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Saudi Aramco to Prioritize Energy Supply to China for 50 Years, Says CEO

Saudi Aramco will ensure China’s energy security remains its highest priority for the next 50 years and beyond. (Reuters)
Saudi Aramco will ensure China’s energy security remains its highest priority for the next 50 years and beyond. (Reuters)
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Saudi Aramco to Prioritize Energy Supply to China for 50 Years, Says CEO

Saudi Aramco will ensure China’s energy security remains its highest priority for the next 50 years and beyond. (Reuters)
Saudi Aramco will ensure China’s energy security remains its highest priority for the next 50 years and beyond. (Reuters)

Saudi Aramco will ensure China’s energy security remains its highest priority for the next 50 years and beyond as new and existing energy sources run in parallel for some time, CEO Amin Nasser told the China Development Forum on Sunday.

Saudi Arabia, the world’s biggest oil exporter, retained its position as China’s top supplier in the first two months this year, with volumes up 2.1% to 1.86 million barrels per day (bpd), China customs data showed on Saturday.

The Kingdom beat Russia to keep its ranking as China’s top crude supplier in 2020 despite unprecedented production cuts in a pact between the Organization of the Petroleum Exporting Countries and its allies to balance global markets after demand plunged during the COVID-19 pandemic.

“Ensuring the continuing security of China’s energy needs remains our highest priority – not just for the next five years but for the next 50 and beyond,” Nasser said in a video speech.

“We appreciate that sustainable energy solutions are crucial to a faster and smoother global energy transition ... But, realistically, this will take some time since there are few alternatives to oil in many areas.”

Nasser told an earnings call earlier on Sunday that Chinese demand was very close to pre-pandemic levels while Asia, East Asia in particular, had seen a strong pickup.

Besides being a top supplier of China’s energy needs, Nasser said Aramco is also well-placed to help China achieve its second centennial goal in energy transition.

Chinese President Xi Jinping announced in September that China will bring its carbon emissions to a peak before 2030 and reach carbon neutrality by 2060, a pledge that is expected to create a tectonic shift in its energy and manufacturing sectors.

The state oil giant also expects opportunities for further investment in downstream projects to help to meet China’s needs for heavy transport and chemicals, as well as lubricants and non-metallic materials, Nasser said.

He added that Aramco is working with Chinese universities and companies in cleaner engine fuel systems and technologies to convert crude to chemicals and to reduce greenhouse gas emissions from existing energy sources.

“In fact, we have even bolder ambitions to expand and intensify our research collaboration with China,” Nasser said, adding that additional collaboration is likely on so-called blue hydrogen, ammonia and carbon-capture technologies among others.

Experts from China National Petroleum Corp’s (CNPC) research institute have forecast that China’s oil demand will be capped at 730 million tons by around 2025 under Xi’s climate pledge.

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Business

Riyadh Witnesses Completion of International Green Energy Alliance

Officials at the signing ceremony. (Asharq Al-Awsat)
Officials at the signing ceremony. (Asharq Al-Awsat)
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Riyadh Witnesses Completion of International Green Energy Alliance

Officials at the signing ceremony. (Asharq Al-Awsat)
Officials at the signing ceremony. (Asharq Al-Awsat)

Riyadh witnessed on Sunday the signing of an agreement between the Global Green Energy Alliance and the Saudi Ministry of Investment, which seeks to adopt the next generation projects for sustainable development and green energy.  

The agreement aims to facilitate the access of the alliance members to the Saudi market, support green energy projects, and reinforce the Kingdom’s plan to reach carbon neutrality.  

The coalition includes US and Chinese non-governmental organizations that share economic and environmental goals, and seek to build a new model for a sustainable, low-carbon future. 

The coalition works to implement “a practical path rather than political solutions”, based on concrete economic and social benefits.  

The delegation of the Global Alliance for Green Energy provided the concerned authorities with a number of proposals that strengthen joint efforts to build a superior manufacturing base in Saudi Arabia and to take advantage of the country’s geographic location and multi-field talents.  

The members of the alliance are working on projects that cover advanced long-term energy storage, such as the Energy Vault project, which is currently being completed in China, on the coast of the Yellow Sea. The project manages 14 cities and five regions.  

Abdullah bin Zaid Al-Meleihi, Chairman of Excellence Holding Company - the local partner of the Global Alliance for Green Energy - explained that the alliance aims to attract a large number of Chinese industrial companies to the Kingdom, to manufacture green energy materials and products, and produce green energy for the operation of factories.  

He stressed that the US-Saudi delegation held several meetings with Saudi authorities, including the Public Investment Fund, the Ministry of Investment and Aramco, where the Excellence Holding Company organized and provided advice and ways to comply with the specifications specified in the policy documents recently issued by the Kingdom.  

According to Al-Meleihi, the meetings with the US-Chinese delegation reviewed ways to transform the idea of the Global Green Energy Alliance into a reality from Riyadh, and to enhance joint cooperation between members of the alliance and official authorities in the field of industry, green energy projects and zero carbon emissions. 

Business

Saudi Arabia Raises Private Sector Efficiency by Accelerating Digital Procurement

Eng. Mansour Al-Obaid, Chairman of the Information and Communications Technology Committee at the Riyadh Chamber
Eng. Mansour Al-Obaid, Chairman of the Information and Communications Technology Committee at the Riyadh Chamber
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Saudi Arabia Raises Private Sector Efficiency by Accelerating Digital Procurement

Eng. Mansour Al-Obaid, Chairman of the Information and Communications Technology Committee at the Riyadh Chamber
Eng. Mansour Al-Obaid, Chairman of the Information and Communications Technology Committee at the Riyadh Chamber

Saudi Arabia has called on the private sector, specifically communications and information technology contractors, to join the Saudi Digital Investment Frontier (SDIF) to accelerate the pace of digital purchases in the next stage.

SDIF, which was launched last year by the Digital Government Authority (DGA), aims to enhance the means of joint work between the public and private sectors, increase the efficiency of the private sector’s participation in digital government projects, and encourage local and foreign investment in digital government.

According to official information, the DGA directed the Federation of Saudi Chambers to request communications and information technology contractors to call on all relevant companies and institutions to join the SDIF platform to enable them to win government tenders.

In remarks to Asharq Al-Awsat, Eng. Mansour Al-Obaid, Chairman of the Information and Communications Technology Committee at the Riyadh Chamber, underlined the importance for contractors to register on the platform in order to obtain a classification certificate approved by the Ministry of Municipal, Rural Affairs and Housing, and then access government procurement tenders.

He added that the benefits of the platform also include access to government procurement information, including tender notices, contract opportunities and supplier evaluation criteria.

Al-Obaid added that the main objectives of the program are to improve the efficiency of digital government procurement, by developing a central procurement platform that provides training and support to public entities, as well as increasing private sector participation in digital government projects to create a more favorable investment environment.

According to Obaid, SDIF also seeks to raise the work quality of providers and operators of digital government services, and to stimulate foreign and local investment.

The Saudi government launched the SDIF program to enhance investment and efficiency of government spending in the field of digital government, improve budget planning and avoid duplication of projects.

SDIF falls within the DGA’s initiatives aimed at leading the digital government of Saudi Arabia. It was announced during the first quarter of 2022.

The DGA has recently issued the Readiness to Adopt Emerging Technologies Report 2023, which measures capabilities related to “Research, Communication, Proof, and Integration.”

The report is designed to assist government agencies in determining their readiness levels, exploring gaps and optimization opportunities and providing plans for capacity building in a manner commensurate with requirements, as well as ensuring the achievement of desired benefits.

According to the report, the overall score for assessing the readiness of government agencies to adopt emerging technologies reached 60.35%, at the “Competent” level.

The participating agencies have shown progress in most of the capabilities related to adopting emerging technologies, as well as remarkable potential for excellence and achieving an integrated creative experience, the report added.

 

Business

Saudi Banks Launch Campaign to Raise Awareness on New Financial Fraud Methods

The Saudi Banks Media and Awareness Committee has launched an awareness campaign tackling the latest fraud methods. 
The Saudi Banks Media and Awareness Committee has launched an awareness campaign tackling the latest fraud methods. 
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Saudi Banks Launch Campaign to Raise Awareness on New Financial Fraud Methods

The Saudi Banks Media and Awareness Committee has launched an awareness campaign tackling the latest fraud methods. 
The Saudi Banks Media and Awareness Committee has launched an awareness campaign tackling the latest fraud methods. 

The Saudi Banks Media and Awareness Committee has launched an awareness campaign tackling the latest fraud methods.

The initiative, "Not normal", aims to expose new methods of financial fraud that exploit technological and social advances.

The initiative focuses on the most common fraud methods, which include impersonating a bank employee, defrauding through anonymous calls and exploiting people by demanding their banking or personal information, and defrauding customers through fake online stores and phishing.

The initiative aims to expose fraud when investing in digital currencies with unknown people or companies.

It targets emotional fraud when people are exploited through a friend request on social media. People can also be deceived through lucrative job offers that sound too good to be true.

The committee warned people to be careful. It advised them against answering telephone calls from unknown numbers where the caller asks for bank details. People must be wary of fake ads and suspicious messages. They must ignore text messages and emails from unknown senders and delete them immediately.

It called on bank customers to protect their accounts and funds by strictly dealing with official authorities.

It stressed the importance of protecting their personal information, bank data and passwords and pin numbers. Moreover, customers must avoid accepting requests for assistance from strangers when using an ATM.

Customers were advised to check the credibility of online shopping websites and travelers were urged to change the password of their bank cards periodically, especially when returning from travel.

Computers must be protected with virus and malware protection programs.

Business

Saudi Arabia Reduces Oil Production to 9 Million bdp to Support Market

Officials, including Saudi Energy Minister Prince Abdulaziz bin Salman (center), at the OPEC+ meeting in Vienna on Sunday. (Twitter)
Officials, including Saudi Energy Minister Prince Abdulaziz bin Salman (center), at the OPEC+ meeting in Vienna on Sunday. (Twitter)
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Saudi Arabia Reduces Oil Production to 9 Million bdp to Support Market

Officials, including Saudi Energy Minister Prince Abdulaziz bin Salman (center), at the OPEC+ meeting in Vienna on Sunday. (Twitter)
Officials, including Saudi Energy Minister Prince Abdulaziz bin Salman (center), at the OPEC+ meeting in Vienna on Sunday. (Twitter)

Saudi Arabia decided to voluntarily reduce its oil production by 1.5 million barrels per day, to the level of 9 million barrels per day, to support oil markets in light of the uncertainty surrounding the global economy.  

An official source in the Saudi Ministry of Energy said on Sunday that the additional voluntary cuts in the Kingdom’s oil production, by one million barrels per day, would take effect as of July and for a month that can be extended.  

During a meeting on Sunday, OPEC+ countries decided to adjust their production level to 40.4 million barrels per day, starting from January 2024 for a period of one year, and agreed to reduce oil production by 3.66 million barrels per day, announced Russian Deputy Prime Minister Alexander Novak.  

The new voluntary cut by Saudi Arabia comes in addition to the OPEC+ agreement. 

The Kingdom described the move as a “precautionary measure”, through which it will extend its voluntary cut of 500,000 barrels per day until the end of December 2024, in coordination with some countries participating in the OPEC+ agreement.  

UAE Minister of Energy Suhail Al Mazrouei immediately announced that his country would extend its voluntary reduction in oil production of 144,000 barrels per day until the end of December 2024.  

“The extension of the voluntary reduction in production comes in coordination with the countries participating in the OPEC+ agreement,” he stated.  

Iraq also announced its commitment to the voluntary cut of its oil production of 211,000 barrels per day. Oman and Algeria also decided to cut their production by 40,000 barrels and 48,000 barrels per day, respectively.  

Following Sunday’s meeting, Novak said his country would extend its voluntary cut in oil production of 500,000 barrels per day until the end of 2024.  

The cuts will be as a precautionary measure, in coordination with the countries participating in the OPEC+ agreement, which had previously announced voluntary cuts in April, he added.  

“This voluntary cut will be from the required production level, as agreed upon at the thirty-fifth ministerial meeting of OPEC+ on June 4, 2023,” Novak stressed.  

He underscored the ability to “adjust our decisions” to stabilize the oil market, referring to economic developments in China.  

“We are closely monitoring China's recovery from the repercussions of the COVID-19 pandemic,” he remarked.  

A press release posted on Sunday on the OPEC website stated that an agreement was reached to hold the OPEC+ ministerial meeting every six months. The next meeting will be held in Vienna on November 26. 

The Joint Ministerial Monitoring Committee was granted the authority to hold additional meetings, or to request a ministerial meeting for the group at any time to meet “market developments whenever necessary.”  

Business

Saudi Arabia, Egypt Sign MoU to Promote Exports, Automobile Industry

Egyptian Prime Minister Mostafa Madbouly chairs talks between the Egyptian side, headed by Minister of Industry Ahmed Samir, and his Saudi counterpart, Bandar al-Khorayef (Asharq Al-Awsat)
Egyptian Prime Minister Mostafa Madbouly chairs talks between the Egyptian side, headed by Minister of Industry Ahmed Samir, and his Saudi counterpart, Bandar al-Khorayef (Asharq Al-Awsat)
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Saudi Arabia, Egypt Sign MoU to Promote Exports, Automobile Industry

Egyptian Prime Minister Mostafa Madbouly chairs talks between the Egyptian side, headed by Minister of Industry Ahmed Samir, and his Saudi counterpart, Bandar al-Khorayef (Asharq Al-Awsat)
Egyptian Prime Minister Mostafa Madbouly chairs talks between the Egyptian side, headed by Minister of Industry Ahmed Samir, and his Saudi counterpart, Bandar al-Khorayef (Asharq Al-Awsat)

Egypt and Saudi Arabia signed on Sunday two memorandums of understanding (MoU) in developing non-oil exports and developing their automobile industries.

The Egyptian Minister of Trade and Industry, Ahmed Samir, and Saudi Minister of Industry and Mineral Resources, Bandar al-Khorayef, witnessed the signing of a memorandum of understanding between the Egyptian Export Development Authority and its Saudi counterpart.

The statement added that the two sides also witnessed the signing of a memorandum of understanding between the Valeo Egypt company and the Saudi National Industrial Development Center in developing the automotive industry.

Khorayef started an official visit to Egypt on Saturday as part of Saudi Arabia's keenness to enhance the role of the mining and industrial sectors.

Later, the Egyptian Prime Minister Mostafa Madbouly received the Saudi Minister of Industry.

They discussed ways to enhance industry cooperation and integration between Egypt and Saudi Arabia.

Madbouly noted the enormous potential and human resources that the two countries possess, adding that Egypt is a huge market and a gateway to the continent of Africa.

He stressed the importance of having an agreement between the two countries that enables the private sector to achieve integration and partnership in the supply and production chains.

During the meeting, Minister Samir noted that Egyptian officials held meetings with their Saudi counterparts. They agreed on a set of joint work issues in industry, namely the industrial integration between the two countries.

The Egyptian minister said that cooperation in specific sectors would improve in the next stage, including the food and drug security industries and promoting exports to African markets.

For his part, the Saudi Minister explained that the national industry strategy aims to create a competitive and sustainable industrial economy.

Saudi Arabia is looking forward to integration with Egypt in the industries identified by the strategy to achieve food and drug security and cooperation for optimal utilization and creation of added value in the petrochemical and mining industries and the automotive industry.

Khorayef said the visit to Egypt would include a tour of several industrial sites and meetings with the private sector.

 

Business

Iraq to Achieve Self-Sufficiency in Gas within 5-7 Years

Technicians working at the Majnoon oil field in Basra, Iraq. (Reuters)
Technicians working at the Majnoon oil field in Basra, Iraq. (Reuters)
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Iraq to Achieve Self-Sufficiency in Gas within 5-7 Years

Technicians working at the Majnoon oil field in Basra, Iraq. (Reuters)
Technicians working at the Majnoon oil field in Basra, Iraq. (Reuters)

Iraq will achieve self-sufficiency in gas within five to seven years, announced Oil Minister Hayyan Abdul-Ghani.

During an interview with Rudaw, Abdul-Ghani said Iraq might have a surplus of gas after it signed the fifth licensing round, which included five contracts and exploration blocks, all gas-producing in the range of 750 to 900 million cubic feet.

"Iraq is compliant with the Paris Agreement and the development of its gas in its entirety to stop the flaring of gas by 2030," he said, adding that the Ministry of Oil is keen to expedite the gas investment process.

"Today, we import large quantities of gas from our neighbor Iran, and we cannot continue to import gas while the gas in our fields is flared. The majority of gas available to us is associated gas, which comes from crude oil production," the Minister said.

"Within five years of activating the Total contract, there will be a stoppage of gas flaring from five oil fields," he said, as well as in other fields, such as Nahr Ibn Omar, which is covered in a contract to invest more than 150 million cubic feet.

Turning to oil, the minister said the objective was to fix and stabilize prices at around $80 per barrel.

Abdul-Ghani noted that Iraq would abide by previous oil production reductions. The first reduction took place at the beginning of the year, and the second in May.

The oil ministry in April announced that it was reducing production by 211,000 barrels per day starting from May and effective until the end of 2023, adding to the two million barrels per day cut already in effect since November of last year.

The minister renewed his country's position in preserving the unity and cohesion of the OPEC organization to maintain oil prices and ensure the availability of oil in global markets to meet energy needs.

Business

Turkish Lira Slips Despite Appointment of Well-Regarded Finance Minister 

People walk in the Egyptian Bazaar, in Istanbul, Türkiye, Tuesday, May 30, 2023. (AP)
People walk in the Egyptian Bazaar, in Istanbul, Türkiye, Tuesday, May 30, 2023. (AP)
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Turkish Lira Slips Despite Appointment of Well-Regarded Finance Minister 

People walk in the Egyptian Bazaar, in Istanbul, Türkiye, Tuesday, May 30, 2023. (AP)
People walk in the Egyptian Bazaar, in Istanbul, Türkiye, Tuesday, May 30, 2023. (AP)

Türkiye's lira slid almost 1% on Monday in thin trading during the Asian day to weaken past 21 per dollar, in a shaky initial reaction to the appointment of highly-regarded Mehmet Simsek as finance minister.

The lira hit 21.1 to the dollar, not far above a record low of 21.8 made last week.

Simsek, 56, won markets' confidence during terms as finance minister and deputy prime minister between 2009 and 2018. He said on Sunday the country has no choice but to return to "rational ground".

His appointment is seen as a signal that President Recep Tayyip Erdogan's newly-elected government is moving away from unorthodox interest rate cuts in the face of high inflation that sent the lira on a long decline.

"The hope is that he (Simsek) could instigate much-needed economic orthodoxy and engage with the market more effectively," said Mohammed Elmi, senior portfolio manager for emerging markets fixed income at Federated Hermes.

Türkiye's annual consumer price inflation hit a 24-year peak beyond 85% last year, and stood at 44% in April in a sign that further monetary tightening was required, according to Elmi.

"A simple return to credible economic policy could see a marked change in Turkey's investment appeal," he said.

"The long-term outlook for Türkiye is still very much a positive one ... a young population, a burgeoning middle class, and a country that occupies a key strategic location, it has a number of factors in its favor."

Business

Saudi Arabia’s TGA Participates in UITP Global Public Transport Summit

SPA
SPA
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Saudi Arabia’s TGA Participates in UITP Global Public Transport Summit

SPA
SPA

The International Association of Public Transport (UITP) inaugurated on Sunday in Barcelona, Spain, the UITP Global Public Transport Summit, with the participation of the Kingdom of Saudi Arabia’s Transport General Authority (TGA).

The TGA was represented at the Summit by the Authority’s Vice-President for the Regulatory Sector, Eng. Fawaz Al-Sahli; the Authority’s Undersecretary for Land Transport Sector, Abdulmajeed Al-Tasan; and General Director of the Authority’s Studies and Transport Economics, Rayan Alhazmi.

The opening ceremony witnessed the holding of the General Assembly of the UITP, in which a number of issues were discussed, including the adoption of the minutes and results of the 2022 General Assembly as well as the 2023 budget and its work plan.

It also witnessed the election of the President of the UITP for the term 2023-2025, in addition to honoring graduates of the Diploma of Public Transport Managers, which included three officials of the Saudi TGA.

The UITP Global Public Transport Summit’s activities will include the launch of an exhibition, which will last until the 7th of June, with the participation of a number of entities and those interested in the public transport sector, under the theme of ‘Bright Light of the City’.

Business

Saudi Arabia Says Will Implement Additional Voluntary Cut in Oil Production

FILE - The logo of the Organization of the Petroleoum Exporting Countries (OPEC) is seen outside of OPEC's headquarters in Vienna, Austria, on March 3, 2022. (AP Photo/Lisa Leutner, File)
FILE - The logo of the Organization of the Petroleoum Exporting Countries (OPEC) is seen outside of OPEC's headquarters in Vienna, Austria, on March 3, 2022. (AP Photo/Lisa Leutner, File)
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Saudi Arabia Says Will Implement Additional Voluntary Cut in Oil Production

FILE - The logo of the Organization of the Petroleoum Exporting Countries (OPEC) is seen outside of OPEC's headquarters in Vienna, Austria, on March 3, 2022. (AP Photo/Lisa Leutner, File)
FILE - The logo of the Organization of the Petroleoum Exporting Countries (OPEC) is seen outside of OPEC's headquarters in Vienna, Austria, on March 3, 2022. (AP Photo/Lisa Leutner, File)

An official source in the Saudi Energy Ministry announced on Sunday that the Kingdom will implement an additional voluntary cut in its production of crude oil, amounting to one million barrels per day, starting in July for a month, which could be extended further.

The announcement of Saudi cuts of one million barrels per day are in addition to what was agreed upon in the OPEC+ meeting on Sunday for the required production level for each country for 2024, and what the OPEC+ countries had previously announced in April in terms of voluntary cuts until the end of 2023 and extended their voluntary cuts until the end of 2024, the source said.

The Kingdom’s production would become 9 million barrels per day, and its total voluntary cut will be 1.5 million barrels per day, said the source.

The source explained that the Kingdom's additional voluntary cut comes to reinforce the precautionary efforts made by OPEC+ countries with the aim of supporting the stability and balance of oil markets.

Business

Abu Dhabi-listed AD Ports Group Inks 25-Year Deal with Singapore’s Crystal Offshore

Under the agreement’s terms, a 20,000-square-meter plot of land and an associated quay wall in Khalifa Port will be allocated for Crystal Offshore to construct a base. WAM
Under the agreement’s terms, a 20,000-square-meter plot of land and an associated quay wall in Khalifa Port will be allocated for Crystal Offshore to construct a base. WAM
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Abu Dhabi-listed AD Ports Group Inks 25-Year Deal with Singapore’s Crystal Offshore

Under the agreement’s terms, a 20,000-square-meter plot of land and an associated quay wall in Khalifa Port will be allocated for Crystal Offshore to construct a base. WAM
Under the agreement’s terms, a 20,000-square-meter plot of land and an associated quay wall in Khalifa Port will be allocated for Crystal Offshore to construct a base. WAM

AD Ports Group has signed a 25-year agreement with Singapore based Crystal Offshore, a recognized one-stop Logistics Solution provider to the Marine & Offshore Industry.

Under the agreement’s terms, a 20,000-square-meter plot of land and an associated quay wall in Khalifa Port will be allocated for Crystal Offshore to construct a base, featuring office facilities and fabrication workshops to provide advanced repairs and refits to jack-up rigs as well as marine and offshore vessels.

Saif Al Mazrouei, Chief Executive Officer, Ports Cluster – AD Ports Group, said: “Our partnership with one of the world’s leading solution providers in the marine and offshore industry, will add significant value to Khalifa Port’s customers and greatly expand the numerous services it offers to cater to the wide base of the marine industry.”

“As we look towards the future, we will continue our drive to further diversify the service offerings in our ports in the UAE and abroad. We aim to achieve this by forging strong partnerships such as the one we are entering into with Crystal Offshore, ensuring that we remain the global port operator of choice for our customers.”

CEO of Crystal Offshore Sujith Sekharan hailed the partnership with AD Ports Group with a view to deliver services to the oil and gas industry in the Middle East region.

“We have a strong track record with contractors in the region, and with this long-term partnership we anticipate significant and fast growth of our market share, greatly assisted by the geographical proximity and excellent infrastructure that Khalifa Port has to offer. We share the vision of AD Ports Group and look forward to complementing one another through our expertise and capabilities,” he said.

The new shipyard fabrication facility situated within Khalifa Port will cater for drilling rigs and marine assets as well as deep water vessels such as FPSO and semi submersibles.