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Aramco Awards Offshore Security Contract to General Dynamics

A General Dynamics sign is shown at the International Association of Chiefs of Police conference in San Diego, California, U.S. October 17, 2016. (File Photo - Reuters)
A General Dynamics sign is shown at the International Association of Chiefs of Police conference in San Diego, California, U.S. October 17, 2016. (File Photo - Reuters)
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Aramco Awards Offshore Security Contract to General Dynamics

A General Dynamics sign is shown at the International Association of Chiefs of Police conference in San Diego, California, U.S. October 17, 2016. (File Photo - Reuters)
A General Dynamics sign is shown at the International Association of Chiefs of Police conference in San Diego, California, U.S. October 17, 2016. (File Photo - Reuters)

Saudi Aramco signed a contract with Arab subsidiary of US General Dynamics IS&T to increase security at its offshore facilities.

Aramco’s vice president for project management Fahad al-Helal said the company operates major assets in the Arabian Gulf, including the world’s largest offshore field. He added that it continues to expand its offshore operations to meet increasing demand.

"Maintaining the safety and security of these assets will support Saudi Aramco’s objective to remain a reliable supplier of oil and gas,” he said.

Meeting the project’s targets and objectives is very important, especially in relation to Saudization and In-Kingdom Total Value Add requirements in support of the local economy and Vision 2030, according to Helal.

In July, the contract involves installing long-range integrated security systems at nine offshore sites in the Gulf, Reuters reported industry sources as saying.

Earlier, Aramco received bids from other defense firms, including Raytheon Co of the United States, Germany’s Rheinmetall AG, Leonardo’s Selex ES Saudi Arabia. The value of the contract was not disclosed but sources told Reuters that General Dynamics will work with Saudi Binladin Group.

Saudi Aramco has been signing deals with foreign firms who have established local manufacturing as part of its in-kingdom total value add program (IKTVA), where Aramco aims to double the percentage of locally-produced energy-related goods and services to 70 percent by 2021.

Aramco also wants to export 30 percent of the total domestic energy goods and services produced in the Kingdom within that same time frame.

In a brief statement posted on the "Arabian Sun" magazine issued by Aramco, Helal added that the project supports such an initiative.

In November, Aramco signed eight agreements, of $4.5 million value in total, with several oil and gas service contractors for projects to enhance the company’s energy sustainability, diversify the economy, expand gas production, and localize domestic content.

Aramco also announced earlier that it was considering investing in producing 600,000 barrels per day at the Zuluf offshore field by building new facilities. In addition, it plans to increase its gas production from 16 billion cubic feet to 20 billion cubic feet by the year 2021, as part of the company's plan to reach 23 billion cubic feet by the year 2025.

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US-China Set to Meet with Extension of Tariff Pause on the Cards

A US delegation including Treasury Secretary Scott Bessent (C) is set to meet a Chinese team led by Vice Premier He Lifeng in Stockholm, to pursue tariff talks. MARTIAL TREZZINI / FDFA/AFP/File
A US delegation including Treasury Secretary Scott Bessent (C) is set to meet a Chinese team led by Vice Premier He Lifeng in Stockholm, to pursue tariff talks. MARTIAL TREZZINI / FDFA/AFP/File
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US-China Set to Meet with Extension of Tariff Pause on the Cards

A US delegation including Treasury Secretary Scott Bessent (C) is set to meet a Chinese team led by Vice Premier He Lifeng in Stockholm, to pursue tariff talks. MARTIAL TREZZINI / FDFA/AFP/File
A US delegation including Treasury Secretary Scott Bessent (C) is set to meet a Chinese team led by Vice Premier He Lifeng in Stockholm, to pursue tariff talks. MARTIAL TREZZINI / FDFA/AFP/File

Top economic officials from the United States and China are set to renew negotiations Monday -- with an extension of lower tariff levels on the cards -- as President Donald Trump's trade policy enters a critical week.

Talks between the world's top two economies are slated to happen over two days in the Swedish capital Stockholm, and they come as other countries are also rushing to finalize deals with Washington.

For dozens of trading partners, failing to strike an agreement in the coming days means they could face significant tariff hikes on exports to the United States come Friday, August 1.

The steeper rates, threatened against partners like Brazil and India, would raise the duties their products face from a "baseline" of 10 percent now to levels up to 50 percent.

Tariffs imposed by the Trump administration have already effectively raised duties on US imports to levels not seen since the 1930s, according to data from The Budget Lab research center at Yale University.

For now, all eyes are on discussions between Washington and Beijing as a delegation including US Treasury Secretary Scott Bessent meets a Chinese team led by Vice Premier He Lifeng in Sweden.

While both countries in April imposed tariffs on each other's products that reached triple-digit levels, US duties this year have temporarily been lowered to 30 percent and China's countermeasures slashed to 10 percent.

But the 90-day truce, instituted after talks in Geneva in May, is set to expire on August 12.

Since the Geneva meeting, the two sides have convened in London to iron out disagreements.

China progress?

"There seems to have been a fairly significant shift in (US) administration thinking on China since particularly the London talks," said Emily Benson, head of strategy at Minerva Technology Futures.

"The mood now is much more focused on what's possible to achieve, on warming relations where possible and restraining any factors that could increase tensions," she told AFP.

Talks with China have not produced a deal but Benson said both countries have made progress, with certain rare earth and semiconductor flows restarting.

"Secretary Bessent has also signaled that he thinks a concrete outcome will be to delay the 90-day tariff pause," she said. "That's also promising, because it indicates that something potentially more substantive is on the horizon."

The South China Morning Post, citing sources on both sides, reported Sunday that Washington and Beijing are expected to extend their tariff pause by another 90 days.

Trump has announced pacts so far with the European Union, Britain, Vietnam, Japan, Indonesia and the Philippines, although details have been sparse.

An extension of the US-China deal to keep tariffs at reduced levels "would show that both sides see value in continuing talks", said Thibault Denamiel, a fellow at the Centre for Strategic and International Studies.

US-China Business Council President Sean Stein said the market is not anticipating a detailed readout from Stockholm: "What's more important is the atmosphere coming out."

"The business community is optimistic that the two presidents will meet later this year, hopefully in Beijing," he told AFP. "It's clear that on both sides, the final decision-maker is going to be the president."

Sweden's Prime Minister Ulf Kristersson said both countries' willingness to meet was a "positive development".

Far from ideal

For others, the prospect of higher US tariffs and few details from fresh trade deals mark "a far cry from the ideal scenario", said Denamiel.

But they show some progress, particularly with partners Washington has signaled are on its priority list like the EU, Japan, the Philippines and South Korea.

The EU unveiled a pact with Washington on Sunday while Seoul is rushing to strike an agreement, after Japan and the Philippines already reached the outlines of deals.

Breakthroughs have been patchy since Washington promised a flurry of agreements after unveiling, and then swiftly postponing, tariff hikes targeting dozens of economies in April.

Denamiel warned of overlooking countries that fall outside Washington's priority list.

Solid partnerships are needed, he said, if Washington wants to diversify supply chains, enforce advanced technology controls, and tackle excess Chinese capacity.