Saudi Aramco to increase Russian ties

Aramco, Rosneft together produce 16 per cent of the world's oil

04/10/2017 11:53 AST

Saudi Arabian Oil Company, known as Saudi Aramco and Opec's biggest crude producer, will sign a number of memorandums of understanding with various Russian companies to increase collaboration between the two energy giants, Aramco said on Tuesday.

"There are significant opportunities...for collaboration between Saudi Aramco and leading Russian companies," said Amin Nasser, chief executive of Aramco.

He said that the company's priority is in strengthening ties spanning oil and gas services, petrochemicals, renewables and advanced technologies sectors. Mr Amin said these were "all promising areas for bilateral cooperation."

Aramco is meeting with Russian officials in Moscow this week during state visit by King Salman bin Abdulaziz Al Saud. Combined, Saudi Arabia and Russia produce about a quarter of the world's oil.

There will be an energy-specific forum, headed by Russia's oil minister Alexander Novak. Aramco plans to present its plans under the Saudi Vision 2030 and localisation programme, In-Kingdom Total Value Add which, it said, can potentially attract Russian companies to help with skills development and technological know-how.

Aramco is in talks with Sibur Holding PJSC, Russia's largest petrochemical producer, to form a joint venture that produces synthetic rubber in the kingdom, the first project Aramco has with a Russian company that doesn't involve energy exploration or production, Bloomberg reported last month, citing unidentified sources.

The two state-owned energy powerhouses of Aramco and Rosneft together produce 16 per cent of the world's crude oil which averages around 97 million barrels per day, according to figures from the International Energy Agency. Aramco produces 10.5 million bpd with Russia's largest producer, Rosneft, adding 4.6 million bpd to the mix.

The National