Saudi Aramco confirms seeking stake in SABIC

Source: CNBC.com

Saudi Aramco in talks for stake in world's fourth-largest chemical firm

• Aramco confirms seeking stake in SABIC
• Has asked banks to pitch for role on acquisition - sources
• Aramco wants to boost its downstream business
• SABIC is majority owned by PIF
• Petrochem giant SABIC has market cap of $102.7 billion

Saudi Aramco said on Thursday it is looking to buy a stake in Saudi petrochemical maker SABIC, a move that could boost the state oil giant's market valuation ahead of a planned initial public offering.

Aramco said in a statement that it was in "very early-stage discussions" with the kingdom's Public Investment Fund to acquire the stake in SABIC via a private transaction. It has no plans to acquire any publicly held shares, it said.

In a separate statement, the PIF also said that talks about a sale were in early stages. "There is a possibility that no agreement will be reached in relation to this potential transaction," it said.

Reuters reported on Wednesday that Saudi Aramco had invited banks to pitch for an advisory role on the potential acquisition of a strategic stake in Saudi Basic Industries Corp, citing two sources with direct knowledge of the matter.

Aramco wants to develop its downstream business as the government prepares to sell up to 5 percent of the world's largest oil producer, possibly by next year. Boosting its petrochemicals portfolio further could help attract investors for the IPO.

Riyadh-listed SABIC, the world's fourth-biggest petrochemicals company, is 70 percent owned by the Public Investment Fund (PIF), Saudi Arabia's top sovereign wealth fund. It has a market capitalisation of 385.2 billion Saudi riyals ($102.7 billion).

The Aramco IPO is the centrepiece of an ambitious plan championed by Crown Prince Mohammed bin Salman to diversify Saudi Arabia's economy beyond oil.

Aramco made the invitation for the SABIC deal to the banks last month, said the sources, declining to be identified due to commercial sensitivities.

Aramco plans to boost investments in refining and petrochemicals to secure new markets for its crude, and sees growth in chemicals as central to its downstream strategy to lessen the risk of a slowdown in oil demand.

Saudi Arabia’s Maaden signs MoU with GE to discuss digital cooperation in mining sector

Source: arabnews.com

RIYADH: The Saudi Arabian Mining Company (Maaden) signed a strategic memorandum of understanding (MoU) with General Electric (GE) on Thursday, which focused on exploring possible opportunities to support digital transformation in the industrial sector.
The two sides discussed opportunities for cooperation in advanced technical solutions that included the entire chain of Maaden’s mining operations, including activities at gold, copper, aluminum and phosphate sites.
The MoU includes utilizing GE’s technological expertise and modern applications in digital transformation, with Maaden to lead the company’s digital transformation programs.
The agreement is part of Maaden’s drive to partner with leading technology and digital solutions to leverage opportunities in technological innovation and the modern digital revolution, invest in leading technologies in its operations around the Kingdom, and enhance the company’s competitiveness as a major company in the mining sector both regionally and globally.
Maaden’s digital mining solutions will improve the company’s business by improving energy costs, enhancing reliability and efficiency of performance and productivity, while improving maintenance costs.
“The Kingdom is at the forefront of the digital transformation efforts in the industrial sector in the region with an ambitious vision. We are proud to support these ambitious visions and meet their goals,” said Darren Davis, Maaden Chief Executive Officer.
Davis stressed that a sustainable mining sector is one of the key pillars of the national economy, saying: “We are confident that our partnership with GE will be a qualitative leap toward achieving these goals and enhancing our competitiveness and sustainability through effective digital industrial solutions.”
“We are keen to build constructive partnerships with the industrial sector around the world to deliver innovative digital solutions that support operations.
“Major companies such as Maaden are of immense importance, and we recognize the impact of improved operations and enhancements,” said GE CEO Bill Roh, referring to its efficiency over other companies, and the Saudi economy as a whole.
“By collaborating to develop industry-specific and environment-friendly solutions in which Maaden manages its operations, we are moving toward achieving the desired digital transformation plans that we believe will deliver significant positive results,” added Roh.
The MoU aims to achieve the goals of Maaden, a pioneer in the Saudi mining sector, to accelerate the digital transformation of the Saudi mining sector, in line with the objectives of the Kingdom’s Vision 2030.
Maaden is working to take advantage of digital and technological transformation strategies and maximize its impact on all the company’s activities and products.
The construction of the largest 450-km treated water pipeline from Taif to support the company’s mining operations in the region, as well as the creation of artificial lakes in Ras Al-Khair for recycling water for industrial uses, are among the most prominent projects that reflect the company’s commitment to sustainability and achieving solutions, in addition to innovation and sustained economic growth, creating a professional environment that enhances talent capabilities, and ensuring the best service for communities within their professional fields.

SNC-Lavalin wins global GES contract from Al Khafji in Saudi Arabia

Source: arabianoilandgas.com

SNC-Lavalin subsidiary SNC-Lavalin Engineers and Constructors has signed a five-year framework agreement to provide international general engineering services to Al Khafji Joint Operations (KJO), a joint operations company comprised of Aramco Gulf Operations Company and Kuwait Gulf Oil Company.

The new framework agreement builds upon an existing five-year framework contract for in-kingdom general engineering studies signed in February 2018, and will see SNC-Lavalin provide a range of engineering services to assist KJO with engineering for major projects, including new offshore platforms, jackets and sub-sea pipelines as well as upgrades to existing offshore platforms and jackets, onshore crude and gas handling facilities, gas pipeline networks, utilities, waste water treatment facilities, and instrumentation systems.

SNC-Lavalin’s teams based in Houston, Texas, and Al Khobar, Saudi Arabia, will carry out the work, supported by SNC-Lavalin’s global centres of excellence in London, Calgary and Mumbai.

“It is a testament to the strong working relationship between KJO and our team, built up over almost a decade working together, that we are able to secure another important framework agreement with KJO,” said Christian Brown, president, oil and gas, SNC-Lavalin.

“These agreements allow us to work closely as a trusted partner to our clients, providing valuable engineering services over many years.”

KJO is responsible for oil and gas exploration, development and production in the offshore area close to the Saudi-Kuwait border, including the Khafji and Hout oil fields, which have been in production since the 1960s