Saudi Arabia: 2 oil tankers damaged by sabotage attacks

Agencies
May 13, 2019

Dubai, May 13: Saudi Arabia said Monday two of its oil tankers were sabotaged off the coast of the United Arab Emirates in attacks that caused "significant damage" to the vessels, one of them as it was en route to pick up Saudi oil to take to the US.

Khalid al-Falih's comments came as the US issued a new warning to sailors and the UAE's regional allies condemned the reported sabotage Sunday of four ships off the coast of the port city of Fujairah. The announcement came just hours after Iranian and Lebanese media outlets aired false reports of explosions at the city's port.

Emirati officials have declined to elaborate on the nature of the sabotage or say who might have been responsible. However, the reports come as the US has warned ships that "Iran or its proxies" could be targeting maritime traffic in the region, and as America is deploying an aircraft carrier and B-52 bombers to the Persian Gulf to counter alleged threats from Tehran.

Tensions have risen in the year since President Donald Trump withdrew the United States from the 2015 nuclear deal between Iran and world powers, restoring American sanctions that have pushed Iran's economy into crisis. Last week, Iran warned it would begin enriching uranium at higher levels in 60 days if world powers failed to negotiate new terms for the deal.

In his statement, al-Falih said the attacks on the two tankers happened at 6 a.m. Sunday.

"One of the two vessels was on its way to be loaded with Saudi crude oil from the port of Ras Tanura, to be delivered to Saudi Aramco's customers in the United States," al-Falih said.

"Fortunately, the attack didn't lead to any casualties or oil spill; however, it caused significant damage to the structures of the two vessels." Saudi Arabia did not identify the vessels involved, nor did it say whom it suspected of carrying out the alleged sabotage.

Underling the regional risk, the general-secretary of the six-nation Gulf Cooperation Council described the alleged sabotage as a "serious escalation" in an overnight statement.

"Such irresponsible acts will increase tension and conflicts in the region and expose its peoples to great danger," Abdullatif bin Rashid al-Zayani said. Bahrain, Egypt and Yemen's internationally recognized government similarly condemned the alleged sabotage.

A statement Sunday from the UAE's Foreign Ministry put the ships near the country's territorial waters in the Gulf of Oman, east of the port of Fujairah. It said it was investigating "in cooperation with local and international bodies." It said there were "no injuries or fatalities on board the vessels" and "no spillage of harmful chemicals or fuel." 

The US Navy's 5th Fleet, which oversees the region, did not immediately offer comment. Emirati officials declined to answer questions from The Associated Press, saying their investigation is ongoing.

Earlier Sunday, Lebanon's pro-Iran satellite channel Al-Mayadeen, quoting "Gulf sources," falsely reported that a series of explosions had struck Fujairah's port. State and semi-official media in Iran picked up the report from Al-Mayadeen, which later published the names of vessels it claimed were involved.

The AP, after speaking to Emirati officials and local witnesses, found the report about explosions at the port to be unsubstantiated.

Fujairah's port is about 140 kilometers (85 miles) south of the Strait of Hormuz, the narrow mouth of the Persian Gulf through which a third of all oil at sea is traded. 

The facility handles oil for bunkering and shipping, as well as general and bulk cargo. It is seen as strategically located, serving shipping routes in the Persian Gulf, the Indian subcontinent and Africa.

Sunday's incident comes after the US Maritime Administration, a division of the US Transportation Department, warned Thursday that Iran could target commercial sea traffic.

"Since early May, there is an increased possibility that Iran and/or its regional proxies could take action against US and partner interests, including oil production infrastructure, after recently threatening to close the Strait of Hormuz," the warning read.

"Iran or its proxies could respond by targeting commercial vessels, including oil tankers, or US military vessels in the Red Sea, Bab-el-Mandeb Strait or the Persian Gulf." Early Sunday, the agency issued a new warning to sailors about the alleged sabotage, while stressing "the incident has not been confirmed." It urged shippers to exercise caution in the area for the next week.

Publicly available satellite images of the area taken Sunday showed no smoke or fire.

It remains unclear if the previous warning from the US Maritime Administration is the same perceived threat that prompted the White House to order the USS Abraham Lincoln aircraft carrier strike group and B-52 bombers to the region on May 4.

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News Network
May 5,2020

Dubai, May 5: A Saudi ministerial decision issued on Monday allows companies in the private sector to reduce salaries by 40 per cent and allows termination of contracts owing to the economic hardships resulting from the COVID-19 pandemic, according to daily newspaper Al Sharq Awsat.

The new decision was still not published by the cabinet according to the newspaper.

The decision which the newspaper saw a copy of was signed by Saudi Ministry of Human Resources and Social Development to regulate the labour contract in the current period, allows employers to reduce the employees salaries by 40 percent of the actual effective wage for a period of 6 months, in proportion to the hours of work and allowing the termination of employee contract after 6 months of the COVID-19 circumstances.

The new decision has also included a provision in which the employer would be allowed to cut wages even he or she benefits from the subsidy provided by the goverment, such as those for helping pay workers wages or exemption from government fees.

The decision also stressed that employers are not allowed to terminate any employee, unless three conditions are met.

1.            First the passing of six months since the measures of salary cut has been taken

2.            Reducing pay, annual leave and exceptional leave were all used

3.            Company proves that its facing financial troubles due to the circumstances.

The memo, which goes into affect as soon as its published in the government’s official newspaper, ensures that the employee will receive his/her salary if on annual leave within the period of 6 months.

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Gulf News
April 12,2020

Hyderabad, Apr 12: In the backdrop of rising tide of anti-Muslim hatred and Islamophobia on the social media, a company in Dubai sacked an employee from Hyderabad for his hate-filled posts on Facebook.

Bala Krishna Nakka from Hyderabad, who was working as Chief Accountant at Dubai’s Moro Hub Data Solutions Company, was sacked after his Facebook went viral evoking widespread condemnation. The man had posted images on his Facebook page which showed Muslims as suicide bombers wearing bombs in the form of coronavirus cells.

It triggered demands both on Facebook and Twitter for action against him. In a quick response the company announced that the person was being sacked from his job, as the company had zero tolerance towards hate propaganda.

Moro Hub said in a statement: “At Moro, we take a zero tolerance attitude to material that is or may be deemed Islamophoic or hate speech. The tweets that we have been alerted to do not, in any way, reflect Moro’s brand values.”

Since the outbreak of coronavirus in India, a more intense hate propaganda has been unleashed by right wing elements on social media targeting India’s Muslim minority, some of whom are based in Gulf region.

As both the mainstream media, especially Indian TV channels, as well as social media users, have unleashed a campaign linking the spread of virus to a Muslim missionary organisation, the Tableeghi Jamaat, in India, a fresh war of words has broken out on social media.

While some activists have taken up it on themselves to highlight the hate propaganda and draw the attention of employers to such hate mongers, the right wing social media handles have also launched their own counter-offensives against such activists.

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News Network
March 11,2020

Riyadh, Mar 11: Energy titan Saudi Aramco said Tuesday it will boost crude oil supplies to 12.3 million barrels per day in April, flooding markets as it escalates a price war with Russia.

Riyadh had already slashed its price for April delivery after Russia refused its proposal that producer alliance OPEC+ orchestrate a co-ordinated cut of 1.5 million barrels per day.

The production cut had been mooted to shore up global oil prices, which have gone into meltdown as the deadly new coronavirus casts a pall over the world economy, but now price cuts and rising output indicate an unravelling of OPEC+ co-operation.

"Saudi Aramco announces that it will provide its customers with 12.3 million barrels per day of crude oil in April," the company said in a statement to the Saudi stock exchange.

Saudi Arabia, the world's biggest crude exporter has been pumping some 9.8 million bpd so its announcement on Tuesday means it will be adding at least 2.5 million bpd from April.

"The Company has agreed with its customers to provide them with such volumes starting 1 April 2020. The Company expects that this will have a positive, long-term financial effect," the statement said.

Saudi Arabia says it has an output capacity of 12 million bpd but it is not known for how long it can sustain such levels.

The kingdom also has millions of barrels of crude stored in strategic reserves to be used when needed and is expected to use it to provide the extra supply to the global market.

"Production above 12 million bpd shows the Saudis have something to prove," director of Britain-based RS Energy Bill Farren-Price said.

"This is a grab for market share. The taps are open and the prices have been cut sharply," Farren-Price told AFP.

In a quick response, Russian Energy Minister Alexander Novak said Moscow could boost production in the short term "by 200,00-300,000 bpd, with a potential of 500,000 bpd in the near future".

But he stressed that Moscow was in favour of extending a December agreement that had seen OPEC and Russia agree to cut production by 500,000 barrels per day in 2020, lowering output from October 2018 levels by 1.7 million barrels per day.

The events of recent days have signalled a disintegration of collaboration between OPEC and Russia.

Russia is a non-OPEC member and the world's second-biggest oil producer, but Moscow and other non-members have in recent years co-operated with the oil cartel in an arrangement known as OPEC+.

The Saudi price cuts over the weekend, which were the first salvo in the price war, sent oil prices crashing -- registering the single biggest one-day loss in three decades on Monday.

Saudi Arabia draws around 70 per cent of its revenues from oil, and the revenues are key to ambitious reform programmes launched by Crown Prince Mohammed bin Salman.

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