Hyundai Heavy discusses joint project with Saudi minister

Updated 02 July 2016
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Hyundai Heavy discusses joint project with Saudi minister

SEOUL: Hyundai Heavy Industries (HHI) is expected to enjoy another boost with its joint construction projects building turbine engine plants and shipyards in Saudi Arabia.
Korea Times reported that HHI Chairman Choi Gil-seon and President Kwon Oh-gap met Saudi Energy Minister Khalid Al-Falih in Seoul to discuss joint operations between HHI and Saudi Aramco.
Khalid Al-Falih is also chairman of Saudi Aramco.
Experts believe the meeting is expected to help the struggling shipyard’s efforts in normalizing its management if they deliver detailed outcomes over the projects.
Last November, HHI signed a general memorandum of understanding (MoU) with Saudi Aramco to jointly collaborate on business development opportunities in Saudi Arabia.
Under the agreement, HHI secured a bid preference over ships ordered by the Saudi government as well as the maintenance contract.
Chung Ki-sun, senior vice president of HHI Corporate Planning and also a grandson of Hyundai Group founder Chung Ju-yung, reportedly played a leading role behind the MoU deal with Saudi Aramco.
Saudi Aramco Chairman Khalid Al-Falih wa appointed as Saudi Energy Minister in May last year.
He also met Trade, Industry and Energy Minister Joo Hyung-hwan after the meeting with HHI officials.
Al-Falih earlier said Saudi Arabia wants to expand its investments in China’s energy industry as part of efforts to boost cooperation with a top customer.
Al-Falih’s comments were made in an e-mailed statement after discussions with China’s Vice Premier Zhang Gaoli and other officials in Beijing during a G20 ministerial meeting.
“Saudi Arabia is very keen to elevate their partnership in the energy sector to the highest level,” he was quoted as saying in the statement, published in Reuters.
He said he hoped Saudi investments could increase to cover all Chinese provinces and that there was room to grow bilateral trade in both energy and other hydrocarbons products such as petrochemicals.
Al-Falih also said he wanted to see new investment projects carried out by Saudi and Chinese sovereign wealth funds, and added that the two countries shared interest in crude oil storage, mining, renewable energy and industrial development.
Both Saudi Aramco and petrochemicals conglomerate Saudi Basic Industries Corp. (SABIC) have joint venture businesses in China and new projects under development.

In January, Aramco said it was also in advanced talks to invest in refineries in China. SABIC said in May it had agreed to build another petrochemical factory there.


Oil prices rise on signs Iranian oil exports are falling further

Updated 37 min 3 sec ago
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Oil prices rise on signs Iranian oil exports are falling further

SEOUL: Oil prices rose on Tuesday on signs Iranian oil exports this month have fallen from September ahead of US sanctions against Tehran that are set to start in November.
International benchmark Brent crude for December delivery rose 27 cents, or 0.33 percent, to $81.05 per barrel by 0325 GMT.
US West Texas Intermediate crude for November delivery was up 12 cents at $71.90 a barrel.
Iran has exported 1.33 million barrels per day (bpd) to countries including India, China and Turkey in the first two weeks of October, according to Refinitiv Eikon data. That was down from 1.6 million bpd in September, the data showed.
The October exports are a sharp drop from the 2.5 million bpd exported in April before US President Donald Trump withdrew from a multi-lateral nuclear deal with Iran in May and ordered the re-imposition of economic sanctions on the country, the third-largest producer among the members of the Organization of the Petroleum Exporting Countries (OPEC).
The sanctions on Iran’s petroleum sector will go into effect on November 4.
“Uncertainties will remain until Nov. 4 when it would be clear whether the United States would want to cut Iran oil exports to zero or grant waivers,” said Vincent Hwang, commodity analyst at NH Investment & Securities in Seoul.
“Brent prices are likely stay in the range of $80 a barrel or slightly higher, while WTI prices are likely to be $70-$75 a barrel,” Hwang added.
With the world’s only sizable spare oil output capacity, Saudi Arabia is expected to export more to offset the loss of Iranian oil supply from the sanctions.
Saudi Arabia’s Energy Minister Khalid Al-Falih said on Monday at a conference in New Delhi that the kingdom is committed to meeting India’s rising oil demand and is the “shock absorber” for supply disruptions in the oil market.
US crude stockpiles were forecast to have risen for the fourth straight week by about 1.1 million barrels in the week ended October 12, according to a Reuters poll ahead of reports from the American Petroleum Institute (API) and the US Department of Energy’s Energy Information Administration (EIA).
The API’s data is due for publication at 4:30pm on Tuesday, and the EIA report is due at 10:30am on Wednesday.