Citigroup returns to Saudi Arabia: ‘Right place, right market, right time’

Citigroup is returning to Saudi Arabia after leaving the Kingdom in 2004, It is just one of a number of multinationals making a return to the Kingdom. (Reuters)
Updated 17 April 2018
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Citigroup returns to Saudi Arabia: ‘Right place, right market, right time’

Dubai: Citigroup, the American financial giant that quit Saudi Arabia in 2004, yesterday put the seal on its return to the Kingdom with a formal opening ceremony in Riyadh.
The re-entry could be lucrative for the bank, which will be able to play a full role in the financial opportunities presented by the Vision 2030 plan to transform the economy, including a big program of sovereign bond debt issuance and privatizations.
Mike Corbat, Citi’s group CEO, attended the ceremony alongside Ibrahim Al-Omar, the governor of the Saudi Arabian General Investment Authority.
Al-Omar said: “You are at the heart of Arab markets and the biggest market in the region, where Saudi Arabia connects three continents. Vision 2030 is not possible without partners, and you are our very welcome partners. Citi will be able to take part in a privatization program that will see, between now and 2030, up to 100 opportunities. There are other opportunities, too, especially in the entertainment sector. You are in the right place in the right market at the right time.”
Corbat said: “We are delighted to establish an office in the Kingdom and be open for business on the ground. The expansion to Saudi is in line with our strategy to be present in the region’s biggest economy and contribute to its transformation.
“Citi continues to support the Kingdom’s national agenda for a diverse and sustainable economy and we aim to play a key role toward realizing this vision,” he added.
Some Citi executives admitted the 2004 withdrawal was “a mistake,” and for the past two years the bank has played a central role in the big sovereign bond issuance program.
Last year, the Saudi Arabian Capital Market Authority (CMA) granted Citi a license to provide a range of investment banking and capital market business.
Citi executives have said they could also look to get a license from the Saudi Arabian Monetary Authority, which would enable it to also offer trade banking and treasury services.
At the Riyadh ribbon-cutting ceremony at the bank’s new offices in Kingdom Tower, Citi, through its Foundation arm, also handed over a $300,000 cheque to renew its partnership with Education for Employment Global, a Washington DC-based non-profit organization that helped train and find employment for 67,000 young people in the region.


BP and SOCAR sign new Azeri oil deal

Updated 19 April 2019
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BP and SOCAR sign new Azeri oil deal

  • The Azeri Central East (ACE) platform, the latest phase of Azerbaijan’s giant Azeri-Chirag-Guneshli (ACG) oilfields extension program, is expected to produce 100,000 barrels of oil a day
  • BP and the government of Azerbaijan extended their agreement to continue developing the ACG fields until 2050 in a major deal in 2017

BAKU: Oil major BP and Azerbaijan’s state energy company SOCAR signed an agreement on Friday to build a new exploration platform for the South Caucasus nation’s three major oilfields, BP-Azerbaijan said in a statement.
The Azeri Central East (ACE) platform, the latest phase of Azerbaijan’s giant Azeri-Chirag-Guneshli (ACG) oilfields extension program, is expected to produce 100,000 barrels of oil a day and cost $6 billion to build, the company said.
The project is one of the biggest upstream investment decisions to have been signed in Azerbaijan so far this year.
The ACG fields, which to date have produced around 3.5 billion barrels of oil, are estimated to have the potential to yield another 3 billion barrels.
BP’s main aim now would be to maximize the extraction of remaining reserves, Robert Morris, senior analyst at Wood Mackenzie, said in a statement.
“ACE is central to those plans, adding 100,000 barrels per day of production at peak in the mid-2020s,” he said.
BP and the government of Azerbaijan extended their agreement to continue developing the ACG fields until 2050 in a major deal in 2017.
Separately, SOCAR and its partners at the BP-led ACG consortium plan to participate in a tender to acquire stakes being sold by two of its members, ExxonMobil and Chevron.
SOCAR President Rovnag Abdullayev made the announcement to reporters following a meeting of senior SOCAR figures on Friday.