May 2018 - Page 2 of 2

May 16, 2018May 16, 2018

Aramco, Total said to eye Saudi fuel stations such as Tas’helat

Saudi Arabian Oil Co. and Total are weighing jointly buying businesses such as Tas’helat Marketing Co. to gain access to networks of retail fuel stations in the Gulf kingdom, according to people with knowledge of the matter.

The state-owned company, known as Aramco, and the French oil giant are also looking at a range of options from consolidating some service stations to potentially starting the business from scratch, the people said, asking not to be identified as the matter is private.

French lender Credit Agricole SA and local investment bank Saudi Fransi Capital are advising the firms on their plans, which are still in the early stages, they said.

No final decisions have been taken and the group may decide against acquiring Tas’helat, which operates fuel stations under the Sahel brand, or any other business, they said. Representatives for Total and Credit Agricole declined to comment. Spokesmen for Aramco and Saudi Fransi didn’t respond to requests for comment.

Aramco and Total this month entered into a preliminary accord to study the joint purchase of a retail service station network in Saudi Arabia, and another worth about $9 billion for the potential expansion of a refinery and petrochemicals complex in Jubail, according to a statement April 10.

A division of Aramco, known as Saudi Aramco Retail Co., may enter into a joint venture with the French company to operate the business following a takeover, one of the people said.

Aramco, which is planning what could be the world’s largest initial public offering, is scouting for acquisitions as it seeks to become an integrated energy company with operations spanning the full spectrum of activities in the industry.

The company asked banks to pitch for roles to help identify natural gas assets globally, people familiar with the matter said this month.

Other large energy majors are looking to divest distribution assets and focus more on core exploration activities. Abu Dhabi National Oil Co., another Middle East state-owned explorer, raised 3.1 billion dirhams ($844 million) from the sale of a stake in its fuel retail unit this year.

Source:http://www.arabianbusiness.com/retail/395040-aramco-total-said-to-eye-saudi-fuel-stations-such-as-tashelat

May 15, 2018

Iran, Spain Sign MoU on Oil, Gas Cooperation

A memorandum of understanding (MoU) was inked in Tehran on the promotion of cooperation between Iran and Spain in the oil and gas industries.

General Director for Europe, America and Caspian Sea Neighboring Countries in Iran’s Oil Ministry Hossein Esmaeili Shahmirzadi and Deputy Director General of Commerce Policies for Africa and Middle East at the Spanish Secretariat of State for Trade Maria Mercedes Higuero signed the document on the sidelines of a meeting of the Iran-Spain joint workgroup.

Ms Higuero is heading a Spanish delegation to Iran to attend the 23rd International Oil, Gas, Refining and Petrochemical Exhibition (Iran Oil Show-2018) and talk with Iranian officials on enhancement of mutual cooperation.

The MoU is aimed at encouraging the two sides’ companies to develop cooperation in such fields as upstream and downstream oil sectors, supply of equipment, transfer of technology and technical knowhow, IOR (improved oil recovery) and EOR (enhanced oil recovery).

Addressing the meeting prior to the signing ceremony, Iranian Deputy Oil Minister Amir Hossein Zamaninia highlighted the need for partnership with foreign companies and attracting foreign investment from countries like Spain to modernize Iran’s oil industry infrastructures.

There has been growing enthusiasm for trade and cooperation with Iran, especially among European countries, since coming into force of the JCPOA in January 2016.

Back in February, a top Spanish delegation led by Foreign Minister Alfonso Dastis visited Iran and signed two memorandums of understanding on political, economic and industrial cooperation with the Islamic Republic.

Source:http://www.iran-bn.com/2018/05/09/iran-spain-sign-mou-on-oil-gas-cooperation/

May 15, 2018

IRGC Construction to Finish 40 Mega-Projects by Yr-End

Commander of Khatam al-Anbia Construction Base, a conglomerate belonging to the Islamic Revolution Guards Corps (IRGC), pledged that his forces will complete 40 mega-projects in the current Iranian year, which began on March 21.

Addressing a meeting on “Resistance Economy” at the Lorestan gubernatorial office in west Iran, General Ebadollah Abdollahi said the Khatam al-Anbia Construction Base has given a report to the first vice president about its plan to finish 40 mega-projects across Iran at a cost of 1.18 trillion rials in the current year.

Going into details, the commander said the plan includes large-scale projects in the oil and gas industry, water management, railway and road construction, port and mine development, oil and gas pipeline industry, and information technology (IT).

Ten major projects will be completed for the Oil Ministry with around $22 billion in investment, the general added, saying completion of the Persian Gulf Star oil refinery is a top priority that could fulfill half of the country’s need for gasoline.

IRGC officials have already offered help to the Iranian administration in non-military technologies in order to cut dependence on foreign countries.

Earlier this year, the IRGC Aerospace Force helped the Energy Ministry in cloud-seeding operations as part of programs to fight drought.

The IRGC Ground Force has also carried out extensive plans in recent years for development of border provinces and underprivileged areas, such as the southeastern province of Sistan and Balouchestan.

IRGC forces have been also actively involved in rescue and relief operations in natural disasters across Iran. They were tasked with the reconstruction of rural areas in the western province of Kermanshah after a November 2017 earthquake, and also found the wreckage of an ATR plane that crashed in southwest Iran in February.

Source:http://www.iran-bn.com/2018/05/09/irgc-construction-base-to-finish-40-mega-projects-by-year-end/

May 7, 2018

Aramco, Total said to eye Saudi fuel stations such as Tas’helat

French lender Credit Agricole SA and local investment bank Saudi Fransi Capital are advising the firms on their plans, which are still in the early stages, they said.

A division of Aramco, known as Saudi Aramco Retail Co., may enter into a joint venture with the French company to operate the business following a takeover, one of the people said.

The company asked banks to pitch for roles to help identify natural gas assets globally, people familiar with the matter said this month.

Source:http://www.arabianbusiness.com/retail/395040-aramco-total-said-to-eye-saudi-fuel-stations-such-as-tashelat

May 7, 2018

Saudi-led group wins deal to build key Oman water project

A consortium led by Saudi-based ACWA Power has been awarded the Salalah Independent Water Project by the Oman Power and Water Procurement Company.

The plant will be located in Salalah, Dhofar region and will have a capacity to generate 25 million gallons per day of desalinated water using reverse osmosis technology.

The consortium also includes Veolia and Veolia Middle East and Dhofar International Development & Investment Holding Co (DIDIC), a statement said.

The project is being procured by OPWP under a build-own-operate framework on the back of a 20 year water purchase agreement, it added.

Dhofar Desalination Company, the project company, will be owned by ACWA Power, Veolia Middle East and DIDIC.

Paddy Padmanathan, president and CEO of ACWA Power, said: “Water is the most vital commodity for human life as well as a necessity for all enterprises. We are delighted to have been awarded this project and the opportunity to continue supporting Oman as a reliable supplier of desalinated water and power.”

The engineering, procurement, and construction of the plant will be handled by a consortium of Fisia Italimpianti and Abeinsa Infraestructuras Medioambiente while the operations and maintenance of the plant will be undertaken by a consortium of Veolia Middle East, NOMAC Oman and DIDIC.

Thamer Al Sharhan, managing director at ACWA Power, said: “Oman is a strategic country for ACWA Power – our portfolio of six plants can generate over 4,300 MW of power and 42 million gallons per day of desalinated water. ACWA Power is committed to ensuring the success of this project while creating real value for the local communities.”

Demand for water in Oman is expected to rise by about six percent per annum over the next seven years.

Source:http://www.arabianbusiness.com/industries/construction/385461-saudi-led-group-wins-deal-to-build-key-oman-water-project

May 7, 2018May 7, 2018

Oman forecast to see double digit growth in tourists to 2021

Tourism arrivals to Oman will increase at a compound annual growth rate (CAGR) of 13 percent between 2018 and 2021, according to a new report.

The Colliers International data, released ahead of Arabian Travel Market 2018 (ATM), which takes place at Dubai World Trade Centre next month, predicts the rise will be fuelled by visitors from across the GCC, who accounted for 48 percent of guests in 2017.

In addition, arrivals from India (10 percent), Germany (6 percent), the UK (5 percent) and Philippines (3 percent) are also expected to contribute heavily to the growth, supported by new visa processes and improved flight connections, the report said.

Historically, the Middle East has been the largest source market for Oman, with arrivals from this group increasing at an annual rate of 20 percent between 2012 and 2017, it added.

Simon Press, senior exhibition director, ATM, said: “The latest data demonstrates the growth in visitors to Oman will continue, supported by strategic investment from the government as it turns to tourism to diversify its income streams.

“Oman is a fantastic destination with responsible, eco, cultural and heritage attractions, as well as being a key travel hub, with significant opportunity to capitalise on transit itineraries for stopover visitors.”

Accommodating the predicted influx, a number of major hotel chains have recently announced properties in Muscat, driving the 12 percent CAGR over the next three years – from 10,924 rooms in 2017 to 16,866 keys in 2021.

Supply in Muscat is dominated by five-star properties, accounting for 21 percent, and four-star, accounting for 24 percent.

Press said: “With strong existing demand from GCC leisure and business travellers, Oman is preparing for even more 4- and 5-star guests over the coming years as work completes on the Oman Exhibition and Convention Centre and Muscat Opera. Occupancy could rise by as much as 5 percent in 2018, so Oman really is one to watch.”

Complementing its hotel pipeline, Oman has made significant investments in other tourism infrastructure, including airports, the report said, adding that expansions at Muscat and Salalah International Airports pushed passenger figures to 12 million and 1.2 million in 2016.

Source:http://www.arabianbusiness.com/travel-hospitality/391937-oman-forecast-to-see-double-digit-growth-in-tourists-to-2021

May 7, 2018May 7, 2018

Kuwait’s Global exits controlling stake in Omani steel company

Kuwait-based Global Capital Management (GCM) has concluded a successful exit of its controlling stake in Al Jazeera Steel Products Company, a Omani company listed on Muscat Securities Market.

The transaction was made with Sheikh Suhail Bahwan and Sheikha Amal Suhail Bahwan, chairman and vice chairperson of Suhail Bahwan Group.

Sulaiman Mohammed Al-Rubaie, deputy CEO of Global Investment House and managing partner of GCM said: “We are extremely delighted to have completed this exit and provide our investors with liquidity in such challenging geopolitical and economic environment. We expect to distribute the proceeds from this transaction to clients investing in the fund within the second quarter of 2018”.

The fund acquired 51 percent stake of Jazeera Steel in 2007 and the management team of GCM implemented a growth program for the company. The program focused on enhancing its penetration in regional and international markets namely Saudi Arabia and North America.

During the past five years, Jazeera Steel managed to maintain its growth trajectory despite tough financial and economic times, Al-Rubaie said.

He added: “We are confident that the commitment, track record and expertise of the acquirers will provide Jazeera Steel with the required support and guidance to further grow the company.”

The Global team said it has concluded 33 exits, the highest among all private equity firms in the region, and distributed more than $360 million to its clients, raising the total distributions since inception to more than $580 million.

Source: http://www.arabianbusiness.com/banking-finance/393052-kuwaits-global-exits-controlling-stake-in-omani-steel-company

May 7, 2018May 7, 2018

Oman Oil Co, BP reveal further plans for giant Khazzan gas field

The Oman Oil Company Exploration and Production (OOCEP) and its partner, BP, announced on Monday that they will proceed with the development of Ghazeer, the second phase of the giant Khazzan gas field.

Around 350 kilometres south-west of Muscat, the Khazzan field was discovered in 2000 with development beginning in 2014. OOCEP holds a 40 percent interest in the field, in Oman’s Block 61, with BP, the operator, holding 60 percent in 2016.

The final investment decision for Ghazeer follows the successful start-up of Khazzan’s first phase of development in September 2017, state news agency WAM reported.

This project, which started production ahead of schedule and under budget, is now producing at design capacity of around one billion cubic feet (bcf/d) of gas a day and around 35,000 barrels a day of condensate.

The Ghazeer project is expected to come on-stream in 2021 and deliver an additional 0.5 bcf/d and over 15,000 bpd condensate production. Drilling on the first three development wells has begun, following appraisal drilling on Ghazeer last year.
Initial construction work has already started at Khazzan to accommodate a third gas train and associated infrastructure.

The Khazzan and Ghazeer developments are expected to deliver total production of 10.5 tcf of gas and around 350 million barrels of condensate up to the end of the concession agreement in 2043.

Source:http://www.arabianbusiness.com/energy/393822-oman-oil-co-bp-reveal-further-plans-for-giant-khazzan-gas-field