MELBOURNE: With a giant gas project expansion in the tropical highlands of remote Papua New Guinea bogged down by politics, the country’s biggest company, Oil Search, is turning for growth to the other side of the world in Alaska’s frozen wilderness.
Australia-listed but headquartered in Port Moresby, the A$10.7 billion ($7.2 billion) oil and gas producer has shaped the industry in Papua New Guinea over the past 90 years, helping drive development in the impoverished nation.
But the scale of its PNG projects has left it dependent on decisions by giant international partners, while government demands for a bigger stake in resource projects may delay a planned $13 billion liquefied natural gas (LNG) expansion.
The confusion has opened a window for Oil Search to push ahead with a promising field in Alaska’s North Slope oil region that it bought into in 2018 and where it is the project operator.
Despite a steep learning curve, it plans to start producing as early as 2022 to help meet a target of doubling its annual output to around 60 million barrels of oil equivalent by 2025.
“It’s a perfect foil in terms of product diversity and geographic diversity. It’s an excellent asset in the sense that we can control it a lot better,” Oil Search Managing Director Peter Botten told Reuters in an interview.
Oil Search has parlayed its years in Papua New Guinea into a 29% stake in the PNG LNG project, led by Exxon Mobil Corp. , and a 23% stake in the Papua LNG project, led by Total SA, and has been a key player behind a plan to unite the two projects and double the country’s LNG exports.
The projects are considered among the best in the world, blessed with low costs, high quality gas, existing infrastructure and proximity to Asia markets, factors that have long made Oil Search subject to takeover speculation.
To begin production at the planned expansion by 2024, Oil Search’s partners need to give the go-ahead next year on the two projects.
One hurdle was resolved last week when the state backed down from a bid to overhaul terms with Total, but talks with Exxon to develop the P’nyang gas field, which the companies had hoped to seal by June, are yet to happen.
“You’d think they’re likely to get there quicker on Alaska than they do on PNG at this stage,” said Andy Forster, a portfolio manager at Argo Investments, which more than doubled its holding in Oil Search in the year to June 2019.
In Alaska, Oil Search has spent $850 million buying a 51% stake in the Pikka prospect on the assumption it holds 500 million barrels of recoverable oil.
With Spain’s Repsol, it aims to produce 30,000 barrels a day of oil by as early as 2022 to start generating cash, then ramp up to 120,000 bpd in 2024.
Beefing up its small staff in Alaska, the company has hired a Trump administration official who oversaw oil and gas drilling on US federal lands as its external affairs head.
It is hoping to prove up reserves closer to 750 million barrels over the next six months, find more oil around its Nanushuk field and sell part of its stake to help fund the project.
“I think the development schedule we’re working up right now is one that’s very doable,” Botten said.
Consultants Wood Mackenzie like the project but are more skeptical about the timing because drilling in Alaska is restricted to the winter months, and delays of a month or two can set work back by a whole year.
“Alaska as a region is quite prone to delays,” said Wood Mackenzie analyst Rowena Gunn. “It’s very, very high cost, it’s a remote, tough environment to work in, and there’s a lot of environmental regulations.”
Still, the breakeven costs on the project were competitive with other big oil projects, given it is onshore and close to existing infrastructure.
“It’s really big, and it’s oil,” said Calgary-based Gunn, adding there was potential to tie discoveries into existing infrastructure.
Oil Search company spurned an $8 billion approach from Australia’s Woodside Petroleum Ltd. four years ago, but its shares have since fallen due to a glut of LNG and uncertainty in PNG, making it potentially vulnerable.
“In the global sector they’re a small company but have material interests in global scale assets. That will always leave them having corporate appeal,” said Adrian Prendergast, an analyst at stockbroker Morgans, noting the PNG assets.
A banker suggested the Alaskan assets are an unlikely fit and may be sold by any potential suitor, but Botten disagreed.
“It only makes the company much stronger,” he said. “I absolutely don’t see it as a poison pill.”
Oil Search woes in Papua New Guinea throw spotlight on Alaska
Oil Search woes in Papua New Guinea throw spotlight on Alaska
- Race on for Papua New Guinea LNG expansion
Saudi Arabia to see 700% surge in millionaire inflows in 2025: Henley & Partners
RIYADH: Saudi Arabia is projected to attract 2,400 high-net-worth individuals in 2025, marking a sharp increase from the 300 millionaires estimated to have relocated to the Kingdom in 2024.
This eightfold rise positions Saudi Arabia as the fastest climber in the Henley Private Wealth Migration Report 2025, published by Henley & Partners in collaboration with New World Wealth.
Across the Gulf, the UAE continues to lead globally, forecast to attract 9,800 millionaires this year, the highest net inflow worldwide, followed by the US with 7,500.
HNWIs are relocating to the Kingdom due to its ambitious Vision 2030 agenda, pro-business reforms, and growing investment opportunities. The surge in inbound wealth reflects the region’s growing appeal to both returning nationals and international investors, particularly in Riyadh and Jeddah.
Saudi Arabia has also introduced attractive residency programs, tax incentives, and a push to diversify the economy beyond oil.
Juerg Steffen, CEO of Henley & Partners said that 2025 marks a “pivotal moment” for global wealth migration, adding: “It reflects a deepening perception among the wealthy that greater opportunity, freedom, and stability lie elsewhere.”
Mega projects like NEOM, improved infrastructure, and a focus on tourism and fintech are drawing international interest.
Additionally, the Kingdom offers political stability, regional influence, and a strategic location, making it an increasingly attractive destination for global wealth.
Henley & Partner’s report aligns with a recent study by consulting firm Capgemini, which highlighted the Middle East’s growing appeal to next-generation high-net-worth individuals, citing geopolitical security and economic stability as key drivers of investment interest in the region.
The analysis, published earlier in June, pointed specifically to Saudi Arabia’s aggressive efforts to attract global wealth through its economic diversification strategies, positioning the Kingdom as a rising center for international capital.
Capgemini also noted that the UAE is capitalizing on the same trend, with both Gulf economies drawing increased interest from global investors seeking high-growth markets and stable financial environments.
UK biggest loser amid global shift
Henley & Partner’s recent report predicts that an unprecedented 142,000 millionaires across the world are expected to relocate in 2025.
While Gulf countries and select European destinations see rising inflows, several traditional wealth hubs are witnessing record outflows.
The UK is forecast to lose 16,500 high-net-worth individuals, the highest on record, more than doubling China’s projected outflow of 7,800.
This reversal comes after years of the UK being a net destination for wealth, with recent tax reforms — including increases to capital gains and inheritance taxes and tighter regulations on non-domiciled residents — prompting an accelerated departure.
“Since 2014, the number of resident millionaires in the UK dropped by 9 percent compared with the W10’s global average growth of 40 percent,” said Trevor Williams, chair and co-founder at FXGuard, a digital foreign exchange risk manager, according to the report.
The shift is part of a broader trend in Europe, where France, Spain, and Germany are also expected to experience net outflows of wealthy individuals.
In contrast, Southern Europe is emerging as a new hub for global wealth.
Switzerland is projected to gain 3,000 millionaires, while Italy is set to receive 3,600.
Portugal and Greece are expected to receive 1,400 and 1,200, respectively.
Smaller markets such as Malta, Montenegro, and Latvia are also benefiting from favorable tax regimes and investment migration programs.
Beyond Europe, Thailand and Japan are increasingly preferred by wealthy individuals in Asia.
Thailand is forecast to gain 450 millionaires, and Japan 600, driven by political stability and high-end real estate.
Hong Kong is also showing signs of recovery, with inflows from mainland Chinese executives linked to the region’s growing tech sector. However, South Korea is set to see a significant outflow of 2,400 millionaires, reflecting broader economic and political uncertainty.
Other countries in Asia and the Middle East, including Vietnam, Pakistan, Iran, and Lebanon, are expected to see continued outflows of wealthy individuals, many relocating to the UAE or the US.
Misha Glenny, rector at the Institute for Human Sciences in Vienna, said recent geopolitical developments, including tensions in the Middle East, are contributing to a reshuffling of wealth migration patterns, according to the report.
In the Americas, Central American and Caribbean jurisdictions such as Costa Rica, Panama, and the Cayman Islands are expected to attract record numbers of high-net-worth individuals.
Despite a lower-than-usual forecast for inflows, the US remains a top destination for relocating millionaires.
Parag Khanna, founder and CEO of AlphaGeo, an AI-powered predictive analytics platform for investing, noted the ongoing role of Asia in shaping global wealth trends.
“Asia’s wealth landscape is a dynamic blend of ambition and caution. Singapore and Japan are solidifying their reputations as global wealth havens, while China and India are balancing domestic opportunity with the desire for diversification,” Khanna was quoted as saying in the report.
Gulf shares rise as Iran-Israel ceasefire holds
- Saudi Arabia’s benchmark stock index extended its gains to a fourth straight session, rising 0.2%
- Abu Dhabi benchmark index rose 0.4%
LONDON: Stock markets in the Gulf rose in early trade on Thursday, extending gains from the previous sessions amid rising oil prices as a ceasefire between Israel and Iran appeared to be holding.
US President Donald Trump hailed the swift end to the air war between Iran and Israel and said Washington would likely seek a commitment from Tehran to end its nuclear ambitions at talks with Iranian officials next week.
Saudi Arabia’s benchmark stock index extended its gains to a fourth straight session, rising 0.2 percent, with most sectors in the green. Oil major Saudi Aramco added 0.3 percent and Red Sea International climbed 3 percent.
Modular house manufacturer Red Sea said on Wednesday it planned to float its mechanical, electrical and plumbing subsidiary on the Saudi market.
Oil prices, a catalyst for the Gulf’s financial markets, were up 0.2 percent as a larger-than-expected draw in US crude stocks signalled firm demand. Brent crude was trading at $67.83 a barrel by 10:05 a.m. Saudi time.
The Abu Dhabi benchmark index rose 0.4 percent, aided by a 5.3 percent advance in RAK Properties and a 0.6 percent gain in Borouge.
Petrochemical company Borouge said on Wednesday it would collaborate with Honeywell on a project to deliver the petrochemical industry’s first AI-driven control room.
Dubai’s benchmark stock index was up for a fifth straight session, advancing 0.6 percent, pushed up by the materials, industry and finance sectors.
Tolls operator Salik gained 1.8 percent and Emirates NBD, the emirate’s largest lender, added 0.6 percent.
The Qatari benchmark index was marginally up, propped up by gains in the materials, utilities and communications sectors.
Vodafone Qatar advanced 1.2 percent while Qatar National Bank, the region’s largest lender, shed 0.3 percent.
Qatar Investment Authority and Canadian asset manager Fiera Capital have launched a $200 million fund to boost foreign and local investment into the Gulf state’s stock market, QIA said on Wednesday.
Health, military spending lift Saudi ICT contracts to $10bn
- Military sector received SR5.16 billion across 1,125 contracts
- Infrastructure and transport saw investments totaling SR5.26 billion
RIYADH: Saudi Arabia’s health, military, and infrastructure sectors led an 18.75 percent rise in government information and communications technology contracts in 2024, reaching SR38 billion ($10.13 billion), official data showed.
According to the Government Spending Report 2024, published by the Digital Government Authority, the value of contracts climbed from SR32 billion in 2023, with the health and social development sector receiving SR6.54 billion through 1,085 contracts.
The report said that 2024 spending priorities focused on artificial intelligence, emerging technologies, and cloud computing, positioning these areas as central to enhancing operational performance across public sector entities.
The government’s sustained push to bolster digital services underscores Riyadh’s growing investment in digital infrastructure, part of its Vision 2030 strategy to diversify the economy and modernize public services.
The report added that activating national framework agreements significantly contributed to these outcomes, enabling improved negotiation capabilities and more effective financial planning.
“These tools have enabled government entities to obtain goods and services more quickly, efficiently, and at lower cost,” the report said.
“They also highlight the added value achieved by enhancing supply chains and improving the quality of procurement, which in turn raises the efficiency of government entities in managing expenditures in contracts and agreements,” it also said.
Among other sectors, the military received SR5.16 billion across 1,125 contracts, while infrastructure and transport saw investments totaling SR5.26 billion. The education sector was allocated SR4.37 billion, followed by economic resources at SR3.42 billion, and public administration at SR2.39 billion.
There was a 157 percent increase in purchase orders through national framework agreements, amounting to SR4.47 billion through 9,457 orders. The report said these tools helped accelerate service delivery and improve procurement quality.
Government agencies achieved an estimated SR1 billion in savings during 2024 by improving spending efficiency and optimizing procurement and budgeting practices.
Saudi Arabia also continued to demonstrate global leadership in digital government performance. It ranked sixth globally and first regionally in the 2024 UN E-Government Development Index, climbing 25 places from 2022.
It also topped the Government Electronic and Mobile Services Maturity Index for the third consecutive year, achieving a score of 96 percent.
According to the report, and based on data from global research firm Gartner, Saudi Arabia led all countries in government ICT spending as a share of total ICT expenditure in 2024, reaching 34.1 percent.
Oil Updates — crude steady as investors watch Iran-Israel ceasefire, demand signals
- Market focus switching to fundamentals, analysts say
- Data shows US ‘driving season is in full swing’, ANZ says
LONDON: Oil prices were steady on Thursday after erasing earlier gains as investors remained cautious about the Iran-Israel ceasefire while also shifting focus to market fundamentals.
Brent crude futures fell 6 cents, or 0.09 percent, to $67.62 a barrel by 12:45 p.m. Saudi time. US West Texas Intermediate crude fell 2 cents, or 0.03 percent, to $64.90 a barrel.
Both benchmarks climbed nearly 1 percent on Wednesday, recovering from early-week losses after data showed resilient US demand.
Investors will shift their focus back to macroeconomics and oil balances while also watching the Israel-Iran truce, said PVM analyst Tamas Varga.
Oil prices likely followed equity markets lower this morning, UBS analyst Giovanni Staunovo said.
“US government data showed the US driving season is in full swing after a slow start,” ANZ analysts said in a note.
US crude oil and fuel inventories fell in the week to June 20 as refining activity and demand rose, the Energy Information Administration said on Wednesday.
Crude inventories fell by 5.8 million barrels, the EIA said, exceeding analysts’ expectations in a Reuters poll for a 797,000-barrel draw.
Gasoline stocks unexpectedly fell by 2.1 million barrels, compared with forecasts for a 381,000-barrel build as gasoline supplied, a proxy for demand, rose to its highest level since December 2021.
On Saturday, Igor Sechin, the head of Russia’s largest oil producer Rosneft, said OPEC+, which groups together the Organization of the Petroleum Exporting Countries and allies including Russia, could bring forward its output hikes by around a year from an initial plan.
Meanwhile, US President Donald Trump hailed the swift end to war between Iran and Israel and said Washington would likely seek a commitment from Tehran to end its nuclear ambitions at talks with Iranian officials next week.
Trump also said on Wednesday that the US has not given up its maximum pressure on Iran — including restrictions on sales of Iranian oil — but signalled a potential easing in enforcement to help the country rebuild.
IMF approves $834m resilience support package for Jordan
- Jordan’s economy has faced mounting pressures in recent years
- IMF and World Bank have stepped up their support
RIYADH: The International Monetary Fund has approved a $834 million support package for Jordan’s economy which includes a $700 million loan and a $134 million disbursement from a previously agreed fund.
The institution’s executive board has completed the third review of Jordan’s Extended Fund Facility, allowing for an immediate distribution of the $134 million, according to a press release. This brings total disbursements so far under the four-year, $1.3 billion program, approved in January 2024, to $595 million.
Additionally, the new 30-month Resilience and Sustainability Facility arrangement will grant Jordan access to $700 million to address structural challenges in the water and electricity sectors and strengthen preparedness for public health emergencies, including future pandemics.
Jordan’s economy has faced mounting pressures in recent years, intensified by regional instability, including the ongoing war in Gaza and the prolonged hosting of large numbers of refugees from neighboring conflicts. These challenges have strained public finances, increased unemployment, and disrupted trade and tourism, key sectors for the Jordanian economy.
The IMF and World Bank have stepped up their support, backing reforms aimed at stabilizing finances and spurring growth under Jordan’s Economic Modernization Vision.
Kenji Okamura, IMF deputy managing director, praised Jordan’s “steadfast pursuit of sound policies” and urged continued reforms to boost private investment and job creation.
“Monetary policy remains appropriately focused on safeguarding monetary and financial stability and supporting the exchange rate peg that has served Jordan well and helped keeping inflation low,” the deputy managing director said.
Okamura observed that Jordan’s banking sector remains robust, with the central bank bolstering risk analysis, oversight, and crisis response.
The IMF emphasized the need to boost revenue, streamline spending, and implement contingency measures to reduce public debt while safeguarding key social and capital expenditures. It also stressed improving public utilities’ efficiency and viability to ensure fiscal sustainability and better service delivery.
“The authorities continue to make progress with a gradual fiscal consolidation and strengthening fiscal sustainability, thanks to fiscal reforms that have improved revenue administration and expenditure efficiency,” the organization said.
Economic resilience amid regional challenges
Despite external pressures from regional conflicts and global uncertainty, Jordan’s economy has shown steady growth, reaching 2.5 percent in 2024, with inflation remaining low, according to the IMF.
The Central Bank of Jordan has maintained strong foreign reserves of over $20 billion and a stable exchange rate peg.
The Extended Fund Facility program has supported fiscal reforms, helping Jordan reduce public debt while protecting social spending. The new Resilience and Sustainability Facility loan will focus on improving energy and water sector sustainability, strengthening financial resilience, and enhancing pandemic preparedness.
In February, the IMF commended Jordan for effectively managing economic headwinds from the Gaza war through prudent fiscal measures, though the institution did revise down the country’s 2024 growth forecast to 2.6 percent due to regional spillovers.
In April, the World Bank bolstered Jordan’s economic development efforts with $1.1 billion in new financing to expand social protections and drive private-sector growth, targeting the country’s 22.3 percent unemployment rate and 117 percent debt-to-gross domestic product ratio.
Both institutions emphasized the need to sustain reforms to address structural challenges exacerbated by refugee inflows, the pandemic, and regional conflicts.
