Oil industry brings Russia, Saudi Arabia together

Novomet, the Perm-based Russian company that is the world leader in these devices, has teamed up with Saudi Aramco in a deal — also involving the Kingdom’s Public Investment Fund and the Russian Direct Investment Fund. (Supplied)
Updated 15 October 2019
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Oil industry brings Russia, Saudi Arabia together

  • Business climate has improved in Saudi Arabia, says Novomet CEO

MOSCOW: The Russian city of Perm, on the threshold of Siberia in the Ural Mountains, is a world away from the desert heat of Dammam in Saudi Arabia, but the two places have at least one thing in common: Electrical submersible pumps (ESP).
Novomet, the Perm-based Russian company that is the world leader in these devices, has teamed up with Saudi Aramco in a deal — also involving the Kingdom’s Public Investment Fund (PIF) and the Russian Direct Investment Fund (RDIF) — that is the latest example of business cooperation between the two countries.
A consortium of investors including RDIF, Saudi Aramco and PIF signed the deal — in the presence of King Salman and Russian President Vladimir Putin — to acquire 31 percent of Novomet.
Novomet CEO Maksim Perelman was not there due to urgent business in Perm, but he was involved in the complex negotiations leading up to the signing.
“We’ve been trying for 10 years to break into Saudi Arabia, and finally we’ve done it,” he told Arab News.
Political issues slowed down talks on the potential deal, he said, and were a factor in a proposed tie-up with the big American oil services company Halliburton, which fell foul of increasingly tense US-Russia relations.
“With Saudi Arabia it’s easier. We’re talking about business and technology, not about politics,” he said.

HIGHLIGHTS

• Novomet pumps are installed in oil wells to drive crude oil to the surface ready for shipping and refining.

• Novomet’s business in Saudi Arabia is currently conducted via local agents and technical support staff in Dammam.

• CEO Maksim Perelman is looking forward to closer working relationships in Saudi Arabia, and is considering opening a full branch office.

Under the transaction, a consortium comprising Saudi Aramco, the PIF and the RDIF will take a 30 percent stake in Novomet, a private company founded after the end of the Soviet Union by Perelman’s father and some colleagues. The value of the transaction has not been disclosed.
“We’re the technology leader in this area. The product is still unique — it’s very slimline equipment — and nobody can compete with us,” Perelman said.
Novomet pumps are installed in oil wells to drive crude oil to the surface ready for shipping and refining.
“We can solve a lot of the problems in terms of oil production,” Perelman said.
He is looking forward to closer working relationships in Saudi Arabia, and is considering opening a full branch office there.
At the moment, Novomet’s business in the Kingdom is conducted via local agents and technical support staff in Dammam, where oil was first discovered in significant quantities more than 80 years ago.
“We’ve seen a lot of improvement in how we can do business in Saudi Arabia. Now it’s much more flexible,” Perelman said.
“The Kingdom wants more companies to come and open up there, and it’s moving in the right way. Now I can get a visa easily online, whereas 10 years ago it took maybe a week.”


Saudi Arabia welcomes ceasefire in Lebanon

Updated 11 sec ago
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Saudi Arabia welcomes ceasefire in Lebanon

RIYADH: Saudi Arabia's ministry of foreign affairs expressed said the Kingdom welcomed the ceasefire in Lebanon in a statement posted on X on Wednesday. 

The Kingdom expressed appreciation for all international efforts made for the ceasefire, adding that it hoped it would lead to the implementation of Security Council Resolution (1701) and the preservation of Lebanon's sovereignty, security and stability and the return of the displaced to their homes in safety and security.

Resolution 1701 calls for a full cessation of hostilities between Israel and Hezbollah.


Fam Foods, Kobe Beef Association partner to launch halal-certified beef in Saudi Arabia

Updated 27 November 2024
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Fam Foods, Kobe Beef Association partner to launch halal-certified beef in Saudi Arabia

  • As part of the event, Fam Foods announced the upcoming opening of Hocho, a premium Kobe and wagyu-based restaurant set to launch in Via Riyadh

RIYADH: The introduction of halal-certified Kobe beef to the Saudi market was marked by an exclusive evening at the residence of Morino Yasunari, the Japanese ambassador to Saudi Arabia.

The event was hosted by Fam Foods, the only authorized reseller in the Kingdom, in collaboration with the Kobe Beef Association and highlighted the deepening cultural and culinary partnership between Japan and Saudi Arabia.

Guests enjoyed a unique atmosphere that blended heritage and contemporary celebration. They were welcomed with traditional Saudi coffee, a gesture reflecting the nations’ shared value of hospitality, while the decor also combined their traditions.

They were also treated to a culinary journey featuring authentic Japanese techniques, including teppanyaki preparations demonstrating the artistry and meticulous craftsmanship behind Kobe beef. The renowned Kimono Butcher captivated the audience with a masterful demonstration of beef cutting, symbolizing the precision and dedication synonymous with Japanese culinary heritage.

Princess Muneera Al Rasheed, chairwoman of Fam Foods, said during her address: “This evening celebrates more than just the introduction of halal-certified Kobe beef; it embodies the rich culinary and cultural partnership between Japan and Saudi Arabia. At Fam Foods, we are committed to innovating while safekeeping tradition — together, we are transforming premium dining experiences in the Kingdom.”

Shinnosuke Murakami, president of the Sanda Meat Center Export Expansion Consortium which oversees the export of Kobe from Japan, said: “Kobe beef represents the pinnacle of Japanese wagyu beef, renowned worldwide for its exceptional flavor, rich aroma and unparalleled tenderness.

“We are deeply grateful to His Royal Highness Faisal bin Bandar bin Sultan Al Saud, Her Highness Princess Muneera Al Rasheed, and the Fam Foods team for their ongoing support in this partnership and providing us the opportunity to share this wonderful delicacy with the people of Saudi Arabia and the Arab world.”

Traditional performances also added depth to the evening, connecting attendees to the cultural roots of Japan, with the serene melodies of a koto performance and the elegance of a flute recital bringing the event to life.

As part of the event, Fam Foods announced the upcoming opening of Hocho, a premium Kobe and wagyu-based restaurant set to launch in Via Riyadh. The venture is set to redefine Japanese dining in Saudi Arabia, offering an elevated culinary experience that brings the artistry of Japanese beef to the forefront.


Emir of Kuwait sends King Salman GCC Summit letter

Updated 27 November 2024
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Emir of Kuwait sends King Salman GCC Summit letter

  • Message delivered to minister during meeting in Riyadh

RIYADH: King Salman has received a letter from the Emir of Kuwait Sheikh Meshal Al-Ahmad Al-Sabah inviting him to the Gulf Cooperation Council Summit.

The message was delivered to Minister of State Prince Turki bin Mohammed bin Fahd during a meeting in Riyadh on Tuesday with Kuwait’s Foreign Minister Abdullah Ali Al-Yahya.

The two sides held cordial talks and discussed issues of common interest.

The 45th GCC Summit takes place in Kuwait on Sunday.


King Salman asks people of Saudi Arabia to pray on Thursday for rain

Updated 27 November 2024
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King Salman asks people of Saudi Arabia to pray on Thursday for rain

RIYADH: King Salman called on Muslims in Saudi Arabia to pray on Thursday for rain, the Saudi Press Agency reported.

“Everyone who is able should be keen to perform the prayer, in accordance with the tradition of Prophet Muhammad,” the Royal Court said.

Muslims are often asked to pray for rainfall in times of drought or other water shortages.


Global Harmony event concludes with celebration of Egyptian culture in Riyadh

Updated 26 November 2024
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Global Harmony event concludes with celebration of Egyptian culture in Riyadh

  • Saudi Arabia and Egypt continue to strengthen their political relationship through agreements in trade, tourism, energy and culture

RIYADH: The Global Harmony initiative concludes its third edition with a week-long celebration of Egyptian music, art and tradition in Suwaidi Park as part of Riyadh Season.

Running from Nov. 24-30 and organized by the Ministry of Media, the event invites visitors to experience Egypt’s rich heritage through a range of cultural activities.

Speaking to Arab News, Egyptian Ambassador to Saudi Arabia Tarek El-Meligy highlighted the deep-rooted connection between the two nations. “The Egyptian community is the most harmonious, coexistent and understanding in a positive way within Saudi society,” he said.

“If you ask any Egyptian which country they would like to live in after Egypt, they will say Saudi Arabia.”

The Egyptian ambassador to Saudi Arabia visits the Egyptian festival at Riyadh’s Suwaidi Park, held as part of the Global Harmony initiative on Nov. 24, 2024. (AN photo by Huda Bashatah)

Sarry Shaaban, an executive and consultant at the General Entertainment Authority, said: “We are talking about millions of visitors, both residents and Saudis, entering the park. Whether I’m a resident, a Saudi or from a country hosting the event, it provides an opportunity for residents to learn about your culture, colors, explore its arts, food, crafts, and traditional industries.”

Live music and dance performances displaying Egypt’s cultural traditions, with the rhythm of drums and flutes and performers in traditional costumes, have brought the life and spirit of Cairo’s streets to Riyadh.

A separate bazaar area has been set up featuring Egyptian cuisine, traditional clothing and handcrafted items.

Performers showcase traditional Egyptian folk costumes and dances during celebrations at Riyadh’s Suwaidi Park, part of the Global Harmony Initiative, on Nov. 24, 2024. (AN photo by Huda Bashatah)

“An event like this carries positive messages and highlights something we strive to emphasize every day, that we are one people, united by love and affection,” said El-Meligy.

Egyptian Sameh Nabil emphasized the feel of unity: “This initiative brought us closer together as Egyptians, and with Saudis here, I feel like we are brothers. I always feel like we are not expatriates.”

And visitor Khaled Zahir said: “This event reflects the love, connection and affection between Egyptians living in the Kingdom and Saudis.”

Performers in Egyptian attire take part in a parade at Riyadh’s Suwaidi Park, celebrating Egyptian culture as part of the Global Harmony initiative on Nov. 24, 2024. (AN photo by Huda Bashatah)

Egyptians make up 11 percent of Saudi Arabia’s population, according to the Saudi Census, meaning such exhibitions are important in promoting mutual respect and harmony.

El-Meligy said Saudi Arabia hosted the largest Egyptian expatriate community abroad, with remittances from those in the Kingdom forming a significant part of their home nation’s income.

“In recent months, remittances from Egyptians abroad have increased substantially, thanks to the facilities between the two countries and the confidence in both the Saudi and Egyptian economies,” he added.

Performers in Egyptian attire take part in a parade at Riyadh’s Suwaidi Park, celebrating Egyptian culture as part of the Global Harmony initiative on Nov. 24, 2024. (Photo/@RiyadhSeason)

Saudi Arabia and Egypt continue to strengthen their political relationship through agreements in trade, tourism, energy and culture. In his October visit to Cairo, Saudi Crown Prince Mohammed bin Salman met with Egyptian President Abdel Fattah El-Sisi to discuss investment opportunities and the establishment of a supreme coordination council to deepen bilateral relations.

Trade between Saudi Arabia and Egypt saw a 35.16 percent annual increase in the first half of 2024, according to the General Authority of Statistics. The increase was driven by a 73.44 percent surge in Saudi imports from Egypt, totaling $4.18 billion.

Egypt has also shown a growing interest in investing in Saudi Arabia, with a 71 percent rise in licenses granted to Egyptian firms in the second quarter of 2024.

The festival, which began in October, highlights the lives, contributions and cultural integration of its residents. So far, it has celebrated cultures including Indian heritage and moving through Philippine, Indonesian, Pakistani, Yemeni, Sudanese, Bangladeshi, Jordanian, Lebanese and Syrian traditions.