New base 01 april 2021 energy news issue 1421 by khaled al awadi

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NewBase Energy News 01 April 2021 - Issue No. 1421 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oman: Duqm Zone an ideal ‘safe haven’ for The Energy Market
NewBase + Oman Observer
The Special Economic Zone at Duqm (SEZAD) is one of the worldwide renowned economic
destionations with great potentials; its prime location, political stability, natural resources,
exceptional topography, and picturesque scenery makes it an excellent choice for business and
tourism.
Covering an area of 2000 sq. kilometres, the Zone -including 90 kilometres of coastline- is regarded
as a major new drive for the socio-economic development in the Sultanate of Oman over the coming
decades.
The heart of Port of Duqm, which anchors the sprawling special economic zone at Duqm overlooking
the Arabian Sea, has invited shipping lines affected by the backlog of vessels making their way
through the newly reopened Suez Canal to make use of the Omani port as a ‘safe haven’ until
normality in services is fully restored.

The announcement came early on Monday, just before news emerged that the Ever Giver, the mega
containership that had been wedged for nearly a week in the canal, had been refloated.
“Port of Duqm is ready to mitigate the challenging situation being faced by the shipping operators
who have their ships stuck on the Red seaside of the Suez Canal, due to the grounding of the vessel
in the key transitway connecting the East and West trade route.
These ships, mostly carrying shipments bound for Europe, N Africa and US East Coast, can explore
the options of offloading their containers or their cargo at Port of Duqm for temporary storage and
later on, through the deployment of specific Relief ships of varying sizes, decide to clear these back
logs for final delivery to the destination points,” the Omani port said in a series of posts on Twitter.
“By doing so, the major take away for the shipping operators would be a lesser disturbance to the
service rotation of the round voyage so that ships on the East-West long-haul services which are
the major ones greatly affected can get back to their proforma schedule as quickly as possible,” it
stated.
Duqm Port, a partnership between the Omani government and Port of Antwerp, Belgium, citied its
“excellent nautical access and marine services including bunkering, five terminals (Multipurpose,
RoRo, Container, Navy, DryBulk), a Dry Dock capability within the port,” as ideally placed to serve
as a sanctuary for ships impacted by the blockage.
“Port of Duqm is a deep draft port of 18m which can handle mega ships up to 20,000 TEU capacity.
Today, it is equipped with enough handling equipment such as harbour cranes to operate
independently 24/7.
“The container berth measuring approximately 1,200m, out of a total quay length of 2,200m, has a
storage yard capacity designed to hold over 1.2million TEU,” it stated.
Duqm a global hub for refined oils, petrochemicals
OQ, the Sultanate’s wholly government-owned integrated energy group, has announced that its
wholly owned subsidiary, Oman Tank Terminal Company (OTTCO), has signed two key
agreements with Port of Duqm, which anchors the giant Special Economic Zone (SEZ) at Duqm.
“We are proud to announce that Oman Tank Terminal Company, owned by OQ and Port of Duqm
signed two agreements regarding Sub-Usufruct and Berth Operating Licence agreements. This

partnership is another firm step to make Duqm a global hub for petroleum and petrochemicals’’, OQ
stated in a post on Monday. OTTCO is overseeing the development of a world-scale Crude Oil
Storage Park at Ras Markaz, just 80 km south of the SEZ. Crude storage capacity envisaged at the
Raz Markaz is presently estimated at five million barrels.
The terminal is connected to the SEZ and to its grassroots heavy oil refinery via a crude pipeline
that will supply feedstock, when required to Duqm Refinery, currently in an advanced stage of
construction within the industrial zone.
OQ also tweeted a picture of the Bulk Liquid Berth which is nearing completion within the Port of
Duqm. Conceived initially as an export facility for the refined petroleum products of Duqm Refinery,
it has since been scaled up to serve assorted international energy firms looking to operate out of
Duqm.
Leading global dredging and maritime infrastructure services provider Royal Boskalis Westminster
NV was selected by the erstwhile SEZ Authority at Duqm in 2017 to construct the bulk liquid terminal
at the Port of Duqm at a cost of RO 199.1 million ($510 million).
The contract called for, among other things, the construction of a 980-metre quay wall, deepening
of the port basin to — 18 metres and approach channel to — 19 metres, dredging and reclamation
works, and the establishment of a new double berth jetty island.
In conjunction with the project, around 79 hectares of terminal capacity was developed adjacent to
the 4.6 kilometre-long secondary breakwater.
However, following heightened international investment interest in Duqm, a further 55 hectares was
reclaimed from the sea to create new terminal capacity for current and future companies looking to
capitalise on the SEZ’s strategic appeal.
Following the completion of the marine infrastructure, the consortium consisting of CB&I and
Saipem commenced construction work on a crude tank farm, product export terminal and other
facilities as part of its commitments under the EPC-3 package of the contract for the implementation
of the Duqm Refinery project.
Storage capacity planned at the Bulk Liquid Terminal will cater for a variety of refined products
emerging from the refinery. But a system of pipelines running from the refinery to the berth will also
facilitate the direct loading of ships, particularly in the case of LPG and high sulphur fuel oil.
On the other hand, dry bulk products such as petroleum coke and elemental sulphur will be
transported by truck to the terminal and stored in warehouses pending their export to overseas
markets.
OTTCO to build new storage capacity at Port of Duqm
The two agreements were signed recently at OQ’s head office in Muscat by Hilal al Kharusi, Chief
Commercial Officer —representing OTTCO, and Reggy Vermeulen, CEO, Port of Duqm Company.
These agreements represent the strong partnership between the two companies to jointly
strengthen Duqm’s status as the upcoming regional hub for petroleum and petrochemical products,
said OQ in a statement.
The additional infrastructure will provide storage for the import and export of petroleum and (green)
petrochemical products, making this development a next step in strengthening Oman’s independent
terminal network.

On this occasion, Hilal al Kharusi, Chief Commercial Officer, said, “These strategic agreements are
an example of integrating our efforts with our partners in Duqm Port and will boost the progress of
the special Economic Zone of Duqm to become a global hub contributing the economic
developments of the Sultanate of Oman.”
Van Hoof, CEO OTTCO, highlighted that, “In our journey towards becoming Oman’s independent
terminal network company, we are pleased with the collaboration between our two companies in
strengthening the port’s prospects as an investment destination, feeding into the Sultanate’s
economy and promoting the Port of Duqm competitiveness as a regional storage hub.”
Reggy Vermeulen, CEO, PODC, stated, “We are delighted to formalise this collaboration, with OQ
and OTTCO. This is a major step in the support towards the development of the national capability
and success of the Port of Duqm.”
OTTCO is Oman’s independent tank storage company. It emerged in 2014 with the objective to
develop Oman’s crude oil hub in Ras Markaz, located 70 km south of Duqm. The first phase of the
development, with a designed capacity of 25 million barrels, is partly used to accommodate for the
crude oil sup ply to OQ8 refinery in Duqm.

U.A.E: Alec Energy wins eight new solar project deals in Q1
Trade arabia + NewBase
Alec Energy, a leading provider of turnkey solutions for both rooftop and ground mounted solar PV
plants, has announced the successful signing of eight new solar project contracts during the first
quarter, yielding an aggregated capacity of 10.4MWp.
Having recently completed the Mobility Pavilion at the Expo site, which required a grid-connected
0.15MWp solar PV solution for its highly unique design, Alec Energy’s new project pipeline includes
cutting edge thermal energy storage, innovative car parks and tailored rooftop solutions across the
UAE.
"Through a combination of national policy and an increasing commitment from corporates to make
the transition to clean energy, we’ve been able to provide companies with bespoke, end-to-end
strategies that make complete sense in terms of cost and environmental sustainability," remarked
its General Manager James Stewart.
"Under the government’s leadership, we believe this trend will continue to grow and we look forward
to playing a central role in supporting the country’s Energy Strategy 2050," he stated.
"Thanks to the technology used by Alec Energy, the widespread installation of solar solutions is a
win for both clients and the wider community. Once the energy is collected from sunlight, an inverter
transfers the direct current to an alternating current, which is used on the project in hand," he added.
Alec Energy pointed out that due to the monitoring provided by smart meter technology, the power
consumed is carefully measured (meaning any deficit can be drawn from the grid when required),
while any excess can be exported to the public utility grid.
As such, its solutions provide a supplemental source of clean energy, helping to make the UAE a
greener country while providing a higher standard of service for its clients.
A related business of Alec Engineering and Contracting, Alec Energy offers a complete turnkey
solution for both rooftop and ground mounted solar PV plants.
It offers a complete spectrum of services from concept to commissioning and operations to
maintenance across the UAE.

Iraq Approves Smaller Budget Plan, Assuming Oil at $45 a Barrel
Bloomberg - Abeer Abu Omar and Khalid Al Ansary
Iraq’s lawmakers approved a revised budget for this year that’s smaller than initially envisaged to
help narrow the deficit and reduce borrowing.
OPEC’s second-largest producer assumed oil prices would average 65,250 Iraqi dinar ($45) per
barrel in the budget statement. The country’s total exports, including from the autonomous region
of Kurdistan, would be 3.25 million barrels a day, the parliament’s press department said via
WhatsApp messages.
Expected revenues are 101.3 trillion dinars ($69.4 billion), while projected spending is 129.9 trillion
dinars, according to calculations based on the official exchange rate. The fiscal shortfall is expected
to be 28.6 trillion dinars, and officials said the deficit would be covered via the difference in oil prices
set in the budget and the real prices at which barrels are sold.
Better Times
Last year, the government devalued its currency by more than 20% against the dollar to avoid
depleting its foreign-currency reserves after the coronavirus sapped demand for energy and caused
prices to collapse.
Iraq’s economy is expected to expand 2.5% this year, according to International Monetary Fund
estimates, compared with the fund’s projection of an 11% contraction last year. Still, net foreign
assets are likely to continue dropping sharply into 2024, while the oil-rich country’s debt-to-gross
domestic product ratio is among the highest in OPEC+, a grouping that includes non-OPEC oil
exporters such as Russia.
Lawmakers also voted to dissolve parliament on Oct.7, ahead of the national election scheduled for
Oct. 10.

U.S. gasoline demand exceeds 2020 levels for first time in 2021
Reuters + eia + NewBase
U.S. gasoline sales for 2021 have exceeded prior-year levels for the first time since last March,
when officials first started to widely impose coronavirus lockdowns, according to a report on
Tuesday from the Oil Price Information Service by IHS Markit.
However, demand still trails pre-pandemic levels, and the year-on-year increase is a bigger
reflection on last year’s demand destruction rather than strong economic recovery this year, the
report said.
U.S. oil consumption crashed by 27% in April last year from the year prior, the Energy Information
Administration said, as aircraft were grounded and people were forced to remain at home to curb
the spread of the coronavirus.

Gasoline same-store sales for the week ended March 20 were 10.1% higher than 2020, said the
report, which surveyed 25,000 fuel stations nationwide. Sales were still 16% below pre-pandemic
levels. Since the start of 2021, gasoline volumes have mostly ranged between 15% to 18% below
prior-year levels, the report said.
“(T)he real measure of recovery will be a return to pre-pandemic levels,” said Brian Norris, executive
director of retail fuels for OPIS. “It’s there that progress remains slow and, looking at gasoline, we
still have a long way to go.”
U.S. gasoline prices have been rising with crude oil prices
U.S. regular retail gasoline prices averaged $2.85 per gallon (gal) on Monday, March 29, according
to EIA’s Gasoline and Diesel Fuel Update. U.S. gasoline prices have generally increased since
reaching a multiyear low of $1.77/gal in late April 2020, primarily because of higher crude oil
prices and higher wholesale gasoline margins.
Prior to this week’s small decline, U.S. gasoline prices increased for 17 consecutive weeks in EIA’s
survey, marking the longest consecutive streak of price increases since 1994.
Gasoline prices in the United States are primarily driven by four components: crude oil prices,
refining costs, retail distribution and marketing costs, and taxes. Because gasoline taxes and retail
distribution costs generally remain stable, changes in gasoline prices are primarily the result of
changes in crude oil prices and refining costs.
Crude oil prices have been steadily increasing since reaching multiyear lows in 2020. Brent crude
oil prices averaged $43 per barrel (b) in November 2020 and have since increased to an average
of $67/b in March, based on data through March 22.
Because a barrel contains 42 gallons, the price of petroleum products changes by 2.4 cents per
gallon when the price of crude oil changes by a dollar per barrel, all else remaining equal.

Refining margins have been steadily increasing since late 2020, as estimated by the difference
between refiners’ acquisition cost of crude oil and wholesale gasoline prices. Estimated U.S.
average wholesale gasoline margins increased from an average of 18 cents per gallon (cents/gal)
in November 2020 to 33 cents/gal in February 2021.
Differences in regional petroleum markets and state and local taxes lead to varied gasoline prices
across the United States. Each Monday, EIA surveys gasoline prices for 10 U.S. cities, 9 states, 4
subregions, and 5 regions (PADDs), in addition to providing a national average.
Regular retail gasoline prices in 4 of the 10 cities in EIA’s survey are already more than $3/gal.
Seattle’s gasoline price surpassed $3/gal in late February 2021. Chicago’s did the same in mid-
March. Both of the California cities in EIA’s survey—Los Angeles and San Francisco—have had
gasoline prices above $3/gal throughout 2021.

China’s Mega-Refineries Throttling Other Asia Oil Processors
Bloomberg - Saket Sundria and Sharon Cho
The rise of China’s mega-refineries was always going to make life tougher for their competitors
across Asia. But the fallout from Covid-19 is hastening the impact and accelerating consolidation
across the region.
A frenzy of refinery building in China is set to make the nation the world’s largest crude processor
this year. At the same time, a drive to de-carbonize Asia’s biggest economy means demand for
fuels like diesel and gasoline will decline, potentially leading to more exports from the new facilities.
SK Innovation’s oil refinery facilities
in Ulsan, South Korea.
That’s putting pressure on the
traditionally more export-focused
plants in South Korea, Singapore
and Taiwan that are trying to cope
with depressed demand due to the
pandemic and the longer-term
transition away from fossil fuels.
Refineries in places like Australia
and the Philippines that lack the size
and sophistication to make them
competitive are closing altogether.
“China is indeed set to dominate new refining additions and product exports are likely to increase”
and will compete quite aggressively with output from other Asian refiners, said Michal Meidan,
director of the China Energy Programme at the Oxford Institute for Energy Studies. Much will
depend on how quickly Beijing liberalizes trade and prices including domestic export quotas, she
said.
Surging Shipments
China is sending more fuels into Asia as its refining capacity increases

China’s refining capacity has nearly tripled since the turn of the millennium and the International
Energy Agency forecasts it will overtake the U.S. this year. Crude processing will climb to 1 billion
tons a year, or 20 million barrels per day, by 2025 from 17.5 million barrels at the end of 2020,
according to China National Petroleum Corp.’s Economics & Technology Research Institute.
Sinopec started operations at its 10-million-ton a year Zhongke plant last June. That was followed
in November by the first phase of private processor Zhejiang Petrochemical and Chemical
Co.’s enormous Zhoushan facility near Ningbo, which has a capacity of 20 million tons that’s set to
double when the final stage is finished. Another 36 million tons of capacity will be added late this
year when CNPC and Shenghong Group open plants.
Beijing currently regulates how much fuel its refiners can export, but they’ve still been able to flood
Asia with product this year amid weak domestic demand due to a virus-impacted Lunar New
Year travel season. Diesel shipments were around 1.9 million tons in the first quarter, including
provisional data for March, or 36% higher than last year, according to energy intelligence firm
Vortexa. Gasoline exports are likely to be up around 25%, it said.
The Shell refinery at Pulau Bukom in Singapore. Photographer: Roslan Rahman/AFP/Getty Images
Singapore, Malaysia and the Philippines are the top destinations for these Chinese cargoes,
followed by Hong Kong and Australia, according to Serena Huang, lead market analyst at Vortexa.
Some of the gasoline and diesel cargoes that were sent to Singapore and Malaysia in February and
March are likely to be re-exported to other Southeast Asian countries, she said.
That’s weighing on plants in those countries and also cutting into export markets for merchant
refiners in South Korea, Singapore and Taiwan that are dependent on overseas demand. SK

Innovation Co., Korea’s biggest refiner, was operating at only 60% to 70% of capacity in February,
while the nation’s other three processors were at higher levels, according to traders who asked not
to be identified as the information is private. Taiwan’s Formosa Petrochemical Corp. is running its
plants at about 60%, they said.
These refineries are unlikely to increase activity significantly before profitability picks up. Complex
margins in Singapore, a proxy for the region, were -45 cents a barrel on Tuesday, near the lowest
in more than a decade.
Other plants around Asia are closing down permanently or being down-sized. Royal Dutch Shell Plc
wound up its Philippines refinery last year and announced in late 2020 that it would slash oil-
processing capacity at its Pulau Bukom complex in Singapore over the next three years.
There’s been a wave of refinery closures in Australia despite Canberra’s efforts to keep them afloat.
Japan’s ENEOS Holdings Inc. is also planning to reduce operations.
There will likely be at least another 200,000 barrels a day of refining capacity shut in Asia within the
next 12 months, according to FGE. “Some less sophisticated, old and highly margin-sensitive
refineries will be pushed into a corner,” said Sri Paravaikkarasu, Asia head of oil at the industry
consultant.
Outside of China and India, Asian refinery run rates are unlikely to make a full recovery from the
virus until the end of the year, she said.
“Export-oriented refiners in South Korea and Singapore are struggling to ramp-up considerably,”
Paravaikkarasu said. “The weakness in refining margins and increasing exports from China is
keeping a tight lid on the recovery.”

NewBase April 01-2021 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil up as OPEC+ meets to decide on production policy
Reuters + NewBase
Oil prices rose on Thursday on optimism over a U.S. government spending plan and hopes that
OPEC and its allies will keep production curbs in place when they meet on Thursday.
Brent crude was up by 91 cents, or 1.5%, at $63.65 a barrel by 0849 GMT. U.S. oil was up 99 cents,
or 1.7%, at $60.15 a barrel.
Ministers from the Organization of the Petroleum Exporting Countries (OPEC) and allies including
Russia, a group called OPEC+, meet on Thursday to reassess output policy. OPEC+ will debate
options from May and beyond, including a rollover of existing cuts and a gradual increase of
production, three OPEC+ sources said.
OPEC+ is currently curbing output by just over 7 million barrels per day (bpd) to support prices and
reduce oversupply. Saudi Arabia has added to those cuts with a further 1 million bpd.
Oil price special
coverage

“Given the recent wobble in prices, along with demand concerns re-emerging once again, there is
a growing consensus that the OPEC+ will likely roll over current cuts for an additional month,” ING
analyst Warren Patterson said.
OPEC+ has trimmed its oil demand growth forecast for this year by 300,000 bpd over renewed
lockdowns, making it more likely the group will agree to sustain its curbs.
France entered its third national lockdown and schools closed for three weeks to push back a third
wave of COVID-19 infections that threatens to overwhelm hospitals. Several other European
countries have also increased restrictions.
Oil also found some support in U.S. economic strength after President Joe Biden outlined a $2.3
trillion spending plan to invest in traditional projects such as roads and bridges alongside tackling
climate change.
U.S. crude stocks also fell unexpectedly last week, helping to support oil prices, Energy Information
Administration data showed. “The inventory data ... showed that the situation is continuing to
normalise on the U.S. oil market,” Commerzbank analyst Eugen Weinberg said.
Other factors, including the rise of gasoline demand in the United States, also supported prices,
Weinberg said.
Meanwhile, an OPEC+ panel meeting ended without a policy recommendation ahead of Thursday’s
talks where the producer group will decide on production going forward. The OPEC+ alliance is
debating whether to revive part of the 8 million barrels of daily output -- about 8% of global supply -
- they’re withholding.
OPEC Secretary-General Mohammad Barkindo pointed to the oil market’s recent volatility as “a
reminder of the fragility facing economies and oil demand.”

“The balance of risks suggests OPEC will steer toward the cautious outcome, delivering sharp
deficits and continue to tighten energy markets at a fast clip,” TD Securities commodity strategists
led by Bart Melek said in a note.
Figures from the Energy Information Administration paint the U.S. as a bright spot for demand
recovery. U.S. refineries are processing crude at the highest rate in a year. In other parts of the
world, the trajectory for fuel consumption remains muddled as evidenced by France’s renewed
nationwide lockdown.
The demand numbers in the U.S. “were huge and we continue to see improvements there,” said
Matt Sallee, portfolio manager at Tortoise, a firm that manages roughly $8 billion in energy-related
assets. “It’s pretty consensus to think that gasoline will be strong and jet fuel will be the laggard,”
but there’s been positive signs “even on the jet fuel side.”
Separately, Saudi Aramco, the state-owned oil giant, is expected to raise its Arab Light official selling
price for May supplies by 30 cents a barrel, according to the median estimate in a Bloomberg survey
of refiners and traders. That’s despite continued flows of Iranian crude into China, and challenging
conditions for many Asian refiners.
Oil advanced toward $60 a barrel ahead of a high-stakes OPEC+ policy meeting, with producers
set to debate whether to extend deep, pandemic-driven supply curbs to drain stockpiles and
safeguard a rally.
West Texas Intermediate rose 1.2% after tumbling almost 4% over the previous two sessions. Prices
fell on Wednesday after an OPEC+ panel meeting ended without a policy recommendation, and
France announced that it will start a month-long lockdown. Still, positive signs from the U.S. as well
as parts of Asia highlight the complexity of the decision facing OPEC+ ministers later Thursday.
coronavirus vaccines and supply curbs helped crude to cap a fourth quarterly gain on Wednesday,
the rally has faltered in recent weeks on concern about risks to near-term consumption, particularly
in Europe. Mohammad Barkindo, secretary-general of the Organization of Petroleum Exporting
Countries, pointed this week to the market’s recent volatility as “a reminder of the fragility facing
economies and oil demand.”

NewBase Special Coverage
The Energy world – April- 01- -2021
Saudi Transformation Drive
Bloomberg + NewBase
Saudi Arabia’s Crown Prince Mohammed bin Salman has a new target in his sights as he looks to
press on with his unprecedented economic transformation plan: the country’s largest listed
companies.
Six weeks after saying foreign entities must move their regional headquarters to the kingdom or
lose business, Prince Mohammed, the nation’s de facto ruler, announced Tuesday that companies
from oil giant Saudi Aramco to dairy producer Almarai will be encouraged to reduce their dividends
and redirect the money back into the economy.
“We’ve seen the government using a stick to get foreign investors to come into Saudi Arabia, and
now they are using it on domestic investors,” said Tarek Fadlallah, the Dubai-based chief executive
officer of the Middle East unit of Nomura Asset Management. “I’m not a fan of government
intervention in the private sector, but Saudi has limited ways to incentivize companies, so partnering
in this way could help encourage more investment.”
The stakes are high. The crown prince’s vision entails combined public- and private-sector spending
of 27 trillion riyals ($7 trillion) over the next 10 years in an effort to diversify an economy that got
54% of its revenue from oil last year. And all at a time when foreign direct investment is a fraction
of what it used to be, the budget deficit is swelling and the nation is struggling with the after-effects
of last year’s slump in crude prices amid the Covid-19 pandemic.

Twenty-four companies, including Saudi Basic Industries Corp., Almarai Co., Saudi Telecom Co.
and National Shipping Co. have agreed to join the plan, investing 5 trillion riyals ($1.33 trillion) in
the local economy, according to Prince Mohammed. Firms will get access to subsidies and be able
to lobby for regulatory changes, the prince said. None of the companies named by him have
commented yet on how much they could invest through the plan.
Given the lack of disclosure about the spending plans, investors may struggle to establish whether
such state involvement in corporate decision-making will ultimately create value.
“Capital expenditure only drives higher long-term growth if it’s on productive projects that create
value and jobs, and it’s not clear that the promise of a mix of concessions or subsidies makes new
non-oil investments compelling for these companies in a way that was not before,” said Hasnain
Malik. the head of research at Tellimer in Dubai. “The problem is that doing nothing is not an option
given the demographic pressure for job creation and the ultimate exhaustion of oil revenues.”
It’s that lack of action that Prince Mohammed may be trying to address. Mortgages account for
almost all lending growth by Saudi banks to the private sector, largely a result of lower government
investment spending on new infrastructure projects and slower economic growth. And dividend
payouts by Saudi companies have already been falling.
The 12-month gross dividend yield for Saudi Arabia’s Tadawul All Share Index was of 2.45% as of
Wednesday, about half of the payout level at its 2009 peak, when it hovered around 5%, according
to data compiled by Bloomberg. That compares with 1.9% for MSCI Inc.’s benchmark emerging
Markets Index.
Investors took the announcement positively Wednesday. Saudi Arabia’s Tadawul index rose 2.8%.
Aramco’s shares climbed 2.7%.
Saudi Arabia said in February it would stop working with companies that didn’t have their regional
headquarters in the kingdom. The announcement was intended to limit “economic leakage” and
boost job creation, an official said at the time. The country has historically been served by

consultants and advisers based in neighboring Dubai or Bahrain, where foreigners enjoy an easier
lifestyle.
Foreign direct investment is languishing below government targets. Prince Mohammed said he
wants to see it surpass $500 billion over the next decade. Last year it rose 20% to $5.5 billion, below
the kingdom’s targets but bucking the global decline.
The 5 trillion-riyal target for private companies still dwarfs what Prince Mohammed envisages will
come from foreign investors.
“We have 90% of the 27 trillion guaranteed by us Saudis, government and private sector, and the
Saudi people,” he told reporters Tuesday. “We are going to attract less than 10% from foreign
investment, part of it from regional investors, especially the GCC, and the other part of it from West
and East.”
Still, the slow pace of foreign investment may help explain the desire to get local companies
contributing more to the economy, said Jean-Francois Seznec, a senior fellow at the Atlantic Council
of Washington’s Global Energy Center and a Middle East specialist.
“Saudi Arabia is worried that foreign firms are not jumping through hoops to come to the country,”
he said. “They need to make spending less reliant on oil income. How do you do that if foreign
investors aren’t coming? One way is to encourage the local private sector to do more.”

NewBase Energy News 01 April 2021 - Issue No. 1421 call on +971504822502, UAE
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About: Khaled Malallah Al Awadi,
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Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as Technical Affairs Specialist for Emirates General
Petroleum Corp. “Emarat “with external voluntary Energy consultation for the GCC
area via Hawk Energy Service, as the UAE operations base. Khaled is the Founder
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New base 01 april 2021 energy news issue 1421 by khaled al awadi

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New base 01 april 2021 energy news issue 1421 by khaled al awadi