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US oil services firms join push for revamped Venezuela license

Some US oilfield firms whose Venezuelan operations were frozen by sanctions are joining an appeal to Washington for authorizations to restart oil drilling in the South American country, according to eight sources with knowledge of the talks.

If they are allowed to resume work, Venezuela could quickly ramp up production capacity beyond 1 million barrels per day (bpd), analysts said.

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The new supply could also fill a void left by US ban on Russian energy imports over its invasion of Ukraine that has contributed to crude prices above $100 per barrel.

Schlumberger, Halliburton, Baker Hughes and Weatherford International have been barred since 2019 from helping Venezuelan state-run PDVSA and its joint ventures produce oil. Any easing by the US Treasury Department of a restricted license the four companies share with Chevron Corp could let them expand operations.

Since the United States first imposed oil trading sanctions on Venezuela, many firms removed equipment and staff and wrote off hundreds of millions dollars of their assets there. But over a dozen rigs remain stored near the nation’s largest oilfields.

A high-level meeting last month between US and Venezuelan officials opened the door to a possible return of Venezuela’s oil to the United States. Sanctions were first imposed in 2019 to choke oil exports and deprive Caracas of its main source of revenue in its bid to see the ouster of Venezuelan President Nicolas Maduro.

The talks coincided with Washington’s ban on Russian oil imports, a measure that will take full effect this week, potentially hurting US refiners and contributing to rising fuel prices.

Oil companies that still have a presence in Venezuela could promptly reactivate equipment in the country, the sources said, potentially reviving crude output, which remains at 40 percent of pre-sanction levels.

“If PDVSA’s joint ventures are seeking to obtain licenses to operate, they will need the oil services companies,” Reinaldo Quintero, president of Venezuela’s Petroleum Chamber told Reuters.

Several US-based and local oilfield firms have approached the chamber to express their desire to resume work in Venezuela, he added, declining to provide details on the talks.

Baker Hughes said it would not comment on speculation or future activity. Schlumberger said its policies do not permit lobbying or political contributions. Halliburton declined to comment on future plans in Venezuela.

Investment firm Amos Global Energy has submitted requests to the United States to participate in Venezuela’s energy sector and has an oilfield company ready to provide services if granted, founder Ali Moshiri said.

Weatherford and PDVSA did not reply to requests for comment.

Lining up

Chevron has requested authorization from US President Joe Biden’s administration to take operating control of its projects with PDVSA. The oil major also has begun readying a team for returning Venezuelan crude to the United States.

But US officials are still debating whether to revamp the current license, set to expire in June, sources in Washington familiar with the talks said. The move would be widely seen as an easing of US sanctions on Venezuela’s oil sector.

Prospects for a change dimmed after an outcry from Republican lawmakers and some of Biden’s fellow Democrats following the Caracas talks. US officials are mindful that there could be further blowback if it proceeds, the people added.

Some US oilfield firms have communicated individually to the US Treasury through intermediaries support for Chevron’s efforts to get an expanded license and could provide services if an approval is granted, one of the Washington sources said.

The talks were not made through formal lobbying, according to two company sources.

Even though the companies’ current petition is for resuming some operations using mothballed drilling units in Venezuela, they hope to later secure US permits to bring in additional equipment, the person added.

The US Treasury Department declined to comment.

Lethargic output

Small firms hired by PDVSA since 2021 to revive oil output mainly by coil tubing techniques and well maintenance have helped stop a free-fall in production and exports.

But Venezuela’s active drilling rig count remains at zero since 2020, versus 87 units in 2013, according to Baker Hughes’ statistics. A portion of equipment once operated by local contractors and Russia-controlled firms is now inactive.

Only a handful of big drilling rigs are deployed in the Orinoco Belt, Venezuela’s main oil region, and the ones there – including two 2,000 horsepower (HP) modular rigs and a 1,500 HP rig – are idled over unpaid bills, a source from a joint venture between PDVSA and a Russia-owned company said.

PDVSA also continues trying to reutilize two 750-HP rigs imported from China to produce key crude for refining while hiring local workover equipment and crews, two sources said.

Of the four service firms that share Chevron’s license, Schlumberger has some 15 rigs stored in Venezuela, the largest inventory of mothballed equipment by a US company. The others have mostly moved rigs out of the country or have liens on equipment that must be resolved before resuming work, three of the sources said.

Another US company has 10 inactive workover rigs in Venezuela ready to resume work if restrictions are eased, said Amos Global’s Moshiri, who declined to identify the firm.

Because US sanctions prohibit any financial transactions with PDVSA, some firms have been trying for months to structure proposals that would allow them to get paid by partners or joint ventures authorized by Washington.

“We have discussed oil trading options so proceeds from sales could go to trustees through transparent payment structures,” Quintero said. “Cash flow would be confined to oil projects and the state would receive royalties and taxes.”

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Almarai signs multiple agreements to localize jobs through training and recruitment programs

Almarai signed a cooperation memorandum with the Food Industries Polytechnic, the
Transport General Authority, and the Saudi Logistics Academy to localize jobs in the
food and beverages sector through training and rehabilitation programs ending in
employment. This came within the first international conference on the labor market,
organized by the Ministry of Human Resources and Social Development on 13 – 14
December 2023 at the King Abdulaziz Convention Center in Riyadh.

‘These agreements are part of Almarai’s corporate program for the social responsibility
to achieve localization in the food industry sector, which is one of the top priorities of the
comprehensive strategic plans in Almarai, especially since the company is one of the
largest working environments in the kingdom, with more than 9,000 Saudi employees,
including more than 900 Saudi female employees.”Fahad Aldrees, Chief Human
Resources Officer of Almarai, said.

He added that the agreements signed to train and qualify young people are part of the
integrated initiatives and training and rehabilitation programs for national human
resources in Almarai. He pointed out that the company provided about half a million
employee training hours during 2022, raising its retention rate to 90% during 2022.

It is worth mentioning that Almarai is the world’s largest vertically integrated dairy
company, and the largest food and beverage producer and distributor in the Middle
East. Almarai was ranked among LinkedIn’s top 15 Saudi companies for professional
career development for 2022.

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SEBA Bank rebrands to AMINA Bank and continues to write its success story

a fully licensed Swiss crypto bank, announced today its new brand identity: AMINA Bank AG. The group operates
globally from its regulated hubs in Zug, Abu Dhabi and Hong Kong, offering its clients traditional and crypto banking services.
SEBA Bank made history in 2019 by becoming one of the first FINMA-regulated institutions to provide crypto banking services. This rebrand marks a new chapter for the company, which has proudly been in operation for more than four years. AMINA Bank is inspired by the same trailblazing ambition to lead the way for its clients and to write its own future as a Swiss-
regulated crypto bank offering services to its traditional and crypto savvy clients around the globe. The name ‘AMINA’ stems from the term ‘transAMINAtion’, meaning transference of one compound to another. AMINA is a brand driven by perpetual change, bringing together the various ‘compounds’ of traditional, digital, and crypto banking to unlock new potential and
growth for our clients. This vision of change represents the transformation of our clients’ financial future. Franz Bergmueller, CEO of AMINA, said: “We are delighted to introduce the world to our new brand identity. While we say goodbye to the SEBA name, we remain forever proud of the achievements made by the group under the former brand. “Our brand signifies a new era in the company’s growth and strategy; we are a key player in crypto banking and are here to define the future of finance. With our client-focused approach, our years of traversing traditional and crypto finance, we offer a platform for investors to build
wealth safely and under the highest regulatory standards.” “We are grateful to be encouraged by our supportive and committed investors who have been very helpful, supporting the growth of the company. We thank our employees in all the regions
for their dedication and client focus. As we look forward to 2024, our ambition is to accelerate the growth of our strategic hubs in Switzerland, Hong Kong, and Abu Dhabi, and to continue our global expansion, building on all the successes we have laid down over the past years.” Current clients of AMINA Bank (formerly SEBA Bank) will be unaffected by the rebrand other than encountering the new name; all operations will be business as usual across the board. The branch office based in Abu Dhabi and the subsidiaries in Hong Kong and Singapore will subsequently apply for a name change to align with the head office in Zug.

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Uptime Appoints Mustapha Louni Chief Business Officer

Uptime Institute is pleased to announce the appointment of Mustapha Louni to the position of Chief Business Officer, a role specifically created to drive strategic leadership and client success. In this new role, Mr. Louni will assume responsibility for the global Uptime sales and marketing organizations and drive overall business value for all Uptime clients. He will retain his existing responsibilities overseeing operations in the Middle East, India, Africa, and the Asia Pacific regions. In this elevated capacity, Mr. Louni is poised to play a pivotal role in driving Uptime’s next phase of global expansion through strategic initiatives to enhance market awareness of the dramatically expanding global service lines and delivery capabilities of Uptime that uniquely support the global data center industry in its pursuit of ever higher performance through elevated availability, resiliency, sustainability, and cyber-security of digital infrastructure. Louni’s appointment renews and expands Uptime

Institute 39;s 30-year commitment to advancing excellence in the data center sector on a global scale. “Today we are experiencing the next phase of the one-time, planetary transformation from analog to digital. This unprecedented, once-in-a-generation growth in data center demand is primarily driven by continuing cloud adoption, the new promise of AI, and the demonstrable fact
that hybrid digital infrastructure is here to stay for the foreseeable future,” said Martin McCarthy, CEO, Uptime Institute. “These complex and nuanced market demands require a visionary talent like Mustapha Louni. He is someone who cannot only deftly manage specific aspects of the business but also remain ahead of accelerating changes and trends. He continues to earn client
trust and respect by timely delivery on demanding commitments while he also inspires and energizes colleagues and clients alike. I am delighted to announce Mr. Louni’s new position and know that he will continue to expand the impact that he has already brought to Uptime since his arrival.” In 2014, Mr. Louni joined the Uptime organization in the United Arab Emirates, leveraging his extensive experience from roles at Panduit and Schneider Electric in Paris and Dubai. As the company’s first commercial resource in the Middle East and Africa region, Mr. Louni played a pivotal role in expanding Uptime’s presence. Within a year, he successfully established what became and remains Uptime’s fastest growing regional office. Under his leadership, Uptime has
extended his impressive trajectory of growth in MEA to the Asia-Pacific regions, augmenting the Uptime workforce with dedicated team members spanning more than a dozen countries across these regions. A new Uptime office has been inaugurated in Riyadh, Kingdom of Saudi Arabia (KSA) this year, further fortifying the company’s ability to meet its commitment to sustained
growth and excellence and serve clients in critical, accelerating markets for digital infrastructure.

Uptime Institute began development of its proprietary and now globally recognized Tier Standards and its Tier Certifications 30 years ago to ensure that the mission critical computing needs of all organizations could be met with confidence and understood by executive management. Since that time, Uptime Tier Certification as well as other Uptime offerings including assessments and awards in digital infrastructure for ensuring business performance in areas of management and operations, risk and resilience, sustainability, and more recently cyber- security have gained global adoption. Uptime’s expanding success is based on delivering a
unique business service that is based upon unparalleled engineering excellence and technical mastery, while remaining vendor independent and technology agnostic.

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