ACWA Power Unveils Plans to Localize Renewable Energy Sector in Saudi Arabia

The localization rate at the “Sakaka" Photovoltaic Solar Energy Project has reached nearly 100%. (Asharq Al-Awsat)
The localization rate at the “Sakaka" Photovoltaic Solar Energy Project has reached nearly 100%. (Asharq Al-Awsat)
TT
20

ACWA Power Unveils Plans to Localize Renewable Energy Sector in Saudi Arabia

The localization rate at the “Sakaka" Photovoltaic Solar Energy Project has reached nearly 100%. (Asharq Al-Awsat)
The localization rate at the “Sakaka" Photovoltaic Solar Energy Project has reached nearly 100%. (Asharq Al-Awsat)

ACWA Power has declared its continued dedication to localizing the renewable energy sector in Saudi Arabia through extensive plans and strategies aligned with the Kingdom’s goal of meeting 50% of its energy needs with clean energy by 2030.

Saudi Arabia has undertaken the construction of numerous mega projects, including solar and wind power stations, which stand as the world’s largest. This significant leap aligns with the country's pledge to reduce greenhouse gas emissions, achieve carbon neutrality by 2050, and combat climate change.

According to the General Authority for Statistics, Saudi Arabia is a youthful nation, with 63% of its citizens under the age of 30.

Despite this demographic, the Kingdom achieved the fastest-growing economy within the G20 group in 2022, according to the International Monetary Fund (IMF).

The renewable energy industry worldwide is undergoing a pivotal turning point, fueled by Saudi Arabia’s ambitious aspirations to lead the energy transition. Consequently, investing in national human capital has become a crucial element in developing and implementing future energy solutions to achieve these objectives.

For its part, ACWA Power confirmed its dedication to keeping pace with this development.

Mohammad Abunayyan, chairman of ACWA Power, emphasized the value that young national energies add to one of the world’s fastest-growing economies.

“We recognize our responsibility towards our young national energies and the immense potential they possess,” said Abunayyan.

“Therefore, we are working on their training, promoting values, developing essential skills, and nurturing the knowledge that empowers them to lead the future of the clean energy and water sectors,” he added.

ACWA Power reiterated its commitment to supporting youth development in line with the goals of Saudi Vision 2030 and contributing to the diversification of the country’s economy.

It aims to play an active role in driving the realization of this vision by prioritizing the empowerment of young men and women and investing in programs that nurture their talents.



Iraq, BP Agree to Develop Four Kirkuk Fields

The logo of British multinational oil and gas company BP is displayed at their booth during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. (Reuters)
The logo of British multinational oil and gas company BP is displayed at their booth during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. (Reuters)
TT
20

Iraq, BP Agree to Develop Four Kirkuk Fields

The logo of British multinational oil and gas company BP is displayed at their booth during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. (Reuters)
The logo of British multinational oil and gas company BP is displayed at their booth during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. (Reuters)

Iraq and oil major BP have signed a deal to redevelop four Kirkuk oil and gas fields, BP said on Tuesday, a breakthrough for Iraq, where output has been constrained by years of war, corruption and sectarian tensions.

The signing comes a day before BP plans to update investors on its strategy and is widely expected to reduce investments in renewable energy and shift back to invest more in oil and gas.

BP is expected to spend up to $25 billion over the lifetime of the project, a senior Iraqi oil official told Reuters in early February.

Under the terms of the agreement, which is subject to final ratification by Iraq's government, BP will work with North Oil Co.(NOC), North Gas Co. (NGC) and the new operator to stabilize and grow production, BP said.

Work will include a drilling program, the rehabilitation of existing wells and facilities, and the construction of new infrastructure, including gas expansion projects, it added.

BP said its remuneration will be linked to incremental production volumes, price and costs and will be able to book a share of production and reserves proportionate to the fees it earns for helping to increase production.

BP would boost crude production capacity from the four oilfields in Kirkuk by 150,000 barrels per day (bpd) to raise total capacity to at least 450,000 bpd in 2-3 years, according to a senior Iraqi oil official.

Tuesday's signing came after the two parties agreed on "technical issues and contractual terms, including the economic model of the project," according to a statement from the Iraqi prime minister office.

The BP deal is focused on rehabilitating facilities in four oilfields and developing natural gas to support Iraq's domestic energy needs.

BP was a member of the consortium of oil companies that discovered oil in Kirkuk in the 1920s. BP has estimated that the Kirkuk field holds about 9 billion barrels of recoverable oil.

The company holds a 50% stake in a joint venture operating the giant Rumaila oilfield in the south of the country, where it has been operating for a century.