Aramco signs one SPA, nine MoUs with Russian companies at the Saudi-Russian CEO Forum during state visit of President Putin

Aramco signs one SPA, nine MoUs with Russian companies at the Saudi-Russian CEO Forum during state visit of President Putin
Published: 15 October 2019 - 3 a.m.
By: Martin Menachery
Saudi Aramco president and CEO Amin H Nasser attended the Saudi-Russian CEO Forum hosted in Riyadh as part of the state visit of the Russian President Vladimir Putin. At the Forum, Nasser noted the growing importance of Saudi Aramco’s evolving strategic relationship with Russian companies.

After the CEO Forum, Saudi Arabia’s King Salman Bin Abdulaziz Al Saud and Russia's President Vladimir Putin, alongside HRH the Crown Prince Mohammed bin Salman bin Abdulaziz, oversaw the signing of a confirmation agreement between Saudi Aramco, the Public Investment Fund of Saudi Arabia (PIF), the Russian Direct Investment Fund (RDIF), and Rusnano to enter into a Share Purchase Agreement (SPA) to acquire Rusnano’s 30.76% share in Novomet, a leading Russian service provider and manufacturer of high-tech electrical submersible pumps. The deal is expected to close early next year, subject to regulatory approvals and closing conditions.

Nasser said: “Today‘s agreement is expected to enable future investments in both Saudi Arabia and Russia that come under the framework of the Saudi-Russian Energy Co-investment Platform through Saudi Aramco, PIF and RDIF, targeting to promote investments in the energy sector in both Saudi Arabia and Russia. We look forward to expanding our mutual interests in the energy sector through this important co-investment platform with Russian companies.”

Saudi Aramco also entered into nine Memorandums of Understanding (MoUs) with major Russian companies, which were signed with the following Russian companies:

Gazprom Neft: An MoU between Saudi Aramco and Gazprom Neft. The agreement aims to exchange technical knowledge for oil applications and identify mutual technical studies of interest to both companies.

Angara Service: An MoU between Saudi Aramco and Angara Service for special chemicals and cleaning services with existing service providers to Saudi Aramco’s oil refineries and production sites.

Chelpipe: An MoU between Saudi Aramco and Chelpipe to localise production of ball valves in Saudi Arabia through a joint venture with a local partner.

Galen: An MoU between Saudi Aramco and Galen to localise fiberglass rebar.

Integra: An MoU between Saudi Aramco and Integra for a manufacturing facility for downhole drilling motors, drilling tools and bottom-hole assembly (BHA) components.

NKT: An MoU between Saudi Aramco and NKT for submersible cable lines protectors.

Technovek: An MoU between Saudi Aramco and Technovek for equipment and parts for wellhead equipment.

PAO ‘TMK’: An MoU between Saudi Aramco and PAO ‘TMK’ for Line Pipe and OCTG components such as drilling, casing and tubing material.

Intratool: An MoU between Saudi Aramco and Intratool to localise hot tapping, line stopping split tees, and repair features.

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