KSA to maintain crude production capacity

Updated 09 June 2016
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KSA to maintain crude production capacity

RIYADH: Saudi Arabia will maintain the same level of crude production capacity until 2020 under the National Transformation Program (NTP).
Saudi Arabia will keep output capacity at 12.5 million barrels a day in 2020, according to a draft of the NTP.
The program calls for the country to produce 4 percent of its power from renewable energy sources in 2020 and cut electricity and water subsidies by SR200 billion ($53 billion).
“They’ll either have to cut crude exports or they’ll be pumping closer to full capacity,” Robin Mills, CEO at consultant Qamar Energy in Dubai, said in a Bloomberg report. Saudi Arabia’s production capacity is the biggest in the world, said Mills, a fellow at the Brookings Institution in Doha.
Deputy Crown Prince Mohammed bin Salman announced earlier this year a plan to overhaul the nation’s economy to make it less dependent on oil revenue amid a plunge in prices due to a global glut.
The plan includes selling shares in Saudi Aramco by the end of 2018 in an initial public offering that could value the company at about $2 trillion.
Saudi Arabia pumped 10.27 million barrels a day of oil in April, data compiled by Bloomberg show.
Output reached a record 10.57 million barrels a day in July, and the country has produced more than 10 million barrels in each of the last 14 months.
Saudi Arabia has the second-biggest crude reserves after Venezuela and more than double the deposits in Russia,


No Canadians: Air France unions want French CEO

Updated 16 August 2018
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No Canadians: Air France unions want French CEO

PARIS: Trade unions at Air France called Thursday for the company to name a French chief executive amid reports that the board is set to nominate Canadian Ben Smith at the helm of the group.
Nine out of ten unions issued a joint statement saying it was “inconceivable that the Air France company, French since 1933, falls into the hands of a foreign executive whose candidacy is being promoted by a competitor.”
The statement appeared to be referring to Delta Airlines, the US airline which owns 8.8 percent of the capital of Air France-KLM, the parent group formed out of the merger of Air France and KLM of the Netherlands in 2004.
The union statement, which said the new boss needed “intimate knowledge ... of the French social model,” said that the board was expected to hold a teleconference on Thursday to discuss the nomination.
The Franco-Dutch airline has been searching for a new boss since Jean-Marc Janaillac resigned in May, having gambled his job on getting Air France staff to accept a new pay deal after months of strikes.
Smith is Air Canada’s chief operating officer who led labor negotiations with pilots’ and flight attendants’ unions ahead of the launch of low-cost operator Air Canada Rouge.
Such experience might come in useful at Air France-KLM, which has suffered months of disruptive and costly strikes by French staff demanding better salaries.
He was tipped to emerge as the new boss of the airline by France’s leftwing Liberation newspaper on Wednesday.
Air France shares have plunged more than 35 percent since the start of the year, although they have stabilized since Janaillac’s departure.
The group this month estimated the cost of the 15 days of French strikes between February and June at €335 million ($391 million).