Iran framework agreement - Kerry makes the rounds with the P5+1 and Gulf States

Over the past few weeks, John Kerry has been busy meeting with his P5+1 counterparts and members of the Gulf States in the run up to the 31 March 2015 deadline for the framework agreement on the Iranian nuclear programme...

Read More

Iran negotiation: an untimely letter

On 9 March 2015, Republican senators issued an open letter to Iran that essentially warned the latter any deal entered into with President Obama would be considered an "executive agreement" that would require Congress ratification and more importantly, could be revoked by the next president. The message it clearly sends out is that the US could back out of any agreed nuclear deal, raising serious doubts on whether the US will keep up its side...

Read More

Saudi Arabia - joining the dots: Part 6 - Emergency meeting

Saudi Arabia - joining the dots is a series of blog entries exploring Saudi Arabia's role in the oil markets with a brief look at the history of the royal family and politics that dictate and influence the Kingdom's oil policy. Part 6 - Emergency meeting OPEC's traditional strategy has been to cut production to maintain prices, but recent behaviour of the cartel or at least that of its largest member (and swing producer) shows a marked deviation...

Read More

Saudi Arabia - joining the dots: Part 5 - Breakeven, OPEC's downfall

Saudi Arabia - joining the dots is a series of blog entries exploring Saudi Arabia's role in the oil markets with a brief look at the history of the royal family and politics that dictate and influence the Kingdom's oil policy. Part 5 - Breakeven, OPEC's downfall The above chart, taken from the Wall Street Journal, paints a grim picture.  It shows the oil price required by the various OPEC members to meet their budgets. As of 10 October...

Read More

Saudi Arabia - joining the dots: Part 4 - The price wars, defending market share

Saudi Arabia - joining the dots is a series of blog entries exploring Saudi Arabia's role in the oil markets with a brief look at the history of the royal family and politics that dictate and influence the Kingdom's oil policy. Part 4 - The price wars, defending market share The sudden fall in the oil price in the middle of 2014 and the subsequent lack of response by OPEC is a stark reminder of its members' policy of defending market share,...

Read More

Saudi Arabia - joining the dots: Part 3 - The reshuffling has begun

Saudi Arabia - joining the dots is a series of blog entries exploring Saudi Arabia's role in the oil markets with a brief look at the history of the royal family and politics that dictate and influence the Kingdom's oil policy. Part 3 - The reshuffling has begun Ali al-Niami's job remains safe...for now In a further move which signals King Salman's tightening grip over the Kingdom's affairs since coming to power,  Salman promoted...

Read More

Natuna Sea Block A PSC ("NSBA")

KUFPEC (33.33%), PMO (28.67%*), Petronas (15%), Pertamina (11.5%), PTTEP (11.5%) Pertamina and PTTEP acquired their stakes as part of Hess' Indonesian portfolio NSBA supplies gas to SembGas in Singapore, together with South Natuna Sea Block B and Kakap, as part of a GSA signed in 1999 for a period of 22 years In 2008, PMO signed two additional GSAs to supply NSBA gas for power generation in Batam, Indonesia Due to delay in constructing the pipeline to Batam, a swap agreement has been signed for the Batam earmarked gas to be supplied to Singapore...

Read More