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ADNOC and Pertamina Cooperate in Oil, Gas Development Projects

FILE PHOTO: An Emirati man is seen near the logo of ADNOC in Ruwais, United Arab Emirates May 14, 2018. Picture taken May 14, 2018.REUTERS/Christopher Pike
FILE PHOTO: An Emirati man is seen near the logo of ADNOC in Ruwais, United Arab Emirates May 14, 2018. Picture taken May 14, 2018.REUTERS/Christopher Pike
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ADNOC and Pertamina Cooperate in Oil, Gas Development Projects

FILE PHOTO: An Emirati man is seen near the logo of ADNOC in Ruwais, United Arab Emirates May 14, 2018. Picture taken May 14, 2018.REUTERS/Christopher Pike
FILE PHOTO: An Emirati man is seen near the logo of ADNOC in Ruwais, United Arab Emirates May 14, 2018. Picture taken May 14, 2018.REUTERS/Christopher Pike

The Abu Dhabi National Oil Company, ADNOC, has signed a Comprehensive Strategic Framework, CSF, with Indonesia’s energy company, PT Pertamina, Persero, to explore opportunities for collaboration across the oil and gas value chain in the United Arab Emirates, Indonesia and globally.

As part of the CSF, ADNOC and Pertamina will evaluate collaboration opportunities across the upstream, midstream and downstream sectors. The scope of projects under consideration includes participation in the UAE’s upstream oil and gas sector, as well as refining and petrochemicals, LNG, LPG, aviation fuel and fuel retail opportunities in Indonesia.

In addition, the two partners will explore other forms of strategic collaboration with respect to opportunities across transportation, trading and storage in the UAE, Indonesia and globally.

The signing of the agreement took place in the presence of Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Force and Joko Widodo, President of Indonesia.

Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and Nicke Widyawati, President Director and CEO of Pertamina signed the agreement.

Pertamina is the state-owned energy company of Indonesia. The company operates an integrated business in the energy sector in Indonesia and is expanding its overseas presence. The company produces and distributes energy products such as fuel, lubricants, LPG, LNG, and petrochemicals. Currently, Pertamina owns six oil refineries in Indonesia with a combined production capacity of 1.1 million barrels of oil per day (mmbpd). At the same time, the company is developing renewable energy from many potential resources in the country.

Al Jaber said, "Indonesia has a thriving industrial base and is a rapidly growing market for energy. We see significant opportunity for collaboration between our two companies and the development of projects that meet our joint strategic objectives."

He added, "This collaboration with Pertamina further demonstrates ADNOC’s drive to unlock value from across our entire portfolio and our ambition to expand our international investments to become a truly global energy company."

Nicke Widyawati said, "Pertamina plans to develop an additional 1 mmbpd of refining capacity through the Refinery Development Master Plan (RDMP) and Grass Root Refineries (GRR) projects. Therefore, partnership with ADNOC will be an important milestone for Pertamina to secure energy supplies from overseas. ADNOC’s interest to participate in Indonesia’s oil and gas landscape is monumental to support Pertamina in ensuring the availability and accessibility of energy for Indonesian people."

Working groups from each side will be meeting over the coming months to evaluate and shortlist key areas for strategic collaboration across both companies’ extensive asset and project portfolios. It is expected that specific collaboration options will be agreed for execution by the end of 2019.

This new partnership marks another step in ADNOC’s group-wide transformation and value creation program that addresses the evolving energy and petrochemicals landscape and ensures ADNOC remains a resilient and flexible company able to take full advantage of emerging market opportunities and trends. The Group’s transformation is driven by an expanded approach to strategic partnerships and co-investments as well as the more proactive management of ADNOC’s portfolio of businesses, assets and capital.

As for Pertamina, the collaboration supports its ambition to embark into the global energy arena and acts as a stepping stone to achieve greater competitiveness to compete with international energy players.

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Trump Set to Lead Largest-Ever US Delegation to World Economic Forum in Davos Next Week

This photograph shows a sign of the World Economic Forum (WEF) at the Congress center, during the WEF annual meeting in Davos on January 20, 2025. (AFP)
This photograph shows a sign of the World Economic Forum (WEF) at the Congress center, during the WEF annual meeting in Davos on January 20, 2025. (AFP)
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Trump Set to Lead Largest-Ever US Delegation to World Economic Forum in Davos Next Week

This photograph shows a sign of the World Economic Forum (WEF) at the Congress center, during the WEF annual meeting in Davos on January 20, 2025. (AFP)
This photograph shows a sign of the World Economic Forum (WEF) at the Congress center, during the WEF annual meeting in Davos on January 20, 2025. (AFP)

US President Donald Trump will return to the World Economic Forum's annual meeting of business, political and cultural elites in Davos, Switzerland next week, leading a record-large US delegation, organizers said Tuesday.

The Geneva-based think tank says Trump, whose assertive foreign policy on issues as diverse as Venezuela and Greenland in recent months has stirred concerns among US friends and foes alike, will be accompanied by five Cabinet secretaries and other top officials for the event running from Monday through Jan. 23.

A total of 850 CEOs and chairs of the world's top companies will be among the 3,000 participants from 130 countries expected in the Alpine resort this year, the forum says.

Forum President Borge Brende says six of seven G7 leaders — including Trump — will attend, as well as presidents Volodymyr Zelenskky of Ukraine, Ahmed al-Sharaa of Syria and others. A total of 64 heads of state or government are expected so far — also a record — though that number could increase before the start of the event, he said.

China's delegation will be headed by Vice Premier He Lifeng, Beijing's top trade official, Brende said.

The forum, which held its first annual meeting in 1971, has long been a hub of dialogue, debate and deal-making. Trump has already attended twice while president and was beamed in by video last year just days after being inaugurated for his second term.

Critics call it a venue for the world’s elites to hobnob and do business that sometimes comes at the expense of workers, the impoverished or people on the margins of society. The forum counters that its stated goal is “improving the state of the world” and insists many advocacy groups, academics and cultural leaders have an important role too.

Business

World Bank: Global Economy Shows Resilience Amid Historic Trade, Policy Uncertainty

A woman places coins inside a red wallet in Germany. (dpa)
A woman places coins inside a red wallet in Germany. (dpa)
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World Bank: Global Economy Shows Resilience Amid Historic Trade, Policy Uncertainty

A woman places coins inside a red wallet in Germany. (dpa)
A woman places coins inside a red wallet in Germany. (dpa)

The global economy is proving more resilient than anticipated despite persistent trade tensions and policy uncertainty, according to the World Bank’s latest Global Economic Prospects report. Global growth is projected to remain broadly steady over the next two years, easing to 2.6% in 2026 before rising to 2.7% in 2027, an upward revision from the June forecast.

The resilience reflects better-than-expected growth, especially in the United States, which accounts for about two-thirds of the upward revision to the forecast in 2026. Even so, if these forecasts hold, the 2020s are on track to be the weakest decade for global growth since the 1960s. The sluggish pace is widening the gap in living standards across the world, the report finds: at the end of 2025, nearly all advanced economies enjoyed per capita incomes exceeding their 2019 levels, but about one in four developing economies had lower per capita incomes.

In 2025, growth was supported by a surge in trade ahead of policy changes and swift readjustments in global supply chains. These boosts are expected to fade in 2026 as trade and domestic demand soften. However, the easing global financial conditions and fiscal expansion in several large economies should help cushion the slowdown, according to the report. Global inflation is projected to edge down to 2.6% in 2026, reflecting softer labor markets and lower energy prices. Growth is expected to pick up in 2027 as trade flows adjust and policy uncertainty diminishes.

“With each passing year, the global economy has become less capable of generating growth and seemingly more resilient to policy uncertainty,” said Indermit Gill, the World Bank Group’s Chief Economist and Senior Vice President for Development Economics. “But economic dynamism and resilience cannot diverge for long without fracturing public finance and credit markets.”

“Over the coming years, the world economy is set to grow slower than it did in the troubled 1990s, while carrying record levels of public and private debt. To avert stagnation and joblessness, governments in emerging and advanced economies must aggressively liberalize private investment and trade, rein in public consumption, and invest in new technologies and education.”

In 2026, growth in developing economies is expected to slow to 4% from 4.2% in 2025 before edging up to 4.1% in 2027 as trade tensions ease, commodity prices stabilize, financial conditions improve, and investment flows strengthen. Growth is projected to be higher in low-income countries, reaching an average of 5.6% over 2026-27, buoyed by firming domestic demand, recovering exports, and moderating inflation. However, this will not be sufficient to narrow the income gap between developing and advanced economies.

Per capita income growth in developing economies is projected to be 3% in 2026 - about a percentage point below its 2000-2019 average. At this pace, per capita income in developing economies is expected to be only 12% of the level in advanced economies.

These trends could intensify the job-creation challenge confronting developing economies, where 1.2 billion young people will reach working age over the next decade. Overcoming the jobs challenge will require a comprehensive policy effort centered on three pillars.

The first is strengthening physical, digital, and human capital to raise productivity and employability. The second is improving the business environment by enhancing policy credibility and regulatory certainty so firms can expand. The third is mobilizing private capital at scale to support investment. Together, these measures can help shift job creation toward more productive and formal employment, supporting income growth and poverty alleviation.

In addition, developing economies need to bolster their fiscal sustainability, which has been eroded in recent years by overlapping shocks, growing development needs, and rising debt-servicing costs. A special-focus chapter of the report provides a comprehensive analysis of the use of fiscal rules by developing economies, which set clear limits on government borrowing and spending to help manage public finances. These rules are generally linked to stronger growth, higher private investment, more stable financial sectors, and a greater capacity to cope with external shocks.

“With public debt in emerging and developing economies at its highest level in more than half a century, restoring fiscal credibility has become an urgent priority,” said M. Ayhan Kose, the World Bank Group’s Deputy Chief Economist and Director of the Prospects Group.

“Well-designed fiscal rules can help governments stabilize debt, rebuild policy buffers, and respond more effectively to shocks. But rules alone are not enough: credibility, enforcement, and political commitment ultimately determine whether fiscal rules deliver stability and growth.”

More than half of developing economies now have at least one fiscal rule in place. These can include limits on fiscal deficits, public debt, government expenditures, or revenue collection. Developing economies that adopt fiscal rules typically see their budget balance improve by 1.4 percentage points of GDP after five years, once interest payments and the ups and downs of the business cycle are accounted for.

Use of fiscal rules also increases by 9 percentage points the likelihood of a multi-year improvement in budget balances. However, the medium- and long-term benefits of fiscal rules depend heavily on the strength of institutions, the economic context in which the rules are introduced, and how the rules are designed, the report finds.

Business

Saudi Industry Minister Discusses Automotive Manufacturing Cooperation with China's BYD

The Saudi and Chinese delegations meet in Riyadh on Tuesday. (SPA)
The Saudi and Chinese delegations meet in Riyadh on Tuesday. (SPA)
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Saudi Industry Minister Discusses Automotive Manufacturing Cooperation with China's BYD

The Saudi and Chinese delegations meet in Riyadh on Tuesday. (SPA)
The Saudi and Chinese delegations meet in Riyadh on Tuesday. (SPA)

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held talks in Riyadh on Tuesday with Chinese company BYD Founder and Chairman Wang Chuanfu to discuss cooperation in automotive manufacturing and the transfer of advanced vehicle technologies to the Kingdom.

They explored ways to strengthen industrial cooperation and expand promising investment opportunities to localize the automotive industry in the Kingdom, with particular focus on electric vehicle manufacturing to meet growing domestic demand and reinforce Saudi Arabia’s position as a leading regional and global hub for automotive production.

Discussions tackled the incentives and enablers offered to investors in high-value industries, including the automotive sector, as well as the Kingdom’s significant investments in electric vehicle charging infrastructure.

The meeting highlighted the objectives of the comprehensive strategy for the mining and mineral industries, which emphasizes support for the electric vehicle ecosystem and the development of local supply chains for battery manufacturing and advanced materials.

These efforts help in localizing the automotive industry and advancing the goals of Saudi Vision 2030 to diversify the national economy.