Oil Updates — Crude prices continue to decline; Gazprom’s production reaches pre-COVID level

Brent crude futures for October, due to expire on Wednesday, were down $3.56 at $95.75 a barrel following Tuesday’s $5.78 loss. The more active November contract was down $2.70, or 2.76 percent, at $95.14 a barrel.
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Updated 31 August 2022
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Oil Updates — Crude prices continue to decline; Gazprom’s production reaches pre-COVID level

RIYADH: Oil prices continued to slide on Wednesday as investors worry about the global economy, prospects of central banks’ raising interest rates, and increased restrictions to curb COVID-19 in China.

Brent crude futures for October, due to expire on Wednesday, were down $3.56 at $95.75 a barrel following Tuesday’s $5.78 loss. The more active November contract was down $2.70, or 2.76 percent, at $95.14 a barrel.

US West Texas Intermediate crude futures were down $2.58, or 2.82 percent, at $89.06 a barrel by 0939 GMT, after sliding $5.37 in the previous session on recession fears.

OPEC+ sees bigger 2022 surplus

The oil market will likely see a bigger-than-expected surplus this year, the  Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+,   said in a report on Wednesday, as rising energy costs and tighter monetary policy exert downward pressure on oil demand.

The report comes days ahead of an OPEC+ policy meeting on Sept. 5 and over a week after OPEC leader Saudi Arabia said the group may cut oil output.
The Joint Technical Committee, which meets on Wednesday, advises the of oil-producing nations, on market fundamentals.

Shell’s Vito oilfield to start production in early 2023: Equinor

Shell’s Vito deepwater oilfield in the US Gulf of Mexico will start production in early 2023, partner Equinor said on Wednesday.

“It is in the early stages of being installed with the intent of first production in early 2023,” Chris Golden, Equinor’s US country manager, told a news conference in Norway.

Equinor has a 36.9 percent stake in Vito.

Gazprom Neft production reaches pre-pandemic level

Gazprom Neft, Russia’s fastest-growing oil company in terms of output, has restored its production to pre-COVID levels, Vadim Yakovlev, the company’s first deputy CEO, said.

He also said that the company is ready to tackle curbs on Russian oil from the West over what Moscow calls a “special military operation” in Ukraine, which forced Russian companies to seek new markets and cut supplies to Europe and the US.

“As far as the oil embargo is concerned, the restrictions, which are being created, regulatory, logistic ones, do not have a direct impact on total demand,” Yakovlev said.

“It leads to overhaul of logistic routes as we leave for new markets,” he added.

He said such “ineffective” logistics inflate delivery costs.

In 2021, Gazprom Neft produced some 101 million tons of hydrocarbons, including 62 million tons of crude oil.

The official declined to disclose the latest production figures and forecasts publicly.

 

(With input from Reuters) 

 

 


Saudi Arabia exports 1st industrial water treatment plant with nanotechnology to Europe

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Saudi Arabia exports 1st industrial water treatment plant with nanotechnology to Europe

JEDDH: Saudi Arabia’s GI Aqua Tech is set to export its first industrial wastewater treatment plant using nanotechnology in early 2026, the company’s CEO, Sherif Desouky, told Al Eqtisadiah.

The project, which operates on a per-cubic-meter treatment system, is valued at approximately €5 million ($5.9 million), with the first plant set for France, marking the first nanotechnology-based water treatment and reuse system manufactured and exported from Saudi Arabia to the world.

Expanding exports to GCC states in Q1 2026

These plants are designed for 100 percent reuse of industrial wastewater, and the expansion plan includes exporting several units to Bahrain and other Gulf countries with a combined capacity of 10,000 cubic meters in the first quarter of next year.

Desouky noted that the plant being exported to France will be installed at a cosmetics manufacturing facility, one of the most challenging industries for wastewater treatment.

Previously, wastewater had to be collected and transported for incineration at high costs, but nanotechnology now allows on-site treatment and reuse with higher operational efficiency.

He added that the technology directly contributes to reducing liquid waste disposal costs, saving up to 80 percent of energy, and replacing conventional disposal with reuse solutions compliant with strict environmental standards.

Desouky stated that the technology was fully developed and manufactured in Saudi Arabia with government support, enabling the project to move from local implementation to exports to European and global markets.

The plant, located in Al-Kharj Industrial City under the Saudi Authority for Industrial Cities and Technology Zones, known as Modon, spans 23,000 sq. meters and is the first in the Middle East to combine nanomaterial production with wastewater treatment plant manufacturing, according to Desouky.

Investments reach €150m, with 50 percent of workforce Saudi nationals

The CEO explained that the project investments are expected to reach €150 million upon completion, with 54 percent of the workforce currently Saudi nationals.

He added that the technology has already been deployed across major projects in Saudi Arabia, successfully integrating large volumes of industrial and sanitary wastewater, including at Riyadh’s Third Industrial Area, where it achieved 100 percent water reuse in a global first. 

He added that while Modon allocated 40,000 sq. meters for the project, the technology required only 4,000 sq. meters, allowing the remaining land to be transformed into a public park irrigated entirely with treated, odor-free water, underscoring the high environmental standards achieved.

Decentralized plants in areas not connected to sewage networks

Desouky highlighted the world’s first decentralized nanotechnology wastewater treatment plant within a residential neighborhood in Al-Mousa district, northern Jeddah.

He explained that the plant was constructed and became operational in just 10 days to address the issue of areas not connected to the central sewage network, which previously relied on tankers, and it now serves 8,000 residents.

This model represents a global first as a rapid solution for water and environmental crises, with the added advantage that the plant can later be relocated without leaving any negative impact.

According to the CEO, applications of the technology have also included the world’s largest plant for treating concrete factory wastewater in Neom and the Samhan Hotel plant in Riyadh, which has successfully treated all types of hotel wastewater for a year, including kitchen, laundry, and blackwater — not just greywater, as is common in hotels.

He added that this has opened avenues for collaboration with the global Marriott chain, noting that exporting this technology allows Saudi Arabia to achieve record energy savings of 80 percent, reduce space requirements by 90 percent, and ensure water meets the highest quality standards.