Saudi Arabia, South Africa to Discuss Agreements on Technologies, Green Economy, Hydrogen

South Africa’s ambassador to Saudi Arabia, Mogobo David Magabe, speaks during an interview with Asharq Al-Awsat. (Photo: Ali Zaheri)
South Africa’s ambassador to Saudi Arabia, Mogobo David Magabe, speaks during an interview with Asharq Al-Awsat. (Photo: Ali Zaheri)
TT
20

Saudi Arabia, South Africa to Discuss Agreements on Technologies, Green Economy, Hydrogen

South Africa’s ambassador to Saudi Arabia, Mogobo David Magabe, speaks during an interview with Asharq Al-Awsat. (Photo: Ali Zaheri)
South Africa’s ambassador to Saudi Arabia, Mogobo David Magabe, speaks during an interview with Asharq Al-Awsat. (Photo: Ali Zaheri)

A senior South African diplomat said that negotiations were underway to sign cooperation agreements with Saudi Arabia that would cover various sectors, including agriculture, industry, green economy, climate and technology.

In an interview with Asharq Al-Awsat, South Africa’s ambassador to the Kingdom, Mogobo David Magabe, said that his country was determined to advance its agricultural, industrial and mining cooperation with Saudi Arabia in the coming period, along with the green economy, climate and technology.

He stressed that he was looking forward to the influx of large Saudi investments, especially in the energy sector.

Saudi Arabia maintains its position as the second largest export market for South Africa in the GCC region, after the UAE, with total bilateral trade approaching USD 40 billion in 2021, according to the ambassador.

He added that in 2021 total exports to the Kingdom amounted to USD 3.3 billion, while total imports reached USD 36.5 billion.

According to Magabe, South Africa and Saudi Arabia were renowned for their progress in the field of digital technologies; therefore bilateral cooperation in this field would further enhance this reputation.

“We are also exploring new areas of economic cooperation, especially in investment, agriculture, tourism, transportation, health, and the exchange of experiences in various fields such as mining,” he underlined.

The South African ambassador noted that his country and Saudi Arabia enjoyed strong bilateral relations at the strategic level, after the formalization of diplomatic ties in 1994.

He pointed to the role of the Joint Economic Commission (JEC) in driving the partnership between the two countries.

Magabe said that the most important South African exports to Saudi Arabia included edible fruits and nuts, citrus and melon peels, oilseeds and oleaginous fruits, organic compounds and chemicals, machinery and mechanical devices, nuclear reactors, boilers, aluminum and iron or steel equipment.

As for Saudi exports to South Africa, those include mineral fuels, mineral oils and distillation products, bituminous materials, plastics, fertilizers, organic chemicals, salt, sulfur, stone, plastering materials, cement, aluminum products, chemical products, inorganic chemicals, and organic or inorganic compounds from precious metals, rare earth metals and copper.

On the impact of the Russian-Ukrainian crisis on the economy, energy and food in his country, Magabe said: “South Africa has adopted a non-aligned position on the war and we continue to call for a peaceful solution. Indeed, the conflict has negatively affected the country’s economy and the average citizen in South Africa, especially with regard to the daily needs of food and energy.”



Libya to Offer Production Sharing Contracts under New Oil Bid Round

A view shows El Feel oil field near Murzuq, Libya, July 6, 2017. REUTERS/Aidan Lewis/File Photo
A view shows El Feel oil field near Murzuq, Libya, July 6, 2017. REUTERS/Aidan Lewis/File Photo
TT
20

Libya to Offer Production Sharing Contracts under New Oil Bid Round

A view shows El Feel oil field near Murzuq, Libya, July 6, 2017. REUTERS/Aidan Lewis/File Photo
A view shows El Feel oil field near Murzuq, Libya, July 6, 2017. REUTERS/Aidan Lewis/File Photo

Libya is set to offer 22 areas for oil exploration and development in its first such bidding round in more than 17 years, oil officials said on Monday, adding that deals will involve production sharing agreements.

The new bidding round, announced on March 3, comes as Africa's second-largest oil producer and member of the Organization of the Petroleum Exporting Countries (OPEC) seeks to raise its oil output.

National Oil Corporation (NOC) Chairman Massoud Suleman told an event for potential investors in London that areas on offer are split equally between onshore and offshore.

Libya's current crude production has reached about 1.4 million bpd, 200,000 bpd short of its pre-civil war high, according NOC. It aims to raise output further to 2 million bpd, Reuters reported.

Foreign investors have been wary of putting money in Libya, which has been in a state of chaos since the overthrow of Muammar Gaddafi in 2011. Disputes between armed rival factions over oil revenues have often led to oilfield shutdowns.

NOC Chairman Suleman told Reuters on the sidelines of the event that the round has already generated a lot of interest from international oil companies since it was launched in early March.

In January, Abdulsadek told Reuters the country needed between $3 billion and $4 billion in investment to reach output of 1.6 million bpd.

The bidding will involve acreage in some of the most prolific basins in the country, including the Sirte, Murzuq and Ghadamis basins as well as offshore Mediterranean, oil minister Khalifa Abdulsadek told Monday's event.

A presentation by other NOC officials showed the areas on offer will be under a Production Sharing Agreement model, replacing the more stringent EPSA IV model which Libya adopted under previous bid rounds and which offered fewer returns to investors.

NOC expects to sign the new contracts between November 22-30.