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Saudi Arabia’s Ma'aden Agrees to Acquire SABIC Stake in Aluminium Bahrain

The Ma'aden headquarters in Riyadh. Asharq Al-Awsat
The Ma'aden headquarters in Riyadh. Asharq Al-Awsat
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Saudi Arabia’s Ma'aden Agrees to Acquire SABIC Stake in Aluminium Bahrain

The Ma'aden headquarters in Riyadh. Asharq Al-Awsat
The Ma'aden headquarters in Riyadh. Asharq Al-Awsat

Saudi Arabian Mining Company (Ma'aden), the region's largest multi-commodity metals and mining company, has agreed to acquire SABIC's 20.62% share in Aluminium Bahrain (ALBA), the company said in a statement.

This move is part of Ma'aden's broader strategy to pursue regional growth opportunities across its business, it said.

According to the statement, the acquisition is a key element of Ma'aden's expansion plans, which aim to increase the company's aluminium business tenfold by 2040. This ambitious growth strategy highlights the pivotal role of aluminium in Ma'aden's future development.

The announcement follows recent news that Ma'aden and Aluminium Bahrain (ALBA) have signed non-binding Heads of Terms to explore the potential creation of a major global aluminium entity in the region.

Ma'aden has also revealed its plans to consolidate its aluminium operations through a Share Purchase and Subscription Agreement with its long-term partner, Alcoa. Under this agreement, Alcoa's shares in Ma'aden Aluminium Company (MAC) and Ma'aden Bauxite and Alumina Company (MBAC) will be exchanged for shares in Ma'aden.

"As we continue to grow, acquiring shares in a well-established regional and global aluminium player strongly supports our ambitions,” said Ma'aden CEO Bob Wilt.

“This week, we have announced several transactions that align with our strategic intent to strengthen and expand our business regionally and internationally, further developing mining as the third pillar of the Saudi economy,” he added.

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BP Nears Deals for Oil Fields, Curbs on Gas Flaring in Iraq

British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)
British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)
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BP Nears Deals for Oil Fields, Curbs on Gas Flaring in Iraq

British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)
British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)

Iraq and British oil giant BP are set to finalize a deal by early February to develop four oil fields in Kirkuk and curb gas flaring, Iraqi authorities announced Wednesday.

The mega-project in northern Iraq will include plans to recover flared gas to boost the country's electricity production, they said.

Gas flaring refers to the polluting practice of burning off excess gas during oil drilling. It is cheaper than capturing the associated gas.

The Iraqi government and BP signed a new memorandum of understanding in London late Tuesday, as Prime Minister Mohammed Shia al-Sudani and other senior ministers visit Britain to seal various trade and investment deals.

"The objective is to enhance production and achieve optimal targeted rates of oil and gas output," Sudani's office said in a statement.

Iraq's Oil Minister Hayan Abdel Ghani told AFP after the new accord was signed that the project would increase the four oil fields' production to up to 500,000 barrels per day from about 350,000 bpd.

"The agreement commits both parties to sign a contract in the first week of February," he said.

Ghani noted the project will also target gas flaring.

Iraq has the third highest global rate of gas flaring, after Russia and Iran, having flared about 18 billion cubic meters of gas in 2023, according to the World Bank.

The Iraqi government has made eliminating the practice one of its priorities, with plans to curb 80 percent of flared gas by 2026 and to eliminate releases by 2028.

"It's not just a question of investing and increasing oil production... but also gas exploitation. We can no longer tolerate gas flaring, whatever the quantity," Ghani added.

"We need this gas, which Iraq currently imports from neighboring Iran. The government is making serious efforts to put an end to these imports."

Iraq is ultra-dependent on Iranian gas, which covers almost a third of Iraq's energy needs.

However, Teheran regularly cuts off its supply, exacerbating the power shortages that punctuate the daily lives of 45 million Iraqis.

BP is one of the biggest foreign players in Iraq's oil sector, with a history of producing oil in the country dating back to the 1920s when it was still under British mandate.

According to the World Bank, Iraq has 145 billion barrels of proven oil reserves -- among the largest in the world -- amounting to 96 years' worth of production at the current rate.