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New Era Newspaper Wednesday July 12, 2017

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12 Inside BUSINESS Wednesday, July 12 2017 | NEW ERA ISTANBUL Investment in the oil and gas industry will see a tentative recovery in 2017 after an “unprecedented contraction” in 2016 and 2015 in face of stubbornly low energy prices, the International Energy Agency (IEA) said in a report on Tuesday. The IEA said upstream oil and gas investment – such as in exploration and production facilities – fell 26 percent in 2016 in nominal terms to US4 billion (380 billion euros), similar to the decline /NEDBANK 131 Oil, gas investment set to recover slightly: IEA seen in 2015. IEA executive director Fatih Birol told AFP: “We do not expect a major rebound, as many hoped, in order to make up the difference.” Total global energy investment fell by 12 percent in 2016, with spending on the electricity sector around the world for the first time exceeding the combined spending on oil, gas and coal, the IEA said. The IEA, an inter-governmental group set up to ensure the reliable supply of energy, released the report at the World Petroleum Congress in Istanbul, where energy bosses are debating the consequences of the dramatic plunge in oil prices. Participants have warned that the sharply lower investment levels seen in the last two years risk compromising security of supply for consumers, as discoveries and development of new oilfields falter. According to the IEA, investment in oil and gas in 2016 was little more than “half the peak level of 2014, when oil prices started to fall sharply.” It described the fall in investment in 2015 and 2016 totalling US5 billion as “an unprecedented contraction” and was partly due to reduced drilling activity. But asking whether there could now be “light at the end of the tunnel”, it said that the oil industry has reacted to the price crisis by drastically ramping up efficiency. This improved the financial health of companies and their cash flow, creating the chance of a slight recovery in investment in 2017. It estimated, on the basis of company announcements, that global oil and gas upstream investment in 2017 is set to increase by almost six percent to just below US0 billion in nominal terms. But it added: “Many of the largest oil and gas companies are still implementing a cautious approach in scaling up their spending plans.” It said that firms would be less ambitious in their planning were oil to fail to recover to above US a barrel. Birol said that the investment was not evenly spread, with investments “very weak or flat in the Middle East, Russia, and Africa” but up sharply in the US shale sector. “This shows a two-speed investment picture across the world,” he told AFP. – Nampa/AFP GET BACK ON YOUR FEET WITH NEDLOANS. GREAT VALUE NEDLOANS BELIEVES IN RESPONSIBLE BORROWING When it comes to making the seemingly impossible possible, paying an unexpected medical bill, doing home repairs or improvements, furthering your education, repairing appliances or even consolidating multiple debts - a personal loan can be a stepping stone to better your life. We offer the right loan amount at the best interest rates, ensuring that you maintain a good credit record. ThyssenKrupp to slash 2,500 jobs in new cost-saving drive FRANKFURT Am MAIN German industrial conglomerate ThyssenKrupp said Tuesday it would slash up to 2,500 administrative jobs worldwide as part of a massive cost-saving drive. Hoping to save 400 million euros (US6 million) in administrative costs, Thyssen- Krupp plans to slash between 2,000 and 2,500 back office jobs by 2020, around half of them in Germany. “Despite all our efforts to PRETORIA The German presidency of the G20 this week managed to build on the achievements of the last summit in China which had emphasised sustainable development in Africa, President Jacob Zuma said on Sunday. In a statement issued by the presidency after his return from the summit in Hamburg, Zuma said the meeting had resulted in positive outcomes to a large degree as G20 leaders discussed and agreed on various developmental issues that would benefit the African continent. “Despite disagreements on certain issues, the summit managed to discuss and agree on various developmental matters save money, we will not be able to implement (cost reduction measures) without reducing the number of posts,” the engineering and steelmaking group said in a statement. ThyssenKrupp nevertheless vowed to avoid immediate layoffs. The news drove up the group’s shares by 2.7 percent on the Frankfurt stock exchange, while the German blue-chip DAX index was almost flat. ThyssenKrupp, which employs more than 150,000 people worldwide, said it has already managed to cut costs by 800 million-1.0 billion euros annually under a massive programme embarked on in 2010/2011. But it has said that its annual administration of costs of 2.4 billion euros per year were “significantly too high” and some of its 18,000 administrative positions must go. In addition to steel, Thyssenkrupp makes elevators, as well as submarines, car parts and ready-to-use industrial installations. - Nampa/AFP Focus on Africa taken forward at Hamburg G20 summit - Zuma that would be of advantage to South Africa and the African continent, including the launch of the G20 Africa partnership. This programme was launched in recognition of the opportunities and challenges in the African continent as well as the goals of the United Nations Social Development Agenda 2030,” he said. “It was agreed that this initiative would be based on equal partnerships and will be in line with the African Union Agenda 2063. The partnership will further serve our national interest as it will generate sustainable and inclusive economic growth and development, contribute to create decent employment and economic advancement for women and youth, as well as alleviate poverty and inequality.” Among other issues discussed during the summit were sustainable development, climate and energy. Despite differences on climate and energy matters including the decision of the United States to withdraw from the Paris Agreement, the majority of leaders remained committed to the agreement as it represented best opportunities to address the existential threat posed by climate change. The leaders reaffirmed their strong commitment to the Paris Agreement and agreed on full implementation of the agreement and also agreed to the G20 Hamburg Climate and Energy Action Plan for Growth, he said. - Nampa/ANA Visit Nedbank, call 061 299 4200 or go to www.nedbank.com.na see money differently

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