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ADNOC Awards 4% Stake to China's ZhenHua Oil Company in Onshore Concession

Dr. Sultan al-Jaber, Chief Executive Officer of ADNOC and Liu YiJiang, Chairman of ZhenHua Oil Company, sign the concession contract. (Asharq Al-Awsat)
Dr. Sultan al-Jaber, Chief Executive Officer of ADNOC and Liu YiJiang, Chairman of ZhenHua Oil Company, sign the concession contract. (Asharq Al-Awsat)
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ADNOC Awards 4% Stake to China's ZhenHua Oil Company in Onshore Concession

Dr. Sultan al-Jaber, Chief Executive Officer of ADNOC and Liu YiJiang, Chairman of ZhenHua Oil Company, sign the concession contract. (Asharq Al-Awsat)
Dr. Sultan al-Jaber, Chief Executive Officer of ADNOC and Liu YiJiang, Chairman of ZhenHua Oil Company, sign the concession contract. (Asharq Al-Awsat)

North Petroleum International Company, a subsidiary of China ZhenHua Oil Co. Ltd, acquired four percent stake in Abu Dhabi National Oil Company's (ADNOC) onshore concession, previously held by CEFC China Energy Company Limited (CEFC China).

ADNOC said ownership change, which was approved by Abu Dhabi’s Supreme Petroleum Council, came in line with the UAE leadership’s directives to grant access to Abu Dhabi’s oil and gas concessions to partners who offer technology, operational experience, capital or market access.

"China ZhenHua Oil’s acquisition of the four percent stake in the onshore concession underlines the continued pull of the UAE as a leading global energy and investment destination, backed by a strong, stable and secure commercial environment," said UAE Minister of State and ADNOC Group CEO Sultan Ahmed al-Jaber.

"With China ZhenHua Oil, we will pursue mutually beneficial cooperation, share business growth opportunities and work together as we deliver on our 2030 smart growth strategy,” Jaber added.

China ZhenHua Oil is 100 percent indirectly owned by the Assets Supervision and Administration Commission of the State Council, a Chinese government agency that supervises and manages over a hundred state-owned assets and enterprises in a variety of sectors, including oil and petrochemicals and transport.

Chairman of China Zhenhua Oil Liu Yijiang, for his part, said that ADNOC has succeeded over the past several decades in developing a number of oil fields in Abu Dhabi's large limestone and carbonated reservoirs.

"As a new partner in UAE’s upstream sector, [China Zhenhua Oil] is honored to join the operating concession and will contribute its capabilities in technology, management and supply chains, which may maximize the benefits and value for all,” Yijiang added.

ZhenHua Oil operates 11 oil and gas upstream projects in six countries, with gross production of close to 10 million metric tons per year.

It is also in the fuel storage, transportation and refining business, with a trading desk in Singapore.

Following this step, China ZhenHua Oil will join the onshore concession and shareholders of ADNOC Onshore, including BP of the UK (10 percent), Total of France (10 percent), China National Petroleum Corporation (eight percent), Inpex Corporation of Japan (five percent), and GS Energy of South Korea (three percent) as participants in the onshore concession and shareholders of ADNOC Onshore.

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Business

Turkish Inflation Rises to 2.58% in October, Driven by Clothing and Food Prices

People shop at Eminonu district in Istanbul, Türkiye, November 4, 2022. (Reuters)
People shop at Eminonu district in Istanbul, Türkiye, November 4, 2022. (Reuters)
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Turkish Inflation Rises to 2.58% in October, Driven by Clothing and Food Prices

People shop at Eminonu district in Istanbul, Türkiye, November 4, 2022. (Reuters)
People shop at Eminonu district in Istanbul, Türkiye, November 4, 2022. (Reuters)

Turkish consumer price inflation climbed to 2.58% month-on-month in October, above expectations and driven by clothing and food price rises, while the annual figure was 29.77%, data from the Turkish Statistical Institute showed on Tuesday.

Clothing and footwear prices surged 12.58% during the month, while food prices rose 3.5% and transport prices were ‌up 2.02%.

In ‌a Reuters poll, monthly ‌consumer ⁠price inflation was forecast to ⁠be 2.4%, driven by higher energy price pressures as well as seasonally higher clothing and food prices, and the annual rate was seen at 29.56%.

In September, consumer prices rose 1.84% month-on-month and 29.73% year-on-year, ⁠below forecasts.

The lira stood at ‌49.9975 against the ‌dollar after the data, compared with a close ‌of 49.9725 on Monday.

The poll's median ‌estimate sees annual inflation at 29.57% by the end of 2026.

Türkiye's central bank kept its year-end interim inflation target at 24% while raising its ‌year-end inflation forecast to 28% in its third inflation report published ⁠in ⁠August.

Last Friday, the central bank said higher energy and commodity prices driven by geopolitical tensions continued to pose upside risks to inflation, a week after it cut its policy rate by 100 basis points to 36% at its October 22 meeting, its first cut since January.

Tuesday's data also showed the domestic producer price index rose 1.65% month-on-month in October for an annual increase of 27.41%.

Business

German Auto Crisis Deepens as Supplier Announces Job Cuts, Site Closures

05 November 2024, Bavaria, Herzogenaurach: A view of the headquarters of automotive and industrial supplier Schaeffler in Franconia. (dpa)
05 November 2024, Bavaria, Herzogenaurach: A view of the headquarters of automotive and industrial supplier Schaeffler in Franconia. (dpa)
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German Auto Crisis Deepens as Supplier Announces Job Cuts, Site Closures

05 November 2024, Bavaria, Herzogenaurach: A view of the headquarters of automotive and industrial supplier Schaeffler in Franconia. (dpa)
05 November 2024, Bavaria, Herzogenaurach: A view of the headquarters of automotive and industrial supplier Schaeffler in Franconia. (dpa)

German auto parts supplier Schaeffler said Tuesday that it planned to cut almost 3,500 jobs and close five sites in Europe as the crisis gripping the region's car industry deepens.

Like other German carmakers and suppliers, the group has struggled with competition for its key products, which include ball bearings and electric vehicle parts, especially from Chinese manufacturers.

Three-fourths of the 3,460 job cuts and four of the five site closures will be in Germany, the company said in a statement, pointing to "above-average" costs for workers in Europe's top economy.

The cuts, to be completed by 2028, are around three percent of the group's global workforce of almost 110,000. They should result in annual savings of around 300 million euros ($336 million) from 2030, it said.

Schaeffler, in a statement, said it was "responding to the persistently challenging environment in the automotive industry."

There was "an overall downturn in the market and intensifying competition... characterized by weakened demand for internal combustion engine vehicles and a delayed ramp-up of electric mobility," it added.

The cuts would be mainly focused on production and research and development.

Sites would be closed in Berlin, Dortmund, and two other towns in western Germany. A small site in Belgium will also be shuttered.

There will also be job cuts at sites in France and Slovakia.

Schaeffler said some of the job losses would be offset by the creation of positions in "future-oriented fields", such as humanoid robotics and defense.

While not as well-known as the car titans they work with, such as Volkswagen, BMW and Mercedes, Germany's suppliers are a crucial part of the auto ecosystem, providing everything from braking systems to in-car electronics.

But as their customers have fallen into crisis, battling Chinese competition, high production costs at home and weakening demand, suppliers have been hit hard.

Volkswagen is planning to cut around 120,000 jobs across its brands by 2030.

German industrial titan Bosch, the world's biggest supplier of car equipment, announced last year 13,000 job cuts, mostly in its auto division.

Business

Oil Rises as Peace Prospects Dim after US Hits Iran's Qeshm Island

Oil rigs operating in the Atyrau region's Irankol field in Kazakhstan (Reuters)
Oil rigs operating in the Atyrau region's Irankol field in Kazakhstan (Reuters)
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Oil Rises as Peace Prospects Dim after US Hits Iran's Qeshm Island

Oil rigs operating in the Atyrau region's Irankol field in Kazakhstan (Reuters)
Oil rigs operating in the Atyrau region's Irankol field in Kazakhstan (Reuters)

Oil prices rose more than $1 on Tuesday, as an Iranian official said a deal to the end the war was far off, while the United States struck Iran's Qeshm Island, fueling concerns over the escalation of hostilities and risks to energy supplies.

US West Texas Intermediate crude was up $1.6, or 1.66%, at $98.06 a barrel while Brent crude futures rose $1.84, or 1.76%, to $106.61 a barrel by 0744 GMT.

Both benchmarks had dropped more than 7% on ‌Monday as ‌talks between Iranian and Qatar officials lifted hopes for an ‌end ⁠to the US-Israeli war ⁠with Iran that were soon dashed.

A US official said on Monday the US had struck Iran's Qeshm Island. Some officials described the assaults as defensive and aimed at preventing Iran from attacking commercial ships in the Strait of Hormuz.

On Tuesday, a senior Iranian official told Reuters that both countries were far from reaching a deal to end the war, and Tehran would not accept Washington's "excessive demands".

Iran's ⁠parliament speaker Qalibaf said Tehran had given Washington a "strong and ‌rational response," adding, "The ball is in the US' ‌court," according to state media.

"The report added a degree of risk premium back ‌into the oil price," said Tim Waterer, chief market analyst at KCM ‌Trade.

"Just when markets were starting to price in a more diplomatic path, this reminder of ongoing military activity has flipped the tone."

The war started in late February has become a leading cause of high gasoline prices weighing on voters, and Trump is under pressure ‌to end the conflict, with mid-term elections set for Tuesday.

"For now, the risk of supply disruptions continues to provide a ⁠floor for prices, ⁠while uncertainty over Washington's next move, political developments and traders' reluctance to carry aggressive positions are capping the upside," said Priyanka Sachdeva, head of market insight at Phillip Nova.

Brent ended October at its highest in six months on concerns that the conflict could escalate again after the US midterm elections.

A Ukrainian drone attack damaged an oil refinery in the Russian city of Yaroslavl, governor Mikhail Evrayev said on Tuesday.

Russia launched a massive overnight strike on Ukrainian energy facilities in the Vinnytsia, Dnipropetrovsk and Kharkiv regions, Interfax news agency said, citing the defense ministry.

Additionally, the US will bring together delegations from Ukraine and Russia in Abu Dhabi on November 10 and 11 to discuss ending the war, post-war security pacts and de-escalation efforts.