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TEL AVIV — Israel's Antitrust Authority on Tuesday moved to scrap a deal that gave US giant Noble Energy and Israeli partner Delek control over the Leviathan offshore gas field, citing monopoly concerns.

The decision, pending a confirmation hearing, effectively dismantles the monopoly held by Noble and Delek over Leviathan and Israel's smaller offshore gas findings.

"The entry of Delek and Noble into Leviathan created a situation in which these groups control all the gas reserves off Israel's coasts," the Antitrust Authority said in a statement.

The authority added that it would consider defining the two firms' Leviathan partnership as a "cartel".

The size of the Leviathan field is estimated at 535 billion cubic metres (bcm) of natural gas, along with 34.1 million barrels of condensate, making it the largest gas deposit found in the world in a decade.

Noble and Delek also control the Tamar field, which holds 250 bcm of natural gas, and lies 80 kilometres west of the northern Israeli port city of Haifa.

The authority had initially proposed an agreement under which Noble and Delek would enter Leviathan on condition they sell two smaller offshore gas fields to enable competition, which was to have been submitted to court within two weeks.

But it eventually went back on its decision.

"The authority received significant indications the agreement would not create a solution to the problem of competition," the statement said.

Deputy attorney general Avi Licht had recently called upon director generals of the government ministries to "rethink" the gas fields arrangement.

In a letter sent last week, Licht warned of the situation of "an essential infrastructure in Israel" being held "by one private body”, and called to "rethink" the regulation of the field.

Noble Energy slammed the antitrust authority's move, warning it would cast "a shadow over the future of the gas and crude oil industry in Israel".

Ahead of the announcement, Bini Zomer, director of Noble's local branch, warned any such move would "affect the future of Noble Energy investments" in Israel.

And Yitzhak Tshuva, owner of Delek, warned the move would lead to a drop of Israel's credit ratings, calling himself a "victim" in an interview on military radio.

Israel's offshore gas findings have shifted it from costly and unreliable imports to a growing self-sufficiency and the potential to become an energy exporter, recently advancing agreements to export gas to neighbours Jordan and Egypt.

Israel had relied on Egypt for roughly 40 per cent of its gas needs, but in April 2012 Egypt annulled the contract following a spate of bomb attacks that targeted the pipeline used to transport natural gas to Israel and Jordan.

SEOUL — South Korea on Monday trimmed its economic growth forecast for 2015 to 3.8 per cent from 4 per cent as it vowed to continue expansionary policies aimed at spurring domestic consumption.

The revised projection comes after the country's central bank this month warned its own 3.9 per cent growth forecast would be "difficult" to maintain as domestic demand alternated between positive and negative territories and a weak yen hurt the price competitiveness of South Korean firms against Japanese rivals abroad.

The finance ministry said Monday that, in addition to the 2015 growth forecast being lowered, its estimate for this year's economic growth was also revised down to 3.4 per cent from 3.7 per cent. South Korea's economy grew 3 per cent last year.

"We must maintain our expansionary macroeconomic and fiscal policies so that people can feel the effect of economic recovery," President Park Geun-hye said at a meeting of economic ministers on Monday.

Consumer spending has recovered at a slower-than-expected pace this year despite a government stimulus package and a series of cuts in the Bank of Korea's key interest rate, which now stands at 2.0 per cent.

The ministry said domestic demand may pick up next year, helped by lower oil prices.

"Our economy will pick up gradually thanks to our expansionary macroeconomic policy, lower international oil prices and an expected global economic recovery," Finance Minister Choi Kyung-hwan said.

But economic weakness in China and Europe, as well as the US Federal Reserve's expected policy tightening, might weigh on South Korea's growth, the ministry said.

It also said consumer prices are expected to rise about 2 per cent next year, faster than this year's estimated 1.3 per cent rate.

The country's current-account surplus for 2015 may fall to $82 billion in 2015 from $89 billion this year, it added.

LONDON — Plunging oil prices have increased the strain on the many small energy firms operating in the North Sea who were already facing diminishing returns from an area that once helped power the British economy.

With fields more mature and oil harder to find, heavyweights such as BP and Shell turned their attention elsewhere long ago, leaving smaller independent firms to explore the more remote areas.

As many as 133 companies are now active in the British part of the North Sea. However, a third of those companies are deemed by experts to be too small to finance big ticket projects and a  fall of around 45 per cent in oil prices since June has lessened the sector's appeal to big investors.

Efforts to find new oil and gas fields have slumped to the lowest level since exploration started in the 1970s because of reduced investment. That has sharply cut the amount of revenue the government can expect to take from the sector in taxation.

"Nothing less than radical change will prevent the premature demise of the basin, let alone maximise economic recovery," said Dave Blackwood, former head of BP's North Sea business, adding his voice to industry calls for tax cuts.

Britain's finance ministry has said it is working on a reform of its oil and gas tax policy but its drive to reduce the budget deficit will limit its ability to cut rates. An election next May only adds to the political uncertainty.

British oil companies pay a supplementary levy on top of production income tax, which will drop by 2 percentage points to 30 per cent on January 1. The oil industry is crying out for steeper cuts to help dampen the impact of surging costs.

"You've got to get the tax change right. If you put it up too much, and arguably that has happened, then it strangles activity," Mark Routh, chief executive at small North Sea player Independent Oil and Gas, told Reuters.

Receipts fall

During the early 1980s, annual tax receipts to Margaret Thatcher's government peaked at 12 billion pounds ($18.8 billion) when booming North Sea oil output coincided with high oil prices, four times the 3 billion pounds predicted for 2014.

Promised oil revenues were in part used to justify Scotland's independence movement which banked on oil to underwrite a historic break for the rest of Britain, thwarted in a referendum in September.

Instead, Brent crude prices fell as low as $58.5 a barrel last week and the major oil firms are shifting their focus to more promising new areas in Southeast Asia, Africa and shale oil plays in North America.

While Britain's growing pool of small-scale firms, such as Parkmead, Hurricane Energy and Infrastrata , can be more nimble when it comes to adopting new technologies, many of the areas remaining to be explored are remote and therefore costly.

"If they don't have the money they can't fund activity," indicated Brian Nottage, general manager at oil and gas advisory Hannon Westwood.

An example is Atlantic Petroleum, which produces oil in the UK North Sea and has cut its exploration spending for 2015 by 75 per cent, arguing it needed to save cash to fund its operating fields in the current oil price environment.

An increasing number of firms looking to enter new fields are now offering "farm-outs", allowing investors including rival companies, to take a stake in the new project.

"[But] not that many are successful, hence the problem that we see in exploration activity," Nottage said.

Of the 133 companies in the UK North Sea, more than a third have not developed reserves in the basin, meaning they cannot bank on any revenue from production in the short term.

In the longer term, the large number of small-scale players accessing the North Sea exploration market could lead to merger activity to create more robust businesses.

"The UK North Sea is definitely at an inflection point. That inflection point will either send it down or have the potential to make sure it remains as a basin for another 10-15 years," said Alison Baker, head of PwC's UK oil and gas practice

AMMAN – The Central Bank of Jordan (CBJ) on Sunday closed down a major currency exchange company for administrative and financial violations.

Alaa Eddine Diraniyeh, president of the Jordanian Exchange Association (JEA), said Monday the CBJ decided to close down Samhouri Exchange for a month until the company rectifies violations committed by the management. 

In a phone interview with The Jordan Times, Diraniyeh said the CBJ and the syndicate are working to secure that all money transfers be paid by the company soon. 

Vijay Neekhra, an Indian worker in Jordan, transferred $5,000 to the US and he was afraid the money would never reach the beneficiary. 

The amount was transferred on December 5. 

Also, Binu Johan transferred $1,583 to his family in India on December 8. 

Both money senders were concerned they lost the money when they heard the news about the closure of Samhouri Exchange, which operates seven branches in Amman. 

Copies of the transaction receipts were made available to The Jordan Times. 

But Diraniyeh assured all money transactions made via the exchange company will reach their destinations. 

"I want to assure all clients of the exchange firm that all inbound and outbound money transfers will be paid by Samhouri very soon," he said. 

There are around 120 currency exchange firms in Jordan, according to the syndicate's figures. 

MOSCOW – Deep recession, skyrocketing prices and a fragile banking system: Although the ruble seems to have stabilised after its abysmal drop past week, Russia still faces the heavy consequences of the turbulence.

For most Russians, the week ended with relief: After trading at unbelievable levels of 80 to the dollar and 100 to the euro, the ruble appears to have stabilised at around 60 and 73, respectively.

A double whammy of Western sanctions over Ukraine and plunging oil prices finally caught up with the country that depends on energy exports for half of government revenue, and the authorities came out of their apparent stupor only as the ruble's plunge in value had already gained momentum.

After the ruble fell by nearly 10 per cent on Monday, the central bank moved beyond its limited currency market interventions and in the middle of the night hiked the key interest rate by a tremendous 6.5 percentage points to 17 per cent.

But that failed to stop the panic, with the ruble dropping by 20 per cent on Tuesday — bank websites crashed as too many users tried to connect, and crowds packed Ikea until 2:00am to get a hold of goods before announced price increases took effect.

'Confidence shaken'

President Vladimir Putin tried to put a brave face on the crisis at his annual year-end press conference, saying that recovery is "inevitable", although he acknowledged it could take up to two years to materialise. 

He did not announce any economic reforms or specific solutions to the crisis.

"The trend of the economy in the next six months is certainly going to be much worse" after this past week, said Chris Weafer, an analyst with Macro Advisory consultancy. 

"Confidence is shaken — in the central bank, in the currency, in the direction of the economy," he told AFP. 

"Consumption and investment are going to take a hit because of higher [interest] rates, inflation will be higher because of the weaker currency... the banks are going to turn to the government and shelves will be empty after the New Year."

In a sign of the challenges ahead, several suppliers have halted deliveries in a bid to raise prices. 

Some stores decided to close their shutters — Apple stopped sales via its Russian online store, while Ikea suspended sales of kitchens and home appliances and warned that prices on the website "may differ from prices in stores".

Opel and Chevrolet are no longer delivering to dealerships.

Russian media said that stores selling imported alcohol or clothing including Zara, Topshop and Calvin Klein are also trying to avoid selling at a loss while observers predict that many Western brands will soon disappear from Russia.

That trend has begun and inflation — already close to 10 per cent — threatens to reach 15 per cent in the coming months. 

This will hit the purchasing power of Russians, whose real incomes already declined in the first 11 months of the year compared with 2013.

With the ruble having now lost nearly 50 per cent of its value against the dollar in the past year imported food and consumer goods are quickly becoming luxuries.

Even the central bank estimates the economy could suffer a sharp contraction of nearly 5 per cent next year if oil prices stay at current levels.

'Crisis spreading' 

"Events have moved quickly and there are now growing signs that the currency crisis is spreading to the banking sector," wrote emerging markets economist at Capital Economics William Jackson.

Russia's financial sector is particularly vulnerable, as its state-controlled banking behemoths and a multitude of smaller institutions have been unable to raise funds in the West due to sanctions over Russia's annexing Crimea and support for separatists in Ukraine.

The central bank announced measures Tuesday aimed at ensuring their survival by improving access to liquidity and easing accounting standards.

On Friday, Russian lawmakers approved a bill on the recapitalisation of banks worth 1 trillion rubles ($16 billion, 13 billion euros). The finance ministry is also hoping to increase capital in the banking sector by 13 per cent and the volume of loans issued by 15 percent.

For many Russians, the downward spiral of the ruble brought back memories of the crisis in 1998, when Russia defaulted on its debt. 

"People are behaving like it's 1998 but there is no reason for it: Russia was a bankrupt country then and now it's actually financially in a pretty good shape," Weafer said.

High oil prices over the past decade have allowed Moscow to pile up substantial hard currency reserves. Even after having spent heavily to support the ruble, the central bank's reserves still stand at around $400 billion. 

Public debt is just over 10 per cent of GDP. The budget remains balanced and the government has a big rainy day fund to draw upon to sustain social spending.

ABU DHABI — Saudi Arabia’s oil chief on Sunday dismissed allegations that his kingdom conspired to bring down oil prices in order to harm other countries and told a summit of Arab energy leaders that he was confident the market would stabilise.

The kingdom, which is dependent on oil revenues, is able to weather lower oil prices due to large reserves built up over the years. Non-OPEC member Russia and other nations like Iraq, Iran and Venezuela need prices substantially above present levels to meet budget goals and want to drive prices up.

Saudi Arabia maintains it is opposed to cutting production because of fears its market share could erode.

“The best thing for everybody is to let the most efficient produce,” Saudi Petroleum Minister Ali Naimi said in the United Arab Emirates capital of Abu Dhabi. He was addressing the Arab Energy Conference, a gathering held every four years.

The price of US oil has dipped below $60 a barrel, its lowest in five years. Naimi said he was certain that the oil market would recover with the improvement of the global economy.

An OPEC meeting last month failed to agree on production cuts, mainly because of Saudi opposition to curb its own exports. OPEC controls about 40 per cent of the world oil market and Saudi Arabia is the cartel’s largest producer.

“A lack of cooperation by non-OPEC production nations, along with the spread of misinformation and speculator’s greed” have contributed to the drop in prices, Naimi added.

Some market speculators have suggested the kingdom is forcing lower prices to damage the economies of nations such as Russia and the Shiite powerhouse Iran, staunch backers of Syrian President Bashar Assad. Saudi Arabia backs the mainly Sunni rebels fighting to topple Assad.

Earlier this month, Iranian President Hassan Rouhani said the sharp fall in global oil prices was the result of “treachery”, a remark interpreted as a reference to Saudi Arabia.

“I want to say from this podium that talk about a Saudi conspiracy has no basis of accuracy at all and points to a misunderstanding,” Naimi said.

AMMAN — Overall Jordanian exports, including re-exports, during the first 10 months of 2014 reached JD4.9 billion marking an increase of 6.1 per cent compared with the same period in 2013, according to a foreign trade report released by the Department of Statistics (DoS) on Sunday. Domestic exports during the January-October period of 2014 increased by 8.1 per cent over the same period of last year to reach JD4.3 billion, the report e-mailed to The Jordan Times showed. Imports went up to JD13.4 billion, registering a 2.9 per cent increase in the first 10 months of 2014 compared with the same period of 2013. The DoS report also showed that the Kingdom’s trade deficit, the value imports exceeding those of exports, increased by 1.1 per cent during the January-October period of this year to JD8.4 billion at current prices. The DoS noted that the coverage ratio of total exports to imports has increased to 36.9 per cent from 35.8 per cent .

NEW DELHI — India's finance minister appealed to opposition parties Saturday to cooperate in passage of economic reform legislation, warning otherwise Asia's third largest economy "will miss the bus" again.

The traditionally fractious parliament has been stalled once more by political rows that have hindered efforts by the new rightwing government to enact reforms and revive the stuttering economy.

Stormy scenes in parliament under the previous left-leaning Congress government also hindered economic reform efforts. 

"The clear choice before us is either we reform or we miss the bus once again," Finance Minister Arun Jaitley told a top-level corporate audience in a speech in New Delhi.

"If the latter were to happen, a whole generation will not pardon us," Jaitley said.

He added there was a need for "a shared national vision" to get the country back to 9-10 per cent annual growth levels it enjoyed until a few years ago to lift hundreds of millions of Indians out of poverty.

India has been stuck in the longest spell of below 5 per cent growth in a quarter century, hit by high interest rates, an investment slowdown and flagging consumer confidence.

Economic growth in the last financial year to March 2014 was 4.7 per cent after falling to 4.5 per cent the previous year.

This year, the government hopes growth will accelerate to 5.5 per cent and next year "we have to first cross the 6 per cent mark", Jaitley said.

Growth downturns and uncertain investment landscapes in other parts of the world mean "investors are looking to come to India", Jaitley added.

But to capture this investment opportunity, India needs to slash red tape, liberalise the economy, speed decision making and become a more business friendly destination, analysts say.

"For the next decade we can have a full reform agenda on our table" if all sides get on board, Jaitley said.

Overseas investors have waited for years for India to overhaul its economy "and are confounded" by its failure.

"That is the challenge," he said and asked: "Can we allow this to continue?"

The minister's comments came a day after the government introduced in parliament tax changes which analysts hailed as a "game changer" that will cut the cost of doing business domestically and boost growth.

The government tabled the long-awaited goods-and-services tax (GST) harmonising varying state levies to create a single internal market.

The legislation will be debated in the next session of parliament and the government aims to implement the new tax in April 2016.

The government, led by Prime Minister Narendra Modi which was elected in May, is seeking to step up the pace of reforms after criticism from business it was not moving ahead swiftly enough.

Spelling out plans for the year ahead, Jaitley stressed that the government "is determined" to go ahead with liberalising the coal and insurance sectors to draw more investment.

He will present his first full budget in February.

The government is "absolutely clear about one fact — the [reform] course we've adopted is unalterable", he emphasised.

KUWAIT CITY — Gulf countries are bracing for tough times as vital oil revenues fall and after they missed a golden opportunity to diversify their economies in a decade of unprecedented windfalls, analysts say.

The six nations of the Gulf Cooperation Council (GCC) — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE) — could soon start reeling from falling oil prices, which have dropped by half from their 2014 highs to around $60 a barrel. 

Pumping about 17.5 million barrels per day, GCC countries are forecast to lose at least half their oil revenues, or around $350 billion a year, at current price levels.

Oil revenues make up around 90 per cent of income for most GCC states and with prices now below budget forecasts, their governments are looking at certain deficits next year.

Spending cuts are sure to follow — and possibly even the region's first taxes — raising fears of public discontent and eventually an economic slowdown.

The oil price drop has also sent Gulf stock prices plummeting, wiping out billions of dollars of market value across the region and hurting major private firms like developer Emaar Properties and builder Arabtec Holding.

According to leading Kuwaiti economist Jassem Al Saadun, the heart of the problem is that Gulf states failed to seize on surging energy revenues to build up their economies outside the oil sector.

"Gulf states have missed an important opportunity to reform and build a real diversified economy," Saadun said. 

"Public spending has soared to new record highs and it was not for vital infrastructure projects to diversify the economy," he indicated.  "It was mostly for wages, salaries and subsidies... and handouts for buying political loyalty especially after the Arab Spring."

Reserves only 'temporary cushion' 

Economists are warning that even with the huge reserves many have built up, a prolonged drop in oil prices will hit Gulf states hard.

"The prevailing growth model for most oil-exporting countries has left them vulnerable to a sustained decline in oil prices," the International Monetary Fund said in a research bulletin last week headlined: "It is high time to diversify".

Ratings agency Standard & Poor's (S&P) is warning that an extended decline in oil prices will likely slow the Gulf economies, reducing spending on their massive infrastructure projects and hitting the private sector.

S&P has lowered its outlooks for Saudi Arabia, Oman and Bahrain, though it has maintained their ratings because of their impressive reserves.

The IMF has said that — barring Oman and Bahrain, which are already in deficit — GCC states will not be greatly affected in the short-term as they can tap into reserves estimated at $2.5 trillion.

But these funds, the IMF warned, will "only provide a temporary cushion".

In some parts of the region, the belt-tightening has already begun.

Regional powerhouse Saudi Arabia has insisted it will maintain its high spending levels by tapping into reserves.

But Kuwait has ordered major spending cuts and is considering lifting petrol and electricity subsidies.

In the UAE, Dubai has announced plans to raise electricity and water charges. Similar measures are expected by other countries.

'Options are
no longer easy' 

According to Moody's Ratings, Gulf countries are likely to start with cuts in spending on "non-strategic investment projects" but will eventually face tough choices.

"Slowing or even reversing the growth in current government spending, including subsidy reforms, will be more difficult as governments seek to meet social welfare demands," the agency said.

As oil revenues in Gulf states surged from about $100 billion in 2000 to $729 billion last year, public spending grew from about $150 billion to $547 billion, according to IMF figures.

But the spending focused mostly on items like wages and subsidies, not crucial capital investment.

"Current expenditure has surpassed capital spending by miles," indicated M.R. Raghu, head of research at Kuwait Financial Centre (MARKAZ).

Cutting that spending now is difficult as it means taking courageous decisions on wage and subsidy reforms, experts say. 

The Gulf states have adopted a generous cradle-to-grave welfare system with highly subsidised services and fuel and no taxation.

The World Bank has urged GCC states to start immediate cuts to energy subsidies, which cost them more than $160 billion annually, and Saadun said it was "inevitable" they would have to start introducing taxes.

Such moves would prove deeply unpopular. But Saadun said putting them off would eventually make more drastic efforts necessary, which could spark the kind of social unrest that has hit other countries in the region.

"Yes, these measures are politically sensitive, but the alternative is an Arab Spring in the Gulf. Options are no longer easy," he added.

AMMAN — The "investment window" will officially be launched in mid-April 2015, Jordan Investment Commission (JIC) President Montaser Okla said Thursday. 

At the monthly meeting with presidents and chief executive officers of companies that operate free, industrial and development zones, Okla said the new investment law has positioned JIC as the sole reference for current and future investors, whether they are Jordanians, Arabs or foreigners. 

According to Okla, the role of developers in attracting investments and marketing Jordan internationally has been upgraded, as JIC’s monitoring and organisational tasks, in terms of investment operations and serving investors, have become stronger after the endorsement of the investment law.

He indicated that JIC is currently preparing a draft agreement that gives developers wider authority, especially in municipal undertakings, licensing and registration.

Such a step would ensure that JIC attract more investments from countries, companies or even individuals, he said, stressing that attracting investments should not be restricted to government.

He added that JIC will cover the entire Kingdom through specialised employees with offices in the governorates, or in chambers of industry and commerce.

Nasser Shraideh, chairman of the Jordanian Free Zones Corporation, commended the commission’s role in making the Kingdom a comprehensive regional centre enjoying  stability and security, and attracting more investments that add value to the national economy.