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UAE Signs New Contracts to Develop Energy Sector

The Upper Zakum oil field in Abu Dhabi. (Asharq Al-Awsat)
The Upper Zakum oil field in Abu Dhabi. (Asharq Al-Awsat)
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UAE Signs New Contracts to Develop Energy Sector

The Upper Zakum oil field in Abu Dhabi. (Asharq Al-Awsat)
The Upper Zakum oil field in Abu Dhabi. (Asharq Al-Awsat)

The United Arab Emirates awarded ADNOC Drilling a five-year contract to provide integrated drilling services for the development of the Upper Zakum oil field in Abu Dhabi.

The new contracts in the oil and gas sector are part of the Emirati authorities' efforts to increase the production capacity of energy supplies.

The $412 million contract will be implemented by ADNOC Offshore and start in the second quarter of 2023.

ADNOC Drilling, listed on Abu Dhabi Securities Exchange, announced it would provide integrated drilling services to the Upper Zakum field, the largest producing field in ADNOC’s portfolio, the second-largest offshore oilfield, and the fourth-largest oilfield in the world.

The services provided by ADNOC Drilling will enhance the efficiency of the project's production operations and achieve significant cost savings.

It would also support the company's plans to accelerate the goal of raising its production capacity responsibly to contribute to meeting the growing global demand for energy.

Chief Executive of ADNOC Drilling Abdulrahman al-Seiari said: "We are pleased" that the company has obtained this contract, which will contribute to "effective development of the Upper Zakum field and enable ADNOC to realize accelerated production capacity targets to responsibly supply energy to a world which sees continuously rising demand."

He added: "This contract award further demonstrates the delivery of our strategic objective to expand our oilfield services (OFS) business as we continue to work towards our goal of further doubling OFS revenues by 2025. This contract will add 20 percent to our annual revenue compared with 2022."

In a statement, ADNOC Drilling announced it was committed to expanding its comprehensive suite of services in the Oilfield Services (OFS) division to enable the efficient and competitive delivery of start-to-finish drilling and well completion for the benefit of its customers.

In 2022, ADNOC Drilling had 40 operational Integrated Drilling Services (IDS) rigs, with OFS revenue reaching $405 million, an increase of 23 percent from the previous year.

Previous IDS contract awards in 2022 include a $1.3 billion award for the Ghasha Megaproject, a $1.6 billion award for integrated drilling fluid services, and a $777 million for wireline and perforation services.

Furthermore, ADNOC Logistics & Services, the shipping and maritime logistics arm of ADNOC, announced the deployment of five new-build Very Large Gas Carriers (VLGC).

The five VLGCs (Al Ain, Zakher, Rabdan, al-Salam, and Baynounah), each with a capacity of 86,000 cubic meters, have dual-fuel engine technology and use LPG as their primary fuel source, making them among the lowest-emission vessels of this type.

The gas carriers were built at Jiangnan Shipyard in Shanghai, China, and will be owned and operated by AW Shipping, an ADNOC L&S joint venture with Wanhua Chemical Group (Wanhua).

The VLGCs, which transport liquified petroleum gas (LPG), will provide ADNOC L&S greater flexibility to meet growing global gas demand.

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Business

Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)
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Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)

Iraq produces more than 5 million barrels of oil per day (bpd), Oil Minister Basim Mohammed told state news agency INA on Saturday.

According to Reuters, Iraq is pushing for a higher OPEC production quota as the economic fallout from the Iran war and new investment by oil majors increase pressure on Baghdad to boost output, potentially putting it at odds with the producer group.

The conflict has hit Iraq particularly hard, forcing major export cuts and depriving the state of oil revenue, which accounted for 88% of government income last year.

Business

IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

Central bankers around the world would need to consider any slowdown in AI-driven growth as they assess steps in their fight against inflation, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

Georgieva said concerns about dependence on the AI investment boom and high valuations were impacting markets around the world.

"Things are going up and down, and this is likely to continue," she told an audience at IMF headquarters in Washington, adding that the volatility would complicate the job of central banks at a time when risks to price stability had been growing.

A steep rout in technology stocks on Thursday rippled through markets on fears that ⁠the Democrats' victory ⁠in the US midterm elections would increase regulatory scrutiny of AI and slow the data center build-out, sending investors to the safety of bonds.

The political jitters are hitting an AI trade already on shaky footing due to worry about return on massive spending on AI-related infrastructure, with the meltdown spurring margin calls and spooking retail investors and hedge ⁠funds alike.

Georgieva said the AI investment boom was lifting growth in some countries, helping to offset a negative oil-supply shock triggered by the war in the Middle East, but it was also adding to inflationary pressures and financial stability concerns.

The IMF last month flagged significant growth and financial stability risks from a potential ending of the AI investment boom, among other factors, including a prolonged Middle East war. At the time, it warned that a steep drop in AI investment could lead to a sharp fall in asset prices, ultimately cutting global GDP ⁠by 1.1% ⁠by 2028, including a 1.8% drop in US output.

Georgieva did not repeat the downside forecast on Friday, but acknowledged the recent market volatility.

"Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation," she said.

Democrats are planning to unleash a flood of new legislation targeting artificial intelligence systems and data-center development when they take control of the US Congress in January, Reuters reported on Friday, citing congressional aides and advocates.

That would mark a sharp shift from the Republican-led Congress, where lawmakers largely focused on promoting AI development and declined to pass legislation restricting the technology.

Business

World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
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World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.