Zain Saudi told to pay Mobily $58.5 million by arbitration panel

Zain Saudi Arabia CEO Hassan Kabbani.
Updated 13 November 2016

Zain Saudi told to pay Mobily $58.5 million by arbitration panel

JEDDAH: Saudi telecom operator Zain Saudi has been ordered to pay Etihad Etisalat (Mobily) SR219.46 million ($58.51 million) following an arbitration award, the companies said.
Mobily asked for arbitration in December 2014 over money it said was owed related to services to Zain Saudi, an affiliate of Kuwait’s Zain Group, which included domestic roaming and site sharing.
At the time, Mobily did not disclose how much money it was seeking from Zain Saudi in arbitration but noted that it was owed SR2.2 billion as of Nov. 30, 2013.
Shares in Mobily jumped 6.4 percent in the first few minutes of trading on the news of the arbitration award, and Zain KSA’s stock was 0.6 percent higher.
Mobily, an affiliate of Abu Dhabi’s Etisalat, said it intended to start the necessary procedures to collect the award, which was communicated to the company on Nov. 10, with the award “final and binding on both parties.”
Zain Saudi said the judgment was not enforceable for 60 days, during which time the company had the right to apply to the competent court for invalidity of the judgment.
The company has not yet taken a decision on such an appeal, according to its statement. An industry source said Zain Saudi was unlikely to launch such an action.
Zain Saudi said it previously made provisions to cover the full amount awarded and that it would not have a negative financial impact on the company.
Mobily and Zain Saudi will also each pay the “expert appointed by the arbitration panel” SR1.16 million, the Zain statement said.


Conflict-hit Libya to restart oil operations but with low output

Updated 10 July 2020

Conflict-hit Libya to restart oil operations but with low output

  • There is significant damage to the reservoirs and infrastructure
  • A first cargo of 650,000 barrels will be shipped by the Kriti Bastion Aframax tanker

TUNIS: Libya’s National Oil Corporation (NOC) lifted force majeure on all oil exports on Friday as a first tanker loaded at Es Sider after a half-year blockade by eastern forces, but said technical problems caused by the shutdown would keep output low.
“The increase in production will take a long time due to the significant damage to reservoirs and infrastructure caused by the illegal blockade imposed on January 17,” NOC said in a statement.
A first cargo of 650,000 barrels will be shipped by the Kriti Bastion Aframax tanker, chartered by Vitol, which two sources at Es Sider port said had docked and started loading on Friday morning.
The blockade, which was imposed by forces in eastern Libya loyal to Khalifa Haftar’s Libyan National Army (LNA), has cost the country $6.5 billion in lost export revenue, NOC said.
“Our infrastructure has suffered lasting damage, and our focus now must be on maintenance and securing a budget for the work to be done,” NOC chairman Mustafa Sanalla said in the statement.
Control over Libya’s oil infrastructure, the richest prize for competing forces in the country, and access to revenues, has become an ever-more significant factor in the civil war.
The internationally recognized Government of National Accord, supported by Turkey, has recently pushed back the LNA, backed by the United Arab Emirates, Russia and Egypt, from the environs of Tripoli and pushed toward Sirte, near the main oil terminals.