Kuwait Financial Centre “Markaz” Daily Oil & Gas Bulletin – 17 January 2012

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Regional Oil & Gas Highlights OPEC Keeps Oil Demand Forecast Steady, Warns on European Economic Crisis - The Organization of Petroleum Exporting Countries kept its forecast for 2012 oil demand unchanged, while warning that Europe‟s debt crisis could harm global consumption. Oil use will increase by 1.1 million barrels a day, or 1.2 percent, to 88.9 million a day this year as per OPEC estimates. If Europe‟s turmoil “were to worsen, the effect on the oil market could be seen not only through a further decline in oil demand in Europe, but also with spillover effects on oil demand in the emerging economies,” OPEC said. Sabic, Sinopec to build new plastics plant – SABIC and the China Petroleum and Chemical Corporation (Sinopec) signed a protocol of cooperation in Riyadh, which includes joint investment to build a new polycarbonate plant. The polycarbonate production complex with an annual capacity of 260 kilo metric tonnes will be located at the Sinopec Sabic Tianjin Petrochemical Company (SSTPC) in Tianjin, China. Sabic will become one of the largest producers of polycarbonate when the plant commences operations in 2015.

China's CNPC invests $50 million in Iran oilfield - China National Petroleum Corporation (CNPC) has left Iran's Koohdasht oil block exploration project due to being economically unjustified despite investing up to $50 million since four years ago. The Chinese company carried out exploration operations over 600 square kilometers area, which led to finding an oilfield in the oil block. Meanwhile, National Iranian Oil Company (NIOC) director for exploration affairs said that developing the oilfield is economically justified for the NIOC.

Apicorp profit jumps 86% - The Arab Petroleum Investments Corporation, a multilateral bank owned by the ten member states of the Organisation of Arab Petroleum Exporting Countries (OAPEC), profits increased 86 per cent to $57.5 million in the fourth quarter of last year. Total assets rose 7.4 per cent year-on year to above $4.63 billion at the end of December 2011. Total equity at the end of 2011 climbed over 6.6 per cent, compared to 2010, to $1.2 billion.

Select MENA Oil & Gas Stock Prices

Ticker Name Currency Price Change P/E

ALQURAIN Qurain Petrochemicals KWD 212.0 0.00% 11.54

IPG Independent Petroleum Group KWD 295.0 0.00% 9.51

OULAFUEL Oula Fuel Co. KWD 295.0 0.00% 27.12

ABAR Burgan Co. for Well Drilling KWD 212.0 0.00% 21.94

BPCC Boubyan Petrochemicals Co. KWD 540.0 -1.82% 10.58

SABIC Saudi Basic Industries Corp. SAR 94.0 -0.53% 9.49

SAFCO Saudi Arabian Fertilizer Co. SAR 175.0 -0.57% 10.64

PETROR Rabigh Refining & Petrochemical Co. SAR 23.0 -0.65% 295.71

YANSAB YANBU National Petrochemical SAR 42.7 -0.70% 7.57

IQCD Industries Qatar QAR 130.2 0.15% 9.22

QGTS Qatar Gas Transport Co. QAR 17.3 0.00% 12.16

DANA Dana Gas AED 0.4 2.94% 5.09

TAQA Abu Dhabi National Energy Co. AED 1.2 0.00% 4.88

SOM Shell Oman Marketing Co. OMR 2.3 -1.96% 17.33

Oil & Gas Prices

Price 1 Day ∆ YTD

Brent 111.35 0.03% 2.46%

WTI 99.1 -1.75% -0.13%

Kuwait Export 113.01 1.14% 6.31%

Saudi Heavy 111.96 1.15% 6.43%

Dubai Light 109.88 -0.10% 4.81%

OPEC Basket 112.93 0.03% 4.60%

Henry Hub Spot Nat Gas

2.67 -4.98% -10.74%

Global Energy & Currency Market Watch

Last Close Change YTD Change

MSCI World Index 1201.06 0.00% 1.73%

MSCI World Energy Index 239.63 0.00% -0.03%

S&P 500 Energy Index 524.36 -0.85% 0.33%

Oil Service Sector Index 225.33 -0.77% 3.19%

USD/KWD 0.2796 0.11% -0.60%

Euro/USD 1.2667 -0.63% -5.36%

USD Index ($ vs Weighted Currencies) 81.479 0.55% 3.10%

Regional Equity Markets Snapshot

Last Close Change YTD Change

Kuwait SE 5760.90 -0.03% -0.86%

Saudi SE 6420.89 -1.14% 0.05%

Qatar SE 8625.51 -0.17% -1.75%

Abu Dhabi SE 2314.47 -0.44% -3.66%

Dubai SE 1302.62 0.11% -3.75%

Muscat SE 5636.42 0.04% -1.03%

Bahrain SE 1142.28 0.01% -0.12%

*All prices as of last traded day