Qatar replaces Russian company in Lebanon’s gas exploration

Qatar replaces Russian company in Lebanon’s gas exploration
Lebanese Prime Minister Najib Mikati, Energy Minister Walid Fayad and Qatar’s Minister of State for Energy Affairs Saad bin Sherida Al-Kaabi with oil company CEOs. (AP)
Short Url
Updated 29 January 2023

Qatar replaces Russian company in Lebanon’s gas exploration

Qatar replaces Russian company in Lebanon’s gas exploration
  • Country hopes discoveries of commercial quantities of fuel will help reverse economic crisis

BEIRUT: Lebanon announced on Sunday that Qatar has entered a consortium to explore for offshore gas in the Mediterranean Sea off the Lebanese coast.

The country is also counting on the participation of some other Gulf states in the consortium, a political observer said.

Lebanon is hoping the exploration and discovery of commercial quantities of oil and gas will help it overcome its current economic crisis.

The deal will see QatarEnergy receive a minority 30 percent stake in the two blocks of Lebanon’s exclusive economic zone. 

QatarEnergy joins the consortium of TotalEnergies of France and Italy’s Eni company for oil and gas exploration in the two Lebanese blocks following the withdrawal of Russia from the agreement.

Lebanon’s share would range from 54 to 63 percent after the deduction of operational and capital costs, in any instance of oil and gas discovery.

Russian company Novatek withdrew from the exploration consortium in the wake of tensions resulting from the Ukraine conflict.

It announced its withdrawal last summer due to US sanctions as the company was no longer able to make any financial transfers outside Russia.

The new agreement was signed by Walid Fayad, Lebanon’s energy minister; Saad bin Sherida Al-Kaabi, Qatar’s energy minister and president and CEO of QatarEnergy; Patrick Pouyanne, CEO of TotalEnergies; and Claudio Descalzi, CEO of Eni.

The ceremony was held at the headquarters of the Lebanese prime minister and in the presence of the ambassadors of Qatar, France and Italy.

The agreement was the result of months-long talks and coincided with practical procedures initiated by the operator to carry out exploration and drilling activities during this year.

Najib Mikati, Lebanese caretaker prime minister, paid tribute to US mediator Amos Hochstein and his team for their handling of the indirect negotiation process between Lebanon and Israel to demarcate the maritime borders at the end of last year, which resulted in an agreement.

Fayad said he hoped the deal would initiate “the beginning of a new phase that would contribute to placing Lebanon on the petroleum map in the region, and boosting its role as an investment destination.”

He added that the deal demonstrates that “[countries] still trust Lebanon, despite all the crises it is going through.”

Al-Kaabi said: “It’s not the first exploration attempt in Lebanon, but it is a serious attempt for a promising exploration in the eastern Mediterranean basin.”

He added: “We are actually present in this region and not far from here, as we have discovered gas in the Glaucus well offshore Cyprus.

"There are many elements that make this agreement important for both Lebanon and QatarEnergy. One of these elements is that it came after the maritime border demarcation agreement, which paved the way for us to begin this ambitious effort.”

The Qatari minister sent the greetings of Sheikh Tamim bin Hamad Al-Thani, who gave his hopes for a better future for Lebanon and its people.

Pouyanne said that “the maritime border demarcation resulted in a new momentum to explore the country’s hydrocarbon potential.”

He added: “We are determined, along with our partners, to drill an exploration well in Block 9 as soon as possible in 2023, and our teams are being fully equipped to carry out these operations.”

Pouyanne pointed out that the new deal between TotalEnergies and QatarEnergy expanded the scope of international cooperation in the exploration field, and raised the number of countries in which the two companies operate to nine.

Descalzi said: “This deal comes at a crucial time, as energy constitutes the basis of relations between the countries, and the Russian gas supply to Europe has been halted.

“I am very optimistic, especially since we are working with the best teams in this field and with the best international companies, QatarEnergy and TotalEnergies.

“We hope we will be able to achieve the desired commercial explorations for the benefit of the Lebanese people.”


Dammam hosts important fish and algae conference and exhibition

Dammam hosts important fish and algae conference and exhibition
Updated 18 sec ago

Dammam hosts important fish and algae conference and exhibition

Dammam hosts important fish and algae conference and exhibition

DAMMAM: More than 100 companies from 35 countries descended on the Dhahran Expo for an under-the-sea experience during the International Conference and Exhibition of Algae from June 4-6.

The event, organized in conjunction with the International Fisheries Exhibition — known as SIMEC — played host to 16 workshops in a dedicated interactive space where seafood was offered to visitors, videos were on display, and experts were on hand to discuss everything related to algae and fish.

The exhibition was held under the patronage of the Eastern Province Gov. Prince Saud bin Nayef bin Abdul Aziz, the Ministry of Environment Water and Agriculture, and the National Livestock and Fisheries Development Program.

Abdul Majeed bin Saad Alshehri, chairman of the conference and SIMEC, said: “In this major global event, we proudly bring together global expertise and international expertise that will further advance food processing industries, develop human capacities, localize cutting-edge algae, and aquaculture technologies … I am fully confident that (IACE will) come up with tangible and actionable recommendations that will transform the algae and fisheries industries.”

The hybrid modality conference was presented in both English and Arabic — with headsets providing simultaneous translations for those requiring it. 

The aim of the three-day gathering was to target businesses from the algae sector as well as to increase awareness regarding the potential for algae cultivation. 

Another goal was to attract investors, inform government representatives of updates in the sector and engage stakeholders from the algae and aquaculture production chain. 

It was also a chance for the global community to exchange information and form potential collaborations among academic researchers working on algae biotechnology.

The main conference sponsor, NEOM, had several interactive spaces within the exhibition and hosted several workshops.

There were other forums led by experts from around the world, including local Saudi universities and companies. 

The Dhahran Expo space was also divided into booths with informative experts passing out brochures and samples of fresh seafood.

One such exhibitor was Julien Ropert, export manager from Le Gouessant in France. 

He traveled to Saudi Arabia for the first time in order to participate at the exhibition and to speak on a panel. 

With over 30 years of experience in fish feed manufacturing, Le Gouessant brought its expertise in sustainable fish farming nutrition to the space. 

Having worked for Le Gouessant since 2016, Ropert is the technical sales manager aquaculture based in France but in charge of Africa and the US. 

Saudi Arabia is a new target as they hope to expand into the Middle East.

“I came to this exhibition to see the Saudi people because I saw videos on the internet on many occasions and it’s a huge country with huge capacity and the government is increasing the sector of the efficiency of fish farming,” he told Arab News.

His hope is that he will be able to secure some partnerships within Saudi Arabia in the imminent future in relation to fish farming.

Saleh Bukhamseen, the award-winning underwater cinematographer whose short film “The Whaler” won the Science Award at the 2022 Nice International Film Festival, spoke to Arab News about the importance of algae in the region. 

“We are here at the exhibition to show the people how important algae is and and how it’s important for the whole ecosystem,” Bukhamseen told Arab News.

He emphasized how everything within nature is connected. The green turtle is a vital creature in the controlling of algae since it serves like a mini-cleaner in the water. 

The turtle nibbles on the algae to prevent it from taking over and completely covering and blooming over the coral reef — which is home to a huge population of fish. Coral reefs provide around 25 percent of the fish consumed from the whole ocean and sea. Algae serves as an important source of food for those sea turtles.

The exhibition held in Dammam was significant because the nearby waters produce larger fish meant to be eaten. In the Red Sea, on the opposite coast, those fish are more colorful but are “tiny” and thus not suitable for mass consumption. 

The waters in Dammam are more rocky and shallow and as a result, allow for sea creatures to thrive. The Red Sea is deeper and better for diving.

The next SIMEC AquaFish exhibition will be held at the Riyadh International Convention and Exhibition Center in early 2024.


NEOM secures $5.6bn to develop 1st phase of residential communities for workforce

NEOM secures $5.6bn to develop 1st phase of residential communities for workforce
Updated 9 min 24 sec ago

NEOM secures $5.6bn to develop 1st phase of residential communities for workforce

NEOM secures $5.6bn to develop 1st phase of residential communities for workforce

RIYADH: Developmental work is fast gaining pace at Saudi Arabia’s futuristic city NEOM as the giga-project finalized contracts worth SR21 billion ($5.6 billion) to build the first phase of residential communities for the workforce.

In one of the world’s largest public-private partnership deals for social infrastructure, NEOM signed up some of the leading Saudi developers to build 10 communities across the smart city that will accommodate an additional 95,000 occupants upon completion of the first phase. 

According to a press release, the preferred bidders who will invest in developing this first-phase residential project include Alfanar Global Development, Almutlaq Real Estate Investment Co., Nesma Holding Co. and Tamasuk Holding Co.

Tamasuk Holding Co. will be investing in the project through two separate partners — Al Majal Al Arabi Group  Co. and the Saudi Arabian Trade and Construction Co.

The deal goes well with the $500 billion project’s plan for more private sector participation in developing the city’s infrastructure.

“NEOM has selected some of the leading companies in Saudi Arabia as partners in delivering and operating temporary communities with world-leading services and infrastructure,” said Nadhmi Al-Nasr, CEO of NEOM. 

He added: “The newly formed partnerships mark an important milestone for the region and are a testament to the capabilities of our team and partners who rapidly achieved financial close on a record amount.” 

The project owner revealed that the temporary residential projects, used by the workforce during the construction period of NEOM, will be built sustainably, using relocatable modular units which can be repurposed once the communities are no longer needed. 

These residential communities will also include a wide range of lifestyle facilities, including swimming pools, entertainment venues, multi-purpose sports fields, cricket ovals and outdoor courts for other sports.

“We are elated to partner with NEOM on this multi-nodal infrastructure project and to contribute to NEOM’s vision of disrupting the conventional approach to urban living. This is in line with our commitment to deliver high-quality solutions in a sustainable manner,” said Sabah Al-Mutlaq, vice chairman of Alfanar Global Development.

NEOM said the second phase of the temporary residential project is expected to be issued to the market in the coming months as it is reviewing interest from investors with plans to shortlist pre-qualified participants from now.

Mohammed Al-Balwi, chairman of Tamasuk, said: “We are immensely proud to be NEOM’s infrastructure partners. Together with Almajal and SATCO, we are committed to delivering the infrastructure that will facilitate the wider and rapid development of NEOM.”

The giga-project is being developed to attract additional investors for its commercial assets. With the signing of the multibillion-riyal investment, NEOM looks to achieve the project’s goal of having a direct economic impact on the region through developing local competency and creating jobs while advancing the use of sustainable solutions in construction.


NIDC inks deal with Valeo Egypt to boost Kingdom’s automotive sector 

NIDC inks deal with Valeo Egypt to boost Kingdom’s automotive sector 
Updated 36 min 30 sec ago

NIDC inks deal with Valeo Egypt to boost Kingdom’s automotive sector 

NIDC inks deal with Valeo Egypt to boost Kingdom’s automotive sector 

RIYADH: In a push to localize the Kingdom’s automotive industry, Saudi Arabia’s National Industrial Development Center has inked a strategic deal with Valeo Egypt, the software development unit of the global automotive supplier. 

The two parties signed a memorandum of understanding set to pave the way for the localization of automotive components and manufacturing of modern systems for mobility technology in the Kingdom, the Saudi Press Agency reported. 

The MoU was signed in the presence of Bandar Alkhorayef, the Saudi minister of industry and mineral resources, and Ahmed Saleh, the Egyptian minister of trade and industry. 

The deal will significantly enhance the efficiency and growth of Saudi Arabia’s automotive sector, as charted in the National Industrial Strategy’s objectives. 

The NIS serves as Saudi Arabia’s roadmap for diversifying its industrial base, boosting non-oil exports, attracting foreign investment, promoting innovation and research, and generating local employment. 

The strategy revolves around three key objectives, namely developing a resilient industrial economy, establishing an integrated industrial center, and achieving global leadership in manufacturing selected industrial commodities. 

The NIS has set ambitious goals for the industrial sector, with the aim of increasing the sector’s contribution to the Kingdom’s gross domestic product from $88.26 billion to $377.06 billion by 2035.

Additionally, it hopes to boost jobs in the industrial sector from 900,000 to 3.3 million during the same period.  


Closing bell: Saudi bourses stay steady for the 3rd consecutive day  

Closing bell: Saudi bourses stay steady for the 3rd consecutive day  
Updated 58 min 54 sec ago

Closing bell: Saudi bourses stay steady for the 3rd consecutive day  

Closing bell: Saudi bourses stay steady for the 3rd consecutive day  

RIYADH: Saudi Arabia’s Tadawul All Share Index remained steady for the third consecutive day, as it edged up 23.28 points, or 0.21 percent, to close at 11,316.87 on Tuesday.  

While parallel market Nomu gained 112.78 points to reach 21,428.78, the MSCI Tadawul Index went up 0.05 percent to close at 1,497.65.  

The total trading turnover of the benchmark index was SR6.69 billion ($1.78 billion) as 104 listed stocks advanced, while 106 retreated.  

The best-performing stock on the day was Abdullah Al Othaim Markets Co., whose share price surged 8.19 percent to SR14.80.  

The Power and Water Utility Co. for Jubail, and Yanbu and Aldrees Petroleum and Transport Services Co. were the other top gainers, as their share prices soared 7.07 percent and 6.96 percent, respectively.  

Tihama Advertising and Public Relations Co. was the worst performer with its share price dropping 2.52 percent to SR19.36.  

On the announcements front, Saudi Arabia’s Capital Markets Authority approved the public listing of Fad International Co., Atlas Elevators General Trading & Contracting Co., Clean Life Co., and Riyal Investment & Development Co. on Nomu.  

According to bourse filings, Riyal Investment and Clean Life will offer 720,000 and 300,000 shares, representing 9 percent and 20 percent of their capital, respectively.  

On the other hand, Fad International and Atlas Elevators will float 240,000 and 1.2 million shares, accounting for 20 percent of each of their capital.  

Meanwhile, CMA issued a resolution to approve Al-Rajhi Co. for Cooperative Insurance’s request to increase its capital from SR400 million to SR1 billion by giving 1.5 bonus shares for every existing share owned by the shareholders. Its share price edged up 0.98 percent to SR123.60.  

The authority also approved a request by Takween Advanced Industries Co. to reduce its capital from SR950 million to SR464.65 million.   

According to a statement to Tadawul, the move will bring down the company’s number of shares to 46.464 million from 95 million. Its share price edged up 1.42 percent to SR10. 


Saudi real estate fund signs deals worth $3.64bn to boost housing market   

Saudi real estate fund signs deals worth $3.64bn to boost housing market   
Updated 06 June 2023

Saudi real estate fund signs deals worth $3.64bn to boost housing market   

Saudi real estate fund signs deals worth $3.64bn to boost housing market   

RIYADH: Aiming to boost Saudi Arabia’s housing market, the Kingdom’s Real Estate Development Fund inked finance agreements worth SR13.7 billion ($3.64 billion) in the first quarter of 2023.   

The deals sought to offer housing benefits to 21,000 citizens during the first quarter, according to the National Development Fund’s quarterly report. 

Such agreements are in line with the Kingdom’s Vision 2030 strategy that aims to provide adequate and affordable housing opportunities for Saudi families.   

The fund also deposited over SR2.7 billion into the accounts of Sakani beneficiaries during the first quarter of 2023, the report said.   

The Sakani program was launched in 2017 by REDF to facilitate home ownership in the Kingdom by developing new housing stock, allocating plots and homes to nationals and financing their purchase.   

Furthermore, the fund’s real estate advisor service recorded over 36,000 recommendations for housing and financing during the first quarter, in addition to approximately 53,000 new beneficiaries, showed the report.   

Saudi Arabia’s NDF provided over SR30 billion funding support in the first quarter of 2023, according to the report.   

The funding was allocated through a number of cooperation agreements and financing support for various economic sectors with an aim to achieve the social, economic and cultural goals envisioned in the Kingdom’s Vision 2030.    

This comes after the fund approved over SR135 billion in financing support for 2022, its annual report released in January showed.     

Additionally, the Saudi Industrial Development Fund approved financing agreements valued at SR875 million with 24 businesses to support the objectives of the National Strategy for Industry.    

Various achievements, agreements and new initiatives that helped in maximizing the developmental impact on the Saudi economy were also highlighted in the report.   

In May, the Kingdom’s housing market got a fresh stream of liquidity, with Saudi Real Estate Refinance Co. announcing SR3.5 billion in sukuk issuances.  

The latest issuance of SRC, owned by the Public Investment Fund, marked the sixth tranche under its upsized SR20 billion sukuk program. 

The real estate finance company will keep boosting market liquidity and assisting lenders and investors, which will stabilize the Saudi mortgage market, stated SRC CEO Fabrice Susini. 

Furthermore, this move will also speed up the rise of homeownership in the country, he added.   

“The positive response from investors to SRC’s latest sukuk issuance is a clear testament to the strength of the Kingdom’s housing market and economy,” Susini said.