Kuwait investing to meet any OPEC output increase

Kuwait investing to meet any OPEC output increase
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Updated 21 June 2022

Kuwait investing to meet any OPEC output increase

Kuwait investing to meet any OPEC output increase

DOHA: Kuwait Petroleum Corporation chief said on Tuesday the Gulf producer had the capacity to reach its OPEC quota and was moving to its first offshore production as it invests to meet future oil demand.

“We are making the investments necessary to ensure that we can meet any new increases in terms of allocations and also in terms of demand,” Sheikh Nawaf Saud al-Sabah said on the sidelines of the Qatar Economic Forum organised by Bloomberg in Doha.

“We always like to maintain spare capacity about 10% to 15% above where we need to be just in case of supply disruptions around the world,” he said.

Kuwait received its first offshore rig a week ago and it will be ready to begin drilling soon, he said without giving a precise timescale.

“We’ve been producing onshore for almost 90 years now and now we’re moving on to the offshore for the first time,” he said. “We should have good news on that sometime soon.”

Kuwait is producing around 3.5 million barrels a day (bpd) and hopes to reach 4 million bpd by 2025.

On Kuwait’s new 615,000 bpd refinery, Sheikh Nawaf said he expected it to reach full capacity around the end of the year.

“We’ve already worked in the commissioning stages. The hydrocarbons are in the system. It’s a hot site now,” he said.

Originally designed to produce low sulphur fuel oil for power generation in Kuwait, much its production has been made available to the international market after the Gulf state secured enough gas for its own needs.

“Right now there is a tremendously good market for fuel oil, and whether it’s bunker or diesel or whatnot. And we’ll we’ll use that. We will supply the world with that.”

There are no plans to list units of KPC for now, but already monetising pipelines is a possibility.

“We looked at what Aramco and ADNOC have done, in terms of pipelines for example. It’s not something that’s completely off the table for us, it’s something that we’re looking at,” he said. 


Madinah to have 12 electric charging stations to promote EVs

Madinah to have 12 electric charging stations to promote EVs
Updated 10 sec ago

Madinah to have 12 electric charging stations to promote EVs

Madinah to have 12 electric charging stations to promote EVs

RIYADH: The Madinah municipality has signed an agreement with Al-Sharif Holding Group to establish 12 electric charging stations in different parts of the city, the Saudi Press Agency reported.

It is part of the Kingdom’s efforts to achieve its zero-carbon goals.

The opening of these new electric charging stations is expected to increase the popularity of electric vehicles and will also support environmental sustainability programs. 

The agreement was signed between Fahd bin Muhammad Al-Balishi, mayor of the region and Ahmed Sindi, CEO of Sharif X Company for Electric Vehicle Charging Solutions. 

According to reports, these electric charging stations are expected to provide fast and medium charging devices, both AC and DC through power supply sockets with a power ranging from 22-200 kilowatts.

Recently, Kalyana Sivagnanam, group CEO of Petromin, during an exclusive interview with Arab News said that its electric charging station arm Electromin is planning to open new charging stations, in addition to the existing 100 to end Saudis’ reluctance to EVs. 


Commodities Update — Gold prices fall; Indonesia to raise palm oil export quota; Russia reduces grain export taxes

Commodities Update — Gold prices fall; Indonesia to raise palm oil export quota; Russia reduces grain export taxes
Updated 34 min 57 sec ago

Commodities Update — Gold prices fall; Indonesia to raise palm oil export quota; Russia reduces grain export taxes

Commodities Update — Gold prices fall; Indonesia to raise palm oil export quota; Russia reduces grain export taxes

RIYADH: Gold prices fell on Friday as a firm dollar and looming rate hikes soured appetite for the non-yielding asset, while India’s import tax hike on bullion also dampened its demand prospects.

Spot gold is currently priced at $1,811.43 per ounce, while US gold futures settled down at $1,801.50. 

Silver, Platinum fall

Spot silver is priced at $19.67 and has dropped about 6.5 percent this week, its biggest weekly fall since January 2022.

Spot platinum is priced at $892.73 per ounce, on course for its fourth consecutive weekly fall, while palladium is at $1,959.58, gaining about 4.5 percent this week.

Indonesia looks to raise palm oil export quota

Indonesia proposed raising palm oil export quotas on Friday and is considering increasing mandatory levels of biodiesel in fuel mixes to prop up prices for farmers when domestic palm oil inventories are high, a senior minister said on Saturday.

Palm oil inventories ballooned, and mills limited purchases of fresh fruit bunches from farmers after Jakarta stopped exports of crude palm oil and some other derivatives for three weeks to May 23 in a bid to contain soaring domestic cooking oil prices.

Indonesia replaced the ban with a domestic market obligation, requiring companies to supply a portion of their products to the domestic market through the government’s bulk cooking oil program and linked DMO volumes to companies’ export permits and quotas. 

DMO volumes as of the end of June were around 270,000 tons, the government said.

The government will now allow palm oil companies to export seven times the amount of their sales from currently five times, senior minister Luhut Pandjaitan said.

“I asked the Trade Ministry to increase the export multiplication factor to seven times starting July 1, with the main objective to increase farmer’s FFB prices significantly,” Luhut said in a statement.

Russia reduces grain export taxes to support exports

Sanctions-hit Russia has sharply reduced its grain export taxes after changing the formula it uses for calculating them to support shipments in the July-June marketing season, the agriculture ministry said on Friday.

Russian farmers are expected to harvest a massive wheat crop this summer, bringing a record exportable surplus in the 2022-2023 season. 

However, shipments are complicated by high export tax, a strong rouble and sanctions-inflated costs for freight and insurance.

The ministry said that the new base price for calculating the wheat export tax is set at 15,000 roubles ($283.68) per ton.

It was previously in US dollars at $200 a ton. The agriculture ministry used the base price and price indicators reported by traders to determine the level of tax weekly.

The wheat export tax is set at 4,600 roubles ($85.8) per ton from July 6-12 against $146.1 per ton from June 29 to July 5, the ministry said in a separate note.

President Vladimir Putin said this week that Russia is the world’s largest wheat exporter and aims to remain so. Despite disrupting the Black Sea supply chains, it continues to supply its traditional markets in the Middle East and Africa.

(With inputs from Reuters)


Careem acquires money transfer technology platform Denarii

Careem acquires money transfer technology platform Denarii
Updated 03 July 2022

Careem acquires money transfer technology platform Denarii

Careem acquires money transfer technology platform Denarii

RIYADH: Careem, the ride-hailing and e-commerce platform, has acquired Denarii, a Dubai-based money transfer platform, in its second acquisition this month.

While the company has not disclosed the value of the deal, this acquisition will allow Careem to integrate Denarii’s technologies and assets into its platform.

Some key members of the Denarii team will also join Careem as part of the acquisition, MAGNiTT reported. 

Careem will use Denarii’s technology for its Careem Pay feature, to connect customers and Captains with remittance services provided by licensed providers. 

“Denarii’s innovative API will accelerate our journey to offering simple and affordable international remittance services, adding to the wide variety of services already available through Careem Pay,” Mudassir Sheikha, CEO and co-founder of Careem said. 


JPMorgan warns oil may hit $380 a barrel if Russia begins retaliatory production cuts

JPMorgan warns oil may hit $380 a barrel if Russia begins retaliatory production cuts
Updated 03 July 2022

JPMorgan warns oil may hit $380 a barrel if Russia begins retaliatory production cuts

JPMorgan warns oil may hit $380 a barrel if Russia begins retaliatory production cuts

RIYADH: Amid ongoing geopolitical tensions and skyrocketing energy rates, global oil prices may hit $380 a barrel if the US and European curbs compel Russia to inflict retaliatory crude output cuts, Bloomberg reported citing analysts at JPMorgan Chase & Co.

It was after Russia’s invasion of Ukraine that the Western allies led by the US imposed several sanctions, and worked out a complicated mechanism to cap the price fetched by Russian oil.

According to JPMorgan analysts including Natasha Kaneva, currently Russia enjoys a strong financial position and it can afford to slash daily crude production by 5 million barrels.

The analysts noted that Russia’s crude production cuts could be disastrous for the world, as a cut of 3 million barrels will elevate London crude prices to $190. In the worst-case scenario, if the output is cut by 5 million barrels, the price could reach as high as $380 a barrel.

“The most obvious and likely risk with a price cap is that Russia might choose retaliate by reducing exports as a way to inflict pain on the West,” wrote the analysts.


SABB appoints new CEO to lead corporate and institutional banking

SABB appoints new CEO to lead corporate and institutional banking
Updated 03 July 2022

SABB appoints new CEO to lead corporate and institutional banking

SABB appoints new CEO to lead corporate and institutional banking

RIYADH: The Saudi British Bank has appointed Yasser Ali Al-Barrak as its new CEO for corporate and institutional banking from this month.

The appointment of Al-Barrak will take effect on July 1, the bank said in a press statement.

Al-Barrak joined SABB in 2012 and has held many leadership positions, most recently being the general manager of global corporate and institutional banking, the statement said.

“The appointment of Yasser is a testament to the success of career growth plans at SABB, which is a major player in managing our most valuable assets, our people,” said SABB Managing Director & CEO Tony Cripps.

Established in 1978, SABB is an associate of the HSBC Group and a Saudi joint-stock company. It was named Saudi’s best bank for 2022, the statement added.

The bank provides retail, corporate, investment, private, and treasury services and has a paid-up capital of SR20.5 billion ($5.46 billion).