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 inaugurates $1.6bn energy and industrial park

12/12/2018

Saudi Aramco, the world’s biggest crude producing company, inaugurated an industrial park on Monday in Saudi Arabia's oil-rich eastern province that will cost $1.6 billion in its first phase, as the

The National

Saudi Aramco to set up sustainable global energy hub

09/12/2018

State oil giant Saudi Aramco has launched a mega project, Spark, which has been designed to position the kingdom as a global energy hub that furnishes a dynamic, enabling environment for foreign and

Trade Arabia

Baker Hughes wins Saudi Aramco well services contract

05/12/2018

Leading oilfield services provider Baker Hughes, a GE company, said it has been awarded a major stimulation and well-testing contract by Saudi Aramco to be a partner in optimising production from new

Trade Arabia

Ticker Price Volume
QNBK 196.50 275,884
APPC 53.70 93,203
JARIR 153.20 61,878
BKDB 0.17 301,395
OASIS 40.05 106,636
STC 86.60 258,561
KINGDOM 7.78 101,205
Ticker Price Change
FOOD 0.00 0.00 (0.00%)
Etisalat to provide home insurance solution

13/12/2018

Etisalat today announced a new insurance offering - ‘Home Protection Plan’ for all eLife home customers to provide a hassle-free option, making sure all household goods are insured for just Dh10 per

Trade Arabia

Gulf Bank’s Al-Ali becomes first Kuwaiti AGM to lecture at IBS

13/12/2018

Gulf Bank is proud to announce its participation in a training workshop organized by the Kuwait Institute of Banking Studies, inviting Gulf Bank’s Bader Al-Ali, Assistant General Manager – Operations

Arab Times

ACWA Power, ECOHZ collaborate to empower the local communities

12/12/2018

ACWA Power, a global leader in water desalination and power generation, recently collaborated with key player in energy sector, ECOHZ, that offers global renewable energy solutions to businesses, org

Saudi Gazette

Aramco inaugurates $1.6bn energy and industrial park

12/12/2018

Saudi Aramco, the world’s biggest crude producing company, inaugurated an industrial park on Monday in Saudi Arabia's oil-rich eastern province that will cost $1.6 billion in its first phase, as the

The National

Adnoc announces crude oil reductions for January

12/12/2018

Abu Dhabi National Oil Company (Adnoc) would be reducing crude oil allocations for January in line with the recent Opec decision to cut production to rebalance oil markets.

In a tweet, Suh

Gulf News