Page 12 - MEOG Week 05 2022

MEOG NEWS IN BRIEF MEOG

accrued since the beginning of the Iranian Kuwait oil minister says go through multiple stages to ensure their
fiscal year on March 21, 2021, constitutes less safety before they are safely exited to the gas
around 30 percent of the budget projection oil demand continues to branches, in parallel with moving forward
for oil sales in this fiscal year. Iran’s original with short and medium-term plans to address
projection was to export around $15 billion in recover the damage caused by misuse. It indicated
this period. that it is filling about 60,000 gas cylinders per
Current estimates of oil sales vary widely, Kuwait’s oil minister Mohammad Al-Fares day, and inspecting, filling, transporting and
ranging from 650,000 to more than one said global demand for oil is continuing to distributing more than 17 million cylinders
million barrels a day, with China boosting recover amid positive conditions and upbeat annually.
its imports in the final months of last year. global financial indicators, state news agency KUNA
However, Iran sells it oil with a big discount, KUNA reported on Wednesday.
according to its own officials, but both the Dangers including rising inflation and new
true volume of exported oil and its price COVID-19 variants necessitate caution going SERVICES
remain a secret. forward, although Omicron effects “could be
The $3.3 billion reported by Fars for total minor as the vaccine rollout expands,” KUNA Honeywell, Oman’s
oil exports since August seems low, even if cited Al-Fares as saying.
we take the lower estimated exports by the OPEC+, a grouping of the Organization of Meras partner for energy
discounted price of $50 per barrel, Iran should the Petroleum Exporting Countries (OPEC)
have made close to $5 billion in five months. and allies, decided on Wednesday to stick to initiatives
Therefore, there are three possibilities: The its planned output increase of 400,000 barrels
figures mentioned by Fars are wrong; the per day from March after a short meeting. Honeywell has announced an agreement
estimate of 650 barrels per day is too high; REUTERS with Oman’s Meras, an energy, engineering,
or Iran is offering buyers much steeper construction and project management
discounts. services provider to support Honeywell’s
Fars claims that its report is based on GAS expansion to conduct sustainability and
information collected from official sources. energy projects across Oman.
The report also claims that borrowing KOTC affirms keenness on Part of the private equity firm Oman
from the central bank declined by 30 percent Investment Corporation, Meras will develop
since Raisi assumed office, but this assertion safety of gas cylinders a capability centre to support Honeywell
amounts to an accounting gimmick. as it implements energy and sustainability
The government sold about $5.4 billion The Kuwait Oil Tanker Company affirmed projects in the country including innovation,
of “Islamic Bonds”, which is another term for on Wednesday, its strong and permanent resources, design, contract, procurement
indirect borrowing from the central bank. A keenness on the safety of gas cylinders and its and more. Meras has a strong presence in
large enough private capital market to digest commitment to international security, safety Oman, with strategic ties with private and
billions of dollars in government bonds simply and quality standards in dealing with them government entities related to infrastructure
does not exist in a country which has had before they reach the hands of the consumer, healthcare, hospitality and education.
around $60 billion in capital flight since 2018. praising the efforts made by cooperative This collaboration will enable to strengthen
The bonds are simply sold to government- societies to ensure the preservation and the local capability around sustainability
owned banks, which have their own liquidity transportation of gas cylinders in a safe and and energy domain. It will also support the
problems and have to borrow from the central secure manner to consumers. requirements to implement energy efficiency
bank, which in turn prints money. In a press release, the company expressed actions, and carbon neutral objectives.
Officials and media have been warning its appreciation and thanks at the same time Honeywell has a long-standing history
about the huge increase in liquidity since to consumers, alerting “what the misuse in Oman, having worked on a wide range
2017 and this is the secret to government’s behaviors of some cause, especially in the of projects including airports, oil and gas
financing amid US sanctions. But as more commercial sector, for those cylinders.” projects and refining and petrochemicals
money gets printed, inflation skyrockets and It stressed that preserving cylinders technology implementation. Honeywell also
the national currency’s exchange rate drops. and their safety is a shared responsibility works with a number of leading healthcare,
One US dollar now buys eight times more that requires the concerted efforts of all education and hospitality customers within
rials than it did in 2017. stakeholders and consumers. Oman.
IRAN INTL The company explained that the cylinders TRADEARABIA

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