NEW ORLEANS, Louisiana: The blockbuster BP oil spill trial opened yesterday with a scathing attack on the poor safety standards which led to the worst environmental disaster in US history.
Billions are at stake in the New Orleans courtroom where a federal judge is tasked with determining how much BP and its subcontractors should pay for the devastating Gulf of Mexico spill.
US prosecutors are determined to prove that gross negligence caused the April 20, 2010 blast that killed 11 workers and sank the BP-leased Deepwater Horizon rig, sending millions of barrels of oil gushing into the sea.
BP is equally determined to avoid a finding of gross negligence, which would drastically increase its environmental fines to as much as $ 17 billion.
BP is also hoping to shift much of the blame — and cost — to rig operator Transocean and subcontractor Halliburton, which was responsible for the runaway well's faulty cement job.
Transocean's poor safety record was the focus of the first lawyer to speak, Jim Roy of the plaintiffs steering committee which represents thousands of individuals and business impacted by the spill.
Roy told the court that the Swiss giant's top safety official on the multimillion dollar rig "was not even minimally competent for this job."
"His training consisted of a three-day course. Amazingly, he had never been aboard the Deepwater Horizon," Roy said, noting that the blowout was the seventh major incident aboard a Transocean rig in the space of 17 months.
It took 87 days to cap BP's runaway well, which blackened beaches in five states and crippled the region's tourism and fishing industries in a tragedy that riveted the nation.
The British energy giant has already resolved thousands of lawsuits linked to the deadly disaster out of court, including a record $ 4.5 billion plea deal with the US government in which BP pleaded guilty to criminal charges and a $ 7.8 billion settlement with people and businesses affected by the spill.
BP spent more than $ 14 billion on the response and cleanup and paid another $ 10 billion to businesses, individuals and local governments that did not join the class action lawsuit.
It remains on the hook for billions in additional damages, including the cost of environmental rehabilitation.
The first phase of the civil trial at the federal courthouse in New Orleans will determine the cause and apportion fault for the disaster.
The second phase, not expected to start for several months, will determine exactly how much oil was spilled in order to calculate environmental fines.
The US government on Tuesday agreed not to count the 810,000 barrels of oil BP siphoned out of the runaway well before it could spill into the sea.
But a complicated battle looms over the rest, as BP insists the government overestimated how much oil gushed out of the well by "at least 20 percent."
The third phase will deal with environmental and economic damages.
"It's a very complex piece of litigation," said Ed Sherman, a Tulane Law professor who has closely monitored the case. While the $ 7.8 billion settlement reached last year resolved most of the economic and medical claims, scores more remain from insurers, racetracks, casinos, financial institutions and state and local governments.
Despite BP's avowal to "vigorously" defend itself against the gross negligence charge, many experts believe it could still reach an out-of-court settlement with the US government over environmental fines.
"BP cannot let this case proceed to judgment because the liability exposure is too great and the facts are squarely against them," Loyola University Law School professor Blaine LeCesne told AFP.
"Even if settlement isn't reached before trial it can still happen once the trial is under way."
Protesters camped outside the courthouse said they hope that Judge Carl Barbier will assess the maximum penalties possible under the law.
"This is not just about something that's going to take decades to clean up," said Chris Canfield, vice president of Gulf of Mexico conservation and restoration for the National Audubon Society.
"This is about making sure that bad actors are punished for a series of decisions that put profits ahead of people and the environment."
BP oil spill trial opens with scathing attack
BP oil spill trial opens with scathing attack
Saudi Aramco lowers July oil prices for Asian markets
RIYADH: Saudi Aramco has slashed its official selling price for crude oil destined for Asia in July, the company confirmed in an official statement on Wednesday.
The state-owned oil giant cut the price of its benchmark Arab Light crude by $0.20, setting it at $1.20 per barrel above the average of Oman and Dubai crude prices.
Saudi Aramco prices its crude oil across five density-based grades: Super Light (greater than 40), Arab Extra Light (36-40), Arab Light (32-36), Arab Medium (29-32), and Arab Heavy (below 29).
The company’s monthly pricing decisions impact the cost of around 9 million barrels per day of crude exported to Asia and serve as a pricing benchmark for other major regional producers, including Iran, Kuwait, and Iraq.
In the North American market, Aramco set the July OSP for Arab Light at $3.50 per barrel above the Argus Sour Crude Index.
Aramco determines its OSPs based on market feedback from refiners and an evaluation of crude oil value changes over the past month, taking into account yields and product prices.
Plans by OPEC+ producers to increase output by 411,000 barrels per day in July are also weighing on the market.
Yet, there was some support as wildfires reduced Canada’s production by some 344,000 bpd, according to Reuters calculations.
PIF-backed Lucid inks graphite supply deal to bolster US EV battery material sourcing
RIYADH: Saudi Public Investment Fund-backed Lucid Group has signed a multi-year supply agreement with Graphite One to procure US-sourced natural carbon, further reinforcing its localized supply chain for electric vehicle production.
The company, of which PIF is the majority owner with 1.77 billion shares, has inked the deal as part of its broader strategy to bolster access to critical raw materials sourced domestically, following similar supply arrangements with Graphite One and Syrah Resources.
The materials will be utilized in future Lucid vehicles via directed supply agreements with the company’s battery cell suppliers.
“A supply chain of critical materials within the United States drives our nation’s economy, increases our independence against outside factors or market dynamics, and supports our efforts to reduce the carbon footprint of our vehicles,” said Marc Winterhoff, interim CEO at Lucid.
The newly signed agreement will see Lucid and its battery partners receive natural graphite extracted from the Graphite Creek deposit near Nome, Alaska, with production expected to commence in 2028.
It builds on a 2024 deal with Graphite One, under which Lucid will receive synthetic graphite from the company’s proposed active anode material facility in Warren, Ohio, also set to begin production in 2028.
“This agreement complements the deal we struck with Lucid in 2024 – which marked the first synthetic graphite agreement between a US graphite developer and a US EV company,” said Anthony Huston, CEO of Graphite One.
He continued: “We made history then – and we’re continuing to make history now as we build momentum for our efforts to develop a fully domestic graphite supply chain, to meet market demands and strengthen US industry and national defense.”
Lucid is also set to receive natural graphite active anode material from Syrah Resources beginning in 2026.
In April, the company closed a $1.1 billion offering of convertible senior notes due in 2030, just days after it reported first-quarter deliveries of 3,109 vehicles — a 58 percent increase from the same period last year.
Closing Bell: Saudi main index closes in green before Eid holidays
RIYADH: Saudi Arabia’s Tadawul All Share Index climbed on Wednesday, gaining 172.1 points, or 1.59 percent, to close at 11,004.53.
The total trading turnover on the benchmark index was SR4.61 billion ($1.23 billion), with 191 listed stocks advancing and 50 declining.
The Kingdom’s parallel market Nomu surged by 257.9 points to close at 27,307.74.
Meanwhile, the MSCI Tadawul Index edged up by 1.67 percent to 1,406.49.
The best-performing stock on the main market was Saudi Industrial Investment Group, with its share price surging 7.03 percent to SR17.36.
The share price of ACWA Power Co. also rose by 6.72 percent to SR269.80.
Al-Babtain Power and Telecommunication Co. saw its stock price increase by 5.40 percent to SR5.40.
Conversely, the share price of Saudi Steel Pipe Co. fell by 6.33 percent to SR56.20.
Saudi Research and Media Group also saw a dip, with its share price easing 2.26 percent to SR127.
On the announcements front, Saudi National Bank completed its offer of Saudi riyal-denominated Additional Tier 1 sukuk, with the settlement finalized on June 3.
According to a statement on the Saudi Exchange dated May 11, the issuance was conducted through a private offer to eligible investors in the Kingdom. The total value of the sukuk offering amounted to SR1.73 billion.
The bank issued 1,730 sukuk, each with a par value of SR1 million. The sukuk will offer an annual return of 6 percent from the issue date until June 3, 2030.
The share price of Saudi National Bank increased by 0.88 percent to close at SR34.45.
The announcement coincided with the implementation of the unified regulation for cross-border registration of investment funds among Gulf Cooperation Council countries, which came into effect in 2025, according to the Capital Market Authority.
The regulation outlines requirements for registering and marketing investment funds across GCC countries and introduces a dedicated regulatory guide.
It aims to clarify procedures for handling both local and Gulf-based funds, enhance financial market services, and reduce regulatory challenges.
Additionally, the framework seeks to support mechanisms that attract international investments to the Saudi financial market and boost foreign ownership in investment funds.
The broader goal is to improve liquidity in regional financial markets, enhance the competitiveness of GCC economies, and foster integration by unifying the policies and systems governing domestic, regional, and foreign investment activities.
The regulation also aims to ensure a transparent and stable investment environment.
Under the framework, the legislative committee in each host country will have the authority to set standards for approving fund registrations and supervising funds within its jurisdiction, including overseeing the appointed agent and their interactions with investors.
Cross-border registration must be conducted through the capital market authorities of both the fund’s country of origin and the host country.
The regulation allows investment funds established in any GCC member state to be promoted in other countries applying the framework.
It also outlines the process for offering Saudi funds in Gulf markets, with a focus on aligning with regulatory review mechanisms and cross-border registration requirements to ensure full compliance with approved guidelines.
Saudi POS spending hits $4bn pre-Adha, fueled by increased spending across all sectors
RIYADH: Saudi Arabia’s point-of-sale transactions climbed 33 percent to SR15.5 billion ($4.15 billion) in the week preceding Eid Al-Adha, driven by increased spending across all sectors.
The latest data from the Saudi Central Bank, also known as SAMA, showed that the clothing and footwear sector led the growth seen in the week ending May 31, registering the largest jump in transaction value, up 72.7 percent to SR1.2 billion.
The sector also saw a 61.6 percent rise in the number of transactions, reaching 8.6 million.
The education sector followed, recording a 61.6 percent increase in transaction value to SR242.1 million. Telecommunication spending ranked next, rising 44.5 percent to SR136.2 million, with transactions up 19.9 percent to 2.1 million.
Food and beverages — the sector with the biggest share of total POS value — recorded a 34.2 percent increase to SR2.2 billion.
Transportation spending rose 29.7 percent to SR898.8 million, while restaurants and cafes saw a 24.3 percent increase, totaling SR2 billion and claiming the second-biggest share of this week’s POS.
The smallest spending gains were in hotels, rising by 9 percent to SR207.5 million, and construction and building materials, which increased by 12.9 percent to SR267.6 million.
Health outlays rose by 28.4 percent to reach SR952.8 million, while the public utilities sector increased by 29.1 percent to SR55.3 million.
Spending on electronics followed the trend, rising 23.1 percent to SR187.2 million, and recreation and culture edged up 42.5 percent to SR324.3 million.
Miscellaneous goods and services claimed the third-largest share of total transactions value, with an uptick of 34.4 percent to SR1.9 billion.
The top three categories — food and beverages, miscellaneous goods and services, and clothing and footwear — accounted for 39.9 percent of the week’s total spending, amounting to SR6.2 billion.
Geographically, Riyadh dominated POS transaction value, with expenses in the capital reaching SR5.4 billion, a 42.7 percent increase from the previous week.
Jeddah followed with a 27.7 percent rise to SR2.1 billion, while Dammam ranked third, up 25.1 percent to SR776.5 million.
Hail saw the biggest weekly increase in transaction value, inching up 52.6 percent to SR262.6 million, followed by Tabuk with a 51.3 percent uptick to SR323.6 million.
Hail recorded 4.3 million deals in transaction volume, up 24.7 percent, while Tabuk reached 5.2 million transactions, rising 21.1 percent.
Hong Kong-based Gaw Capital plans to step up Middle East investments
- Gaw Capital targets UAE, Saudi Arabia for investments
- Firm plans separate investment vehicle for Middle East
HONG KONG: Gaw Capital plans to bolster investments in the Middle East, its top executive said, as the Hong Kong-based multi-asset investment manager looks to tap into the post-COVID boom in the region’s real estate and other industrial sectors.
Christina Gaw, Gaw’s managing principal and global head of capital markets, said the firm is looking at real estate and other businesses in the UAE and Saudi Arabia as their population has a large demand for real assets.
Gaw acquired a residential building in Abu Dhabi in May for more than $150 million, and signed a pact in November with Expo City Dubai and Lingang Group to explore creating the Expo Life Science Park in Dubai.
The firm, which had $34.4 billion of assets under management as of the end of 2024, expects to close another deal in the region in the second half of the year, said Gaw, whose two elder brothers founded the company in 2005.
Gaw’s interest in the Middle East comes against the backdrop of a post-pandemic property boom there, fueled by business demand and foreign investment.
“(The Middle East) is very wealthy, what can you bring to them? It’s the expertise ... they want to attract talents and different businesses,” Gaw said in an interview. “And we have tenants and business who want to expand there, so we act as a bridge ... to provide them funding and local connections.”
The firm plans to set up a separate vehicle to build an investment track record in the Middle East first before using its main funds in the future.
Gaw, whose main focus has been Greater China and in recent years in Japan and Australia, is also raising a $2 billion fund for private equity and private credit opportunities in Asia Pacific.
The fund is receiving interest from Middle Eastern and Asian investors, as well as in North America, who are looking to diversify amid changing geopolitics.
“Currently the US has many uncertainties. Investors who have been overweighting the US and have done well for many years now may say, ‘I need a little level play’,” Gaw said.
“Asia, on the other hand, has underperformed in the past five years, creating relative value, and people feel they need a repositioning and add some positions in Asia.”
Besides the Middle East, Gaw this year also made investments including more than $1 billion in the Tokyu Plaza Ginza mall in Tokyo with a joint venture partner, and a 45 percent stake in Agility Asset Advisers, a real estate manager in Japan.
In its home market, Gaw said that the firm was focusing on a private credit business linked to upper-middle class residential projects, and was in talks with developers with liquidity needs as well as banks that are selling their non-performing loans.
