China signed a number of economic deals with Egypt during a visit by President Xi Jinping on Thursday and agreed to a $1 billion financing agreement with the Central Bank of Egypt and $700 million in loans to the National Bank of Egypt.
Officials from the two countries signed a total of 21 deals that span several infrastructure investments, including power generation, the first phase of a new administrative capital, and the development of an industrial and commercial hub around Egypt’s new Suez Canal. Agreements were also signed in the electricity, housing, and civil aviation sectors. “China supports Egypt’s efforts to maintain stability, develop the economy and improve livelihoods, and supports Egypt to play an even greater role in international and regional affairs,” Xi said. “We are ready to work with the Egyptian side to carry forward our traditional friendship, learn from each other, and deepen our practical cooperation in various fields.” [Reuters, Ahram Online, Aswat Masriya, 1/21/2016]
Chinese President Xi Jinping and Saudi King Salman on Wednesday inaugurated a joint-venture refinery during Xi’s Middle East tour. Saudi Aramco holds 62.5 percent of the Yanbu Aramco Sinopec Refining Corporation Refinery (Yasref), located in Yanbu Industrial City on the Red Sea. Yasref, which has a capacity of 400,000 barrels per day oil, is one of five joint-venture refineries in Saudi Arabia. Another four are overseas, including one in Fujian, China. “Yasref represents both companies’ focus on driving downstream growth,” the refinery said in a statement. Saudi Aramco and China Petroleum & Chemical Corporation (Sinopec) also signed a framework agreement on cooperation, reflecting confidence “in the potential opportunities we can create together,” said Saudi Aramco President Amin Nasser. “Aramco would like to invest more in China...We look forward to have other projects with Sinopec in China specifically, so that Aramco expands in its investments in refining, marketing and petrochemicals in China,” Aramco Chairman Khalid al-Falih said. During Xi’s visit, Saudi Arabia and China agreed to boost bilateral relations. Meanwhile, China and the Gulf Cooperation Council agreed to speed up talks on a free trade deal. [AFP, Reuters, WSJ, 1/20/2016]
Algeria is turning to China to finance several infrastructure projects, the first time the country has sought external funding in a decade. Chinese banks will fund the port in Cherchell, east of Algiers, for a megaport of 23 docks capable of processing 26 million tonnes of goods per year. The project is worth $3.2 billion and will be managed by China’s Shanghai Ports Group. “This is an important and strategic project not only for Algeria, but for Africa,” China’s Ambassador in Algeria said Monday. “We have $60 billion available for projects in Africa in the next three years, and Algeria is in a good position to take advantage of this amount,” he said. The total amount of the loans requested by Algeria from China is unknown, but a vehicle and trucks assembly plant and thousands of houses are among Chinese-funded projects planned for the next couple of years. [Reuters, 1/20/2016]
Kuwait’s emir has called for better management of spending and for budget cuts to cope with declining revenues due to lower oil prices. The remarks by Sheikh Sabah al-Ahmed al-Sabah, at a meeting with newspaper editors, appeared part of a drive to prepare the ground for politically difficult economic measures. “We are required to start with treatment and economic steps and programs aimed at managing and reducing the budget articles, to deal with the shortages in the state financial revenues,” Sheikh Sabah said. Chief Executive of Kuwait Petroleum Corporation Nizar al-Adsani said on Tuesday that Kuwait was considering several options for energy subsidy reforms. Sheikh Sabah also said that operations and exports from oil fields jointly operated with Saudi Arabia would resume soon. The al-Khafji oilfield has been shut since October 2014 and the Wafra oilfield has been shut since May 2015. [Reuters, 1/20/2016]
Libya’s Tripoli-based National Oil Corporation (NOC) held a number of official meetings with key oil and gas companies with interests in Libya in recent days. The NOC held separate sessions with BP, Shell, Medco, Turkish Petroleum, Statoil, Eni, and Taftnet on January 12-14, according to official NOC reports. The meetings were led by NOC Chairman Mustafa Sanallah and attended by NOC Head of Exploration and Production Abulqasim Shanqir. The NOC called the meetings to discuss security threats that have disrupted oil production and distribution and the global drop in oil prices. The meetings aimed to find cooperation initiatives between the oil and gas companies and the NOC and methods to overcome challenges facing Libya’s oil sector. [Libya Monitor (subscription), 1/20/2016]
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China offers financial support to Egypt during president’s visit
China signed a number of economic deals with Egypt during a visit by President Xi Jinping on Thursday and agreed to a $1 billion financing agreement with the Central Bank of Egypt and $700 million in loans to the National Bank of Egypt. Officials from the two countries signed a total of 21 deals that span several infrastructure investments, including power generation, the first phase of a new administrative capital, and the development of an industrial and commercial hub around Egypt’s new Suez Canal. Agreements were also signed in the electricity, housing, and civil aviation sectors. “China supports Egypt’s efforts to maintain stability, develop the economy and improve livelihoods, and supports Egypt to play an even greater role in international and regional affairs,” Xi said. “We are ready to work with the Egyptian side to carry forward our traditional friendship, learn from each other, and deepen our practical cooperation in various fields.” [Reuters, Ahram Online, Aswat Masriya, 1/21/2016]
China’s Xi opens refinery with Saudi King Salman
Chinese President Xi Jinping and Saudi King Salman on Wednesday inaugurated a joint-venture refinery during Xi’s Middle East tour. Saudi Aramco holds 62.5 percent of the Yanbu Aramco Sinopec Refining Corporation Refinery (Yasref), located in Yanbu Industrial City on the Red Sea. Yasref, which has a capacity of 400,000 barrels per day oil, is one of five joint-venture refineries in Saudi Arabia. Another four are overseas, including one in Fujian, China. “Yasref represents both companies’ focus on driving downstream growth,” the refinery said in a statement. Saudi Aramco and China Petroleum & Chemical Corporation (Sinopec) also signed a framework agreement on cooperation, reflecting confidence “in the potential opportunities we can create together,” said Saudi Aramco President Amin Nasser. “Aramco would like to invest more in China...We look forward to have other projects with Sinopec in China specifically, so that Aramco expands in its investments in refining, marketing and petrochemicals in China,” Aramco Chairman Khalid al-Falih said. During Xi’s visit, Saudi Arabia and China agreed to boost bilateral relations. Meanwhile, China and the Gulf Cooperation Council agreed to speed up talks on a free trade deal. [AFP, Reuters, WSJ, 1/20/2016]
Hit by oil price drop, Algeria turns to China for funds
Algeria is turning to China to finance several infrastructure projects, the first time the country has sought external funding in a decade. Chinese banks will fund the port in Cherchell, east of Algiers, for a megaport of 23 docks capable of processing 26 million tonnes of goods per year. The project is worth $3.2 billion and will be managed by China’s Shanghai Ports Group. “This is an important and strategic project not only for Algeria, but for Africa,” China’s Ambassador in Algeria said Monday. “We have $60 billion available for projects in Africa in the next three years, and Algeria is in a good position to take advantage of this amount,” he said. The total amount of the loans requested by Algeria from China is unknown, but a vehicle and trucks assembly plant and thousands of houses are among Chinese-funded projects planned for the next couple of years. [Reuters, 1/20/2016]
Kuwait’s emir urges management of spending, budget cut over oil price drop
Kuwait’s emir has called for better management of spending and for budget cuts to cope with declining revenues due to lower oil prices. The remarks by Sheikh Sabah al-Ahmed al-Sabah, at a meeting with newspaper editors, appeared part of a drive to prepare the ground for politically difficult economic measures. “We are required to start with treatment and economic steps and programs aimed at managing and reducing the budget articles, to deal with the shortages in the state financial revenues,” Sheikh Sabah said. Chief Executive of Kuwait Petroleum Corporation Nizar al-Adsani said on Tuesday that Kuwait was considering several options for energy subsidy reforms. Sheikh Sabah also said that operations and exports from oil fields jointly operated with Saudi Arabia would resume soon. The al-Khafji oilfield has been shut since October 2014 and the Wafra oilfield has been shut since May 2015. [Reuters, 1/20/2016]
Libya’s NOC holds series of meeting with energy majors
Libya’s Tripoli-based National Oil Corporation (NOC) held a number of official meetings with key oil and gas companies with interests in Libya in recent days. The NOC held separate sessions with BP, Shell, Medco, Turkish Petroleum, Statoil, Eni, and Taftnet on January 12-14, according to official NOC reports. The meetings were led by NOC Chairman Mustafa Sanallah and attended by NOC Head of Exploration and Production Abulqasim Shanqir. The NOC called the meetings to discuss security threats that have disrupted oil production and distribution and the global drop in oil prices. The meetings aimed to find cooperation initiatives between the oil and gas companies and the NOC and methods to overcome challenges facing Libya’s oil sector. [Libya Monitor (subscription), 1/20/2016]
Also of interest
Middle East economic slowdown will cut oil demand growth | Reuters
Saudi to consider reforms to social insurance fund | Reuters
Saudi Arabia to grant first license in airline liberalization by end of March | Reuters
Sharjah reopens Gulf sukuk market with $500 million five-year deal | Reuters
Airstrikes hit Yemeni oil storage facilities | Reuters
Bahrain bourse to trade T-bills as state debt swells | Reuters
S&P says GCC fiscal pressures could affect support for Egypt | DNE
Egypt continues negotiations with ADFD, IDB for development projects | DNE
Egypt’s EFG Hermes targets renewable energy investments | Bloomberg
Egyptian Refining Co to start output at largest refinery in Q1 2017 | Reuters
Fitch says Fitch Egypt’s new bank rules could weaken asset quality | Reuters
Iraq oil exports at record, unaffected by Iran’s return to market | Reuters
Russia’s Gazprom Neft increases oil output at Iraq’s Badra to 85,000 bpd | Reuters
US approves possible sale of weapons, munitions to Iraq | DSCA
US bombs ISIS cash collection points | NYT
Militants attack storage tanks near Libya’s Ras Lanuf oil terminal | Reuters
Protests start to weigh on Moroccan economic reforms | Reuters