Tag Archives: Breaking News: Middle East

OPEC Secretary General Mohammad Barkindo dies at age 63

Mohammad Sanusi Barkindo, secretary general of the Organization of Petroleum Exporting Countries.

Aaron M. Sprecher | Bloomberg | Getty Images

Mohammad Barkindo, a Nigerian politician and the secretary general of oil group OPEC, has died at the age of 63.

The head of Nigeria’s National Petroleum Corporation, Mele Kyari, announced the news in a tweet Wednesday, which was confirmed by two sources at OPEC.

“We lost our esteemed Dr Muhammad Sanusi Barkindo,” a tweet early Wednesday morning from his verified Twitter handle read.

“He died at about 11pm yesterday 5th July 2022. Certainly a great loss to his immediate family, the NNPC, our country Nigeria, the OPEC and the global energy community. Burial arrangements will be announced shortly.”

Barkindo’s unexpected death came as a surprise to members of the oil and gas world, many of whom describe him as a giant in the industry. 

His career spanned over four decades and included work at Nigeria’s National Petroleum Corporation, Duke Oil, Nigeria’s foreign ministry and energy ministry, as well as OPEC.

Since taking the helm as secretary-general of OPEC in 2016, Barkindo oversaw tumultuous times for the oil producer group, which witnessed volatile markets rocked by historic events including the Covid-19 pandemic, the creation of the OPEC+ alliance with Russia and other non-OPEC states, and Russia’s invasion of Ukraine.

While the organization lost two members, Qatar and Ecuador, during that time, Barkindo is nonetheless credited with guiding unity among the group’s members in an effort to stabilize global oil markets.

—CNBC’s Emma Graham contributed to this article.

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Oil giant Aramco reports record first quarter as oil prices soar

Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia October 12, 2019.

Maxim Shemetov | Reuters

Oil giant Aramco reported a more-than 80% jump in net profit Sunday, topping analyst expectations and setting a new quarterly earnings record since its IPO.

The Saudi Arabian behemoth said net income rose 82% to $39.5 billion in the first three months of the year, up from $21.7 billion over the same period last year. Analysts polled by Reuters had forecast net income of $38.5 billion dollars. 

The record quarter for Aramco comes amid a standout quarter for Big Oil, which is benefiting from a sharp rise in oil and gas prices. Aramco said its earnings were driven by higher crude oil prices, rising volumes sold and improved downstream margins.

“During the first quarter, our strategic downstream expansion progressed further in both Asia and Europe, and we continue to develop opportunities that complement our growth objectives,” Aramco President and CEO Amin Nasser said in the earnings release Sunday. 

“Against the backdrop of increased volatility in global markets, we remain focused on helping meet the world’s demand for energy that is reliable, affordable and increasingly sustainable.”

With a market cap of around $2.43 trillion on Wednesday, Aramco last week surpassed Apple to become the world’s most valuable company. The companies’ market caps looked similar on Sunday.

Aramco stock is up over 15% so far in 2022. In March, the oil giant reported that its full-year profit last year more than doubled due to the ongoing rise in oil prices, driven higher by Russia’s invasion of Ukraine, looming European Union sanctions on Russian oil and the prospect of tighter supply.

Bonus Shares

The Aramco results reflect an ongoing momentum in the oil and gas industry, which has benefited from a more-than 45% increase in prices since the start of the year. Earnings from Aramco’s global peers such as BP and Shell have hit their highest level in years, despite incurring write-downs for exiting operations in Russia following the invasion of Ukraine.

Aramco is rewarding investors as a result. The company said it would use $4 billion dollars in retained earnings to distribute bonus shares to shareholders — amounting to one share for every 10 shares held. It also kept its enormous dividend stable at $18.8 billion dollars, covered by a 68% year-on-year increase in free cash flow to $30.6 billion dollars.

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Carlos Ghosn says he expects fair trial in France following arrest warrant

Carlos Ghosn, former Nissan chief executive officer, is in an ongoing legal battle amid allegations of financial misconduct.

Bloomberg | Getty Images

Carlos Ghosn has said he would receive a “fair trial” in France after being issued an arrest warrant in the latest of a string of charges brought against the disgraced former auto executive.

Speaking to CNBC Friday in Beirut, Ghosn said he trusted the French justice system to treat him correctly, even if he did not receive the same treatment from the media and wider society.

“I think yes, I can get a fair trial,” he told CNBC’s Hadley Gamble.

“I will not get fair treatment, but I will get a fair trial,” he said, citing the media’s apparently disproportionate coverage of lavish parties and excessive spending during his tenure as an auto CEO.

French authorities on Thursday issued an international arrest warrant for the former Renault-Nissan executive who famously skipped bail in Japan and fled to Lebanon in a box.

The warrant relates to an investigation into allegations of 15 million euros ($16.2 million) in suspicious payments between Renault and an Omani car dealership during Ghosn’s tenure. The allegations involve misappropriation of company assets, corruption and money laundering.

Four others, including current owners or former directors of Suhail Bahwan Automobiles, were also issued with arrest warrants.

It is the latest in a series of accusations brought against the ex-car industry supremo, who was first arrested in Japan in November 2018 and charged with multiple financial misdeeds while running Nissan. Ghosn denies all charges.

‘Suspicious’ timing

Ghosn said Friday that he was not surprised by the arrest warrant, describing it as part of the “natural process” for French investigators. However, he said he was surprised to learn about it, not from authorities, but in a newspaper.

“What surprised me is the fact that I learned about it by reading in an American newspaper,” he said, referring to the Wall Street Journal, which broke the news Thursday.

Ghosn added that the timing of the warrant was “suspicious,” given the forthcoming French presidential elections this Sunday.

Both President Emmanuel Macron and his far-right rival Marine Le Pen have taken tough stances on CEO pay in the lead up to Sunday’s presidential run-off as public scrutiny over the remuneration of France’s top bosses intensifies. The French government is also the largest shareholder of Renault.

When asked about the timing of the arrest warrant, he said he could not speculate.

“I don’t know. I can’t speculate on that. Frankly, the timing is more than suspicious. You know, why do you want to do it today? Why do it Friday? Why can’t you do it Monday, I mean? This is something which has been lasting for years,” he said.

Spokespersons for the French justice ministry and the French government were not immediately available when contacted by CNBC for comment.

Nonetheless, Ghosn he said he expects any hearing to be independent, regardless of who wins.

“Fortunately in France, justice is somehow independent of the political power, which obviously is not the case in Japan,” he said. Ghosn has repeatedly criticized the Japanese legal system as it continues to pursue him for alleged financial misdemeanors during his time at the helm of Nissan.

Japanese officials, meanwhile, have refuted Ghosn’s claims, defending the country’s justice system as “fair and open.” Japan’s Ministry of Justice published a 3,000-word article in 2020 outlining questions and answers about its treatment of criminals. A spokesperson for the Japanese justice ministry was not immediately available when contacted by CNBC for comment.

Ghosn’s spokesperson said earlier Friday that he would be happy to stand trial in France to clear his name. Still, the feasibility of that remains in doubt.

Ghosn is barred from leaving Lebanon as he is still subject to an extradition request from Japan. Though that request is unlikely to be approved, his passport is currently held by Lebanese authorities.

The Brazil-born auto titan was raised in Beirut and is a citizen of Brazil, France and Lebanon.
As a Lebanese citizen, he’s protected from extradition.

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Saudi energy minister says OPEC will leave politics out of oil decisions

Saudi Energy Minister, Prince Abdulaziz bin Salman bin Abdulaziz Al Saud speaks during the UN Climate Change Conference (COP26), in Glasgow, Scotland, Britain, November 10, 2021.

Yves Herman | Reuters

Saudi Arabia’s energy minister said Tuesday that OPEC+ will keep politics out of its decision-making in favor of the “common good” of stabilizing energy prices.

Governments and international organizations around the world have imposed punitive sanctions and severed economic ties with Russia after its invasion of Ukraine, but OPEC — the intergovernmental organization of 13 oil exporting countries — does not appear willing to take action against Russia, a key partner in the wider OPEC+ alliance and itself a major exporter of oil.

Speaking to CNBC on Tuesday, Saudi Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz Al Saud said the organization’s very existence was dependent on a separation of its mission to stabilize oil prices from other geopolitical factors, even in the event of a widely-condemned invasion.

Saudi Arabia and the UAE voted in favor of a U.N. General Assembly resolution earlier this month urging Russia to abandon the invasion and withdraw all troops, and Prince Abdulaziz said there were other forums through which the Kingdom could voice its opinion on Russia’s actions, which is in line with the global response.

“When it comes to OPEC+ — I would take that privilege of saying I’ve been at it for 35 years, and I know how we managed to compartmentalize our political differences from what is for the common good of all of us,” Prince Abdulaziz told CNBC’s Hadley Gamble at the World Government Summit in Dubai on Tuesday.

“That culture is seeped into OPEC+, so when we get into that OPEC meeting room, or OPEC building, everybody leaves his politics at the outside door of that building, and that culture has been with us.”

The energy minister noted that OPEC and OPEC+, which was formed after production cut deals were agreed with non-OPEC countries including Russia, had dealt with various countries embroiled in conflict or acts of aggression throughout its history, including Iraq and Iran.

“The reason we have managed to maintain OPEC+ is that we discuss these matters, these issues, in an entirely siloed type of approach whereby we are much more focused on the common good, regardless of the politics,” he added.

Prince Abdulaziz’s comments were echoed by UAE Energy Minister Suhail Al Mazrouei, who also highlighted that the organization had continued to operate while constituent members were at war, without taking a side. He added that its only mission is “stabilizing the market.”

“Our aim is to calm the market, trying to come up with volumes as much as possible, and if we are asking anyone to leave, then we are raising the prices,” he said.

“Then we are doing something that is against what the consumers want, what the consumers are crying for in many countries around the world, who cannot probably afford where the prices could go.”

Al Mazrouei said countries could unilaterally refuse to buy Russian oil, but for the organization to squeeze out members would contradict its ethos.

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UAE to shift weekend to Saturday and Sunday from next year

A view of a street in Abu Dhabi, United Arab Emirates

Valery Sharifulin | TASS | Getty Images

The United Arab Emirates will move its weekend to Saturday and Sunday starting next year, the UAE media office said in a tweet on Tuesday.

The shift is significant, given Friday has long been a sacred day for worshippers of Islam. Most countries in the Gulf have Friday to Saturday weekends.

The country will have a four-½-day working week, with the weekend starting on Friday afternoon and lasting until Sunday.

According to the tweet by the government’s media office, the longer weekend is meant to “boost productivity and improve work-life balance.”

The changes will kick in from Jan. 1, 2022, and will apply to federal government entities.

Friday working hours will be from 7:30 a.m. to 12 p.m., the government media office said. Working hours from Monday to Thursday will start at 7.30am and end at 3.30pm.

“Adopting an agile working system will enable the UAE to rapidly respond to emerging changes and enhance wellbeing in the workplace,” state news agency WAM said in a report.

“From an economic perspective, the new working week will better align the UAE with global markets, reflecting the country’s strategic status on the global economic map,” and is designed to smooth trade, financial and economic transactions with other countries, it added.

The country will also be hoping the move boosts “not only trading opportunities but also add to the flexible, secure and enjoyable lifestyle the UAE offers to its citizens and residents,” according to WAM.

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