Saudi Aramco set to sign China’s Yunnan refinery deal

Updated 24 August 2017
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Saudi Aramco set to sign China’s Yunnan refinery deal

Saudi Aramco is expected to sign a final deal with PetroChina, China’s second-largest state-run refiner, within six months to invest in its Yunnan refinery, Saudi Arabia’s Energy Minister Khalid Al-Falih told Reuters on Wednesday.
The world’s top oil exporter aims to push ahead with its oil investments in China to become the country’s biggest source of crude supply and a major player, Falih said.
“Yunnan (talks) have reached advanced stages. We aim to finalize Yunnan within six months,” Falih, who is also the chairman of Aramco, said.
Aramco will own a “big stake” in the 260,000-barrel per day Anning plant in Yunnan province, he added.
Aramco is looking to invest $1 billion-$1.5 billion in the refinery as well as the retail assets of PetroChina, sources told Reuters in 2015.
PetroChina aims to start operating the new refinery in October after several delays, boosting the nation’s already-surging crude imports.
PetroChina will also will consider taking part in Aramco’s initial public offering (IPO) set for next year based on market conditions, the Chinese oil major said in March.
A PetroChina official told Reuters in March that if the refinery deal was finalized with Aramco, the Saudi state oil giant would supply at least part of the refinery’s crude oil requirements.
Falih said Saudi Arabia aims to break the slow pace in the progress of Saudi projects in China and push for more investments between the two nations.
“The goal is that not only the Kingdom will be China’s largest crude exporter but the largest in-market investor,” Falih said.
In May, Chinese defense conglomerate China North Industries Group Corp. (Norinco) signed a framework agreement with Aramco to build a refinery and chemicals complex in northeast China.
That investment would boost Aramco’s presence in China’s massive refining industry, adding to its 25 percent stake in the Fujian refinery in southeast China.
— REUTERS


Abu Dhabi aims to lure start-ups with investment in new technology hub

Updated 24 March 2019
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Abu Dhabi aims to lure start-ups with investment in new technology hub

  • The initiative will help Abu Dhabi reduce reliance on oil
  • Mubadala hopes to attract Chinese and Indian companies

ABU DHABI: Abu Dhabi will commit up to $272 million to support technology start-ups, it said on Sunday, in a dedicated hub as part of efforts to diversify its economy.

US tech giant Microsoft will be a strategic partner, providing technology and cloud services to the businesses that join the hub as the capital of the United Arab Emirates continues its push to reduce reliance on oil revenue.
Abu Dhabi derives about 50 percent of its real gross domestic product and about 90 percent of central government revenue from the hydrocarbon sector, according to ratings agency S&P.
The emirate launched a $13.6 billion stimulus fund, Ghadan 21, in September last year to accelerate economic growth. Ghadan means tomorrow in Arabic. The new initiative, named Hub 71, is linked to Ghadan will also involve the launch of a $136 million fund to invest in start-ups, said Ibrahim Ajami, head of Mubadala Ventures, the technology arm of Mubadala Investment Co.
The goal is to have 100 companies over the next three to five years, Ajami said. “The market opportunities in this region are immense,” he added.
Mubadala, with assets of $225 billion and a big investor in tech companies, will act as the driver of the hub, located in the emirate’s financial district.
Softbank will be active in the hub and support the expansion of companies in which it has invested, Ajami said, adding that Mubadala is also aiming to attract Chinese and Indian companies, among others.
Mubadala which has committed $15 billion to the Softbank Vision Fund, plans to launch a $400 million fund to invest in leading European technology companies.
Incentives mapped out by the government include housing, office space and health insurance as part of the $272 million commitment, Ajami said.
Abu Dhabi will also announce a new research and development initiative on Monday linked to the Ghadan 21 plan, according to an invitation sent to journalists.