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Experts: Launch of ‘Boutique Group’ Enhances Tourism Gains by Reviving Heritage

Photo shows the newly announced Boutique Group logo against the backdrop of a luxurious-looking building. January 20, 2022. (PIF)
Photo shows the newly announced Boutique Group logo against the backdrop of a luxurious-looking building. January 20, 2022. (PIF)
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Experts: Launch of ‘Boutique Group’ Enhances Tourism Gains by Reviving Heritage

Photo shows the newly announced Boutique Group logo against the backdrop of a luxurious-looking building. January 20, 2022. (PIF)
Photo shows the newly announced Boutique Group logo against the backdrop of a luxurious-looking building. January 20, 2022. (PIF)

Saudi Arabia’s Crown Prince Mohammed bin Salman has unveiled ‘Boutique Group’ to develop historical palaces into luxury boutique hotels, the Kingdom’s Public Investment Fund (PIF) announced on Thursday.

Boutique Group is a “a new hospitality brand that will manage and convert a collection of iconic historic and cultural palaces in Saudi Arabia into ultra-luxury boutique hotels.

The company will revive the vibrant heritage and culture of Saudi Arabia to create a new and unique hospitality experience,” the PIF announced in a statement on Thursday.

Specialists assured Asharq Al-Awsat that the project enhances the Kingdom’s tourism level both regionally and internationally.

They indicated that PIF is witnessing qualitative leaps in terms of projects that aim to diversify the country’s sources of income.

Majed Al Hokair, General Manager and CEO of Abdul Mohsin Al Hokair Company, told Asharq Al-Awsat that the launch of the Boutique Group by the Crown Prince is an important step towards enhancing tourism in Saudi Arabia.

It does so by offering unique quality projects that enable visitors to have a different and attractive experience that reflects the country’s position as a leading tourist and cultural destination.

Hokair added that PIF is moving towards its goals in launching mega projects that contribute to the development of the local economy and diversify the country’s sources of income.

Developing historical and cultural palaces in Saudi Arabia and transforming them into ultra-luxury boutique hotels is an important step to diversify the opportunities that the tourism market enjoys, Hokair clarified.

The CEO pointed out that this experience exists in many countries of the world and has the advantage of living in historical sites, while at the same time reviving heritage places that reflect the authentic Saudi character.

The first phase of the project will focus on the development of three palaces including al-Hamra Palace in Jeddah, Tuwaiq Palace and Red Palace in Riyadh.

Al-Hamra Palace will reportedly offer 77 keys, including 33 luxury palace suites and 44 luxury villas in Jeddah. Tuwaiq Palace will provide 96 keys of 40 luxury palace suites and 56 luxury villas. Whereas Red Palace will offer 71 keys, including 46 luxury suites, and 25 luxury guest rooms.

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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.