Page 14 - MEOG Week 33 2021

MEOG
NEWS IN BRIEF
MEOG
their attacks against US assets in Iraq. This
is in contrast to the period of cautious calm that prevailed in Iraq during the last days
of Hassan Rouhani’s term in office when he pressured the militias to cease their attacks — a move that coincided with the resumption of nuclear negotiations. Rouhani’s objective was to deprive the forces opposing efforts to forge a new nuclear deal of a pretext or opportunity to spoil the talks.
Under Raisi, it is likely that Iran will resume missile tests and actively work to develop its ballistic missile program and ensure that this and its regional expansionism are non-negotiable and separate from its nuclear program.
The region is now bracing itself for more misconduct by the IRGC, whether through intensifying attacks against Western assets
in Iraq and Syria, targeting oil tankers and commercial vessels in international corridors or by inciting proxies to launch more attacks against countries neighbouring its spheres of influence.
These actions, in turn, will lead to more Iranian involvement in regional crises as well as intensifying its conflict with Israel, and escalating conflict with regional and world powers opposed to Iran’s regional influence and its missile program. They will also reduce Iran’s room for manoeuvre in negotiations with the West over the outstanding issues, possibly overshadowing the entire Iranian situation both domestically and overseas.
On balance, the international community, especially the US, must establish genuine and effective red lines and deter Iran immediately when it crosses them. This is essential because Iran is adept at operating in the grey zone
and construes any complacency through failure to respond to its provocations as indications of weakness and indifference.
In such circumstances, it will continue to escalate, damaging not only regional stability but also global energy trade, the security
of commercial shipping and oil prices worldwide.
ARAB NEWS
COMPANIES
Aramco joins local solar project
Saudi Aramco is investing, alongside the country’s sovereign wealth fund and Riyadh- based ACWA Power, in the oil exporter’s largest solar project with a capacity of 1.5 GW as the world’s biggest energy company makes a push into renewables.
The Saudi Aramco Power Co., a unit of the parent company, has joined ACWA Power and the Water & Electricity Holding Co.,
or Badeel, owned by the Public Investment Fund, by acquiring a 30% stake in the special purpose vehicle Sudair One Renewable Energy Co., ACWA Power said in an Aug. 15 statement. ACWA Power and PIF will each hold a 35% stake. ACWA Power is 50% owned byPIF.
The $907 million Sudair solar PV plant
is the first project under PIF’s renewable energy program that aims to support Saudi Arabia’s energy transition and contribute 70% of the country’s renewable energy under the National Renewable Energy Program, ACWA added. This is Aramco’s first investment in the program.
“While hydrocarbons will continue to be
a vital part of the energy mix for decades to come, renewables like solar have an important role to play in helping achieve the world’s climate goals,” Mohammed Al Qahtani, senior vice president of downstream at Aramco,
said in the statement. “Sudair will support Saudi Arabia’s ambition to generate part of the nation’s power needs from renewable energy by 2030, and is one of several low-carbon energy options being deployed by Aramco.”
Aramco is evaluating potential projects with partners to make investments in renewables. the company said in its second quarter earnings report on Aug. 9. The partnership is with ACWA Power and PIF, Aramco CEO Amin Nasser said during a call with analysts on Aug. 9.
A 25-year power purchase agreement for the Sudair plant was signed with the Saudi Power Procurement Co., with the tariff being among the lowest for solar PV projects globally, ACWA said. The project will be able to power 185,000 homes, while offsetting nearly 2.9 million mt/year of emissions.
The first phase of the project is expected to begin producing power during the second half of 2022, ACWA added.
“The landmark renewable energy project is a significant step and key part of PIF’s commitment to develop 70% of Saudi Arabia’s renewable energy capacity outlined in the Saudi Vision 2030,” Yazeed Alhumied, deputy governor and head of MENA investments at PIF, said in the statement.
S&P GLOBAL
OIL
Kuwait oil price down $1.14pb
The price of Kuwaiti oil went down by $1.14 to $70.97 per barrel Monday after being
at $72.11 pb last Friday, said the Kuwait Petroleum Corp. (KPC) Tuesday.
As for the Brent crude and the West Texas Intermediate, the price indicators for both went down by $1.08 and $1.15 to settle at $69.51 pb and $67.29 pb respectively.
KUNA
SERVICES
Vantage Drilling awarded
three-year contracts to
work offshore in Qatar
Offshore drilling company Vantage Drilling has been awarded three-year contracts for two of its jack-up drilling rigs to work offshore
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Week 33 18•August•2021