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OPEC secretary general ponders energy security, transition




HOUSTON, March 7 (Xinhua)– Haitham Al Ghais, Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), said on Tuesday the energy industry needs considerable investment to meet rising global demand and ensure market stability as energy security concerns return to the fore.

Meanwhile, he said the oil and gas industry, which will retain its share as a critical component of the energy mix, must transform and decarbonize operations.

As COP28 comes up in Dubai later this year, “We at OPEC stand fully behind the UAE to bring on board everybody,” he said during the annual CERAWeek global energy forum in Houston.


“The key thing that we focus on is always trying to make sure that there is stability, there’s adequate supply to the market,” said the secretary general, warning of the “underinvestment” in hydrocarbons.

“We’ve seen a significant shortfall in investments in the oil sector,” he said.

It can take a long time to come into actual energy production since the typical span is a “few years at best” and up to seven years before new projects come online, he explained.

As the global economy doubles in size, energy demand will increase by 23 percent, but “there is no imaginable way renewables can alone do this (meet the demand),” he told the audience.

He said the energy industry needs 12.1 trillion U.S. dollars in capital investment. “Unless this happens, I’m afraid, honestly, that we could be facing issues in the future with regard to energy security and, accordingly, affordability,” he added.

“We are investing already, and we urge and call others to invest. It’s a global responsibility that OPEC cannot shoulder on its own,” he went on.


Al Ghais said it is not a concern that Russia redirects its crude oil exports while Middle East exports are increasingly going to Europe, citing his 30 years of experience in the industry.

“It’s quite normal to see this,” he said, “We’ve always seen redirection of flows, whether it’s related to geopolitical events or demand centers being created and others disappearing. So this is typical where we have a redirection in flows from the east to the west or the west to the east.”

According to the forecast from OPEC, oil demand will increase by 2.3 million barrels a year, with the majority of the rise in demand coming from China and India, the secretary general said.

However, the global energy market is big enough despite improving demand, said Al Ghais.

“What concerns us more is actually the slowdown we see in Europe and the U.S. in terms of the financial situation and the inflation,” he said, noting a divided market is emerging on the demand side.

“There is phenomenal demand growth in Asia,” he said, and Russia’s oil production has been “resilient and managed to find new homes.”

He added that without the existence of OPEC and its allies, a group known as OPEC+, there would be more instability and volatility.

“With security of supply, there is also a requirement for security of demand, and the tools fit in together like hand and glove,” said the OPEC chief.


OPEC sees energy transitions as “absolutely an opportunity,” Al Ghais said.

“I don’t think it’s a threat. Again, it was something that we are already embracing. We believe this is an opportunity for us to meet our Paris Agreement goals,” he said.

“I think it’s important to look at the whole issue of energy transition, which I prefer to call energy transitions, by the way, not transition, with a sense of reality,” he said, “There is no one size fits all solution.”

Al Ghais said the energy transitions should “focus on different countries’ capabilities, circumstances, their potentials, their financial capabilities, and so forth.”

“When we talk about transition here in the U.S. or in Europe, it means nothing to other people around different parts of the world. What we take here for granted, like switching on the light, (a) switch is not available in other places in the world,” he went ahead, noting there are a million Africans alone who have no access to electricity.

The five-day CERAWeek will conclude on Friday and is focused on the dual challenges of meeting the world’s growing energy demand while reducing emissions.

More than 7,000 participants, including policymakers, industry leaders, company executives, investors and researchers from over 80 countries and regions, joined the forum, according to organizer S&P Global.

Source(s): Xinhua

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Over 2,000 beds expected to be brought to market in 2024





Minister of Tourism Ibrahim Faisal has revealed that an additional 2,700 tourist beds are expected to be added to the Maldives’ tourism sector this year. He made the statement during an exclusive interview with PSM News.

Speaking to PSM News, Minister Faisal highlighted the government’s efforts to attract investors to the islands of the Maldives. He said that investor forums are being planned in various countries, with the first forum anticipated to take place in July or August. He also said that the initiative will be spearheaded by the Ministry of Tourism, the Maldives Marketing and Public Relations Corporation (MMPRC), and the Maldives Integrated Tourism Development Corporation (MITDC).

Additionally, Minister Faisal revealed plans for another investor forum in Thailand, with additional forums in other countries being considered. He stressed the importance of creating special arrangements to expand tourism into new areas and attract investors by reducing acquisition costs and offering other incentives.

Furthermore, Minister Faisal highlighted that 15 to 12 new resorts are expected to open this year. Based on current statistics, he said that it is estimated that 2,700 new beds will be operational by the end of the year.

The government is making efforts to expand tourism across different parts of the country, particularly in areas where tourism is currently absent. As part of the initiative, 19 islands across nine atolls have been opened for tourism development. Currently, the Maldives boasts 62,300 tourism beds, which includes 42,955 beds from 174 resorts, 14,461 beds from 860 guesthouses, and 1,198 beds from various tourist facilities.

Source(s): PsmNews

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Trade deficit widens, fish exports drop 41 percent





The merchandize trade deficit widened from USD 669.3 million in the first quarter of 2023 to USD 768.5 million in the first quarter in 2024; reflecting stronger import and decline in exports.

However, compared to the final quarter last year, merchandize trade deficit in Q1-2024 registered a decline of 6%.

According to the Maldives Monetary Authority (MMA)’s Quarterly Economic Bulletin released on Tuesday, total merchandize exports – comprising of domestic exports and re-exports – register an annual decline of 5 percent in the first quarter this year, reaching a total of USD 131.3 million.

MMA reports that the fall in total merchandize exports was caused due to the steep decline in domestic exports – which has been observing decreases over the last two consecutive quarters as well.

Domestic exports – mainly comrpise of fish and fish products – plunged 41% in Q1-2024, registering a total of USD 31.5 million.

Central bank adds this decline was due to the staggering decline in the export earnings from frozen skipjack tuna, which observed a 64 percent drop – by USD 19.9 million – following declines over the last two consecutive quarters.

Moreover, this decline also in export earnings reflected both the 57 percent decline in the volume of such exports, and the 21 percent drop in skipjack tuna prices in the Bangkok frozen market during Q1-2024.

During the review quarter, frozen skipjack tuna in Bangkok market was priced at an average of USD 1.4 per kilogram – a decline from USD 1.8 per kilogram recorded in the corresponding quarter last year.

Besides this, declines were observed in the export earnings from fresh or chilled yellowfin tuna for the third consecutive quarter.

In the review quarter, export earnings from this commodity dropped by 57 percent (by USD 3.3 million) with the volume of such exports dropping by 55 percent, indicating a decline in unit prices.

Canned and pouched tuna exports saw the opposite trajectory, increasing by 5 percent during the review quarter despite a decline in the volume of such exports.

In tandem with these developments, volume and earnings from frozen yellowfin tuna exports increased, registering an 18 percent growth, a surge by USD 0.6 million), in the review quarter.

The fall in domestic exports was partially offset by the significant rise in merchandize re-exports during the first quarter this year.

In Q1-2024, merchandize re-exports rose by 18 percent, registering a total of USD 99.8 million reflecting the significant growth in jet fuel re-export – which had registered a 17 percent increment.

On the other hand, total merchandize imports observed an annual growth of 12 percent in the review quarter, registering a total of USD 899.8 million.

Major import categories saw modest growths, but was partly offset by a considerable decline in import expenditure on construction-related items; which dropped 9 percent during the Q1-2024.

Among the major import categories thar recorded growths during Q1-2024, the largest increase was observed for import expenditure on petroleum products, which rose by 25 percent – a surge by USD 41.9 million – mainly mirroring the spike in diesel imports, which recorded a susbtantial 27 percent jump (USD 34.8 million) in the review quarter.

Food items saw a growth of 14 percent (USD 23.9 million), while mechinery and mechanical appliances imports saw a 40 percent (USD 23.0 million) growth.

Import expenditure on electrical and electronic machinery and equipment registered a 43 percent growth (USD 19.0 million) during the first quarter.

Despite significant fisheries activities – from the country’s second largest economic sector – the relatively lower revenue receipts from the sector is an industry-wide concern, especially among the fishers who stand to receive the most significant brunt from adverse impacts.

Fishers’ woes do not end here as many face plight of long overdue payments owed to them by processed-fish manufacturers and canneries operating in the Maldives.


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GoAir ordered to pay USD 3.6 million to MIRA





The Civil Court has ordered India’s GoAir to pay $3.6 million to the Maldives Inland Revenue Authority (MIRA) within a month.

The verdict was passed on June 03rd.

MIRA, in its lawsuit against GoAir, sought to claim USD 3,580,588 in outstanding airport service charge, departure tax, and airport development fee in accordance to the Air Taxes and Fees Act.

The Civil Court in its order, demanded the now bankrupt carrier to settle the amount within one month from the date of the verdict.

As per the Civil Court order, GoAir is liable to pay outstanding departure tax from October 28, 2018 up to its last operational date, and airport development fee from April 2022 to March 2023.

According to the Air Taxes and Fees Act, and its supporting regulations the following charges are levied as departure tax;

$30 per foreign passenger in economy class, $12 per local passenger

$60 per passenger in business class

$90 per passenger in first class

$120 per passenger in private jets

Airport development fee:

$25 per foreign passenger in economy class, $12 per local passenger

$60 per passenger in business class

$90 per passenger in first class

$120 per passenger in private jets

Besides failing to appear in court for trial despite chargesheet and multiple summoning issued to GoAir’s local address, the carrier did not file any defence motion as well. The Civil Court issued the order in absentia of the airline.

GoAir operated scheduled flights to Maldives before the Covid-19 pandemic in 2020, and resumed operations later the same year before it announced a cease of operations in March 2023.


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