saudi signs $50b deals
riyadh — Saudi Arabia signed deals worth $50 billion on Tuesday at the Future Investment Initiative nicknamed “Davos in the Desert”.
Crown Prince Mohammed bin Salman arrived at the investment conference late in the day, declaring he was satisfied with the conference as he toured the venue.
“Great, more people more money,” he told reporters.
Many in the audience of over 2,000 clapped or cheered as the prince, the kingdom’s architect of its reform drive, entered the main hall, smiling as he sat down.
The UAE delegation to the conference was led by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
Earlier, Saudi Energy Minister Khalid Al Falih assured the investment conference that the world’s top crude exporter was passing through a “crisis of a sort” but would power ahead with economic reforms.
The chief executive of Saudi Aramco said the government remained committed to a partial flotation of the oil giant but that the timing would depend on market conditions and other factors.
Hundreds of bankers and company executives joined officials at a palatial Riyadh hotel for the Future Investment Initiative. Russia sent a large delegation led by Direct Investment Fund head Kirill Dmitriev. He said that the Saudi drive for economic and social reform could not be ignored. “Saudi Arabia’s reforms are important and they are worth supporting,” Dmitriev said.
Saudi Arabia signed 25 deals worth $50 billion on Tuesday in the oil, gas, industries and infrastructure sectors with firms such as Trafigura, Total, Hyundai, Norinco, Schlumberger, Halliburton and Baker Hughes. Saudi Aramco said it signed 15 memoranda of understanding worth $34 billion.
Total chief executive Patrick Pouyann, a panellist on Tuesday, said the French oil and gas producer would announce a retail network in the kingdom with Saudi Aramco. —
riyadh — Saudi Arabia said on Tuesday it would continue to meet customer demand for crude despite looming US sanctions that are expected to reduce oil exports from Iran.
Saudi Energy Minister Khalid Al Falih said at an investment conference in Riyadh that the oil market was in a “good place” and he hoped oil producers would sign a deal in December to extend cooperation to monitor and stabilise prices.
Benchmark Brent crude oil hit an intraday low of $78.32 a barrel, down $1.51, following Falih’s comments. US sanctions on Iranian oil begin on November 4 and Washington has said it wants to stop all of Tehran’s fuel exports.
“We have to continue to monitor the market in the next two to three months,” Falih said.
“We will decide if there are any disruptions from supply, especially with the Iran sanctions looming. Then we will continue with the mindset we have now, which is to meet any demand that materialises to ensure customers are satisfied.”
Oil prices have rallied this year on expectations that the sanctions will strain supplies by lowering shipments from Iran, Opec’s thirdlargest oil producer.
Falih said he would not rule out that Saudi oil output would be 1-2 million barrels per day higher than current levels in future as oil demand growth is expected to keep rising. He did not mention a timeline for this.
The minister also said that if oil supply continues to build up, “we will have the mechanism to reconvene... and bring supply and demand in balance and to prevent inventories from growing”. “It is a very unpredictable situation from supply in particular, but demand also has its uncertainties with the trade frictions,” he said.
He said the Organisation of the Petroleum Exporting Countries and its allies hoped to extend their cooperation on oil supply when they meet in December in Vienna.
“It will become an open-ended agreement to continue to monitor (the oil market) and stabilise it,” Falih said.