Deal to be signed when King Salman visits Putin in October

27/09/2017 09:26 AST

Saudi Arabian Oil Co., the world’s biggest oil exporter, is in talks with Sibur Holding PJSC, Russia’s largest petrochemical producer, about forming a joint venture to make synthetic rubber in the desert kingdom, according to two people with knowledge of the discussions.

Saudi Aramco, as the state-owned company is known, and Sibur are expected to sign a memorandum of understanding for the project next month when Saudi King Salman Bin Abdulaziz visits Russia, said the people, who asked not to be identified because the talks are private. Talks are at an early stage, they said.

Aramco didn’t immediately respond to requests for comment, while Sibur’s press service declined to comment, referring to comments that the company’s Chairman Dmitry Konov made in June about general cooperation talks between the two entities.

The venture would be Saudi Aramco’s first project with a Russian company that didn’t involve energy exploration or production. It conforms with Aramco’s strategy of boosting investments in refining and petrochemicals to reduce its reliance on crude sales. Aramco began earlier this year to fully operate Sadara Chemical Co., a $20 billion venture with Dow Chemical Co., in Jubail, Saudi Arabia. In 2015, Aramco invested in a venture with Germany’s Lanxess AG that makes elastomers, which are used to make golf balls bouncier and chewing gum softer.



Royal Visit

King Salman is scheduled to visit Russia on Oct. 4-7 and meet President Vladimir Putin, Prime news service reported last week, citing an unidentified official in Moscow. Saudi Arabia and Russia were instrumental in an agreement that the Organization of Petroleum Exporting Countries and other major suppliers reached in December to cut output to help drain a global oversupply.

Sibur has been expanding in other emerging markets since 2011, when the company reached an agreement with China Petroleum & Chemical Corp., also known as Sinopec, to set up two rubber joint ventures. Ties with China strengthened as Sinopec and Silk Road Fund bought 10 percent each in the Russian company amid the Kremlin’s energy pivot toward Asia, triggered by U.S. energy sanctions. While Sibur is not on the international sanctions list, its co-owner, Russian billionaire Gennady Timchenko, became a sanctions target in 2014 over his close ties to Putin.

Saudi Aramco’s other local venture with a Russian partner, called Luksar, was owned equally by Aramco and Lukoil PJSC and focused on searching for and developing natural gas in the Saudi Rub’ al-Khali desert, also known as the Empty Quarter.


Bloomberg

Aramco set to become full owner of Arlanxeo

13/08/2018

Saudi Aramco, a world leading integrated energy and chemicals company, and leading specialty chemicals company, Lanxess, announced in a press release issued last Aug. 8 that Saudi Aramco proposed acq

Saudi Gazette

Aramco, Air Products, Acwa to form $8bn JV

13/08/2018

Saudi Aramco, Air Products, and Acwa Power today announced the signing of a term sheet to form a gasification/power joint venture (JV) located at Jazan Economic City (JEC) in Saudi Arabia.

Trade Arabia

Saudi Aramco appoints senior VP of Finance

12/08/2018

Saudi Aramco, a global petroleum and natural gas company, has appointed Khalid H Al-Dabbagh as senior vice president of Finance, Strategy & Development, effective September 1.

Al-Dabbagh h

Trade Arabia

Ticker Price Volume
DEYAAR 0.40 4,144,175
Ticker Price Change
FOOD 0.00 0.00 (0.00%)
Bank Nizwa participates in Malaysia industry event

20/08/2019

Bank Nizwa, represented by two of its Board Members, Sami Al Dhugishi and Ishaq Al Maouli along with Chief Executive Officer, Khalid Al Kayed, participated in the 2nd Islamic Financial Services Board

Times of Oman

Emirates NBD stands chance to renegotiate Denizbank acquisition

14/08/2018

The sharp decline of the Turkish lira in recent weeks has triggered speculation in banking circles that Emirates NBD stands a chance to renegotiate its deal to acquire Denizbank as the valuation has

Gulf News

Eshraq reports best half-year since 2014

14/08/2018

Abu Dhabi-listed Eshraq Properties reported a first-half net profit of Dh14.8 million, compared to a loss of Dh0.32 million in the first half of 2017. The property firm said in a press statement that

Gulf News

Damac and RHG to launch Radisson Hotel

14/08/2018

Damac Properties has signed a landmark agreement with Radisson Hotel Group (RHG) to develop and launch the ‘Radisson Hotel, Dubai Damac Hills’, its first, newly launched Radisson-branded property wor

The Gulf Today

Adnoc Distribution net profit up 18pc in H1

14/08/2018

Abu Dhabi National Oil Company for Distribution (Adnoc Distribution) has reported that net profit for the six months ended June 30, 2018, increased by 18 per cent to Dh1.124 billion ($306 million) co

Trade Arabia