Saudi and British corporate giants sign $2bn deals

18 economic agreements were signed at the Saudi - UK CEO Forum. (Al-Ekhbariya)
Updated 09 March 2018
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Saudi and British corporate giants sign $2bn deals

LONDON: Some of the biggest corporate names from Saudi Arabia and the UK announced deals worth SR8 billion ($2.13 billion) in London yesterday.
About 18 agreements were signed as CEO’s from both countries gathered at a forum in London’s Mansion House which was part of a series of events arranged around a three-day official visit by Saudi Arabia’s Crown Prince Mohammed bin Salman.
The crown prince this week met with British Prime Minister Theresa May, Prince Charles and  senior government officials as both countries set out plans to build £65 billion ($90.29 billion) trade and investment ties in coming years. 
The move comes as both countries embark on radical new economic journeys — which in the case of Britain involves leaving the EU and for Saudi Arabia means framing a social and economic future that is no longer reliant on oil. 
The pair see a number of synergies emerging from both processes, underscored by the flurry of deals signed yesterday.
The Kingdom is also simplifying and speeding up the paperwork needed to establish businesses in an effort to stimulate the SME sector while also drawing in more external investment.
Among the new partnerships announced yesterday was a preliminary agreement between Saudi Aramco and Royal Dutch Shell. 
“It is a discussion that began some time ago and now we have signed a memorandum to work on gas projects from upstream to downstream across the world and in Saudi Arabia. Concrete projects would be announced in due course,” Shell CEO Ben van Beurden told Reuters after the signing ceremony. Other deals covered sectors that included health, investment, innovation and energy. 
The crown prince also met British finance minister Philip Hammond at the Saudi embassy in London, a government spokesperson said on Thursday.
The UK visit cheered investors on the Tadawul Saudi stock exchange which led gains in Gulf markets yesterday.
The UK and Saudi Arabia have long-standing business ties, with about 6,000 UK firms engaged in business with the Kingdom according to the Saudi British Joint Business Council.


Saudi Aramco Trading aims for 50% rise in oil trade volume in 2020

Updated 24 September 2018
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Saudi Aramco Trading aims for 50% rise in oil trade volume in 2020

  • About 50 percent of the 2.5 million bpd of oil products it trades currently are hedged
  • The company is also looking at building its capacity in trading liquefied natural gas

SINGAPORE: Saudi's Aramco Trading Company (ATC) expects to increase its oil trading volume to 6 million barrels per day (bpd) in 2020, 50 percent higher than current levels, the company's top official said on Monday.

"Currently ... we're at 4 million barrels per day and with expansion I think our target is 6 million barrels per day," President and Chief Executive Ibrahim Al-Buainain said at the Asia Pacific Petroleum Conference (APPEC).

About 50 percent of the 2.5 million bpd of oil products it trades currently are hedged, he said.

The company is also looking at building its capacity in trading liquefied natural gas (LNG), using its Singapore office as a trading hub, Buainain said.

ATC plans to set up its European office in either Geneva or London and also aims to have an office in Fujairah to manage oil storage, he said.

In Singapore, Buainain said he expects the company's office to grow to 30 to 40 people within the next two years.

ATC also expected to benefit from a switch by ships to cleaner fuels in 2020 as mandated by the International Maritime Organization.

"The second-hand effect of the IMO is the oversupply of high-sulphur fuel oil (HSFO) which in our case is a positive because we are net short on fuel oil and that will help us in meeting our requirements (for HSFO) in power generation," Buainain said.

Buainain has headed the trading arm of Saudi Aramco since 2016.

ATC was set up in 2012 to market refined products, base oils and bulk petrochemicals. It started trading non-Saudi crude oil and refined products from its overseas refineries in the past years as the world's largest oil exporter seeks to optimise profits.