German institutions turning from equities to alternatives – Universal survey

first_imgCurrently, the exposure to alternative investments is below 3% in the majority of portfolios of the surveyed institutions, which included Pensionskassen, Versorgungswerke, insurers, foundations and banks managing around €300bn in total assets.Universal pointed out that nearly one-third of respondents wanted to up their quota by more than 300 basis points.At the same time, the interest in real assets such as real estate and infrastructure remained strong, but only 31% said they wanted to increase investments in those segments compared with 43% last year.All in all, the surveyed institutions remained pessimistic about the global economic outlook, with 78% saying the financial crisis is not over yet five years on.More than 60% noted quantitative easing helped to buy time but did not solve structural problems, and they did not expect either the US Fed or the ECB to cut rates over the medium term. German institutions do not see an end of the low-interest rate environment any time soon and are planning to up their exposures to alternatives, a survey by Universal Investment has found.Among the 90 German institutions polled by the asset manager, 70% want to increase their exposure to alternatives, and 29% said they were looking at investments in private equity and loans.In a similar survey last year, only one-fifth of respondents were looking into alternatives, while one-third planned to increase their equities quotas.This year, the trend is reversed and “growing stronger”, Universal said.last_img read more

ExxonMobil in New Discovery on Stabroek Block in Guyana

first_imgExxonMobil has increased its estimated recoverable resource base in Guyana to more than 8 billion oil equivalent barrels and made a further oil discovery northeast of the producing Liza field at the Uaru exploration well, the 16th discovery on the Stabroek Block.The new recoverable resource estimate includes 15 discoveries offshore Guyana through year-end 2019. The Uaru discovery is the first of 2020 and will be added to the resource estimate at a later date.“With recent high-quality finds at Tripletail and Mako contributing to our recoverable resources, our investments will continue to provide benefits for the people of Guyana,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil. “The Uaru discovery is another positive step as we begin a new decade with the Co-operative Republic of Guyana and our co-venturers.”Uaru encountered approximately 29 meters of high-quality oil-bearing sandstone reservoir. The well, drilled in 1,933 meters of water, is located approximately 16 kilometers northeast of the Liza field, which began producing oil in December 2019.Production from the Liza Phase 1 development is currently ramping up and will produce up to 120,000 barrels of oil per day in the coming months, utilizing the Liza Destiny floating production storage and offloading vessel (FPSO).The Liza Unity FPSO, which will be employed for the second phase of Liza development and will have a production capacity of 220,000 barrels of oil per day, is under construction and expected to start production by mid-2022.Pending government approvals and project sanctioning of a third development, production from the Payara field north of the Liza discoveries could start as early as 2023, reaching an estimated 220,000 barrels of oil per day.Four drillships in Guyana continue to explore and appraise new resources as well as develop the resources within approved projects. A fifth drillship is expected to be deployed later this year.The Stabroek Block is 26,800 square kilometers. ExxonMobil affiliate Esso Exploration and Production Guyana is the operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration, holds 30 percent interest and CNOOC Petroleum Guyana, a wholly-owned subsidiary of CNOOC, holds 25 percent interest.last_img read more