Capital expenditure in the Middle East's hydrocarbon sector is set for another consecutive year of growth, registering a year-on-year rise in 2018 with planned spending largely directed towards boosting upstream operations.
This is taking place as national oil companies (NOCs) position themselves to meet a large supply deficit forming in the global oil market post-2019.
However the pace of capital expenditure expansion growth for the region, which has bucked a downturn in global investments in the oil and gas sector amid weak oil prices, will be slower than in previous years, according to BMI forecasts.
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Investments in the region have held up, recording an 8.2 per cent year-on-year advance in 2016. This sharply contrasts with a 25 per cent decline in global spending the same year.
Crude oil prices, which fell below $30 per barrel in the first quarter of 2016, have subsequently recovered to around double that level, with the recovery set to prompt an uptick in capital spending elsewhere.
Global capex is expected to grow in 2017 and 2018, by 4.5 per cent and 4.3 per cent respectively. Capex in the Middle East region, by contrast, will increase by just 2 per cent in 2017 and 1.6 per cent the following year, according to BMI.
"The main focus – in particular over 2017 and 2018 – will remain the upstream, as the Middle Eastern NOCs look to position themselves to profit from a looming deficit in the global marketplace from 2020," BMI said.
The region, which has maintained production during the oil price downturn, will experience a year-on-year drop in output this year, largely due to the Opec and non-Opec production cut deal.
Opec producers, as well as other major exporters led by Russia, agreed in November to extend a cut of 1.8 million barrels per day to March, hoping to help stabilise the market.
BMI forecasts production to recover next year, rising by 2.1 per cent, following the expiry of the deal.
"Production targets in the region are ambitious," BMI said, adding that Saudi Arabia is investing to maintain its production capacity at around 12.5 million barrels per day, with several expansion projects in the pipeline.
The UAE meanwhile is aiming to raise its output to 3.5 million barrels a day by 2018 through a number of field expansions, and to subsequently hold production steady at this level. BMI said that the cheaper cost for producing and exporting has set the region up in a better position than elsewhere.
"This has allowed companies to front-load their spending plans to take advantage of depressed oilfield services costs," the report said.
While oil will attract the bulk of capex in the region, a part of the capex is being directed downstream, as the major NOCs pursue increasing vertical integration of their global supply chains.
Gas will also continue to take a share, according to BMI, which added that natural gas production, has become a strategic priority. It "will continue to rise over the coming years, albeit at a somewhat reduced rate".
Specs
Engine: Duel electric motors
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The specs
Engine: Four electric motors, one at each wheel
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Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
Killing of Qassem Suleimani
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
UAE currency: the story behind the money in your pockets
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
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What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
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- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
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Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
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The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
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