Saudi Arabia, Indonesia sign MoU to cooperate in energy fields

the MoU aims to enhance cooperation in the fields of oil and gas, electricity, and renewable energy. SPA
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Updated 16 November 2022
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Saudi Arabia, Indonesia sign MoU to cooperate in energy fields

RIYADH: Saudi Arabia has signed a memorandum of understanding with Indonesia to cooperate in energy fields in pursuit of their common aspirations, according to the Saudi Press Agency. 

Signed on the sidelines of the G20 summit meetings currently being held in Bali, the MoU aims to enhance cooperation in the fields of oil and gas, electricity, and renewable energy.

The understanding will also encompass energy efficiency, clean hydrogen, the application of the circular carbon economy and its technologies to reduce the effects of climate change, digital transformation, innovation, cybersecurity, and artificial intelligence in the field of energy.

Cooperation will be achieved through exchanging information and experiences in areas related to the MoU, exchanging visits between experts and specialists, and organizing conferences, seminars, and working sessions.

It also entails conducting joint studies and working to develop qualitative partnerships between the two countries to localize materials, products and services, and supply chains and their technologies.

Saudi Arabia’s Crown Prince Mohammed bin Salman arrived in Indonesia on Tuesday to participate in the G20 summit as leaders gathered to discuss a number of issues facing the world, including the war in Ukraine, a global economic downturn, and food security, among other topics.

In September, Saudi Commerce Minister Majid Al-Qasabi met Indonesia’s Trade Minister Zulkifli Hasan on the sidelines of the G-20 trade, investment and industry working group meeting in Bali.

The two sides agreed on a road map, with periodic follow-ups, for boosting trade exchanges between the two countries, the Saudi Press Agency reported.

The ministers also discussed ways to enhance and support the business sector to aid the development of trade relations, and ways to take advantage of the opportunities available in the two countries and turn them into tangible partnerships.

In October, Indonesia was looking to exchange resources with Saudi Arabia to boost the production of electric vehicles and strengthen energy cooperation, a top Indonesian business leader revealed.

Speaking to Arab News on the sidelines of the Future Investment Initiative forum in Riyadh, Arsjad Rasjid, chairman of the Indonesian chamber of commerce, said the Southeast Asian country supplied more than 40 percent of the world’s nickel, heavily used in e-vehicle batteries, and had an array of energy facilities.

“This is where Saudi Arabia, with the capital and technology, and Indonesia can work together,” he added. “There is interconnectivity here on the level of electric vehicle ecosystems that can be synergized between Saudi and Indonesia.”


CMA CGM, global carriers suspend Gulf transits on security fears

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CMA CGM, global carriers suspend Gulf transits on security fears

RIYADH: Shipping and logistics across the Middle East were disrupted after major carriers halted routes and ordered vessels to seek shelter following joint US-Israeli attacks on Iran and Tehran’s warning restricting transit through the Strait of Hormuz.

At least 150 tankers, including crude oil and liquefied natural gas vessels, dropped anchor in open Gulf waters beyond the Strait of Hormuz, while dozens more were stationary on the other side of the chokepoint, shipping data showed on March 1, Reuters reported.

The tankers were clustered in open waters off the coasts of major Gulf oil producers, including Iraq and Saudi Arabia, as well as LNG giant Qatar, according to Reuters estimates based on ship-tracking data from the MarineTraffic platform.

This comes as French shipping giant CMA CGM instructed vessels operating in the Gulf to move to safe shelter and suspended some Suez Canal transits as security risks escalated along one of the world’s busiest trade routes.  

The Strait of Hormuz, a narrow waterway between Iran and Oman, is one of the world’s most critical energy chokepoints, carrying about 30 percent of global oil supplies along with significant volumes of liquefied natural gas.

The world’s third-largest container line said all vessels currently inside or bound for the Persian Gulf had been instructed to proceed immediately to safe shelter, while certain canal transits were halted until further notice and ships were rerouted via the Cape of Good Hope, according to a statement.

The precautionary move comes as shipping companies reassess operations across the region following military strikes and retaliatory attacks that have heightened security risks along critical maritime corridors linking Asia, Europe, and the Middle East.

“This decision is dictated by safety considerations and is made in compliance with our Bill of Lading Terms and Conditions,” the statement said.

It added: “Customers will be contacted as soon as we have more details of the possible alternative ports where their cargo could be discharged.”

The UK Maritime Trade Operations warned that the regional maritime security environment remains unstable, citing heightened military activity across key shipping lanes.

“The maritime security environment across the Arabian Gulf, Gulf of Oman, North Arabian Sea, Bab al Mandab and the Strait of Hormuz remains highly volatile, with ongoing regional military activity contributing to an elevated threat to commercial shipping,” UKMTO said in an advisory.

The agency added that mariners should expect disruption to navigation and communications systems.

UKMTO said there is “significant military presence and activity across the region” and warned vessels of an increased risk of miscalculation or misidentification near sensitive maritime infrastructure.

Despite circulating reports, the agency said “no official closure of the Strait of Hormuz has been formally communicated to the maritime industry through recognized maritime safety channels.”

Separately, Japanese shipping companies have also begun restricting movements near the Strait of Hormuz, Reuters reported.

Nippon Yusen instructed vessels to halt transit in the area on Feb. 28, while Mitsui O.S.K. Lines said its ships were remaining in safe waters, citing crew and cargo safety as its top priority.  

Kawasaki Kisen Kaisha said several of its vessels in the Persian Gulf were placed on standby, noting that, unlike other maritime routes, there are limited diversion options for ships operating near the strait.

“Until the situation stabilizes, we will not attempt to send vessels through the strait, nor dispatch additional ships towards the area,” a spokesperson said.

German shipping group Hapag-Lloyd has also suspended all vessel transit through the Strait of Hormuz until further notice because of the evolving security situation, it said.

This comes as a Palau-flagged oil tanker was hit off Oman’s Musandam peninsula on March 1, injuring four crew members, the country’s Maritime Security Centre said, following drone strikes on the Gulf nation’s commercial port of Duqm, Reuters reported.

The incidents mark the first time targets in or near Oman have been struck since Tehran launched retaliatory attacks across Gulf states after joint US-Israeli strikes on Iran.

The 20-member crew of the Skylight tanker was evacuated after the attack, which occurred about five nautical miles north of Khasab Port in Musandam, according to the maritime authority in a post on X. The centre did not specify what hit the vessel but said four crew members, among them 15 Indian and five Iranian nationals, suffered injuries of varying severity.

Oman’s Musandam peninsula shares control of the Strait of Hormuz with Iran, a strategic chokepoint through which roughly one-fifth of global oil consumption passes.

Earlier in the day, Oman’s state news agency reported that Duqm commercial port was struck by two drones, injuring one expatriate worker. Debris from another drone fell near fuel storage tanks, though no additional casualties or material damage were recorded.