German firm wins mega order to build olive oil mill in Saudi Arabia

German company GEA has won an order to build a massive olive oil mill in Saudi Arabia that will be the largest in Asia. (Shutterstock)
Updated 19 March 2019
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German firm wins mega order to build olive oil mill in Saudi Arabia

  • Scope of project, located in Al-Jouf, expected to encompass 5 million olive trees
  • Saudi Arabia investing heavily in developing domestic food industry

LONDON: A German company has won an order to build a massive olive oil mill in Saudi Arabia that will be the largest in Asia.
GEA won the order from The National Agricultural Development Company (NADEC), one of the largest agricultural and food-processing companies in the Middle East.
The scope of the project, located in the region of Al-Jouf, is expected to encompass 5 million olive trees from a single farm of 3,000 hectares, GEA said in a statement on Tuesday.
“Once the construction process is completed, this facility will be largest and most modern olive oil mill in Asia,” said Rafael Cárdenas, head of the Center of Excellence for Olive Oil at GEA.
Gulf states including Saudi Arabia, the region’s largest economy, are investing heavily in developing their domestic food industries in an effort to reduce their reliance on imports and boost their food security.
The contract to build the Al-Jouf olive oil mill is the second phase of an ongoing project and will enlarge the existing olive oil plant that was built in 2016.
Al-Jouf Agriculture Development Company is the largest modern olive farm in the world.


Saudi Aramco concerned over Gulf attacks, has capacity to meet demand: CEO

Updated 25 June 2019
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Saudi Aramco concerned over Gulf attacks, has capacity to meet demand: CEO

  • ‘What’s happening in the Gulf is definitely a concern’
  • Aramco has no plan to increase its current maximum output capacity of 12 million barrels per day, given sizeable spare capacity

Saudi Aramco concerned over Gulf attacks, has capacity to meet demand: CEO
SEOUL: Saudi Aramco is concerned at recent actions in the Gulf but can meet its customers’ needs thanks to its experience and the availability of additional spare capacity, its chief executive said on Tuesday.
“What’s happening in the Gulf is definitely a concern,” Amin Nasser, president and chief executive of Saudi Arabia’s state oil giant, told Reuters in an interview.
“At the same time, we went through a number of crises in the past ... we’ve always met our customer commitments and we do have flexibility and the system availability in terms of available additional spare capacity.”
Recent tanker attacks in the Gulf have raised fears about safety of one of the world’s key shipping routes and pushed up oil prices.
Nasser, who is in Seoul ahead of a visit by Saudi Crown Prince Mohammed bin Salman, said Aramco has no plan to increase its current maximum output capacity of 12 million barrels per day (bpd), given sizeable spare capacity.
“If you look at our production, it is hovering around 10 million barrels per day so we do have additional spare capacity,” he said.
The oil giant is aiming to become a major global gas player, and has been developing its own gas resources as well as eyeing gas assets in the United States, Russia, Australia and Africa.
Nasser said Aramco is in talks to buy a stake in Russian gas company Novatek’s Arctic LNG-2 project, while exploring other investment opportunities in gas.
He confirmed the company is also in discussions about buying a stake in India’s Reliance Industries and in talks with other Asian companies about investments.
“We will continue to explore opportunities in different markets and different companies, and these things take time,” he said.
Nasser said the company, South Korea’s top oil supplier, was looking to increase its crude oil supplies to the country where it has partnerships and investments with South Korean refiners.
Saudi Aramco supplies between 800,000 barrels per day (bpd) and 900,000 bpd to South Korea, the world’s fifth-largest crude importer.