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Riyadh Air to Purchase ‘Narrowbody’ Jets in Coming Weeks

Riyadh Air, the new Saudi air carrier (Asharq Al-Awsat)
Riyadh Air, the new Saudi air carrier (Asharq Al-Awsat)
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Riyadh Air to Purchase ‘Narrowbody’ Jets in Coming Weeks

Riyadh Air, the new Saudi air carrier (Asharq Al-Awsat)
Riyadh Air, the new Saudi air carrier (Asharq Al-Awsat)

Riyadh Air will announce a deal to purchase a “sizeable” number of "narrowbody" aircraft in the coming weeks, announced CEO Tony Douglas.

Douglas told Reuters in an interview on Monday, "We have concluded our narrowbody campaign," he said in an interview in London on Monday. "I think we will probably announce it within the coming weeks."

Riyadh Air had ordered 72 Boeing 787 widebody jets, and these will be followed by narrowbodies, according to Douglas.

- Strategic agreement

Also, Riyadh Air and IBM signed a strategic agreement for consulting services.

IBM Consulting will be the lead systems integrator to support creating, building, and orchestrating the technology foundation that can help the digitally native airline to offer exceptional and seamless travel experiences.

Riyadh Air and IBM Consulting have already created the airline's digital and technology strategy.

The airline selected IBM Consulting to support building the key business and technology capabilities that underpin the strategy.

It includes implementing and integrating over 50 airline industry solutions and core technology capabilities, including security, infrastructure, integration, and data platforms, using a hybrid cloud approach.

IBM will also orchestrate the work of over 40 partners by providing program and technical governance, project management, quality assurance, change and communications management, and training.

- Enabling digital innovations

According to the information released, the collaboration is expected to help position Riyadh Air strategically within the broader ecosystem to offer digital innovations and exceptional experiences for travelers and guests.

The airline aims to create a world-class airline with a personalized and seamless guest experience powered by AI and state-of-the-art digital technology, taking obsessive care of details that make memorable micro-moments across the traveler's journey.

Chief Financial Officer Adam Boukadida said the company aims to launch its first flight in 2025, putting Riyadh Air at the cutting edge of digital technology and innovation within the aviation industry, adopting the best international sustainability and safety practices to deliver an exceptional travel experience, for its guests locally and internationally.

"IBM Consulting will be our principal partner driving us towards our vision with their deep expertise in managing large complex systems and integration programs as well as their expertise in the travel industry," Boukadida added.

- Hybrid cloud

For his part, Senior Vice President John Granger explained that a technology foundation built with an open, hybrid cloud approach and AI can help achieve the flexibility and agility needed to support the goal of delivering an exceptional travel experience for Riyadh Air customers.

Granger said: "We're proud to be Riyadh Air's partner and help them bring this new era of the Kingdom's aviation industry to life."

The technology and digital strategy of Riyadh Air will support its mission in line with Vision 2030 for leadership in the aviation sector by transforming it into a global center for aviation and trade.

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Chevron Announces First Oil at Ballymore Project in Gulf of Mexico  

The logo and trading information for Chevron is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, US, June 27, 2022. (Reuters)
The logo and trading information for Chevron is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, US, June 27, 2022. (Reuters)
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Chevron Announces First Oil at Ballymore Project in Gulf of Mexico  

The logo and trading information for Chevron is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, US, June 27, 2022. (Reuters)
The logo and trading information for Chevron is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, US, June 27, 2022. (Reuters)

Chevron has started oil and gas production from a project in the US Gulf of Mexico, the oil major said on Monday, bringing the company a step closer toward its goal of growing production from the ocean basin by 50% this year.

The $1.6 billion project called Ballymore, located about 160 miles southeast of New Orleans, is composed of three wells that are expected to produce up to 75,000 barrels of oil per day.

Chevron aims to grow oil and gas production from the Gulf to 300,000 barrels of oil equivalent per day in 2026, and at the same time, it is working to cut up to $3 billion in costs across the business.

Instead of building a new production platform for Ballymore, the wells will transport oil and gas back to an existing platform, which the company said will allow it to increase production at less expense.

“Ballymore is interesting in that it's a tie-back to an existing facility, which has allowed us to bring production to market more quickly,” said Bruce Niemeyer, president of Americas exploration and production, in an interview.

The project is also Chevron's first in a geological formation of the Gulf called Norphlet, where the oil and gas industry has historically had fewer discoveries than in other parts of the ocean basin, he added.

Advancements in technology are key to expanding resource exploration, such as the use of ocean bottom nodes, which allow geophysicists to collect better data underneath the ocean floor, Niemeyer said.

Chevron is the operator of Ballymore with a 60% interest, while co-owner TotalEnergies has 40%.

Ballymore holds an estimated 150 million barrels of oil equivalent in potentially recoverable resources.

The company owns 370 leases in the Gulf of Mexico and expects to participate in a lease sale this year by US President Donald Trump's administration, Niemeyer said.

The Ballymore start-up comes after Chevron announced first oil in August at Anchor, a Gulf of Mexico project that is a technological breakthrough with the ability to operate in deepwater pressures of up to 20,000 pounds per square inch.