UAE In-Focus — ADNOC awards $1.53bn contract to expand offshore oil operations to 5m bpd

UAE In-Focus — ADNOC awards $1.53bn contract to expand offshore oil operations to 5m bpd
This two-year contract covers the provision of 12 jack-up rigs and two island rigs (Shutterstock)
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Updated 10 October 2022

UAE In-Focus — ADNOC awards $1.53bn contract to expand offshore oil operations to 5m bpd

UAE In-Focus — ADNOC awards $1.53bn contract to expand offshore oil operations to 5m bpd

DUBAI: Abu Dhabi National Oil Co. has awarded its subsidiary ADNOC Drilling a 5.62 billion dirhams ($1.53 billion) contract to expand its offshore operations to produce five million barrels per day by 2030 , according to Emirates News Agency WAM.

This two-year contract covers the provision of 12 jack-up rigs and two island rigs, and integrated drilling services, and will also allow the company to become self-sufficient in gas production.

ADNOC Upstream Executive Director Yaser Saeed Al-Mazrouei said: “Through this award, ADNOC Offshore will continue to responsibly harness the energy in Abu Dhabi’s waters, as we increase production capacity to meet the world’s growing demand for energy with lower carbon intensity oil and gas. ADNOC Drilling is a world leader in drilling and completion services.

Saudi ANB acquires stake in UAE-based Cashee

Arab National Bank announced an agreement with UAE-based tech startup Cashee to acquire equity in the latter, according to a statement. 

However, neither the amount nor the value of the share it took over was disclosed in the Saudi lender’s press release.

ANB intends to enhance its banking services to target younger generations and broadens financial knowledge and inclusion through this deal.

In addition, Cashee will be able to launch its banking and knowledge solutions, applications, and products in Saudi Arabia with the help of this partnership.

In 2020, Cashee was founded in Dubai to boost financial inclusion for the youth in the Middle East and North Africa region.

ANB’s net profit increased 28.76 percent to SR1.35 billion ($3.59 million) in the first half of 2022, compared to SR1.05 billion a year earlier.

DIFC approves UAE fintech Mamo

Dubai International Financial Center has granted regulatory approval to Mamo, a UAE fintech and financial services platform for Small and Medium Enterprises, according to a statement.

The Dubai Financial Services Authority has granted the company a license to carry out regulated activities in or from the DIFC, including money services.

With the license, Mamo can offer unmatched security and expand its products and services without user restrictions, the statement added.

In June 2021, Mamo received DFSA authorization to operate under the Innovation Testing License program, allowing it to test its business model in a controlled regulatory environment.

All regulated firms must comply with frameworks that require transparency, fairness, and efficiency. 

Businesses, consumers, and users of financial services offered by regulated companies, such as Mamo, are also protected, the statement said.


Oil Updates — crude edges up on potential US rate hike pause 

Oil Updates — crude edges up on potential US rate hike pause 
Updated 01 June 2023

Oil Updates — crude edges up on potential US rate hike pause 

Oil Updates — crude edges up on potential US rate hike pause 

RIYADH: Oil prices rose on Thursday, reversing earlier losses, as a potential pause in US interest rate hikes and the debt ceiling bill passing a crucial vote renewed optimism about further fuel demand growth in the world’s biggest oil consumer. 

Brent crude futures for August rose 58 cents, or 0.80 percent, to $72.18 a barrel by 9:55 a.m. Saudi time, while US West Texas Intermediate crude edged up by 49 cents, or 0.72 percent, to $68.58 a barrel. 

US Federal Reserve officials on Wednesday pointed toward a potential rate hike “skip” in June that reversed market expectations of an imminent hike that could slow economic growth and weaken oil demand. 

Additionally, the US House of Representatives’ passage of a bill suspending the US government’s $31.4 trillion debt ceiling improved the chances of averting a disastrous government default. 

China’s CNOOC begins production at new offshore well in Brazil 

China’s CNOOC Ltd. has begun production at the Buzios5 well off the coast of Brazil, the company said in a statement on Thursday. 

The well is the fifth phase of the Buzios oil field off Brazil’s southeast coast. At an average water depth of 1,900 meters to 2,200 meters, the field is the world’s largest deep-water pre-salt oil field, with daily production of 600,000 barrels, the company said. 

CNOOC’s Brazilian subsidiary owns 7.34 percent of the Buzios shared reservoir, which is 88.99 percent owned by Brazilian state-owned oil and gas company Petrobras. 

CNOOC paid $1.9 billion to Petrobras last year to secure a 5 percent stake in a production sharing agreement at the field. 

Russia says ‘no final decisions’ yet on oil refiner subsidies 

Russia’s Finance Ministry said on Wednesday that no final decision had been made regarding plans to halve subsidies for oil refiners. 

The Interfax News Agency, citing sources, said the plans to halve the subsidies may be postponed to September. 

“The issue is being discussed in the government. No final decisions have been taken,” a finance ministry spokesperson told Reuters. 

(With input from Reuters) 


Red Sea Global announces new sailing club to improve tourism prospects

Red Sea Global announces new sailing club to improve tourism prospects
Updated 01 June 2023

Red Sea Global announces new sailing club to improve tourism prospects

Red Sea Global announces new sailing club to improve tourism prospects

RIYADH: Saudi Arabia is expected to witness a huge influx of sailors, windsurfers and tourists, with multi-project developer Red Sea Global announcing the launch of a new sailing club in the Kingdom. 

According to a press release, RSG’s water sports subsidiary WAMA will operate the sailing club. 

“Sailing is about freedom and adventure while surrounded by the beauty of the ocean. As a pioneer of regenerative tourism and with our first hotels on track to open this year, we are certain this will be a hugely popular activity among our visitors,” said John Pagano, group CEO of RSG, in the statement. 

He added: “The WAMA Sailing Club will provide everyone, regardless of background or ability, the opportunity to explore the wonders of the Red Sea archipelago, experience an exhilarating sport, learn more about marine conservation and enjoy the sense of independence and freedom sailing offers.” 

The press release further noted that the sailing club would provide activities such as sailing, crewing, trapezing and windsurfing in the Red Sea. 

Developing tourism is a crucial agenda for Saudi Arabia as it successfully pursues its economic diversification program. 

Saudi Arabia’s National Tourism Strategy aims to attract 100 million visitors by 2030, besides increasing the tourism sector’s contribution to more than 10 percent of the gross domestic product. The strategy also eyes creating an additional one million jobs in the Kingdom. 

According to RSG, the new sailing club is also expected to create employment opportunities for Saudis, boosting the hospitality sector in the Kingdom. 

“The club will also create exciting employment opportunities for Saudis and international sailors, boosting the Kingdom’s hospitality and sports sector and contributing to Saudi Vision 2030. This will include work experience for Saudi teenagers, who will be able to learn new skills and enhance their understanding of water-based careers,” said RSG in the press statement. 

UK-based RS Sailing, an international designer, builder and supplier of sailboats, is also supporting WAMA Sailing Club in its operations. 

“Our passion is inspiring more people to discover the joys of sailing. That is why our work with RSG to open this stunning stretch of coastline to the sailing community and supporting the launch of the WAMA Sailing Club is a moment of real pride for our team,” said Michiel Geerling, commercial director at RS Sailing. 


Abu Dhabi’s ADNOC Logistics & Services trades 44.8% over IPO price in debut 

Abu Dhabi’s ADNOC Logistics & Services trades 44.8% over IPO price in debut 
Updated 01 June 2023

Abu Dhabi’s ADNOC Logistics & Services trades 44.8% over IPO price in debut 

Abu Dhabi’s ADNOC Logistics & Services trades 44.8% over IPO price in debut 

DUBAI: Shares in Abu Dhabi’s ADNOC Logistics & Services climbed 44.8 percent above their listing price on its market debut on Thursday, after raising $769 million in an initial public offering for 19 percent of the business. 

Shares traded at 2.91 UAE dirhams ($0.79) as the Abu Dhabi market opened against an IPO price at the top of the indicative range at 2.01 dirhams per share. 

ADNOC L&S exports crude oil, refined products, dry bulk and liquefied natural gas from Abu Dhabi. 

It was created in 2016 following a merger between Abu Dhabi National Tanker Co., Petroleum Services Co. and Abu Dhabi Petroleum Ports Operating Co. 


US debt ceiling bill passes House with broad bipartisan support

US debt ceiling bill passes House with broad bipartisan support
Updated 01 June 2023

US debt ceiling bill passes House with broad bipartisan support

US debt ceiling bill passes House with broad bipartisan support

WASHINGTON: The US House of Representatives passed a bill to suspend the $31.4 trillion debt ceiling on Wednesday, with majority support from both Democrats and Republicans to overcome opposition led by hard-line conservatives and avoid a catastrophic default.
The Republican-controlled House voted 314-117 to send the legislation to the Senate, which must enact the measure and get it to President Joe Biden’s desk before a Monday deadline, when the federal government is expected to run out of money to pay its bills.
“This agreement is good news for the American people and the American economy,” Biden said after the vote. “I urge the Senate to pass it as quickly as possible so that I can sign it into law.”
The measure, a compromise between Biden and House Speaker Kevin McCarthy, drew opposition from 71 hard-line Republicans. That would normally be enough to block partisan legislation, but 165 Democrats — more than the 149 Republicans who voted for it — backed the measure and pushed it through.
Republicans control the House by a narrow 222-213 majority.
The legislation suspends — in essence, temporarily removes — the federal government’s borrowing limit through Jan. 1, 2025. The timeline allows Biden and Congress to set aside the politically risky issue until after the November 2024 presidential election.
It would also cap some government spending over the next two years, speed up the permitting process for certain energy projects, claw back unused COVID-19 funds and expand work requirements for food aid programs to additional recipients.
Hard-line Republicans had wanted deeper spending cuts and more stringent reforms.
“At best, we have a two-year spending freeze that’s full of loopholes and gimmicks,” said Representative Chip Roy, a prominent member of the hard-line House Freedom Caucus.
Progressive Democrats — who along with Biden had resisted negotiating over the debt ceiling — oppose the bill for a few reasons, including new work requirements from some federal anti-poverty programs.
“Republicans are forcing us to decide which vulnerable Americans get to eat or they’ll throw us into default. It’s just plain wrong,” said Democratic Representative Jim McGovern on Wednesday.
Late on Tuesday, the non-partisan Congressional Budget Office said the legislation would result in $1.5 trillion in savings over a decade. That is below the $4.8 trillion in savings that Republicans aimed for in a bill they passed through the House in April, and also below the $3 trillion in deficit that Biden’s proposed budget would have reduced over that time through new taxes.


Saudi Arabia signs $45m loan agreement to support Belize’s health care infrastructure

Saudi Arabia signs $45m loan agreement to support Belize’s health care infrastructure
Updated 01 June 2023

Saudi Arabia signs $45m loan agreement to support Belize’s health care infrastructure

Saudi Arabia signs $45m loan agreement to support Belize’s health care infrastructure

RIYADH: The Saudi Fund for Development on Wednesday signed a development loan agreement worth $45 million with the Prime Minister of Belize, John Briceno, for the construction of the Tertiary Hospital in the Belmopan Area Project.

The agreement, which was signed by Ahmed Al-Khateeb, chairman of SFD’s board of directors, is part of the efforts undertaken by Saudi Arabia to support sustainable development in developing countries and Small Island Developing States around the world.

It comes in implementation of the directives of the King Salman and Crown Prince Mohammed bin Salman, the Saudi Press Agency reported.

Since its establishment in 1974, SFD has implemented more than 700 development projects and programs in 86 countries worldwide, making Belize the 87th country to receive funding for a development project following the signing of the deal.

 

 

The new 200 bed hospital will be supplied with state-of-the-art medical equipment, facilities, and integrated health services, benefitting approximately 200,000 people annually. The project aims to enhance the capacity of the local health care system by training health cadres and students from the University of Belize.

In addition to helping to improve access to quality health care services, the hospital will play a crucial role in addressing chronic disease management, potentially reducing mortality rates in the region. 

The new hospital will also stimulate local economic growth by helping to create direct and indirect job opportunities within the health care sector, providing a platform for medical education and training and strengthening Belize’s long-term health care capacity and resilience. 

The project also will contribute to the UN’s Sustainable Development Goals for good health and well-being.

Briceno said: “On behalf of the government and people of Belize, we are most grateful to the government and people of the Kingdom of Saudi Arabia for assisting in building a vital tertiary level/teaching hospital. The concessionary financing, through a loan by the Saudi Development Fund, makes the urgent investment in the health sector a reality.”

Al-Khateeb said: “Saudi Arabia is committed to promoting sustainable socio-economic development in developing nations and Small Island Developing States, while supporting the journey to achieving the UN’s Sustainable Development Goals. 

“Today’s agreement signifies an important step in the development cooperation for both countries. The project to build a tertiary hospital in Belize, will not only empower local communities but also strengthen the health sector’s capacity to cater to the requirements of the capital’s residents and surrounding areas.”