices at the top of a range The oil ministries of the Islamic Republic of that goes into force Dec. 5. The G7’s price
announced on Sunday. Iran and Iraq announced their agreement to cap, which would deny western insurance
Luberef will sell nearly 30% of the establish a joint oil working group. to tankers delivering Russian oil sold above
company’s issued share capital, or 50.045 Following several meetings between the $60/b, is also scheduled to be implemented in
million shares, at between 91 and 99 riyals representative of the oil minister of the Islamic the coming days.
each, the company said in a statement. Republic of Iran and Iraqi oil officials, the But some delegates have also said a slight
State-led IPO programmes in Saudi Arabia, two sides agreed to establish a joint working output cut could be possible.
Abu Dhabi and Dubai have helped equity group, Shana reported. On the other hand, one told S&P Global
capital markets in the oil-rich Gulf, in sharp The working group, which was established Commodity Insights that a production
contrast to the United States and Europe, as a parent working group with the approach increase might be considered to offset the
where global banks have been trimming of increasing discussion and exchange of Russian sanctions, though other delegates
headcount in a dealmaking drought. views about joint cases in the field of energy denied the possibility.
Gulf issuers have raised about $16 billion in two neighbouring countries, benefits from The current OPEC+ quotas were set
through such listings this year, accounting for the help of several specialized working groups, at the alliance’s last meeting Oct. 5, which
about half of total IPO proceeds from Europe, including in the field of joint fields, education, called for a 2 million b/d cut from September
the Middle East and Africa, Refinitiv data etc. levels through the end of 2023, to head off
shows. So far, numerous meetings have been an anticipated fall in demand due to China’s
A minimum of 75% of the Luberef shares held between the Iranian and Iraqi members aggressive coronavirus lockdown policies and
being sold will be offered to institutional of this working group, and some common signs of potential recessions in key economies.
investors, with bookbuilding getting issues, including the joint oil fields of the two US officials, who had reacted angrily to the
underway on Sunday and running until countries, have been discussed and exchanged October decision, are not expected to object
Friday. in these meetings. to a rollover of quotas, sources said. Platts, a
The final share price will be announced MEHR part of S&P Global Insights, assessed Dated
next Sunday, with subscriptions for individual Brent at $86.95/b on Dec. 2, down from a
investors running from Dec. 14 to Dec. 18. A Iraq oil minister says OPEC three-month peak of $101.72/b on Nov. 7.
date has not yet been set for shares to begin ‘OPEC+ is not scheduled to meet again
trading on Riyadh’s Tadawul exchange. committed to production until June, but could reconvene as soon
Aramco owns 70% of Luberef and Saudi as January to assess the impact of Russia
investment bank Jadwa Investment the quotas sanctions and other market uncertainties,’ said
remaining 30%. Paul Sheldon, chief geopolitical adviser for
Saudi Aramco’s record listing in late 2019, OPEC will maintain its production quotas, S&P Global Commodity Insights.
later boosted to total $29.4 billion in proceeds, as planned, through the end of 2023, Iraq oil As for key Russian crude Urals FOB
was the world’s largest IPO. minister Hayan Abdul-Ghani said Dec. 3, Primorsk, Platts assessed the grade at $53.47/b

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