Saudi Aramco inks five deals with Russian power companies

State-owned Saudi Aramco has signed five cooperation agreements in Russian as part of Saudi King Salman’s official visit to Moscow, the oil giant said in a statement.

Aramco signed a memorandum of understanding (MoU) with the Saudi Public Investment Fund (PIF) and the Russian Fund for Direct Investment to develop new energy projects in the oilfield services and manufacturing sector, the Ras Al Khair marine industry complex, as well as Aramco’s Industrial Energy City.

It also signed an agrement with Russia’s Gazprom to develop a business portfolio in international upstream gas, allowing the introduction of new vendors and suppliers to the Kingdom’s market.

“Among the elements of the MOU are LNG trade, LNG value chain and exploration/development as well as product storing,” the statement said.

Another deal was signed with LITASCO, Russian oil company Lukoil's trading arm, to set up an oil trading operation.

The collaboration will give Aramco and Saudi Arabia access to Mediterranean refineries where Russian companies have expanded. The proximity of the Mediterranean Sea to the Red Sea provides an important strategic supply point to the Kingdom.

Aramco signed a fourth agreement with Russian state-owned oil company Gazprom Neft, to collaborate on drilling technologies, research and development (R&D), and training programs.

It also signed an agreement with petrochemical company Sibur and the Russian Direct Investment Fund (RDIF) to assess the potential for joint investments in petrochemical projects, including marketing petrochemical products in both countries.

Speaking at the Saudi-Russian Business Investment Forum, Aramco President and CEO Amin Nasser outlined a number of areas for potential collaboration with Russian companies: industrial localization; international gas; downstream petrochemicals; technology, research and innovation; trading; and climate change and carbon management.

“We have already established eight research centers around the world that complement our main research facilities in Saudi Arabia. Considering Russia’s considerable strengths in science and technology, as well as highly talented researchers, scientists and engineers, we are exploring collaboration in R&D field,” he said.

Trading will also be a key enabler to Aramco’s partnership with Russian entities involving opportunities in refined products swaps, trading logistics, shipping and storage facilities, and new market venturing, Nasser added.