Saudi Arabia oil stations hit in terror drone attacks

The attacks happened on Tuesday morning. (File/Shutterstock)
Updated 15 May 2019

Saudi Arabia oil stations hit in terror drone attacks

  • Drones attacked two pumping stations in the Eastern Province of Saudi Arabia
  • Attacks in the Gulf and Saudi Arabia are aimed at the world and not just the Kingdom, Saudi energy minister said

RIYADH: Terrorists have attacked two pumping stations in Saudi Arabia on Tuesday morning, according to the energy minister Khalid Al-Falih.

Drones attacked two pumping stations of East-West pipeline, which carry Saudi oil from fields in the Eastern Province to the port of Yanbu on the west coast. 

The attacks caused a fire at station number 8, which Al-Falih said was controlled after causing limited damage.

Saudi Aramco later confirmed the attack in a statement, stating that it had “responded to a fire at East West Pipeline Pump station 8 which was caused by a sabotage incident using armed drones which targeted pump stations 8 and 9.”

“As a precautionary measure, the company temporarily shut down the pipeline, and contained the fire which caused minor damage to pump station 8. Saudi Aramco confirms that no injuries or fatalities have been reported. Saudi Aramco’s oil and gas supplies have not been impacted as a result of this incident.”

The Kingdom condemned Tuesday's attack and the recent attacks on ships in the Arabian Gulf, threatening oil output - Al-Falih said the Kingdom saw the attacks as a cowardly act of terror aimed at destruction. 

"Recent attacks in the Gulf and Saudi Arabia are aimed at the world and not just the Kingdom," Al-Falih said, adding: “This attack proves yet again the importance that all sides stand against such destructive terror attacks, including the Iran-backed Houthi militants.” 

On Tuesday, Al-Arabiya ran a statement from a spokesman for the Houthis who said seven drones targeted a pumping station near Yanbu.

The Secretary-General of the League of Arab States, Ahmed Aboul Gheit, condemned the attack saying it posed a serious threat to regional and international security and the global economy.

The Spokesman for the Secretary-General of the League, Ambassador Mahmoud Afifi, quoted Abul-Gheit as saying that the violation of the security of any Arab country is detrimental to Arab national security, stressing full solidarity with Saudi Arabia in the face of these terrorist threats aimed at provoking unrest in the region. He also stressed the need to “strengthen international solidarity to confront these criminal acts.”

The UAE Ministry of Foreign Affairs and International Cooperation said in a statement that it was in full solidarity with Saudi Arabia and stood with Riyadh against any threat to the security and stability of the Kingdom, and its citizens and residents, and its support for all measures to confront extremism and terrorism.

The statement added that the security of the UAE and Saudi Arabia is an integral part and that any threat or danger facing the Kingdom is considered by the state as a threat to the UAE’s security and stability system.

An official source at the Kuwaiti foreign ministry confirmed Kuwait’s support for the Kingdom and all measures taken to preserve its security and stability in the face of terrorist acts targeting Saudi Arabia’s security and stability, as well as the entire region.

“This cowardly terrorist act targeted the Kingdom and the region’s security and stability and threatens the safety of the world’s energy supply,” the Bahrain foreign ministry said in a statement issued by Bahrain News Agency.

The ministry praised the Kingdom’s efforts in dealing with this dangerous subversion, stressing “Bahrain’s strong solidarity with Saudi Arabia against anyone trying to threaten its security or harm its interests.”

It also stressed the need for the international community to act decisively to confront all groups and terrorist organizations and the countries that support them with the aim of seeking to provoke tension, violence and chaos in the region, in order to maintain regional and international peace and security.

The Egyptian foreign ministry said in a statement that Egypt was in solidarity with the government and the people of Saudi Arabia in confronting all attempts to undermine its security and stability, stressing their brotherly ties, established relations and coordination at the highest level in order to face common challenges and address terrorism.

Sufian Al-Qudah, spokesperson for the Jordanian foreign ministry, said that Jordan condemned the "cowardly terrorist attack" in the strongest terms and confirmed its stand with its brothers in Saudi Arabia in the face of any threat to the Kingdom’s security and stability.

He said in a press statement that targeting the Kingdom’s security meant targeting the security of the region and the world, noting that Jordan supported all actions and measures to maintain Saudi Arabia’s security and address terrorism in all forms and depictions.

He also stressed that the security of Saudi Arabia, the Arab Gulf and Jordan is one, stressing Jordan’s full solidarity with Kingdom and its confidence in their ability to protect their security and stability

Palestinian President Mahmoud Abbas expressed his country's support to the Kingdom, the king, government and people, stressing his confidence that Saudi Arabia will be able to overcome this crisis with determination and power. 

Yemen also condemned in the strongest terms the cowardly terrorist attack.

In a statement issued by the Yemeni news agency Saba, the Yemeni Republic affirmed its stand with the Kingdom in the face of any threat to its security and stability.

The statement pointed out that the approach adopted by the terrorist Houthi organization, since its inception, reflects Tehran's plans to destabilize security and stability and spread chaos in the Middle East, which is vital for the global economy.

"The targeting of Saudi Arabia by the Houthi terrorist militia with direct incitement from Iran can not be tolerated and constitutes a blatant violation of all peace efforts and threatens the collapse of all United Nations endeavors in Yemen," the statement said.

"Yemen is a leadership, a government and a people that renounces this disgraceful act of an outlawed group that has deviated from the values and morals of the Yemeni people, sold itself to the Iranian regime and has become a puppet in Yemen affirmed its support for the Kingdom, saying the continuation of such violations places the international community without exception in its collective responsibility in confronting this terrorist group and those behind it.

Tunisia, in a statement also expressed its "condemnation of this subversive action and reiterates its full solidarity with Saudi Arabia in all measures taken to safeguard its security, territorial integrity and facilities."

Oil prices rose after the attacks. Brent crude futures were at $70.79 a barrel at 1035 GMT.


Saudi Aramco to buy $1bn of IPO shares as incentive to executives and employees

Updated 11 November 2019

Saudi Aramco to buy $1bn of IPO shares as incentive to executives and employees

  • Aramco said it was also considering introducing an employee stock purchase plan once it becomes a public listed entity

DUBAI: Saudi Aramco will make available $1 billion of shares for employees under a plan to incentivize executives and other staff members alongside the initial public offering (IPO) due to take place next month.

The plan — which was disclosed in the IPO prospectus published late on Saturday night — will involve Aramco buying the shares from the government and making them available for employees under special terms.

Details are still being worked through, but the prospectus talked of a “celebratory grant plan,” implying that at least some of the shares would be given free to some of Aramco’s 73,000 employees.

Such share schemes are not uncommon in privatizations. 

 

Contributions

The Aramco plan is designed to “provide additional incentives to employees whose contributions are essential to the growth and success of the company, to attract and retain qualified individuals and to further align the interests of such employees with shareholders of the company,” the prospectus said.

The scheme will be in three parts: A long-term incentive plan for executives, a similar plan for management levels, and an incentive scheme for other eligible employees, in addition to the “celebratory grant.”

Aramco said it was also considering introducing an employee stock purchase plan once it becomes a public listed entity.

Publication of the offer prospectus is expected to stimulate interest among Saudi nationals, eligible expats and Gulf Cooperation Council (GCC) citizens for the IPO, expected to be the biggest share offering ever. Some 1 billion shares will be made available to private investors in the IPO, with as much as 2 percent being sold to global investors.

High net worth individuals interested in buying large chunks of shares may be included in the institutional offering if there is a lot of private investor demand.

The final proportion to be sold will be determined by the strength of global demand for the stock. There is also the possibility that the government could sell a big tranche of shares to a strategic foreign investor — like a big energy trade partner or a sovereign wealth fund.

The 658-page prospectus contains detailed financial and commercial information on Aramco and will be studied closely by investors interested in the shares.