Middle East

Qatar boosts Gulf Arab energy company borrowing to record highs

The Gulf Arab energy company borrowed $ 30.5 billion in 2021. This is because state-owned oil companies in the region tried to inject foreign investment into their balance sheets.

According to Qatar Energy, led the region in debt issuance Bloomberg Calculation. The company sold $ 12.5 billion in bonds in July, funding the expansion of liquefied natural gas production capacity and solidifying its position as the world’s largest exporter.

United Arab Emirates energy companies have raised $ 7.7 billion in new debt, the highest in four years for the country. Saudi Aramco, which has dominated the region’s energy corporate bond market for the past two years, was the third largest borrower in 2021 at $ 6.5 billion.

Oil nations in the Middle East borrowed even more in 2021 and even tried to sell some energy assets in a series of unthinkable moves a few years ago.

Billions of dollars in Saudi Arabia’s oil and gas pipeline network were closed this year after Abu Dhabi agreed to a similar deal with foreign investors in 2020. The shares of the sales division of some oil companies are a series of early UAE public services.

Jon Fitzpatrick, Managing Director of Gneiss Energy, said the global energy shift from oil and gas in favor of cleaner alternative energy has enabled net exporters to leverage or sell their traditional energy assets. “I don’t want 100% of what I don’t love, or I can try to get my friends to join the balance sheet,” he said.

According to Carole Nakhle, CEO of consultant Crystol Energy, the Gulf Arab energy companies sought to raise more debt while overcoming the impact of the pandemic on the oil market.

“They were already suffering from the effects of the fall in prices in 2014, but only suffered from this triple pain of low oil prices, coronaviruses and declining volumes,” she said.

Crude oil prices are moving towards the end of the year, more than 50% higher than at the beginning of the year, easing pressure on energy companies to raise debt in 2022. Prices are recovering and the economy is improving, “says Nacre.

Saudi Arabia expects to bring a budget surplus in 2022. This is a reasonable expectation if oil trades at around $ 70 a barrel. Bloomberg Intelligence..

https://gulfbusiness.com/qatar-pushes-gulf-arab-energy-company-borrowing-to-record-high/ Qatar boosts Gulf Arab energy company borrowing to record highs

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