Saudi Aramco inks $10 bln MoUs with Technip, Honeywell

State-run Saudi Aramco's US subsidiary Motiva Enterprises signed on Saturday two memorandums of understanding (MOUs) with Technip FMC and Honeywell UOP at a total value between $8 billion and $10 billion.

The preliminary agreements were concluded during the visit of Saudi Crown Prince Mohammed bin Salman to the US, the major oil producer said in a statement.

The first MoU helps Motiva evaluate using TechnipFMC plc’s world scale mixed-feed ethylene production technologies in the US.

The second deal will enable Saudi Aramco's wholly-owned downstream oil and gas subsidiary to test Honeywell's technology to extract aromatics for producing benzene and paraxylene, so as to set up a petrochemical complex on the US Gulf coast.

"The MOUs are a first step in Motiva’s expansion into petrochemicals. Final investment decisions on these projects are not expected to be made until 2019 and are dependent on strong economics, competitive incentives, and regulatory support, Saudi Aramco added.