BP said it will invest more in the Middle Eastern oil and natural-gas fields even as it transitions to renewable energy and tries to lower emissions.
The company is a major producer in countries such as Iraq, where it operates the world’s third-largest oil field of Rumaila, as well as in the UAE and Oman. It is focusing on their low-cost oil, while also boosting output of gas, according to Stephen Willis, BP’s senior vice president for the Middle East.
“We will continue to invest in these,” Mr Willis said in a video interview from Oman, without specifying how much BP planned to spend. Deposits in Iraq, the UAE emirate of Abu Dhabi and Oman have “world-leading operating cost, capital cost and production efficiency performance”.
European oil majors are seeking greener sources of energy to combat climate change. BP, which is selling assets and cutting its dividend in response to oil’s coronavirus-triggered crash this year, is targeting a 40 per cent decline in hydrocarbon production by 2030 and won’t explore for crude in any new countries.
In the Middle East, several countries are beginning to exploit renewable energy resources and focus more on gas, the production and burning of which emits less carbon than oil or coal.
Iraq, the second-largest oil producer in the Organisation of Petroleum Exporting Countries, continues to flare large quantities of gas. BP is trying to help the Gulf country instead use it to generate power. Iraq’s oil minister has also asked BP to develop renewable energy.
Oil production at Rumaila in southern Iraq is slightly below 1.4 million barrels a day, Mr Willis said. Output was cut to enable Iraq to comply with Opec quotas agreed in April and for maintenance, he said. BP is working to ensure that the field, which pumped 1.47 million barrels daily in June, can raise production once the Opec restrictions are eased.
Rumaila’s capacity would decline to 1 million to 1.2 million barrels a day without workers adding wells, maintaining pressure and separating out water, Mr Willis said. BP and the Iraqi government don’t have a timeline for reaching the planned peak-production level of 2.1 million barrels a day, though the field’s capacity will probably be increased to 1.7 million barrels in the next several years, he said.
BP’s push in Iraq is happening as rival Exxon Mobil seeks to sell its stake in the country’s West Qurna 1 field, which could fetch at least $500 million, Bloomberg reported last week. Many Western firms have been put off by Iraq’s political instability.
BP can raise capacity more quickly in Oman, Mr Willis said. The company will, depending on market demand, reach full capacity of 1.5 billion cubic feet per day by early next year from the gas fields of Khazzan and Ghazeer in Block 61, he said. It could add another 400 million cubic feet per day of output with further investment, he said.
In Abu Dhabi, BP is working with Adnoc to boost the capacity of onshore oil fields beyond 2 million barrels daily. BP holds a 10 per cent stake in those fields.
It also aims to extract gas from the emirate’s Bad field, which mostly holds oil, this decade, Mr Willis said.
BP’s third-largest region for production and reserves is Asia, which includes the Middle Eastern fields. Asia comes behind North America and Europe, which is the company’s most significant region in output terms due to a 20 per cent stake in Russia’s Rosneft.
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Pots for the Asian Qualifiers
Pot 1: Iran, Japan, South Korea, Australia, Qatar, United Arab Emirates, Saudi Arabia, China
Pot 2: Iraq, Uzbekistan, Syria, Oman, Lebanon, Kyrgyz Republic, Vietnam, Jordan
Pot 3: Palestine, India, Bahrain, Thailand, Tajikistan, North Korea, Chinese Taipei, Philippines
Pot 4: Turkmenistan, Myanmar, Hong Kong, Yemen, Afghanistan, Maldives, Kuwait, Malaysia
Pot 5: Indonesia, Singapore, Nepal, Cambodia, Bangladesh, Mongolia, Guam, Macau/Sri Lanka
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
What drives subscription retailing?
Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.
The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.
The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.
The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.
UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.
That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.
Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
