Oil & Gas Year Quotes Chadi Salloum in “Abu Dhabi 2016”
For its “Abu Dhabi 2016” edition, The Oil & Gas Year quoted Akin Gump corporate partner Chadi Salloum on the topic of “Market outlook and recovery in the UAE.” The publication asked what it called “oil and gas leaders” for the outlook of the United Arab Emirates given current oil prices.
Salloum, who heads the firm’s Middle East practice, noted that, with its current output of 2.8 million barrels of oil/day set to increase and the “new Shah gas project…expected to raise gas production,” Abu Dhabi is expected to remain among the world’s leading oil and gas producers.
He said that, in the Gulf Cooperation Council region, oil recovery technology, among other technologies, has advanced, even as stakeholders have sought to ensure cost efficiencies. He did note, however, that raising funding outside the United States for small exploration companies will be difficult and also pointed to possible liquidity issues to be faced by companies without existing revenue from production.
Salloum added, “For companies with production capabilities and attractive assets, we can anticipate mergers and acquisitions coming from industry rivals with stronger balance sheets or from financial investors looking for value opportunities. This availability of non-traditional funding is a new feature of the industry and makes this period significantly different from previous price slumps.”
He closed by noting that oil and gas companies continue to deploy resources and develop relationships and that “well-prepared firms are looking at their cashflow forecasts and entering into early and open dialogue with their partners to develop credible business plans at current oil prices.”