CAIRO: Libya resumed oil exports Wednesday, ending a hiatus that lasted months.
The resumption came after the country restarted production at oil fields following the firing of the chairman of the state-run oil corporation by one of the country’s rival governments.
A Malta-flagged tanker, Matala, docked at the Al-Sidra terminal to ship one million barrels of crude oil, the new leadership of the National Oil Corporation said. The vessel will then head to Italy, it said.
Two other tankers, the Marshall Islands-flagged Nissos Sifnos and the Liberia-flagged Crudemed, were scheduled to ship 1.6 million barrels Wednesday from the terminals of Zueitina Ras Lanuf, according to the NOC.
Last week, the NOC lifted a force majeure which was declared in April at several oil facilities after tribal leaders, aligned with powerful commander Khalifa Haftar, shut them down. The force of majeure is a legal maneuver that enables a company to get out of its contract obligations because of extraordinary circumstances.
Production was resumed Tuesday at several fields including the Sharara, the county’s largest, after three months of closure, the NOC announced.
Abdul Hamid Dbeibah, prime minister of the Tripoli-based government, announced last week the sacking of Mustafa Sanalla, the chairman of the NOC. He appointed Farhat Bengdara, a former governor of Libya’s central bank, to head the crucial oil company.
The move was rejected by Sanalla, who said Dbeibah’s government lacked legitimacy.
NOC’s new chairman, Bengdara, became known for his strong ties with the United Arab Emirates and Haftar, whose forces control the country’s eastern and much of southern areas.
His appointment was seen as a move by Dbeibah to gain control over oil revenues and gain the support of Haftar in his rivalry with Bashagha.
Libya is now ruled by two rival administrations, Dbeibah’s government in Tripoli and the government of Fathi Bashagha, who was appointed as prime minister by the east-based parliament in February and is now based in the city of Sirte.
The North African country has been wrecked by conflict since the 2011 NATO-backed uprising turned civil war toppled and later killed longtime dictator Muammar Qaddafi.
The country’s prized light crude has long been a feature of Libya’s conflict, with rival militias and foreign powers jostling for control of Africa’s largest oil reserves.
Tribal leaders, aligned with Haftar, in April shut down oil facilities, including the country’s largest oil field and major terminals, likely to deprive Dbeibah’s from funds.
The closures caused Libya’s daily output of oil to drop by two-thirds. The country’s production was at 1.2 billion barrels a day earlier this year.
The shutdown had come amid skyrocketing oil prices following the Russian war in Ukraine It also exacerbated the country’s electricity shortages and sparked protests, including one that resulted in the storming of the east-based parliament in Tobruk.
Libya says oil exports resumed after monthslong hiatus
https://arab.news/vck9z
Libya says oil exports resumed after monthslong hiatus
- A Malta-flagged tanker, Matala, docked at the al-Sidra terminal to ship one million barrels of crude oil
- Production was resumed Tuesday at several fields including the Sharara, the county’s largest
Oil Updates — crude drops, poised for biggest monthly fall in 3 years
SINGAPORE: Oil prices extended declines on Wednesday and were set for their largest monthly drop in more than three years as the global trade war eroded the outlook for fuel demand, while fears of mounting supply also weighed.
Brent crude futures fell by 83 cents, or 1.29 percent, to $63.42 per barrel by 10:30 a.m. Saudi time. US West Texas Intermediate crude futures dropped 92 cents, or 1.52 percent, to $59.50 a barrel.
Brent and WTI have lost 15 percent and 17 percent respectively so far this month, the biggest percentage drop since November 2021.
Both benchmarks slumped after US President Donald Trump’s April 2 announcement of tariffs on all US imports. They then sank further to four-year lows as China responded with its own levies against US imports, stoking a trade war between the top two oil-consuming nations.
Trump’s tariffs on imports into the US have made it probable the global economy will slip into recession this year, according to a Reuters poll.
China’s factory activity contracted at the fastest pace in 16 months in April, a factory survey showed on Wednesday.
Worries about demand amid the trade war have weighed on investor sentiment, said ANZ bank senior commodity strategist Daniel Hynes.
“There are also concerns that recent strength in US economic data was only temporary, due to stockpiling ahead of the tariffs that now appears to be abating,” he added.
US consumer confidence slumped to a nearly five-year low in April on growing concerns over tariffs, data showed on Tuesday.
Recent signs of a de-escalation in the trade wars, including a pair of orders Trump signed on Tuesday to soften the blow of his auto tariffs, eased some jitters among global investors.
That said, analysts believe the oil market will stay under pressure as the Trump administration continues to prioritize lower oil prices to manage inflation.
Oil prices were also undermined by fears of mounting supply from the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+.
Several OPEC+ members will suggest a ramp-up of output hikes for a second straight month in June, sources told Reuters last week. The group will meet on May 5 to discuss output plans.
On the supply front, US crude oil inventories rose by 3.8 million barrels last week, market sources said on Tuesday citing American Petroleum Institute data.
US government data on stockpiles is due at 5:30 p.m. Saudi time on Wednesday. Analysts polled by Reuters expect, on average, an 400,000 barrel increase in US crude oil stocks for last week.
Saudi Arabia’s PIF starts selling 7-year sukuk, document shows
RIYADH: Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, has begun accepting bids for the sale of benchmark-sized, dollar-denominated 7-year Islamic bonds, or sukuk, according to an arranging bank document seen by Reuters on Wednesday.
The indicative price for the sukuk sale has been placed around 145 basis points over US Treasuries, the document shows.
Last week, Reuters reported through sources that Gulf issuers, including Saudi Arabia’s $925 billion sovereign wealth fund, are preparing a series of bond offerings despite market volatility caused by US President Donald Trump’s tariff policies.
Saudi Arabia, Azerbaijan sign SME deal to strengthen trade ties
RIYADH: Saudi Arabia and Azerbaijan have signed a comprehensive agreement focused on strengthening economic collaboration through the development of small and medium-sized enterprises, in a move that underscores both nations’ commitment to enhancing bilateral trade and investment.
The memorandum of understanding was formalized during the 8th session of the Saudi-Azerbaijani Joint Committee, held in Riyadh. It was signed between Saudi Arabia’s Small and Medium Enterprises General Authority, known as Monsha’at, and Azerbaijan’s Small and Medium Business Development Agency, known as KOBIA.
The SME agreement aligns with Saudi Arabia’s Vision 2030 strategy, which prioritizes economic diversification and entrepreneurship. For Azerbaijan, it marks another step in forging strategic partnerships in the Gulf region to bolster private-sector growth and create new market opportunities for innovative enterprises.
In a statement posted on X, Monsha’at said: “In the presence of H.E Minister of Investment, Eng. Khalid bin Abdulaziz Al-Falih, and the Deputy Prime Minister of the Republic of Azerbaijan, Samir Sharifov, Monsha’at, signed a MoU with ‘KOBİA’ Agency, as part of the 8th session of the Saudi-Azerbaijani Joint Committee activities, to strengthen cooperation in supporting the SMEs and entrepreneurship’s growth between the two countries.”
The agreement encompasses a broad range of initiatives, including knowledge exchange, joint training programs, and support for technical innovation. It also promotes investment opportunities, cross-border partnerships, and institutional collaboration through exhibitions and shared platforms.
In a separate announcement, the Saudi Ministry of Investment revealed the signing of two additional memorandums of understanding between private-sector companies from both countries.
“These agreements cover the development of maritime infrastructure and the establishment of industrial and medical facilities in the Kingdom, including the production of biotechnology and oncology medicines, the establishment of research and development centers, and infrastructure for re-export warehouses,” the Ministry noted in a post on X.
The joint committee also reviewed a series of potential joint ventures aimed at strengthening cooperation across mutually beneficial sectors. These initiatives are closely aligned with both countries’ long-term goals for economic diversification.
Officials from Saudi Arabia and Azerbaijan emphasized the importance of fostering dynamic SME ecosystems as engines of job creation, innovation, and global competitiveness. By aligning policy frameworks and enabling institutional collaboration, the two nations aim to unlock greater private-sector engagement and regional trade expansion.
Closing Bell: Saudi main index closes in red at 11,746
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Tuesday, losing 38.43 points, or 0.33 percent, to close at 11,746.20.
The total trading turnover of the benchmark index was SR6.87 billion ($1.83 billion), as 86 stocks advanced, while only 157 retreated.
The MSCI Tadawul Index decreased by 5 points, or 0.33 percent, to close at 1,493.77.
The Kingdom’s parallel market, Nomu, dipped, losing 89.34 points, or 0.31 percent, to close at 28,331.37. This comes as 35 stocks advanced, while 43 retreated.
The best-performing stock on the main index was Arabian Contracting Services Co., with its share price surging by 9.88 percent to SR131.20.
Other top performers included Al-Baha Investment and Development Co., which saw its share price rise by 4.94 percent to SR4.25, and Sumou Real Estate Co., which saw a 3.93 percent increase to SR 46.25.
The worst performer of the day was Alistithmar AREIC Diversified REIT Fund, whose share price fell by 3.39 percent to SR9.41.
Saudi Tadawul Group Holding Co. and Saudi Kayan Petrochemical Co. also saw declines, with their shares dropping by 2.94 percent and 2.83 percent to SR185 and SR5.83, respectively.
On the announcements front, Alinma Bank announced its interim financial results for the first three months of the year, with net profit amounting to SR1.5 million, a 1.3 percent dip compared to the previous quarter.
The bank’s total comprehensive income saw a 56 percent increase in the first quarter of 2025 to reach SR1.6 million.
Saudi Ceramic Co. also announced its financial results for the same period, with its net profit dipping by 88.4 percent to SR20.8 million compared to the previous quarter. Similarly, the company’s total comprehensive income saw a decrease of 88.7 percent to SR20.8 million.
Saudi Ceramic Co.’s share price traded 3.15 percent higher on the main market to reach SR27.85.
In the first quarter of 2025, Astra Industrial Group’s net profits saw a 30.7 percent quarter-on-quarter increase to reach SR171.8 million. The group attributed the increase to an uptick in gross profit in the pharmaceuticals sector and a decrease in finance costs in the specialty chemical sector.
The group’s share price traded 0.52 percent lower to reach SR153.
Diriyah Co. awards $1.13bn contract for King Saud University relocation
JEDDAH: Saudi Arabia’s Diriyah Co. has awarded a SR4.22 billion ($1.13 billion) construction contract to relocate King Saud University’s utilities and administration offices, advancing infrastructure development in one of the Kingdom’s flagship urban projects.
The project was given to a joint venture between China Railway Construction Corp.’s Saudi branch and China Railway Construction Group Central Plain Construction Co., according to a press release.
Part of the Public Investment Fund’s giga-project portfolio, the Diriyah development is a 14 sq. km mixed-use district poised to house nearly 100,000 residents and provide office space for tens of thousands of professionals across the technology, media, arts, and education sectors.
Once complete, it is expected to generate 178,000 jobs, attract nearly 50 million annual visitors, and contribute SR70 billion to Saudi Arabia’s gross domestic product.
Jerry Inzerillo, group CEO of Diriyah Co., said: “We are delighted to announce this major contract to support King Saud University, whose campus adjoins the Diriyah development area.”
He emphasized that the agreement represents a significant step in furthering efforts to enhance both educational and infrastructural excellence in the Kingdom.
“We are proud to support one of the Kingdom’s leading academic institutions in delivering enhanced infrastructure services that will benefit both its students and the broader university community,” Inzerillo said.
The contract includes the design and construction of several critical infrastructure components. These include a district cooling plant, water storage facilities, and a sewage treatment plant, as well as an LPG/SNG plant and a diesel pumping station.
The scope also covers a utility tunnel, irrigation tanks, office buildings, warehouses, and maintenance workshops.
Li Chongyang, chairman of China Railway Construction International Group, said the project reflects the firm’s commitment to delivering world-class infrastructure to the highest standards.
“We look forward to contributing to the success of this iconic project and supporting the continued growth of King Saud University,” he said.
This latest award brings the total value of contracts issued by Diriyah Co. in 2025 to over $2.9 billion, as the area undergoes rapid transformation into a global destination aligned with Vision 2030.
