Mubadala Oil drills fourth Thai Gulf well



Mubadala Oil and Gas has started drilling its fourth well in the Manora oilfield in the Gulf of Thailand to probe an untested rock formation for oil.

So far Pearl Energy, the South East Asian unit of Mubadala Oil, and its partner Northern Gulf Petroleum have established the presence of 24 million barrels of oil in the offshore field they discovered last November. Pearl owns 60 per cent of the field and Northern Gulf the other 40 per cent. It is one of several discoveries Pearl made last year in Thailand and Vietnam.

"Manora 4 is a step-out well targeting an area adjacent to the discoveries at Manora 1, 2 and 3," said Tap Oil, the Australian oil junior that owns 75 per cent of Northern Gulf.

"Manora 4 is also planned to penetrate a deeper interval, not previously drilled in this area, which has the potential for deeper oil reservoirs not yet discovered."

Peter Stickland, the chief executive of Tap, said: "We look forward to working with the operator Pearl Energy to advance the appraisal of the Manora field and the exploration of the surrounding acreage."

Maurizio La Noce, the chief executive of Mubadala Oil, last week said South East Asia was one of several regions in which the company hoped to expand its oil and gas production from its total of more than 400,000 barrels of oil equivalent per day. That already represents a 14 per cent increase from a year ago.

The company's other core areas are the MENA and Caspian regions.

Most of the recent production increase resulted from ramping up a project with the US company Occidental Petroleum to boost production from the Mukhaizna heavy oilfield in Oman, and the start of another venture with Occidental and Bahrain's National Oil and Gas Authority aimed at tripling output from Bahrain's only oilfield.

Mubadala Oil is also exploring for oil and gas in the Caspian Sea off Kazakhstan and is interested in other prospects off Turkmenistan.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Age: 31

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Role: Left-arm spinner

One-day internationals: 31 matches, 35 wickets, average 31.4, economy rate 3.95

T20 internationals: 41 matches, 29 wickets, average 30.3, economy rate 6.28

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Name: Infinite8

Based: Dubai

Launch year: 2017

Number of employees: 90

Sector: Online gaming industry

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