Gulf states commit to supply France with 10% of its diesel needs

The Gulf has committed to providing France with 295k tons of diesel a month to France, covering a little over 10% of French consumption. The supply agreements, which French President Emmanuel Macron secured during his tour of the region, will see the UAE and Bahrain each supplying 100k tons a month, while Saudi Arabia is guaranteeing 95k tons in each of October and November, the National reports. Kuwait, meanwhile, has committed diesel and kerosene for the French overseas territories of Mayotte and Reunion. Macron closed his tour in Qatar, but no energy agreements were announced.

IN CONTEXT- Macron is facing unrest back at home, where riots broke out over the weekend after weeks of protests over the country’s education system and the cost of living, including high energy prices. The French president’s visit to the region comes a few weeks after he pledged troops, radar systems, and defense equipment to help Saudi Arabia protect Yanbu in its ongoing war with the Houthis.

The region is selling into a market that has repriced sharply. European diesel is near USD 200 / bbl against roughly USD 80 in January, with the war in Iran and Ukrainian strikes on Russian refineries driving up fuel costs. Gulf governments are also in talks with Paris about lowering marine ins. costs so larger volumes can move through the Strait of Hormuz.

Abu Dhabi used the visit to deepen its industrial position in Paris. The UAE and France signed a strategic defense partnership, according to Wam, building on state defense firm Edge’s decision to set up its European headquarters in Paris, following a separate defense cooperation agreement inked between the UAE and France earlier this year. As part of the expansion, a facility in Bordeaux is set to be its engineering and manufacturing core in France. The state defense firm has also been looking to Italy and Spain, as it looks to establish its European footprint.

On the technology side, G42, Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), and G42 subsidiary Analog each signed MoUs yesterday with Paris-based AMI Labs during, the Abu Dhabi Media Office says. Adnoc Gas, Adnoc Refining, Schneider Electric, and Technip Energies signed the energy agreements alongside them.

Kuwait also signed a handful of agreements with France on Monday, with aviation carrying most of the commercial weight, as the Kuwait Investment Authority and the Kuwait Foundation for the Advancement of Sciences each signed agreements with Airbus. The rest of the eight agreements tracking the same sectors Paris worked in Abu Dhabi: A defense cooperation letter of intent signed by Defense Minister Sheikh Abdullah Ali Abdullah Al Salem Al Sabah and French Armed Forces Minister Catherine Vautrin, an exploratory data and AI agreement with France’s Bertin IT, an investment promotion declaration through KDIPA, a cancer care arrangement with the Gustave Roussy institute, and an academic and scientific cooperation declaration.

MEANWHILE- As Macron tours the region, Oman’s Sultan Haitham bin Tarik is in the UK to work the same circuit. The three-day visit to London — the first by an Omani ruler in 44 years — will see the sultan at Downing Street today for talks with Prime Minister Andy Burnham on investment, security, defense and education, Arab News reports. An agreement to raise two-way investment under the existing UK-Oman Sovereign Investment Partnership is expected to be signed at the meeting, covering renewable energy, technology, critical minerals, space, healthcare and financial services.