Tuesday, December 10, 2019

Qatar Investment Authority News

Qatar Invests in US Midstream Crude firm

Pic: Oryx Midstream Services

Qatar's sovereign wealth fund Qatar Investment Authority (QIA) has purchased a significant stake in US-based Oryx Midstream Services, the largest privately held crude midstream provider in the Permian Basin.The stake was acquired from an affiliate of Stonepeak Infrastructure Partners. Oryx serves clients in the Permian Basin.Additionally, QIA has pledged to invest in the development of Oryx alongside Stonepeak. The total investment by QIA will be $550m.Since its founding in 2013, Oryx has established itself as one of the leading midstream operators in the Permian Basin in the Southwest US.

CEFC Paid Out Compensation After Rosneft Stake Deal Fell Through

CEFC paid almost 225 million euros ($257 million) in compensation to a consortium of Qatar Investment Authority and Glencore after the Chinese firm's deal to buy a stake in Russian oil firm Rosneft fell through, a document showed.The chief executive of Rosneft, Igor Sechin, said in September 2017 that CEFC had signed a deal to buy 14.2 percent of Rosneft from Qatar and Glencore.The deal was not completed and the circumstances under which it fell through remain unclear.Sources close to the…

CEFC Eyes Big League with Rosneft Oil Offtake Deal

As part of its recent $9.1 billion investment in Russian oil giant Rosneft, little-known CEFC China Energy will have access to up to 260,000 barrels per day (bpd) of Russian oil - giving it the sort of market clout to potentially challenge dominant Western oil traders like Vitol. For China, the world's top crude importer, having access to Russian oil would be a big step towards its ambition to create a globally integrated oil supply chain. The CEFC deal comes in parallel to a Chinese offer to buy a 5 percent stake in Saudi Aramco, the world's biggest crude oil exporter.

CEFC Buys Rosneft Stake as Glencore, Qatar Pull Back

Chinese conglomerate CEFC will buy a 14.16 percent stake in Russian oil producer Rosneft from a consortium of Glencore and the Qatar Investment Authority in a move that further strengthens the energy partnership between Moscow and Beijing. CEFC China Energy has grown in recent years from a niche oil trader into a sprawling energy conglomerate and the transaction will allow China, the world's second largest energy consumer, to boost cooperation with the world's top oil producer. The deal comes…

Intesa Sanpaolo Moves to Syndicate Rosneft Deal Loan

Intesa Sanpaolo has formally launched a process to syndicate the loan it provided to fund the purchase of a 19.5 percent stake in Russian energy giant Rosneft by Glencore and a Qatari sovereign wealth fund, according to a banking source familiar with the matter. Intesa provided a 5.2 billion euro ($5.83 billion) loan to Glencore and the Qatar Investment Authority late last year, but is now trying to spread its risk. The head of Intesa's Russian business, Antonio Fallico, said in February that it was speaking with 14 banks about syndicating the loan…

Putin Awards Medals to Buyers of Rosneft Stake

Russian President Vladimir Putin awarded state medals to executives with the Qatari investment fund, Swiss-based commodities trading firm Glencore and Italian bank Intesa Sanpaolo, according to a decree published on Monday. The Qatar Investment Authority and Glencore bought a 19.5 stake in Russian oil giant Rosneft for more than 10 billion euros in December, and Intesa bank was involved in organising the deal. The executives were awarded the medals for their "contribution to strengthening cooperation with Russia," according to the text of the decree.

Rosneft Inks Supply Deal QHG, Glencore

Russian oil major Rosneft has concluded a deal with a company linked to Qatar and commodities trader Glencore to supply up to 55 million tonnes of crude in total over a 5-year period, Rosneft said in a statement on Tuesday. The agreement follows the acquisition of a 19.5 percent stake in Rosneft by Qatar Investment Authority (QIA) fund and Glencore last month for around 710 billion roubles ($11.8 billion). Under the terms of the acquisition, Glencore had said it would conclude a five-year supply agreement with Rosneft giving it an extra 220,000 barrels a day to trade.

Rosneft Purchase Leads $82 bln Spree by Sovereign Investors in 2016

Qatar's purchase of a stake in Russian oil company Rosneft last month crowned a year of mega-acquisitions by sovereign investors in 2016, with total deal value rising 22 percent to $82 billion whilst the number of transactions held steady. Other high-profile 2016 deals involving sovereign investors - a category consisting of wealth funds, central banks and state-run pension funds - included Melbourne Port and a stake in ride-hailing app Uber. The plunge in the pound in the wake of Brexit attracted some foreign buyers to UK real estate…

Rosneftegaz Closes Rosneft Privatization Deal

Russian state holding company Rosneftegaz on Wednesday closed a deal with the Qatar Investment Authority (QIA) and commodities trader Glencore to sell a 19.5 percent stake in state-owned oil major Rosneft, Rosneft said. The privatization deal, which Rosneft Chief Executive Igor Sechin called the largest in Russia's history, was announced by Rosneft in a meeting with President Vladimir Putin in December. Its success suggests the lure of taking a share in one of the world's biggest oil companies outweighs the risks associated with Western sanctions imposed on Russia over the conflict in Ukraine.

Putin Says Russian Government has Control of Rosneftegaz's Money

The Russian government is in control of cash on the books of state holding company Rosneftegaz and spending from those reserves is "absolutely transparent", President Vladimir Putin said on Friday. Rosneftegaz, which has stakes in oil giant Rosneft and gas monopoly Gazprom, among other assets, transfers only part of the dividends it receives to the state budget, keeping the rest on its own accounts and prompting criticism from the finance ministry. It is chaired by Igor Sechin, a powerful Putin ally who is also chief executive of Rosneft.

Russian Finance Minister says Rosneft Deal Had No Impact on Rouble

Russia's finance ministry and the central bank managed to minimise the market impact from the privatisation of oil giant Rosneft, which required conversion of foreign currencies into roubles, Finance Minister Anton Siluanov said on Friday. Russia said earlier this month it sold a 19.5 percent stake in Rosneft to the Qatar Investment Authority (QIA) and commodities trader Glencore. The deal had raised concerns that the transaction could boost the rouble volatility. "We and the central bank had a task to minimise the impact from bringing foreign currency resources into the country.

Putin: Russia received Glencore, Qatar payment for Rosneft

The Russian state budget has received a payment from the Qatar Investment Authority (QIA) and commodities trader Glencore to pay for a stake in oil giant Rosneft, President Vladimir Putin said on Friday.   Speaking at his annual end-of-year news conference, Putin said Glencore's and Qatar's ownership of the stake in Rosneft will have a positive impact on Rosneft's management.   Reporting by Katya Golubkova

EU Looks Into Rosneft Sale for Possible Sanctions Breach

The European Commission said on Tuesday it is reviewing the details of Glencore's decision to buy a stake in Russian state oil giant Rosneft to check whether it conforms with EU sanctions against Russia. Rosneft has been subject to EU and U.S. sanctions since 2014, following Russia's seizure of the Crimea region of Ukraine, although the Russian president has voiced hope of an end to the restrictions following Donald Trump's election to the U.S. presidency. "We are aware of the case and are currently looking into the details of it," an EU spokeswoman said in an emailed statement.

Putin, Qatari Emir Discuss Rosneft Deal

Russian President Vladimir Putin and Qatari Emir Sheikh Tamim bin Hamad al-Thani noted the importance of the deal in which Qatar and Glencore bought a 19.5 percent stake in Russian oil firm Rosneft , the Kremlin said. Russia and Qatar also agreed to further bilateral cooperation, the Kremlin said. On Saturday, Russia signed a deal with the Qatar Investment Authority and commodities trader Glencore for a 19.5 percent stake in Rosneft as part of a privatisation programme. The Russian budget is set to receive around 710 billion roubles ($11.66 billion), from the deal.

Russian Court Slashes Libel Payout Sought by Oil Giant Rosneft

A Moscow court on Monday rejected a demand from oil giant Rosneft that Russia's RBC media group should pay it a fine in excess of 3.2 billion roubles ($52 million) for defamation, with the judge ordering a payout of 400,000 roubles instead. Rosneft sued RBC for an article saying that Igor Sechin, the company's CEO and a long-time Kremlin ally, was trying to prevent private Rosneft shareholders from obtaining a blocking stake in the company. Rosneft said the article was untrue. Moscow arbitration court judge Ubusha Boldunov…

Russia signs Rosneft deal with Qatar, Glencore

Russian state holding company Rosneftegaz on Saturday signed a deal with the Qatar Investment Authority (QIA) and commodities trader Glencore to sell a 19.5 percent stake in state-owned oil major Rosneft, Rosneft said. The privatisation deal, which Rosneft Chief Executive Igor Sechin called the largest in Russia's history, was announced by Rosneft in a meeting with President Vladimir Putin on Wednesday. Its success suggests the lure of taking a share in one of the world's biggest oil companies outweighs the risks associated with Western sanctions imposed on Russia over the conflict in Ukraine.

Glencore's Rosneft Investment

Glencore's decision to acquire a stake in Russian state oil giant Rosneft is not financially risky, Moody's credit ratings agency said, and does not mark any shift from the miner-trader's new policy of limiting its debt levels. Russia said on Wednesday it had sold a 19.5 percent stake in Rosneft to Qatar and Glencore for a total of 10.5 billion euros ($11 billion). Glencore is financing part of the deal with 300 million euros of its own equity, with the rest financed by the Qatar Investment Authority and non-recourse bank financing.

Once Critical, Gulf Executives Want to Do Business with Trump

Donald Trump (Photo: DonaldJTrump.com)

Gulf executives who were upset by Donald Trump's campaign trail comments about Muslims took a conciliatory tone following his election victory and said they were open for business with the United States. In Dubai, boards displaying the President-elect's name and his support for a DAMAC project to build a gated community, spa and Trump-branded golf course can be seen from a road on the edge of the city. Gulf business links with Trump and other U.S. firms are strong. The United States imported…

Lower Oil Price Effect on GCC Economies in 2015

Image: Coface

The Brent oil price per barrel lost more than 50% of its value from $114 in June 2014 to the current price of about $50. Coface expects it to average at $75 on average in 2015. This bearish trend is pressurizing the hydrocarbon sector in major oil producing countries and will have an impact on GCC economies. The Gulf Cooperation Council (GCC) economies are deeply dependent on the hydrocarbon sector despite their efforts to diversify. The oil industry remains their main source of fiscal revenues and represents more than 80% of fiscal income.