Oil Updates — Crude up; Petronas taking steps to protect global assets; Venezuela denounces attack on gas pipeline

Update Oil Updates — Crude up; Petronas taking steps to protect global assets; Venezuela denounces attack on gas pipeline
Venezuela’s oil minister denounces attack on gas pipeline. (Shutterstock)
Updated 18 July 2022

Oil Updates — Crude up; Petronas taking steps to protect global assets; Venezuela denounces attack on gas pipeline

Oil Updates — Crude up; Petronas taking steps to protect global assets; Venezuela denounces attack on gas pipeline

RIYADH: Oil prices extended gains on Monday, propped up by a weaker dollar and tight supplies that offset concerns about recession and the prospect of widespread COVID-19 lockdowns in China again reducing fuel demand.

Brent crude futures for September settlement rose 69 cents, or 0.7 percent, to $101.85 a barrel by 0421 GMT, after a 2.1 percent gain on Friday.

US West Texas Intermediate crude futures for August delivery edged up 27 cents, or 0.3 percent, to $97.86 a barrel, after climbing 1.9 percent in the previous session.

The US dollar retreated from multi-year highs on Monday, supporting prices of commodities ranging from gold to oil. A weaker dollar makes dollar-denominated commodities more affordable for holders of other currencies

Petronas says taking steps to protect global assets 

Malaysia’s state energy firm Petronas said it was taking steps to protect the legal position of all its global assets after two Luxembourg-based subsidiaries were served with a seizure notice last week over a dispute with the heirs of a late sultan.

The last sultan of Sulu’s heirs are seeking to seize Malaysian government assets around the world in a bid to enforce an arbitration award handed to them by a French court in February. The subsidiaries were served with a seizure notice by Luxembourg court bailiffs.

Venezuela denounces attack on gas pipeline

Venezuelan Oil Minister Tareck El Aissami said on Twitter on Sunday that technical personnel at Venezuela’s state-run oil company PDVSA and firefighters were putting out a fire on a natural gas pipeline in the country’s east.

In his comments on Twitter, El Aissami called the fire “a new attack” on the gas system.

His comments on Twitter did not specify which pipeline was on fire. However, three industry sources said that he was referring to a fire on a section of a pipeline in the state of Monagas.

That fire began during the late afternoon on Saturday on a section of the pipeline near the Aguasay 5A plant, according to an internal report dated July 16 from PDVSA, as state-owned Petroleos de Venezuela is known, and reviewed by Reuters.

El Aissami attributed the fire to unidentified terrorist groups, saying “It’s the same terrorist groups as always, who have acted against the national interest to affect the lives of our people.”

Libya’s NOC continues to do its job according to the law

Libya’s National Oil Corp. is continuing to do its job according to the law, it said on its social media feeds on Sunday, days after the Government of National Unity sought to replace the NOC chief and its board of directors.

NOC said it will not comply with any “illegal” sacking measures from an “outgoing” government.

Algeria refinery project not progressing as expected

The development of Algeria’s $3.5 billion Hassi Messaoud refinery project is not progressing as expected, amid higher global energy prices and increased demand for refined products, MEED reported citing industry sources.

According to the report, the project is on hold for the moment as the contractors are yet to deploy on the ground. 

“They have done some preliminary engineering work and that is all. Just about 5 percent of the entire project has been completed,” said one source. 

Sasol oil will not meet commitments in July 

South Africa’s largest fuel producer Sasol has declared force majeure on the supply of petroleum products as deliveries to the Natref refinery got delayed, according to a Bloomberg report. 

Natref refinery has a production capacity of 108,000 barrels a day, and the force majeure is expected to drastically increase petroleum imports to the country, the report added. 

“Sasol Oil will not be in a position to fully meet its commitments on the supply of all petroleum products from July 2022,” the company said in a statement. 

US’ talks with India on price cap on Russian oil ‘encouraging’

US Treasury Secretary Janet Yellen described as “encouraging” talks with India about a proposed price cap on Russian oil that Washington is pushing to drive down oil prices and make it harder for Moscow to fund its war in Ukraine.

Yellen, who arrived in Seoul on Monday evening, told Reuters in an interview en route to the South Korean capital that she was feeling generally positive about the initiative.

“We’ll see where they come out. The conversations I’ve had have generally been encouraging,” Yellen said aboard a military aircraft on her way from Indonesia to South Korea.

(With input from Reuters)


UAE’s Dana Gas raises its foreign ownership limit to 100% 

UAE’s Dana Gas raises its foreign ownership limit to 100% 
Updated 20 sec ago

UAE’s Dana Gas raises its foreign ownership limit to 100% 

UAE’s Dana Gas raises its foreign ownership limit to 100% 

RIYADH: The UAE’s vision of strengthening its capital markets has become one step closer to reality as Sharjah-based energy company Dana Gas plans to raise its foreign ownership limit to 100 percent. 

Listed on the Abu Dhabi market, the firm announced that it had obtained the approval of the regulatory authorities to raise the percentage of foreign ownership from 49 percent to 100 percent of its capital, according to a regulatory filing on the Abu Dhabi Securities Exchange. 

The largest private sector natural gas company in the region disclosed that the move aligns well with the UAE’s new Commercial Companies Law that abolished a requirement that UAE nationals own 51 percent of onshore firms. 

“Opening our company fully to foreign ownership will support the UAE’s vision of strengthening its dynamic capital markets by attracting greater numbers of international investors and deepening market liquidity,” said Dana Gas Chairman Hamid Jafar in a press statement. 

According to Jafar, the company’s growth outlook remained rather sturdy in the Kurdistan region of Iraq, where the firm is seeking to increase production. 

It also maintained a strong growth outlook in Egypt, where the firm is working on maximizing the value of its assets by negotiating improved fiscal terms. 

However, Dana Gas’ recent earnings report was not favorable. The company generated a net profit of 183 million UAE dirhams ($50 million) in the first quarter of 2023 compared to 198 million UAE dirhams in the year-ago period. 

Profitability for the quarter dropped 7 percent compared to a 22 percent decline in the company’s realized prices. However, the impact of lower realized prices on the company’s profitability was partially offset by reduced operating costs by 14 percent. 

Revenue was 13 percent lower at 447 million UAE dirhams in the first quarter of 2023 compared to 513 million UAE dirhams in 2022.  

The decrease in revenue, and subsequently net profit, was primarily due to a pullback in energy prices from high levels. 


Closing bell: Saudi stocks remain steady; TASI edges down 0.02%

Closing bell: Saudi stocks remain steady; TASI edges down 0.02%
Updated 11 min 30 sec ago

Closing bell: Saudi stocks remain steady; TASI edges down 0.02%

Closing bell: Saudi stocks remain steady; TASI edges down 0.02%

RIYADH: Saudi Arabia’s Tadawul All Share Index lost 2.38 points or 0.02 percent to close at 11,135.67 on Monday.

While the parallel market Nomu shed 45 points to close at 21,007.84, the MSCI Tadawul Index edged down by 0.58 percent at 1,483.55.

The total trading turnover of the benchmark index was SR4.76 billion ($1.27 billion) as 111 listed stocks advanced, while 95 retreated.

Yanbu Cement Co. emerged as the best performer as its share price surged by 8.05 percent to SR40.95.AYYAN Investment Co. and Saudi Pharmaceutical Industries and Medical Appliances Corp. were other top gainers, as their share prices advanced by 6.71 percent and 5.45 percent respectively.

Astra Industrial Group was the worst performer, as its share price dropped by 3.22 percent to SR72.20.

Leejam Sports Co.’s share price was down by 3.20 percent to SR114.80, while stocks of Naseej International Trading Co. dipped by 3.03 percent to close at SR48.

Mayar Holding Co. was the top gainer on the Kingdom’s parallel market. The company’s share price soared by 15.82 percent to close at SR79.80.

Future Care Trading Co. was the worst performer on Nomu, as its share price went down by 8.83 percent.

 


Saudi-Russia forum highlights key opportunities to strengthen economic ties 

Saudi-Russia forum highlights key opportunities to strengthen economic ties 
Updated 22 min 19 sec ago

Saudi-Russia forum highlights key opportunities to strengthen economic ties 

Saudi-Russia forum highlights key opportunities to strengthen economic ties 

RIYADH: Demonstrating strong strengthening of ties, Saudi Arabia and Russia kicked off a high-profile forum in Riyadh to identify critical opportunities to develop economic relationships.   

Inaugurated on Monday, Made in Russia + Innoprom is a two-day event consolidating both nations’ commitment to mutually beneficial partnerships and sustained growth.  

Speaking with Arab News on the sidelines of the event, Alexey Gruzdev, deputy minister of industry and trade of the Russian Federation, stressed the importance of imports to his country and urged companies to explore the Kingdom’s vast opportunities.  

“Russian companies should come here (Saudi Arabia) to investigate and understand the experiences and capabilities of the local producers and also to see the materials, components, and services that can be imported from Saudi Arabia to Russia,” Gruzdev said.  

Replying to Arab News’ question about measures Russia took to address the trade imbalance between the country and Saudi Arabia, Gruzdev said: “The reason we came here is to look into this great turnover and find a way to improve.”  

He added: “It might sound strange that as a producing country, we also talk about imports, but this is the model of modern Russia; we are not only able to supply to the world, but we are also ready to import and procure good technologies and expertise from our partners.”  

Gruzdev further explained that the country is now implementing an import substitution strategy to replace suppliers who try to impose sanctions on Russia with products and services from partner-friendly countries. 

He said: “This kind of substitution means that we welcome goods from Saudi Arabia to Russia.” 

He continued that Russia can significantly benefit from Saudi imports in a wide range of economic sectors.  

“A big part is machinery,” Gruzdev added, “we can also benefit a lot from biotechnology, chemicals, components, and raw materials … there is a wide selection of interest.”  

Gruzdev stated that Saudi businesses could utilize Russia’s large mining, pharmaceuticals, technology and aviation industries.  

“I would also suggest Saudi companies invest in Russian startups and innovative companies in information technology, cybersecurity and renewable energy,” he added.  

The event highlighted the immense opportunities in the digital economy and advanced technologies, emphasizing the necessity of collaboration in these burgeoning fields. The infrastructure sector also emerged as a promising avenue for joint ventures.  

On the first day of the event, Saudi Deputy Minister of Investment Badr Al-Badr stressed the importance of Saudi-Russia trade relations, stating that the Soviet nation is the 14th largest exporter to the Kingdom, growing at 20 percent volume year on year last March.  

“The trajectory of Saudi exports to Russia has not followed the same path; Saudi exports to Russia between 2017 and 2022 have grown only by about 30 percent,” Al-Badr said. 

He added: “In 2022, the value of the Saudi export to Russia was only 2 percent of the value of imports from Russia. This is clearly a major opportunistic area for us.” 

The deputy minister also underscored crucial sectors such as energy, technology and infrastructure, underlining their significant potential for bilateral cooperation.  

Another key focus was the pivotal role of the energy and mining sector, with Saudi Arabia being the leading global oil exporter and Russia being a major oil and gas powerhouse.  

These initiatives reflect the joint resolve of Saudi Arabia and Russia to boost economic ties, setting a new growth trajectory in the post-pandemic era. 

Innoprom is the largest Russian industrial exhibition held in Yekaterinburg for the last 14 years.


Education activities report 98% internet usage in 2022: GASTAT

Education activities report 98% internet usage in 2022: GASTAT
Updated 29 May 2023

Education activities report 98% internet usage in 2022: GASTAT

Education activities report 98% internet usage in 2022: GASTAT

RIYADH: Saudi establishments are on the fast lane of adoption of information technology, with education and manufacturing activities last year registering 98.6 percent and 97.6 percent internet usage, respectively.

According to the 2022 Survey of Information and Communication Technology Access and Usage by Establishments conducted by the General Authority for Statistics, known as GASTAT, 96.1 percent of Saudi establishments used the internet last year.

Topping the list of activities of establishments that use the internet the most was information and communication, at 98.9 percent.

Approximately 58.7 percent of businesses use fixed phones for business purposes, whereas 76 percent use mobile phones. 

The survey also reported that of the 94.6 percent of establishments that use computers, 67.8 percent trained their employees on computer programs and applications.  

Due to its digitalized nature, academia led in computer utility, as 99.7 percent of establishments in education activities used computers.  

Of the establishments listed in the survey, 69.4 percent have an intranetwork — a private network within an organization — mostly found in finance and insurance. 

Less than half of the companies — 45.6 percent — that use the internet have a website, with financial and insurance activities leading the way.  

The survey also revealed that around 52.6 percent of institutions in Saudi Arabia have a social media account, most of which is that of education. 

In 2022, establishments using cloud computing for financial or accounting software applications accounted for 34.5 percent.  

According to a GASTAT bulletin released earlier this month, the percentage of people utilizing the internet in the Kingdom increased to 94.3 percent in 2022. 

The authority reported that the percentage of people 15 years or older who use the internet has climbed to 94.3 percent, up 1.4 percent from 2021. 

Additionally, it revealed that men used the internet at a rate of 95 percent, while women used it at 93.3 percent in 2022.  

Saudis make up 93.6 percent of internet users, while non-Saudis make up 95.2 percent, according to the GASTAT data.  

Around 96.5 percent of families had access to the internet last year and 57.3 percent had a computer at home. 

As for computer usage, 49.3 percent of people aged 15 and up used a computer last year, 55.1 percent of which were Saudis.  


Saudi Arabia, UAE poised to lead region’s $6bn gaming sector: report

Saudi Arabia, UAE poised to lead region’s $6bn gaming sector: report
Updated 29 May 2023

Saudi Arabia, UAE poised to lead region’s $6bn gaming sector: report

Saudi Arabia, UAE poised to lead region’s $6bn gaming sector: report

RIYADH: Led by a young and digital-savvy population, Saudi Arabia and the UAE are set to spearhead the Middle East and North Africa’s gaming sector, positioning it for a $6 billion valuation by 2027, according to the Dubai Multi Commodities Centre’s latest study.   

The DMCC report titled “Future of Trade 2023 Gaming in the MENA: Geared for Growth” revealed that the region’s gaming industry is reaping substantial returns.   

“Among the most closely watched segments is esports, which is expected to post revenue growth of 23.3 percent between 2019 and 2024 in MENA. Fueling this is the region’s young demographic, engagement from international broadcasters and sponsors, and government support,” Ahmed bin Sulayem, executive chairman and CEO of DMCC, said.   

The report underlines that Saudi Arabia and the UAE are on track to enhance the regional industry, spurred by high-income levels, robust digital participation, and government and private investment initiatives.    

“Gaming has come to the fore of entertainment globally, driving rapid growth, especially in the MENA region, which now constitutes 15 percent of the global player base,” Bin Sulayem added.   

Saudi Arabia has been channeling significant investment into the gaming industry. Take, for instance, Savvy Games, a wholly owned Public Investment Fund entity, which agreed last April to acquire US-based gaming company Scopely for $4.9 billion.    

Moreover, Savvy Games also announced a $265 million investment into Chinese tournament operator and esports firm VSPO in February.    

Saudi Arabia’s esports tournament organizer, Gamers8, also disclosed a prize pool of $45 million for its 2023 event, billed as the largest figure in esports history.    

“The rise of gamification in areas such as education, healthcare, and other sectors has demonstrated gaming’s role in facilitating economic activity more broadly. Ensuring the accelerated growth of the gaming sector will have a measurable impact on the future of markets around the world, as well as the future of trade,” Bin Sulayem added.   

Earlier this month, Amsterdam-based MY.GAMES, a developer of mobile, PC, and console games, formed a partnership with the UAE’s AD Gaming and will establish its regional headquarters in Abu Dhabi.