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

Saudi Aramco,Bapco face growing demand for energy in Bahrain

11/10/2018

Saudi Aramco and Bahrain Petroleum Company (Bapco) announced on Tuesday the successful operation of the AB-4 crude oil pipeline as part of a new phase of the Aramco-Bahrain crude oil pipeline strateg

Arab News

Aramco IPO delay not to impact Saudi equities

10/10/2018

The delay in listing of the Aramco on the bourses, which was expected to get gush of liquidity in Saudi and regional markets, would not have an impact on local bourses, according to Naveed Aurakzai,

Gulf News

Saudi Aramco, Total plan $5bn petchem complex in Jubail

09/10/2018

Saudi Aramco, a leading global energy company, and French oil and gas major Total have signed a joint development agreement for the front-end engineering and design (FEED) of a giant petrochemical co

Trade Arabia

Ticker Price Volume
QNBK 177.01 129,197
APPC 47.00 985,520
SABIC 118.20 7,617,975
ALMARAI 44.90 1,238,045
SAICO 10.82 126,222
AXA 18.72 276,220
KINGDOM 8.03 174,277
Ticker Price Change
FOOD 0.00 0.00 (0.00%)
Etisalat to lift restrictions on voting rights of foreigners

15/10/2018

Etisalat said on Sunday that its board has approved to lift the restrictions on voting rights of foreign shareholders on par with UAE nationals.

The board authorised the management to take

Gulf News

Doha Bank recognised for its IT service best practices

15/10/2018

Doha Bank has achieved continuous compliance to the ISO20000 standard. The outcome of the Audit determines an organisation’s commitment towards complying with the Industry standards. By passing the S

The Peninsula

Ground-breaking Ooredoo Fibre technology to be launched in Lusail

15/10/2018

Ooredoo announced that it will roll out first-in-class Fibre Home devices to Lusail, to ensure Qatar’s first smart city is fully connected, QNA reported. Furthermore, Ooredoo is partnering with NETG

The Peninsula

Bank Muscat Q3 net profit rises by 3.4 per cent to RO 134.74m

15/10/2018

Bank Muscat, the flagship financial institution in the Sultanate, announced its preliminary results for the nine months ended September 30, 2018. The bank posted a net profit of RO 134.74 million for

Oman Daily Observer

Adnoc Sour Gas sulphur pipeline work on track

15/10/2018

Adnoc Sour Gas, a subsidiary of the Abu Dhabi National Oil Company (Adnoc), has confirmed work is on track to construct a new sulphur pipeline, to carry molten sulphur produced by its Shah field sour

Trade Arabia