Saudi Arabia’s Grain Corporation to Become General Food Security Authority

In July 2021, Saudi Arabia completed the final stage of the flour milling sector privatization. (Asharq Al-Awsat)
In July 2021, Saudi Arabia completed the final stage of the flour milling sector privatization. (Asharq Al-Awsat)
TT

Saudi Arabia’s Grain Corporation to Become General Food Security Authority

In July 2021, Saudi Arabia completed the final stage of the flour milling sector privatization. (Asharq Al-Awsat)
In July 2021, Saudi Arabia completed the final stage of the flour milling sector privatization. (Asharq Al-Awsat)

The Saudi Council of Ministers decided to transform the Saudi Grains Organization (SAGO) into the General Food Security Authority (GFSA), and approved the draft organizational arrangements for the entity.

The move came to confirm the government’s keenness to maintain the security of the food sector, in light of the recent challenges caused by the Russian-Ukrainian crisis, which impacted prices of food and commodities.

SAGO is considered one of the first sectors targeted by the Saudi government’s privatization program. In July 2021, the National Center for Privatization announced the sale of the second and fourth mill companies, the final stage of the process of privatizing the flour production sector.

The award of each milling company was decided based on the highest financial bids submitted by qualified strategic investors.

Since the beginning of the global food crisis, the Saudi government has taken measures to ensure the availability of basic commodities.

Last year, Custodian of the Two Holy Mosques King Salman bin Abdulaziz issued a directive approving the allocation of 20 billion riyals ($5.3 billion) to address the repercussions of rising global prices, including 10 billion ($2.6 billion) for beneficiaries of social security and the Citizen’s Account program.

Crown Prince Mohammad bin Salman bin Abdulaziz has also emphasized the necessity to help the most needy citizens in the face of the rise in prices, during his presidency of the meeting of the Council of Economic and Development Affairs at As-Salam Palace in Jeddah last year.

The Crown Prince underlined the important role of the relevant ministries and government agencies in monitoring developments regarding supply chains, product abundance and price levels, as well as protecting and encouraging fair competition, and combating and preventing monopoly that affects legitimate competition and the interest of the consumer.



BP Nears Deals for Oil Fields, Curbs on Gas Flaring in Iraq

British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)
British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)
TT

BP Nears Deals for Oil Fields, Curbs on Gas Flaring in Iraq

British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)
British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)

Iraq and British oil giant BP are set to finalize a deal by early February to develop four oil fields in Kirkuk and curb gas flaring, Iraqi authorities announced Wednesday.

The mega-project in northern Iraq will include plans to recover flared gas to boost the country's electricity production, they said.

Gas flaring refers to the polluting practice of burning off excess gas during oil drilling. It is cheaper than capturing the associated gas.

The Iraqi government and BP signed a new memorandum of understanding in London late Tuesday, as Prime Minister Mohammed Shia al-Sudani and other senior ministers visit Britain to seal various trade and investment deals.

"The objective is to enhance production and achieve optimal targeted rates of oil and gas output," Sudani's office said in a statement.

Iraq's Oil Minister Hayan Abdel Ghani told AFP after the new accord was signed that the project would increase the four oil fields' production to up to 500,000 barrels per day from about 350,000 bpd.

"The agreement commits both parties to sign a contract in the first week of February," he said.

Ghani noted the project will also target gas flaring.

Iraq has the third highest global rate of gas flaring, after Russia and Iran, having flared about 18 billion cubic meters of gas in 2023, according to the World Bank.

The Iraqi government has made eliminating the practice one of its priorities, with plans to curb 80 percent of flared gas by 2026 and to eliminate releases by 2028.

"It's not just a question of investing and increasing oil production... but also gas exploitation. We can no longer tolerate gas flaring, whatever the quantity," Ghani added.

"We need this gas, which Iraq currently imports from neighboring Iran. The government is making serious efforts to put an end to these imports."

Iraq is ultra-dependent on Iranian gas, which covers almost a third of Iraq's energy needs.

However, Teheran regularly cuts off its supply, exacerbating the power shortages that punctuate the daily lives of 45 million Iraqis.

BP is one of the biggest foreign players in Iraq's oil sector, with a history of producing oil in the country dating back to the 1920s when it was still under British mandate.

According to the World Bank, Iraq has 145 billion barrels of proven oil reserves -- among the largest in the world -- amounting to 96 years' worth of production at the current rate.