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OPEC, non-oil cartel members discuss production cuts

Prices are currently hovering around $50 a barrel, still too low for oil revenue-dependent nations

By - Oct 29,2016 - Last updated at Oct 30,2016

OPEC logo is pictured ahead of an informal meeting between members of the Organisation of the Petroleum Exporting Countries (OPEC) in Algiers, Algeria (Reuters file photo)

VIENNA — OPEC officials held talks with Russia and other non-cartel members Saturday in Vienna to debate how to implement a plan aimed at cutting oil output to reduce a global supply glut and bolster prices.

"The recovery process has taken far too long and we cannot risk delaying the adjustment any further," said Sanusi Barkindo, the secretary general of the Organisation of the Petroleum Exporting Countries, in his opening remarks.

"Therefore, we should be calling for maximum commitment from all OPEC and non-OPEC countries in this regard and we should expect no less as this is our commitment, not only to our member countries but to the global community."

Moscow's delegation declined to comment before the meeting. But OPEC and Russia — the world's top oil producer along with Saudi Arabia — have recently held several meetings to tighten cooperation to ease price volatility.

"There is an acute and urgent need to speed up the rebalancing," Russian Energy Minister Alexander Novak said during a recent Vienna visit.

Other non-OPEC members attending the technical committee meeting included delegations from Oman, Bolivia and Azerbaijan.

"We will discuss the recognised positions of countries, first of all the OPEC countries," Azerbaijan's Energy Minister Natig Aliyev told reporters in Vienna.

He added that some measures needed "to be taken to stabilise the market".

On Friday, OPEC-only members, led by oil kingpin Saudi Arabia, had already met to try and hammer out details of the plan ahead of a summit in late November.

In a surprise move, the cartel last month agreed a deal to trim production by up to 750,000 barrels per day to between 32.5 and 33 millions per day.

The announcement of the first such move since 2008 sent prices surging.

 

Iran exempted 

 

Production has outpaced demand over the past two years, with the resulting supply glut hammering prices from highs of more than $100 a barrel in June 2014 to near 13-year lows below $30 in February this year.

Prices are currently hovering around $50 a barrel, still too low for oil revenue-dependent nations.

But obstacles remain to the new accord as some OPEC members refuse to lower their output. 

Iran, Saudi Arabia's bitter geopolitical rival, was exempted from the cuts as it is still ramping up production depleted by years of crippling Western economic sanctions lifted only in January.

Meanwhile, Iraq also recently said it should not participate in the deal because it is waging a war against the Daesh group. 

Some analysts say Baghdad's position risks derailing implementation of the OPEC agreement.

Ex-Aramco worker in Embraer bribe case — Saudi firm

By - Oct 29,2016 - Last updated at Oct 29,2016

RIYADH — A former employee of Saudi state oil company, Aramco, received a bribe in return for the purchase of airplanes from Embraer SA of Brazil, the Saudi firm said on Friday.

The statement came after the Brazilian aerospace company on Monday settled with US authorities for $205 million over bribery allegations in the Dominican Republic, Saudi Arabia and Mozambique.

According to a joint announcement by the US Justice Department and Securities and Exchange Commission, the alleged bribery included $1.7 million to an official at a Saudi state enterprise for a $93 million sale of three aircraft.

"Saudi Aramco's internal investigations established that a former Saudi Aramco employee was involved in receiving a bribe in return for facilitating the purchase of three aircraft from Embraer," Aramco said in a statement.

"These finding led the company to apply maximum disciplinary actions against its former employee."

Aramco said the case dated from 2012 when an internal audit led to the identification of violations.

"This prompted Saudi Aramco to proactively initiate an internal investigation with the cooperation of concerned authorities in Saudi Arabia."

The oil company said it cooperated with foreign agencies also probing Embraer's transactions.

The Saudi firm "has ceased all future dealings with Embraer" and will take legal action against the Brazilian company when all ongoing investigations conclude, it said.

The US Justice Department said Saudi authorities have brought charges against two individuals.

Saudi Aramco is at the heart of a Saudi economic diversification plan, Vision 2030, which would see less than 5 per cent of the company floated on the stock market.

It would be the world's largest-ever initial public offering.

Vision 2030 calls for greater transparency and accountability among government agencies.

Under the US Foreign Corrupt Practices Act, it is illegal for companies and people to pay bribes to foreign officials to win business.

Embraer fell under US jurisdiction because its shares are traded on the New York Stock Exchange.

Belgium breaks deadlock on EU-Canada trade deal

Accord requires all EU members’ approval

By - Oct 27,2016 - Last updated at Oct 27,2016

A man dressed like a clown with a sticker and a T-shirt reading ‘TTIP game over’ gestures as behind him demonstrators face Belgian police officers during a protest against CETA at European Union Commission headquarters in Brussels on Thursday (AFP photo)

BRUSSELS — Belgium announced a breakthrough on Thursday to save a landmark EU-Canada free trade deal by winning over domestic holdouts who threatened to torpedo the agreement and further damage Europe's international credibility.

News of the intra-Belgian agreement came too late for EU leaders and Canadian Prime Minister Justin Trudeau to go ahead with a signing ceremony in Brussels on Thursday.

"This is an important agreement that is on the table," Prime Minister Charles Michel told a press conference after marathon talks to win over Belgium's fractious French-speaking communities.

Under complex constitutional arrangements, Michel needed all of Belgium's regional governments to back the deal before he could sign up.

In turn, the accord requires all 28 EU members for approval.

Confirmation of the agreement came swiftly from Paul Magnette, the head of the southern French-speaking Wallonia region who has led objections to the Comprehensive Economic Trade Agreement (CETA).

Canada's Foreign Minister Stephane Dion hailed the move to break the logjam.

 

'Cautiously optimistic' 

 

"If it materialises, it's excellent news," he said during a visit to Paris, adding he was "cautiously optimistic".

Donald Tusk, the president of the European Council, hailed the "good news" as he tweeted that he would contact Trudeau "once all procedures are finalised for EU signing CETA”.

Tusk had hoped until Wednesday morning for a signing summit but it proved impossible as the talks dragged on.

A European source told AFP there was no new date set yet.

The accord must, meanwhile, be vetted by the remaining 27 EU member states and institutions as well as by Wallonia and other regional governments who, Michel said, have pledged to give their answer before midnight (22:00 GMT) Friday.

EU ambassadors reached an informal agreement on the Belgian documents and have asked their capitals to confirm by midnight Friday, according to Belgian, French and Luxembourg officials.

A European source told AFP on condition of anonymity that the summit deadline had been more a "tool" to apply pressure for an agreement than a must-have event.

The stakes have been high as Belgium had become a lighting rod for warnings that the EU's international standing, already battered by Britain's shock June Brexit vote, would suffer further if seven years of trade negotiations were to go to waste.

After hitting deadlock in talks with Walloon leaders last week, an emotional Chrystia Freeland, Canada's trade minister, dismissed Brussels as "incapable" of achieving an international agreement.

Tusk later warned that Europe risked undermining its global standing if it failed to strike a trade deal with as close an ally as Canada. 

Hinging on CETA's outcome are complex EU trade negotiations with other countries, including an even bigger and more controversial deal with the United States. 

Around 100 demonstrators banging pots protested on Thursday outside the headquarters of the European Commission, the EU executive.

Similar protests are held regularly by opponents of the EU-US talks known as TTIP.

 

'Extremely happy' 

 

The CETA pact would link the EU's single market of 500 million people — the world's biggest — with Canada's 10th largest global economy in what would be the most ambitious tie-up of its kind so far.

In almost a week of drawn-out talks, leaders of Wallonia, a 3.5 million-strong region south of Brussels, had demanded guarantees that CETA would not harm local farming and other interests.

Magnette particularly opposed terms of the deal intended to protect international investors which critics say could allow them to force governments to change laws against the wishes of the people.

"We have finally found an agreement among the Belgians that will now be submitted to European institutions and our European partners," Magnette said.

"Wallonia is extremely happy that our demands were heard," he added.

With the remaining political hurdles hopefully cleared, Tusk may be free to phone Trudeau on Saturday to discuss the next steps, including possibly a signing ceremony, an EU source told AFP.

 

Once the treaty is signed, it will be applied provisionally pending ratification by all EU member state parliaments, a process that could take years.

Kuwait starts up first solar power plant

By - Oct 27,2016 - Last updated at Oct 27,2016

UMM GUDAIR, Kuwait — Kuwait began operating its first-ever solar power plant on Wednesday at the Umm Gudair oil field, a landmark for the OPEC member country as it seeks to diversify its sources of energy to meet fast-rising local demand.

The 30-million Kuwaiti dinar ($99 million) project, Sidrah 500, will produce 10 megawatts (MW) of electricity, half of which will be supplied to the public electricity network.

The other half will be used to supply the oil field itself, which is owned by Kuwait Oil Company (KOC), a subsidiary of state-run Kuwait Petroleum Corporation (KPC).

Kuwait announced plans last year to generate 15 per cent of its energy needs via renewable sources by 2030.

Consumption of electricity is rising rapidly in Kuwait, as throughout the rest of the Gulf region. The country’s electricity and water minister estimated last year that demand would reach 30,000MW per day by 2030.

In a speech at the project launch, KOC Chief Executive Jamal Ja’afar told reporters that Sidrah 500 represented the country’s first step towards that goal.

“We hope that by 2020 we can make 20 per cent of the electricity which will be needed to run KOC from alternative energy,” he said.

The opening of the plant follows increased interest in renewables in Kuwait and across the Gulf region in recent years, as the scale of the consumption challenge has become clear.

The Kuwait Institute for Scientific Research signed a contract last year with Spain’s TSK to establish the country’s first solar thermal energy plant, with a planned production capacity of 50MW.

The institute’s Shaqaya initiative is also planning solar and wind projects in the northwest of the country.

 

Abu Dhabi-based green energy firm Masdar has invested more than $1.7 billion in renewable energy projects since it was established a decade ago. 

Hopes rise for breakthrough in EU-Canada trade talks

Belgian region of Wallonia still holding out on key terms, despite EU’s strong support of ceta

By - Oct 26,2016 - Last updated at Oct 26,2016

Premier of the Belgian region of Wallonia Paul Magnette arrives to attend an emergency meeting of all Belgium federal entities on the EU-Canada Comprehensive Economic and Trade Agreement in Brussels on Wednesday (AFP photo)

BRUSSELS — European leaders voiced hope for a breakthrough Wednesday in troubled negotiations for a landmark EU-Canada free trade deal, despite a word of caution from a Belgian region holding out on key terms. 

Canadian and European Union leaders warn that the EU's international standing, already battered by Britain's shock June Brexit vote, will suffer another blow if seven years of trade negotiations go to waste because of internal Belgian politics.

However, EU leaders sounded optimistic that Belgium's federal government would finally win over holdouts in its French-speaking communities and endorse a deal that requires unanimous approval from all 28 EU member states.

Belgium's centre-right federal government as well as its Dutch-speaking and French-speaking community leaders, including those from the southern region of Wallonia, resumed the latest of many rounds of talks in Brussels in a bid to break the deadlock.

"I trust that an agreement will be reached in the course of today with Belgium, Wallonia and other parts of the country," European Commission chief Jean-Claude Juncker told the European Parliament in Strasbourg, France.

But Juncker did not know if the deal would be reached in time to go ahead with a scheduled signing summit on Thursday with Canadian Prime Minister Justin Trudeau.

'Summit still possible' 

Donald Tusk, the European Council president who would host the summit, told the European Parliament he hoped the agreement would be finalised soon.

"The summit tomorrow is still possible," Tusk added.

Tusk also warned that the EU would undermine its global standing "if we cannot make the case for free trade with a country like Canada, the most European country outside Europe and a close friend and ally".

The European Commission, the EU executive, and the European Council, which groups the member states, are pushing hard for the deal with Canada known as the Comprehensive Economic Trade Agreement (CETA).

The pact would link the EU's single market of 500 million people — the world's biggest — with the 10th largest global economy in what would be the most ambitious such tie-up yet.

Hinging on the outcome are trade negotiations with other countries, including those with the United States which are also in difficulty.

Leaders of Wallonia, a 3.5 million-strong region south of Brussels, want guarantees CETA will not harm local interests.

Critics especially oppose terms of the deal intended to protect international investors which they say could allow them to force governments to change laws against the wishes of the people.

"There remain two important subjects, even if we have advanced on many things," the socialist head of Wallonia's government Paul Magnette told reporters Wednesday, referring to the investment clause and agriculture issues.

Magnette has repeatedly warned that he will break off the talks if he keeps receiving "ultimatums" to strike a quick deal.

If the Belgian talks reach consensus later Wednesday, the documents would have to be sent for review first to the ambassadors of the 28 EU member states and then back to the various layers of government, including the parliament in Wallonia.

CETA has become a lightning rod for growing popular opposition to international trade deals, chief among them the even more controversial EU-US trade deal called TTIP.

Wallonia premier says region not opposed to CETA

By - Oct 25,2016 - Last updated at Oct 26,2016

Belgium's Walloon Premier President Paul Magnette speaks to journalists upon his arrival for a meeting on the Comprehensive Economic and Trade Agreement at the foreign minister's office in Brussels on Tuesday (AFP photo)

PARIS — Wallonia Premier Paul Magnette said the Belgian region was not opposed to a planned EU-Canada free trade deal in itself but that an arbitration scheme needed to be dropped and public services protected.

All 28 EU governments support the Comprehensive Economic and Trade Agreement (CETA), but Belgium cannot give assent without backing from five sub-federal administrations. French-speaking Wallonia has steadfastly opposed it.

"Let's be clear, I'm not a herald of anti-globalisation, I want a deal," Magnette told French daily Liberation in an interview published on Tuesday.

But he said a court system specifically created to resolve disputes between investors and governments could be exploited by big business to dictate public policy.

"I would prefer that this entity disappears pure and simple and that we rely on our courts," he said. "Or at the very least, if we want an arbitration court, it must provide equivalent guarantees to domestic ones."

Magnette referred to a mechanism known as Investor-state dispute settlement (ISDS), which allows foreign companies to challenge state interference, such as expropriation.

Typically, the lawsuit is brought before a panel of private arbitrators, its members appointed by the investor and state in dispute. The mechanism has been criticised because of lawsuits brought by companies against tighter rules on public health, environmental and labour standards.

Magnette said Canada agreed with Wallonia on this issue. "In truth, it's a debate that is purely internal to the European Union," he said.

 

Magnette said Wallonia was ready to accept a legally binding amendment to CETA that would interpret provisions on arbitration courts, public services and enironmental legislation, although it would have preferred a complete re-negotiation.

Turkey to seek bids for $3b bridge

By - Oct 25,2016 - Last updated at Oct 25,2016

ANKARA — Turkey will seek bids in January to build and operate a 10 billion lira ($3.25b) suspension bridge over the Dardanelles Straits and has already received interest from Asian and Turkish contractors, Prime Minister Binali Yildirim said on Tuesday.

Construction on the 3.7km bridge named "Canakkale 1915" is expected to start on March 18, 2017 — the anniversary of one of the Ottoman Empire's final victories — and take around five years to complete, Yildirim told reporters.

"Works have been completed for the Canakkale 1915 bridge. We will hold a tender and take offers on January 26," Yildirim said in comments broadcast live on television, estimating the construction cost alone at around 10 billion liras.

Turkey has forged ahead with ambitious infrastructure projects under President Recep Tayyip Erdogan, including one of the world's largest suspension bridges across the Bosphorus Strait in Istanbul which opened in August.

Other planned megaprojects include the world's biggest airport in Istanbul and a huge canal that would render a large chunk of the city an island.

Yildirim said the time frame in which contractors could complete the Canakkale bridge and how quickly they would hand operating rights over to the state would be factors in considering the bids. Japanese, Korean, Chinese and Turkish groups had shown interest in the project, he said.

Turks mark what they call the Canakkale war on March 18, when Ottoman forces repelled an Allied World War I assault on the Dardanelles — the sole maritime outlet for arch foe Russia — sinking a French battleship and destroying British warships.

EU, Canada believe trade summit 'still possible' —Tusk

By - Oct 24,2016 - Last updated at Oct 24,2016

In this September 20 photo, protesters hold an Anti-CETA banner during a demonstration against international trade agreements in Brussels (AP photo)

BRUSSELS — EU president Donald Tusk said he and Canadian Prime Minister Justin Trudeau believe a summit on a landmark EU-Canada trade accord can go ahead as planned Thursday, even though Belgium has yet to sign off on the deal.

"Together with PM Justin Trudeau, we think Thursday's summit still possible. We encourage all parties to find a solution. There's yet time," Tusk tweeted on Monday.

Tusk gave no further information in his tweet and officials were not immediately available to clarify whether his statement meant that the trade pact would be signed on Thursday in Brussels, as originally planned, or whether it would involve more talks.

Earlier, Belgian Prime Minister Charles Michel said objections by several regional administrations meant he could not endorse the agreement, which requires all 28 European Union member states to approve.

"We are not in a position to sign CETA," Michel said after brief talks with the country's regional leaders in Brussels broke up without an accord on the Comprehensive Economic and Trade Agreement (CETA).

Leaders of Wallonia, a 3.5 million strong French-speaking region south of the capital Brussels, have led opposition to CETA, arguing they need more binding reassurances that local interests will not suffer as a result.

Tusk on Sunday had called for answer from Belgium by late Monday so he could then call Trudeau and tell him whether or not to come to Brussels for the signing ceremony.

Wallonia leader Paul Magnette said as he left Monday's talks that he could not endorse the accord under what he called the pressure of an ultimatum. 

 

"It is evident that in the current circumstances, we cannot give a 'yes' today," he said.

QAIA receives over 770,000 passengers in September

By - Oct 24,2016 - Last updated at Oct 24,2016

AMMAN — Witnessing increased travel during Hajj season and the Eid Al Adha holiday, Queen Alia International Airport (QAIA) welcomed 774,306 passengers during September 2016, resulting in a marked 9.3 per cent increase in passenger traffic (PAX) in comparison to the same month last year.

According to figures released by Airport International Group — the Jordanian company responsible for the rehabilitation, expansion and operation of QAIA — the Airport’s top five routes during the month of September were from Dubai, Jeddah, Kuwait, Cairo and Riyadh.

During September, QAIA registered a 2 per cent year-on-year climb in aircraft movements (ACM); receiving 6,929 ACM as opposed to last year’s 6,796 ACM. Conversely, the Airport witnessed a notable 14.7 per cent drop in cargo traffic, handling 7,083 tonnes of cargo throughout the month set against the 8,308 tonnes handled in September 2015. 

As of the end of September, the Airport has welcomed a total of 5,850,651 passengers in 2016, giving rise to a 5.7 per cent year-to-date (YTD) increase in PAX compared to the same period last year. Similarly, QAIA has registered a total of 56,923 ACM and 75,287 tonnes of handled cargo so far this year, causing YTD increases of 4.2 per cent and 2.3 per cent, respectively.

“In addition to the boost in travel seen at the close of the Hajj season, September also witnessed increased leisure travel during the ensuing nine-day Eid Al Adha holiday, which provided regional travellers with plenty of time to journey abroad,” said Airport International Group CEO, Kjeld Binger. 

 

“On the heels of the inauguration of the second phase of QAIA’s New Terminal Project, our outlook for the remainder of the year remains positive, as we look forward to building on our progress and continuing to reaffirm the Airport’s position as Jordan’s prime gateway to the world,” he added.

Umniah ranked fastest network in Jordan — Speedtest

By - Oct 24,2016 - Last updated at Oct 24,2016

AMMAN — Umniah's network was ranked as the fastest network in Jordan, according to Speedtest by Ookla, which came up with the result after testing and verifying hundreds of thousands of consumer-initiated tests.

Around 300,000 consumer-initiated tests in 19 Jordanian cities were verified and checked during the first six months of 2016, Eric Emerson, representative of Speedtest by Ookla, said at a press conference Monday.

"These tests are conducted by the users themselves on various types of devices and operating systems…The analysis of the data showed that Umniah's network is the fastest in Jordan compared to the other operators," he added.

To determine the fastest networks, US-based Ookla, which is a global Internet testing and metrics service, analyses the fastest Internet available in each country, including mobile devices, and ranks the country’s networks by average download speed. 

Umniah's CEO Ziad Shatara said the company will boost investments in the network to meet rising demand on data.

"Last year, Umniah invested $300 million to create new 3G and 4G LTE networks, as well as Broadband Fixed LTE," he said during the press conference.

These investments are expected to reach $500 million by the end of 2017, he added.

Increasing viewership of video content is driving demand on faster Internet services, he indicated. 

By the end of the first quarter of this year, the number of Internet users in Jordan reached almost 6 million and is expected to grow significantly with the launch of Fourth Generation (4G) services.

By the end of March this year, Internet penetration stood at 76 per cent, with some 5.9 million users, compared to 75 per cent at the end of 2014, according to a report by the Telecommunications Regulatory Commission.

The report showed that there were 1.9 million Internet subscribers in Jordan by the end of March — an Internet subscription penetration rate of about 25 per cent. 

Of the total Internet subscribers, some 1.5 million were mobile broadband subscribers, followed by ADSL (218,459 subscribers) and WiMax (121,754 subscribers), according to the report.

 

Speedtest.net is a web service that provides free analysis of Internet access performance metrics, such as connection data rate and latency. It was founded by Ookla in 2006, and is based in Seattle, Washington.

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