x Abu Dhabi, UAEFriday 28 July 2017

Saudi wants payment for oil revenue losses

Saudi Arabia wants other oil producers to join it in pressing for compensation payments from wealthy countries that reduce energy consumption to combat global warming.

Saudi Arabia wants other oil producers to join it in pressing for compensation payments from wealthy countries that reduce energy consumption to combat global warming. The US newspaper, The New York Times, reported today that Saudi Arabia is gearing up to take a hard line on international discussions in Copenhagen in December. The Times says the Saudi chief negotiator, Mohammad al Sabban, has described the issue as a "make or break" provision for the country.

"Assisting us as oil-exporting countries in achieving economic diversification is very crucial for us through foreign direct investments, technology transfer, insurance and funding," Mr. Sabban said in an e-mail message to the Times. Saudi Arabia, along with other petroleum producers, could be economically disadvantaged by emissions targets. As a result, oil producers have resisted the idea. A study by International Energy Agency, which advises industrialised nations, said the cumulative revenue of OPEC would drop by 16 per cent over the coming decade if an agreement on emissions could be reached.

Mr Sabban cited a study by Charles River, a consulting firm, which found that the losses in revenue for Saudi Arabia alone would be $19 billion a year starting in 2012, the Times said. business@thenational.ae