MOSCOW: Saudi Energy Minister Khalid Al-Falih said on Monday Russia was the only oil exporter undecided on extending an output deal between OPEC and its allies until the end of the year.
Al-Falih, in Moscow for talks with counterpart Alexander Novak, said there was disagreement in Russia over prolonging the pact at an upcoming meeting in Vienna.
“I think the remaining country to jump onboard is Russia. I will wait for them to work it out,” he said.
“There is a debate in the country about the volume Russia should be producing in the second half.”
President Vladimir Putin said last week that Russia and the Organization of the Petroleum Exporting Countries disagreed over what constituted a fair oil price, but that they would decide at the meeting.
Igor Sechin, chief executive of Rosneft, warned against extending the deal, saying it posed a strategic threat to Moscow by allowing the US to take Russia’s market share.
Al-Falih said he may have another opportunity to talk to Novak at a G20 meeting in Japan beforehand.
Despite Russian indecision over the deal, known as the “OPEC+ Agreement,” signals from Moscow suggest an extension could work.
There is a still a risk oil producers pump too much crude and prices fall, Novak said on Monday, suggesting he might support an extension of output cuts at a meeting of leading oil producers next month.
“This is not ruled out. A lot depends on the market in the third quarter, on the supply and demand balance,” he said, citing the effect of US-led trade wars and sanctions.
“There are big risks of over-production. But we need to analyze deeper and look at how events will develop in June in order to take a balanced decision at the joint OPEC+ meeting in July.”
Al-Falih said the OPEC+ group was working to take “preventive” measures to avoid sharp oil price declines.
Separately, Russian Finance Minister Anton Siluanov said oil prices could fall as low as $30 per barrel if OPEC and others did not extend the curbs.
Al-Falih: Only Russia undecided on OPEC deal extension
Al-Falih: Only Russia undecided on OPEC deal extension
- Khalid Al-Falih, in Moscow for talks with counterpart Alexander Novak, said there was disagreement in Russia over prolonging the pact at an upcoming meeting in Vienna
- Igor Sechin, chief executive of Rosneft, warned against extending the deal, saying it posed a strategic threat to Moscow by allowing the US to take Russia’s market share
ACWA Power inks $400m deal to develop desalination plant in Azerbaijan
RIYADH: Saudi utility giant ACWA Power has signed a public-private partnership agreement valued at SR1.5 billion ($400 million) to develop Azerbaijan’s first large-scale Caspian Sea water reverse osmosis desalination plant.
In a Tadawul statement, ACWA Power said the agreement was signed with the government of Azerbaijan, represented by the Azerbaijan State Water Resources Agency as the public partner, and Caspian Sea Azerbaijan Project Co. in its capacity as the project company.
The development aligns with ACWA Power’s expansion strategy as it seeks to establish itself as a key global player in renewable energy, water desalination, and green hydrogen through a growing portfolio of large-scale projects at home and abroad.
In the Tadawul statement, ACWA Power stated: “The Public Private Partnership Agreement along with a series of agreements were signed to deliver Azerbaijan’s first large-scale Caspian Sea Water Reverse Osmosis Desalination Plant.”
According to the statement, the contract term spans 27.5 years, including the construction period.
The agreement covers the design, engineering, construction, financing, ownership, operation, and maintenance of the desalination plant, with ACWA Power holding a 100 percent shareholding in the project company.
The financial impact of the contracted revenues is expected to be reflected after the early commercial operation date, which will be announced at the time of financial close. The company added that no related parties are involved in the transaction.
Earlier this month, ACWA Power signed a cooperation framework agreement with the African Development Bank to enhance collaboration on power generation and water desalination projects across Africa.
Under the agreement, the two parties will work together to identify, develop, and finance sustainable energy and water initiatives, with a target investment of up to $5 billion between 2025 and 2030.
In December, ACWA Power also completed the refinancing of the Rabigh 3 Independent Water Project in Saudi Arabia’s western region.
Rabigh 3 is a seawater desalination plant with a capacity of 600,000 cubic meters of potable water per day, using reverse osmosis technology.
The company said the refinancing was executed through a capital-markets-led approach, anchored by the issuance of a long-term senior secured project bond.
